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Home / IAS Preparation / Government Schemes of India / pradhan mantri kisan sampada yojana

Pradhan Mantri Kisan Sampada Yojana UPSC Notes: Objectives, Features & More

Last Updated on Jul 12, 2024
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Pradhan Mantri Kisan Sampada Yojana PMKSY is a central sector scheme launched by the Government of India in 2017. The Pradhan Mantri Kisan Sampada scheme is related to modernizing and strengthening the food processing sector in the country. The scheme is implemented by the Ministry of Food Processing Industries (MoFPI), Government of India. The scheme aims to create modern infrastructure facilities for food processing along the entire value chain, from farm to market. 

Pradhan Mantri Kisan Sampada Yojana UPSC is one of the most important topics for the UPSC IAS Examination.

In this article on Pradhan Mantri Kisan Sampada Yojana UPSC, we shall discuss its features, benefits, objectives, implementation status, and suggestions to improve the food processing sector in India in detail. This will be very useful for aspirants in the UPSC Prelims Exam.

What is Pradhan Mantri Kisan Sampada Yojana?

The Pradhan Mantri Kisan Sampada Yojana PMKSY is a central sector scheme implemented by the Ministry of Food Processing Industries (MoFPI), Government of India. In 2016, the Ministry of Food Processing Industries (MoFPI) proposed an integrated Program for Agro-Marine Processing and Development of Agro-Processing Clusters, or SAMPADA, with a budget of 6,000 crores for the period 2016-20. SAMPADA was renamed Pradhan Mantri Kisan Sampada Yojana PMKSY in 2017. 

Pradhan Mantri Kisan Sampada Yojana PMKSY is a holistic programme to develop modern infrastructure and ensure seamless supply chain administration from farm to store. The initiative promotes the expansion of the country's food processing industry while also assisting farmers in receiving greater returns. It is a significant step toward establishing a large number of jobs in rural regions, thereby enhancing farmers' income, expanding processing facilities, minimizing agricultural waste, and increasing the sale of processed goods.

Also, read Priority sector lending for UPSC here.

Objectives of Pradhan Mantri Kisan Sampada Yojana

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The Pradhan Mantri Kisan Sampada Yojana PMKSY is a government scheme aimed at modernizing and strengthening the agricultural and food processing sector in India. The key objectives of the PMKSY include:

  • To create modern infrastructure for the processing and preservation of agricultural produce. This includes the establishment of cold chains, warehouses, and food processing units.
  • To enhance the value addition of agricultural produce by promoting food processing, agri-business, and allied activities.
  • To generate employment opportunities, particularly in rural areas, by promoting investment and entrepreneurship in the food processing sector.
  • To increase farmers' income by reducing post-harvest losses, improving market access, and facilitating better price realization for their produce.
  • To ensure food safety, quality standards, and hygiene practices in food processing and preservation.
  • To establish efficient supply chains that connect farmers to both domestic and international markets, thereby reducing wastage and improving market access.

Also, study about the Pradhan Mantri Mudra Yojana from the linked article.

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Features of the Pradhan Mantri Kisan Sampada Yojana

The Pradhan Mantri Kisan Sampada Yojana is characterized by the following features:

  • The scheme takes a holistic and integrated approach to develop the entire food processing value chain, from farm gate to the consumer, by addressing infrastructure, capacity building, and market linkages.
  • The PMKSY emphasizes the development of Mega Food Parks. These are integrated industrial parks equipped with infrastructure facilities for food processing units.
  • The scheme supports the creation of modern infrastructure for the processing, handling, and preservation of agricultural produce. This includes cold chains, warehouses, and processing units.
  • The PMKSY provides financial assistance in the form of grants and subsidies to eligible entities engaged in the food processing sector.
  • The scheme aims to facilitate the adoption of advanced technology, best practices, and quality standards in the food processing industry.
  • The PMKSY encourages the formation and strengthening of Farmer Producer Organizations to empower farmers and enhance their bargaining power in the market.

Study about the PM Kusum Scheme here.

Key Components Under the Pradhan Mantri Kisan Sampada Yojana

The key components include initiatives like Mega Food Parks, Integrated Cold Chain and Value Addition Infrastructure, and the creation/expansion of Food Processing & Preservation Capacities. Additionally, it includes Infrastructure for Agro-processing Clusters, Backward and Forward Linkages, Food Safety and Quality Assurance Infrastructure, and Human Resources and Institutions.

Mega Food parks

Mega Food Parks is a scheme launched by the Government of India under the Kisan Sampada Yojana to provide modern infrastructure facilities for food processing units in the country. The scheme aims to establish a strong and efficient supply chain management system from farm to market by bringing together farmers, processors, and retailers. It is based on a "cluster" approach, which aims to create a state-of-the-art infrastructure in a well-defined agri/horticultural zone for setting up modern food processing units. The scheme provides industrial plots with well-established supply chains to the food processing units located within the park. It is carried out in the country by a Special Purpose Vehicle (SPV), which is a legal entity registered under the Companies Act of 2013. Presently, 41 Mega Food Parks are funded under the scheme. The Mega Food Park Scheme is in line with the 'Make in India' or 'Atma Nirbhar Bharat' vision of the Government of India. 

  • To provide modern infrastructure facilities for food processing units.
  • To ensure value addition of agricultural produce.
  • To create a sustainable raw material supply chain.
  • To facilitate induction of the latest technology.
  • To address the needs of small and micro food processing enterprises.
  • To provide an institutional mechanism for producers, processors, and retailers to work together to build the supply chain: The scheme aims to provide an institutional mechanism for producers, processors, and retailers to work together to build the supply chain. 

Integrated Cold Chain and Value Addition Infrastructure

The Integrated Cold Chain and Value Addition Infrastructure scheme aims to arrest post-harvest losses of horticulture and non-horticulture produce by providing financial assistance for setting up the integrated cold chain, preservation, and value-addition infrastructure facilities.

Food processing/preservation capacity creation/expansion

The Creation/Expansion of Food Processing/Preservation Capacities (Unit Scheme) aims to increase the level of processing, value addition, and reduction of wastage by providing financial assistance for the creation, expansion, and modernization of processing and preservation capacities.

Infrastructure for Agro-processing Clusters

The Infrastructure for Agro-Processing Clusters scheme aims to create modern infrastructure for food processing closer to production areas, provide integrated and complete preservation infrastructure facilities from the farm gate to the consumer, and create effective backward and forward linkages by linking groups of producers/farmers to the processors and markets through a well-equipped supply chain.

Creation of Backward and Forward Linkages

The Infrastructure for Agro-Processing Clusters scheme aims to create modern infrastructure for food processing closer to production areas, provide integrated and complete preservation infrastructure facilities from the farm gate to the consumer, and create effective backward and forward linkages by linking groups of producers/farmers to the processors and markets through a well-equipped supply chain.

Food Safety and Quality Assurance Infrastructure

The Food Safety and Quality Assurance Infrastructure scheme aims to establish a surveillance system for monitoring the quality and composition of food, analyze the samples received from the processing industry and other stakeholders, and reduce the time for analysis of samples by reducing the transportation time of samples. The scheme also aims to ensure compliance with international and domestic standards on food in the case of exports as well as imports.

Human Resources and Institutions

The scheme aims to promote R&D activities in the food processing sector, which can result in product and process development, efficient technologies, improved packaging, and value addition along with standardization.

Study about the Food and Agriculture Organization (FAO) here.

Implementation of Pradhan Mantri Kisan Sampada Yojana

The implementation process involves identifying projects that enhance productivity and reduce waste, inviting proposals from various sectors, and providing funding and financial assistance to approved projects. It also includes appraising and approving projects based on feasibility, regularly monitoring and evaluating project progress, offering capacity building and technical assistance to stakeholders, and promoting the scheme through extensive outreach activities.

  • The government is taking steps to improve the food processing industry in order to reduce and eliminate post-harvest waste.
  • To establish a modern infrastructure for food processing to value it, the Ministry has approved almost 42 Mega Food Parks and 236 Integrated Cold Chains of Food Processing Industries.
  • SAMPADA focuses on connecting and closing gaps in supply chains so that they can run smoothly.
  • It also focuses on the existing food processing unit's expansion and spread.
  • It also aims to identify agro clusters and provide subsidies to them so that food items can be easily transferred from the manufacturer to the market.
  • In order to improve the food processing sector, the Indian government has also undertaken other key actions, such as authorizing 100 per cent FDI in the e-commerce of food goods manufactured in India.
  • Farmers will benefit from this Yojana by boosting their earnings and income, creating new job possibilities, restoring processed food exports, and minimizing food waste.
  • The initiative intends to establish processing units by providing all of the essential components and boosting India's food processing sector.

Study about the PM-Kisan Samman Nidhi Yojana here.

Pradhan Mantri Kisan Sampada Yojana Eligibility

The eligibility criteria for availing benefits under the Pradhan Mantri Kisan Sampada Yojana may vary depending on the specific components and schemes within the PMKSY. However, in general, the following entities may be eligible:

  • Individuals, farmers, and farmer producer organizations (FPOs) engaged in agriculture and allied activities.
  • Agro-based industries, food processing units, and entrepreneurs involved in food processing and preservation.
  • Cooperatives, self-help groups (SHGs), and organizations involved in the agricultural and food processing sector.
  • Entities fulfilling specific criteria outlined by the implementing agencies and departments.

Read the article on Kisan Vikas Patra!

Benefits of Pradhan Mantri Kisan Sampada Yojana

The Pradhan Mantri Kisan Sampada Yojana (PMKSY) benefits include the creation of modern infrastructure and efficient supply chains, leading to reduced food wastage and increased farmers' income. This holistic approach aims to enhance the overall productivity and sustainability of India's agriculture and food processing sectors.

  • Increased processing of agricultural produce: The PMKSY has helped to increase the processing of agricultural produce by 12%. This has led to better value realization for farmers and reduced post-harvest losses.
  • Created employment opportunities: The PMKSY has created over 2 million jobs in the food processing sector. This has helped to boost rural employment and income.
  • Improved quality and safety of processed food: The PMKSY has helped to improve the quality and safety of processed food. This has made Indian processed food more competitive in the global market.
  • Promoted exports of processed food: The PMKSY has helped to promote exports of processed food by 15%. This has helped to increase foreign exchange earnings for the country.
  • Reduced post-harvest losses: The PMKSY has helped to reduce post-harvest losses by 5%. This has saved farmers money and ensured that more food is available for consumers.

Read the article on Pradhan Mantri Kisan Maan Dhan Yojana!

Challenges Faced by the Pradhan Mantri Kisan Sampada Yojana

While the Pradhan Mantri Kisan Sampada Yojana aims to boost the agricultural and food processing sector in India, it faces certain challenges:

  • The effective implementation of the scheme requires coordination among multiple stakeholders. This includes central and state government agencies, industry players, and farmer organizations.
  • Adequate financial resources are essential for the successful execution of the scheme. Ensuring sufficient budgetary allocations and attracting private investments can be challenging.
  • Developing the necessary infrastructure, such as cold chains, storage facilities, and processing units, requires substantial investments and may face logistical challenges in remote and rural areas.
  • Building the capacity and skills of farmers, entrepreneurs, and workers in the food processing sector is crucial for the success of the scheme. Training programs and skill development initiatives need to be implemented effectively.
  • Creating market linkages and ensuring consistent demand for processed agricultural products can be a challenge. Developing domestic and international markets and promoting branding and marketing efforts is essential.

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Key Takeaways for UPSC Aspirants

  • Objective and Vision: PMKSY aims to create modern infrastructure for the food processing sector, reduce food wastage, increase farmers' income, and generate rural employment.
  • Key Components: The scheme includes Mega Food Parks, Integrated Cold Chain and Value Addition Infrastructure, and the Creation/Expansion of Food Processing & Preservation Capacities.
  • Mega Food Parks: These parks create an integrated value chain from farm gate to marketplace to reduce wastage and increase value addition.
  • Integrated Cold Chain: Focuses on developing a seamless cold chain network from farm gates to consumers, ensuring minimal post-harvest losses and maintaining nutritional quality.
  • Funding and Financial Assistance: Provides financial support, including grants and subsidies, to encourage private investment in food processing projects.
  • Project Selection and Approval: Projects are selected based on their potential to enhance agri-productivity and reduce wastage, with rigorous appraisal for feasibility.
  • Employment Generation and Skill Development: Designed to generate employment in the food processing sector and associated supply chains, while focusing on training and capacity building.
  • Impact on Farmers and Rural Economy: Aims to enhance farmers' income and stimulate the rural economy through improved infrastructure and better market linkages.

We hope that all your doubts regarding the Pradhan Mantri Kisan Sampada Yojana will be cleared after going through this article. You can download the Testbook App now to check out various other topics relevant to the UPSC IAS Exam.

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Pradhan Mantri Kisan Sampada Yojana UPSC FAQs

The status of the Pradhan Mantri Kisan Sampada Yojana can be checked by visiting the official website of the Ministry of Food Processing Industries (MOFPI) or by contacting the concerned authorities.

The Pradhan Mantri Kisan Sampada Yojana was launched on 20th May 2017.

The application process for the Pradhan Mantri Kisan Sampada Yojana varies depending on the specific schemes and components within the PMKSY. Interested applicants can visit the official website of the Ministry of Food Processing Industries (MOFPI) for information on the process.

The purpose of the Pradhan Mantri Kisan Sampada Yojana is to modernize and strengthen the agricultural and food processing sector in India.

The Ministry of Food Processing Industries (MOFPI) is the ministry responsible for the implementation of policies related to the food processing sector in India.
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