Punjab has long been at the forefront of India’s agri and food processing sector, leveraging its rich agricultural heritage to foster a thriving ecosystem for businesses. The state’s strategic initiatives, supported by both Central and State Government schemes, aim to empower entrepreneurs by driving innovation, enhancing competitiveness, and promoting value addition to agricultural produce. These schemes not only provide financial assistance but also focus on creating world-class infrastructure and offering skill development opportunities to entrepreneurs.
From credit-linked subsidies and grants to the establishment of integrated cold chains and mega food parks, these programs are tailored to address the diverse needs of stakeholders in the sector. Entrepreneurs can also benefit from support for research and development, food testing laboratories, and capacity-building initiatives. Together, these efforts aim to transform Punjab into a hub for food processing, ensuring increased profitability for businesses and better value realisation for farmers.
This blog explores these schemes in detail, offering a comprehensive guide to the financial, technical, and institutional support available to aspiring entrepreneurs and established players alike in the food processing industry.
1. Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme
The PMFME scheme, launched by the Ministry of Food Processing Industries (MoFPI), aims to enhance the competitiveness of micro-enterprises in the unorganised food processing sector and promote formalisation.
Objectives:
- Improve competitiveness of existing micro food processing enterprises.
- Support Farmer Producer Organisations (FPOs), Self-Help Groups (SHGs), and Producer Cooperatives along the value chain.
Who Can Avail the Scheme?
- Individual micro food processing units (organised and unorganised).
- FPOs, SHGs, Producer Cooperatives, and State-Level Technical Institutions.
Subsidy Provided:
- Credit-linked capital subsidy of 35% of eligible project cost, up to a maximum of INR 10 lakh per unit for individual enterprises.
- Grants of 35% for FPOs and Producer Cooperatives, with credit linkage and training support.
- Seed Capital of INR 40,000 per member for SHGs, along with investment support and training.
- Support for common infrastructure such as warehouses, cold storage, and incubation centres.
- Branding, marketing support, and capacity building assistance.
How to Apply:
- Visit the State Government portal: www.pmfme.punjabagro.gov.in.
- Submit DPR and bank ‘in-principle approval’.
Contacts:
- Central Level: www.mofpi.gov.in
- State Level: Punjab Agro Industrial Corporation (PAIC): www.punjabagro.gov.in
- Detailed Notification
2. Production Linked Incentives (PLI) for Food Processing Industries
This scheme aims to support global food manufacturing champions and encourage the creation of strong Indian food brands in international markets.
Who Can Avail the Scheme?
- Proprietary Firms, Partnerships, LLPs, Companies, Co-operatives, and SMEs engaged in food product manufacturing.
- SMEs involved in innovative/organic food products.
Subsidy Provided:
- Incentives for manufacturers of food segments such as:
- Ready-to-Cook/Ready-to-Eat (RTC/RTE) foods, including millet-based products.
- Processed fruits and vegetables, marine products, and mozzarella cheese.
- Support for branding and marketing to promote Indian food products globally.
How to Apply:
- Register at the PLI portal: https://plimofpi.ifciltd.com.
- A unique Application ID will be issued upon successful submission.
Contacts:
- Central Level: www.mofpi.gov.in
- State Level: Punjab Department of Food Processing Industries
3. Mega Food Park Scheme (PM Kisan Sampada Yojna)
This scheme adopts a cluster approach to create state-of-the-art infrastructure for food processing units within well-defined agri/horticultural zones. Mega Food Park typically consists of supply chain infrastructure including collection centres, primary processing centers, central processing centers, cold chain and around 25-30 fully developed plots for entrepreneurs to setup food processing units.
Who Can Avail the Scheme?
- Industry Associations and Industrialists forming a Special Purpose Vehicle (SPV) under Companies Act 2013.
- State Government entities and cooperatives.
Subsidy Provided:
- 50% capital grant of the eligible project cost.
- Promotional activities funded up to 5% of the overall grants.
How to Apply:
- Register on the Sampada Portal: https://sampada-mofpi.gov.in.
Contacts:
- Central Level: www.mofpi.gov.in
- State Level: PAIC: https://punjabagro.gov.in
4. Integrated Cold Chain and Value Addition Infrastructure
This scheme focuses on creating cold chain infrastructure from the farm gate to the consumer covering creation of infrastructure facility along the entire supply chain viz. pre-cooling, weighing, sorting, grading, waxing facilities at farm level, multi-product/multi-temperature cold storage, CA storage, packing facility, IQF(Individual Quick Freezing), Blast freezing in the distribution hub and reefer vans, mobile cooling units for facilitating distribution of non-horticulture, horticulture, fish/marine (except shrimp), dairy, meat and poultry.
Who Can Avail the Scheme?
- Partnership Firms, Companies, Cooperatives, SHGs, FPOs, and NGOs.
Subsidy Provided:
- 35% grant for storage infrastructure, pre-cooling units, and transport infrastructure.
- 50% grant for value addition and processing infrastructure.
- Financial assistance for irradiation facilities.
How to Apply:
- Register on the Sampada Portal: https://sampada-mofpi.gov.in.
Contacts:
- Central Level: www.mofpi.gov.in
- State Level: PAIC: https://punjabagro.gov.in
5. Integrated Cold Chain and Value Addition Infrastructure
This scheme focuses on the creation of processing and preservation capacities and modernisation/expansion of existing food processing units with a view to increase the level of processing, value addition leading to reduction of wastage.
Who Can Avail the Scheme?
State PSUs/ Joint Ventures/Farmer Producers Organisation (FPOs)/ NGOs/Cooperatives/ SHG’s/ Pvt. Ltd companies/ individuals proprietorship firms engaged in establishment/up-gradation/modernisation of food processing units are eligible.
Subsidy Provided:
- 35% grant for cost of plant & machinery and Technical Civil work.
- 25% grant for cost of ‘Utilities’ essential for the plant i.e. Water Pipeline, DG set, Boiler, Solid Waste treatment plant, ETP etc.
How to Apply:
- Register on the Sampada Portal: https://sampada-mofpi.gov.in.
Contacts:
- Central Level: www.mofpi.gov.in
- State Level: PAIC: https://punjabagro.gov.in
6. Agro Processing Clusters Scheme
This scheme promotes the development of modern infrastructure for food processing units through a cluster-based approach by linking groups of producers/farmers to the processors and markets through well-equipped supply chain with modern infrastructure.
- Basic enabling infrastructure includes site development, development of Industrial plots, boundary wall, roads, drainage, water supply, electricity supply including power backup, effluent treatment plant, parking bay, weigh bridges, common office space, etc.
- Core infrastructure: Includes food testing lab., cleaning,grading, sorting and packing facilities, stream generation boilers, dry warehouse, cold storage, pre-cooling chambers, IQF, specialised packaging, other common processing facilities, etc.
Who Can Avail the Scheme?
- Government entities, PSUs, Joint Ventures, Cooperatives, SHGs, FPOs, and private sector enterprises.
Subsidy Provided:
- 35% grant of eligible project cost for general category.
- 50% grant for SC/ST entrepreneurs (up to INR 10 crore per project).
How to Apply:
- Register on the Sampada Portal: https://sampada-mofpi.gov.in.
Contacts:
- Central Level: www.mofpi.gov.in
- State Level: PAIC: https://punjabagro.gov.in
7. Setting Up/Upgradation of Food Testing Laboratories
The scheme strengthens food testing infrastructure to ensure safe and hygienic food products.
Who Can Avail the Scheme?
- Central/State Government organisations, universities, private sector organisations, and R&D labs.
Assistance Provided:
- Government Organisations are eligible for grant-in-aid of
- Entire (100%) cost of the eligible cost of the approved equipment
- 2% of the eligible cost of the approved equipment or INR 15.00 lakh, whichever is lower, towards Technical Civil Work (TCW) and Furniture & on lump-sum basis.
- Private Organisations/entities are eligible for grants-in-aid of
- 50% (70% for SC/ST applicants) of the eligible cost of the equipment and
- 2% of the eligible cost of approved equipment or INR 15.00 lakh, whichever is lower, towards Technical Civil Work (TCW) and Furniture & Fixtures (as per paragraph 3 (b) above) on lump-sum basis.
- When the Ministry itself establishes Food testing Labs. Or sponsors such projects, there would be no ceiling to financial assistance and grants-in-aid to be provided to such FTL will be decided on case to case basis with the approval of competent authority.
Contact:
- Central Level: www.mofpi.gov.in
- State Level: PAIC: https://punjabagro.gov.in
8. Research & Development in Food Processing Sector
The scheme promotes demand-driven R&D to benefit the food processing industry.
Who Can Avail the Scheme?
- Universities, IITs, government organisations, Government funded Organisations, R&D labs. And CSIR recognised R&D units in private sector.
Assistance Provided:
- For the Government organisatiolns/universities.institutions:
Grant-in-aid is given for 100% of cost of equipment, consumables and expenditure related to salaries for project staff specific to the project for maximum period of three years.
- Funding pattern for Private Organisations/universities/institutions:
Grant-in-aid is given to the tune of 50% of equipment only
- Ministry’s sponsored projects:
100% Grant is provided only to public funded organisations of repute for cutting edge areas of research leading to development of innovation products, processes, manufacturing practices and technology.
Contact:
- Central Level: www.mofpi.gov.in
- State Level: PAIC: https://punjabagro.gov.in
9. Scheme of Human Resources and Institution Skill Development (PM Kisan Sampada Yohna)
This scheme aims to develop a skilled workforce in various food processing sectors, from floor workers to quality control supervisors, in alignment with the National Skill Development Corporation (NSDC) projections.
Who Can Avail the Scheme?
- Recognized universities and departments of food processing technology.
- Colleges and institutions affiliated with government universities.
- Professional agencies with experience in training development.
- National-level food processing industry associations and chambers of commerce.
Assistance Provided:
- Development of course curriculum and training modules in English, Hindi, and regional languages.
- Grants-in-aid up to INR 5 lakhs per job role for training modules (print and multimedia).
- Assistance for infrastructure creation for skill training centers.
- Grants-in-aid covering up to 50% of plant & machinery costs for NSQF validated training modules (up to INR 15 lakh per module).
Contact:
- Central Level: www.mofpi.gov.in
- State Level: PAIC
10. Operation Greens Scheme
This scheme has two components:
- Long Term Intervention- (Integrated Value Chain development Projects):
- Enhancing value realisation of farmers by targeted interventions to strengthen production clusters and FPOs, and linking/connecting the farmers with the market.
- Reduction in post-harvest losses by creation of farm fate infrastructure, development of suitable agri-logistics, creation of appropriate storage capacity linking consumption centre.
- Short Term interventions:
- Protecting the growers of eligible Crops from making distress safe and to reduce post-harvest losses.
Who Can Avail the Scheme?
- Individual farmers, Group of Farmers, FPOs, Co-operative Societies, State Marketing/Co-operative Federation, Food Processors, Licensed Commission Agent, Exporters and retailers.
Assistance Provided:
- Individual Value Chain Development Projects: Maximum grants-in-aid would be INR 15 crore per project.
- Standalone Post-Harvest Infrastructure Projects: Maximum grants-in-aid would be INR 10 Crore per project.
NOTE: Grants-in-aid will be considered @35% of eligible project cost (50% for SCs/STs).
- Quality production: Maximum 5% of total allocation under the Scheme may be utilised for the quality production.
- Subsidy is provided @50% on the following two components as per the provisions of scheme guidelines:
- Transportation
- Hiring of appropriate storage facilities for TOP Crops.
Contact:
- Central Level: www.mofpi.gov.in
- State Level: PAIC
Conclusion
These flagship schemes provide a robust platform for entrepreneurs to establish and scale their food processing businesses. By offering financial assistance, infrastructure support, and capacity-building initiatives, both the Central and Punjab State Governments are fostering a vibrant business ecosystem that aligns with Punjab’s leadership in the agri-processing sector. Entrepreneurs can leverage these opportunities to drive innovation, value addition, and economic growth.
For more details, visit the Ministry of Food Processing Industries (www.mofpi.gov.in) and Punjab Agro Industries Corporation (www.punjabagro.gov.in).
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