§1How big it is

§2Ways to get started

  • Spice grinding and packaging (masala) unit
  • Flour mill / besan / sattu packaging
  • Pickles, papad, chutney - home-scale to FSSAI-licensed unit (PMFME fits here)
  • Bakery and namkeen for local brands
  • Cold-pressed oil (kachi ghani) unit
  • Fruit pulp / juice / jam unit near an orchard belt
  • Dehydrated vegetables and onion flakes
  • Contract manufacturing (private label) for D2C food brands

See the Business Encyclopedia

§3Hubs and clusters

  • Indore (soya meal and soya products) - Town of Export Excellence
  • Malihabad, UP (horticulture products) - Town of Export Excellence
  • Kollam, Kerala (cashew products) - Town of Export Excellence
  • Seafood towns: AEKK (Kerala), Visakhapatnam and Bhimavaram (AP), Thoothukudi (TN), Bhubaneswar (Odisha)

§4Licences and registration

  1. FSSAI Registration (petty food business) or State / Central FSSAI Licence depending on turnover and capacity
  2. Legal Metrology registration as manufacturer/packer of packaged commodities
  3. AGMARK grading (optional; for some products like ghee, honey, spices when sold under AGMARK)
  4. BIS certification only where a QCO covers the product (e.g. packaged drinking water is under compulsory BIS)
  5. APEDA / MPEDA / Spices Board / Tea / Coffee Board registration (RCMC) for exports, depending on product
  6. FSSAI import clearance for imported ingredients
  7. Udyam Registration (MSME) - free, online, PAN + Aadhaar based
  8. GST registration (mandatory above turnover threshold or for inter-state supply / e-commerce sale)
  9. Shops & Establishment registration or Factory Licence (Factories Act / state rules) depending on size and power use
  10. Consent to Establish and Consent to Operate from the State Pollution Control Board - category (Red/Orange/Green/White) as per CPCB 2025 harmonised list; White category is exempt from consent
  11. IEC (Importer Exporter Code) from DGFT if you import or export

§5Regulators

  • FSSAI (Ministry of Health & Family Welfare)
  • Ministry of Food Processing Industries (MoFPI) - promotion and schemes
  • Legal Metrology (packaged commodities labelling) - state Legal Metrology department
  • State Pollution Control Board

§6Government help

  • PMFME - PM Formalisation of Micro Food Processing Enterprises (35% credit-linked subsidy for micro units; SHG seed capital)
  • PMKSY - Pradhan Mantri Kisan SAMPADA Yojana (mega food parks, cold chain, agro-processing clusters, food testing labs, backward-forward linkages, operation greens)
  • PLISFPI - PLI Scheme for Food Processing Industry (outlay Rs 10,900 crore, 2021-22 to 2026-27)
  • Agriculture Infrastructure Fund (AIF) - interest subvention on post-harvest infra loans
  • MIDH - Mission for Integrated Development of Horticulture (pack-houses, cold storage, ripening chambers)
  • NABARD Food Processing Fund (Rs 2,000 crore) for units in designated food parks
  • Operation Greens (TOP to TOTAL) under PMKSY
  • APEDA / MPEDA export assistance schemes
  • Cross-sector schemes that also apply (detailed in the programmes file): Udyam benefits, PMEGP, PM Mudra Yojana, CGTMSE credit guarantee, Stand-Up India, MSE-CDP (cluster development), RAMP, MSME ZED and Lean certification, MSME Champions, TReDS, Startup India (SISFS seed fund, Fund of Funds, CGSS), RoDTEP, EPCG, Advance Authorisation, Districts as Export Hubs, ODOP (One District One Product)

All schemes

§7For exports

  • APEDA (processed foods, fruits & veg, meat, cereals)
  • MPEDA (seafood)
  • Spices Board
  • Tea Board, Coffee Board, Coconut Development Board
  • EIC - Export Inspection Council (export certification)

§8Pros and cons

Merits

  • Large unregistered workforce (4.68 million) shows most of the industry is small and entry is possible at micro scale [PIB WFI 2025]
  • Dedicated micro-unit scheme exists (PMFME) with seed capital already given to SHG members - Rs 245 crore to 70,000 SHG members [PIB WFI 2025]
  • Export pull is rising: processed food share of agri-food exports went from 13.7% to 20.4% in a decade [PIB WFI 2025]
  • 100% FDI permitted under automatic route [PIB WFI 2025]

Demerits

  • Raw material is seasonal - working capital spikes in procurement season
  • Food safety compliance (FSSAI licence, labelling, lab tests) is ongoing, not one-time
  • Thin margins in commodity products (atta, oil, rice); branding and distribution cost is high
  • Cold chain gaps raise wastage for perishables

Sources

  1. PIB backgrounder (MoFPI): World Food India 2025 (24 Sep 2025)
  2. DGFT Foreign Trade Policy Appendix 1B - List of Towns of Export Excellence
  3. FSSAI - Food Safety and Standards Authority of India