PMKSY is a Central Sector umbrella scheme designed to create modern infrastructure for food processing, reduce wastage of agricultural produce, and enhance farmers’ income. The scheme integrates multiple component programmes such as cold chain development, agro-processing clusters, mega food parks and food safety infrastructure.
Unlike state-wise allocation schemes, PMKSY follows a demand-driven approach. Applications are invited from eligible entities across India through Expressions of Interest, and projects are approved strictly on merit based on scheme guidelines and availability of funds.
Reasons Behind Project Delays
The government clarified that delays in some projects are largely procedural rather than financial. Non-receipt of statutory clearances from agencies such as revenue authorities, town planning departments, electricity and water boards, pollution control boards and licensing authorities has slowed implementation in several cases.
Grant disbursement under PMKSY is linked to milestone-based compliance. Funds are released only after implementing agencies submit the required documents and fulfil all prescribed criteria, ensuring accountability and proper utilisation of public funds.
State-wise Progress Over Five Years
Data for the last five financial years shows wide participation across states. Maharashtra, Tamil Nadu, Gujarat, Karnataka and Uttar Pradesh are among the leading states in terms of project approvals and completions. Northeastern and hill states have also gradually increased participation under specialised components.
Overall, approvals peaked during 2022–23 and 2023–24, reflecting strong investor interest in food processing infrastructure during this period. Completions have followed steadily, with more projects becoming operational each year.
Fund Allocation and Utilisation
Under the 15th Finance Commission cycle, PMKSY received an allocation of ₹6,520 crore, including an additional ₹1,920 crore. As of January 16, 2026, total fund utilisation stands at ₹4,772.71 crore, which includes released funds as well as committed liabilities for ongoing projects.
The highest utilisation has been recorded under the Scheme for Creation or Expansion of Food Processing and Preservation Capacities, followed by the Integrated Cold Chain and Value Addition Infrastructure scheme. Mega Food Parks have achieved full utilisation of allocated funds.
Strengthening Safety, Skills and Market Linkages
Significant investments have also been made in food safety and quality assurance infrastructure, including the establishment of food testing laboratories. Human resource development components focusing on skill development and research have seen near-complete utilisation, supporting the long-term sustainability of the sector.
Other initiatives such as Operation Greens and backward and forward linkages aim to stabilise prices of perishable commodities and integrate farmers with processing and marketing networks.
Boost to Farmers and Rural Economy
By expanding food processing capacity, PMKSY seeks to reduce post-harvest losses, enhance value addition, and provide better price realisation to farmers. The scheme also generates employment in rural areas and strengthens India’s agri-export potential.