1,256 Food Processing Projects Completed Under PMKSY, Enhancing Cold Chain Infrastructure, Value Addition and Supply Chains for Agriculture and Hospitality

The Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) continues to play a pivotal role in modernising India’s food processing sector, with the Ministry of Food Processing Industries (MoFPI) announcing that 1,256 projects have been completed across the country as of 30 June 2026.

According to information shared by Union Minister for Food Processing Industries Shri Chirag Paswan in the Lok Sabha, the scheme has benefited 37.76 lakh farmers, created 294.21 lakh metric tonnes (LMT) per annum of food processing and preservation capacity, and generated 9.16 lakh employment opportunities, strengthening India’s farm-to-market ecosystem.

Key Highlights

• 1,735 projects approved under PM Kisan SAMPADA Yojana (PMKSY).
• 1,256 projects completed across India.
• 37.76 lakh farmers benefiting from the scheme.
• 294.21 LMT per annum of food processing and preservation capacity created.
• 9.16 lakh employment opportunities generated.
• PMKSY supports modern food processing, cold chain and value addition infrastructure.
• Enhanced financial assistance available for Farmer Producer Organisations (FPOs).
• Additional support provided through the PMFME Scheme for micro food processing enterprises.
• No PMKSY project has been sanctioned in Bharatpur Parliamentary Constituency as of 30 June 2026.

Modernising India’s Food Processing Infrastructure

Implemented by the Ministry of Food Processing Industries, PMKSY is a Central Sector umbrella scheme designed to strengthen the country’s food processing ecosystem by encouraging investments in:

• Food processing infrastructure.
• Cold chain and preservation facilities.
• Value addition of agricultural produce.
• Supply chain efficiency.
• Employment generation.
• Better market access for farmers.

The scheme aims to reduce post-harvest losses while improving farmers’ income through stronger processing and marketing infrastructure.

Demand-Driven and Merit-Based Scheme

Unlike state allocation-based programmes, PMKSY follows a demand-driven approach.

Projects are selected through:

• Expression of Interest (EoI) applications.
• Merit-based evaluation.
• Eligibility scrutiny under scheme guidelines.
• Approval based on fund availability.

The Ministry clarified that funds are not allocated on a state-wise basis, ensuring eligible projects from across India compete on merit.

Greater Support for Farmer Producer Organisations

To strengthen farmer participation in food processing, PMKSY offers enhanced support to Farmer Producer Organisations (FPOs) through:

• Relaxed eligibility criteria.
• Lower equity contribution requirements.
• Reduced minimum bank loan requirements.
• Lower net-worth requirements.

Additionally, under the Prime Minister Formalisation of Micro Food Processing Enterprises (PMFME) scheme, FPOs can access:

• 35% credit-linked subsidy up to ₹10 lakh for setting up or upgrading micro food processing units.
• 35% grant up to ₹3 crore for establishing common infrastructure.
• Up to 50% financial assistance for branding and marketing initiatives undertaken by FPO groups.

These measures are intended to improve farmer-producer linkages and encourage rural entrepreneurship.

Hospitality, Travel & Tourism Impact

PMKSY’s continued expansion has significant implications for India’s hospitality, food service and tourism industries.

Stronger Farm-to-Hotel Supply Chains

Modern food processing and cold chain infrastructure ensure hotels, restaurants, airlines, cruise operators and catering companies receive higher-quality agricultural products with improved consistency and reduced wastage.

Growth of Culinary Tourism

Improved processing and preservation facilities help commercialise regional food products, allowing destinations to promote authentic local cuisine and strengthen culinary tourism experiences.

Benefits for HoReCa Businesses

Hotels, restaurants, cafés and cloud kitchens gain access to a wider range of processed and value-added food products, improving operational efficiency and menu innovation.

Support for Rural Tourism

Enhanced incomes for farmers and stronger rural food enterprises can contribute to the growth of agri-tourism, farm experiences and local food trails that increasingly attract domestic and international travellers.

Improved Food Safety

Modern processing infrastructure supports better quality standards, helping hospitality businesses meet evolving consumer expectations for food safety and traceability.

Why It Matters

The continued progress under the Pradhan Mantri Kisan SAMPADA Yojana reinforces the government’s focus on building a resilient food processing ecosystem that benefits farmers, food manufacturers and consumers alike. By expanding processing capacity, reducing post-harvest losses and strengthening value addition, PMKSY is creating long-term opportunities for India’s agriculture, hospitality and tourism sectors.

For hotels, restaurants and travel businesses, improved food infrastructure translates into stronger supply chains, better-quality ingredients and greater opportunities to showcase India’s diverse culinary heritage to visitors from around the world.