Government Boosts Food Processing Sector with New Grants
The Ministry of Food Processing Industries (MoFPI) is making significant strides to modernize the food processing sector in India through financial support for research and development (R&D). Under the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), the MoFPI has extended Grant-in-Aid to various educational and research institutions, including the Council of Scientific & Industrial Research (CSIR). As of December 31, 2025, a total of 257 research projects have received approval, amounting to a subsidy of Rs. 102.47 crore.
In addition to these efforts, the National Institute of Food Technology, Entrepreneurship & Management (NIFTEM) based in Kundli and Thanjavur are actively involved in R&D initiatives under the MoFPI’s supervision, further enhancing the sector’s development.
Capacity Building and Training Initiatives
As part of the PM Formalization of Micro Food Processing Enterprises (PMFME) scheme, MoFPI is also focused on capacity-building initiatives. Grants are available for the training of various stakeholders, including Master Trainers, District Resource Persons, and food processing entrepreneurs. The training programs cover crucial aspects such as FSSAI regulations, hygiene practices, and food quality testing, which are essential for the effective outreach of food safety measures across micro food enterprises.
Furthermore, under the branding and marketing support component of the PMFME scheme, grants of up to 50% are offered to groups like Farmer Producer Organizations (FPOs), Self-Help Groups (SHGs), and cooperatives for branding and marketing their products. This support allows these groups to develop unified packaging and branding strategies in compliance with food safety standards, ultimately enhancing their market presence.
Innovative Marketing Support
To strengthen Indian brands on an international scale, the MoFPI also assists with marketing activities abroad, including in-store branding and shelf space rental. With the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), companies can receive financial incentives of up to 50% for expenses incurred on overseas branding and marketing, capped at 3% of their annual sales or Rs. 50 crore, whichever is lower. This initiative aims to promote strong Indian brands in global markets.
Applications for these schemes are accepted online, streamlining the approval process and enabling quicker project initiation in alignment with the demand-driven nature of the initiatives.
Through these comprehensive schemes, MoFPI aims to boost preservation and processing capacities, develop value-added food products, and foster entrepreneurship in the food processing industry. This initiative aims to provide better returns to farmers and enhance competitiveness within the sector. This information was relayed by Shri Ravneet Singh, Minister of State for Food Processing Industries, during a written reply in the Lok Sabha.
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