**Executive Summary**
This report, answered on January 29, 2026, details the schemes implemented by the Ministry of Food Processing Industries (MoFPI) to promote the processing of perishable vegetables and fruits. It outlines financial assistance available under schemes like Pradhan Mantri Kisan Sampada Yojana (PMKSY) and Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME). The report specifies that while Ghaziabad has not been identified as a production cluster, various schemes are available for development of food processing in Uttar Pradesh.
**Key Points / Main Content**
* **Pradhan Mantri Kisan Sampada Yojana (PMKSY)**
* Implemented since 2017-18 across the country.
* Provides financial assistance for projects involving value chain development of specified fruit crops, vegetable crops, and shrimp.
* Assistance is 35% of project cost in General Areas, 50% in Difficult Areas and for SC/ST, FPOs, and SHGs.
* Uttar Pradesh has been identified as a production cluster for various fruits and vegetables.
* Ministry has assisted 3 projects for potato processing in Uttar Pradesh.
* No cold chain infrastructure project has been sanctioned in Sahibabad and Loni area of Ghaziabad in Uttar Pradesh under Cold Chain or Operation Greens scheme of PMKSY.
* **Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme**
* Centrally Sponsored scheme providing financial, technical, and business support for micro food processing enterprises.
* Under Credit Linked Subsidy component, loans for 4 Farmer Producer Organisations (FPOs) have been sanctioned till 31st December 2025 in Western Uttar Pradesh.
* Under Branding & Marketing component, support is primarily targeted at groups of FPOs, SHGs, cooperatives, or Special Purpose Vehicles (SPVs), with a grant of up to 50% of the eligible project cost.
* **Financial Assistance Under PMFME (Annexure)**
* Support to Individual / Group Category Micro Enterprises: Credit-linked capital subsidy @35% of the eligible project cost, maximum ceiling Rs.10 lakh per unit.
* Support to SHGs for seed capital: Seed capital @ Rs. 40,000/- per member of SHG engaged in food processing for working capital and purchase of small tools subject to maximum of Rs. 4 lakh per SHG Federation.
* Support for Common Infrastructure: Credit linked capital subsidy @35% of the eligible project cost subject to maximum of Rs. 3 crore to support FPOs, SHGs, Cooperatives and any Government agency for setting up of common infrastructure.
* Branding and Marketing Support: Grant upto 50% for Branding and Marketing to groups of FPOs/ SHGs/ Cooperatives or an SPV of micro food processing enterprises.
* Capacity Building: The scheme envisages training for Entrepreneurship Development Skilling (EDP) program modified to meet the requirement of food processing industry.
* **Specific Proposals**
* No proposal for Branding & Marketing has been received from the State of Uttar Pradesh.
* No proposal under consideration by the Ministry to set up a dedicated vegetable processing cluster near the Ghazipur/Sahibabad mandis.
**Impact Analysis**
**FPOs (Farmer Producer Organizations)**
*Impact:* Eligible for financial assistance under PMKSY and PMFME schemes for value chain development and upgrading micro food processing enterprises.
*Action Required:* Apply for schemes and proposals under PMKSY and PMFME by 31st December 2025.
**SHGs (Self-Help Groups)**
*Impact:* Eligible for financial assistance under PMKSY and PMFME schemes for value chain development and upgrading micro food processing enterprises.
*Action Required:* Apply for schemes and proposals under PMKSY and PMFME.
**Micro Food Processing Enterprises**
*Impact:* Eligible for financial, technical, and business support for upgradation under the PMFME scheme.
*Action Required:* Apply for assistance under the PMFME scheme.
**State Government of Uttar Pradesh**
*Impact:* Responsible for submitting proposals for Branding & Marketing component under the PMFME scheme to enable FPOs, SHGs, cooperatives, or SPVs of micro food processing enterprises to avail grants.
*Action Required:* Submit Branding & Marketing proposals to the Ministry.
Key Entities Referenced
Pradhan Mantri Kisan Sampada Yojana (PMKSY): A central sector umbrella scheme implemented by the Ministry of Food Processing Industries since 2017-18, aimed at developing food processing infrastructure.
Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme: A centrally sponsored scheme implemented by the Ministry of Food Processing Industries to provide financial, technical, and business support for upgrading micro food processing enterprises.
Ministry of Food Processing Industries (MoFPI): The central ministry responsible for promoting the growth of the food processing sector.
Uttar Pradesh: A state identified as a production cluster for various fruits and vegetables under the PMKSY scheme.
Farmer Producer Organizations (FPOs): Organizations of farmers that are eligible for assistance under the PMKSY and PMFME schemes for value addition, branding, and setting up of common infrastructure.
GOVERNMENT OF INDIA
MINISTRY OF FOOD PROCESSING INDUSTRIES
LOK SABHA
UNSTARRED QUESTION NO: 83
ANSWERED ON 29TH JANUARY, 2026
PROMOTION OF PROCESSING OF PERISHABLE VEGETABLES
AND FRUITS
83. SHRI ATUL GARG:
Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:
(a) the details of the schemes implemented to promote the processing of perishable
vegetables and fruits grown in the peri-urban areas of Ghaziabad for the NCR market;
(b) the status of the cold chain infrastructure available in the Sahibabad and Loni areas to
prevent post-harvest losses;
(c) the measures taken by the Government to encourage the setting up of micro-processing
units for tomato, cauliflower and green leafy vegetables in the said district;
(d) the details of the assistance provided to the Farmer Producer Organizations (FPOs) of
Western Uttar Pradesh for value addition and branding; and
(e) whether the Government proposes to set up a dedicated vegetable processing cluster near
the Ghazipur/Sahibabad mandis and if so, the details thereof?
ANSWER
THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES
(SHRI RAVNEET SINGH)
(a) & (b): Ministry of Food Processing Industries (MoFPI) has been implementing a central
sector umbrella scheme called “Pradhan Mantri Kisan Sampada Yojana (PMKSY)” since
2017-18 across the country. Under Operation Greens component of PMKSY scheme, the
Ministry is providing financial assistance at the rate of 35% of the eligible project cost for
projects in General Areas, and 50% for projects in Difficult Areas, as well as for projects
involving SC/ST, FPOs (Farmer Producer Organizations), and SHGs (Self-Help Groups) for
value chain development of 10 fruit crops, 11 vegetable crops and shrimp in the identified
production clusters. The production clusters for these crops are identified based on the
horticultural production data provided by Ministry of Agriculture and Farmers Welfare, in
consultation with the Horticulture Departments of the respective states. Uttar Pradesh has been
identified as production cluster for mango, banana, amla, guava, potato, beans, gourds, carrot,
cauliflower, okra, green peas & garlic. Under the scheme Ministry has assisted 3 projects for
potato processing in the State of Uttar Pradesh. Ghaziabad has not been identified as production
cluster for any fruit or vegetable crop under the Operation Greens scheme.
In this regard it may also be mentioned that Ministry of Food Processing Industries does
not set up any food processing industry on its own, but to encourage the growth of the food
processing sector, the Ministry is implementing various schemes for development of foodprocessing infrastructure and setting up of food processing units through various component
schemes of Pradhan Mantri Kisan Sampada Yojana (PMKSY). The proposals under the
schemes are invited through Expression of Interest (EOI). Proposals are scrutinised as per the
provisions of scheme guidelines and eligible applications sanctioned for financial assistance.
So far, the Ministry of Food Processing Industries has not sanctioned any cold chain
infrastructure project in Sahibabad and Loni area of Ghaziabad in Uttar Pradesh under Cold
Chain or Operation Greens scheme of PMKSY.
(c): Ministry of Food Processing Industries (MoFPI) is implementing a Centrally
Sponsored- "Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME)
Scheme" for providing financial, technical and business support for upgradation of micro food
processing enterprises across the country including Uttar Pradesh. The details of financial
assistance available for micro food processing enterprises including Farmer Producer
Organisations (FPOs) under the Scheme for all the products including tomato, cauliflower and
green leafy vegetables are at Annexure.
(d): Under Credit Linked Subsidy component of PMFME scheme, loans for 4 Farmer
Producer Organisations (FPOs) have been sanctioned till 31st December 2025 in Western Uttar
Pradesh. Further, under the Branding & Marketing component of the PMFME scheme, support
is primarily targeted at groups of FPOs, SHGs, cooperatives, or Special Purpose Vehicles
(SPVs) of micro food processing enterprises, with a grant of up to 50% of the eligible project
cost. However, no proposal for Branding & Marketing has been received from the State of
Uttar Pardesh.
(e): No such proposal under consideration by the Ministry.
*****ANNEXURE
ANNEXURE REFERRED TO IN PART (c) OF LOK SABHA UNSTARRED
QUESTION NO. 83 ANSWERED ON 29.01.2026 REGARDING ‘PROMOTION OF
PROCESSING OF PERISHABLE VEGETABLES AND FRUITS’
The details of financial assistance offered to the enterprises under Pradhan Mantri
Formalisation of Micro Food Processing Enterprises (PMFME) Scheme are as under:
(i) Support to Individual / Group Category Micro Enterprises: Credit-linked capital
subsidy @35% of the eligible project cost, maximum ceiling Rs.10 lakh per unit;
(ii) Support to SHGs for seed capital: Seed capital @ Rs. 40,000/- per member of SHG
engaged in food processing for working capital and purchase of small tools subject to
maximum of Rs. 4 lakh per SHG Federation.
(iii) Support for Common Infrastructure: Credit linked capital subsidy @35% of the
eligible project cost subject to maximum of Rs. 3 crore to support FPOs, SHGs,
Cooperatives and any Government agency for setting up of common infrastructure. The
common infrastructure will also be available for other units and public to utilize on hiring
basis for substantial part of the capacity.
(iv) Branding and Marketing Support: Grant upto 50% for Branding and Marketing to
groups of FPOs/ SHGs/ Cooperatives or an SPV of micro food processing enterprises.
(v) Capacity Building: The scheme envisages training for Entrepreneurship Development
Skilling (EDP) program modified to meet the requirement of food processing industry.
*****