Parliament Question: Impact of food processing on farmers' incomes

GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES RAJYA SABHA UNSTARRED QUESTION NO. 3273 ANSWERED ON 20TH MARCH, 2026 IMPACT OF FOOD PROCESSING ON FARMERS' INCOMES 3273. SHRI RAGHAV CHADHA: Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state: (a) whether Government has conducted any study to assess the impact of food processing on farmers' incomes, if so, the details thereof; (b) details of the value chain clusters developed by Government in the last five years, district-wise; (c) whether any mechanism exists to ensure better price realisation for farmers, if so, the details thereof; (d) whether there has been any convergence with other agricultural and rural schemes, if so, the details thereof; and (e) the measurable increase in farmer income attributable to food processing interventions? ANSWER THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SHRI RAVNEET SINGH) (a): In order to ensure overall development of food processing sector, Ministry of Food Processing Industries (MoFPI) has been incentivizing setting up/expansion of related infrastructure through its two Central Sector Schemes namely Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) and Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) and a Centrally sponsored PM Formalization of Micro Food Processing Enterprises (PMFME) scheme across the country. The evaluation studies conducted for the relevant component schemes of PMKSY have concluded substantial benefit to the farmers from assisted projects. The evaluation study of Integrated Cold Chain and Value Addition Infrastructure Scheme under PMKSY has estimated that captive projects under the scheme have resulted in increase in farm-gate prices by 12.38 % and each project is estimated to benefit more than 9500 farmers. The evaluation study of Scheme for Creation of Infrastructure for Agro Processing Clusters under PMKSY has estimated to benefit 2.5 lakh farmers and 90,000 direct/indirect employment on operationalization of approved projects. The evaluation study of Creation / Expansion of Food Processing & Preservation Capacities under PMKSY estimated to benefit 1.87 lakh farmers and 2,23,919 direct/indirect employment on operationalization of approved projects. The evaluation study of PMFME Scheme has reported that scheme has been able to support entrepreneurship, value addition, formalization, reduce wastage, increase investment and employment in food processing sector and has achieved better livelihood and income for the micro food entrepreneurs.(b): The details of Agro-processing clusters approved under component scheme of PMKSY during last 5 years, since 2020-21 are at Annexure. (c) to (e): Schemes of MoFPI are, inter alia, intended to increase the level of processing and decrease post-harvest losses, develop value-added products and thereby realize better prices for raw materials and thus increased income for the farmers. Convergence of MoFPI schemes with agricultural and rural schemes is permissible and carried out as per the guidelines of the respective schemes. Under PMFME Scheme, Memorandum of Understanding (MoU) has been signed with Ministry of Agriculture and Farmers Welfare for convergence of the Agriculture Infrastructure Fund (AIF) Scheme, whereby PMFME beneficiaries who obtain credit linked subsidy, can also avail interest subvention under AIF. The seed capital component of PMFME scheme is implemented in collaboration with the Ministry of Rural Development (MoRD) and Ministry of Housing and Urban Affairs (MoHUA). *****ANNEXURE ANNEXURE REFERRED TO IN REPLY TO PART (b) OF THE RAJYA SABHA UNSTARRED QUESTION NO. 3273 FOR ANSWER ON 20TH MARCH, 2026 REGARDING “IMPACT OF FOOD PROCESSING ON FARMERS' INCOMES” Agro-processing clusters approved under corresponding component schemes of PMKSY since 2020-21 Approve d Grant- Date of Project Cost Sr.No Project Name District in-aid Approval (Rs. in Cr) (Rs. in Cr) Andhra Pradesh 1 Raman singhs Global Eluru 20.11.202 25.85 10.00 Food Park 3 2 MR Agrotech Industries Nellore 20.11.202 28.76 10.00 3 3 Sri Lalitha Enterprises East 28.02.202 48.66 10.00 Industries Private Godavari 4 Limited 4 Aalamandha Food Park Vizianagara 28.02.202 20.78 10.00 m 4 Assam 5 Surindera Agro Darrang 30.03.202 19.44 7.59 Processing Cluster 1 6 Salt Range Agri Morigaon 17.03.202 23.06 9.89 Solutions LLP 1 7 Nezone Foods Kamrup 10.11.202 25.54 10.00 2 8 Kay Dee Agro Industries Cachar 20.11.202 27.24 10.00 3 Chhattisgarh 9 K K Agro Trade Bemetara 28.02.202 68.86 10.00 Ventures Private Limited 4 Gujarat 10 Maharaja Dehydration Bhavnagar 08.06.202 16.11 4.31 Pvt. Ltd. 0 Himachal Pradesh 11 APG Foods Division Solan 28.02.202 22.66 10.00 Private Limited 4 Karnataka 12 Udupi Food Park Udupi 16.03.202 16.08 5.23 1 13 Sri Lakshmibalaji Agro Koppal 10.11.202 36.34 10.00 Park Private Ltd 2 Kerala 14 Synthite Industries Ernakulam 30.04.202 42.22 9.05 Private Limited 0 Madhya Pradesh 15 Prashun Foods Pvt Ltd Dhar 24.12.202 23.6 9.86 0 Maharashtra 16 Pravin Masalewale Satara 24.12.202 64.69 10.00 017 Baheti Krushi Samuha Washim 16.03.202 12.54 2.84 LLP 1 18 Chinteshwar Agro Beed, 17.11.202 22.50 8.27 Processing Pvt Ltd 1 19 M/s Varsha Agro Pune 10.11.202 40.67 10.00 2 20 Arya Food and Other Solapur 20.11.202 28.54 10.00 Products Processing Unit 3 21 Divyansh Agro And Bhandra 10.11.202 26.65 10.00 Food Park 2 22 Harrshiv Healthy Foods Nagpur 28.02.202 39.32 10.00 and More Private 4 Limited Odisha 23 Vijaya Nagar Biotech Nabarangpur 10.11.202 50.52 10.00 Private Limited 2 Rajasthan 24 Garuda Urban Remedies Jalore 10.11.202 38.65 10.00 Limited 2 25 Greenfields Agro Park Tonk 20.11.202 23.21 8.64 3 Tamil Nadu 26 Tiruvannamalai Market Tiruvannam 29.04.202 25.50 5.74 Committee alai 0 27 Salem Market Salem 29.04.202 25.25 5.97 Committee 0 28 Theni Market Theni 29.04.202 26.30 5.99 Committee 0 29 Dharmapuri Market Krishnagiri 29.04.202 26.82 5.89 Committee 0 30 Madurai Market Madurai 29.04.202 32.06 5.79 Committee 0 31 Dindigul Market Dindigul 29.04.202 29.01 6.73 Committee 0 32 Cuddalore Market Cuddalore 29.04.202 25.00 5.97 Committee 0 33 Delta Foods Pudukkottai, 08.06.202 24.31 7.47 0 34 Vamsi RS Industrial Erode 17.11.202 33.16 9.13 Zone 1 35 Integrated Service Point Thiruvallur 28.02.202 42.63 10.00 Private Limited 4 Telangana 36 Kakumanu Seeds Siddipet 29.04.202 39.8 7.43 0 37 Mahadevi Agro Mills Siddipet 10.11.202 44.48 10.00 Private Limited 2 38 Gayatri Agro Industrial Nalgonda 10.11.202 23.39 5.82 Power Limited 2 39 Rajendar Feeds LLP Siddipet 20.11.202 44.00 10.00 3 *****