Government incentive schemes for small and medium food processing entrepreneurs

The Ministry of Food Processing Industries (MoFPI) is actively encouraging small and medium-scale food processing entrepreneurs to establish or expand their industries through various schemes. These include the Pradhan Mantri Kisan SAMPADA Yojana the Production Linked Incentive Scheme for Food Processing Industries and the PM Formalization of Micro Food Processing Enterprises (PMFME) Scheme.

Under PMKSY sub-schemes, provides primarily credit-linked financial assistance to entrepreneurs with a total allocation of ₹5,520 crore. As of October 31, 2024, the Ministry has approved 41 Mega Food Parks, 399 Cold Chain Projects, 76 Agro-Processing Clusters, 559 Food Processing Units, 61 Backward and Forward Linkage Projects, and 51 Operation Green Projects.

Through the PMFME Scheme, MoFPI also offers financial, technical, and business support for the establishment and upgradation of micro food processing enterprises. This scheme, operational from 2020-21 to 2025-26, has a total allocation of ₹10,000 crore. As of October 31, 2024, assistance has been provided to 1,08,580 micro food processing enterprises.

The Production Linked Incentive Scheme for Food Processing Industries aims to promote global champions in food manufacturing and support Indian food brands in international markets. This six-year scheme, running from 2021-22 to 2026-27, has an allocation of ₹10,900 crore. To date, 171 food processing companies have received assistance under various categories of this scheme.

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