PMKSY Strengthens Food Processing Infrastructure, Reduces Post-Harvest Losses and Boosts - 30th July 2026 - Ministry of Food Processing Industries - Gazette Notification PDF
Issued by Ministry of Food Processing Industries
Read or download the official PDF of this gazette notification issued by the Ministry of Food Processing Industries on 30th July 2026. Classified under Press Release.
Executive Summary & Key Takeaways
Executive Summary The Pradhan Mantri Kisan Sampada Yojana (PMKSY) is a central sector umbrella scheme implemented by the Ministry of Food Processing Industries since 2017-18 to develop modern food processing infrastructure and reduce post-harvest losses. As of June 30, 2026, the scheme has approved 1,735 projects, with 1,256 currently operational, benefiting approximately 37.76 lakh farmers. The program provides financial assistance through grants-in-aid to eligible applicants, including rural entrepreneurs and Farmer Producer Organisations (FPOs), to enhance farmers' income and export competitiveness.
Key Points / Main Content
Core Objectives and Salient Features
- Development of integrated food processing and preservation infrastructure from farm gate to retail.
- Promotion of value addition to agricultural produce and significant reduction of post-harvest losses.
- Strengthening of food safety, quality assurance infrastructure, and integrated cold chains.
- Enhancement of farmers' income through improved market linkages and promotion of private investment and export competitiveness.
Financial Assistance and Scheme Structure
- PMKSY provides financial assistance in the form of grants-in-aid and subsidies for the creation or expansion of processing capacities.
- The scheme is demand-driven; funds are not allocated state-wise but are provided based on the merit of applications received via Expressions of Interest (EoIs).
- The umbrella scheme currently comprises six ongoing components, including Integrated Cold Chain (CC), Mega Food Parks (MFP), and Agro-Processing Clusters (APC).
Specific Support for Farmer Producer Organisations (FPOs)
- FPOs receive enhanced financial assistance with reduced net-worth requirements compared to general category applicants.
- Under the related PMFME scheme, FPOs are eligible for a 35% credit-linked subsidy (up to ₹10 lakh) for micro-food processing enterprises.
- FPOs can access grants of up to ₹3 crore for common infrastructure and branding/marketing support of up to 50% at state/regional levels.
Operational Progress (as of 30.06.2026)
- A total processing and preservation capacity of 294.21 LMT per annum has been created.
- The scheme has leveraged significant investment; for example, projects in the last three years alone have leveraged ₹5443.67 crore in investment.
- Component-wise, the "Creation/Expansion of Food Processing & Preservation Capacities" (CEFPPC) and "Integrated Cold Chain" (CC) represent the highest number of approved projects.
Impact Analysis
Farmers Impact Farmers benefit from increased demand for agricultural produce, better price realization, and enhanced income opportunities through improved market linkages and reduced wastage. Action Required Engage with operational projects and FPOs to utilize the newly created processing and preservation infrastructure.
Entrepreneurs and Private Investors Impact Eligible entities, including rural entrepreneurs, receive financial subsidies to mitigate the costs of setting up or expanding modern food processing units and cold chains. Action Required Monitor and respond to Expressions of Interest (EoIs) issued by the Ministry and submit project proposals that adhere to specific scheme guidelines.
Farmer Producer Organisations (FPOs) Impact FPOs are prioritized through relaxed financial eligibility criteria and specific subsidies for micro-enterprises, common infrastructure, and marketing. Action Required Leverage the PMFME and PMKSY provisions to establish common infrastructure or upgrade micro-processing units.
Ministry of Food Processing Industries (MoFPI) Impact The Ministry is responsible for regularly monitoring project implementation, scrutinizing EoIs, and evaluating proposals based on merit and fund availability. Action Required Continue the evaluation of applications and oversee the completion of the 479 approved projects that are not yet operational.