Chronic Underutilisation of Funds in Food Processing Ministry
NEW DELHI: A recent report by a parliamentary panel has highlighted the persistent issue of “chronic underutilisation of funds” by the food processing ministry. This underperformance is particularly evident in flagship schemes such as the Pradhan Mantri Kisan Sampada Yojana (PMKSY) and the PM Formalisation of Micro Food Processing Enterprises Scheme (PMFME).
Budget Utilisation Concerns
According to the panel, led by former Punjab Chief Minister Charanjit Singh Channi, the ministry has only managed to utilise Rs 1,020 crore out of the revised estimate of Rs 2,530 crore for the fiscal year 2024-25, which amounts to a mere 42%. Furthermore, it was noted that the initial budget estimate was set at Rs 3,052 crore, indicating a significant shortfall in fund utilisation.
The report from the Standing Committee on Agriculture, Animal Husbandry, and Food Processing has also pointed out that the food processing ministry’s performance in the previous two financial years was unsatisfactory, with only about 75% of the revised budget being utilized.
Recommendations for Future Improvements
The panel emphasizes that while occasional underutilisation may occur due to unforeseen circumstances, chronic underutilisation indicates a lack of adequate planning and execution. In light of the increased budget allocation of Rs 4,364 crore for 2025-26, the responsibility now lies with the ministry to enhance infrastructure, support small and medium enterprises, and foster innovation within the food processing sector.
To address the issues of underutilisation, the panel has recommended a comprehensive review of the budgetary estimation process to ensure that allocated funds are fully utilized in the future.
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