Food processing ministry may get lower allocation in interim budget
NEW DELHI : The Union ministry of food processing industries may get a lower allocation in the interim budget for FY2024-25 following lower expenditure in the ongoing financial year, a senior MoFPI official said. The ministry has spent about ₹2,912 crore so far in FY2023-24, against the budget estimate of ₹3,287 crore for the financial year.
“Although we proposed a higher budget allocation of ₹4,200 crore, we may be allotted around ₹3,087 crore in the FY25 Budget," the official said. “The expenditure so far has been lower than the allocated budget in FY24, and since it is an interim budget, more funds may be given later if and when required." The official, however, clarified that the FY25 budget allocation figure was not definite.
“The allocation could be higher or lower than the quoted figure, but roughly it may be around ₹3,087." MoFPI is expected to be allocated over ₹1,200 crore for the production linked incentive (PLI) scheme for the food processing industry, about ₹900 crore for the Pradhan Mantri Formalisation of Micro Food Processing Enterprises scheme, and about ₹750 crore for the Pradhan Mantri Kisan Sampada Yojana (PMKSY) in FY25, according to the official. For FY24, the ministry received an allocation of ₹2,453 crore for the PLI scheme, ₹1,530 for PMKSY, and ₹639 crore for the scheme for micro food-processing enterprises.
MoFPI and the expenditure department did not immediately reply to queries on the expected budget allocation for FY25. “The government is supporting and nurturing food startups and processing, but it should also focus on addressing labour challenges that cause a lack of interest among farmers, especially the younger generation, in cultivating millets," said Shantanu Patil, co-founder of
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