Central Government Schemes & Grants(MOFPI)

Central Government Schemes & Grants (MOFPI)

(Ministry of Food Processing Industries – India)

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Central Government Schemes & Grants under MOFPI

The Ministry of Food Processing Industries (MOFPI), Government of India, offers a wide range of schemes, grants, and financial assistance programs aimed at strengthening the food processing ecosystem. These initiatives support entrepreneurs, farmer groups, MSMEs, startups, cooperatives, SHGs, and large-scale industries in setting up modern food processing units, upgrading technology, improving supply chains, and enhancing value addition.

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A flagship scheme designed to support micro & small food businesses.

PM-FME Scheme (PM Formalisation of Micro Food Processing Enterprises)

Key Benefits

35% Capital Subsidy (₹10 lakh limit per unit)
Assistance for: -Technology upgradation
-Machinery purchase
-Branding & marketing
-Quality certifications
Support for FPOs, SHGs, Cooperatives & Micro Units
Seed capital for SHGs: up to ₹40,000 per member

Who Can Apply?

Micro food processors
Existing tiny units seeking modernisation
FPOs/SHGs/Cooperatives
Individual entrepreneurs

Encourages large-scale manufacturing and global competitiveness.

Production Linked Incentive (PLI) Scheme for Food Processing

Key Benefits

Incentives for incremental sales of eligible food products
4–10% incentive for selected categories
Financial support for: -Integrated plants
-Branding in international markets

Eligible Sectors

Ready-to-eat/ready-to-cook foods
Fruits & vegetables
Marine products
Mozzarella cheese
Organic foods
Innovative/health-oriented products

MoFPI’s capital subsidy scheme for setting up new units or expanding existing ones.

CEFPPC Scheme – Creation/Expansion of Food Processing & Preservation Capacities

Key Benefits

35%–50% Capital Subsidy
Support for: -New processing units
-Capacity expansion
-Technology modernization
-Cold chain & packaging facilities
Support for FPOs, SHGs, Cooperatives & Micro Units
Seed capital for SHGs: up to ₹40,000 per member

Eligible Components

Buildings, civil works
Plant & machinery
Utilities (steam, refrigeration, ETP, solar, automation)
Quality control labs
Packaging units

A mega umbrella scheme aimed at infrastructure development and value addition in the food processing sector.

PMKSY – Pradhan Mantri Kisan SAMPADA Yojana

Major Sub-components:

Mega Food Parks
Integrated Cold Chain & Value Addition Infrastructure
Agro-Processing Clusters (APC)
Backwards–Forward Linkages
Food Testing Laboratories
Human Resources & Training

Benefits

Capital subsidy
Infrastructure support
Supply chain strengthening
Cluster-based development

Supports the creation of modern cold chain systems from farm to retail.

Cold Chain, Value Addition & Preservation Infrastructure Scheme

Assistance Includes

Packhouses
Pre-coolers
Ripening chambers
Blast freezers
IQF machinery
Reefer vehicles
Frozen storage

Grant Support

Up to 35%–50% of the eligible project cost
Higher benefits for North Eastern States & hilly regions

For establishing or modernising food testing facilities.

Food Testing Laboratories Scheme

Benefits

Capital grant for equipment
Infrastructure support
Accreditation support (NABL)

Eligible Applicants

Private labs
R&D institutions
State agencies
Food parks
Universities

Aims to stabilise the supply chain & reduce post-harvest losses.

Operation Greens – TOP to TOTAL

Benefits

50% subsidy on:
Support for short-term price stabilisation
Funding for integrated value chain projects

Grant Support

Up to 35%–50% of the eligible project cost
Higher benefits for North Eastern States & hilly regions

Scheme	Purpose	Subsidy / Grant	Eligible Entities	Key Components Covered	Typical Project Size
CEFPPC (Creation/Expansion of Food Processing & Preservation Capacities)	Set up new units or expand existing food processing plants	35–50% Capital Subsidy	Proprietorships, Partnerships, Pvt Ltd, LLP, FPOs	Plant & machinery, civil works, utilities, QC lab, packaging	₹5 Cr – ₹50 Cr
PMFME (PM Formalisation of Micro Food Processing Enterprises)	Support micro & small food processors with technology & branding	35% subsidy up to ₹10 lakh	Individual units, SHGs, FPOs, Cooperatives	Machinery upgrade, branding, packaging, certifications	₹5 lakh – ₹25 lakh
PMKSY – Mega Food Parks	Develop an integrated food processing infrastructure	Varies by component	SPVs, Industry Consortia	Land, roads, common facilities, cold chain, utilities	₹100 Cr – ₹200 Cr
PMKSY – Cold Chain Scheme	Build a modern cold chain from farm to consumer	35–50% subsidy	Companies, LLPs, Cooperatives, FPOs	Packhouse, pre-cooling, cold rooms, IQF, reefer vans	₹10 Cr – ₹60 Cr
APC (Agro Processing Cluster)	Cluster-based infrastructure for processing units	35–50% support	Pvt Ltd, LLP, SPVs	Roads, drainage, common utilities, processing shed	₹15 Cr – ₹70 Cr
Operation Greens (TOP to TOTAL)	Stabilise the supply chain for perishables	50% subsidy	Farmers, Traders, FPOs, Companies	Storage, transportation, logistics, processing	₹50 lakh – ₹20 Cr
Food Testing Labs Scheme	Set up or modernise food testing labs	Up to 50% grant	Private labs, institutes, FPOs, companies	Lab equipment, accreditation setup
PLI Scheme (Food Processing)	Incentives for large food manufacturers	Incentives for incremental sales	Large food companies, SMEs in selected categories	Product expansion, branding, export promotion	₹10 Cr – ₹200 Cr+