Government initiatives aimed at strengthening the food processing sector and promoting millet-based products are delivering significant results across India, with large-scale investments, expansion of processing infrastructure, and strong growth in micro food enterprises. The Ministry of Food Processing Industries has implemented a combination of schemes including the Production Linked Incentive Scheme for Food Processing Industry, the Pradhan Mantri Kisan SAMPADA Yojana and the PM Formalisation of Micro Food Processing Enterprises Scheme to expand processing capacity, strengthen value chains and promote entrepreneurship in the sector.
The information was provided by Ravneet Singh, Minister of State for Food Processing Industries, in a written reply in the Lok Sabha.
₹793 Crore Approved For Millet Processing Under PLI Scheme
To promote millet-based products and encourage value addition in the food processing sector, the Government introduced a dedicated component for millet-based products under the Production Linked Incentive Scheme for Food Processing Industry. The scheme carries a total outlay of ₹800 crore and aims to incentivise the manufacturing and sale of millet-based products in domestic as well as export markets.
According to the Ministry of Food Processing Industries, approvals amounting to ₹793.27 crore have already been granted to 29 applicants under this component of the scheme. The approved applicants include eight large companies and twenty-one small and medium enterprises engaged in millet processing and product development.
The scheme focuses on expanding millet usage in processed food products and encouraging the development of new millet-based consumer products through incentives linked to sales growth. The incentives are admissible only when the entire chain of manufacturing processes takes place within India.
The scheme has already contributed to a sharp rise in the market value of millet-based products produced by approved beneficiaries. Sales of millet-based products under the scheme increased from ₹35 crore in 2020-21 to ₹814 crore in 2024-25.
Similarly, procurement of millets by the approved applicants increased significantly from 1,092 metric tonnes in 2020-21 to 16,130 metric tonnes in 2024-25, reflecting strong expansion in demand for millets as a processed food ingredient.
Support For Millet Entrepreneurs Through PMFME Scheme
The PM Formalisation of Micro Food Processing Enterprises Scheme has also played a key role in promoting millet processing at the grassroots level. Under the One District One Product initiative of the scheme, millet-based products have been identified as the focus product in 21 districts across the country.
To support entrepreneurs engaged in millet processing, Millet Mahotsav events were organised in 30 districts across various states and union territories during the International Year of Millets 2023. These events aimed to promote millet-based entrepreneurship, create awareness about millet processing opportunities and strengthen the micro food processing ecosystem.
As of 31 December 2025, a total of 4,612 micro food processing enterprises engaged in millet processing have been approved under the PMFME scheme across the country. These units have received subsidies amounting to ₹91.20 crore to support their establishment and expansion.
In addition, the scheme provides financial support to Farmer Producer Organisations, Self Help Groups, cooperatives and special purpose vehicles involved in processing millet-based products for branding, packaging and marketing initiatives.
Infrastructure Support Through PMKSY
The Pradhan Mantri Kisan SAMPADA Yojana provides infrastructure support for the food processing sector, including the creation and expansion of food processing and preservation capacities.
Under the Creation or Expansion of Food Processing and Preservation Capacities component of the scheme, one food processing unit related to millet processing has been approved so far.
The scheme focuses on developing modern infrastructure, strengthening supply chains, promoting value addition and reducing post-harvest losses in the agricultural sector.
Expansion Of Micro Food Processing Enterprises
Parallel to the push for millet processing, the PM Formalisation of Micro Food Processing Enterprises Scheme has significantly expanded the formal food processing ecosystem across the country.
As of 31 December 2025, a total of 59,202 micro food processing enterprises have been formalised under the scheme since its inception.
The programme has mobilised a cumulative investment of ₹17,015.8 crore across the country, demonstrating strong participation by small entrepreneurs in the food processing sector.
The scheme has also generated significant employment opportunities. According to the Ministry of Food Processing Industries, a total of 5,18,121 direct and indirect jobs have been created through enterprises supported under the programme.
Strong Participation From States
Several states have seen significant participation in the formalisation of micro food processing enterprises under the scheme.
Maharashtra recorded the highest number of formalised enterprises with 13,722 units, followed by Tamil Nadu with 8,350 units, Madhya Pradesh with 5,721 units, Kerala with 5,139 units and Bihar with 4,938 enterprises.
Other states with notable participation include Karnataka with 3,507 enterprises, Uttar Pradesh with 3,650 enterprises, Telangana with 2,559 enterprises and Andhra Pradesh with 2,215 enterprises.
The scheme has also reached smaller states and union territories, enabling entrepreneurs in regions such as Arunachal Pradesh, Ladakh, Mizoram and Sikkim to participate in food processing activities.
Financial Support And Credit Linkages
The PMFME scheme also focuses on improving access to credit for micro food processing enterprises.
Loans have been sanctioned for 75,456 women-led micro food processing enterprises, supporting the participation of women entrepreneurs in the sector.
In addition, loans have been sanctioned for 1,427 Self Help Groups and 270 Farmer Producer Organisations engaged in food processing activities.
A total of 24,445 loans have also been sanctioned in aspirational districts to strengthen entrepreneurship in economically weaker regions.
Specific regions have also benefited from the scheme. For example, in Nabarangpur Lok Sabha constituency in Odisha, loans have been sanctioned for 49 micro food processing enterprises including 21 women entrepreneurs and six Self Help Groups.
Infrastructure And Incubation Facilities
The scheme also supports common infrastructure and incubation facilities for the food processing sector.
As of 31 December 2025, 108 loans have been sanctioned for the creation of common infrastructure facilities, out of which 88 loans have already been disbursed and 59 facilities have become operational.
In addition, 76 proposals for incubation centres have been approved across 24 states and union territories, with 23 incubation centres already commissioned to support entrepreneurs with training, technology access and product development.
Market Access And Branding Support
To help micro food processing enterprises improve their market presence, the scheme provides grant-in-aid support for branding and marketing activities.
The Ministry has also signed a Memorandum of Understanding with the Government e Marketplace portal to facilitate the marketing of products manufactured by units supported under the scheme.
Entrepreneurs are also supported through participation in national and international exhibitions, buyer seller meets and integration with e commerce platforms to enhance visibility and market access.
Monitoring And Implementation Support
The Ministry regularly conducts meetings with lending banks and state governments to improve credit flow and address implementation challenges faced by micro food processing enterprises.
Issues related to financing and implementation are also reviewed at the Department of Financial Services level and during State Level Bankers Committee meetings.
Periodic review meetings are conducted at the state and district levels to ensure smooth implementation and resolve operational bottlenecks.
Officials said that the combined impact of the Production Linked Incentive Scheme for Food Processing Industry, the Pradhan Mantri Kisan SAMPADA Yojana and the PM Formalisation of Micro Food Processing Enterprises Scheme is strengthening the entire value chain of the food processing sector while creating employment opportunities and promoting entrepreneurship across rural and urban India.
