Boosting Food Processing: How Govt Schemes Empower Entrepreneurs?

The Indian food processing industry is experiencing a surge in growth, driven by powerful government initiatives aimed at empowering small and medium-scale entrepreneurs. Through schemes like PMKSY, PMFME, and PLISFPI, the Ministry of Food Processing Industries (MoFPI) is helping entrepreneurs scale their businesses, create jobs, and boost India’s presence in the global food market.

Here TICE decodes how these schemes are reshaping the food processing landscape in India.

Government Schemes Revolutionizing India’s Food Processing Sector

India’s food processing sector, crucial for both domestic and global markets, has received a significant boost thanks to the Ministry of Food Processing Industries (MoFPI). Through innovative schemes, the government is driving growth for small and medium-scale food processing entrepreneurs, helping them establish and expand their businesses. These initiatives—PMKSY, PMFME, and PLISFPI—are designed to provide financial, technical, and business support, creating a thriving food processing ecosystem across the country.

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Pradhan Mantri Kisan SAMPADA Yojana (PMKSY): Empowering Large-Scale Projects

The PMKSY scheme has been a game-changer for India’s food processing industry. With a total outlay of ₹5,520 crores under the 15th Finance Commission Cycle, PMKSY offers credit-linked financial assistance (capital subsidies) to entrepreneurs. This scheme has already led to the creation of vital infrastructure projects, with MoFPI sanctioning:

• 41 Mega Food Parks
• 399 Cold Chain Projects
• 76 Agro-Processing Clusters
• 559 Food Processing Units
• 61 Linkages Projects
• 51 Operation Green Projects

These initiatives span across India, fueling regional and national demand, and creating a robust ecosystem for food processing. From cold chains to food parks, PMKSY’s reach is nationwide, impacting every level of the food production and distribution process.

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PMFME Scheme: Strengthening Micro Food Processing Enterprises

Launched in 2020, the PM Formalization of Micro Food Processing Enterprises (PMFME) scheme focuses on uplifting small-scale food processing businesses. With an outlay of ₹10,000 crores until 2025-26, this scheme provides financial, technical, and business support to micro entrepreneurs, enabling them to formalize and upgrade their operations.

As of October 2024, 1,08,580 micro food processing enterprises have received assistance under the PMFME scheme. By helping small businesses scale up and modernize, the government is ensuring these enterprises become more competitive, improving efficiency and contributing significantly to local economies.

PLISFPI: Positioning India as a Global Food Manufacturing Hub

The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) is aimed at transforming India into a global leader in food processing. With an outlay of ₹10,900 crores over six years, this scheme seeks to support the creation of global food manufacturing champions and boost the international presence of Indian food brands.

Since its launch in 2021, 171 food processing companies have received assistance under PLISFPI. This scheme is crucial for positioning India’s food products in international markets and supporting the global expansion of Indian food brands, which is key to the country’s vision of becoming a global food processing powerhouse.

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What's Next for India’s Food Processing Landscape?

Through these targeted schemes, the government is not only facilitating the growth of food processing enterprises but also strengthening India’s food supply chain, creating jobs, and positioning the country as a global food leader. The support provided to entrepreneurs—ranging from micro businesses to large-scale processing giants—is transforming the food industry, ensuring long-term growth, and boosting India’s competitiveness on the world stage.

As these schemes continue to evolve, the future looks bright for India’s food processing sector, creating opportunities for entrepreneurs and contributing to the country’s economic growth.

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