India is the largest manufacturer of cereals, pulses, milk, fruits and vegetables in the world, and as a result, it has not grown too much in processed foods regarding harvesting and adding value.
According to the annual MOFPI report 2024-25, industry processed food contributes. The processed food exports in the country further exceeded $ 46.43 billion in FY 2023-24.
Yet about 20-25% of fruits and vegetables are harvesting. In response to these figures, the Indian government also launched Pradhan Mantri Kisan Sampad Yojana (PMKSY).
It is a collection of integrated initiatives in mega food parks, integrated cold chains, agro processing clusters and Greens operations. The aim of this system is to minimize waste, increase the intake of farmers, and make India a global center of processed food, providing huge opportunities for startups.
Read More: Mega Food Park – Encouraging Food Projects in India
1. The Indian Opportunity for Food Processing
- Food export: $ 46.43 billion (FY 2023-24)
- Food imports: $ 31.7 billion (FY 2023-24)
- Employment: Registered units 22.96 Lakh; Unprepared businesses: 46,57 Lakh
- FDI influx: $ 7.22 billion (2014–2024)
These figures tell about the power of India raw materials, but emphasize the need to add value. PMKSY specifies the roads for entrepreneurs to reduce imports and at the same time increase exports.
2. PMKSY: Understanding an integrated food processing scheme in India
Of the many schemes merged for comprehensive food processing support, PMKSY was launched and announced in 2017 when the government introduced:
- Mega Food Parks-integrated Disabling and Storage Break
- Integrated adding cold string and value.
- Creating processing and preservation capacities.
- Agro-work clusters (APC).
- Operation Greens – At first it was just for top (tomatoes, onions and potatoes), but now it is expanding to all the spoils.
- Infrastructure for food safety and quality ensuring.
- Development of human resources and skills.
For startups, these programs concern access to finished infrastructure, financial incentives and supplier chains of raw materials.
3. Mega Food Parks: Growth engines:
The concept of state -of -the -art nodes with common infrastructure include cold storage, warehouses, laboratories, wrapping units and logistics.
Update: The government approved more than 22 mega food parks across the country, including states such as Assam, Punjab, Maharashtra and Tamil Nadu.
Opportunities for Startups:
- Processing of juices ready to eat dairy powders of seafood and spices
- Using conventional/shared infrastructure to minimize capital costs
- One center to access home and export markets
Read More: Mega Food Park Setup Guide – Feasibility & Trends
4. Integrated Cooling Chains: Waste reduction
Importance: Almost 25% of fruits and vegetables are unnecessary due to poor storage and transport in India. Cold chains will ensure the market for trouble -free movements from the farm.
Success: More than 298 projects were sanctioned by a subsidy level of 35% in general areas and 75% in the Ner & Hillly area.
Opportunities to launch:
- Cool storage represents onions, potatoes, apple, mango and dairy products
- Reefer Transport Enterprises serving retailers and exporters
- Reserved Cold chain solution for fishing and meat
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5. Agro-work of clusters: Support of localized growth
Concept: ODP -based cluster (one One District One product) for the optimal lever effect of local raw materials, which significantly reduces logistics costs.
Examples:
- Mango Pulp in Uttar Pradesh. Clusters of spices in Kerala.
- Processing pineapple in Tripura.
Opportunities to launch:
- Set processing units for ODP crops.
- Build regional brands with GI brands.
- Export of specialized products such as cardamom oil, turmeric and bamboo shoots.
6. Operation Greens: Stabilization
Foumiables focuses on the top: tomatoes, onions, potatoes and now have spread to all subjects.
Advantages:
- Price volatility is reduced for farmers.
- Support of processors and preservatives.
Opportunities to launch:
Production of tomato puree and ketchup
Onion dehydration
Potato starch and frozen French fries Production
Read More: Mega Food Park – Encouraging Food Projects in India
7. Spaces in Import-Export: Opportunities for Startups
India imports billions of edible oils, cocoa and drinks:
- Edible oils: $ 15 billion → extraction/oil refine on the domestic market.
- Cocoa: $ 513 million → Cocoa processing and craft chocolate.
- Drinks and vinegar: $ 1.5 billion → fruit wines, craft drinks, vinegar.
Cold chains and PMKSY clusters provide the best launchpad to solve these gaps.
8. Support for financing NABARD
The Food Processing Fund provides discounted loans for:
- Mega Food Parks.
- Agro cluster processing.
- Cold chain and preservation units.
In the FY 2023-24, it paid off via the food processing infrastructure over 800 GBP, making it easier for start-ups to the use of low interest financing.
9. MSME Success Tales: Instruction for Startups
- LT Foods (Daawat Rice): New heights around the world with processing and brand.
- Cooperative Amul: Created the largest model of milk supply in Indian milk.
- Paper Boat: Pack of exports of modernized traditional drinks.
- Everest & MDH spice: grown in all four corners of the world through quality and branding.
Takeaway is that PMKssy not only provides infrastructure and branding, but also finance for the transformation of a small business into a global enterprise.
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As NPCs can help you
Niir Project Consultancy Services (NPCS) is preparing a comprehensive CUM market research detailed feasibility technical reports (DPR), which include market research, demand analysis, processes, raw materials and cost and profitability projection, as well as financial feasibility studies.
By providing practical management, NPCs help entrepreneurs access PMKSY and incentives, refuse risks and build profitable scalable companies. Partnership with NPC will be in the Indian food processing sector in the Indian food processing sector of informed decision -making and rapid monitoring.
Find the Best Idea for Yourself With our Startup Selector Tool
Conclusion
PMKSSY is now advantageously expanded to include key infrastructure support, such as mega food parks, cold chains and agro -process clusters and spread rapidly across the country through initiatives such as Greens operation.
This very agricultural surplus is therefore an increased support with adequate infrastructure for production prepared for export and at the same time opens paths for extensive startups.
With government subsidies, Nabard financing and professional assistance from the NPCs that work in their favor, it is a truly golden decade for entrepreneurs who want to develop businesses that are profitable on the national and international term.
Otherwise, PMKSY will be considered more than just a scheme. India will be considered as conceived PMKSY as a platform for the next generation of innovative, scalable and export -oriented food processing companies.
FAQS
1. Who can apply according to these schemes?
Any person or any cooperative, FPO, SHG or society can apply for a PMKSY system with the intention of incorporating all participating sections.
2. What are the rates of subsidies?
The general areas usually have the benefits of a subsidy of up to 35 percent and about 75 percent in the northeast and hilly areas.
3. Do startups come from any indirect benefits from Plisfpi?
New companies can qualify as dealers or contractors, so they can connect indirectly in cooperation with PLA companies.
4. What benefits can PMFME extend to micro food businesses?
It would provide subsidies of 35% of up to 10 lamps and would be provided to building capacities, development and formalization for the consolidation of small players.
5. Where to find messages about PMKSY projects?
NPC, support planning and scaling of startups, comes with DPR designed to integrate technical, financial and market knowledge.