National Food Processing Mission

National Food Processing Mission

The National Mission on Food Processing (NMFP), also known as the National Food Processing Mission, was a centrally sponsored scheme launched by the Ministry of Food Processing Industries (MoFPI), Government of India, during the 12th Five-Year Plan (2012–17). It aimed to promote growth, modernisation, and value addition in the food processing sector by empowering states and union territories to undertake locally relevant initiatives.

Background and Rationale

India, being one of the largest producers of agricultural commodities, faces substantial post-harvest losses and limited value addition in its food supply chain. The NMFP was introduced to address these challenges by:

  • Strengthening processing infrastructure and cold chains.
  • Promoting investment and technology in food processing.
  • Enhancing farmers’ income through value addition.
  • Encouraging entrepreneurship and skill development in the sector.

It replaced earlier fragmented schemes and decentralised implementation to state governments for better responsiveness and efficiency.

Objectives of the NMFP

The key objectives of the National Mission on Food Processing were:

  1. To promote value addition and reduction of post-harvest losses in agricultural produce.
  2. To develop modern infrastructure for food processing, preservation, and logistics.
  3. To encourage entrepreneurship and private investment in the food processing industry.
  4. To promote research, skill development, and capacity building in the sector.
  5. To empower state and union territory governments to plan and implement region-specific programmes.
  6. To raise awareness and market access for processed food products.

Mission Components

The NMFP included multiple components designed to develop infrastructure, improve technology, and promote capacity building in the food processing value chain.

ComponentPurpose
Technology Upgradation, Establishment, and Modernisation of Food Processing IndustriesFinancial assistance for modernising existing units or setting up new food processing enterprises with advanced technology.
Cold Chain, Value Addition, and Preservation Infrastructure (Non-Horticultural)Support for cold storage, warehousing, and preservation facilities for perishable and non-horticultural commodities.
Setting Up / Modernisation of AbattoirsImprovement of meat processing and hygiene standards in slaughter and meat processing units.
Human Resource Development (HRD)Establishment of training centres, academic programmes, and entrepreneurship development in food processing.
Promotional and Awareness ActivitiesOrganisation of fairs, exhibitions, seminars, and campaigns to promote investment and innovation in the sector.

States were given flexibility to select and implement these components as per their regional priorities and resource availability.

Implementation Mechanism

  • The NMFP was implemented through a Centrally Sponsored Scheme, with joint funding from the Central and State Governments.
  • The Ministry of Food Processing Industries (MoFPI) provided guidelines, financial assistance, and technical support.
  • State Governments were the nodal implementing agencies, responsible for project selection, execution, and monitoring.
  • The scheme also encouraged public–private partnerships (PPPs) for infrastructure development.

Achievements of the NMFP

  1. Decentralised Planning: Enhanced state participation and flexibility in designing need-based projects.
  2. Infrastructure Development: Establishment of cold storages, warehouses, and food processing units in multiple states.
  3. Entrepreneurship Promotion: Financial and technical support to micro and small food processing enterprises.
  4. Skill and Capacity Building: Development of training programmes and human resource institutions in food processing.
  5. Reduction in Wastage: Improved preservation and logistics for perishable goods, especially fruits and vegetables.

Limitations and Challenges

Despite its achievements, the NMFP faced several challenges:

  1. Funding Constraints: Limited central and state allocations affected full-scale implementation.
  2. Infrastructure Gaps: Insufficient cold chains and logistics facilities in remote areas.
  3. Uneven Implementation: Variations in performance across states due to differing capacities and administrative efficiency.
  4. Private Sector Participation: Limited involvement from private investors in certain regions.
  5. Discontinuation of Central Support: The scheme was later delinked from central funding, leading to reduced continuity in some states.

Transition and Successor Schemes

After the 12th Five-Year Plan, the NMFP was subsumed and replaced by larger, integrated food processing initiatives to provide comprehensive support to the sector. The successor programmes include:

  1. Pradhan Mantri Kisan SAMPADA Yojana (PMKSY):An umbrella scheme integrating multiple components such as Mega Food Parks, Cold Chain, Agro-Processing Clusters, and Food Safety Infrastructure.
  2. PM Formalisation of Micro Food Processing Enterprises (PMFME) Scheme:Focuses on providing financial, technical, and business support to small and micro enterprises in food processing.
  3. Mega Food Park Scheme:Encourages the creation of modern food processing clusters with shared infrastructure for storage, packaging, and distribution.

These schemes build on the institutional and developmental foundation laid by the NMFP.

Significance of the National Mission on Food Processing

  • Strengthened the institutional framework for food processing at both central and state levels.
  • Enhanced farm-to-fork linkages through integrated infrastructure and market access.
  • Supported employment generation and rural development by promoting agro-based industries.
  • Laid the foundation for modernisation and digital transformation in India’s food processing sector.
Originally written on February 5, 2018 and last modified on October 7, 2025.

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