Recently, the government has approved as many as 32 projects under the Pradhan Mantri Kisan Sampada Yojana (PMKSY). These projects have been sanctioned in the food processing sector.

PMKSY is an umbrella scheme launched in 2017 which aims to create modern infrastructure for farmer’s benefits and increasing efficiency along with well-planned supply chain management from farm gate to retail outlet. It aims at developing the food-processing sector by equipping it with modern infrastructure, food preservation, storing capacities.

As the food-processing sector due to high scope of value addition at every stage of processing which also makes it a high-profit yielding sector. This scheme has tremendous potential of increasing farmers’ incomes. It will also help in the creation of jobs, thus providing employment to rural youth directly or indirectly.

It will give a boost to micro, small and medium scale enterprises involved in food processing at a small scale.

It will provide the consumers with processed safe food at cheap rates. It is also aimed at the reduction of food wastages as well as increasing the level of food processing and also increasing India’s ability to export food products. India is already a self-sufficient country in the production of many agricultural items. It is also among the largest producers of many such agricultural products.

Therefore, if exports are increased, especially of processed food items which have more value than the raw produce and also since the last five years, the Compound Annual Growth Rate (CAGR) has been 8%, India has a lot to gain from the international market then. Also, food processing helps in linking consumers, markets with farmers. PMKSY is one such scheme which will provide India to achieve this goal by upgrading infrastructure for better processing of such items.

It is predicted that the processed food market will grow at a CAGR of 14.6 percent from $ 322 bn in 2016 to $ 543 bn by 2020.


The main aims of the scheme-


It aims at developing mega food parks or individual units equipped with the latest technology, modern infrastructure for food processing including produces from fisheries, dairy sector, etc. It will be established with sustainable supply chains for raw materials. Secondly, to create a solid supply-chain for the final products. Also, it aims to complement the losses after harvests by providing financial assistance to affected farmers and also by setting up cold chains, preservation and arrest any breakage in farmer to consumer/ market linkage.


The schemes to be implemented under it are-

  • Creation of Mega food parks.
  • Cold Chain and Value Addition Infrastructure
  • Creation/ Expansion of Food Processing/ Preservation Capacities (Unit Scheme)
  • Infrastructure for Agro-processing Clusters
  • Creation of Backward and Forward Linkages
  • Food Safety and Quality Assurance Infrastructure
  • Human Resources and Institutions


Source- Official website, AIR

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