A senior official attributes this to decreased ministry expenditure in the current fiscal year.
NEW DELHI: The Union ministry of food processing industries is likely to witness a reduction in the interim budget for FY2024-25 due to lower expenditure in the ongoing financial year. As per a senior MoFPI official, the ministry’s spending in FY2023-24 has been approximately ₹2,912 crore against the budget estimate of ₹3,287 crore.
The official mentioned that despite proposing a higher budget allocation of ₹4,200 crore for the upcoming financial year, the ministry may receive around ₹3,087 crore in the FY25 Budget. However, the exact allocation for FY25 remains uncertain.
In FY25, MoFPI is anticipated to be allocated over ₹1,200 crore for the production linked incentive (PLI) scheme, about ₹900 crore for the Pradhan Mantri Formalisation of Micro Food Processing Enterprises scheme, and roughly ₹750 crore for the Pradhan Mantri Kisan Sampada Yojana (PMKSY).
For FY24, the ministry received allocations of ₹2,453 crore for the PLI scheme, ₹1,530 crore for PMKSY, and ₹639 crore for the scheme for micro food-processing enterprises.
No immediate response was received from MoFPI and the expenditure department regarding inquiries about the expected budget allocation for FY25.
Shantanu Patil’s Perspective
Shantanu Patil, co-founder of Meloop Foods Pvt Ltd, emphasized the government’s support for food startups and processing while urging attention to labor challenges impacting millet cultivation.
Shantanu Patil from the Solapur, Beed, Latur and Dharashiv region expresses his concern about the overshadowing allure of fruits, soybean, and cash crops like sugarcane compared to millet farming. He anticipates favorable provisions in the Union Budget, particularly incentives or subsidies for harvesting machines for millets to reduce labor costs.
The PLI Scheme for Food Processing Industry, approved by the Union cabinet with a budget of ₹10,900 crore, aims to incentivize micro, small and medium enterprises focusing on innovation in food processing. Furthermore, the scheme emphasizes on millet-based products, promoting their attributes of resource efficiency and climate resilience.
The micro food-processing enterprises scheme, initiated in June 2020, looks to leverage the potential of groups and cooperatives to support the upgradation and formalization of micro enterprises in the food processing domain.
The Pradhan Mantri Kisan Sampada Yojana (PMKSY) as a comprehensive package aims to revolutionize the supply chain management system, provide better returns to farmers, generate employment opportunities, reduce wastage of agricultural produce, and boost the export of processed foods.
Sanjay Sethi’s Views
Sanjay Sethi, the executive director of the Plant Based Foods Industry Association, underscores the need for budgetary support to propel the plant-based foods industry. This support he believes, could unlock significant potential for foreign exchange gains and address the current gaps in the global plant protein market.
