The Food Processing & Related Industries in India is a sector and a concept involving the transformation of raw agricultural produce into value-added food products. The sector is governed by the Ministry of Food Processing Industries (MoFPI), a federal ministry established in July 1988. MoFPI was created to solve the problem of low value addition and substantial post-harvest losses by developing a strong industry, generating rural employment, and introducing modern technology.
The sector's mechanism is driven by key government schemes, primarily the umbrella scheme Pradhan Mantri Kisan Sampada Yojana (PMKSY), approved in May 2017. PMKSY aims to create modern infrastructure and efficient supply chain management from farm gate to retail outlet, with components like Mega Food Parks and Integrated Cold Chain and Value Addition Infrastructure. A major recent addition is the Production Linked Incentive (PLI) Scheme for Food Processing Industry (PLISFPI), approved on March 31, 2021, with an outlay of ₹10,900 crore for FY 2021-22 to 2026-27, to create global manufacturing champions. Additionally, the PM Formalisation of Micro Food Processing Enterprises (PMFME) scheme, launched on June 29, 2020, supports micro-enterprises using the One District One Product (ODOP) approach.
The industry connects to the Food Safety and Standards Authority of India (FSSAI), established under the Food Safety and Standards Act, 2006, which took over the regulatory responsibilities from MoFPI. The PMKSY scheme, originally approved for 2016-20, was recently continued until March 31, 2026, with an allocation of ₹4,600 crore. However, some components like Mega Food Park and Creation of Backward & Forward Linkages were discontinued in the 15th Finance Commission cycle. The government has set a target to double the food processing level to 25% of total farm output over the next five years.