The agricultural sector has long been the backbone of India’s economy, contributing significantly to the country’s GDP while employing a vast majority of its rural population. However, this sector faces numerous challenges, ranging from resource inefficiencies to infrastructural deficits, which hinder its full potential. To address these challenges, the Government of India has introduced various initiatives, one of the most notable being the PM Kisan Sampada Yojana (PMKSY). PMKSY launched with ₹6,000 crore for the period of 2016-2020. This scheme aims to enhance the processing of agricultural products, bolster supply chain management, and ultimately empower farmers through increased income and productivity. The Ministry of Finance stated that 1,646 food processing projects—including R&D and food testing labs—had been approved by the end of 2024 under the PM Kisan Sampada Yojana’s numerous sub-schemes.
PM Kisan Sampada Yojana: High impact Revolution for Agri-Processing in India
From 2016 to 2017, the Ministry of Food Processing Industries (MoFPI) has been carrying out the Pradhan Mantri Kisan Sampada Yojana (PMKSY). In addition to creating 13.42 lakh jobs and providing benefits to 51.24 lakh farmers, these initiatives are anticipated to create 428.04 LMT of processing and preservation capacity annually. The government stated that it is dedicated to further encouraging private and public investment in post-harvest activities such as aggregation, modern storage, efficient supply chains, primary and secondary processes, to ensure faster growth of the agriculture and food processing sector.
Through the development of contemporary infrastructure with effective supply chain management from the farm gate to the retail outlet, the government is working to raise the degree of processing and improve the export of processed foods.
Micro Food Processing Enterprises’ (PMFME) formalization Since 2020–21, MoFPI has been implementing Yojana, a centrally funded program that offers business, technical, and financial assistance for the improvement of microfood processing businesses. It’s the first SC ever. for complete guidelines see the link https://mofpi.gov.in/Schemes/agro-processing-cluster/download-guidelines-2
Objectives and Components of the Yojana
The PM Kisan Sampada Yojana is designed with a multifaceted approach towards the agricultural ecosystem. It primarily targets the food processing sector, aspiring to create a conducive environment for all stakeholders involved in agriculture, from farmers to industrialists. The objectives of this initiative can be broadly categorized into the following areas:
1.Enhancing Food Processing Infrastructure
One of the major components of the Yojana is the establishment of modern food processing facilities. By promoting the setting up of food parks and processing units across the country, the scheme aims to reduce food wastage significantly. The realization that nearly 30-40% of fruits and vegetables are wasted due to inadequate processing and storage facilities underscores the need for such infrastructure.
2.Promoting Value Addition
The initiative encourages the creation of a value chain in agriculture, thereby adding value to raw agricultural products. This not only makes the products more appealing to consumers but also increases the profitability for farmers. By facilitating food processing at various stages, the Yojana envisages improving the quality and longevity of agricultural produce.
3.Boosting Employment and Entrepreneurship
By creating job opportunities within the food processing industry, the scheme not only aids in employment generation but also fosters entrepreneurship among rural youth. Financial support and training programs under this initiative aim to empower individuals to start their enterprises in agricultural processing.
4.Access to Technology and Research
The initiative seeks to provide farmers and processors with access to the latest technologies and research to increase productivity. By integrating advancements in technology, the Yojana facilitates modern practices in crop cultivation and processing, promoting sustainability and efficiency.
5.Increasing Farmer’s Income
Ultimately, the Yojana aims to augment farmers’ incomes by connecting them directly with markets and reducing the role of middlemen. With improved infrastructure and value-added processes in place, farmers can sell their products at better prices, thus enhancing their overall economic status.
Implementation and Financial Outlay
The PM Kisan Sampada Yojana, with its comprehensive scope, is expected to bring together various stakeholders, including state governments, agricultural universities, and private players. The financial outlay for the scheme is substantial, comprising investments from both the central and state governments, as well as attracting private sector participation. The scheme has provisions for financial assistance and grants for setting up processing units, establishing cold storage chains, and improving logistics in the distribution of agricultural products.
To ensure effective implementation, the government has established a robust monitoring and evaluation framework. This includes regular assessment of the project’s impact on farmers’ income, the volume of food processed, and the growth of employment opportunities. Such measures are crucial in gauging the success of the initiative and recalibrating strategies as necessary.
Challenges and Future Directions
While the PM Kisan Sampada Yojana has immense potential, several challenges lie ahead. One of the critical issues is the need for training and awareness programs for farmers regarding modern processing techniques. Many farmers, particularly in rural areas, may lack the knowledge or resources to utilize the schemes fully. Additionally, the lack of financial literacy among farmers can impede their ability to access loans and investments necessary for growth.
Moreover, coordinating between various stakeholders—government agencies, private sector, and farmers–is essential for seamless operation of the initiative. Overcoming bureaucratic hurdles and ensuring that benefits reach the intended beneficiaries in a timely manner must be prioritized to gain trust and encourage participation.
Moving forward, the Yojana can be further strengthened by integrating digital technologies into the agricultural supply chain. Initiatives such as e-marketing and e-commerce can bridge the gap between producers and consumers, providing farmers access to wider markets and fair prices. Furthermore, forging partnerships with technology-based startups and leveraging innovations in agri-tech will ensure that the processing sector remains adaptive and forward-looking.
Conclusion
The PM Kisan Sampada Yojana represents a pivotal step towards transforming India’s agricultural landscape. By focusing on food processing, the scheme endeavors to create a holistic ecosystem that caters to the multifarious needs of farmers while enhancing the overall efficiency of the agricultural supply chain. With careful planning, execution, and continued support from all stakeholders, this initiative has the potential to revolutionize agri-processing in India, ensuring sustainable growth and prosperity for the agricultural community. Ultimately, as the nation aspires to attain self-sufficiency in food production and processing, the PM Kisan Sampada Yojana stands as a beacon of hope, representing a synergistic collaboration between the government and farmers toward a more prosperous future.