What is the Centre's plan for food processing schemes?

The Centre plans to allocate around ₹28,000 crore over five years to expand schemes like PMFME and PMKSY, focusing on value addition and farmer income.

How will PMFME and PMKSY benefit farmers?

These schemes will boost value addition, reduce post-harvest losses, and improve market linkages, directly benefiting farmers' incomes.

What is the proposed funding for food processing in India?

A total of approximately ₹28,000 crore is being considered for allocation over the next five years to enhance food processing initiatives.

Home / Business and Economy / Food Processing Boost: ₹28,000 Cr Plan Unveiled

Food Processing Boost: ₹28,000 Cr Plan Unveiled

17 Jan

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Summary

Centre plans ₹28,000 crore boost for food processing schemes.
Schemes PMFME and PMKSY to receive significant funding.
Focus on reducing post-harvest losses and improving farmer incomes.

Food Processing Boost: ₹28,000 Cr Plan Unveiled

The Indian government is proposing a significant investment of approximately ₹28,000 crore over the next five years in its flagship food processing schemes. This ambitious plan, set to be detailed in the upcoming Union budget, aims to bolster value addition in the agricultural sector, drastically cut down post-harvest losses, and improve farmers' financial well-being via enhanced market connections.

The proposed funds are earmarked for two vital schemes: the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme and the Pradhan Mantri Kisan Sampada Yojana (PMKSY). PMFME will receive an estimated ₹15,000 crore to expand credit-linked subsidies and provide technology and marketing support to small enterprises. PMKSY, with an allocation of ₹13,000 crore, will focus on developing essential modern infrastructure, including cold chain networks and agro-processing clusters.

This strategic expansion aligns with the government's objective to make food processing a primary driver of agricultural growth, creating off-farm employment opportunities and stabilizing farm incomes. Experts emphasize that while increased allocations are welcome, strengthening ground-level market linkages and ensuring better price realization for farmers are critical for the schemes' success.