On July 31, the Union Cabinet approved a total budget of Rs 6,520 crore for the Pradhan Mantri Kisan Sampada Yojana (PMKSY). This scheme is a Central Sector initiative focused on strengthening India’s food processing sector. The funding will cover the period from 2021-22 to 2025-26, which corresponds with the current 15th Finance Commission cycle.
Out of the total amount, the government has allocated an additional Rs 1,920 crore to support both ongoing and new projects. These projects aim to modernise the food supply chain, reduce food wastage, and improve food quality across the country.
As part of this plan, Rs 1,000 crore will be used to build 50 multi-product Food Irradiation Units. These units are part of the Integrated Cold Chain and Value Addition Infrastructure (ICCVAI) initiative and will help preserve food for longer periods by using advanced technology to eliminate bacteria and pests.
In addition, the government will also set up 100 food testing laboratories across India. These labs will be NABL-accredited (National Accreditation Board for Testing and Calibration Laboratories) and are part of the Food Safety and Quality Assurance Infrastructure (FSQAI) component. Their goal is to make sure the food being processed and sold meets safety standards and is free from harmful substances.
This revised funding is in line with announcements made in the Union Budget and reflects the government’s push to make the food processing industry safer, more efficient, and farmer-friendly.
According to the Ministry of Food Processing Industries (MoFPI), the irradiation units are expected to enhance food preservation capacity by an estimated 20 to 30 lakh metric tonnes annually, depending on the commodities processed. Food irradiation is a proven technology that extends shelf life and ensures microbial safety, which is vital for both domestic and export markets.
Simultaneously, the food testing laboratories will be operated by private players and are designed to offer modern facilities for analysing and certifying food products. “The expansion of quality testing labs will ensure that food reaching the market is not only nutritious but also meets national and international safety standards,” the Ministry stated.
Both ICCVAI and FSQAI components are demand-driven schemes. Eligible applicants will be invited to submit proposals through Expressions of Interest (EOIs). Projects will undergo rigorous evaluation based on the scheme’s eligibility norms before receiving approval.
Launched in 2017, the Pradhan Mantri Kisan Sampada Yojana is an umbrella scheme aimed at creating world-class infrastructure for agro-marine processing and supply chain management. Initially approved for the 14th Finance Commission cycle (2016–2020) with a budget of Rs 6,000 crore under the name SAMPADA (Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters), the scheme was renamed to PMKSY and extended under the 15th Finance Commission till March 31, 2026, with an outlay of Rs 4,600 crore. The newly approved Rs 6,520 crore now supersedes earlier allocations.
PMKSY comprises several component schemes, including:
- Integrated Cold Chain and Value Addition Infrastructure
- Creation/Expansion of Food Processing and Preservation Capacities
- Infrastructure for Agro Processing Clusters
- Food Safety & Quality Assurance Infrastructure
- Human Resources and Institutions
Some earlier components, such as Mega Food Parks, Creation of Backwards and Forward Linkages, and Skill Development and HACCP trainin,g have been discontinued under the current cycle, except for ongoing projects under committed liability provisions.
The government estimates that PMKSY will leverage investments worth Rs 11,095.93 crore, benefit 28,49,945 farmers, and create around 5,44,432 direct and indirect jobs by the end of the current Finance Commission cycle in 2026.
The revamped Pradhan Mantri Kisan Sampada Yojana (PMKSY) stands as yet another example of the Modi government’s unwavering commitment to empowering India’s farmers and transforming the rural economy. The scheme is designed to build a modern, farmer-centric agri-infrastructure that addresses long-standing challenges in India’s agricultural value chain.
Under PMKSY, the government aims to:
- Build world-class infrastructure that connects farmers directly to markets through efficient and modern supply chains, cutting out middlemen and increasing farmers’ profits.
- Drastically reduce post-harvest losses by setting up cold storage and preservation facilities across rural India, ensuring that crops do not rot in the fields and farmers do not suffer unnecessary losses.
- Create large-scale employment opportunities in rural areas by promoting food processing industries, leading to increased income for farming families and supporting allied sectors.
- Improve food safety standards and make Indian agricultural products more competitive in global markets through modern testing and certification labs.
This strategic funding push is widely being hailed as a bold step toward fulfilling Prime Minister Narendra Modi’s vision of doubling farmers’ income and creating a self-reliant agricultural economy driven by value addition and innovation.
Recognising the growing threats posed by climate change and market volatility, this investment in food processing and infrastructure comes at a crucial time. By building resilience through technology and efficient systems, the scheme is not just a policy measure; it is a national mission to secure the future of Bharat’s farmers.
By helping farmers move beyond raw produce and into processing, branding, and exporting, PMKSY is reshaping Indian agriculture from the ground up, making it smarter, more profitable, and globally competitive. This visionary approach reinforces the government’s resolve to build an Atmanirbhar Bharat, starting with the prosperity of its farmers.
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