Pradhan Mantri Kisan Sampada Yojana Update 2025

The Pradhan Mantri Kisan Sampada Yojana (PMKSY) continues to evolve as initiative for food processing in India. As of January 18, 2025, the Ministry of Finance reported the sanctioning of 1,646 food processing projects. These projects involve food testing labs and research and development initiatives. The total value of these projects is ₹31,830.23 crore. They are expected to attract private investments of ₹22,722.55 crore.

Overview of PMKSY

PMKSY was launched in 2016-17 to enhance food processing and preservation in India. It aims to boost the agricultural economy by improving post-harvest management. The initiative focuses on increasing the processing level and enhancing the export of processed foods.

Employment and Farmer Benefits

The sanctioned projects are projected to create a processing and preservation capacity of 428.04 LMT per annum. This is expected to generate employment for approximately 13.42 lakh individuals. Additionally, the initiative aims to benefit around 51.24 lakh farmers directly through various schemes.

Support for Micro Food Processing Enterprises

The PM Formalisation of Micro Food Processing Enterprises (PMFME) Yojana supports unorganised micro food processing units. Launched in 2020-21, it offers financial, technical, and business support. As of December 18, 2024, over 3.10 lakh self-help groups (SHGs) have received seed capital. Moreover, 1,14,388 individuals have benefited from credit linkages and subsidies.

Multi-Product Food Irradiation Units

The government has announced financial support for establishing 50 multi-product food irradiation units within the MSME sector. This initiative aims to enhance food safety and quality. An Expression of Interest (EOI) was issued in August 2024, attracting 20 project proposals currently under evaluation.

Production-Linked Incentive Scheme

The Production-Linked Incentive (PLI) scheme for the food processing industry has gained traction. Currently, 133 companies are participating in the programme. Investments worth ₹8,910 crore have been attracted, with ₹1,084 crore disbursed in incentives across 85 eligible cases. This scheme aims to promote domestic manufacturing and increase the competitiveness of the food processing sector.

Future Directions

The government is focused on promoting both public and private investment in agriculture and food processing. There is an emphasis on modernising storage, enhancing supply chains, and improving marketing strategies. These efforts are essential for achieving faster growth in the sector.

Questions for UPSC:

1. Critically discuss the impact of the Pradhan Mantri Kisan Sampada Yojana on India’s agricultural economy.
2. Analyse the role of the PM Formalisation of Micro Food Processing Enterprises Yojana in supporting unorganised sectors.
3. Examine the significance of multi-product food irradiation units in enhancing food safety standards in India.
4. Estimate the potential benefits of the Production-Linked Incentive scheme for the food processing industry.

Answer Hints:

1. Critically discuss the impact of the Pradhan Mantri Kisan Sampada Yojana on India’s agricultural economy.

1. PMKSY aims to enhance food processing and preservation, improving post-harvest management.
2. It has sanctioned 1,646 projects valued at ₹31,830.23 crore, attracting private investments of ₹22,722.55 crore.
3. The initiative is projected to create a processing capacity of 428.04 LMT per annum, generating 13.42 lakh jobs.
4. Approximately 51.24 lakh farmers are expected to benefit directly from various schemes under PMKSY.
5. By increasing the level of processing, PMKSY aims to boost exports of processed foods and strengthen the agricultural economy.

2. Analyse the role of the PM Formalisation of Micro Food Processing Enterprises Yojana in supporting unorganised sectors.

1. The PMFME Yojana provides financial, technical, and business support to unorganised micro food processing units.
2. Since its launch in 2020-21, it has supported over 3.10 lakh self-help groups (SHGs) with seed capital.
3. 1,14,388 individuals have benefited from credit linkages and subsidies, enabling access to finance.
4. This scheme aims to formalise the unorganised sector, improving sustainability and competitiveness.
5. It enhances livelihoods in rural areas, promoting entrepreneurship and economic development in the food processing space.

3. Examine the significance of multi-product food irradiation units in enhancing food safety standards in India.

1. Food irradiation is a technology that improves food safety by eliminating pathogens and pests.
2. The establishment of 50 multi-product food irradiation units will enhance the quality of processed foods.
3. This initiative supports the MSME sector, encouraging innovation and compliance with international food safety standards.
4. It can extend the shelf life of products, reducing food waste and improving food security.
5. The initiative aligns with government goals to modernise food processing and enhance consumer confidence in food safety.

4. Estimate the potential benefits of the Production-Linked Incentive scheme for the food processing industry.

1. The PLI scheme incentivizes domestic manufacturing, attracting investments worth ₹8,910 crore to the food processing sector.
2. Currently, 133 companies are participating, indicating increased industry engagement and competitiveness.
3. Incentives of ₹1,084 crore have been disbursed, supporting eligible projects and enhancing operational capabilities.
4. The scheme aims to boost employment opportunities and encourage innovation in food processing technologies.
5. By increasing processing capacity, the PLI scheme can contribute to the overall growth of the agricultural economy.