**Executive Summary**
This document outlines the Ministry of Food Processing Industries' (MoFPI) initiatives to strengthen the food processing sector through schemes like PMKSY, PMFME, and PLISFPI. These programs aim to boost infrastructure development, generate employment, and enhance farmer incomes. The document details specific incentives and support mechanisms available, with a particular focus on opportunities generated by operational projects as of December 31, 2025.
**Key Points / Main Content**
* **Scheme Objectives:**
* Promote overall development of Food Processing Industries.
* Incentivize setting up/expansion of related infrastructure.
* Value addition of food products and promotion of agri-based industries.
* Generate employment opportunities.
* Enhance farmer incomes.
* Reduce post-harvest losses.
* **Implementing Schemes:**
* Pradhan Mantri Kisan SAMPADA Yojana (PMKSY)
* Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)
* PM Formalization of Micro Food Processing Enterprises (PMFME)
* **Support Mechanisms:**
* **Grant-in-aid/Subsidy:** Provided to eligible entities under various schemes and project categories, with differentiated rates for general areas and difficult areas/specific groups.
* **Capacity Building:** Training programs for Trainers, District Resource Persons, Entrepreneurs, and others in Entrepreneurship Development Skilling (EDP+) and product-specific skilling.
* **Handholding and Mentorship:** Provided by autonomous institutions like NIFTEM-K and NIFTEM-T, including access to pilot plants, testing labs, incubation services, R&D support, and networking.
* **Infrastructure Development:** Facilitating the creation of modern infrastructure, efficient supply chain management, storage, transportation, and market linkages.
* **Specific Support under PMFME:**
* Credit-linked capital subsidy for individual/group micro enterprises.
* Seed capital for Self-Help Groups (SHGs).
* Support for common infrastructure for FPOs, SHGs, and Cooperatives.
* Grant for Branding and Marketing to eligible groups.
* **Employment Generation (as of 31.12.2025):**
* PMKSY: 4.69 lakh direct/indirect employment opportunities.
* PMFME: 5.18 lakh direct/indirect employment opportunities.
* PLISFPI: 3.29 lakh direct/indirect employment opportunities.
* **Incentives under PMKSY (Annexure):**
* **Integrated Cold Chain and Value Addition Infrastructure:** 35% grant in general area (max Rs. 10 crore), 50% in difficult areas.
* **Creation/Expansion of Food Processing & Preservation Capacities:** 35% grant in general area (max Rs. 5 crore), 50% in difficult areas.
* **Infrastructure for Agro-Processing Clusters:** 35% grant in general area (max Rs. 10 crore), 50% in difficult areas.
* **Operation Greens:** Differentiated grants for Integrated Value Chain Development Projects and Standalone Post-Harvest Infrastructure Projects.
* **Food Safety and Quality Assurance - Food Testing Laboratories:** 50% grant for private entities in general area, 70% in difficult areas.
* **Human Resource & Institutions-Research & Development:** 100% grant for government organizations (equipment/consumables), 50% for private organizations/universities (equipment cost).
* **Incentives under PLIS-FPI:**
* **Category 1 (RTE/RTC, F&V):** Differentiated rates for Biscuits, Non-Biscuits, Spices, and Non-Spices, with varying Compound Annual Growth Rates (CAGR) and annual incentive rates up to 2025-26.
* **Category 1 (Marine, Mozzarella Cheese, Millet Products):** Similar differentiated incentive structures.
* **Category 2 (Organic Products, Innovative Products):** Standard incentive rates.
* **Category 3 (Branding & Marketing - B&M):** Financial incentive up to 50% of expenditure on B&M abroad for Indian brands, with specific grant limits based on sales.
* **Assistance under PMFME Scheme:**
* Credit-linked capital subsidy @35% for micro enterprises (max Rs. 10 lakh per unit).
* Seed capital for SHGs (Rs. 40,000 per member, max Rs. 4 lakh per Federation).
* Credit linked capital subsidy @35% for common infrastructure (max Rs. 3 crore).
* Grant up to 50% for Branding and Marketing for eligible groups.
* Training for Entrepreneurship Development Skilling (EDP+) and product-specific skilling.
**Impact Analysis**
* **Food Processing Enterprises and Entrepreneurs:**
* **Impact:** Access to subsidies, grants, and capital for setting up and expanding food processing units and infrastructure. Opportunities for skill development, mentorship, and market linkage.
* **Action Required:** Familiarize with scheme guidelines, eligibility criteria, and application procedures to avail financial assistance and support services.
* **Farmers:**
* **Impact:** Enhanced income through value addition and reduced post-harvest losses due to improved infrastructure and supply chain management.
* **Action Required:** Participate in farmer producer organizations (FPOs) or Self-Help Groups (SHGs) that can leverage common infrastructure and branding support.
* **Government Organizations (Institutions, Agencies):**
* **Impact:** Potential for grants to support R&D, human resource development, and establishment of common infrastructure.
* **Action Required:** Review specific grant provisions for government organizations under PMKSY and PMFME to identify opportunities for collaboration and infrastructure development.
* **Private Organizations, Universities, and Institutions:**
* **Impact:** Eligibility for grants and incentives for setting up and expanding food testing laboratories, R&D facilities, and human resource development initiatives.
* **Action Required:** Understand the grant-in-aid structures and eligibility criteria for private entities under PMKSY, particularly for food safety and quality assurance, and R&D.
* **Self-Help Groups (SHGs) and Cooperatives:**
* **Impact:** Access to seed capital for working capital and small tools, and support for setting up common infrastructure and branding/marketing initiatives.
* **Action Required:** Formulate proposals for seed capital, common infrastructure, and branding support as per PMFME scheme guidelines.
* **Consumers:**
* **Impact:** Potential for improved availability of processed food products and possibly reduced prices due to increased efficiency and reduced losses in the supply chain.
* **Action Required:** No direct action required; this group benefits from the overall strengthening of the sector.
Key Entities Referenced
Pradhan Mantri Kisan SAMPADA Yojana (PMKSY): A Central Sector Scheme incentivizing the setting up/expansion of infrastructure for the food processing industry.
Production Linked Incentive Scheme for Food Processing Industry (PLISFPI): A Central Sector Scheme providing incentives for the food processing industry.
PM Formalization of Micro Food Processing Enterprises (PMFME) Scheme: A Centrally sponsored scheme for the formalization of micro food processing enterprises.
Ministry of Food Processing Industries (MoFPI): The government ministry responsible for implementing and overseeing the mentioned schemes.
National Institute of Food Technology Entrepreneurship & Management (NIFTEM): Autonomous institutions providing support, mentorship, and training for the food processing industry.
Ministry of Food Processing Industries
Strengthening Food Processing Sector through
MoFPI Schemes: Infrastructure Development and
Over 13 Lakh Employment Generated
Boost to Food Processing Industry under PMKSY, PMFME
and PLISFPI Schemes Across India
New Food Processing Units
Posted On: 12 MAR 2026 6:13PM by PIB Delhi
In order to promote and ensure overall development of Food Processing Industries including value
addition of food products & promotion of agri-based industries, Ministry of Food Processing Industries
(MoFPI) has been incentivizing setting up/ expansion of related infrastructure, 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) Scheme across the country.
MoFPI provides subsidy/incentives to the eligible entities, as per scheme guidelines across the country
including Jamui, Khagaria, Samastipur, Sagar, Ghaziabad and Surat Lok Sabha Constituencies. The details
of incentives available under these schemes of MoFPI are given at Annexure.
To facilitate scaling up of food processing infrastructure and enterprises, MoFPI issues, from time to time,
detailed guidelines for its schemes, based on the stakeholders’ consultations. Guidelines include model
frameworks, basic eligibility conditions, documents required, evaluation criteria etc. for availing grant-in-
aid for setting up of food processing units.
Under the Capacity Building component of the PMFME Scheme, MoFPI provides assistance for training
of Trainers, District Resource Persons, Entrepreneurs and various other groups for Entrepreneurship
Development Skilling (EDP+) & product specific skilling to meet the requirement of food processing
industry. The scheme also envisages strengthening backward and forward linkages, provision of common
facilities, incubation centres, training, marketing & branding.
MoFPI, through its two autonomous Institutions namely, National Institute of Food Technology
Entrepreneurship & Management, Kundli, Haryana (NIFTEM-K) & National Institute of Food
Technology Entrepreneurship & Management, Thanjavur, Tamil Nadu (NIFTEM-T), also provide
handholding support, mentorship, training, access to facilities such as Pilot Plant, NABL-accredited Food
Testing Labs, incubation services, quality testing, R&D support, networking opportunities, etc.
All these schemes are implemented across the country and aim towards creation of modern infrastructure
with efficient supply chain management from farm gate to retail outlet which includes storage,
transportation, creation of market linkages etc., thereby help in reducing post-harvest losses andfacilitating enhance farmer incomes and creating off-farm employment opportunities.
As on 31.12.2025, 4.69 lakh direct/ indirect employment opportunities have been generated from the
operational projects under component schemes of PMKSY, 5.18 lakh direct and indirect employment
opportunities has been generated under PMFME scheme and 3.29 lakh direct/ indirect employment
opportunities has been generated under PLISFPI across the country.
This information was given by the Minister of State for Food Processing Industries Shri Ravneet Singh in
a written reply in Lok Sabha today.
*****
CMC – MoFPI
Annexure
Incentives available under Pradhan Mantri Kisan Samapada Yojana (PMKSY)
S. Component Scheme Benefits (Grant-in-aid) for Scheme Benefits
No. Scheme projects in General Area
(Grant-in-aid) for projects
in Difficult Areas as well as
SC/ST, FPOs, SHGs
1. Integrated Cold Grant-in-aid @ 35% of eligible project Grant-in-aid @ 50% of
Chain and Value cost [subject to maximum of Rs.10 eligible project cost [subject
Addition crores per project] to maximum of Rs. 10 crores
Infrastructure per project]
2. Creation/ Grants-in-Aid @35% of eligible project Grants-in-Aid @50% of
Expansion of cost [subject to maximum of Rs. 5 eligible project cost [subject
Food Processing crores per project] to maximum of Rs.5 crores
& Preservation per project]
Capacities
3. Infrastructure Grants-in-aid @35% of eligible project Grants-in-aid @50% of
for Agro- cost in General Area [subject to eligible project [subject to
Processing maximum of Rs. 10 crores per project] max. of Rs. 10 crore per
Clusters project]
4. Operation Grants-in-Aid @35% of eligible project Grants-in-Aid maximum
Greens cost for Integrated Value Chain @50% of eligible project cost
Development Projects, maximum for Integrated Value Chain
grants-in-aid would be ₹15 crore per Development Projects,
project; and for Standalone Post- maximum grants-in-aid would
Harvest Infrastructure Projects, be ₹15 crore per project; and
maximum grants-in-aid would be ₹10 for Standalone Post-Harvest
crore per project. Infrastructure Projects,
maximum grants-in-aid would
be ₹10 crore per project.5. Food Safety and For Private organizations/ entities: For Private organizations/
Quality grant-in-aid of @ 50% of the eligible entities: grant-in-aid of @
Assurance - cost [subject to maximum of Rs. 5 70% of the eligible cost
Food Testing crores per project] [subject to maximum of Rs. 5
Laboratories crores per project]
6. Human For Government Organizations - Grants For Government
Resource & @ 100% of equipment cost, Organizations - Grants @
Institutions- consumables, 100% of equipment cost,
Research & consumables
For private organizations
Development
/universities/institutions, grant @ 50 % For Private Organizations
of equipment cost. /Universities/ Institutions,
Grants @ 70% of equipment
cost.
****
Incentives structure under Production Linked Incentive Scheme for Food Processing Industry
(PLIS-FPI)
Category/ Segment Incentive Upper cap Rate of Incentives (%)
Segments Disbursement
(% &
criteria (%)
Amount in
crore)
Min. Max. 2021- 2022- 2023- 2024- 2025- 2
CAGR CAGR 22 23 24 25 26
Cat. 1
RTE/RTC Biscuits 10% 13% 8% 5% 5% 5% 5% 4.5%
Rs.334.48
Non- 7.5% 7.5% 7.5% 7.5% 6.75%
Biscuits
F&V Spices 10% 12% 8% 5% 5% 5% 5% 4.5%
Rs.286.56
Non- 15% 10% 10% 10% 10% 9%
SpicesMarine Marine 5% 10% 8% 6% 6% 6% 6% 5%
products
Rs.79.44
Value 10% 10% 10% 10% 10%
added
products
Mozzarella 15% 16% 25% 10% 10% 10% 8% 6%
Cheese
Rs.70.75
Millet Large 10% - Rs.100 - 10% 10% 10% 9%
Products Entity
MSME 10% - Rs.10.54
Cat. 2 Organic 10% - 10% 10% 10% 10% 9%
Products
Innovative 10% - 10% 10% 10% 10% 9%
Products
Cat. 3 Branding Only Indian 50% of - Financial incentive @50% of
& brands covered total expenditure on B&M abroad subje
Marketing for selling food expenditure max. grant of 3% of sales of food
(B&M) products products or Rs. 50 Cr per year,
completely whichever is less.
manufactured in
India.
CAGR- Compound Annual Growth Rate
The details of assistance available to Micro Food Processing Enterprises under PMFME Scheme
(i). Support to Individual / Group Category Micro Enterprises: Credit-linked capital subsidy
@35% of the eligible project cost, maximum ceiling Rs.10 lakh per unit;
(ii). Support to SHGs for seed capital: Seed capital @ Rs. 40,000/- per member of SHG engaged in
food processing for working capital and purchase of small tools subject to maximum of Rs. 4 lakh
per SHG Federation.
(iii). Support for Common Infrastructure: Credit linked capital subsidy @35% subject to maximum
of Rs. 3 crore to support FPOs, SHGs, Cooperatives and any Government agency for setting up of
common infrastructure. The common infrastructure will also be available for other units and public
to utilize on hiring basis for substantial part of the capacity.
(iv). Branding and Marketing Support: Grant upto 50% for Branding and Marketing to groups of
FPOs/ SHGs/ Cooperatives or an SPV of micro food processing enterprises.(v). Capacity Building: The scheme envisages training for Entrepreneurship Development Skilling
(EDP+): program modified to meet the requirement of food processing industry and product
specific skilling.
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