Fund allocation for food processing sector reduced in Budget 2026
What's the story
Finance Minister Nirmala Sitharaman has presented the Union Budget 2026, her ninth consecutive central budget. In this year's Budget, a significant allocation of ₹4,061.43 crore has been made to the Ministry of Food Processing Industries. This is a decrease from the last year's allocation of around ₹4,364 crore for FY25.
Sector growth
Government's commitment to food processing sector
The government's commitment to the food processing sector is evident in its continued support, as reflected in the budget allocation. The sector plays a crucial role in boosting farm income and generating off-farm jobs. It also helps reduce post-harvest losses in agriculture and related sectors by investing in preservation and processing infrastructure both on- and off-farm.
Sector initiatives
Initiatives launched to boost growth
The Ministry of Food Processing Industries has launched several initiatives to boost the growth of the sector. These plans have been highly successful in 2025, with a significant increase in the share of processed food exports in total agri-food exports. The share increased from 13.7% in 2014-15 to an impressive 20.4% in 2024-25, according to official data.
Employment boost
Food processing industry as an employer
The food processing industry has emerged as one of the largest employers in the organized manufacturing sector. According to the Annual Survey of Industries (ASI) report for 2023-24, it accounts for a whopping 12.83% of total registered/organized sector employment. This further highlights the importance of this sector in India's economy and job market.