Cabinet Approves ₹6,520 Cr for PMKSY to Boost Food Safety and Cold Chains

In a significant policy decision aimed at enhancing India’s food processing capabilities and food safety ecosystem, the Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved a revised outlay of ₹6,520 crore for the Pradhan Mantri Kisan Sampada Yojana (PMKSY) for the ongoing 15th Finance Commission Cycle (2021–22 to 2025–26). This includes an additional allocation of ₹1,920 crore to expand and accelerate infrastructure development under the Central Sector Scheme.

This strategic move aligns with India’s vision to modernize its food supply chain, improve quality assurance mechanisms, and reduce post-harvest losses, while providing better market access and income opportunities for farmers and agri-entrepreneurs.

Strengthening the Backbone of Agri-Infrastructure

The Cabinet's approval covers two key components under the PMKSY:

1. Integrated Cold Chain and Value Addition Infrastructure (ICCVAI):

   • ₹1,000 crore has been allocated for setting up 50 multi-product food irradiation units.

   • These units will be instrumental in preserving a range of perishable food products such as fruits, vegetables, spices, meat, and seafood.

   • The irradiation units will significantly enhance food shelf life, reduce spoilage, and ensure hygienic handling, which is crucial for both domestic consumption and exports.

   • The estimated preservation capacity creation is projected to be between 20 to 30 lakh metric tonnes (LMT) per annum.

2. Food Safety and Quality Assurance Infrastructure (FSQAI):

   • Another portion of the ₹1,000 crore has been allocated to establish 100 NABL-accredited food testing laboratories (FTLs) under private sector participation.

   • These labs will be distributed across the country to improve access to modern food testing infrastructure.

   • The initiative will boost compliance with national and international food safety standards, benefiting food processors, exporters, and ultimately, consumers.

An additional ₹920 crore has been earmarked for sanctioning other projects under various component schemes of PMKSY during the remainder of the 15th Finance Commission Cycle.

Demand-Driven and Inclusive Implementation

Both the ICCVAI and FSQAI are demand-driven schemes, designed to respond to industry needs and local potential. The government will issue Expressions of Interest (EOIs) to invite proposals from eligible private and institutional entities across India.

These proposals will undergo a rigorous evaluation and approval process in line with scheme guidelines to ensure transparency and merit-based selection. By opening up the scheme to diverse stakeholders, the initiative aims to promote public-private partnerships, encourage regional entrepreneurship, and strengthen decentralized food value chains.

Transformative Impact on Food Processing and Agriculture

The expansion of the PMKSY is expected to deliver multi-dimensional benefits:

• Minimize post-harvest losses through cold chain and preservation solutions.

• Boost farmer income by enabling better value realization and market access.

• Promote food export growth through improved quality and safety standards.

• Create jobs across rural and semi-urban India in sectors like logistics, testing, processing, and marketing.

• Support 'Make in India' by enhancing domestic food processing capabilities.

This renewed focus on cold chain and testing infrastructure aligns with India’s National Logistics Policy, AatmaNirbhar Bharat Abhiyan, and commitments to food safety under international trade norms.

About PMKSY

The Pradhan Mantri Kisan Sampada Yojana, launched in 2017, is a flagship scheme of the Ministry of Food Processing Industries (MoFPI). It is designed to create modern infrastructure with efficient supply chain management from farm gate to retail outlet, aiming to supplement agriculture, reduce wastage, and ensure value addition.

Over the years, PMKSY has catalyzed investments in cold chains, agro-processing clusters, food parks, and food testing labs. With this additional funding, the scheme is expected to scale up its impact significantly by 2026.