What are the key objectives and components of the PM Kisan SAMPADA Yojana?

Factual
~ 5 min read

Of course. Here is a detailed answer to your question on the PM Kisan SAMPADA Yojana, structured for a UPSC aspirant.

Direct Answer

The Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) is a Central Sector Scheme of the Ministry of Food Processing Industries (MoFPI) designed to create modern infrastructure with an efficient supply chain management from farm gate to retail outlet.

The primary objectives of the scheme are:

  1. Supplementing Agriculture: To enhance the processing of agricultural produce and add value to it, thereby increasing farmers' income.
  2. Reducing Agri-Waste: To minimise post-harvest losses by developing robust cold chain and storage infrastructure.
  3. Generating Employment: To create significant direct and indirect employment opportunities, particularly in rural areas.
  4. Boosting Exports: To increase the share of processed foods in India's export basket.
  5. Enhancing Food Availability: To ensure the availability of safe, affordable, and quality processed food for consumers.

PMKSY is an umbrella scheme incorporating several ongoing and new schemes. Its key components are:

  • Mega Food Parks
  • Integrated Cold Chain and Value Addition Infrastructure
  • Creation/Expansion of Food Processing & Preservation Capacities (Unit Scheme)
  • Infrastructure for Agro-processing Clusters
  • Creation of Backward and Forward Linkages
  • Food Safety and Quality Assurance Infrastructure
  • Human Resources and Institutions (e.g., NIFTEM)
  • Operation Greens (TOP - Tomatoes, Onions, Potatoes)

Historical Context

The development of the food processing sector has been a policy priority for several years, aimed at tackling agrarian distress and food wastage. The PMKSY represents a consolidation and rebranding of earlier efforts.

  1. 2008: The Mega Food Parks Scheme was launched by the MoFPI to create modern food processing infrastructure through a cluster-based approach.
  2. 2016: The MoFPI introduced an umbrella scheme named "Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters" (SAMPADA).
  3. May 2017: The Cabinet Committee on Economic Affairs (CCEA) approved SAMPADA with an allocation of ₹6,000 crore for the period 2016-20.
  4. August 2017: The scheme was renamed "Pradhan Mantri Kisan SAMPADA Yojana" (PMKSY) to better reflect its farmer-centric focus.
  5. February 2022: The scheme was extended until March 2026 with a new allocation of ₹4,600 crore, coterminous with the 15th Finance Commission cycle.

Significance

The PM Kisan SAMPADA Yojana holds significant importance for the Indian economy, particularly the agricultural sector.

  • Economic Impact: The scheme aims to leverage investment of ₹11,095.93 crore, benefiting 20 lakh farmers and generating 5,30,500 direct/indirect employment opportunities by 2025-26 (as per MoFPI targets). It directly contributes to the government's goal of doubling farmers' income by shifting them from being mere producers to participants in the value chain.
  • Reducing Wastage: India faces substantial post-harvest losses. As per the Indian Council of Agricultural Research (ICAR), post-harvest losses of major agricultural produces were estimated to be between 4.6% to 15.9% (2015 study). By creating integrated cold chains and processing facilities, PMKSY directly addresses this inefficiency, enhancing food security and farmer remuneration.
  • Formalisation and Food Safety: The scheme promotes the formalisation of the food processing sector. Components like Food Safety and Quality Assurance Infrastructure help MSMEs comply with FSSAI standards, improving the quality and safety of food products for domestic consumption and export.
  • Comparative Analysis: PMKSY vs. Production-Linked Incentive (PLI) Scheme for Food Processing
FeaturePM Kisan SAMPADA Yojana (PMKSY)Production-Linked Incentive (PLI) for Food Processing
Primary FocusInfrastructure Creation: Capital expenditure on setting up processing units, cold chains, and parks.Output & Sales Growth: Incentivising incremental sales of finished food products.
Nature of IncentiveCapital Subsidy: Grant-in-aid (typically 35-50% of project cost) for creating assets.Performance-based Incentive: Subsidy paid on incremental sales over a base year.
Target BeneficiaryPrimarily entrepreneurs, FPOs, SHGs, and cooperatives setting up new infrastructure.Large-scale food processing companies and SMEs with a focus on branding and marketing.
ObjectiveTo build the backbone of the food processing supply chain (backward & forward linkages).To create global food manufacturing champions from India and support Indian brands abroad.
MinistryMinistry of Food Processing Industries (MoFPI)Ministry of Food Processing Industries (MoFPI)

UPSC Angle

Examiners will assess your understanding of PMKSY not just as a standalone scheme but as a critical component of India's broader agricultural and industrial policy.

  • Linkages: Be prepared to link PMKSY with other government initiatives. For instance, how does it complement the Agriculture Infrastructure Fund (AIF), e-NAM, or the PLI Scheme for Food Processing? How does it contribute to achieving the Sustainable Development Goals (SDGs), particularly SDG 2 (Zero Hunger) and SDG 12 (Responsible Consumption and Production)?
  • Data-driven Analysis: Quoting relevant data is crucial. Mentioning the level of food processing in India (currently low compared to developed nations) and citing figures on post-harvest losses from credible sources like ICAR or the Economic Survey will add weight to your answer. For instance, as per the MoFPI Annual Report 2022-23, the level of processing for perishables like fruits and vegetables is still very low.
  • Challenges and Way Forward: A critical perspective is valued. Discuss challenges in implementation, such as land acquisition for Mega Food Parks, credit access for small entrepreneurs, and gaps in last-mile connectivity. Suggest solutions like strengthening Farmer Producer Organizations (FPOs) to improve backward linkages, simplifying the approval process, and focusing on skill development for the food processing industry.
  • Mains Questions (GS Paper 3): Expect questions on topics like "supply chain management," "food processing and related industries," "doubling farmers' income," and "inclusive growth." PMKSY is a key scheme to quote as a government intervention in all these areas. Your answer should demonstrate how this scheme acts as a policy instrument to bridge the gap between farm and market.
economy agriculture food security food processing value chains sampada yojana food parks
Was this helpful?

Study Companion

Scholarly Layers

What are the key objectives and components of…

Topic
Agriculture and Food SecurityFood Processing and Value ChainsPM Kisan SAMPADA Yojana and Food Parks