HomeGlossaryMoFPI

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.

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.

Frequently asked questions

What is MoFPI?+

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.

How does MoFPI work?+

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.

What is the application process for MoFPI?+

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.

What is an example of MoFPI?+

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.

Related Terms in Government Schemes & Bodies

DPIIT Recognition

Registration with the Department for Promotion of Industry and Internal Trade that certifies an entity as a recognised startup under the Startup India initiative. DPIIT recognition is a prerequisite for most central government grant programmes, provides access to the Startup India Seed Fund Scheme, and offers benefits like self-certification under nine labour and environmental laws, tax exemption under Section 80-IAC, and fast-track patent examination. To qualify, a company must be incorporated as a Private Limited, LLP, or Partnership, be less than 10 years old, have annual turnover below ₹100 crore, and work towards innovation, development, or improvement of products or processes. More than 100,000 startups are now DPIIT-recognised as of 2025.

Startup India

A flagship Government of India initiative launched on January 16, 2016 by the Department for Promotion of Industry and Internal Trade (DPIIT) to build a strong ecosystem for nurturing innovation and startups in the country. The initiative operates through three pillars: simplified compliance and hand-holding (self-certification, easy exit), funding support (the Startup India Seed Fund Scheme of ₹945 crore and the Fund of Funds for Startups of ₹10,000 crore), and incubation and mentoring (a network of incubators, innovation hubs, and academic partnerships). Startup India has recognised over 100,000 startups, and the initiative continues to evolve with new schemes, state partnerships, and sector-specific programmes.

BIRAC

The Biotechnology Industry Research Assistance Council — a Government of India body under the Department of Biotechnology. BIRAC is India's primary funder of biotech and life sciences startups, offering a ladder of grant programmes from early-stage proof-of-concept (Biotechnology Ignition Grant, up to ₹50 lakh) through to translational and commercialisation support (SPARSH, BIG-BIRAC, and LEAP). BIRAC also runs fellowship programmes, innovation challenges, and international collaborations. Its grants are milestone-based and typically cover R&D costs, consumables, salaries, and equipment. Since inception, BIRAC has supported over 3,000 startups and played a central role in India's COVID-19 vaccine and diagnostic development.

DST

The Department of Science and Technology — a Government of India ministry that funds deep-tech, science, and engineering startups through a portfolio of grant programmes. Key schemes include the National Initiative for Developing and Harnessing Innovations (NIDHI, which runs incubator support and seed funding through a network of 50+ Technology Business Incubators), the Fund for Improvement of S&T Infrastructure (FIST), and the PURSE scheme for university research. DST grants are competitive and milestone-based, typically ranging from ₹25 lakh to ₹2 crore for early-stage tech ventures. DST also co-funds innovation challenges in strategic areas like quantum computing, clean energy, and AI with industry partners.

MeitY

The Ministry of Electronics and Information Technology — a Government of India ministry that funds technology startups, with a particular focus on AI, cybersecurity, electronics, semiconductor design, and digital governance. MeitY administers schemes such as SAMRIDH (which provides funding up to ₹1 crore for IT product startups), the TIDE (Technology Incubation and Development of Entrepreneurs) scheme supporting 50+ incubators, and the Digital India R&D initiatives. MeitY grants are open to startups working on national-priority tech stacks, and the ministry runs challenge-based funding calls that combine equity-free grants with mentorship from government technology departments.

NABARD

The National Bank for Agriculture and Rural Development — a development bank that funds startups and enterprises in agriculture, rural development, and allied sectors through a mix of grants, venture capital, and subsidised credit. NABARD runs the Rural Innovation and Startup Promotion Scheme (RISPS) that supports rural and agri-startups with grants of up to ₹1 crore, as well as the Agri-Business Incubation (ABI) programme in partnership with universities and ICAR institutions. NABARD's funding is particularly relevant for startups working in farm technology, supply chain, dairy, fisheries, rural fintech, and handicrafts.

Recommended Terms