New Delhi, Dec 4: Jammu & Kashmir figures prominently among the “difficult areas” receiving higher financial assistance under the Centre’s Agro Processing Cluster (APC) scheme, the Ministry of Food Processing Industries (MoFPI) said on Thursday while presenting an update on nationwide cluster development under the Pradhan Mantri Kisan Sampada Yojana (PMKSY).
The Ministry confirmed that 40 agro processing clusters have been approved across the country since 2020, including those in Himalayan States such as J&K, Himachal Pradesh and Uttarakhand, as well as North Eastern states, ITDP regions and Islands. These locations qualify for 50% central grant support, compared to 35% in general areas, with a ceiling of ₹10 crore per project.
The APC scheme aims to create modern infrastructure through a cluster-based approach, enabling entrepreneurs to establish food processing units supported by common basic and core facilities. The clusters are designed to boost rural employment, strengthen agricultural value chains and benefit large numbers of farmers through improved market access.
According to the Ministry, project implementation agencies are responsible for securing statutory clearances, land acquisition, and ensuring market linkages and technology adoption. Wherever required, MoFPI intervenes with concerned departments to resolve implementation challenges.
Since 2020, the Ministry has sanctioned clusters with investments from private companies, LLPs, partnerships and government institutions. Several clusters—such as those in Assam, Kerala and Odisha—have already become operational, generating employment and benefitting thousands of farmers. A detailed state-wise and project-wise status, including investment profiles and employment estimates, has been provided as part of the official annexure.
The information was shared by Minister of State for Food Processing Industries Shri Ravneet Singh in a written reply in the Lok Sabha.
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