The Ministry of Food Processing Industries (MoFPI) has introduced new subsidy schemes aimed at enhancing India’s food processing sector. These initiatives include the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), the Production Linked Incentive Scheme for the Food Processing Industry (PLISFPI), and the PM Formalization of Micro Food Processing Enterprises (PMFME) scheme. These schemes offer financial grants and subsidies to small, medium and large enterprises to build advanced food processing and preservation infrastructure, increasing the overall supply chain from farm to retail.

Major Schemes and Fund Allocation

The MoFPI is currently instigating two central sector schemes and one centrally sponsored scheme to support the food processing sector:

• Pradhan Mantri Kisan SAMPADA Yojana (PMKSY): Launched to encourage food processing across India, PMKSY focuses on boostinf cold chain infrastructure and establishing preservation facilities. With an outlay of ₹5,520 crore, the scheme has already approved 1,601 projects as part of its implementation period from 2021 to 2026.
• PM Formalization of Micro Food Processing Enterprises (PMFME): Dedicated to micro-enterprises, this scheme provides credit-linked subsidies to small food processors to modernize and formalize their operations. The allocated budget for this scheme is ₹10,000 crore, and over 1, 44,517 (credit linked subsidy sanctioned) projects have been approved since its inception in 2020.
• Production Linked Incentive Scheme for Food Processing Industry (PLISFPI): This initiative, with an allocation of ₹10,900 crore, is designed to incentivize large-scale food processors. The PLISFPI, active from 2021 until 2027, has already seen the approval of 170 projects, aiming to improve food processing capacities and boost domestic manufacturing.

Enhancing Food Preservation and Reducing Wastage

A key component under PMKSY is the development of integrated cold chain and value addition infrastructure, which consists food irradiation facilities. Food irradiation technology plays an important role in encompassing the shelf life of perishable farm produce, thus minimizing wastage. These efforts not only ensure better preservation but also enhance transportation and storage of raw and finished products, ultimately reducing post-harvest losses.

The Ministry aims to create a seamless supply chain management system that efficiently connects farmers to markets, enhances value addition, and boosts productivity. This helps in offering better returns to farmers, generates employment opportunities, and encourages the processing level within the food industry.

World Food India: A Platform for Growth

MoFPI has been actively endorsing investment and partnerships in the food processing sector through the World Food India (WFI) event. The ministry has successfully organized three editions in 2017, 2023, and 2024. The fourth edition is scheduled from 25th to 28th September 2025.

WFI serves as a platform for food processors, technology providers, logistics and cold chain operators, and investors to explore business opportunities and collaborate. It helps incorporate the Indian food processing industry into domestic and international markets, strengthening the sector’s growth trajectory.