Contribution of the Food Processing Industry to the Indian Economy
The Ministry of Food Processing Industries has approved 41 Mega Food Parks, 399 Cold Chain projects, 76 Agro-processing Clusters, and 588 Food Processing Units under the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY). These projects aim to promote the food processing industry across the country and increase farmers’ income. Through this scheme, investment in the food processing industry is being encouraged, leading to increased employment opportunities in rural areas and reduced food wastage.
Contribution of the Food Processing Industry to the Indian Economy
The food processing industry has emerged as an important part of the Indian economy, contributing significantly to GDP, employment, and exports. Over the past eight years, ending in 2022-23, the food processing sector has recorded an average annual growth rate of approximately 5.35%. The Gross Value Added (GVA) in the food processing sector has increased from ₹1.61 lakh crore in 2015-16 to ₹1.92 lakh crore in 2022-23. According to the latest Annual Survey of Industries (ASI) report, employment in the food processing industry has risen from 17.73 lakh in 2014-15 to 20.68 lakh in 2021-22. Furthermore, the percentage share of processed food exports in agri-food exports has increased from 13.7% in 2014-15 to 23.4% in 2023-24.
Schemes for Development of the Food Processing Sector
To ensure the overall development of the food processing sector the Ministry of Food Processing Industries (MoFPI) is implementing several central schemes, including the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), the Production Linked Incentive Scheme for Food Processing Industries (PLISFPI), and the PM Formalization of Micro Food Processing Enterprises (PMFME). Through PMKSY, MoFPI helps create modern infrastructure across the country with efficient supply chain management from farm gate to retail outlet. This contributes to the promotion, overall development, and growth of food processing industries, aiding in employment generation, reducing agricultural produce wastage, increasing processing levels, and boosting exports of processed foods.
Financial Assistance and Approval of Projects under PMKSY
MoFPI provides financial assistance in the form of capital subsidies as grants-in-aid (GIA) for setting up new food processing industries/units/projects and expanding existing ones under various component schemes of PMKSY. 41 Mega Food Parks, 399 Cold Chain projects, 76 Agro-processing Clusters, 588 Food Processing Units, 61 Backward and Forward Linkages projects, and 52 Operation Green projects under PMKSY.
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Support for Micro Food Processing Enterprises under PMFME
The Ministry of Food Processing Industries also provides financial, technical, and business support for setting up and upgrading micro food processing enterprises under the PMFME scheme. This scheme is operational for the period 2020-21 to 2024-25, with a total outlay of ₹10,000 crore. A total of 92,549 micro food processing enterprises have been approved for assistance under PMFME.
Assistance to 172 Food Processing Companies under PLISFPI
The PLISFPI scheme aims to create global food manufacturing champions, support branding and marketing abroad, and promote Indian food product brands in the international market. This scheme is being implemented over a six-year period from 2021-22 to 2026-27, with a total outlay of ₹10,900 crore. A total of 172 food processing companies have been approved for assistance under various categories of the scheme.
