**Executive Summary**
This document is a response to Unstarred Question No. 919 in Lok Sabha, answered on December 4th, 2025. The question pertains to strengthening rural food supply-chain infrastructure. The Ministry of Food Processing Industries (MoFPI) addresses gaps via incentive schemes and outlines the total approved outlay for these initiatives.
**Key Points / Main Content**
* **MoFPI Initiatives:**
* The Ministry of Food Processing Industries (MoFPI) incentivizes setting up and expanding food supply-chain infrastructure.
* This is done through two Central Sector Schemes: Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) and Production Linked Incentive Scheme for Food Processing Industry (PLISFPI).
* MoFPI also implements the PM Formalization of Micro Food Processing Enterprises (PMFME) scheme, a centrally sponsored program.
* **Scheme Objectives:**
* The schemes aim to create modern infrastructure with efficient supply chain management from farm to retail.
* The objectives include improving returns for farmers, reducing waste and post-harvest losses, and enhancing productivity and processing levels.
* **Financial Assistance & Implementation:**
* MoFPI schemes are demand-driven, with most projects approved in rural areas to promote public investment.
* MoFPI provides financial assistance to eligible entrepreneurs in the form of grants-in-aid.
* MoFPI does not set up food processing units on its own.
* **Total Approved Outlay (Rupees in Crores):**
* PMKSY: 6520 (Implementation period: 2021-2026)
* PLISFPI: 10900 (Implementation period: 2021-2027)
* PMFME: 10000 (Implementation period: 2020-2026)
**Impact Analysis**
**Farmers**
* **Impact:** Better returns, reduced wastage, enhanced productivity, and increased access to modern supply chain infrastructure.
* **Action Required:** Engage with MoFPI schemes to access financial assistance and infrastructural support for improving their farming and processing practices.
**Entrepreneurs**
* **Impact:** Financial assistance in the form of grants-in-aid for establishing food processing infrastructure, potentially leading to business growth and expansion.
* **Action Required:** Review eligibility criteria and apply for grants-in-aid under relevant MoFPI schemes to establish or upgrade food processing units.
**Rural Areas**
* **Impact:** Promoted public investment and bridging of infrastructural gaps in rural food supply chains.
* **Action Required:** Local authorities and communities should support and facilitate the implementation of MoFPI schemes to enhance rural development and agricultural productivity.
Key Entities Referenced
Ministry of Food Processing Industries (MoFPI): The primary department responsible for food processing sector development and implementing related schemes.
Pradhan Mantri Kisan SAMPADA Yojana (PMKSY): A Central Sector Scheme aimed at incentivizing infrastructure development in the food processing sector.
Production Linked Incentive Scheme for Food Processing Industry (PLISFPI): A Central Sector Scheme to incentivize the food processing industry.
PM Formalization of Micro Food Processing Enterprises (PMFME) scheme: A Centrally sponsored scheme for micro food processing enterprises.
GOVERNMENT OF INDIA
MINISTRY OF FOOD PROCESSING INDUSTRIES
LOK SABHA
UNSTARRED QUESTION NO. 919
ANSWERED ON 04TH DECEMBER, 2025
STRENGTHENING OF RURAL FOOD SUPPLY-CHAIN INFRASTRUCTURE
919. SHRI SUKHDEO BHAGAT:
Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:
(a): whether the Government is aware of the major gaps in rural food supply-chain
infrastructure, including grading centres, packing units, controlled-atmosphere storage
facilities, reefer vans and food-testing laboratories, as highlighted in the Annual Report 2024-
25 and if so, the reasons for the low level of public investment in these critical areas;
(b): whether the Government has undertaken any assessment of the public investment
required to bridge these infrastructural gaps and if so, the details thereof; and
(c): the roadmap and timelines formulated by the Government to address these deficiencies
and to strengthen rural food supply-chain infrastructure across the country?
ANSWER
THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES
(SHRI RAVNEET SINGH)
(a) to (c): In order to address gaps in food supply-chain infrastructure and ensure overall
development of Food Processing Sector, 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.
These schemes aim towards creation of modern infrastructure with efficient supply
chain management from farm gate to retail outlet which includes storage, transportation, value
addition etc., thereby help in providing better returns to farmers, reducing wastage of
agricultural produce, reduction in post harvest losses, enhancing productivity and increasing
the processing level.
MoFPI schemes are demand driven and most of the projects approved under the
schemes are in rural areas, thereby promoting public investment in rural areas to bridge these
infrastructural gaps. MoFPI does not set up food processing units on its own. However, it
provides financial assistance in the form of grants-in-aid to eligible entrepreneurs for
establishing related infrastructure, through its schemes as per related scheme guidelines.
The total approved outlay for these three schemes are as under:
Name of the Scheme Implementation period Total Outlay
(Rupees in Crores)
PMKSY 2021-2026 6520
PLISFPI 2021-2027 10900
PMFME 2020-2026 10000
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