The Union Cabinet has approved a total outlay of ₹6,520 crore for Pradhan Mantri Kisan Sampada Yojana (PMKSY) to support the farmers and strengthen farm-to-market infrastructure in India. This budget also includes an additional ₹1,920 crore.
Transformative Outcomes Under PMKSY
Since its launch, a total of 1,601 projects have been approved under various components of the PMKSY as of June 2025.
Out of these, 1,133 projects are now operational/completed, creating a processing and preservation capacity of 255.66 lakh metric tonnes (MT) per year. Once fully completed, these projects are expected to attract investments worth ₹21,803.19 crore, benefiting around 50.27 lakh farmers.
PMKSY at a Glance
Pradhan Mantri Kisan Sampada Yojana (PMKSY) — earlier known as the SAMPADA scheme (Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters) — was approved in May 2017.
The scheme aims to build modern infrastructure for the food processing sector. It focuses on creating a smooth and efficient supply chain, from the farm gate to the retail shop. This scheme helps farmers procure better prices for their produce, reduces wastage, and supports the goal of doubling farmers’ income. It also creates jobs, especially in rural areas, increases food processing levels, and boosts exports of processed food products.
The Food Processing Sector currently accounts for around 1.39% of the total Gross Value Added (GVA) and contributed 7.93% and 9.46% of GVA in the Manufacturing and Agriculture sectors, respectively, in 2023–24.
The sector’s GVA has risen significantly from ₹1.30 lakh crore in 2013–14 to ₹2.24 lakh crore in 2023–24. GVA is the key economic indicator used to measure the contribution of different sectors to a country’s overall economic output and growth.
Schemes Implemented Under PMKSY
To boost food processing and reduce agricultural waste, several targeted schemes have been approved under the PMKSY. These schemes aim to build modern infrastructure, enhance value addition, and ensure better returns for farmers.
Integrated Cold Chain & Value Addition Infrastructure: To create uninterrupted cold chains from farm to market to reduce post-harvest losses and ensure value addition.
Creation/ Expansion of Food Processing/ Preservation Capacities: To support new and existing units to increase processing levels, improve shelf life, and reduce wastage of agri-produce.
Infrastructure for Agro-Processing Clusters: To develop processing facilities near production areas with complete infrastructure and farmer-to-market linkages.
Food Safety & Quality Assurance Infrastructure: To establish food testing labs to ensure quality control and meet domestic and global food safety standards.
Human Resources & Institutions: To promote research and skill development to support innovation, packaging, food safety, and standardisation in food processing.
In November 2018, an additional scheme called Operation Greens (OG) was added to PMKSY with a budget of ₹500 crore, focusing on stabilising prices of Tomato, Onion, and Potato by offering financial help for transport and storage.
PMKSY was launched to tackle challenges like post-harvest losses, low processing levels, and poor farmer incomes.
The scheme aims to build a strong and modern agri-food system. PMKSY helps farmers connect directly to markets and get better prices. With more investment, job creation, and better supply chains, the scheme is not just solving today’s problems but also securing the future of Indian agriculture.