Chirag Paswan writes: Food processing has become a force for grassroots transformation

Indian Express

24-06-2025

In the makhana belts of Madhubani, Bihar, a quiet revolution is underway. Gyanish Kumar Mishra, a young entrepreneur, has transformed a traditional crop — foxnut, or makhana — into a nationally recognised brand of flavoured snacks. With support from the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme, he has built a thriving food venture that now exports to the United States and Canada. His story reflects the broader vision of India's food processing mission: To turn local strengths into global opportunities.
From Kashmir to the Andaman and Nicobar Islands, micro-entrepreneurs are embracing formalisation and entering new markets. There is a structural transformation underway, aligning the strength of rural India with the momentum of national growth.
Over the past 11 years, under the leadership of Prime Minister Narendra Modi, India has traversed a remarkable arc of change. With reforms to enhance Ease of Doing Business, industries today are empowered with greater autonomy and policy support. Amidst this broader transformation, the food processing sector has emerged as one of the most potent instruments of inclusive growth, agri-industrial integration, and global engagement.
A few years ago, the food processing landscape was fragmented, with rampant post-harvest losses and unrealised value from agricultural produce. In 2014, the gross value addition of the sector stood at Rs 1.34 lakh crore. Today, following sustained policy focus and institutional drive, that figure has risen to Rs 2.24 lakh crore.
At the forefront of this transformation stands the Ministry of Food Processing Industries, whose flagship schemes have created a supportive environment across the entire spectrum of the food processing sector. Under the Pradhan Mantri Kisan SAMPADA Yojana, 1,604 projects have been sanctioned, leading to the creation of over 250 lakh metric tonnes of annual processing and preservation capacity and more than Rs 22,000 crore in private investment. It has directly benefited over 53 lakh farmers and more than 7.6 lakh employment opportunities have been created.
Complementing this, the PMFME scheme was launched under the Atmanirbhar Bharat Abhiyan with an outlay of Rs 10,000 crore to empower unorganised micro food enterprises through formalisation, capacity building, and access to credit. Over 1.41 lakh loans amounting to Rs 11,205 crore have been sanctioned to micro-enterprises and seed capital has been extended to support more than 3.3 lakh members of self-help groups (SHGs).
A robust foundation for skill development and entrepreneurship has been laid under the scheme, with over one lakh individuals trained across the country. To foster innovation and support early-stage enterprises, 75 incubation centres have been approved. The scheme has also launched 17 distinctive regional brands, each rooted in local heritage.
Further along the value chain, the Production Linked Incentive Scheme for Food Processing Industries is catalysing industrial capacity and formal job creation. With committed investments of Rs 8,900 crore, the scheme has led to the creation of over 3.3 lakh jobs and added more than 67 lakh metric tonnes of processing capacity.
Recognising the critical role of infrastructure in ensuring food safety and export readiness, the Union Budget 2024–25 announced the establishment of 50 multi-product irradiation units to reduce post-harvest losses and enhance shelf life, alongside 100 NABL-accredited food testing laboratories to strengthen quality assurance across the value chain. Further, in a landmark step to promote regional specialties, the government has also announced the establishment of a National Makhana Board, aimed at boosting value addition, branding, and global positioning of this unique superfood from India.
The sector's industrial growth is a testament to a rapidly evolving institutional and innovation ecosystem. NIFTEM-Kundli and NIFTEM-Thanjavur, Institutes of National Importance, functioning under the aegis of the Ministry of Food Processing Industries are shaping the next generation of food technologists and entrepreneurs. A third NIFTEM is coming up in Bihar to harness the talent pool of eastern India. India's food-tech startup ecosystem is thriving as well, with over 5,000 innovators working on plant-based products, AI-enabled traceability, functional foods, and sustainable packaging.
India's growing leadership in the global food economy finds powerful expression through World Food India — the Ministry's flagship international platform for investment, innovation, and collaboration. Designed to showcase India's strengths across the food processing value chain, the event has evolved into a trusted forum for global stakeholders to engage with India's agri-food ecosystem.
Yet, the most profound impact of this decade remains rooted in rural India. Food processing has become a force for grassroots transformation. In Chhattisgarh, a humble tribal kitchen in Bastar, supported under the PMFME scheme, has transformed into a thriving enterprise by reimagining the use of Mahua flowers into value-added products like chocolates, energy bars, and tea. The firm has not only preserved indigenous heritage but carried it to national shelves and international markets.
As we mark 11 years of the NDA Government's commitment to good governance and inclusive growth, we look ahead with renewed resolve. Our goal is unambiguous: To ensure that every shelf in the world carries a product that proudly bears the name of India — and behind every such product stands a story of collective prosperity and national pride.
The writer is Minister of Food Processing Industries, Government of India