Food Processing Drive: 1.45 Lakh Projects Sanctioned Under MoFPI to Boost Rural Economy and Support Farmers

The Government of India is making major efforts to grow the food processing industry and improve the rural economy. The Ministry of Food Processing Industries (MoFPI) has approved more than 1.45 lakh projects under various schemes. These are focused on helping farmers, reducing food waste, improving storage and processing, and creating jobs in villages.

Government Schemes Transforming the Sector

Minister of State for Food Processing Industries, Ravneet Singh, informed the Rajya Sabha on 1st August that several central schemes are playing a key role in developing the food processing sector. Under the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), 1,134 projects have been approved by June 30, 2025. This includes Mega Food Parks and Cold Chain projects, which help in safe storage and transport of food.

The Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) scheme has seen huge success, with 1,44,517 proposals approved so far. This scheme supports small food businesses by giving them training, equipment, and financial support. Under the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), 170 proposals have been approved to promote large-scale food processing and export.

PLISFPI Scheme to Boost India’s Global Role

The PLISFPI scheme is being implemented from 2021-22 to 2026-27 with a budget of ₹10,900 crore. It encourages food companies to produce high-quality products using modern technology and compete globally. This will help increase exports and improve the quality of food items made in India. To promote international partnerships and investments, the ministry has also organized three editions of World Food India in 2017, 2023, and 2024. These events bring together global investors, food companies, and innovators to explore business opportunities in India’s food processing sector.

Special Focus on Kushinagar District

In Kushinagar district of Uttar Pradesh, 261 projects have been approved under the PMFME scheme. The district has also been selected for a Banana Cluster under the Operation Greens component of PMKSY. Banana has been declared the One District One Product (ODOP) for the area, meaning extra attention is being given to improving banana farming, storage, and marketing. These steps are expected to help farmers increase their income by reducing waste, improving product quality, and ensuring better prices.

Infrastructure Support for Better Storage and Transport

To make these plans successful, MoFPI is providing financial help through grants and subsidies. These are used to set up infrastructure like cold storages, refrigerated transport, warehouses with controlled temperatures, frozen storage units, and irradiation facilities. All of these help in keeping food fresh for a longer time and reducing the losses that happen after harvesting.

Building a Stronger Rural Economy

With more than 1.45 lakh projects approved under different schemes, the government is giving a strong boost to the food processing sector. These efforts will not only support farmers and small businesses but also create more job opportunities in villages. The overall aim is to reduce food wastage, improve income for farmers, and make India a global leader in food production and processing.

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