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Govt boosts food processing push with Rs 6,520 crore outlay under PMKSY to double farmers’ income

After being rebranded from the SAMPADA program, PMKSY was introduced in 2017 and has since become a major force behind the expansion of food processing in India. 1,601 projects have been approved as of June 2025, 1,133 of which are operational or finished.

These projects are anticipated to draw investments totaling Rs 21,803 crore and have produced an annual processing and preservation capacity of 255.66 lakh metric tonnes
These projects are anticipated to draw investments totaling Rs 21,803 crore and have produced an annual processing and preservation capacity of 255.66 lakh metric tonnes Credit:PTI
| Updated on: Aug 07, 2025 | 06:00 PM
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New Delhi: The central government has authorised Rs 6,520 crore for the Pradhan Mantri Kisan Sampada Yojana (PMKSY) under the 15th Finance Commission cycle (2021–22 to 2025–26) in a huge effort to change India’s agri-food ecosystem and double farmers’ income. The action intends to improve value addition in the food processing industry, decrease post-harvest losses and improve infrastructure.

After being rebranded from the SAMPADA program, PMKSY was introduced in 2017 and has since become a major force behind the expansion of food processing in India. 1,601 projects have been approved as of June 2025, 1,133 of which are operational or finished. These projects are anticipated to draw investments totaling Rs 21,803 crore and have produced an annual processing and preservation capacity of 255.66 lakh metric tonnes. Around 50.27 lakh farmers stand to benefit, and the scheme has generated over 7.25 lakh man-days of employment.

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Focus on inclusive infrastructure

The latest outlay includes Rs 1,000 crore for 50 Multi-Product Food Irradiation Units under the Integrated Cold Chain and Value Addition Infrastructure (ICCVAI) and 100 NABL-accredited Food Testing Labs under the Food Safety and Quality Assurance Infrastructure (FSQAI). An additional Rs 920 crore is allocated for other ongoing PMKSY components.

With particular attention to the welfare of SC/ST, the government is concentrating on developing contemporary supply chain infrastructure, particularly in challenging areas. Support for cold chains, agro-processing clusters, preservation units, testing labs, and skill development are among the programs offered by PMKSY.

Expanding perishables, boosting returns

An extra component, Operation Greens, was introduced in 2018 to stabilise the prices of perishable items. Originally centred around Tomato, Onion, and Potato (TOP), it now encompasses 22 perishables, including shrimp, green peas, cauliflower, mango and banana. With a contribution of 7.93 per cent to manufacturing and 9.46 per cent to agriculture, the food processing industry made up 1.39 percent of India's GVA in 2023–2024.

The sector's GVA increased from Rs 1.3 lakh crore in 2013–14 to Rs 2.24 lakh crore in 2023–24. PMKSY is assisting farmers in obtaining higher returns, cutting waste, enhancing food quality, and bolstering India's export potential by constructing infrastructure from the farm gate to the retail outlet.

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