·PIB

Strengthening Food Processing Sector through MoFPI Schemes: Infrastructure Development and Over 13 Lakh Employment Generated

In this note
  1. At a Glance
  2. Why in the News
  3. Background & Evolution
  4. Core Static Facts
  5. Multi-Dimensional Analysis
  6. Recent Developments (last 12-18 months)
  7. Prelims Hooks
  8. Mains Relevance
  9. Related Topics to Study Next
  10. Common Errors / Trap Areas

1. At a Glance

  • Ministry of Food Processing Industries (MoFPI) runs a triad — PMKSY, PMFME, PLISFPI — to incentivise infrastructure, formalise micro units, and reward scale manufacturing in food processing [1][2].
  • Cumulative outcome: 13+ lakh direct & indirect jobs and 1,000+ infrastructure projects sanctioned across India [3].
  • Why it matters for UPSC: links GS-III themes of food processing, value addition, MSME, agri-marketing, employment and demonstrates Centre's doubling farmers' income delivery instruments.

2. Why in the News

  • PIB release dated 12 March 2026 by MoFPI highlighted that the three flagship schemes — PMKSY (Central Sector), PLISFPI (Central Sector), and PMFME (Centrally Sponsored) — have together driven new food processing units and over 13 lakh employment [1].

3. Background & Evolution

  • 2016–17: SAMPADA launched; rechristened Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) in Aug 2017 as an umbrella scheme [2].
  • 2020 (Atmanirbhar Bharat): PMFME announced (29 June 2020) as a centrally sponsored scheme for the unorganised micro-food-processing segment [2].
  • 2021: PLISFPI approved by Cabinet (Mar 2021) as part of the 13 PLI sectors [2].
  • PMKSY extended for the 15th Finance Commission cycle (till 2025–26) with outlay of ₹4,600 cr (revised; earlier scheme outlay ₹5,520 cr) [2].

4. Core Static Facts

  • Implementing Ministry: Ministry of Food Processing Industries (MoFPI), Govt. of India [1].
  • PMKSY components (7): Mega Food Parks, Integrated Cold Chain, Creation/Expansion of Food Processing & Preservation Capacities (Unit Scheme), Infrastructure for Agro-Processing Clusters, Creation of Backward & Forward Linkages, Food Safety & Quality Assurance Infrastructure, Operation Greens, HRD & Institutions [3].
  • PMFME: Period 2020-21 to 2024-25, outlay ₹10,000 cr; target 2 lakh micro-enterprises via 35% credit-linked subsidy (ceiling ₹10 lakh/unit); 60:40 Centre-State funding (90:10 for NER/Himalayan, 100% for UTs); follows One District One Product (ODOP) approach [2].
  • PLISFPI: Period 2021-22 to 2026-27, outlay ₹10,900 cr; four segments — RTC/RTE foods, processed fruits & vegetables, marine products, mozzarella cheese; plus innovative/organic SME products and branding/marketing abroad [2].
  • PMKSY cumulative approvals (as on ~Jun 2024): 41 Mega Food Parks, 399 Cold Chain projects, 76 Agro-Processing Clusters, 588 Food Processing Units, 61 Backward-Forward Linkages, 52 Operation Greens [3].
  • Employment: 13.09 lakh (direct + indirect) under PMKSY components [3].
  • PMKSY 1,132 projects approved across 36 States/UTs; project cost ₹23,071.29 cr; capacity 252.297 lakh MT/annum; benefit 38+ lakh farmers [4].

5. Multi-Dimensional Analysis

  • Economic: India is the world's largest producer of milk, pulses; 2nd in fruits & vegetables; processing level still low (~10%); PLISFPI targets export competitiveness and import substitution [2].
  • Social: PMFME's ODOP lens empowers SHGs, FPOs, cooperatives; seed capital ₹40,000/member to SHGs aiding women entrepreneurs [2].
  • Administrative / Federalism: PMFME is Centrally Sponsored (60:40), unlike PMKSY/PLISFPI which are Central Sector (100% Centre) — classic Prelims distinction [1][2].
  • Agricultural linkage: Reduces post-harvest losses, integrates farm-gate to retail supply chain, supports doubling farmers' income [3].
  • Strategic / Atmanirbhar: PLISFPI promotes global Indian brands in food; mozzarella inclusion targets HoReCa import substitution [2].

6. Recent Developments (last 12-18 months)

  • 12 Mar 2026 PIB release consolidating MoFPI scheme performance with 13 lakh+ jobs [1].
  • 2024: PMKSY approvals updated to 41 MFPs / 399 cold chains [3].
  • PMFME extended discussions for continuation post-2024-25 cycle [2].

7. Prelims Hooks

  • PMKSY = Central Sector Scheme (100% Centre-funded) [2].
  • PMFME = Centrally Sponsored Scheme with 60:40 Centre-State sharing [2].
  • PMFME credit-linked subsidy = 35% of project cost, max ₹10 lakh [2].
  • PMFME outlay = ₹10,000 cr (2020-21 to 2024-25); target 2 lakh units [2].
  • PLISFPI outlay = ₹10,900 cr (2021-22 to 2026-27) [2].
  • PLISFPI segments: RTC/RTE, Processed F&V, Marine, Mozzarella Cheese [2].
  • PMKSY renamed from SAMPADA in 2017 [2].
  • PMFME launched on 29 June 2020 under Atmanirbhar Bharat [2].
  • ODOP approach is integral to PMFME (not PMKSY) [2].
  • Mega Food Parks approved under PMKSY: 41 [3].
  • Cold Chain projects under PMKSY: 399 [3].
  • Employment generated under PMKSY: 13.09 lakh [3].
  • Operation Greens — originally TOP (Tomato-Onion-Potato), expanded to TOTAL 22 perishables — is a PMKSY sub-scheme [3].
  • Nodal Ministry: MoFPI (not Ministry of Agriculture) [1].

8. Mains Relevance

  • GS-III — Food processing and related industries in India — scope and significance, location, upstream and downstream requirements, supply chain management.
  • GS-III — Issues of buffer stocks and food security; economics of animal-rearing; minor & major crops.
  • Probable stems: 1. "Examine how MoFPI's PMKSY, PMFME and PLISFPI schemes collectively address the structural weaknesses of India's food processing sector." (15M) 2. "PMFME's ODOP approach is a paradigm shift from product-agnostic subsidies to cluster-based formalisation. Discuss." (10M) 3. "Despite India being a leading agri-producer, its food processing share remains low. Critically analyse." (15M)

9. Related Topics to Study Next

  • Operation Greens — sub-scheme of PMKSY, perishables price stabilisation.
  • PM-KISAN & PM-AASHA — complementary farm support architecture.
  • FPOs (10,000 FPO Scheme) — backward linkage to PMFME beneficiaries.
  • APMC reforms / e-NAM — marketing backbone for processed food.
  • FSSAI — regulatory layer on processed food safety.
  • Agri Infrastructure Fund (AIF, ₹1 lakh cr) — sister capex scheme.
  • PLI Scheme (overall 14 sectors) — situate PLISFPI within the larger PLI umbrella.
  • National Food Security Act 2013 — demand-side context.

10. Common Errors / Trap Areas

  • Confusing PMKSY (MoFPI) with Pradhan Mantri Krishi Sinchayee Yojana (also PMKSY) under Ministry of Jal Shakti / Agriculture — same acronym, different schemes.
  • Tagging PMFME as Central Sector — it is Centrally Sponsored (60:40).
  • Assuming ODOP belongs to PMKSY — it is core to PMFME.
  • Stating PLISFPI covers all food products — it covers only four specified segments + SME innovative/organic.
  • Crediting employment numbers to PLISFPI — the 13.09 lakh figure pertains to PMKSY components [3].

Sources

  1. 1Strengthening Food Processing Sector through MoFPI Schemespib.gov.in · tier 1
  2. 2Schemes being implemented by MoFPI for development of food processing sectorpib.gov.in · tier 1
  3. 3MoFPI approved 41 Mega Food Parks, 399 Cold Chain projects, 76 APCs, 588 FPUs under PMKSYpib.gov.in · tier 1
  4. 41132 projects approved under PMKSY in 36 States/UTspib.gov.in · tier 1

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