Press Note Details: Press Information Bureau

Farmer's Welfare

PMKSY Gets a Big Push with Additional ₹1,920 Crores

Powering India’s Agri-Future

Posted On: 07 AUG 2025 3:31PM

Introduction

Farmers’ hard work drives the backbone of India’s economy. Recognizing this, the government aims to double their income and strengthen farm-to-market infrastructure. In this effort, food processing has emerged as a sunrise sector in India. To support and accelerate the growth in the food processing sector, the Pradhan Mantri Kisan Sampada Yojana (PMKSY) plays a crucial role. The government recently approved a total outlay of ₹6,520 crore for PMKSY under the 15th Finance Commission cycle (2021–22 to 2025–26).

Transformative Outcomes Under PMKSY

Since its launch, a total of 1,601 projects has been approved under various components of the Pradhan Mantri Kisan Sampada Yojana (PMKSY) as on June 2025. Out of these, 1133 projects are now operational/completed, creating a processing and preservation capacity of 255.66 lakh metric tonnes (MT) per year. Once fully completed, these projects are expected to attract investments worth ₹21803.19 crore benefiting about 50.27 lakh farmers and are expected to result in more than 7.25 lakh direct/indirect man days of employment.

PMKSY has helped increase the price realization for farmers at the farm gate and reduced post-harvest losses significantly.

PMKSY: From Launch to Expansion

PMKSY was earlier known as the SAMPADA scheme (Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters). It was approved in May 2017 and renamed as the Pradhan Mantri Kisan Sampada Yojana on 23rd August 2017. This umbrella scheme was designed for the period 2016 to 2020, in line with the 14th Finance Commission cycle. To support the scheme, the government allocated ₹6,000 crore, aiming to attract a total investment of ₹31,400 crore.

The Union Cabinet has approved a total outlay of ₹6,520 crore for the Pradhan Mantri Kisan Sampada Yojana (PMKSY) for the 15th Finance Commission cycle (2021–22 to 2025–26). This includes an additional ₹1,920 crore.

₹1,000 crore:

For 50 Multi-Product Food Irradiation Units under Integrated Cold Chain and Value Addition Infrastructure (ICCVAI).

For 100 NABL-accredited Food Testing Labs (FTLs) under Food Safety and Quality Assurance Infrastructure (FSQAI).

₹920 crore:

For various ongoing PMKSY component schemes.

The government has increased financial investment to strengthen infrastructure.
Special focus is being given to difficult areas and the welfare of SC/ST.

PMKSY at a Glance

PM Kisan Sampada Yojana is a complete package to build modern infrastructure for the food processing sector. It focuses on creating a smooth and efficient supply chain — from the farm gate to the retail shop. This scheme helps farmers get better prices for their produce, reduces wastage, and supports the goal of doubling farmers' income. It also creates jobs, especially in rural areas, increases food processing levels, and boosts exports of processed food products.

Food Processing Sector currently accounts for around 1.39 per cent of the total Gross Value Added (GVA) and contributed 7.93 per cent and 9.46 per cent of GVA in the Manufacturing and Agriculture sectors respectively in 2023–24 (at 2011–12 prices). The sector’s GVA has risen significantly from ₹1.30 lakh crore in 2013–14 to ₹2.24 lakh crore in 2023–24 (as per first revised estimates).

Objectives of PM Kisan Sampada Yojana

Creation of modern infrastructure for food processing – being mega food parks/ clusters and individual units
To create effective backward and forward linkages - linking farmers, processors and markets
To create robust supply chain infrastructure for perishablesSchemes Implemented Under PMKSY

Schemes Implemented Under PMKSY

To boost food processing and reduce agricultural waste, several targeted schemes have been approved under the PM Kisan Sampada Yojana. These schemes aim to build modern infrastructure, enhance value addition, and ensure better returns for farmers.

Integrated Cold Chain & Value Addition Infrastructure: Create uninterrupted cold chains from farm to market to reduce post-harvest losses and ensure value addition.
Creation/ Expansion of Food Processing/ Preservation Capacities (Unit Scheme): Support new and existing units to increase processing levels, improve shelf life, and reduce wastage of agri-produce.
Infrastructure for Agro-Processing Clusters: Develop processing facilities near production areas with complete infrastructure and farmer-to-market linkages.
Food Safety & Quality Assurance Infrastructure: Establish food testing labs to ensure quality control and meet domestic and global food safety standards.
Human Resources & Institutions: Promote research and skill development to support innovation, packaging, food safety, and standardization in food processing.

Operation Greens (OG)

An additional scheme called Operation Greens (OG) was added to PMKSY in November 2018 with a budget of ₹500 crore. It initially focused on stabilizing prices of Tomato, Onion, and Potato (TOP) by offering financial help for transport and storage. In 2020-21, under the Aatmanirbhar Bharat initiative, this support was extended to all notified fruits and vegetables (called TOTAL). Later, in 2021-22, the scope of OG was further expanded to include 22 perishable products.

The 22 Perishables Included

10 fruits: Mango, Banana, Apple, Pineapple, Orange, Grapes, Amla, Pomegranate, Guava, Litchi
11 vegetables: Tomato, Onion, Potato, Green Peas, Carrot, Cauliflower, Beans, Okra, Garlic, Ginger, and various gourds (like Bottle Gourd, Bitter Gourd, Ridge/Sponge Gourd, Pointed Gourd, and Ash Gourd)
1 marine product: Shrimp

This expansion helped promote better storage, reduce wastage, and increase farmers’ income through processing and export opportunities.

One important component under PMKSY is the Multi-Product Food Irradiation Unit. This is part of the Integrated Cold Chain and Value Addition Infrastructure (ICCVAI) scheme. These units include facilities like cold storage, grading, sorting, and refrigerated vans for transporting irradiated food.

So far, 16 food irradiation projects have been approved under this scheme. Out of these, 9 have been completed or are operational, while 7 are still under implementation.

The proposed 50 multi-product food irradiation units will help reduce food wastage by adding preservation capacity of 20–30 lakh metric tonnes per year, depending on the type of produce.

Another important initiative under PMKSY is the establishment of Food Testing Laboratories through the Food Safety and Quality Assurance Infrastructure (FSQAI) component. These labs are being set up to test samples from food processing units and regulatory authorities, helping to reduce testing time by minimizing transportation delays. This supports timely quality checks and ensures compliance with both domestic and international food standards, which is essential for exports and consumer safety.

Under this scheme additionally, 100 NABL-accredited food-testing laboratories are being set up in the private sector to further strengthen the food-testing ecosystem and improve access to reliable testing facilities.

Conclusion

To tackle challenges like post-harvest losses, low processing levels, and poor farmer incomes, the government launched the Pradhan Mantri Kisan Sampada Yojana. The scheme aims to build a strong and modern agri-food system. It supports infrastructure like mega food parks, cold chains, and agro-processing clusters to reduce wastage and boost value addition. PMKSY helps farmers connect directly to markets and get better prices. With more investment, job creation, and better supply chains, the scheme is not just solving today’s problems but also securing the future of Indian agriculture.

References