This document summarizes the Indian government's initiatives, as of July 31, 2025, to promote entrepreneurship among Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes (OBC) within the food processing sector. The Ministry of Food Processing Industries (MoFPI) is implementing the Pradhan Mantri Kisan Sampada Yojana (PMKSY), the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), and the PM Formalization of Micro Food Processing Enterprises (PMFME) scheme. The PMFME scheme includes capacity-building components that offer entrepreneurship development and skill training to all entrepreneurs, including those from SC, ST, and OBC categories. While MoFPI has not conducted specific studies to assess the reach and benefits of these schemes for SC/ST/OBC entrepreneurs, 8.3% and 4.3% of allocated funds under PMKSY and PMFME, respectively, are earmarked for SC and ST categories. Furthermore, the PMKSY guidelines include preferential provisions for SC/ST applicants, such as reduced net worth, term loan, and equity requirements, as well as an enhanced grant level of 50% of eligible project cost (subject to maximum ceilings) and a reduced minimum project cost requirement of Rupees One Crore for specific schemes. The minister in charge is Shri Ravneet Singh.
Key Entities Referenced
Ministry of Food Processing Industries (MoFPI): The Indian government ministry responsible for the development of the food processing sector.
Pradhan Mantri Kisan SAMPADA Yojana (PMKSY): A Central Sector Scheme implemented by MoFPI to promote food processing in India.
Production Linked Incentive Scheme for Food Processing Industry (PLISFPI): A Central Sector Scheme implemented by MoFPI that provides incentives to food processing industries.
PM Formalization of Micro Food Processing Enterprises (PMFME): A Centrally sponsored scheme being implemented by MoFPI focused on formalizing micro food processing enterprises.
SCSTOBC: Refers to Scheduled Castes, Scheduled Tribes, and Other Backward Classes, categories of historically disadvantaged groups in India.
SHRI DHARMENDRA YADAV: Member of Parliament who asked the question related to promoting entrepreneurship amongst SCSTOBC categories.
SHRI RAVNEET SINGH: The Minister of State for Food Processing Industries who provided the answer to the parliamentary question.
Entrepreneurship Development Skilling (EDP): A component of the PMFME scheme, EDP aims to impart training and skilling to meet the requirements of food processing industry among all categories of Entrepreneur.
GOVERNMENT OF INDIA
MINISTRY OF FOOD PROCESSING INDUSTRIES
LOK SABHA
UNSTARRED QUESTION NO. †2018
ANSWERED ON 31ST JULY, 2025
PROMOTING ENTREPRENEURSHIP AMONGST SC/ST/OBC CATEGORIES
†2018. SHRI DHARMENDRA YADAV:
Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:
(a) the specific schemes and initiatives taken by the Government to promote
entrepreneurship and to provide financial assistance, impart training and capacity building
among the persons of the SC/ST/OBC categories in food processing sector;
(b) whether any impact assessment study has been carried out in respect of the Government
schemes in reaching out and benefitting SC/ST/OBC entrepreneurs in food processing sector;
and
(c) if so, the major outcome of the study as well as corrective measures being proposed in
this regard?
ANSWER
THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES
(SHRI RAVNEET SINGH)
(a) to (c) : Ministry of Food Processing Industries (MoFPI) is implementing 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
scheme namely PM Formalization of Micro Food Processing Enterprises (PMFME) scheme is
also being implemented by MoFPI.
Under Capacity building component of the PMFME scheme, training is imparted for
Entrepreneurship Development Skilling (EDP+) & product specific skilling to meet the
requirement of food processing industry among all categories of Entrepreneur including
SC/ST/OBC entrepreneurs.
MoFPI has not conducted any specific study in reaching out to and benefitting
SC/ST/OBC entrepreneurs in food processing sector. However, under PMKSY and PMFME,
8.3% and 4.3% of allocated fund is earmarked for SC and ST category respectively. Further,
the following preferential provisions have been made in component scheme guidelines of
PMKSY for SC/ST category:
i. Net Worth requirement reduced to amount equal to grant sought, in comparison to
1.5 times for proposals from general areas;
ii. Term Loan requirement reduced to 10% of eligible project cost, in comparison to
20% for proposals from general areas;
iii. Equity requirement reduced to 10% of eligible project cost, in comparison to 20%
for proposals from general areas;
iv. Quantum of grant at enhanced level of 50% of eligible project cost, in comparison
to 35% for proposals from general areas (Subject to the maximum ceiling under respective
sub-schemes);
v. Requirement of minimum project cost reduced to Rupees One Crore, in comparison
to rupees Three Crores in r/o Creation / Expansion of Food Processing & Preservation
Capacities Scheme projects [for other component schemes, no such criteria is fixed]
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