**Summary:**
In response to a question regarding the role of the Food Processing Industry (FPI) in the growth of the Micro, Small, and Medium Enterprises (MSME) sector, the Ministry of Food Processing Industries (MoFPI) stated its commitment to incentivizing the development of the FPI through various central sector schemes. These include 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. These schemes are demand-driven and implemented nationwide, including in the State of Bihar, offering subsidies and incentives to eligible applicants within the MSME sector.
Specifically, the PMFME scheme provides credit-linked capital subsidies of 35% of the eligible project cost, with a maximum ceiling of Rs. 10 lakhs per unit, to individual micro-enterprises. As of June 30, 2025, a total of 144,517 micro food processing enterprises have been approved for assistance under PMFME across the country.
The Capacity Building component of the PMFME scheme supports training initiatives for trainers, District Resource Persons, entrepreneurs, and other relevant groups, focusing on Entrepreneurship Development Skilling (EDP) and product-specific skilling to meet the needs of the food processing industry. As of June 30, 2025, 116,666 beneficiaries have been trained nationwide under this scheme.
Projects approved under PMKSY and PLISFPI also encompass MSME category enterprises. In the State of Bihar, MoFPI has approved 13 food processing projects under PMKSY, 7 proposals under PLISFPI, and 25,349 proposals under PMFME, as of June 30, 2025. These initiatives collectively aim to catalyze the growth of MSMEs within the food processing sector.
Key Entities Referenced
Ministry of Food Processing Industries: A ministry of the Government of India responsible for the development of the food processing sector.
Micro, Small and Medium Enterprises Sector: A sector comprising small businesses, often referred to as MSMEs, that are crucial for economic growth.
Bihar: A state in eastern India where specific initiatives are being implemented.
Pradhan Mantri Kisan SAMPADA Yojana: A Central Sector Scheme of the Ministry of Food Processing Industries incentivizing infrastructure development in the food processing sector.
Production Linked Incentive Scheme for Food Processing Industry: A Central Sector Scheme of the Ministry of Food Processing Industries incentivizing food processing.
PM Formalization of Micro Food Processing Enterprises: A Centrally sponsored scheme providing support for the upgradation and setting up of micro food processing enterprises.
SHRI RAVNEET SINGH: Minister of State for Food Processing Industries.
DR. MOHAMMAD JAWED: Member of Parliament who posed the question.
GOVERNMENT OF INDIA
MINISTRY OF FOOD PROCESSING INDUSTRIES
LOK SABHA
UNSTARRED QUESTION NO. 4711
ANSWERED ON 21ST AUGUST, 2025
ROLE OF FPI FOR THE GROWTH OF MSME SECTOR
4711. DR. MOHAMMAD JAWED:
Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:
(a) whether the Food Processing Industry (FPI) serves as a catalyst for the growth of the
Micro, Small and Medium Enterprises Sector and if so, the details thereof;
(b) the specific initiatives or steps taken/being taken by the Government to promote and
support the growth of this sector particularly in the State of Bihar; and
(c) whether the food processing industry provides technological support and training to
micro, small and medium enterprises units and if so, the details thereof?
ANSWER
THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES
(SHRI RAVNEET SINGH)
(a) to (c): In order to promote and ensure overall development of Food Processing 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). MoFPI is also implementing a Centrally sponsored scheme namely PM
Formalization of Micro Food Processing Enterprises (PMFME) scheme for providing
financial, technical and business support for upgradation/ setting up of micro food processing
enterprises.
All the three schemes are not region specific but demand driven and are implemented
across the country including Bihar. Ministry provides subsidy/incentives to the eligible
applicants under these schemes. Entrepreneurs in the Micro, Small & Medium Enterprises
(MSME) sector also be incentivized under these schemes of MoFPI.
Credit-linked capital subsidy @35% of the eligible project cost with maximum ceiling
of Rs.10 lakhs per unit is provided to individual micro enterprises under the PMFME scheme.
A total of 1,44,517 micro food processing enterprises have been approved for assistance under
PMFME across the country till 30.06.2025. Under the Capacity Building component of the
PMFME Scheme, MoFPI provides assistance for training of Trainers, District Resource
Persons, Entrepreneurs and various other groups for Entrepreneurship Development Skilling
(EDP+) & product specific skilling to meet the requirement of food processing industry. So
far, 1,16,666 beneficiaries have been trained across the country under the PMFME scheme till
30.06.2025.
The projects approved under PMKSY and PLISFPI also include MSME category.
Above initiatives act as a catalyst for the growth of MSMEs in the food processing sector.
In the State of Bihar, MoFPI has approved 13 food processing projects under PMKSY,
7 proposals under PLISFPI and 25349 proposals under PMFME till 30.06.2025.
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