With robust participation from local enterprises and national players, Bihar’s food processing ecosystem is poised for transformation – creating jobs, reducing food wastage, and improving farmers’ income in the long run.
In a significant move to enhance the food processing sector in Bihar, the Ministry of Food Processing Industries (MoFPI) has revealed substantial investments and project approvals under three central government schemes: Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), PM Formalization of Micro Food Processing Enterprises (PMFME), and the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI). These schemes aim to support private companies, startups, and cooperatives in setting up and expanding infrastructure in the food processing industry.
The details were shared by Union Minister of State for Food Processing Industries, Shri Ravneet Singh, in a written reply in the Rajya Sabha on Friday.
Investments Under PMKSY
While the Mega Food Park Scheme – a key component under PMKSY – was discontinued in April 2021, its impact in Bihar remains significant. Two major projects under the scheme were approved: Pristine Mega Food Park Pvt. Ltd. in Khagaria, with a project cost of ₹120.13 crore and ₹34.8 crore released as grant-in-aid, and a newer initiative by the Bihar Industrial Area Development Authority (BIADA) in Muzaffarpur with a ₹180.57 crore project cost.
The Integrated Cold Chain and Value Addition Infrastructure Scheme has supported companies such as Ganga Dairy Ltd. (Begusarai), RK Agri Biz LLP (Muzaffarpur), and ABZ Agro Pvt Ltd (Kishanganj), among others. The total approved grants range from ₹3.05 crore to ₹10 crore for these ventures.
Additionally, several infrastructure and capacity expansion projects – such as Shreekangan Food Park in Begusarai and Anmol Industries in Kishanganj – received financial backing, promoting storage, processing, and value addition capabilities across the state.
Empowering Micro Enterprises Through PMFME
The PMFME scheme, launched to support micro food processors and Self Help Groups (SHGs), has seen widespread implementation across all 38 districts of Bihar. Over 28,000 micro enterprises have received approval for credit-linked loans, amounting to nearly ₹1,400 crore.
The highest number of sanctions was recorded in Patna (2,185), followed by Muzaffarpur (1,217) and Samastipur (1,317). These approvals reflect the rising entrepreneurial activity in rural and semi-urban Bihar.
SHGs have also received significant seed capital support. Darbhanga led the chart with 1,431 SHG members approved, while Nalanda and Gaya followed closely. A total of over 25,000 SHG members have been supported, with sanctioned seed capital exceeding ₹90 crore across districts.
Industry Giants Invest Under PLISFPI
The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) has attracted notable investments from some of India’s largest FMCG players. Seven major projects have been approved in Bihar, bringing in high-value investments and promising job creation.
Among them:
- Britannia Industries invested ₹151.51 crore in Patna and received an incentive of ₹204.54 crore.
- Varun Beverages Ltd. committed ₹113 crore in Begusarai, receiving ₹49.28 crore in incentives.
- Hindustan Unilever Ltd. invested ₹122.53 crore in Vaishali, with ₹56.06 crore released as incentives.
- Anmol Industries contributed ₹194.96 crore in Kishanganj.
- Bikaji Foods, with projects in Muzaffarpur and Patna, and Tata Consumer Products Ltd. in Vaishali, also featured prominently.
These investments reflect Bihar’s growing attractiveness as a food processing hub, driven by infrastructure, financial incentives, and skilled local workforce.
A Demand-Driven Approach
The MoFPI clarified that these schemes are not region-specific but demand-driven, meaning projects are approved based on proposals submitted by eligible entities – including private firms, cooperatives, and startups – across the country. Bihar’s active participation underlines the state’s proactive approach in leveraging these schemes to spur economic growth.
With robust participation from local enterprises and national players, Bihar’s food processing ecosystem is poised for transformation – creating jobs, reducing food wastage, and improving farmers’ income in the long run.
