Food processing likely to see budget cut as utilization falls

Ministry sees low expenditure in FY24 so far; may get a budgetary allocation of ₹3,087 crore

- Puja Das

The Ministry of Food Processing Industries (MOFPI) may get ₹3,087 crore in the upcoming interim budget for FY25, a senior official said, marking a 6% reduction from what was estimated for the current financial year.

This is because the ministry has spent only around ₹2,912 crore against a budget estimate (BE) of ₹3,287 crore for FY24.

"Although we proposed a higher budget allocation of ₹4,200 crore, we may be allotted around ₹3,087 crore in the FY25 budget," the official said. "The expenditure so far has been lower than the allocated budget in FY24 and since it is an interim budget, more funds may be given later if and when required."

"The allocation could be higher or lower than the quoted figure, but roughly it may be around ₹3,087 crore. We will come to know the final allocation once the interim budget is announced on 1 February."