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India to see 75,000 new food processing units as centre pushes for massive sector expansion
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Wednesday, 19 November, 2025, 12 : 00 PM [IST]
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Our Bureau, New Delhi
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In a major push to strengthen India’s food processing ecosystem, the government is gearing up to facilitate the establishment of 75,000 new food processing units across the country over the next few years. The move is expected to significantly boost rural employment, reduce post-harvest losses, and create a stronger market for farmers’ produce by expanding processing capacity at the local level.
Officials from the Ministry of Food Processing Industries (MoFPI) have indicated that the new units—ranging from micro and small-scale enterprises to mid-sized processing facilities—will be set up under a combination of central schemes, state incentives, and private-sector participation. A large portion of these units will emerge under the PM Formalisation of Micro Food Processing Enterprises (PMFME) scheme, which focuses on upgrading unorganized micro units and building new processing clusters.
According to ministry sources, the expansion will focus on high-demand product categories including ready-to-eat foods, traditional Indian snacks, spices, dairy, bakery, millet-based items, fruit and vegetable processing, and value-added staples. Priority regions will include states with large agricultural outputs but lower processing capacity, such as Uttar Pradesh, Bihar, Madhya Pradesh, Odisha, and parts of the Northeast.
Industry experts believe the move could transform India’s food economy by improving value addition, strengthening supply chains, and increasing exports. “Creating 75,000 processing units will bring a major shift in how India handles its agri-produce,” said a senior industry analyst. “It will empower farmers with better prices, strengthen MSMEs, and create lakhs of jobs across rural India.”
The government expects the initiative to attract significant private-sector investments as well, with FMCG companies, agri-tech startups, and global food brands showing growing interest in India’s food processing ecosystem. Once operational, these units are projected to contribute substantially to India’s vision of becoming a global food manufacturing hub.
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