Cabinet Enhances Budgetary Allocation for PMKSY to ₹6,520 Crore

The Union Cabinet has approved a major increase in the budget for the Pradhan Mantri Kisan Sampada Yojana (PMKSY), raising its allocation by ₹1,920 crore to a total of ₹6,520 crore. The move, taken under the leadership of Prime Minister Narendra Modi, aims to give a significant boost to India’s food processing sector by creating modern infrastructure and ensuring better food safety standards.

Boosting the Food Processing Sector

Launched in 2017, the PMKSY has been a key initiative to strengthen India’s food processing capacity and reduce post-harvest losses. Originally allocated ₹4,600 crore for the extended period till 2025-26, the scheme will now receive an additional ₹1,920 crore to implement new projects announced in the 2024-25 budget.

Key Focus Areas of the Enhanced Outlay

50 Multi-Product Food Irradiation Units

• Around ₹1,000 crore will be used to establish 50 multi-product food irradiation units under the Integrated Cold Chain and Value Addition Infrastructure (ICCVAI) scheme.
• These units are expected to create 20–30 lakh tonnes of preservation capacity per year.
• Irradiation will help reduce post-harvest losses, prevent microbial contamination, delay ripening, and extend the shelf life of food products.

100 Food Testing Laboratories

• Another major component is the setting up of 100 NABL-accredited food testing labs under the Food Safety and Quality Assurance Infrastructure (FSQAI) scheme.
• These labs will ensure compliance with domestic and global food safety standards.
• Quicker sample analysis will reduce waiting times for approvals, boosting exports and strengthening consumer confidence in food safety.

Additional Funding for Projects

• The remaining ₹920 crore will be used to sanction projects under other PMKSY component schemes during the 15th Finance Commission Cycle (2021-22 to 2025-26).

Economic Impact and Benefits

• The initiative is expected to significantly enhance India’s food export potential.
• According to I&B Minister Ashwini Vaishnaw, exports of processed food products have already doubled from USD 5 billion to USD 11 billion.
• The share of processed food in India’s agricultural exports has grown from 14% to 24%, highlighting the sector’s rapid expansion.
• With advanced irradiation units and testing labs, India is set to improve its global competitiveness in food exports.

Implementation Plan

The government will soon float Expressions of Interest (EOIs) to invite proposals from eligible private and public entities. Each proposal will undergo detailed scrutiny to ensure compliance with scheme guidelines before approval.