New Delhi, Feb 13 (KNN) The Government has informed the Lok Sabha that it is implementing multiple schemes to promote farmer-owned food processing startups and enhance value addition in the agri sector.
In a written reply, Minister of Food Processing Industries Chirag Paswan said the Ministry of Food Processing Industries (MoFPI) is implementing schemes including Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme (PMFME), Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) and Production Linked Incentive Scheme for Food Processing Industry (PLISFPI).
Under these schemes, subsidies, incentives and credit support are extended to eligible entities such as startups, micro enterprises, Farmer Producer Organizations (FPOs), Self Help Groups (SHGs) and individual entrepreneurs.
Under PMFME, support is also provided for setting up Incubation Centres by Government institutions and private agencies. These centres offer product development, lab testing and training support to micro food processing entrepreneurs, SHGs, FPOs and startups.
The Minister stated that the NIFTEM Technology Innovation and Business Incubation Foundation (NTIBIF) of National Institute of Food Technology Entrepreneurship and Management, Kundli and National Institute of Food Technology Entrepreneurship and Management, Thanjavur are providing incubation and handholding support to startups and MSMEs in the food and agri sectors.
So far, NTIBIF has incubated 55 startups and disbursed seed grants of nearly Rs 1.19 crore. These startups operate in areas such as Ready-to-Eat/Ready-to-Cook products, functional foods, alternative proteins and supply chain innovation. NIFTEM-Thanjavur has supported or hand-held 40 MSME startups.
MoFPI has also organised a Startup Conclave titled SUFALAM (Startup Forum for Aspiring Leaders and Mentors) through NIFTEM-K to promote innovation in food processing. Additionally, during its flagship event World Food India, the Ministry has organised a Startup Grand Challenge in 2023, 2024 and 2025, with winners receiving cash awards and incubation support.
To support rural entrepreneurs in branding and market access, the PMFME scheme provides grants of up to 50 percent of eligible project cost for groups of FPOs, SHGs, cooperatives or Special Purpose Vehicles under a cluster-based approach for developing common brands.
The Ministry of Rural Development has also registered trademarks ‘Saras’, ‘Saras Aajeevika’ and ‘Aajeevika’ for SHG products and established marketing platforms such as SARAS Fairs, SARAS Gallery and the e-commerce portal to enhance product visibility.
Under PMFME, 80 Incubation Centres have been approved across 27 States and UTs. Each centre includes at least one processing line under the One District One Product (ODOP) approach and additional lines for allied products.
Further, MoFPI is implementing the Scheme for Creation of Infrastructure for Agro Processing Clusters (APC), a component of PMKSY, which provides grants of 35 percent of eligible project cost in general areas and 50 percent in difficult areas, including North Eastern States, hilly states and notified tribal areas, subject to a maximum of Rs 10 crore.
The Minister said that under PMFME, micro-enterprises receive training in product development, quality assurance, packaging and labelling in compliance with FSSAI regulations. Formalisation support is provided through Udyam registration, FSSAI registration and GST registration where applicable.
The PMFME scheme is demand-driven and implemented through State and UT Governments. Till December 31, 2025, loans have been sanctioned to 97 micro food processing enterprises in Bhiwani and Mahendergarh districts of Haryana.
Component schemes under PMKSY, including Agro Processing Clusters, are also demand-driven and proposals are invited periodically through Expressions of Interest, the Minister added.
(KNN Bureau)
