In a move that could transform India’s food processing sector and benefit millions of farmers, the Union Cabinet chaired by Prime Minister Narendra Modi has approved a total outlay of ₹6,520 crore for the ongoing Pradhan Mantri Kisan Sampada Yojana (PMKSY). This includes an additional ₹1,920 crore, aimed at strengthening food preservation, cold chain infrastructure, and quality testing during the 15th Finance Commission cycle (2021–22 to 2025–26).
What the Approval Covers
The fresh allocation has two key components:
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₹1,000 crore to set up 50 multi-product food irradiation units and 100 NABL-accredited food testing laboratories (FTLs).
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₹920 crore to fund projects under various existing PMKSY component schemes.
These efforts are designed to modernize India’s food processing backbone, from farm-level preservation to consumer-end safety checks.
What It Means for Farmers and the Food Sector
Food irradiation units—essentially advanced preservation hubs—will have a combined capacity of 20 to 30 lakh metric tonnes annually, helping reduce post-harvest losses and extend shelf life of perishables. This means that fruits, vegetables, spices, and other perishables can be stored and shipped longer distances without spoilage.
Meanwhile, the establishment of 100 private-sector food testing labs will ensure faster, NABL-certified quality checks. For farmers and processors alike, this will open doors to stricter export compliance and higher returns, especially in global markets where safety standards are critical.
“For farmers like us, this means fewer losses,” says Suresh Pawar, a pomegranate grower from Solapur. “If my produce can last longer and meet export standards, I get better prices. This is a big change for small farmers who depend on every harvest.”
Support for Cooperatives: ₹2,000 Cr Grant to NCDC
Alongside PMKSY, the Cabinet also cleared a ₹2,000 crore grant-in-aid for the National Cooperative Development Corporation (NCDC). Spread over four years (2025–26 to 2028–29), this grant will help NCDC leverage ₹20,000 crore from open markets, enabling loans for cooperatives in sectors like dairy, fisheries, sugar, textiles, and food processing.
This decision is expected to benefit 2.9 crore members across 13,288 cooperative societies, giving them access to cheaper credit for new projects, plant expansions, and working capital needs.
A Step Toward Safer, Smarter Food Systems
By linking cold chain, preservation units, and food safety labs, the scheme aims to reduce wastage and build trust in India’s food supply. For a country that is one of the largest producers of fruits, vegetables, and grains but still struggles with post-harvest losses, this move could be transformative.
With these approvals, PMKSY doesn’t just strengthen infrastructure—it connects farmers, cooperatives, and food entrepreneurs, ensuring that India’s produce reaches markets fresh, safe, and profitable. As the government eyes a stronger agri-export footprint, this investment may be the push the sector has long needed.
“We grow the food, but we also need systems that protect it,” says Pawar. “If storage and testing improve, it’s not just good for farmers—it’s good for everyone who eats.”
