Parliament Question: Mega Food Parks

GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES LOK SABHA UNSTARRED QUESTION NO: 6359 ANSWERED ON 02ND APRIL, 2026 MEGA FOOD PARKS 6359. DR. ALOK KUMAR SUMAN: Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state: (a) the number of Mega Food Parks operational in the country; (b) the details of investment attracted by the food processing sector including under Mega Food Parks and other schemes; (c) the employment generated through Mega Food Parks and the food processing sector; (d) the incentives provided under the Production Linked Incentive Scheme for Food Processing Industry; and (e) the measures taken by the Government to reduce post-harvest losses? ANSWER THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SHRI RAVNEET SINGH) (a): The Ministry of Food Processing Industries is implementing Mega Food Park (MFP) Scheme, a component scheme under the Pradhan Mantri Kisan Sampada Yojana (PMKSY). Under MFP Scheme, 41 MFPs are approved out of which 25 MFPs are operational. (b) to (e): In order to promote and ensure overall development of Food Processing Industries and reduce post-harvest loses, Ministry has been incentivizing setting up/ expansion of related infrastructure, through its two Central Sector Schemes viz. 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. Ministry is implementing PMKSY since 2017-18 across the country. Under the component schemes of PMKSY namely (i) Integrated Cold Chain and Value Addition Infrastructure (Cold Chain scheme), (ii) Creation of Infrastructure for Agro Processing Clusters (APC scheme), (iii) Operation Greens (OG scheme)- Long term intervention, (iv) Creation and Expansion of Food Processing and Preservation Capacities (CEFPPC), (v) Mega Food Parks (MFP scheme- discontinued w.e.f. 01.04.2021) and (vi) Creation of Backward and Forward Linkages (CBFL scheme- discontinued w.e.f. 01.04.2021) financial support is provided in the form of grants-in- aid/ subsidy for setting up of food processing projects thereby creating both processing and preservation infrastructure facilities including cold chain infrastructure across the country. Financial assistance in the form of grants-in-aid/ subsidy is provided for setting up of food processing projects at the rate of 35% of the eligible project cost in case of projects from general areas and 50% in case of projects from difficult areas as well as projects for SC/ ST, FPOs andSHGs subject to a maximum of ₹5.00 crore in case of Creation and Expansion of Food Processing and Preservation Capacities (CEFPPC) scheme, ₹10.00 crore in case of Cold Chain scheme/ APC scheme as well as in case of standalone projects under OG scheme and ₹ 15.00 crore in case of integrated projects under OG scheme. Ministry does not set up such projects on its own, it invites proposals from interested entities/organizations through Expression of Interest (EoI) floated from time to time, in accordance with scheme guidelines. As on 31.01.2026, a total of 1,599 projects have been approved under the sub-component schemes of PMKSY, including the Mega Food Parks, attracting private investment of ₹21,667.38 crore in the food processing sector. Further, Mega Food Park projects have generated direct and indirect employment for 1,01,860 persons. Under PMFME, Ministry provides credit-linked capital subsidy of 35% of eligible project cost (up to ₹10 lakh) for setting up/ upgradation of micro food processing enterprises, along with seed capital support up to ₹40,000 per SHG member, as per eligibility. Further, for strengthening infrastructure, support is extended for Incubation Centre and creation of common infrastructure facilities, including processing units, warehouses, cold storages and other value chain infrastructure facilities. The scheme also provides grant-in-aid through its Branding and Marketing support to help groups with limited market access to boost the visibility and sales of their products. Under PMFME scheme, financial, technical and business support is also provided for setting up / upgradation of micro food processing enterprises. The scheme is operational from 2020-21 to 2025-26 with an outlay of Rs.10,000 Crore. The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) is approved for the period from Financial Year (FY) 2021-22 to FY 2026-27, with an approved outlay of ₹10,900 crore. The objectives of the Scheme are to support creation of global food manufacturing champions, promote Indian brands of food products, increase employment opportunities for off-farm jobs, ensure remunerative prices of farm produce and higher income to the farmers. Scheme Components and Incentive Structure under PLIS is placed at ANNEXURE. Under the Scheme, incentives are provided to selected applicants on achievement of eligible incremental sales of food products, in accordance with the provisions of the Scheme guidelines. The incentives under the PLISFPI are admissible where the entire chain of manufacturing processes, including primary processing, of the food products applied for coverage under the scheme takes place in India. The incentives are also provided to promote branding and marketing abroad by approved beneficiaries / applicants. *****ANNEXURE ANNEXURE REFERRED TO IN REPLY TO PART (b) TO (e) OF THE LOK SABHA UNSTARRED QUESTION NO. 6359 ANSWERED ON 02ND APRIL 2026 “MEGA FOOD PARKS” Scheme Components  Category-I = Relates to incentivizing manufacturing of four major food product segments viz. Ready to Cook/ Ready to Eat (RTC/ RTE) foods including Millets based products, Processed Fruits & Vegetables, Marine Products and Mozzarella Cheese.  Category-II = Relates to production of Innovative/ Organic products of SMEs including Free Range - Eggs, Poultry Meat, Egg Products in these four segments.  Category-III = Relates to support for branding and marketing abroad to incentivize emergence of strong Indian brands for in-store Branding, shelf space renting and marketing. The Approved implementation period for Branding & Marketing components is from 2022-23 to 2026-27.  In the backdrop of declaration of Year 2023 as “International Year of Millets”, the Ministry took the initiative to encourage the use of Millets in RTC/RTE products and incentivizing them under the PLI Scheme (PLISMBP) to increase usage of millets in food products and promote value addition and sales. INCENTIVE STRUCTURE UNDER PLIS Upper c ap Incentive Disburseme Rate of Incentives (%) Categ nt criteria (%) (% & A ory/ S Segm mount i egme ent n crore) nts 20 Min. CAGMax. CAG 2022-2 2023-2 2024-2 2025-2 2026-2 21- R R 3 4 5 6 7 22 Cat. 1 RTE/ Biscui 8% 5% 5% 5% 5% 4.5% 4% RTC ts Rs.334.4 10% 13% Non- 8 7.5 Biscui 7.5% 7.5% 7.5% 6.75% 6% % ts Spices 12% 8% 5% 5% 5% 5% 4.5% 4% F&V 10% Non-S Rs.286.5 10 15% 10% 10% 10% 9% 8% pices 6 % Marin 8% Mari e prod 5% 10% 6% 6% 6% 6% 5% 4% ne Rs.79.44 uctsValue added 10 10% 10% 10% 10% 10% produ % cts Mozz 25% arella 10 15% 16% Rs.70.75 10% 10% 8% 6% 4% Chees % e Large Rs.10 10% - Millet Entity 0 Prod - 10% 10% 10% 9% 8% MSM Rs.10.54 ucts 10% - E Orga nic Pr 10 10% - 10% 10% 10% 9% 8% oduct % s Cat. 2 Innov ative 10 10% - 10% 10% 10% 9% 8% Prod % ucts Only Indian brands co 50% of t Financial incentive 50% of expenditure o vered for selling food otal expe n B&M abroad subject to max. grant of 3 Cat. 3 B&M - products completely m nditure % of sales of food products or Rs. 50 Cr p anufactured in India. er year, whichever is less. *Minimum sale of all food products. **₹ 1 Cr sale of each product (Organic/ Innovative) *****