Government Releases Rs 1920 Crore to Boost Food Processing Sector Under PM Kisan Sampada Yojana

The central government has made a significant financial commitment to expand and modernize the food processing sector by releasing Rs 1920 crore under the Pradhan Mantri Kisan Sampada Yojana (PMKSY). This funding was recently approved by the Union Cabinet and forms part of the total Rs 6520 crore allocated for PMKSY during the 15th Finance Commission cycle from 2021-22 to 2025-26.

Out of the Rs 1920 crore, approximately Rs 1000 crore will be dedicated to establishing 50 multi-product food irradiation units and 100 food testing laboratories. These initiatives fall under the component schemes ICCVAI (Integrated Cold Chain and Value Addition Infrastructure) and FSQAI (Food Safety and Quality Assurance Infrastructure), which operate on a demand-based model within PMKSY. The remaining Rs 920 crore will fund various other projects under different components of the scheme during this Finance Commission cycle.

Since its inception, PMKSY has approved a total of 1,601 projects, of which 1,133 are operational or completed. These projects have created a combined processing and preservation capacity of 255.66 lakh metric tonnes per annum. Upon full completion, the projects are expected to attract investments worth Rs 21,803.19 crore, benefit approximately 50.27 lakh farmers, and generate over 7.25 lakh direct and indirect jobs.

Originally launched as the SAMPADA scheme in May 2017 and renamed PMKSY in August 2017, this comprehensive program was designed as per the 14th Finance Commission's recommendations. With an initial government allocation of Rs 6,000 crore aimed at attracting investments totaling Rs 31,400 crore, the scheme has successfully doubled India's processed food exports from US$ 5 billion to US$ 11 billion and increased the share of processed foods in agricultural exports from 14% to 24%.

The recent infusion of funds signals continued government support to strengthen food processing infrastructure, enhance food safety, reduce post-harvest losses, and improve farmers' income through better value realization and expanded market access. This push is expected to propel India toward becoming a global hub for food processing and exports.