UPSC Prelims Practice Questions — Status and Progress of Food Processing Sector

Q1. Among the flagship schemes administered by the Ministry of Food Processing Industries, which one has the largest financial outlay?

  • A. Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)
  • B. Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME)
  • C. Pradhan Mantri Kisan SAMPADA Yojana (PMKSY)
  • D. Mega Food Park Scheme

Q2. With reference to the component schemes implemented under the umbrella Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), consider the following: 1. Integrated Cold Chain and Value Addition Infrastructure 2. Agro Processing Clusters 3. Production Linked Incentive Scheme for Food Processing Industry 4. Operation Greens Which of the above is/are NOT correctly identified as a component scheme of PMKSY?

  1. Integrated Cold Chain and Value Addition Infrastructure
  2. Agro Processing Clusters
  3. Production Linked Incentive Scheme for Food Processing Industry
  4. Operation Greens
  • A. 1 and 2
  • B. 2 and 4
  • C. 1, 3 and 4
  • D. 3 only

Q3. With reference to the evolution of India's food processing policy, consider the following statements: 1. The Ministry of Food Processing Industries was created in 1988. 2. The acronym SAMPADA expands to 'Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters'. 3. The Mega Food Park Scheme and the Integrated Cold Chain Scheme were launched in 2008. 4. The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme was launched in 2016-17. Which of the statements given above are correct?

  1. The Ministry of Food Processing Industries was created in 1988.
  2. The acronym SAMPADA expands to 'Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters'.
  3. The Mega Food Park Scheme and the Integrated Cold Chain Scheme were launched in 2008.
  4. The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme was launched in 2016-17.
  • A. 1, 2 and 3
  • B. 1 and 4 only
  • C. 2, 3 and 4
  • D. 1, 2, 3 and 4

Q4. Since which period has the Ministry of Food Processing Industries been implementing the restructured umbrella scheme Pradhan Mantri Kisan SAMPADA Yojana (PMKSY)?

  • A. 2016-17
  • B. 2008-09
  • C. 2020-21
  • D. 2021-22

Q5. In the 2025 Union Cabinet approval for PMKSY, Rs.1,000 crore was earmarked to support the setting up of how many Multi Product Food Irradiation Units under the Integrated Cold Chain and Value Addition Infrastructure component?

  • A. 50
  • B. 100
  • C. 25
  • D. 75

Q6. The 2025 Union Cabinet approval of a total outlay of Rs.6,520 crore for PMKSY was sanctioned for which Finance Commission cycle?

  • A. 15th Finance Commission cycle (2021-22 to 2025-26)
  • B. 14th Finance Commission cycle (2016-17 to 2019-20)
  • C. 16th Finance Commission cycle (2026-27 to 2030-31)
  • D. 15th Finance Commission cycle (2020-21 to 2024-25)

Q7. The official data on Gross Value Added, FDI inflow and the share of processed food in agri-exports for the food processing sector is compiled and released by which Ministry?

  • A. Ministry of Food Processing Industries
  • B. Ministry of Agriculture and Farmers Welfare
  • C. Ministry of Commerce and Industry
  • D. Ministry of Consumer Affairs, Food and Public Distribution

Q8. With reference to the recent performance of India's food processing sector, consider the following statements: 1. The Gross Value Added in food processing rose to Rs.2.24 lakh crore in 2023-24 (1st revised estimates). 2. Cumulative FDI inflow into the sector from 2014-15 to 2024-25 was USD 7.33 billion. 3. The share of processed food in agri-exports rose to 20.4% in 2024-25. 4. The average annual growth rate of the food processing sector over the last nine years was 6.06%. Which of the statements given above are correctly identified?

  1. The Gross Value Added in food processing rose to Rs.2.24 lakh crore in 2023-24 (1st revised estimates).
  2. Cumulative FDI inflow into the sector from 2014-15 to 2024-25 was USD 7.33 billion.
  3. The share of processed food in agri-exports rose to 20.4% in 2024-25.
  4. The average annual growth rate of the food processing sector over the last nine years was 6.06%.
  • A. 1, 2 and 3
  • B. 1, 2 and 4
  • C. 3 and 4 only
  • D. 1, 2, 3 and 4

Q9. With reference to the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme, consider the following statements: 1. It adopts the One District One Product (ODOP) approach. 2. Individual micro enterprises receive a credit-linked capital subsidy of 35% of the eligible project cost, subject to a ceiling of Rs.10 lakh. 3. Members of Self Help Groups are supported with seed capital of Rs.40,000 per member. 4. It was launched under the Aatmanirbhar Bharat Abhiyan with an outlay of Rs.6,520 crore. Which of the above is/are NOT correct?

  1. It adopts the One District One Product (ODOP) approach.
  2. Individual micro enterprises receive a credit-linked capital subsidy of 35% of the eligible project cost, subject to a ceiling of Rs.10 lakh.
  3. Members of Self Help Groups are supported with seed capital of Rs.40,000 per member.
  4. It was launched under the Aatmanirbhar Bharat Abhiyan with an outlay of Rs.6,520 crore.
  • A. 1 and 3
  • B. 2 and 4
  • C. 1, 2 and 3
  • D. 4 only

Q10. The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme is primarily designed to formalise which category of food processing enterprises?

  • A. Unorganised individual micro food processing enterprises
  • B. Large export-oriented food manufacturing champions
  • C. Medium-scale organised food processing units
  • D. Mega Food Parks and their anchor units

Q11. How many Mega Food Parks have been sanctioned under the corresponding component scheme of PMKSY across the country?

  • A. 41
  • B. 22
  • C. 75
  • D. 60

Q12. With reference to the food processing sector's standing within Indian manufacturing, consider the following statements: 1. It is the largest employer within the registered/organised manufacturing sector, with an employment share of 12.83%. 2. Over the last nine years its average annual growth rate of 6.55% was higher than the 6.06% recorded by overall manufacturing. 3. Its 12.83% employment share is drawn from the Periodic Labour Force Survey. Which of the statements given above are correct?

  1. It is the largest employer within the registered/organised manufacturing sector, with an employment share of 12.83%.
  2. Over the last nine years its average annual growth rate of 6.55% was higher than the 6.06% recorded by overall manufacturing.
  3. Its 12.83% employment share is drawn from the Periodic Labour Force Survey.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3