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News: The Production Linked Incentive (PLI) Scheme for Food Processing Industry (PLISFPI) was launched recently to strengthen India’s food processing sector.
About Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)
![Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)[Central Sector Scheme]](https://i0.wp.com/www.mofpi.gov.in/sites/default/files/pli_e.png?resize=562%2C228&ssl=1)
- It is a government scheme to modernize and enhance competitiveness of the food processing industry.
- Nodal Ministry: It has been launched by the Ministry of Food Processing Industries.
- Type: Central Sector Scheme
- Aim: It aims to strengthen India’s food processing sector, promote Indian brands globally, and create global food manufacturing champions.
- Duration: It will be implemented for over six years from 2021-22 to 2026-27.
- Budget: The total financial outlay of the scheme is ₹10,900 crore.
- Objectives of the Scheme
- The scheme seeks to enhance value addition in the food processing sector.
- It focuses on expanding processing capacity across the country.
- It intends to generate employment opportunities, particularly in rural and non-farm sectors.
- It also focuses on promoting Indian food brands in global markets.
- Key Components of the Scheme:
- First Component: The scheme incentivizes the manufacturing of major food product segments such as Ready-to-Cook/Ready-to-Eat foods, processed fruits and vegetables, marine products, and mozzarella cheese.
- It also covers innovative/ Organic products of Small and Medium Enterprises (SMEs), including free range – Eggs, Poultry Meat, and Egg Products in these segments under the above component.
- Second Component: It relates to production of Innovative / Organic products of SMEs.
- Third Component: It also provides support for branding and marketing abroad, including in-store branding and shelf space renting.
- It encourages the use of millets in food products and promotes value addition under the millet-based PLI component.
- First Component: The scheme incentivizes the manufacturing of major food product segments such as Ready-to-Cook/Ready-to-Eat foods, processed fruits and vegetables, marine products, and mozzarella cheese.
- Eligibility: Applicants shall be: Proprietary Firm or Partnership Firm or Limited Liability Partnership (LLP) or a Company registered in India; Co-operatives and Small & Medium enterprises.
- Coverage: A total of 128 companies have been approved under the scheme, covering 274 units across the country.
- The scheme includes strong MSME participation with 68 MSME applicants. It also supports 40 contract manufacturing units.
- Achievements:
- Growth in Sales and Exports: Sales of PLI-supported products have increased at a CAGR of 10.58%. Export sales of these products have grown at a CAGR of 7.41%.
- Promotion of Millet-Based Products: Sales of millet-based products increased from ₹345.73 crore in FY 2022–23 to ₹1845.25 crore in FY 2024–25.
- Procurement of millets increased from 1103.18 metric tonnes to 17089.16 metric tonnes. This reflects nearly a 15-fold increase in millet procurement.
- Impact on Value Addition and Supply Chain: The scheme ensures that complete value addition of products takes place within India. It strengthens the farm-to-fork value chain and reduces post-harvest losses.
