MoFPI boosts post-harvest infrastructure in agriculture

The Ministry of Food Processing Industries (MoFPI) has undertaken initiatives to reduce post-harvest losses and boost value addition in agriculture. Under the Pradhan Mantri Kisan Sampada Yojana (PMKSY), MoFPI provides financial support for infrastructure projects like cold storage and processing facilities, approving 1,187 projects by October 2024.

In 2022, the Ministry of Food Processing Industries (MoFPI) engaged NABARD Consultancy Services Pvt. Ltd. (NABCONS) to conduct a study titled “Study to Determine Post-Harvest Losses of Agri Produce in India,” using the reference period of 2020-22.

Since 2016-17, MoFPI has been implementing the Central Sector Umbrella Scheme, Pradhan Mantri Kisan Sampada Yojana (PMKSY), to strengthen post-harvest infrastructure and processing facilities. This initiative aims to reduce post-harvest losses, enhance value addition, and promote the food processing sector.

PMKSY includes six components: (i) Mega Food Parks (discontinued as of April 1, 2021, except for committed liabilities), (ii) Integrated Cold Chain and Value Addition Infrastructure, (iii) Infrastructure for Agro-Processing Clusters, (iv) Creation of Backward and Forward Linkages (discontinued from April 1, 2021), (v) Creation/Expansion of Food Processing and Preservation Capacities, and (vi) Operation Greens.

Under PMKSY, MoFPI provides credit-linked financial assistance, including capital subsidies, to entrepreneurs for establishing food processing and preservation infrastructure such as cold storage to minimize post-harvest losses. As of October 31, 2024, 1,187 projects have been approved under this scheme.

Additionally, the Ministry of Agriculture and Farmers Welfare launched the Agriculture Infrastructure Fund (AIF) in July 2020 as part of the Atmanirbhar Bharat package. This scheme supports the development of post-harvest infrastructure and community farming assets by facilitating medium to long-term loans from banks and other financial institutions. Key focus areas include the establishment of cold storage, warehouses, and processing units to reduce crop wastage and boost value addition.

Union Minister of State for Food Processing Industries, Ravneet Singh Bittu, shared this information in a written reply to the Lok Sabha.