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Government pushes agro-processing clusters to boost food processing sector
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Wednesday, 17 December, 2025, 14 : 00 PM [IST]
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Our Bureau, New Delhi
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The Ministry of Food Processing Industries (MoFPI) has reiterated its focus on strengthening Agro-Processing Clusters (APCs) and infrastructure as a key driver to expand India’s food processing sector, improve market linkages, and attract entrepreneurship in rural areas. The statement was made in the Rajya Sabha by the Minister of State for Food Processing Industries, Ravneet Singh, in response to a written question today.
Under the umbrella of the Pradhan Mantri Kisan Sampada Yojana (PMKSY), the Scheme for creation of infrastructure for agro processing clusters (APC) is being implemented to encourage establishment of modern food processing units based on a cluster-centric model. This demand-driven scheme provides incentives for projects that leverage local agricultural strengths and enhance value addition of farm produce.
To further incentivise quality proposals, the Ministry gives additional assessment marks to projects located in agri-horticulture clusters identified by the Department of Agriculture & Cooperation and Farmers Welfare under the Mission for Integrated Development of Horticulture (MIDH) and by the Agricultural and Processed Food Products Export Development Authority (APEDA). This aligned approach aims to maximise synergy between production and processing.
The Ministry regularly reviews and monitors APC projects through Project Management Agencies (PMAs) to ensure timely implementation and desired outcomes. A recent third-party impact evaluation conducted by the Quality Council of India at the end of the 15th Finance Commission cycle assessed the effectiveness of the scheme and recommended improvements for future scalability.
Alongside infrastructure creation, the National Institute of Food Technology, Entrepreneurship and Management (NIFTEM) campuses at Kundli, Haryana and Thanjavur, Tamil Nadu, in collaboration with partner institutions, are enhancing academic, technical, research and capacity-building initiatives, including short-term courses on cold chain management.
Officials emphasized that expanding agro-processing clusters will not only attract private investment but also generate rural employment, improve supply chains, and contribute to higher farm incomes across the country.
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