PMKSY Budget Allocation 2025 approved by Union Cabinet raises the total outlay to ₹6,520 crore. Learn about new food irradiation units, NABL food testing labs, and exam-relevant details for UPSC, SSC, and banking aspirants.
Expanded Outlay Boosts India’s Food Processing Ambitions
The Union Cabinet, chaired by Prime Minister Narendra Modi, recently approved an enhanced budget for the Pradhan Mantri Kisan Sampada Yojana (PMKSY), raising its total outlay to ₹6,520 crore. This includes an additional allocation of ₹1,920 crore to be infused through fiscal year 2025-26
Infrastructure and Safety Investments
Approximately ₹1,000 crore of the new funds will be directed toward establishing 50 multi‑product food irradiation units under the Integrated Cold Chain and Value Addition Infrastructure (ICCVAI) scheme. Another ₹920 crore will finance 100 NABL‑accredited food testing laboratories under the Food Safety and Quality Assurance Infrastructure (FSQAI) scheme
Expected Capacity and Operational Gains
The irradiation units are projected to offer preservation capacity of 20 to 30 lakh metric tonnes annually, depending on product type. These facilities help prolong shelf life, deter microbial spoilage, and reduce post-harvest losses. The labs will expedite compliance verification with domestic and export standards, thereby strengthening food safety protocols across the country
Strategic Linkages with 15th Finance Commission Cycle
This budget expansion is aligned with the government’s roadmap under the 15th Finance Commission cycle (2021–22 to 2025–26). It ensures completion of earlier commitments and accelerates agricultural value chain development via public–private partnerships and targeted subsidies
Economic and Agrarian Impact
By introducing modern processing infrastructure and enhancing quality testing capabilities, the scheme aims to boost earnings for farmers and agro-entrepreneurs. It strengthens India’s food processing exports, which have nearly doubled from USD 5 billion to USD 11 billion. The share of processed food in agri‑exports has risen from 14% to 24%
Why This News Is Important
Strengthening Food Security and Farmer Prosperity
This funding augmentation is pivotal for enhancing post-harvest infrastructure, reducing food wastage, and increasing farmers’ income—key themes for exams related to agriculture, rural development, and economic policies.
Relevance to Syllabus Across Exams
The decision touches upon topics such as government schemes, agricultural value chains, food safety standards, and infrastructure-led rural development, making it relevant for SBI PO, Railway, Defence, and Civil Services prelims and mains.
Policy Execution and Implications
Understanding how budget allocation, cabinet approvals, and scheme implementation work is essential for exam questions on governance and public administration. The PMKSY example shows how funding translates into infrastructure and socio-economic impact.
Historical Context
Launch and Evolution of PMKSY
The Pradhan Mantri Kisan Sampada Yojana was initiated in 2017 to promote value addition and infrastructure in India’s food processing sector. Originally funded at ₹6,000 crore, it has seen annual extensions and revisions based on mid-term performance reviews.
Extensions and Previous Allocations
In 2024‑25, PMKSY was extended through 2025‑26 with a core allocation of ₹4,600 crore. This current top‑up of ₹1,920 crore brings the scheme into maximal investment phase under the 15th Finance Commission cycle
Precedents in Government Scheme Scaling
Similar large-scale funding boosts have been given to flagship schemes such as PM-AASHA, National Food Security Mission, and state-level cold chain programmes, furthering national objectives on food processing, agri-exports, and rural employment.
Key Takeaways from PMKSY Allocation Boost
| S. No. | Key Takeaway |
|---|---|
| 1. | Cabinet increased PMKSY budget to ₹6,520 crore, including ₹1,920 crore fresh funds |
| 2. | ₹1,000 crore earmarked for 50 food irradiation units under ICCVAI |
| 3. | ₹920 crore earmarked for 100 NABL-accredited food testing labs under FSQAI |
| 4. | Irradiation units may handle 20–30 lakh tonne capacity annually |
| 5. | Processed food exports have grown from USD 5 bn to USD 11 bn; scheme supports further growth |
FAQs: Additional Frequently Asked Questions for Exam Preparation
1. What is the full form of NABL?
Answer: National Accreditation Board for Testing and Calibration Laboratories
2. Which ministry implements PMKSY?
Answer: Ministry of Food Processing Industries (MoFPI)
3. What is the primary goal of PMKSY?
Answer: To develop modern infrastructure for food processing and reduce post-harvest losses.
4. Under which Finance Commission cycle does the current allocation fall?
Answer: 15th Finance Commission (2021–22 to 2025–26)
5. How much has India’s processed food exports increased under PMKSY?
Answer: From USD 5 billion to USD 11 billion
6. How many irradiation units are proposed under the new budget?
Answer: 50 units
7. How many food testing laboratories are planned to be established?
Answer: 100 NABL-accredited labs
8. Which government body accredits food testing labs in India?
Answer: NABL (under QCI – Quality Council of India)
9. What is the estimated storage capacity of new irradiation units?
Answer: 20 to 30 lakh metric tonnes per year
10. Name one related scheme to PMKSY?
Answer: PM-FME (Formalisation of Micro Food Enterprises)
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