**Executive Summary**
The Ministry of Food Processing Industries (MoFPI) promotes the development of the food processing industry through schemes like PMKSY, PLISFPI, and PMFME, with a focus on millets and indigenous superfoods. There are no specific provisions for nutraceuticals & functional foods under the schemes implemented by MoFPI. The schemes are demand-driven and not region or state-specific. Annexure-I and Annexure-II provide details of funds allocated/utilized and sanctioned projects, respectively, since 2022-23.
**Key Points / Main Content**
* **Schemes Supporting Food Processing:**
* MoFPI incentivizes infrastructure development through PMKSY, PLISFPI, and PMFME schemes.
* Schemes aim to promote millet processing and value addition.
* Rs. 793.27 crore approved for PLISMBP to incentivize 29 applicants (8 large, 21 Small & Medium entities).
* Millets identified as One District One Product (ODOP) in 21 districts of 11 States.
* **Financial Support:**
* Financial support is provided to prospective entrepreneurs.
* As on 31.12.2025, 4,612 micro food processing enterprises with subsidy of Rs. 91.20 Cr for millet processing units have been approved.
* Under PMFME scheme, support is provided to Farmer Producer Organizations/Self Help Groups/Cooperatives or a Special Purpose Vehicle of micro food processing for developing a common packaging & branding.
* **Regulatory Framework:**
* Food Safety and Standards Authority of India (FSSAI) regulates the food processing sector.
* FSSAI has standards for nutraceutical products under the Food Safety and Standards (Health Supplements, Nutraceuticals, Food for Special Dietary Use, Food for Special Medical Purpose, Functional Food and Novel Food) Regulations, 2016.
* **Scheme Objectives:**
* Creation of modern infrastructure for efficient supply chain management.
* Enhancing productivity and reducing wastage of agricultural produce.
* Increasing the processing level and enhancing export of processed foods.
* **Funds Allocation and Utilisation**
* Details of the funds allocated and the funds utilised for the PMKSY, PLISFPI and PMFME schemes of MoFPI is mentioned in Annexure I.
* **Project Approval Status (since 2022-23)**
* Number of approved projects under the PMKSY, PLISFPI and PMFME schemes of MoFPI are mentioned in Annexure II.
**Impact Analysis**
**Entrepreneurs/Food Processing Units:**
* **Impact:** Access to financial incentives and infrastructure support.
* **Action Required:** Understand scheme guidelines and apply for relevant benefits.
**Farmers/Farmer Producer Organizations (FPOs):**
* **Impact:** Opportunities for value addition to their produce, access to better infrastructure and supply chains.
* **Action Required:** Explore collaboration opportunities with processing units, leverage branding and marketing support under PMFME.
**Consumers:**
* **Impact:** Access to safe and quality processed food products.
* **Action Required:** Be aware of FSSAI standards and certifications when purchasing food products.
**Government (MoFPI/FSSAI):**
* **Impact:** Oversight of the food processing sector, promotion of sustainable practices, ensuring food safety standards.
* **Action Required:** Effectively implement schemes, monitor progress, and ensure compliance with regulations.
Key Entities Referenced
Ministry of Food Processing Industries (MoFPI): The primary ministry responsible for implementing schemes related to food processing.
Pradhan Mantri Kisan Sampada Yojana (PMKSY) Scheme: A Central Sector scheme incentivizing setting up/expansion of related infrastructure for food processing.
Production Linked Incentive Scheme for Food Processing Industry (PLISFPI): A Central Sector scheme to incentivise the manufacturing and sale of millet-based products
Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) Scheme: A Centrally Sponsored Scheme promoting micro food processing enterprises.
Food Safety and Standards Authority of India (FSSAI): Regulatory authority in the food processing sector that specifies standards for nutraceutical products.
Ministry of Food Processing Industries
Promotion of Nutraceuticals and Functional
Foods
Development of Food Processing Infrastructure under MoFPI
Schemes
Strengthening Food Processing Ecosystem through MoFPI
Schemes
Posted On: 06 FEB 2026 8:04PM by PIB Delhi
There is no specific provisions for supporting nutraceuticals & functional foods under the schemes
implemented by Ministry of Food Processing Industries (MoFPI). However, in order to promote and
ensure overall development of Food Processing Industries including those based on millets and other
indigenous superfoods viz. makhana, MoFPI has been incentivizing setting up/expansion of related
infrastructure through its two Central Sector schemes namely Pradhan Mantri Kisan SAMPADA Yojana
(PMKSY) Scheme, Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) and a
Centrally Sponsored – Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME)
Scheme across the country. These schemes are not region or state specific but demand driven.
One component of PLISFPI focuses on Millet-Based Products (MBP), with an outlay of Rs. 800 crores.
The objectives of the PLI Scheme for Millet-Based Products (PLISMBP) are to increase the use of millets
in food products and promote their value addition by incentivizing the manufacturing and sale of selected
millet-based products in both domestic and export markets. As on date, out of total allocation of Rs. 800
crores for PLISMBP, an amount of Rs.793.27 crore has been approved to incentivise 29 applicants, which
includes 8 large and 21 Small & Medium entities.
Under PMFME Scheme, Millet and its products have been identified as One District One Product (ODOP)
in 21 districts of 11 States. 17 Incubation Centers approved in 10 States having Millet processing lines. As
on 31.12.2025, 4,612 micro food processing enterprises with subsidy of Rs. 91.20 Cr for millet processing
units and 379 micro food processing enterprises with subsidy of Rs. 12.81 crore for makhana processing
units have been approved across the country.
Year-wise total allocation & funds utilized under PMKSY, PLISFPI & PMFME since 2022-23 across the
country are given at Annexure-I.
The details of food processing projects sanctioned by MoFPI under the said three schemes across the
country, since 2022-23 is given at Annexure-II.
The regulatory matters in food processing sector is within the mandate of Food Safety and Standards
Authority of India (FSSAI) under Ministry of Health & Family Welfare. As informed by FSSAI, it has
specified standards for nutraceutical products under the Food Safety and Standards (Health Supplements,Nutraceuticals, Food for Special Dietary Use, Food for Special Medical Purpose, Functional Food and
Novel Food) Regulations, 2016. These regulations have specified permissible ingredients, standards,
limits of vitamins, minerals, botanicals and other substances, labelling requirements and claims
framework.
Key challenges in standardisation are overlapping of vitamins with drug; diverse definition of
nutraceuticals across the different countries.
Further, in order to promote processing of millets and other indigenous superfoods viz. makhana, MoFPI
through its three schemes, extends financial support to prospective entrepreneurs for setting up of related
industries, as per respective scheme guidelines.
Under Research and Development (R&D) component of the PMKSY Scheme, MoFPI extends financial
assistance as grant-in-aid to Private organizations/ universities/institutions, Public funded organizations
and recognized R&D laboratories both in public and private sector to promote and undertake demand
driven R&D work in food processing sector.
Under Branding and Marketing component of the PMFME scheme, support is provided to Farmer
Producer Organisations/Self Help Groups/Cooperatives or a Special Purpose Vehicle of micro food
processing for developing a common packaging & branding with provision for quality control,
standardization, and adhering to food safety parameters for consumer retail sale.
Schemes implemented by MoFPI 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 enhancing productivity, reducing wastage of agricultural produce, reduction in post harvest
losses, enhancing productivity, increasing the processing level and enhancing the export of the
processed foods.
*****
ANNEXURE-I
Details of funds allocated and funds utilized in PMKSY & PLISFPI & PMFME schemes of MoFPI
(Rs in Crores)
2022-23 2023-24 2024-25
Scheme
R.E. A.E R.E. A.E R.E. A.E
PMKSY 673.00 561.92 745.00 666.20 630.00 540.12
PLISFPI 801.00 489.83 1150.00 590.50 700.00 450.49
PMFME 290.00 274.76 800.00 778.84 1200.00 1023.10
R.E.—Revised Estimates, A.E.- Actual Expenditure
****
ANNEXURE-IINumber of projects approved under PMKSY, PLISFPI and PMFME schemes of MoFPI since 2022-
23
S. No. of No. of approved Micro No. of approved
State/UT approved Food Processing units at different
No.
projects under Enterprises under locations under
PMKSY PMFME PLISFPI
1. Andaman & Nicobar 0 12 0
2. Andhra Pradesh 33 6712 2
3. Arunachal Pradesh 7 97 1
4. Assam 47 3061 0
5. Bihar 7 23480 0
6. Chandigarh 0 0 0
7. Chhattisgarh 4 957 0
8. Dadar & Nagar Haveli 0 7 0
and Daman & Diu
9. Delhi 1 258 0
10. Goa 1 101 0
11. Gujarat 23 703 5
12. Haryana 18 1287 3
13. Himachal Pradesh 5 1649 2
14. Jammu & Kashmir 3 1332 0
15. Jharkhand 0 3576 0
16. Karnataka 20 6163 7
17. Kerala 22 6496 018. Ladakh 0 76 0
19. Lakshadweep 0 0 0
20. Madhya Pradesh 16 9221 2
21. Maharashtra 71 23079 7
22. Manipur 1 111 0
23. Meghalaya 2 190 0
24. Mizoram 0 40 0
25. Nagaland 0 368 0
26. Odisha 16 1978 0
27. Puduchery 0 163 0
28. Punjab 12 2545 3
29. Rajasthan 22 947 0
30. Sikkim 0 59 0
31. Tamil Nadu 41 14970 7
32. Telangana 34 6703 5
33. Tripura 1 183 0
34. Uttar Pradesh 26 16407 1
35. Uttarakhand 12 859 4
36. West Bengal 14 171 0
TOTAL 459 133961 49
This information was given by the Minister of State for Food Processing Industries Shri Ravneet Singh in
a written reply in Rajya Sabha today.
*****CMC - MoFPI
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