Introduction
The Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) is a flagship scheme launched by the Government of India to modernize the agriculture and food processing sector. Aimed at reducing food wastage and enhancing the income of farmers, PMKSY plays a critical role in strengthening the farm-to-fork value chain.
Launched by the Ministry of Food Processing Industries (MoFPI), PMKSY consolidates several sub-schemes for infrastructure development, supply chain management, and entrepreneurship support in the agro-processing ecosystem.
Full Form of PMKSY
Pradhan Mantri Kisan SAMPADA Yojana
SAMPADA stands for Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters.
Objectives of PMKSY
- Create modern infrastructure with efficient supply chain management from farm gate to retail outlet.
- Boost growth of food processing sector in rural areas.
- Reduce food wastage, especially in perishables like fruits and vegetables.
- Double farmers’ income by adding value to agricultural produce.
- Generate employment opportunities in rural and semi-urban areas.
- Promote entrepreneurship in the agro-processing sector.
Implementing Ministry
Ministry of Food Processing Industries (MoFPI), Government of India
Year of Launch
2017, with retroactive effect from 2016-17.
Components of PMKSY
PMKSY is an umbrella scheme consisting of the following 7 major sub-schemes:
| Sub-Scheme | Objective |
|---|---|
| 1. Mega Food Parks (MFP) | Creation of infrastructure for processing units in a cluster-based approach. |
| 2. Integrated Cold Chain and Value Addition Infrastructure | Cold storage, chilling units, value addition, and preservation infrastructure. |
| 3. Infrastructure for Agro-processing Clusters | Development of modern infrastructure to support groups of food processing units. |
| 4. Creation / Expansion of Food Processing & Preservation Capacities (CEFPPC) | Financial assistance to set up new or expand existing processing and preservation units. |
| 5. Backward and Forward Linkages | Link farmers and processors by providing supply chain infrastructure. |
| 6. Food Safety and Quality Assurance Infrastructure | Assistance for quality control laboratories to ensure food safety compliance. |
| 7. Human Resources and Institutions | Training, skill development, and capacity building for entrepreneurs and workers. |
PMKSY Sub-Schemes
1. Mega Food Parks (MFP)
- Aim: To create a hub-and-spoke model by linking agricultural production to the market.
- Facilities Provided:
- Central Processing Centres (CPCs)
- Primary Processing Centres (PPCs)
- Cold Storage, Dry Warehouses
- Common Effluent Treatment Plants (ETPs)
- Logistic Infrastructure
2. Integrated Cold Chain and Value Addition Infrastructure
- Objective: To maintain the cold chain integrity from farm to consumer.
- Focus Areas:
- Pre-cooling, chilling, and IQF facilities
- Reefer vans, cold rooms, blast freezers
- Value addition like sorting, grading, packaging
3. Agro-Processing Cluster Scheme
- Vision: Promote group-based enterprise development in rural areas.
- Components:
- Cluster-specific processing units
- Common Infrastructure: water, electricity, roads, labs
- Support for logistics and warehousing
4. Creation/Expansion of Food Processing & Preservation Capacities (CEFPPC)
- Target Group: Small and Medium Enterprises (SMEs)
- Supported Activities:
- Fruits & vegetables processing
- Dairy, meat, fish processing
- Ready-to-eat products
5. Backward and Forward Linkages
- Helps bridge the gap between farmers and processors.
- Assistance for:
- Harvesting equipment, mobile collection units
- Sorting, grading, packaging facilities
- Market access linkages for final products
6. Food Safety and Quality Assurance Infrastructure
- Focuses on creating a safe food ecosystem.
- Grants for:
- NABL-accredited labs
- Quality certification: HACCP, ISO, FSSAI
- Testing and validation centers
7. Human Resources and Institutions
- Develops a skilled workforce for the food processing sector.
- Offers:
- Training programs
- Entrepreneurship development
- Institutional support for skill-building
Budget Allocation & Funding Pattern
| Component | Central Assistance |
|---|---|
| Mega Food Parks | Up to ₹50 crore |
| Cold Chain Projects | Up to ₹10 crore |
| Agro-Processing Clusters | Up to ₹10 crore |
| CEFPPC | Up to ₹5 crore |
| Food Safety & Quality Infra | 50% to 75% of the cost (depending on location) |
| Backward & Forward Linkages | Up to ₹5 crore |
The funding pattern depends on the project location:
- General Areas:
- 35%-50% of eligible project cost
- Difficult Areas (NE, Hilly States, SC/ST entrepreneurs):
- 50%-75%
Target Beneficiaries
- Farmer Producer Organizations (FPOs)
- Self Help Groups (SHGs)
- Cooperatives
- Private sector entrepreneurs
- Startups in food processing
- Central and State PSUs
- NGOs
Infrastructure Development Under PMKSY
- Mega Food Parks:
- Common infrastructure like roads, power, water, ETPs, warehouses, and cold storage.
- Cold Chain:
- Refrigerated trucks, pre-cooling centers, ripening chambers.
- Agro-Processing Clusters:
- Multiple processing units with common facilities.
Achievements of PMKSY (as of 2024)
| Indicator | Status |
|---|---|
| Projects Sanctioned | 1000+ |
| Investment Generated | ₹15,000+ crore |
| Farmers Benefited | 30+ lakh |
| Employment Generated | 5+ lakh |
| Food Wastage Reduction | 10%–20% in project areas |
Benefits of PMKSY
- Improved Farmer Income through better price realization.
- Reduction in Post-Harvest Losses, particularly of perishables.
- Boost in Agro-Exports due to value-added products.
- Employment Creation in rural areas.
- Skill Development for workers in processing units.
- Increased Private Investment in agro-processing sector.
Application Process
- Project Proposal Submission through the online MoFPI portal.
- Evaluation & Appraisal by Project Appraisal Committee (PAC).
- Approval by Inter-Ministerial Approval Committee (IMAC).
- Disbursement of Grant-in-Aid in installments based on milestones.
Before vs After PMKSY
| Aspect | Before PMKSY | After PMKSY Implementation |
|---|---|---|
| Cold Chain Coverage | Fragmented and minimal | Integrated, end-to-end infrastructure |
| Farmer Income | Low, due to distress selling | Increased via value addition |
| Wastage | 30-40% for perishables | Reduced by 10–20% |
| Agro-Exports | Underutilized | Boosted with ready-to-export processed food |
| Rural Jobs | Seasonal, agriculture-dependent | Year-round processing-based jobs |
Link to Apply
Challenges
- Delay in land acquisition and regulatory clearances.
- Underutilization of infrastructure in some Mega Food Parks.
- Limited participation of small and marginal farmers.
- Coordination issues among multiple stakeholders.
- Logistics bottlenecks in remote areas.
Suggestions for Improvement
- Strengthen capacity-building programs for FPOs and SHGs.
- Promote cluster-based approaches in remote areas.
- Ensure last-mile connectivity for supply chains.
- Encourage Public-Private Partnerships (PPPs).
- Leverage digital technologies for better traceability and monitoring.
PMKSY & Doubling Farmers’ Income
PMKSY aligns directly with the Government’s goal to double farmers’ income by:
- Adding value at every stage of the agricultural value chain.
- Reducing post-harvest losses.
- Providing alternative markets through processing industries.
- Creating localized employment and entrepreneurial opportunities.
Conclusion
The Pradhan Mantri Kisan SAMPADA Yojana is a transformative step toward strengthening India’s agri-economy. By bridging the gap between farmers and markets, it ensures sustainable income generation, boosts rural employment, and significantly contributes to food security and export potential.
Its integrated approach toward infrastructure, capacity building, and supply chain development makes it one of the most comprehensive schemes for agro-processing in India.
