Parl Panel flags ‘chronic’ underutilisation of allocated budget by food processing ministry | India News

_{NEW DELHI: A parliamentary panel has pointed to “chronic underutilisation of funds” by the food processing ministry for flagship schemes, including in Pradhan Mantri Kisan Sampada Yojana (PMKSY) and PM Formalisation of micro food processing enterprises scheme (PMFME). It said this reflects inadequate planning and execution by the ministry.
The panel headed by former Punjab CM and Congress leader Charanjit Singh Channi has mentioned that in the 2024-25 (till February 11), the ministry has utilised only Rs 1,020 crore against the revised estimate of Rs 2,530 crore, which is barely 42%. The budget estimate at the beginning of the financial year was Rs 3,052 crore.
The report by standing committee on agriculture, animal husbandry and food processing, in its latest report on Demand for Grants for FY26, has also said that that the past performance of the food processing ministry in terms of utilisation of funds in the previous two financial year was also not been satisfactory as it could utilize only about 75% of the downwardly revised budget estimate.
“While occasional underutilisation may be justifiable due to unforeseen circumstances, chronic underutilization of funds reflects inadequate planning and execution,” the report said.
Taking note of higher allocation of Rs 4,364 crore for 2025-26, which is the highest ever allocation, the panel said the onus is now on the ministry to create quality infrastructure, provide better opportunities for small and medium enterprises in the sector to grow, and foster innovation and competitiveness in the food processing industry.
Regarding under-utilisation of funds in the current fiscal, the panel has recommended the ministry to have a thorough review of the budgetary estimation process to ensure full utilisation of the allocated funds in future.}