Parliament Question: Package for Setting up Food Processing Units in Amritsar

GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES LOK SABHA UNSTARRED QUESTION NO. 1871 ANSWERED ON 11TH DECEMBER, 2025 PACKAGE FOR SETTING UP FOOD PROCESSING UNITS IN AMRITSAR

1871. SHRI GURJEET SINGH AUJLA:

Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:

(a) whether the Government is aware that people living in the border villages of Amritsar rely almost entirely on agriculture with limited income sources and that the younger generation is losing interest in farming due to lack of industrial opportunities, if so, the details thereof;

(b) whether the Government proposes to provide a special grant or package for setting up food processing units, cold chains and value-addition infrastructure in the border belt of Amritsar to boost agro-industrial employment, if so, the details thereof;

(c) the manner in which the Government plans to integrate Amritsar’s international airport and cargo terminal to support the export of processed goods from this region; and

(d) whether the Government would prioritize Amritsar under Central schemes such as the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme, Mega Food Parks, or introduce a border-specific food export cluster to boost the rural economy and if so, the details thereof? ANSWER THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SHRI RAVNEET SINGH)

(a) & (b): In order to boost and ensure overall development of food processing sector including agro based industries, 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). Further, a Centrally sponsored PM Formalization of Micro Food Processing Enterprises (PMFME) scheme is also being implemented by MoFPI. All these three schemes are implemented across the country including Amritsar district of Punjab and thereby creating off-farm employment opportunities & increasing the income of the farmers in Food Processing Sector.

Under PMKSY, MoFPI has approved three food processing projects with total project cost of Rs 51.63 crores and approved grant-in-aid of Rs 12.17 crores in Amritsar district of Punjab.

Under PMFME Scheme, MoFPI has sanctioned 42 proposals with a total subsidy of Rs

2.74 crores in Amritsar district of Punjab.(c): As informed by Ministry of Civil Aviation, AAI Cargo Logistics and Allied Services Company Limited (AAICLAS) has established dedicated International and Domestic Air Cargo facilities at Amritsar Airport. The Domestic Air Cargo facility has an annual handling capacity of 1100 MT and the International Air Cargo facility has an annual handling capacity of 32,400 MT. AAICLAS has also received RA3 Security Certificate for Amritsar Airport.

(RA3 security certification is required for direct export to UK and EU countries.) AAICLAS has constructed new domestic air cargo terminal at Amritsar airport in an area of 1224 SQm with an annual handling capacity of more than 40,000 MT. Amritsar airport has well equipped cold storage facility which can be utilized by local exporters for the export of Agri produce and pharma.

(d): As mentioned earlier, MoFPI is implementing PMFME scheme for providing financial, technical and business support for upgradation/ setting up of micro food processing enterprises including Amritsar district of Punjab. Further, the Mega Food Parks Scheme, has been discontinued with effect from 01.04.2021.

The schemes implemented by MoFPI aim towards creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet which includes storage, transportation, etc., thereby help in providing better returns to farmers and creating huge employment opportunities especially in the rural areas, increasing the processing level, enhancing the export of the processed foods, which boosts rural economy and contribute in inclusive growth.

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