The Union Cabinet has approved a total outlay of ₹6,520 crore for the Pradhan Mantri Kisan Sampada Yojana (PMKSY) during the 15th Finance Commission Cycle. The approval includes ₹1,000 crore for 50 multi-product food irradiation units and 100 NABL-accredited food testing labs. The units are expected to create food preservation capacity of 20-30 lakh metric tonnes per year.
The Union has approved a substantial outlay of ₹6,520 crore for the continuation of the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), a flagship scheme under the Ministry of Food Processing Industries (Mope). The allocation will support the scheme from 2021–22 to 2025–26 and aims to strengthen India’s food processing ecosystem, enhance food safety standards, and develop modern Agri-infrastructure.
About PMKSY
The Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) was launched in 2017 to create a robust framework for food processing by integrating supply chains from farm to fork. It includes sub-schemes like Mega Food Parks, Integrated Cold Chain and Value Addition Infrastructure, Argo-Processing Clusters, and Backward & Forward Linkages. This scheme has been pivotal in reducing post-harvest losses and generating rural employment. (Infrastructure).
Objectives of the ₹6,520 Cr Allocation
The newly approved funding will focus on:
- Food Safety & Quality Assurance through upgraded infrastructure and testing labs
- Cold Chain Expansion to reduce spoilage and increase farmer income
- Support for MSMEs in food processing through technology and capital assistance
- Capacity Building via skill development, training, and R&D initiatives
This investment aligns with India’s commitment to doubling farmers’ income and improving food security through sustainable and inclusive growth. Its objective is to enhance the level of food processing in India and to promote value addition in the agri-food sector. (PMKSY)
Expected Impact on Food Infrastructure
The funding will support the creation of 22 Mega Food Parks, 298 cold chain projects, and protection of perishable produce through modern preservation methods. It will also help reduce food wastage, which has been a persistent challenge in India. The infrastructure boost will lead to greater value addition in agricultural products, encouraging farmers to shift from subsistence to market-oriented farming practices. This complements ongoing efforts under the PM Gati Shakti National Master Plan to build integrated logistics and Agri supply chains.
Benefits for Farmers and Rural Economy
With increased cold storage capacity and processing units, farmers will gain direct market access and fair pricing, reducing dependency on middlemen. Argo-processing clusters will create rural employment opportunities and boost entrepreneurship, especially for women and small-scale producers. Financial incentives under PMKSY will further encourage private investment and public-private partnerships (PPPs).
Alignment with National Priorities
The approval reinforces the government’s focus on Atmanirbhar Bharat by encouraging domestic food production and processing. It also complements other agricultural reforms, such as the Digital Agriculture Mission, enemy platform, and the PM Formalisation of Micro Food Processing Enterprises (PMFME) scheme. These integrated initiatives aim to transform India into a global food hub.
Outlook
The infusion of ₹6,520 crore into PMKSY marks a strategic push toward modernising India’s food systems. By strengthening food safety mechanisms, processing capabilities, and rural infrastructure, the scheme promises to boost the agriculture sector’s productivity and competitiveness. Its continued implementation will play a critical role in achieving long-term food security, reducing imports, and enhancing export readiness of India’s processed food industry.
q1. What is PMKSY?
PMKSY (Pradhan Mantri Kisan SAMPADA Yojana) is a government scheme to promote food processing, reduce waste, and improve Agri-infrastructure.
q2. How much funding has been approved for PMKSY?
The Union Cabinet approved ₹6,520 crore for PMKSY for the period 2021–22 to 2025–26.
q3. What are the main components of PMKSY?
Key components include Mega Food Parks, Cold Chain, Argo-Processing Clusters, and Food Testing Labs.
q4. How will farmers benefit from this scheme?
Farmers will gain access to better storage, market linkages, and higher income through value addition and reduced post-harvest losses.
q5. Who implements PMKSY?
The scheme is implemented by the Ministry of Food Processing Industries (MoFPI).
