**Executive Summary**
This document, published by the Ministry of Food Processing Industries (MoFPI) on February 12, 2026, outlines the government's initiatives to promote high-tech food processing in India. The MoFPI incentivizes the sector through various schemes, including Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), and PM Formalization of Micro Food Processing Enterprises (PMFME). It also details the grant-in-aid extended to educational and research institutions for R&D projects.
**Key Points / Main Content**
* **Promotion of High-Tech Food Processing:**
* MoFPI incentivizes the setup and expansion of high-tech food processing infrastructure through PMKSY, PLISFPI, and PMFME schemes.
* Schemes aim to create modern infrastructure, efficient supply chains, better returns for farmers, and off-farm employment opportunities.
* MoFPI provides subsidy/incentives to eligible entities, including startups and MSMEs.
* **R&D Support and Grant-in-Aid:**
* MoFPI extends Grant-in-Aid to educational and research institutions, including CSIR recognized R&D units.
* Financial assistance covers 50% of equipment costs in general areas, 70% in difficult areas, and 100% for government organizations/institutions.
* R&D focus includes product and process development, equipment design, improved storage, and packaging.
* NIFTEMs at Kundli, Haryana, and Thanjavur, Tamil Nadu, are actively involved in R&D.
* Annexure provides a list of R&D projects approved since 2016-17 under the PMKSY R&D component.
* **Timely Implementation Measures:**
* MoFPI monitors project progress via a dashboard.
* Regular reviews with promoters to remove bottlenecks.
* Assessment through site visits.
* Issues addressed with banks and financial institutions.
* Penal provisions for delayed projects.
* Coordination with State Governments and their agencies.
**Impact Analysis**
**Stakeholder: Food Processing Industries (Private Organizations, Universities, R&D Laboratories)**
* **Impact:** Access to financial assistance (Grant-in-Aid) for R&D projects related to high-tech food processing.
* **Action Required:** Identify suitable R&D projects that align with the scheme's objectives and apply for Grant-in-Aid.
**Stakeholder: Farmers**
* **Impact:** Potential for better returns due to improved infrastructure, reduced wastage, and enhanced productivity in the food processing sector.
* **Action Required:** Participate in initiatives related to modern supply chain management from farm gate to retail outlet.
**Stakeholder: Research Institutions (NIFTEM, CSIR)**
* **Impact:** Opportunities to receive Grant-in-Aid for conducting demand-driven R&D in food processing.
* **Action Required:** Develop and implement R&D projects that contribute to high-tech advancements in the food processing sector.
**Stakeholder: MSMEs and Startups**
* **Impact:** Access to subsidy/incentives for eligible entities under schemes implemented by MoFPI.
* **Action Required:** Understand eligibility criteria for the schemes and apply for subsidies/incentives.
**Stakeholder: Banks and Financial Institutions**
* **Impact:** Expedite the sanction and disbursement of term loans to food processing projects.
* **Action Required:** Work with MoFPI and project promoters to ensure timely financial support for high-tech food processing projects.
Key Entities Referenced
Ministry of Food Processing Industries (MoFPI): The primary ministry responsible for promoting and overseeing the development of the food processing sector, including the implementation of related schemes.
Pradhan Mantri Kisan SAMPADA Yojana (PMKSY): A Central Sector Scheme focused on creating modern infrastructure for the food processing sector, enhancing productivity, and reducing wastage.
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): A Centrally sponsored scheme supporting the formalization of micro food processing enterprises.
National Institute of Food Technology, Entrepreneurship & Management (NIFTEM): An institute under the administrative control of MoFPI, engaged in R&D activities in the food processing sector, with locations in Kundli, Haryana and Thanjavur, Tamil Nadu.
Ministry of Food Processing Industries
Setting up of High-Tech Food Processing
Industries
MoFPI Promoting High-Tech Food Processing through
PMKSY, PLISFPI & PMFME Schemes Across India
Posted On: 12 FEB 2026 6:12PM by PIB Delhi
In order to promote and ensure overall development of food processing sector including promotion of
high-tech food processing, 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) and a Centrally sponsored PM Formalization of Micro Food Processing Enterprises
(PMFME) scheme across the country.
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, enhancing productivity, reducing wastage of agricultural produce and
creating off-farm employment opportunities.
In order to promote use of high-technology viz. use of Artificial Intelligence, Internet of Things, etc. in
Food Processing Sector, MoFPI extends Grant-in-Aid to educational and research institutions including
Council of Scientific & Industrial Research (CSIR) recognized Research and Development (R&D) units
in private sector for related demand driven R&D projects through its R&D scheme under Pradhan Mantri
Kisan SAMPADA Yojana (PMKSY).
Under R&D component of the Scheme, financial assistance as grant-in-aid is provided to Private
organizations/ universities/institutions/R&D laboratories and CSIR recognized R&D units in private
sector to the tune of 50% of equipment cost in general areas and 70% in difficult areas and to various
Universities, IITs, Central/ State Government Institutions, Government funded organizations to promote
and undertake demand driven R&D work in food processing sector for product & process development,
design and development of equipment, improved storage, shelf-life, packaging etc. R&D projects of
Government organizations/ Institutions are eligible for 100% grant-in-aid for the cost of equipment,
consumables and expenditure related to Research Fellows, etc.
In addition, National Institute of Food Technology, Entrepreneurship & Management (NIFTEM) Kundli,
Haryana and NIFTEM, Thanjavur, Tamil Nadu under administrative control of MoFPI, are also engaged
in R&D activities in the sector.
The details of R&D projects approved by MoFPI in the field of high-technology for development of Food
Processing Sector since 2016-17 under the R&D component scheme of PMKSY are at Annexure.
MoFPI provides subsidy/incentives to the eligible entities including startups and Micro, Small & Medium
Enterprises (MSMEs) under schemes implemented by MoFPI.At times, the projects approved under schemes of MoFPI face delays in obtaining statutory clearances/
certificates from the State Govt. regarding Consent to Establish, Consent to Operate, building plan
approval, electricity connection etc., have led to delay in completion of some of these projects.
MoFPI has taken various measures for timely implementation of these projects, which include (i)
Dashboard for monitoring the progress of the projects; (ii) Regularly review with the promoters to help
remove bottlenecks in implementation; (iii) Assessing the progress of projects though site visits to
prevent delays in their completion; (iv) Issues taken up with the Banks/ Financial Institutions to expedite
sanction and disbursement of term loan to the projects; (v) Penal provisions on the promotors in case of
delayed completion of projects; (vi) MoFPI, on the request of project implementing agencies, also took
up the matter with the concerned department of State Government and their agencies for smooth and
timely implementation.
This information was given by the Minister of State for Food Processing Industries Shri Ravneet Singh in
a written reply in Lok Sabha today.
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CMC-MoFPI
ANNEXURE
List of R&D projects approved in the field of high-technology for development of Food Processing
Sector under R&D component scheme of PMKSY since 2016-17 are as under:-
Sr Name of the Project Institute Project Approved Released Status
No. Name Cost GIA(In GIA (in
(In Lakh) Lakh)
Lakh)
1. 3-D Printed Foods: NIFTEM- 55.42 55.42 50.28 Completed
Personalized Nutrition Thanjavur
to Address
Malnutrition in India
2. Development of active NIFTEM- 53.04 53.04 45.94 Completed
intelligent packaging Thanjavur
system with
antimicrobial agent for
fruits and vegetables
3. Design and ICAR-Central 27.02 27.02 25.02 Completed
development of hot air Institute of
assisted continuous Fisheries
Infrared drying Technology,
Cochin, Kerala
system for high value
fish and fishery
products4 Waste of wealth: Visvesvaraya 32.79 32.79 32.79 Completed
Extracting National
nutraceutical Institute of
(polyphenols) from Technique,
troical fruits residue by Nagpur
biorefinery approach
5. Monascus Purpureus Central Food 24.90 24.90 23.23 Completed
CFR 410-11 fermented Technological
cowpea Tofu as Research
functional food Institute,
Mysore
6. Development of NIFTEM, 18.73 18.731 16.19 Completed
Blockchain-based Kundli,
Traceability Solution Sonepat,
for Agri-Food Supply Haryana
Chains
7. Phytochemical Tezpur 41.48 41.48 36.68 Completed
profiling and University,
valorisation of Pomelo Tezpur, Assam
fruit of Northeast
region
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