PLI Scheme: A Game Changer in the Food Processing Industry
The government recently approved the PLI scheme for the food processing sector. Under the scheme, the government will provide incentives of Rs. 10,900 crores for industries in the food processing sector over the period of the next five years.
“The government’s effort is to take India’s food processing sector to the next level amid the rising global demand for Indian made food products. It is our tribute to farmers who increased the agriculture production by 3-3.5% despite the pandemic,” said Union Minister Piyush Goyal, while announcing the government decision.
The scheme which will be valid till 2026-27 will facilitate the expansion of domestic food-processing capabilities to produce additional Rs. 33,500 crores worth of processed foods and thereby boost exports. The government aims to generate 2.5 lakh employment through the scheme in the next six years.
As per the government, incentives under the scheme will be provided to four major product segments of ready-to-eat/ready-to-cook, processed fruits and vegetables, marine products, and mozzarella cheese, apart from organic and innovative products of MSMEs such as eggs, poultry meat, egg products, etc. The government also provides incentives to industries for branding and marketing abroad to make the local players globally competitive.
The announcement has been lauded by the industry. The Confederation of Indian Industry (CII), a trade association and advocacy group, welcomed the scheme terming it a game-changer for the food processing industry. “The Production Linked Incentive Scheme for Food Processing Industry will enable the creation of modern infrastructure with efficient supply chain management from farm gate to retail. This will create an enabling ecosystem for aggregation, collaboration and access to export markets,” Suresh Narayanan, Chairman, CII National Committee on Food Processing Industries said.
The government has been very supportive of the food processing industry, which was badly hit by the pandemic. Earlier, the government announced the ODOP scheme for the sector under which one product for each district across the country will be identified and promoted. ODOP is central to Prime Minister Narendra Modi’s call of Vocal for Local. This scheme will act as a complement to the ODOP scheme, helping to boost the food processing industry in India.
The PLI scheme is being rolled out for 13 sectors in the manufacturing industry. The government has already announced the scheme for some sectors such as pharmaceutical, mobile manufacturing, electrical and electronics and others apart from the food processing industry. The main objective of the PLI scheme for various sectors is to make India a global manufacturing hub.
The eligibility criteria of the PLI scheme for the food processing sector along with details including minimum investment and annual turnover for applicants will be announced soon after consultation with the industry. The selection of applicants and allocation of funds as incentives will be undertaken by the Ministry of Food Processing Industries.
If you are interested in setting up the food processing industry or diversifying your existing business, then kindly reach out to Food processing consultants at Solutionbuggy to know if your unit is eligible to avail benefits of the scheme and how to apply for the same.
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