**Executive Summary**
This document is the answer provided by the Minister of State for Food Processing Industries to Unstarred Question No. 3037 in Lok Sabha, answered on December 18, 2025, regarding the setting up of small-scale food processing units. It states that while specific data on the reduction of small-scale units due to multinational companies is unavailable, the Ministry incentivizes such units through various schemes, including PMKSY, PLISFPI, and PMFME. The document further mentions financial support via the Food Processing Fund (FPF) established in NABARD and the approval of micro food processing enterprises under the PMFME scheme.
**Key Points / Main Content**
* **Data Availability:** Specific data on the reduction of local small-scale food processing units after the entry of multinational food processing companies is not available in the Ministry of Food Processing Industries (MoFPI).
* **MoFPI's Role in Setting Up Industries:** MoFPI does not set up food processing industries directly.
* **Incentive Schemes:** MoFPI incentivizes the setting up of small-scale industries through:
* Pradhan Mantri Kisan SAMPADA Yojana (PMKSY).
* Production Linked Incentive Scheme for Food Processing Industry (PLISFPI).
* Centrally sponsored PM Formalization of Micro Food Processing Enterprises (PMFME).
* **Scheme Implementation:** These schemes are demand-driven and implemented across the country, including Uttar Pradesh. Details of sanctioned projects are provided in the Annexure.
* **Food Processing Fund (FPF):** The Government of India established the FPF in NABARD with a corpus of Rs.2000 crore in 2014-15 to provide affordable credit for establishing food processing industries in designated food parks.
* **Financial Support:** The Ministry extends financial support to prospective entrepreneurs for setting up different kinds of food processing industries.
* **PMFME Scheme in Ambedkar Nagar:** Under the PMFME Scheme, 551 micro food processing enterprises have been approved with a credit-linked subsidy of Rs. 45.49 crores for assistance in the Ambedkar Nagar district of Uttar Pradesh until 31.10.2025.
**Impact Analysis**
**Food Processing Units and Entrepreneurs**
* **Impact:** Receives incentives and financial support through various MoFPI schemes (PMKSY, PLISFPI, PMFME) and the Food Processing Fund (FPF).
* **Action Required:** Should follow scheme guidelines.
**NABARD**
* **Impact:** Managing the Food Processing Fund (FPF).
* **Action Required:** Continue to provide affordable credit for establishing food processing industries in designated food parks.
**Farmers of Ambedkar Nagar district**
* **Impact:** Potential beneficiaries of the PMFME scheme and other initiatives aimed at supporting small-scale food processing units.
* **Action Required:** Apply for support under the PMFME scheme and other relevant programs.
Key Entities Referenced
Ministry of Food Processing Industries (MoFPI): The primary ministry responsible for policies related to food processing industries.
PM Formalization of Micro Food Processing Enterprises (PMFME): A centrally sponsored scheme for formalizing micro food processing enterprises.
Pradhan Mantri Kisan SAMPADA Yojana (PMKSY): A central sector scheme incentivizing food processing industries, including small-scale ones.
Production Linked Incentive Scheme for Food Processing Industry (PLISFPI): A central sector scheme incentivizing food processing industries.
Uttar Pradesh: A state where the impact of the schemes is being evaluated.
GOVERNMENT OF INDIA
MINISTRY OF FOOD PROCESSING INDUSTRIES
LOK SABHA
UNSTARRED QUESTION NO. 3037
ANSWERED ON 18TH DECEMBER, 2025
SETTING UP OF SMALL-SCALE FOOD PROCESSING UNITS
3037. SHRI LALJI VERMA:
Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:
(a) whether the number of local small-scale food processing units in the country have
reduced after the entry of multinational food processing companies;
(b) if so, the details thereof;
(c) whether the Government proposes to set up small-scale food processing units across
the country;
(d) if so, the number of small-scale food processing units set up/registered since the year
2019, State-wise;
(e) whether the Government proposes to provide loans for setting up of small-scale food
processing units; and
(f) if so, the number of loan applications received from farmers of Ambedkar Nagar district
of Uttar Pradesh for setting up small food processing units since the implementation of
the said scheme along with the number of applications approved out of those?
ANSWER
THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES
(SHRI RAVNEET SINGH)
(a) to (f): Specific data regarding reduction of number of local small-scale food processing
units after the entry of multinational food processing companies is not available in the Ministry
of Food Processing Industries (MoFPI).
MoFPI does not setup any food processing industry on its own. However, it incentivizes
setting up of such industries including small scale through its two Central Sector Scheme viz.
Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), Production Linked Incentive Scheme
for Food Processing Industry (PLISFPI) and a Centrally sponsored PM Formalization of Micro
Food Processing Enterprises (PMFME). These schemes are not region or state specific but
demand driven and being implemented across the country including Uttar Pradesh. The details
of food processing projects sanctioned by MoFPI under the said three scheme across the
country is given at Annexure.
Further, with a view to promote food processing industry in the organised sector,
Government of India instituted the Food Processing Fund (FPF) with a corpus of Rs.2000 crore
during 2014-15 in NABARD for providing affordable credit for establishment of food
processing industries in designated food parks notified by MoFPI from time to time.
Ministry extends financial support to prospective entrepreneurs for setting up of
different kinds of food processing industries, as per respective scheme guidelines including
Ambedkar Nagar district of Uttar Pradesh. Under PMFME Scheme, 551 micro food processing
enterprises have been approved with credit linked subsidy of Rs 45.49 crores for assistance in
the Ambedkar Nagar district of Uttar Pradesh till 31.10.2025.
*****ANNEXURE
ANNEXURE REFERRED TO IN REPLY TO PART (a) TO (f) OF THE LOK SABHA
UNSTARRED QUESTION NO. †3037 FOR ANSWER ON 18TH DECEMBER, 2025
REGARDING “SETTING UP OF SMALL-SCALE FOOD PROCESSING UNITS”
Number of projects approved under PMKSY, PLISFPI and PMFME schemes of
MoFPI since inception of the scheme
S. No. of No. of approved Micro No. of approved
No. State/UT approved Food Processing applications at
projects under Enterprises under different locations
PMKSY PMFME under PLISFPI
1. Andaman & Nicobar 2 18 0
2. Andhra Pradesh 76 8087 38
3. Arunachal Pradesh 12 136 0
4. Assam 102 4600 4
5. Bihar 15 27723 7
6. Chandigarh 0 5 0
7. Chhattisgarh 10 1280 1
8. Dadar & Nagar Haveli and Daman & 1 0
12
Diu
9. Delhi 22 363 0
10. Goa 2 137 1
11. Gujarat 109 1010 32
12. Haryana 99 1633 9
13. Himachal Pradesh 44 2537 4
14. Jammu & Kashmir 41 1938 2
15. Jharkhand 2 4250 2
16. Karnataka 98 7724 21
17. Kerala 54 7937 10
18. Ladakh 0 90 0
19. Lakshadweep 0 0 0
20. Madhya Pradesh 51 11944 10
21. Maharashtra 244 26172 41
22. Manipur 8 308 0
23. Meghalaya 10 227 0
24. Mizoram 4 56 0
25. Nagaland 4 429 0
26. Odisha 30 2732 5
27. Puduchery 2 192 0
28. Punjab 76 3021 9
29. Rajasthan 55 1351 6
30. Sikkim 1 65 0
31. Tamil Nadu 156 17210 20
32. Telangana 67 7266 13
33. Tripura 9 248 0
34. Uttar Pradesh 99 20575 27
35. Uttarakhand 59 1037 7
36. West Bengal 55 431 9
*****