The Pradhan Mantri Kisan Sampada Yojana is a game-changer for India’s food processing industry, reinforcing the government’s commitment to doubling farmers’ income and achieving self-reliance in agriculture.
The Ministry of Food Processing Industries (MOFPI) has been at the forefront of revolutionizing India’s food processing sector through its flagship central sector umbrella scheme, Pradhan Mantri Kisan Sampada Yojana (PMKSY). This initiative plays a pivotal role in reducing agricultural wastage, enhancing farmers’ income, and strengthening the overall agro-based economy. With substantial financial assistance provisions and comprehensive infrastructure development, PMKSY is propelling India toward self-sufficiency and prosperity.
Key Features and Financial Assistance
Under PMKSY, financial assistance of up to ₹15 crore is provided for setting up food processing industries. The support covers 35% of the eligible project cost in general areas and 50% in difficult areas, including projects led by Scheduled Castes (SC), Scheduled Tribes (ST), Farmer Producer Organizations (FPOs), and Self-Help Groups (SHGs). This structured approach ensures inclusivity, allowing rural entrepreneurs and marginalized communities to benefit from the scheme.
Comprehensive Component Schemes
PMKSY encompasses several component schemes that address different aspects of food processing and value chain development. The Integrated Cold Chain and Value Addition Infrastructure scheme is designed to minimize post-harvest losses and maintain the freshness of produce from farm to consumer. The Operation Greens scheme aims to stabilize supply chains and control price fluctuations for perishable commodities through long-term interventions. The Agro Processing Cluster scheme supports infrastructure development for agro-processing clusters to facilitate the integration of farmers with processors. The Creation and Expansion of Food Processing & Preservation Capacities scheme focuses on increasing processing capacity and minimizing agricultural losses.
Additionally, the Creation of Backward and Forward Linkages scheme, which was discontinued in 2021, played a crucial role in establishing market connections for processed goods. The Mega Food Park scheme also contributed significantly by providing large-scale infrastructure for food processing units, though it was discontinued in 2021. These schemes have collectively strengthened India’s food processing industry, ensuring a seamless supply chain from farm gates to retail markets.
Impact on the Food Processing Industry
The Pradhan Mantri Kisan Sampada Yojana has been instrumental in promoting modern infrastructure with efficient supply chain management. The scheme has provided tangible benefits such as better price realization for farmers, employment generation, enhanced food security, and increased exports of processed foods. By facilitating improved processing techniques and reducing post-harvest losses, PMKSY is ensuring sustainable growth in the agricultural sector.
Quantitative Achievements
PMKSY has significantly contributed to the expansion of India’s food processing industry. The Ministry has approved 1,145 projects, allocating ₹4,746.89 crore in grants. The Agro Processing Clusters have received approval for 75 projects, amounting to ₹194.04 crore in financial assistance. The Creation of Backward and Forward Linkages scheme has sanctioned 61 projects, with an allocated grant of ₹143.31 crore. The Integrated Cold Chain and Value Addition Infrastructure scheme has witnessed the approval of 397 projects, with a financial outlay of ₹2,108.02 crore.
Similarly, the Creation and Expansion of Food Processing & Preservation Capacities scheme has facilitated 526 projects, receiving ₹1,083.84 crore in grants. The Mega Food Park scheme has contributed significantly with 41 approved projects, backed by ₹1,175.27 crore in financial support. Operation Greens has further bolstered supply chain efficiency with 45 projects and an allocated grant of ₹42.41 crore. These projects are driving transformation in the food processing sector, ensuring better market linkages and reducing post-harvest losses.
Cold Chain Infrastructure
One of the most impactful components of PMKSY is the Integrated Cold Chain and Value Addition Infrastructure scheme. This initiative addresses critical challenges such as post-harvest losses and the perishability of agricultural products. The scheme provides financial aid of up to ₹10 crore per project, ensuring a seamless supply chain from farm gate to consumers. The scheme has achieved significant milestones, with 397 projects approved, out of which 286 have been completed. The infrastructure established under this scheme has created a processing capacity of 112.35 lakh metric tonnes annually, along with a preservation capacity of 25.39 lakh metric tonnes, significantly reducing spoilage and enhancing food availability.
Driving Economic Growth and Rural Employment
PMKSY is not only enhancing food processing efficiency but also driving economic growth by creating employment opportunities, especially in rural areas. By supporting new enterprises and FPOs, the scheme is fostering rural industrialization and empowering farmers with better income opportunities. The financial support provided through PMKSY is helping entrepreneurs set up modern food processing units, leading to increased value addition and reduced wastage of agricultural produce.
Encouraging Private Sector Participation
The demand-driven model of PMKSY encourages private sector participation through the invitation of Expressions of Interest (EoIs), ensuring efficient fund allocation and optimized project implementation. This strategic collaboration between the government and private entities is crucial for achieving long-term sustainability in food processing infrastructure. By promoting innovation and investment, PMKSY is laying the foundation for a globally competitive food processing sector.
A Vision for Prosperity
The Pradhan Mantri Kisan Sampada Yojana is a game-changer for India’s food processing industry, reinforcing the government’s commitment to doubling farmers’ income and achieving self-reliance in agriculture. By reducing wastage, improving supply chains, and increasing processing capacities, PMKSY is paving the way for a prosperous, resilient, and globally competitive agri-business sector. With continued investments and policy support, India is well on its way to becoming a major hub for processed food production and exports, ensuring economic growth and food security for years to come.
