PMKSY outlay hiked to ₹6,520 cr to enhance food sector

In a significant move to bolster India’s food processing industry, the Union Cabinet, chaired by Prime Minister Narendra Modi, on July 31, 2025, approved an increase in the budgetary outlay for the Pradhan Mantri Kisan Sampada Yojana (PMKSY) by ₹1,920 crore, bringing the total allocation to ₹6,520 crore for the 2025-26 fiscal year. This decision aligns with the 2024-25 budget announcement to enhance food processing infrastructure, focusing on establishing 50 multi-product food irradiation units and 100 food testing laboratories.

The PMKSY, launched in 2017, aims to modernize and expand the food processing sector by improving infrastructure, reducing post-harvest losses, and ensuring food safety. Initially allocated ₹4,600 crore for the 2021-22 to 2025-26 period under the 15th Finance Commission Cycle, the scheme’s enhanced funding will support two key demand-driven components: the Integrated Cold Chain and Value Addition Infrastructure (ICCVAI) and the Food Safety and Quality Assurance Infrastructure (FSQAI). Approximately ₹1,000 crore will be directed toward setting up the irradiation units and testing labs, while ₹920 crore will fund other PMKSY projects.

The 50 multi-product food irradiation units, to be established under ICCVAI, are expected to create a preservation capacity of 20-30 lakh tonnes per annum, depending on the food products processed. These units will help minimize post-harvest losses, prevent sprouting and microbial contamination, and extend shelf life, thereby supporting farmers and processors. The 100 NABL-accredited food testing labs under FSQAI will enhance food safety by ensuring compliance with domestic and international standards, reducing sample analysis time, and boosting exports.

According to Information & Broadcasting Minister Ashwini Vaishnaw, the enhanced infrastructure will significantly contribute to India’s processed food exports, which have doubled from US$ 5 billion to US$ 11 billion, with the share of processed food in agri-exports rising from 14% to 24%. The government will invite proposals through Expressions of Interest (EOIs) to ensure eligible entities across the country can participate, with approvals based on strict adherence to scheme guidelines.

This strategic investment underscores the government’s commitment to transforming the food processing sector, enhancing farmer incomes, and positioning India as a global leader in processed food exports.