Support for Farmers to Reduce Post-Harvest Losses & Cold Chain Infrastructure

The Ministry of Food Processing Industries (MOFPI) implements the Pradhan Mantri Kisan Sampada Yojana (PMKSY) to reduce post-harvest losses and strengthen food processing facilities. The scheme provides financial assistance of up to ₹15 crore for setting up food processing industries. Eligible projects receive a 35% subsidy in General Areas and 50% in Difficult Areas, including SC/ST, Farmer Producer Organizations (FPOs), and Self-Help Groups (SHGs). The initiative also supports cold chain infrastructure to improve storage and transportation. These efforts help minimize food wastage, enhance farmer incomes, and boost rural employment.

• The Ministry of Food Processing Industries (MOFPI) executes the Pradhan Mantri Kisan Sampada Yojana (PMKSY) which serves as a central sector umbrella scheme to lower food waste after harvest and strengthen food processing facilities.

• The scheme enables businesses to access financial resources of up to ₹15 crore for food processing industrial setup through the following subsidy provisions:

  • 35% of eligible project cost in General Areas

  • 50% in Difficult Areas, and for SC/ST, Farmer Producer Organizations (FPOs), and Self-Help Groups (SHGs).

Component Schemes under PMKSY

• Integrated Cold Chain and Value Addition Infrastructure (Cold Chain scheme)

• Operation Greens (OG scheme) – Long-term intervention

• Agro Processing Cluster (APC scheme)

• Creation/Expansion of Food Processing & Preservation Capacities (CEFPPC scheme)

• Backward and Forward Linkages (CBFL scheme) (Discontinued from April 2021)

• Mega Food Park (MFP scheme) (Discontinued from April 2021)

Key Benefits & Objectives

• Infrastructure Development: Strengthens the farm-to-retail supply chain.

• The Farmer Income Enhancement program helps farmers minimize loss from end-of-harvest through improved price payments.

• Employment Generation: Provides jobs in rural areas through agro-based industries.

Integrated Cold Chain and Value Addition Infrastructure Scheme

• Objective: Reduce post-harvest losses of horticulture & non-horticulture produce.

• Financial Assistance:

  • 35% subsidy in General Areas.

  • 50% subsidy in Difficult Areas, SC/ST, FPOs, and SHGs.

  • Maximum grant: ₹10 crore per project.

• Key Components:

  • The scheme provides complete solutions for integrated cold storage facilities along with processing and preservation capabilities.

  • Irradiation facilities for perishables.

  • Seamless farm-to-market supply chain.

Implementation & Impact

• The Cold Chain Scheme operates on a demand-driven basis as the Ministry of Food Processing Industries seeks proposals from interested entities through Expressions of Interest (EoIs) based on available funding.

• Processing Capacity Created:

  • 112.35 lakh MT per annum.

  • 25.39 lakh MT per annum in preservation.

• The PMKSY projects reached 1,145 projects through approval while receiving a total funding amount of ₹4,746.89 crore.

• Under the Integrated Cold Chain Scheme 397 out of 397 proposed projects achieved completion while 286 were successfully finished.

Conclusion

The PMKSY and Cold Chain Infrastructure schemes function as vital mechanisms to reduce crop losses after harvest while improving farmers' market revenues and developing the Indian food processing industry. These schemes help advance modern supply chains while building better cold storage facilities which in turn support agricultural sustainability and rural employment and food security and enable the government's goal of doubling farmers' income.