The Union Cabinet has approved a significant increase in the budget for the Pradhan Mantri Kisan Sampada Yojana (PMKSY), raising its allocation by ₹1,920 crore to a total of ₹6,520 crore. This move aims to strengthen India’s food processing sector.
Boosting the Food Processing Sector
Launched in 2017, the PMKSY is a crucial initiative to enhance India’s food processing capacity and reduce post-harvest losses. Originally allocated ₹4,600 crore for the extended period till 2025-26, the scheme will now receive additional funding to implement new projects announced in the 2024-25 budget.
Key Focus Areas of the Enhanced Outlay
- Around ₹1,000 crore will be utilized to establish 50 multi-product food irradiation units under the Integrated Cold Chain and Value Addition Infrastructure (ICCVAI) scheme.
- These units are expected to create 20–30 lakh tonnes of preservation capacity per year.
- Irradiation will help reduce post-harvest losses, prevent microbial contamination, delay ripening, and extend the shelf life of food products.
100 Food Testing Laboratories
- Another major component is the establishment of 100 NABL-accredited food testing labs under the Food Safety and Quality Assurance Infrastructure (FSQAI) scheme.
- These labs will ensure compliance with domestic and global food safety standards.
- Quicker sample analysis will reduce waiting times for approvals, boosting exports and strengthening consumer confidence in food safety.
Additional Funding for Projects
- The remaining ₹920 crore will be allocated to sanction projects under other PMKSY component schemes during the 15th Finance Commission Cycle (2021-22 to 2025-26).
Economic Impact and Benefits
- The initiative is expected to significantly enhance India’s food export potential.
- Exports of processed food products have doubled from USD 5 billion to USD 11 billion.
- The share of processed food in India’s agricultural exports has increased from 14% to 24%.
- India is set to improve its global competitiveness in food exports with advanced irradiation units and testing labs.
Implementation Plan
The government will soon float Expressions of Interest (EOIs) to invite proposals from eligible private and public entities. Each proposal will undergo detailed scrutiny to ensure compliance with scheme guidelines before approval.
Key Takeaways for Competitive Exams
- Union Cabinet raises PMKSY budget to ₹6,520 crore to boost the food processing sector.
- Enhanced outlay includes setting up 50 multi-product food irradiation units and 100 food testing laboratories.
- Additional funding of ₹920 crore allocated for projects under PMKSY component schemes.
- Expected economic impact with significant improvement in India’s food export potential.
- Focus on enhancing global competitiveness in food exports through advanced infrastructure.
