**Policy Summary: Ministry of Food Processing Industries Support to Farmers for Adopting Quality Standards**
The Ministry of Food Processing Industries (MoFPI) is implementing several schemes to support farmers and enhance the food processing sector. These include the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), and the PM Formalization of Micro Food Processing Enterprises (PMFME) scheme. Farmer Producer Organizations (FPOs) are eligible to apply under these schemes and receive preferential treatment under PMKSY, including:
* Reduced net worth requirement (equal to grant sought, compared to 1.5 times for general proposals).
* Reduced term loan requirement (10% of eligible project cost, compared to 20% for general proposals).
* Reduced equity requirement (10% of eligible project cost, compared to 20% for general proposals).
* Enhanced grant quantum (50% of eligible project cost, compared to 35% for general proposals), subject to maximum ceilings.
* Reduced minimum project cost requirement for Creation/Expansion of Food Processing/Preservation Capacities Scheme projects (Rupees One Crore, compared to Rupees Three Crores).
The PMKSY also mandates farm-level infrastructure in the catchment area of targeted produce under its Integrated Cold Chain and Value Addition Infrastructure component. Similarly, the Operation Greens component requires the formation of new FPOs, controlled temperature ventilated vehicles, and marketing infrastructure (retail outlets) for perishable products.
The PMFME scheme provides support for the formalization of micro food processing enterprises, including FSSAI registration/licensing. It also offers training in FSSAI regulations, safety, hygiene, and food quality testing. Grants are available for training trainers, entrepreneurs, and various groups (SHGs, FPOs, Cooperatives). Furthermore, grants of up to 50% are available for branding and marketing support to groups of FPOs, SHGs, Cooperatives, or Special Purpose Vehicles of Micro Food Processing Enterprises under the PMFME Scheme.
This information was provided by the Minister of State for Food Processing Industries, Shri Ravneet Singh, in a written reply in Lok Sabha on July 31, 2025.
Key Entities Referenced
Ministry of Food Processing Industries: The Indian governmental ministry responsible for food processing policies and schemes. Also referred to as MoFPI.
Pradhan Mantri Kisan SAMPADA Yojana (PMKSY): A Central Sector Scheme implemented by the Ministry of Food Processing Industries.
Production Linked Incentive Scheme for Food Processing Industry (PLISFPI): A Central Sector Scheme implemented by the Ministry of Food Processing Industries.
PM Formalization of Micro Food Processing Enterprises (PMFME): A Centrally sponsored scheme being implemented by the Ministry of Food Processing Industries.
Farmer Producer Organization (FPO): An organization of farmers eligible to apply under PMKSY, PLISFPI and PMFME schemes.
Operation Greens: Component scheme of PMKSY, focusing on integrated value chain development projects.
Food Safety and Standards Authority of India (FSSAI): An autonomous body responsible for setting food standards in India; registration/licensing of micro food processing enterprises under PMFME scheme.
Lok Sabha: The lower house of the Parliament of India, where information related to the schemes was provided.
Ministry of Food Processing Industries
Support to Farmers for Adopting Quality Standards
Posted On: 31 JUL 2025 5:51PM by PIB Delhi
Ministry of Food Processing Industries (MoFPI) is implementing two Central Sector Schemes namely
Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) and Production Linked Incentive Scheme for Food
Processing Industry (PLISFPI). Further, a Centrally sponsored scheme namely PM Formalization of Micro
Food Processing Enterprises (PMFME) scheme is also being implemented.
Farmer producer organization (FPO) are eligible to apply under these schemes. Under PMKSY, the following
preferential provisions have been made in component scheme guidelines of PMKSY for FPOs:
i. Net Worth requirement reduced to amount equal to grant sought, in comparison to 1.5 times for
proposals from general areas;
ii. Term Loan requirement reduced to 10% of eligible project cost, in comparison to 20%
for proposals from general areas;
iii. Equity requirement reduced to 10% of eligible project cost, in comparison to 20% for
proposals from general areas;
iv. Quantum of grant at enhanced level of 50% of eligible project cost, in comparison to
35% for proposals from general areas (Subject to the maximum ceiling under respective sub-
schemes);
v. Requirement of minimum project cost reduced to Rupees One Crore, in comparison to
rupees Three Crores in respect of Creation / Expansion of Food Processing & Preservation
Capacities Scheme projects [for other component schemes, no such criteria is fixed]
Under Integrated Cold Chain and Value Addition Infrastructure component scheme of PMKSY, creation of
farm level infrastructure in the catchment area of the targeted produce is mandatory. Similarly, under
Integrated Value Chain Development Projects of Operation Greens component scheme of PMKSY, formation
of new FPOs, Controlled temperature/ ventilated vehicle and Marketing Infrastructure (Retail chain of outlets
for perishable products with facilities such as frozen storage/ cold room/ cold storage/ deep freezers/
refrigerated display cabinets/ chillers/ packing/ packaging/ ripening chamber etc.) are mandatory.
All these help in creation of linkage between farmers & food processors and thereby increasing the income of
the farmers.
PMFME scheme provides for handhold support for formalization and operationalization of the micro food
processing enterprises including FSSAI registration/licensing, as applicable. Under Capacity building
component of the PMFME scheme, trainings in FSSAI regulations, safety and hygiene practices, food quality
testing norms etc. is provided to ensure the outreach of food safety and hygiene practices to all micro food
enterprises.
MoFPI also provide Grants for training of Trainers (Master Trainers, District Level Trainers), District
Resource Persons, Food Processing Entrepreneurs and various other groups (SHGs/ FPOs/ Cooperatives).
Grants upto 50% for branding and marketing support to groups of FPOs/ SHGs/ Cooperatives or a Special
Purpose Vehicle of Micro Food Processing Enterprises is available under related component of PMFME
Scheme.
This information was given by the Minister of State for Food Processing Industries Shri Ravneet Singh in a
written reply in Lok Sabha today.*****
STK
(Release ID: 2150879)