Food Processing Sector Review 2025

Core Update

The Ministry of Food Processing Industries (MoFPI) released its Year End Review 2025, noting a surge in processed food exports to 20.4% of total agri-exports and significant employment generation (12.83% of organized manufacturing).

Key Schemes & Data

1. Pradhan Mantri Kisan Sampada Yojana (PMKSY)

• Nature: Central Sector Scheme.
• Impact: 270.51 Lakh MT processing capacity created; benefits 51 lakh farmers.
• Components: Mega Food Parks, Cold Chain, Agro-Processing Clusters.

2. PM Formalisation of Micro Food Processing Enterprises (PMFME)

• Nature: Centrally Sponsored Scheme (Aatmanirbhar Bharat).
• Focus: Integrating micro-enterprises into the formal economy.
• Strategy: One District One Product (ODOP) approach.
• Achievement: 56,542 loans sanctioned since Jan 2025.

3. PLI Scheme for Food Processing

• Goal: Create global food champions.
• Investment: ₹9,702 Crore reported.
• Focus Areas: Ready-to-Cook/Eat (RTC/RTE), Marine products, Mozzarella cheese.

Why it Matters

• Doubling Farmers' Income: Reduces wastage (witnessed 70-85% reduction in fisheries/dairy).
• Employment: Labor-intensive sector bridging agriculture and manufacturing.
• Export Diversification: Moving from raw commodities to value-added products.

UPSC Relevance

• GS-III: Food processing and related industries in India- scope' and significance, location, upstream and downstream requirements, supply chain management.

Prelims Trap Alert

⚠️ PMKSY vs PMFME:

• PMKSY: Big infrastructure (Mega Food Parks, Cold Chains) -> Central Sector.
• PMFME: Small/Micro individual units (Pickles, Papad, specialized ODOP) -> Centrally Sponsored.

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