1,256 Food Processing Projects Operational Under PM Kisan SAMPADA Yojana, Benefiting Nearly 38 Lakh Farmers and Strengthening India’s Farm-to-Fork Supply Chain

India’s food processing sector continues to receive a major infrastructure boost through the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), with the Ministry of Food Processing Industries (MoFPI) reporting significant progress in creating modern food processing, cold chain and preservation infrastructure across the country.

According to information shared by Union Minister for Food Processing Industries Shri Chirag Paswan in the Lok Sabha, 1,256 projects are currently operational under PMKSY, benefiting 37.76 lakh farmers while creating 294.21 lakh metric tonnes (LMT) per annum of food processing and preservation capacity. The scheme aims to reduce post-harvest losses, improve food quality, enhance value addition and strengthen India’s food supply chain from farm gate to retail.

Key Highlights

• 1,735 projects approved under PMKSY since inception.
• 1,256 projects operational as of 30 June 2026.
• 37.76 lakh farmers benefiting from the scheme.
• 294.21 LMT annual food processing and preservation capacity created.
• ₹33,163 crore total project investment approved.
• ₹9,258.58 crore grants sanctioned under PMKSY.
• ₹6,914.93 crore grants released.
• PMKSY promotes cold chain, food processing, preservation, food safety and export competitiveness.
• Enhanced financial support available for Farmer Producer Organisations (FPOs).
• PMFME scheme offers additional support for micro food processing enterprises and common infrastructure.

Modern Infrastructure Strengthening India’s Food Processing Ecosystem

Launched in 2017-18, the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) is a flagship central sector scheme designed to modernise India’s food processing industry through integrated infrastructure development across the agricultural value chain.

Its primary objectives include:

• Developing integrated food processing infrastructure from farm gate to retail.
• Promoting value addition to agricultural produce.
• Reducing post-harvest losses.
• Expanding cold chain and preservation infrastructure.
• Strengthening food safety and quality assurance.
• Encouraging private sector investment.
• Improving farmers’ market linkages and income.
• Enhancing export competitiveness of processed food products.

Cold Chain and Processing Capacity Continue to Expand

The largest investments under PMKSY have been directed towards building critical infrastructure such as:

• Integrated Cold Chain & Value Addition projects.
• Food Processing & Preservation facilities.
• Mega Food Parks.
• Agro Processing Clusters.
• Food Safety & Quality Assurance laboratories.
• Backward and Forward Linkage infrastructure.

Collectively, these projects have improved supply chain efficiency, reduced wastage of perishable produce and increased processing capacity across the country.

Support for Farmer Producer Organisations (FPOs)

Recognising the growing role of FPOs in strengthening agricultural markets, PMKSY provides enhanced financial assistance by:

• Offering relaxed net-worth requirements.
• Supporting projects with loan assistance.
• Improving farmer-producer market linkages.

In addition, under the PM Formalisation of Micro Food Processing Enterprises (PMFME) scheme, FPOs are eligible for:

• 35% credit-linked subsidy up to ₹10 lakh for micro food processing units.
• 35% grant up to ₹3 crore for common infrastructure.
• Up to 50% grant for branding and marketing support at the state and regional levels.

Investment and Employment Generation

During the last three years alone, PMKSY has approved 362 projects, of which 69 have become operational, leveraging private investments of over ₹5,443 crore and generating employment for more than 2.43 lakh people across multiple states.

States including Tamil Nadu, Maharashtra, Gujarat, Karnataka, Telangana, Kerala and Andhra Pradesh have attracted significant investments in food processing infrastructure.

Hospitality, Travel & Tourism Impact

The continued expansion of food processing infrastructure under PMKSY has direct implications for India’s hospitality and tourism ecosystem.

Reliable Farm-to-Hotel Supply Chains

Improved cold chain and food preservation infrastructure ensures hotels, restaurants, airlines, cruise operators and institutional kitchens have access to higher-quality raw materials with reduced spoilage and consistent year-round availability.

Growth of Culinary Tourism

Greater processing capacity enables regional food producers to commercialise traditional products, supporting culinary tourism and promoting India’s diverse food heritage across domestic and international markets.

Boost for HoReCa Industry

Restaurants, cafés, cloud kitchens, catering companies and food service operators benefit from improved access to processed ingredients, frozen foods, ready-to-cook products and value-added agricultural produce.

Food Safety and Quality Enhancement

Investments in food testing and quality assurance strengthen compliance with food safety standards, an increasingly important factor for premium hospitality brands and international travellers.

Export Opportunities

Enhanced processing infrastructure supports India’s processed food exports, helping promote Indian cuisine and specialty products globally while strengthening hospitality-linked food supply chains.

Why It Matters

The Pradhan Mantri Kisan SAMPADA Yojana continues to play a pivotal role in modernising India’s food processing industry by creating integrated infrastructure, reducing post-harvest losses and strengthening value chains from farms to consumers. Beyond supporting farmers and food manufacturers, the scheme is also enhancing the country’s hospitality, food service and tourism sectors through stronger cold chains, improved food quality and more resilient supply networks.

For hotels, restaurants, travel businesses and food entrepreneurs, the continued expansion of PMKSY infrastructure signals better sourcing opportunities, improved food safety and greater potential to showcase India’s rich culinary diversity to domestic and international visitors.