MoFPI Food Processing Subsidy Support

Ministry of Food Processing Industries (MoFPI)

Pradhan Mantri Kisan SAMPADA Yojana (PMKSY)

Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) is a Central Sector Scheme of the Ministry of Food Processing Industries (MoFPI), Government of India. It supports creation and strengthening of food-processing infrastructure, preservation facilities, cold-chain systems, agro-processing clusters, food-testing infrastructure and research & development in the food-processing sector.

The following are the major PMKSY component schemes relevant for food-processing projects:

1. Integrated Cold Chain & Value Addition Infrastructure

Scheme Introduction / Overview

The Integrated Cold Chain & Value Addition Infrastructure Scheme aims to establish an integrated cold-chain and preservation system from the farm gate to the consumer, without breaks in the cold chain.

The scheme supports infrastructure such as farm-level facilities, processing centres, cold storage, distribution hubs, refrigerated vehicles and other value-addition facilities. Its objective is to reduce post-harvest losses, improve preservation and connect farmers with processors and markets.

The current revised operational guidelines were issued by MoFPI on 22 May 2025.

Eligibility Criteria

Eligible entities include:

Individuals
Proprietorship firms
Partnership firms
LLPs
Companies
Cooperatives
FPOs/FPCs
SHGs
NGOs
Joint Ventures
Central and State PSUs
Other eligible entities having business interest in cold-chain or supply-chain operations

The applicant must satisfy the requirements prescribed under the applicable MoFPI guidelines and EOI.

Eligible Industries / Businesses

The scheme can support cold-chain infrastructure associated with:

Fruits and vegetables
Horticultural produce
Dairy products
Meat and poultry
Fish and marine products, except shrimp
Other eligible non-horticultural food products
Frozen and chilled food products
Processed food products

Typical infrastructure includes:

Farm-level infrastructure
Pre-cooling
Sorting and grading
Packing
Processing centres
Multi-product/multi-temperature cold storage
Controlled Atmosphere (CA) storage
IQF facilities
Blast freezing
Distribution hubs
Refrigerated/insulated vehicles
Mobile cooling units

MoFPI specifically identifies farm-level infrastructure, processing centres, distribution hubs and refrigerated/insulated transportation as project components.

Subsidy / Financial Assistance

Financial assistance is generally provided as grant-in-aid on eligible project cost:

General Areas: 35% of eligible project cost
Difficult Areas and eligible SC/ST, FPO and SHG projects: 50% of eligible project cost

Maximum Subsidy / Assistance

The maximum grant is ₹10 crore per project.

Approved grants are generally released in prescribed instalments subject to fulfilment of the applicable conditions.

Key Benefits

Reduction of post-harvest losses
Improved shelf life of food products
Better farm-to-market connectivity
Development of modern cold-chain infrastructure
Improved value addition
Better market access for farmers and processors
Support for year-round availability of food products
Strengthening of refrigerated logistics

Applicable Conditions

The project must comply with the latest MoFPI guidelines and applicable EOI.
A suitable integrated project structure must be established.
Processing Centre is a mandatory component under the current guidelines.
Farm-level infrastructure must be properly identified in the DPR and bank appraisal documents where applicable.
Land, financing and statutory approvals must be available as required.
Only eligible project costs/components are considered for assistance.
Grant is subject to project approval, implementation and verification.

2. Creation / Expansion of Food Processing & Preservation Capacities (CEFPPC)

Scheme Introduction / Overview

The CEFPPC Scheme provides financial assistance for establishing new food-processing and preservation facilities and for expansion of existing eligible facilities.

The objective is to increase processing capacity, value addition and preservation of agricultural produce and strengthen the food-processing sector.

MoFPI issued updated operational guidelines for CEFPPC on 22 January 2025, superseding the previous 2022 guidelines.

Eligibility Criteria

Eligible applicants may include:

Individuals
Proprietorship firms
Partnership firms
Companies
LLPs
FPOs/FPCs
Cooperatives
SHGs
Other eligible entities specified in the EOI/guidelines

The applicant must have the required technical and financial capability and comply with the applicable project and financing requirements.

Eligible Industries / Businesses

The scheme broadly covers eligible food-processing and preservation activities such as:

Fruits and vegetable processing
Dairy processing
Meat and poultry processing
Fish and marine processing
Grain and cereal processing
Pulses processing
Oilseed processing
Spices and condiments
Ready-to-eat/ready-to-cook products
Frozen food
Bakery and processed food products
Beverages
Food preservation and value-addition activities

Eligibility of a specific product must be checked against the latest CEFPPC guidelines and EOI.

Subsidy / Financial Assistance

General Areas: 35% of eligible project cost
Difficult Areas and eligible SC/ST, FPO and SHG projects: 50%

Maximum Subsidy / Assistance

Maximum assistance is ₹5 crore per project.

Key Benefits

Establishment of new processing capacity
Expansion of existing food-processing units
Modernisation of processing facilities
Increased value addition
Better utilisation of agricultural produce
Reduction in post-harvest losses
Employment generation
Improved processing and preservation infrastructure

Applicable Conditions

Project must fall within eligible activities.
Application must be submitted against the applicable EOI.
Eligible project cost is determined according to MoFPI norms.
Applicant must arrange the required promoter contribution and institutional finance, where applicable.
Statutory approvals must be obtained.
Project must be completed within the prescribed implementation period.
Subsidy is subject to approval and verification.

3. Infrastructure for Agro-Processing Clusters (APC)

Scheme Introduction / Overview

The Agro-Processing Cluster (APC) Scheme aims to develop modern infrastructure for processing agricultural and food products by creating clusters where common infrastructure and multiple food-processing units can operate together.

The scheme is designed to strengthen the link between farmers, processors and markets and promote value addition close to production areas.

MoFPI issued revised APC operational guidelines dated 25 April 2025.

Eligibility Criteria

Eligible applicants/project structures are governed by the current APC guidelines and EOI and may include:

Companies
LLPs
Cooperatives
FPOs/FPCs
State/Central agencies
Other eligible implementing entities

The applicant must demonstrate the ability to establish and operate the proposed cluster and meet land, infrastructure, financial and technical requirements.

Eligible Industries / Businesses

Clusters may support multiple food-processing activities, including:

Fruits and vegetables
Dairy
Meat and poultry
Fish and marine products
Grain and cereal processing
Pulses
Spices
Ready-to-eat/ready-to-cook products
Beverages
Other eligible food-processing activities

Common infrastructure may include:

Roads/internal infrastructure
Water and utilities
Warehousing
Cold storage
Common processing facilities
Packaging facilities
Quality-control facilities
Effluent treatment
Other common facilities required for the cluster

Subsidy / Financial Assistance

General Areas: 35% of eligible project cost
Difficult Areas and eligible categories: 50%

Maximum Subsidy / Assistance

Maximum financial assistance is ₹10 crore per project.

Key Benefits

Development of common food-processing infrastructure
Reduced infrastructure cost for individual processing units
Better access to processing facilities
Improved farm-to-processing linkages
Increased value addition
Employment generation
Development of regional food-processing ecosystems
Better utilisation of local agricultural raw materials

Applicable Conditions

Project must satisfy APC guidelines.
Adequate land and infrastructure arrangements are required.
Cluster must have appropriate processing/business potential.
Common infrastructure should support eligible food-processing activities.
Applicant must arrange required project financing.
Project must comply with statutory and environmental requirements.
Assistance is restricted to eligible project components and costs.

4. Food Safety & Quality Assurance Infrastructure (FSQAI)

Scheme Introduction / Overview

The Food Safety & Quality Assurance Infrastructure (FSQAI) component supports development of food-testing and quality-control infrastructure.

Its principal current focus includes setting up/upgradation of Food Testing Laboratories, particularly laboratories capable of providing reliable testing services and meeting prescribed accreditation requirements.

MoFPI issued new guidelines on 12 November 2025 for setting up Food Testing Laboratories with NABL accreditation.

Eligibility Criteria

Eligible applicants under the Food Testing Laboratory component include eligible:

Government organisations
Private organisations/entities
Universities/institutions
Other entities meeting the applicable MoFPI guidelines

For private applicants, the laboratory is intended for eligible commercial food-testing purposes.

Eligible Industries / Businesses

The infrastructure can support testing of:

Food products
Processed foods
Agricultural food products
Microbiological parameters
Chemical contaminants
Pesticide residues
Food additives
Other parameters prescribed under applicable food-safety standards

The scheme supports food-testing laboratories and quality-control infrastructure.

Subsidy / Financial Assistance

For Food Testing Laboratories:

Government organisations:

100% of eligible approved equipment cost
Additional assistance for technical civil work/furniture & fixtures as prescribed

Private organisations/entities:

50% of eligible equipment cost in General Areas
70% in Difficult Areas/for eligible SC/ST applicants
Technical civil work and furniture & fixtures assistance is subject to prescribed limits

The current MoFPI assistance structure provides 2% of eligible approved equipment cost or ₹15 lakh, whichever is lower, for technical civil work and furniture & fixtures.

Maximum Subsidy / Assistance

For the standard Food Testing Laboratory assistance, the technical civil work and furniture/fixtures component is capped as prescribed above. Where MoFPI itself establishes or sponsors a laboratory, assistance may be decided separately by the competent authority.

Key Benefits

Development of modern food-testing infrastructure
Faster and reliable food testing
Support for domestic food-safety compliance
Support for export-oriented food testing
Improved monitoring of contaminants and residues
Strengthening of quality-control systems
Support for NABL-accredited laboratory infrastructure

Applicable Conditions

Laboratory must satisfy the applicable MoFPI guidelines.
Equipment must fall within approved/eligible categories.
Applicable accreditation requirements must be fulfilled.
Private laboratories must meet the prescribed commercial-testing conditions.
Only eligible costs are considered for assistance.
Application is subject to EOI and availability of funds.

5. Human Resources & Institutions – Research & Development

Scheme Introduction / Overview

The Research & Development (R&D) component supports demand-driven research for the food-processing sector.

The scheme focuses on development of new/improved products and processes, efficient processing technologies, packaging, preservation, storage, value addition and standardisation of food-related parameters.

MoFPI describes the objective as supporting R&D with commercial relevance and improving food-processing technology, quality and safety.

Eligibility Criteria

Eligible organisations include:

Universities
IITs
Central Government institutions
State Government institutions
Government-funded organisations
R&D laboratories
CSIR-recognised R&D units in the private sector

The project should be relevant to the food-processing sector and should have defined R&D objectives and outcomes.

Eligible Industries / Businesses

R&D proposals may cover:

Food product development
Process development
Food preservation
Packaging technologies
Storage technologies
Shelf-life improvement
Value addition
Processing equipment/technology
Food additives
Colouring agents
Preservatives
Pesticide residues
Chemical contaminants
Microbiological contaminants
Food safety
Other food-processing technologies

Subsidy / Financial Assistance

Government organisations/universities/institutions:

Up to 100% of eligible project costs as prescribed, including eligible equipment, consumables and project-specific staff expenditure.

Private organisations/universities/institutions/R&D laboratories:

50% of eligible equipment cost in General Areas
70% in North-East States and Difficult Areas

The standard R&D assistance is released in prescribed instalments.

Maximum Subsidy / Assistance

The assistance is determined according to the approved R&D project and applicable guidelines rather than being presented as a single universal project ceiling.

Key Benefits

Development of innovative food products
Development of new processing technologies
Improved preservation and shelf life
Improved packaging
Better food safety
Technology development and validation
Commercialisation potential
Improved processing efficiency
Support for industry-oriented research

Applicable Conditions

R&D proposal should be demand-driven and relevant to the food-processing sector.
Project objectives, methodology, deliverables and timelines should be clearly defined.
Eligible expenditure must comply with the guidelines.
Government and private organisations have different funding patterns.
R&D findings should have potential benefit to the food-processing sector.
Assistance is subject to project approval.

6. Operation Greens

Scheme Introduction / Overview

Operation Greens is a component of PMKSY designed to strengthen the value chain of eligible agricultural and horticultural commodities by supporting post-harvest infrastructure, processing, storage, transportation and integrated value-chain development.

The scheme aims to improve value realisation for producers, reduce post-harvest losses, strengthen processing infrastructure and improve market linkages.

MoFPI maintains separate guidelines and implementation information for Operation Greens.

Eligibility Criteria

Eligible applicants depend on the applicable Operation Greens guidelines/EOI and may include:

Companies
Cooperatives
FPOs/FPCs
SHGs
Private sector entities
Other eligible organisations/entities

Special assistance patterns are available for specified categories/areas according to the applicable guidelines.

Eligible Industries / Businesses

Operation Greens can support eligible projects involving:

Fruits and vegetables
Processing of eligible agricultural/horticultural produce
Post-harvest infrastructure
Storage infrastructure
Cold-chain infrastructure
Transportation
Processing and preservation
Integrated value-chain projects
Other eligible infrastructure specified by the Operation Greens guidelines

Subsidy / Financial Assistance

For the long-term infrastructure component:

General Areas:

35% of eligible project cost

Difficult Areas and eligible SC/ST, FPO and SHG projects:

50% of eligible project cost

For Integrated Value Chain Development Projects, the maximum assistance is ₹15 crore per project.

For Standalone Post-Harvest Infrastructure Projects, the maximum assistance is ₹10 crore per project.

Maximum Subsidy / Assistance

Integrated Value Chain Development Project: Up to ₹15 crore
Standalone Post-Harvest Infrastructure Project: Up to ₹10 crore

The applicable percentage and ceiling are subject to the specific project category and current guidelines.

Key Benefits

Reduction in post-harvest losses
Improved storage and preservation
Better transportation infrastructure
Strengthened farmer-to-market linkages
Increased value addition
Improved processing capacity
Better market access
Development of integrated agricultural value chains
Improved utilisation of surplus produce

Applicable Conditions

Project must involve eligible commodities/activities under Operation Greens.
Project must meet the applicable long-term intervention guidelines.
Eligible project components and costs are determined by MoFPI.
Adequate raw-material availability and market linkage should be demonstrated.
Integrated projects must satisfy the prescribed value-chain requirements.
Land, finance and statutory approvals must be available as applicable.
Grant is subject to approval and verification.

Quick Comparison of PMKSY Components

PMKSY Component	Main Purpose	General Area Assistance	Maximum Assistance
Integrated Cold Chain & Value Addition	Cold chain, preservation, processing and refrigerated logistics	35%	₹10 crore
CEFPPC	New/expanded food-processing & preservation units	35%	₹5 crore
Agro-Processing Clusters	Common infrastructure and food-processing clusters	35%	₹10 crore
FSQAI – Food Testing Labs	Food testing and quality infrastructure	50% for eligible private entities	As per applicable guidelines
R&D – Processed Food Sector	Product/process/technology research	50% private; 100% government, subject to eligible costs	As per approved project/guidelines
Operation Greens	Integrated value chain and post-harvest infrastructure	35%	₹15 crore for integrated value-chain projects

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