PMKSY Gets ₹6,520 Crore Boost To Strengthen India’s Food Processing Sector

The Union Cabinet has approved a total outlay of ₹6,520 crore for the Pradhan Mantri Kisan Sampada Yojana (PMKSY) for the 15th Finance Commission period (2021–22 to 2025–26), significantly enhancing India’s food processing capacity.

This includes an additional ₹1,920 crore to support new infrastructure projects across the country.

The PMKSY is a Central Sector Scheme designed to modernise and expand the food processing industry.

The recent funding decision reflects the government’s focus on reducing post-harvest losses, improving food safety, and supporting rural incomes through value addition.

As part of the approved outlay, the government will allocate ₹1,000 crore to establish 50 multi-product food irradiation units under the Integrated Cold Chain and Value Addition Infrastructure (ICCVAI) scheme.

These units aim to extend the shelf life of perishable goods and cut down wastage.

The Cabinet noted that these units could create 20 to 30 lakh metric tonnes (LMT) of food preservation capacity annually, depending on the products irradiated.

This development will significantly strengthen India’s post-harvest management efforts.

In addition, the scheme will support the establishment of 100 NABL-accredited food testing laboratories (FTLs) under the Food Safety and Quality Assurance Infrastructure (FSQAI) component.

Private players will build these labs to ensure the availability of safe and standardised food products across markets.

Transparent and Demand-Driven Implementation

The government has sanctioned an additional ₹920 crore to support projects under various PMKSY components during the current Finance Commission cycle.

It will invite proposals through the Expression of Interest (EOI) route under a demand-driven model.

Authorities will evaluate and approve eligible proposals in accordance with the existing scheme guidelines.

According to the Cabinet, these initiatives will not only enhance food security but also create new jobs, promote entrepreneurship, and provide critical infrastructure for small and medium agri-businesses.

The integration of cold chain networks and food safety labs is expected to strengthen India’s overall food value chain.

The government’s decision reflects a strategic push to modernise agricultural output and improve market access for farmers.

With better storage and safety infrastructure, India aims to become a global leader in processed food exports while ensuring domestic food quality standards.

These developments under PMKSY underscore the Modi government’s commitment to building a more resilient, value-driven, and inclusive agri-food system.

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