As India continues its journey of commemorating Azadi Ka Amrit Mahotsav, the Ministry of Food Processing Industries (MoFPI) is playing a pivotal role in transforming the rural economy through strategic support to Farmer Producer Organisations (FPOs), Self-Help Groups (SHGs), and cooperatives. With a clear focus on inclusive growth and value addition, the Ministry is championing initiatives that enable small farmers and rural entrepreneurs to participate in and benefit from the expanding food processing sector.
To accelerate this transformation, MoFPI is actively implementing several major schemes:
Pradhan Mantri Kisan SAMPADA Yojana (PMKSY)
Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)
Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME)
These schemes are designed to boost infrastructure development, encourage innovation, and formalize micro food processing units, thereby creating a more resilient and efficient food supply chain.
FPOs, SHGs, and cooperatives are integral to this mission, and the Ministry has ensured their eligibility for grants and support under these schemes. This recognition not only strengthens the collective capabilities of smallholder farmers and micro-entrepreneurs but also facilitates better access to technology, finance, and markets.
As of 30th June 2025, MoFPI has approved funding for:
166 proposals from FPOs
1,228 proposals from SHGs
61 proposals from cooperatives
These numbers represent not just financial investment, but a broader commitment to empowering grassroots organizations and women-led initiatives. SHGs, in particular, have been instrumental in mobilizing women in rural areas, and with support from MoFPI, many are now venturing into food processing with increased confidence and capability.
Under PMKSY, the emphasis is on creating modern infrastructure with efficient supply chain management from farm gate to retail. The scheme supports the setting up of mega food parks, cold chain infrastructure, and agro-processing clusters—facilitating employment generation and reducing wastage of perishable commodities.
The PLISFPI, on the other hand, encourages innovation and competitiveness in the sector by incentivizing medium and large-scale food processors. FPOs and cooperatives aligned with larger value chains are increasingly finding opportunities to scale under this scheme.
Meanwhile, PMFME takes a bottom-up approach by focusing on micro-entrepreneurs, providing financial assistance, capacity building, and skill training—making it highly accessible to SHGs and small FPOs.
These efforts are in alignment with the vision of Azadi Ka Amrit Mahotsav, which celebrates 75 years of India’s independence with a focus on building a self-reliant, inclusive, and prosperous nation. By supporting FPOs, SHGs, and cooperatives, the Ministry of Food Processing Industries is laying the groundwork for a vibrant rural economy driven by value-added agriculture, women empowerment, and entrepreneurship.