The food processing ministry said its flagship scheme Pradhan Mantri Kisan Sampada Yojana (PMKSY) has been extended till March 2026 with an allocation of Rs 4,600 crore.  

The scheme will boost growth of food processing sector but also help in providing better prices to farmers and creating huge employment opportunities.  

What is PMKSY?

The Centre launched SAMPADA (Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters) with an allocation of Rs 6,000 crore in 2016-17.

The scheme was renamed as Pradhan Mantri Kisan Sampada Yojana (PMKSY) in August 2017.  

PMKSY is a comprehensive package resulting in creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet. Not only it provides a big boost to the growth of food processing sector in the country but also helps in providing better returns to farmers and is a big step towards doubling of farmers’ income, creating huge employment opportunities especially in the rural areas, reducing wastage of agricultural produce, increasing the level of processing and enhancing the export of processed foods. 

Why was this scheme launched?

Given the nature and size of processing units operating in the food processing sector, investment in basic infrastructure and common facilities are unlikely to come from the private sector in a significant way. With a view to augment private investment to food processing sector, the ministry of food processing industries has been implementing a number of schemes for creation of infrastructure, expansion of processing capacity, and other supporting measures for healthy growth of food processing industry. All these existing schemes were reviewed, critical gaps identified, and some new schemes were formulated to address these gaps in promoting the sector. 

All these schemes were integrated under PMKSY to give necessary thrust for accelerated growth of the sector.

PMKSY was launched to leverage investment of Rs 31,400 crore for handling of 334 lakh MT agro-produce valued at Rs 1,04,125 crore, benefitting 20 lakh farmers and generating over five lakh direct/indirect employment in the country.

The PMKSY has the following schemes:

1) Mega Food Parks

Mega Food Parks scheme, being implemented since 2008, aims to create a modern food processing infrastructure for the processing units based on a cluster approach and on a hub and spoke model in a demand driven manner. The scheme intends to facilitate establishment of an integrated value chain, with food processing at the core and supported by requisite forward and backward linkages. The central processing center is networked with the primary processing centers and collection centers located at the farm gate in production areas. The broader idea behind the scheme is to bring together farmers, processors and retailers and link agricultural production to the market so as to ensure maximisation of value addition, minimisation of wastages and improving farmers’ income.

2) Integrated Cold Chain and Value Addition Infrastructure

In order to minimise the post-harvest losses and enhance value addition in the agricultural produce, the ministry has been implementing the scheme for Integrated Cold Chain and Value Addition Infrastructure since 2008. The scheme provides for promoting integrated and complete cold chain facilities without any break from the farm gate to the consumer, end to end, to reduce losses by improving efficiency in collection of farmer produce, storage, transportation and minimal processing. Both horticultural and non-horticultural produce are eligible for support under this scheme.

3) Creation/Expansion of Food Processing & Preservation Capacities 

The scope and scale of assistance under the scheme for creation/expansion of food preservation capacities has been substantially increased in comparison to the erstwhile Technology Upgradation Scheme. The main objective of the scheme is for promotion of processing/preservation of agro food products and modernisation/capacity enhancement of food processing units with a view to increasing the level of processing, thereby, reduction of wastage and value addition. Induction of modern technology under the scheme is intended to make a clear difference in both process efficiencies as well as quality of the end product.

4) Creation of Infrastructure for Agro-Processing Clusters

The scheme aims at development of modern infrastructure to encourage entrepreneurs to set up food processing units based on cluster approach. The scheme has two basic components — Basic Enabling Infrastructure (roads, water supply, power supply, drainage, ETP etc) and Core Infrastructure/Common facilities (warehouses, cold storages, IQF, tetra pack, sorting, grading etc). 

5) Creation of Backward and Forward Linkages

It aims to create an effective backward & forward linkage for perishable agri-horti produce through setting up of primary processing centers/collection centers at farm gate, distribution hub and retail outlets at the front end. The scheme is applicable to both perishable horticulture and non-horticulture produce such as: fruits, vegetables, dairy products and fisheries, etc.

6) Food Safety and Quality Assurance Infrastructure

Food products are expected to meet the stringent regulatory specifications to promote exports as well as to restrict low quality food product from entering domestic market. To ensure that food is wholesome, hygienic and healthy, there is a need to have infrastructure for testing of food products, enforce Good Hygiene Practices (GHP) and Good Manufacturing Practices (GMP) at the production level as well as in the entire supply chain of logistics, storage, packaging processes and marketing channel till food products reach the table of consumers. It aims to establish a surveillance system for monitoring the quality and composition of food and analyse the samples received from processing industry and other stakeholders.

7) Human Resources and Institutions

The objective of the scheme is that end product/outcome/findings of R&D work should benefit food processing industry in terms of product and process development, efficient technologies, improved packaging, value addition, etc with commercial value along with standardisation of various factors like additives, colouring agents, preservatives, pesticide residues, chemical contaminants, microbiological contaminants and naturally occurring toxic substances within permissible limits.

8) Operation Greens

Operation Greens scheme was launched in November 2018 in order to stabilise the supply of Tomato, Onion and Potato (TOP) crops and control its price volatility. It aims to enhance value realisation of TOP farmers, reduction in post-harvest losses, price stabilisation for producer and consumers and increase in food processing capacities and value addition. There is a focus on the integrated development of the TOP value chain.

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