Government approves 32 projects under Pradhan Mantri Kisan Sampada Yojana

The Union Government has approved 32 projects in the food processing sector under Pradhan Mantri Kisan Sampada Yojana (PMKSY). The projects will be spread across 17 states.

The government has earmarked funds worth Rs 406 crores for the projects. They were approved during the meeting of the Inter-Ministerial Approval Committee, chaired by Food Processing Minister Harsimrat Kaur Badal in New Delhi on February 26, 2020.

The main focus area of the projects is to boost employment opportunities in rural areas and create direct and indirect employment for about 15000 people.

Key Highlights

The government has sanctioned 32 projects under the unit scheme of PMKSY of Ministry of Food Processing Industries. The new projects will cover 17 states with an investment worth Rs 406 crore.

The projects aim to create employment opportunities and direct and indirect employment for approximately 15000 people in the rural areas.

The main focus area will be creating more processing and preservation capacities and expansion and modernizing the existing food processing units.

This will be undertaken to increase the level of processing, resulting in value addition and enhancing the shelf life of the product and reduce wastage. 

What is Pradhan Mantri Kisan Sampada Yojana (PMKSY)?

The PMKSY scheme aims to create processing and preservation capacities and modernise existing food processing units to increase the quality of processing and reduce wastage. The introduction of modern processing techniques is expected to increase the shelf-life of the processed food or agricultural produce. It will ensure steady income to the farmers, reducing farmer distress.

The implementation period of the PMKSY scheme is 2016-20 and it has a total outlay of Rs 6,000 crore. Overall, the scheme has seven component schemes:

1. Mega Food Parks

2. Integrated Cold Chain and Value Addition Infrastructure

3. Infrastructure for Agro-Processing Clusters

4. Creation of Backward and Forward Linkages

5. Creation/Expansion of Food Processing and Preservation Capacities

6. Food Safety and Quality Assurance Infrastructure

7. Human Resources and Institutions

Importance of Food Processing

Food processing plays an important role in linking Indian farmers to consumers in domestic and international markets. The Food processing industry links the farmers with the government as well as the unemployed youth. The government is currently making all efforts to encourage investment in food procession. It has approved several proposals for foreign collaborations and joint ventures in the food sector.


The Indian food sector has emerged as a high-profit and growth sector due to its immense value addition potential, especially within the food processing industry as it is said to have Compound Annual Growth Rate(CAGR) of approximately 8 percent in the last five years.

The approved projects are currently running successfully across India, covering over 100 agro-climatic zones. 

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

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