Ministry of Food Processing Industries Expands ₹6,520 Crore Cold Chain Scheme to Modernise Post-Harvest Infrastructure
SDG 2: Zero Hunger | SDG 12: Responsible Consumption & Production
Institutions: Ministry of Food Processing Industries | NABARD Consultancy Services (NABCONS)
India’s post-harvest losses, especially in perishables like fruits, vegetables, dairy, meat, and fish—remain a major obstacle to farmer incomes and food security. The Integrated Cold Chain and Value Addition Infrastructure (ICCVAI) scheme under the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) seeks to build a seamless cold chain from farm gate to consumer, reducing wastage and improving returns.
Key Highlights
Revised Outlay: ₹6,520 crore under PMKSY till March 2026, including ₹1,000 crore for 50 multi-product food irradiation units.
Achievements (as of June 2025):
395 projects approved, 291 operational, creating 25.52 LMT preservation and 114.66 LMT processing capacity yearly.
Generated 1.74 lakh jobs nationwide.
₹1,535.63 crore released since 2016–17 against approved ₹2,066.33 crore.
Financial Assistance:
35 % of eligible project cost in general areas; 50 % in “difficult” areas (Northeast, hill states, islands, ITDP areas).
Up to ₹10 crore per project; inclusive benefits for FPOs, SHGs, SC/ST groups.
Eligible Project Implementing Agencies: Individuals, FPOs/FPCs, NGOs, PSUs, cooperatives, and SHGs.
Mandatory Component: Each project must include Farm-Level Infrastructure (FLI) linked to a Distribution Hub and/or refrigerated transport.
Complementary Government Initiatives
Mission for Integrated Development of Horticulture (MIDH): Credit-linked subsidies (35–50 %) for cold storages up to 5,000 MT.
Operation Greens Scheme: Integrated development of perishable value chains; now covers fruits, vegetables & shrimp.
National Horticulture Board (NHB): Subsidies for modernizing CA storages (5,000–20,000 MT).
Agriculture Infrastructure Fund (AIF): ₹1 lakh crore corpus; collateral-free loans up to ₹2 crore with 3 % interest subvention.
Impact & Evaluation
A NABCONS (2020) evaluation confirmed notable reduction in wastage across Fruits & Vegetables, Dairy, and Fisheries, validating ICCVAI’s integrated model. The scheme’s expansion builds linkages with transport, processing, and marketing, aligning with Atmanirbhar Bharat goals of domestic infrastructure resilience.
This cold-chain modernisation effort supports national frameworks including the National Food Processing Policy, PMKSY, and Digital Agriculture Mission, while advancing food security, employment, and climate-resilient infrastructure. It underpins India’s transition toward farm-to-market efficiency, curbing losses that erode farmer earnings and strain consumer supply chains.
What is Pradhan Mantri Kisan SAMPADA Yojana (PMKSY)?→ The Pradhan Mantri Kisan SAMPADA Yojana, launched in 2017 by the Ministry of Food Processing Industries (MoFPI), is a comprehensive umbrella scheme aimed at creating modern infrastructure for the food processing sector. It integrates multiple components — including Mega Food Parks, Cold Chain, Food Processing and Preservation Units, and Operation Greens — to build farm-to-market linkages, reduce wastage of perishables, and ensure better prices for farmers. PMKSY operates as a central sector scheme, offering grants and credit support for private and cooperative investments across the agri-value chain.
What is Farm-Level Infrastructure (FLI)?→ Farm-Level Infrastructure (FLI) refers to the first-mile assets that connect farmers to the cold chain and processing ecosystem. Under ICCVAI, every project must include an FLI component such as pre-cooling units, collection centres, pack houses, grading and sorting facilities, or reefer transport. These components enable immediate handling of produce after harvest, reducing spoilage before it reaches the processing or storage stage. FLI ensures that perishable goods maintain quality and shelf life, making the cold chain both inclusive and efficient for small producers.
What is NABCONS?→ NABARD Consultancy Services (NABCONS) is a wholly owned subsidiary of the National Bank for Agriculture and Rural Development (NABARD). It provides consultancy, project appraisal, and monitoring services for agriculture, rural development, and infrastructure projects. In the context of PMKSY and ICCVAI, NABCONS serves as an independent evaluator and project management consultant, assessing implementation effectiveness, financial performance, and on-ground outcomes of MoFPI’s cold-chain initiatives. Its evaluations help refine scheme design and ensure accountability in public-private partnerships.
Relevant Question for Policy Stakeholders:
How can future ICCVAI projects integrate IoT, AI-based demand forecasting, and renewable-powered cold storage to make India’s cold-chain network more sustainable and affordable for small producers?
Follow the full news here: Cold Chain Scheme to Modernise Post-Harvest Infrastructure