Archive · 17 Jan 2026
India Considers ₹28,000 Crore for Food Processing Schemes
The Indian government is thinking about spending ₹28,000 crore over the next five years to help farmers with food processing.
This money will go to two big programs: one helps small food businesses grow and get better technology, and the other helps build things like cold storage and food testing labs.
The goal is to make farming more profitable and create jobs.
The government wants to connect farmers to bigger markets so they can sell their products for better prices.
They also updated the rules for small businesses, so more can get help.
Experts say this is a good start, but the government needs to make sure farmers are really connected to these markets for the plan to work well.
Government proposes ₹28,000 crore for food processing schemes over five years.
Funds allocated to PMFME (₹15,000 crore) and PMKSY (₹13,000 crore).
PMFME supports micro food processing units with credit-linked subsidies and technology upgrades.
PMKSY focuses on modern infrastructure like cold chains and agro-processing clusters.
Agriculture contributes 18% to India's GDP, employing 46% of the workforce.
- Who
- Indian government and farmers
- What
- Proposed allocation of ₹28,000 crore for food processing schemes
- When
- Upcoming Union budget for FY27
- Where
- India
- Why
- To boost value addition, reduce post-harvest losses, and improve farmers’ incomes
- Total Proposed Allocation
- ₹28,000 crore over five years
- PMFME Allocation
- ₹15,000 crore
- PMKSY Allocation
- ₹13,000 crore
- PMFME Launch Date
- June 2020
- PMKSY Launch Date
- 23 August 2017
- Agriculture's Contribution to GDP
- 18%
- Workforce in Agriculture
- 46%
- Micro Enterprise Investment Limit
- ₹2.5 crore
- Micro Enterprise Turnover Limit
- ₹10 crore
- Small Enterprise Investment Limit
- ₹25 crore
- Small Enterprise Turnover Limit
- ₹100 crore
- Medium Enterprise Investment Limit
- ₹125 crore
- Medium Enterprise Turnover Limit
- ₹500 crore
- PMFME Target Enterprises
- 200,000
- PMFME Sanctioned Units
- 172,000
- PMFME Total Project Cost
- ₹16,000 crore
- PMKSY Approved Projects
- 1,618
- PMKSY Total Approved Cost
- ₹21,917 crore
- PMKSY Operational Projects
- 1,185
- PMKSY Processing Capacity
- 27.05 million tonnes
- PMKSY Beneficiaries
- 5.1 million farmers
- PMKSY Employment Opportunities
- 722,000