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Cabinet Approves ₹6,520 crore for PM Kisan Sampada Yojana

The Union Cabinet raised the budget allocation for the flagship scheme Pradhan Mantri Kisan Sampada Yojana (PMKSY) by Rs 1,920 crore, raising the total to Rs 6,520 crore to enhance the food processing industry

Deeksha Upadhyay 01 August 2025 17:41

Cabinet Approves ₹6,520 crore for PM Kisan Sampada Yojana

Out of the total expenditure, ₹1,000 crore has been allocated for the establishment of 50 Multi-Product Food Irradiation Units as part of the Integrated Cold Chain and Value Addition Infrastructure (ICCVAI) scheme.

And 100 NABL-accredited laboratories for food testing within the Food Safety and Quality Assurance Infrastructure (FSQAI) framework.

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These efforts are consistent with statements made in the Union Budget.

Pradhan Mantri Kisan Sampada Yojana (PMKSY)

SAMPADA - Scheme for Agro-marine Processing and Development of Agro-processing Clusters is a comprehensive central sector initiative sanctioned in 2017.

Ministry: The Ministry of Food Processing Industries (MoFPI).

Main Objectives:

A complete solution for contemporary infrastructure and effective supply chain management, spanning from farm gate to retail store.

Aims to enhance the food processing industry in India.

Assists farmers in achieving improved profits and promotes the doubling of their income.

Generates substantial job opportunities, particularly in rural regions.

Minimizes the loss of farm products.

Enhances the processing stages of food items.

Boosts shipments of manufactured food products.

What does Food Processing entail?

Food processing refers to the application of methods and techniques that utilize equipment, energy, and tools to convert agricultural products like grains, meats, vegetables, fruits, and milk into food ingredients or processed food items.

This may encompass various activities, including: Preparation, Cooking, Preservation, Packaging, and Fortification.

Formulations and processing methods are scientifically designed to provide food that is safe, removing any harmful chemical contaminants and microorganisms that may lead to food-borne illnesses.

Food Processing Sector in India

share-of-processed-food-exports-in-agricultural-food-exports

Causes for the Sector's Expansion: India is the top producer of milk and spices and ranks among the foremost producers of fruits, vegetables, poultry, and meat.

India possesses various natural resources that give it a competitive edge in the food processing industry.

The Way Ahead

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India's food processing industry has enormous growth and sustainability potential.

India is now a major hub for food processing worldwide thanks to the development of cold chain facilities, financial incentives, and skill-development programs.

With an emphasis on entrepreneurship, sustainability, and innovation, the industry is expected to increase exports, create jobs, lower food waste, and raise farmer incomes.

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