India is called the fruit and vegetable basket of the world. It is the second largest producer of food next to China. Its potentiality of being the largest food exporter in the world reflects not only in the quantity but also in the large variety of food. But among the produced foods hardly 2% of all is processed. There is a huge potentiality in food processing industry for the development of India. And Mega Food Park creates a synergy between the two pillars of the economy – Industry and Agriculture.


Mega Food Park Scheme is the hatchway to meet the goal of development. The capability of exporting fruits and vegetable to the West Asia and European Countries, abundant investment opportunities and a booming and promising industry will be helped by the Mega Food Park Scheme. Apart from cultivation of the food there is Food Processing Units in the Park which is used for IQF Frozen Foods, fruits and vegetables Processing, Mango / Tomato / Banana / Pineapple / Guava Processing, Pulp / Puree / Concentrates, Candies and many more things

Background and Objectives of the Scheme

  • Based on extensive feedback and consultations with various stakeholders the earlier Scheme of Food Parks under the 10th Five Year Plan has been revised and reformulated as Mega Food Parks Scheme (MFPS) for the 11th Five Year Plan period.
  • MFPS is expected to facilitate the achievement of the Vision 2015 of Ministry of Food Processing Industries to raise the processing of perishables in the country from the existing 6% to 20%, value addition from 20% to 35% and the share in global food trade from 1.5% to 3% by the year 2015.
  • The primary objective of the MFPS is to provide adequate / excellent infrastructure facilities for food processing along the value chain from the farm to market. It will include creation of infrastructure near the farm, transportation, logistics and centralized processing centers. The main feature of the scheme is a cluster based approach. The scheme will be demand driven, pre marketed and would facilitate food processing units to meet environmental, safety and social standards.

The expected outcome is increased realization for farmers, creation of high quality rural processing infrastructure, reduction in wastage, capacity building of the producers and processors and creation of an efficient supply chain along with significant direct and indirect employment generation

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Salient Features of the Scheme

  1. The scheme aims to facilitate the establishment of a strong food processing industry backed by an efficient supply chain, which would include collection centers, primary processing centers and cold chain infrastructure. The food processing units, under the scheme, would be located at a Central Processing Centre (CPC) with need based common infrastructure required for processing, packaging, environmental protection systems, quality control labs, trade facilitation centers, etc.
  1. The extent of land required for establishing the CPC is estimated to be between 50-100 acres, though the actual requirement of land would depend upon the business plan, which may vary from region to region. CPC would be supported by farm proximate Primary Processing Centers (PPC) and Collection Centres (CCs) in identified locations based on a techno-feasibility study, adequate to meet the requirements of the CPC. The land required for setting up of PPCs and CCs at various locations would be in addition to land required for setting up CPC.
  1. It is expected that on an average, each project will have around 30-35 food processing units with a collective investment of Rs 250 crores that would eventually lead to annual turnover of about Rs 450-500 crores and creation of direct and indirect employment to the extent of about 30,000. However, the actual configuration of the project may vary depending upon the business plan for each Mega Food Park. The aggregate investment in CPC, PPCs and CCs should be proportionate and commensurate to the size of the total project keeping in view the economies of scale. The Scheme is co-terminus with the 11th Plan period. However, projects which have received the final approval under the scheme shall continue to receive the grant support and benefits of the scheme.

What is Mega Food Park Scheme?

Mega Food Park Scheme is the flagship program of the Ministry of Food Processing Industries, Government of India. Mega Food Park Scheme proposes a demand driven/pre-marketed model with strong backward/forward linkages and sustainable supply chain. The primary objective of the proposed scheme is to facilitate establishment of integrated value chain, with processing at the core and supported by requisite forward and backward linkage.

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The scheme provides for creating infrastructure for farm level primary processing centre-cum- cold chain in identified clusters, processing of intermediate products, collection centre cum cold chains, centralized infrastructure to take care of processing activities, which require cutting edge technologies and testing facilities, besides the basic infrastructure for water supply, power, environmental protection systems, communication etc. The supply chain will establish on-Farm Primary Processing Centre cum cold chain facilities for aggregation of the produce at village level, which will be linked, to the retail outlets/processing parks through appropriate produce aggregation facility and collection centre cum cold chain and Reefer van transportation net works. The scheme is proposed to be entrepreneur driven to be implemented on a PPP basis.

The scheme envisages a onetime capital grant of 50% of the project cost subject to a maximum of Rs. 50 crores in general areas and 75% of the project cost subject to a ceiling of Rs. 50 crores in difficult and hilly areas i.e. North East Region including Sikkim, J&K, Himachal Pradesh, Uttarakhand and ITDP notified areas of the States.

Special Purpose Vehicle for Management of Mega Food Parks

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