The Union Cabinet approved the Production Linked Incentive Scheme for the Food Processing Industry (PLISFPI) on March 31, 2021, allocating a budget of Rs 10,900 crore for its implementation from 2021-22 to 2026-27.
A total of 171 applicants have been registered under the scheme. The selection process for beneficiaries was carried out as a one-time initiative, following thorough stakeholder engagement and extensive outreach efforts to encourage widespread participation.
The initiative has played a crucial role in the nation’s growth and development by increasing domestic manufacturing, improving value addition, enhancing the local production of raw materials, and generating job opportunities.
It provides support to large corporations, millet-based products, innovative and organic goods, as well as small and medium enterprises, while also promoting Indian brands on a global scale.
According to reports from beneficiaries of the initiative, an investment of Rs 8,910 crore has been made across 213 sites. As of October 31, 2024, the initiative has reportedly created over 289,000 jobs.
The scheme has significantly boosted the procurement of locally grown agricultural products (excluding additives, flavors, and edible oils) in the manufacturing process. This initiative not only supports farmers’ incomes but also benefits underdeveloped and rural areas.
Additionally, the focus on sourcing raw materials locally for processed foods has created more off-farm job opportunities, greatly enhancing the economic development of rural communities.
The government is actively promoting Small and Medium Enterprises (SMEs) in the food processing sector through initiatives such as the Pradhan Mantri Kisan Sampada Yojana (PMKSY), the Production Linked Incentive Scheme for Food Processing Industries (PLISFPI), and the Pradhan Mantri Formalisation of Micro-food Processing Enterprises (PMFME) scheme.
These initiatives offer financial, technical, and marketing assistance to SMEs, enabling them to expand their capacity, foster innovation, and achieve formalization. Additionally, SMEs can benefit from various components of the PMKSY scheme.
The PMFME scheme specifically aims to formalise unorganised units, enhancing their access to institutional credit, modern infrastructure, and improved food processing capabilities.
The PLI scheme has notably benefited a large number of MSMEs, with 70 of them directly participating and an additional 40 acting as contract manufacturers for larger firms.
Together, these efforts have bolstered SMEs by promoting innovation, enhancing competitiveness, increasing market access, creating job opportunities, and supporting the overall value chain in the food processing sector.
Under the Production Linked Incentive Scheme for Food Processing Industries (PLISFPI), the Government provides financial incentives to promote Indian food brands abroad, supporting branding and marketing activities for Indian-branded consumer food products in global markets.
Beneficiaries are compensated 50% of their expenditure on branding and marketing abroad, capped at 3% of their annual food product sales or Rs 50 crore per year, whichever is lower.
Applicants are required to spend a minimum of Rs 5 crore over five years to qualify. Currently, there are currently 73 beneficiaries under this component of the PLI scheme.
Pune – 29 Nov 2024 Chennai – 30 Nov 2024 Mumbai – 1 Dec 2024 Pune – 14 Dec 2024 Link:https://docs.google.com/forms/d/e/1FAIpQLSd-aYHLYmoYNHNIq642FpxShzToJE2w76rpk5B2YruThXICrA/viewform
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