Agri value chain gets twin push with outlay on processing and co-ops

The Cabinet Committee on Economic Affairs (CCEA) has raised the outlay for the Pradhan Mantri Krishi Sampada Yojana (PMKSY) to ₹6,520 crore, adding ₹1,920 crore till FY26 to bolster the food processing sector.

The additional allocation, to be provided this fiscal, will be used to set up 50 multi-product food irradiation units and 100 food testing laboratories.

Launched in 2017, PMKSY has been extended by a year till the end of FY25 with an initial outlay of ₹4,600 crore. The ₹1,920 crore enhancement aligns with the Union Budget announcement to scale up support for the food processing industry.


"The implementation of the proposed 50 multi-product food irradiation units is expected to create total preservation capacity ranging between 20 and 30 lakh metric tonnes (LMT) per annum, depending on the type of food products irradiated," the government said in an official statement.

It added that 100 NABL-accredited food testing labs in the private sector will "develop advanced infrastructure for food sample testing, ensure compliance with safety standards, and facilitate the supply of safe food."

Nod to ₹2,000-Cr Scheme for NCDC

The Cabinet also approved a central sector scheme titled 'Grant-in-aid to National Cooperative Development Corporation (NCDC)' with an outlay of ₹2,000 crore for four years from FY26 to FY29.

This funding will allow NCDC to raise ₹20,000 crore from the open market over the same period. These funds will be deployed as loans to cooperatives for new projects, plant expansions, and working capital requirements.

"Approximately 2.9 crore members of 13,288 cooperative societies across sectors like dairy, livestock, fisheries, sugar, textiles, food processing, storage, cold chains, labour, and women-led cooperatives are expected to benefit," the statement said.

India has over 8.25 lakh cooperatives with more than 29 crore members, and 94% of farmers are associated with cooperatives in some form.

Four Multitracking Rail Projects Worth ₹11,169 Cr Approved

The CCEA also cleared four multitracking railway projects in Maharashtra, Madhya Pradesh, West Bengal, Bihar, Odisha, and Jharkhand worth around ₹11,169 crore.

According to an official release, these projects will expand the Indian Railways network by 574 km and are expected to be completed by FY29.

The routes are critical for transporting coal, cement, clinker, gypsum, fly ash, containers, agricultural commodities, and petroleum products. The capacity expansion will allow an additional 95.91 million tonnes per annum (MTPA) of freight movement.

Projects approved include the Itarsi-Nagpur 4th line, Aurangabad (Chhatrapati Sambhajinagar)-Parbhani doubling, Aluabari Road-New Jalpaiguri 3rd & 4th lines, and Dangoaposi-Jaroli 3rd & 4th lines.

The increased track capacity will significantly improve mobility, operational efficiency, and service reliability for Indian Railways.