The Ministry of Food Processing Industries has successfully implemented the productivity linked income (PLI) scheme for the food processing industry (PLISFPI), with an investment of Rs 8,910 crore across 213 locations in the country. This scheme, which received approval from the Union Cabinet in March 2021, has a budget of Rs 10,900 crore for its implementation from 2021-22 to 2026-27.
The PLISFPI scheme has already shown promising results, with the creation of 2.89 lakh jobs as of 31 October 2024. This has been made possible through the enrolment of 171 applicants, selected through a one-time process. The government has also conducted awareness campaigns to encourage more participation in the scheme.
One of the key objectives of the PLISFPI scheme is to reduce the reliance on imported edible oils, flavours, and additives in the food processing industry. This has led to an increase in the use of locally sourced raw materials, providing financial stability to farmers and rural areas. The focus on local production of raw materials for processed food has also created more job opportunities in rural areas, contributing to their economic development.
The government has been actively supporting small and medium enterprises (SMEs) in the food processing sector through various schemes such as the Pradhan Mantri Kisan Sampada Yojana (PMKSY), PLISFPI, and the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme. These schemes provide technical and financial support, as well as assistance in marketing for SMEs.
Under the PLI scheme, 70 MSMEs have directly enrolled and 40 have indirectly contributed through contract manufacturing for larger establishments. The scheme also provides reimbursement of 50% of the marketing and branding expenses incurred by the beneficiaries for promoting their products abroad. This is subject to a limit of three percent of their annual income or Rs 50 crore, whichever is lower. To be eligible, applicants must spend at least Rs 5 crore over a period of five years.
The successful implementation of the PLISFPI scheme has not only created job opportunities and boosted the economy, but also promoted the use of locally sourced raw materials and supported SMEs in the food processing industry. This will have a positive impact on the overall growth and development of the sector, contributing to the government’s goal of making India self-reliant in the food processing industry.