Government Schemes & Bodies

MoFPI

In short

The Ministry of Food Processing Industries — a Government of India ministry that grants and subsidies for startups in food processing, cold chain logistics, agri-processing, and value-added food products. MoFPI administers the Pradhan Mantri Kisan Sampada Yojana (PMKSY), which includes component schemes for infrastructure development, quality assurance, and entrepreneurship in food processing. Startups in the agri-food value chain can access grants of up to ₹5 crore for processing units, cold storage, and testing labs. MoFPI also partners with state governments to run food processing incubation centres and innovation challenges.

How It Works

The Ministry of Food Processing Industries (MoFPI) is a Government of India ministry that provides grants, subsidies, and support to startups and enterprises in the food processing, cold chain logistics, agri-processing, and value-added food products sector. MoFPI's flagship Pradhan Mantri Kisan Sampada Yojana (PMKSY) includes several component schemes: the Mega Food Park scheme for large-scale food processing infrastructure, the Integrated Cold Chain and Value Addition Infrastructure scheme, the Creation of Infrastructure for Agro-Processing Clusters, the Scheme for Creation of Backward and Forward Linkages, and the Food Safety and Quality Assurance Infrastructure. Startups in the agri-food value chain can access grants of up to ₹5 crore for setting up processing units, cold storage facilities, testing labs, and warehousing. MoFPI also partners with state governments to run food processing incubation centres, skill development programmes, and innovation challenges. The ministry's grants are particularly relevant for farm-to-fork startups, farm-tech platforms, organic food ventures, millet-based product startups, and women-led food processing enterprises.

Application Process

1. Identify the right PMKSY component for your project — cold chain, processing infrastructure, or quality assurance. 2. Prepare a detailed project report (DPR) covering technical specifications, financial projections, and expected outcomes. 3. Demonstrate the project's impact on reducing post-harvest losses or increasing farmer income — this is a key evaluation criterion. 4. Ensure your entity is registered (company, LLP, cooperative, or FPO) and has the necessary FSSAI licences. 5. Submit the application through the MoFPI online portal during the open call. 6. Post-approval, comply with project implementation timelines, progress reporting, and financial auditing requirements.

Real-World Example

A startup founded by two sisters builds a solar-powered, IoT-enabled cold storage unit for small and marginal farmers who currently lose 15–20% of their horticulture produce due to lack of cold chain access. They apply for a ₹2 crore MoFPI grant under the Integrated Cold Chain scheme. Their DPR covers the technology (modular cold rooms powered by solar panels with remote temperature monitoring), the business model (pay-per-use for farmers), the impact (reducing post-harvest losses from 18% to 5%), and the financial viability. The application is approved, and the grant funds 50% of the capital cost for setting up 20 cold storage units across 10 villages, benefiting 2,000 farmers.

Key Takeaway

MoFPI grants are a powerful funding source for startups working in food processing, cold chain, and agri-value addition. The key to success is a well-prepared DPR that demonstrates clear impact on reducing post-harvest losses and increasing farmer income.