Food Processing in India: A Catalyst for Growth

Context:

Released by the Press Information Bureau on March 28, 2025, this document from the Ministry of Food Processing Industries outlines India’s strides in the food processing sector under the Make in India initiative. It highlights key schemes, infrastructure development, and recent advancements, positioning India as a global leader while empowering farmers and SMEs.

Key Information in Points:

• Industry Transformation: India’s food processing sector is rapidly growing, fueled by its agricultural dominance, rising demand, and government support, aiming for global leadership.
• Agricultural Base: India leads globally in producing fruits, vegetables, millets, tea, food grains, milk, and livestock, forming the backbone of its food processing industry.
• Make in India Priority: Food processing is a key focus, with schemes to attract investment and develop infrastructure like Mega Food Parks.
• Mega Food Parks: These provide utilities and processing facilities in agriculturally rich areas, offering a plug-and-play model for entrepreneurs, recognized under the Harmonized List of Infrastructure Sub-sectors (HLIS).
• Investors Portal: Launched by the Ministry, it offers resources, policies, and incentives, collaborating with Invest India for partnerships and approvals.
• Budget Increase: The Ministry’s 2024-25 budget rose by 30.19% compared to the previous year, reflecting increased investment.
• PM Kisan Sampada Yojana (PMKSY): Approved in May 2017 with Rs. 6,000 crore, extended to March 31, 2026, with Rs. 4,600 crore, focusing on infrastructure and supply chain from farm to retail.
• PMKSY Achievements: As of February 28, 2025, 1,608 projects sanctioned (41 Mega Food Parks, 394 Cold Chains, 75 Agro-processing Clusters, 536 Food Processing Units, 61 Backward/Forward Linkages, 44 Operation Greens), with Rs. 6,198.76 crore disbursed.
• PMKSY Goals: Boosts food processing, enhances farmer income, creates rural jobs, reduces wastage, increases processing levels, and promotes exports.
• PLISFPI Overview: Launched in March 2021 with Rs. 10,900 crore, implemented from 2021-22 to 2026-27, incentivizing four food segments: RTC/RTE foods (including millets), processed fruits/vegetables, marine products, and mozzarella cheese.
• PLISFPI Components: Supports innovative/organic SME products, global branding/marketing, and a millet-based product incentive scheme (PLISMBP).
• PLISFPI Progress: As of February 28, 2025, 171 companies approved, Rs. 1,155.296 crore disbursed (including Rs. 13.266 crore to 20 MSMEs), with Rs. 8,910 crore invested across 213 locations, generating 2.89 lakh jobs by October 31, 2024.
• Branding Incentives: Under PLISFPI, 50% of abroad branding/marketing costs reimbursed (up to 3% of sales or Rs. 50 crore/year), with 73 beneficiaries and a minimum Rs. 5 crore spend over five years.
• PMFME Scheme: Launched in June 2020 with Rs. 10,000 crore (2020-2025, extended to 2025-26), targets 2 lakh micro-enterprises with credit-linked subsidies, adopting One District One Product (ODOP).
• PMFME Features: Includes common infrastructure, seed capital for SHGs, capacity building, and marketing/branding support.
• SME Support: PMKSY, PLISFPI (70 MSMEs enrolled, 40 as contract manufacturers), and PMFME foster innovation, formalization, and competitiveness in SMEs.
• Food Safety Initiative: In March 2025, the Ministry announced funding for 100 new NABL-accredited food testing labs for 2025-26.
• Tomato Production Boost: In January 2025, the Ministry, Punjab Agricultural University, Punjab Agro Industries, and Hindustan Unilever planned to enhance tomato production and paste manufacturing in Punjab.
• World Food India 2024: Held September 19-22 in New Delhi, it showcased innovations across the food value chain, promoting India’s culinary heritage and investment opportunities.
• Sector Impact: Strengthens infrastructure, adds value, empowers SMEs, expands cold chains, boosts exports, reduces wastage, and enhances farmer incomes, aligning with economic growth and sustainability goals.

Key Terms:

• Make in India: Initiative to promote manufacturing and investment in India.
• Mega Food Parks: Infrastructure hubs with processing facilities for food entrepreneurs.
• PM Kisan Sampada Yojana (PMKSY): Scheme for agro-marine processing and cluster development.
• PLISFPI: Production-linked incentive scheme for food processing growth.
• PMFME: Scheme to formalize micro food processing enterprises.
• One District One Product (ODOP): Strategy to promote a unique product per district.
• NABL: National Accreditation Board for Testing and Calibration Laboratories, ensuring lab quality.
• Cold Chain: Temperature-controlled supply chain for perishable goods.