The government announced on Friday that the production-linked incentive (PLI) for the food processing industry in New Delhi has resulted in the creation of over 2.89 lakh jobs as of October 31. According to the Ministry of Food Processing Industries, the scheme’s beneficiaries have invested Rs 8,910 crore in 213 locations across the country.
The PLI scheme for Food Processing Industry (PLISFPI) was approved by the Union Cabinet on March 31, 2021, with a budget of Rs 10,900 crore for the period of 2021-22 to 2026-27. The ministry reported that 171 applicants have been enrolled under the scheme. The selection process for beneficiaries was conducted as a one-time exercise, preceded by active stakeholder engagement and extensive publicity to ensure broad participation.
The ministry highlighted that the scheme has significantly contributed to the country’s overall growth and development by promoting domestic manufacturing, increasing value addition, boosting the production of raw materials, and creating employment opportunities. It also emphasized that the PLI scheme has had a positive impact on underdeveloped and rural areas by mandating the use of domestically-grown agricultural products in the manufacturing process, which has benefited farmers’ incomes.
The ministry also mentioned that the scheme has provided support to small and medium enterprises (SMEs) in the food processing sector through various schemes like Pradhan Mantri Kisan Sampada Yojana (PMKSY), PLISFPI, and Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME). These schemes offer financial, technical, and marketing support to SMEs, enabling them to expand their capacity, innovate, and formalize their operations.
Under the PLI scheme, a significant number of beneficiaries are MSMEs, with 70 MSMEs directly enrolled and 40 others contributing as contract manufacturers for larger companies. The scheme also provides reimbursement of 50% of the expenditure on branding and marketing abroad, capped at 3% of the annual food product sales or Rs 50 crore per year, whichever is lower. To qualify for the scheme, applicants must spend a minimum of Rs 5 crore over five years. Currently, there are 73 beneficiaries under this component of the PLI scheme.
In conclusion, the PLI scheme for the food processing industry has been successful in creating employment opportunities, promoting domestic manufacturing, and supporting the growth of SMEs in the sector. The government’s active support through various schemes has contributed to the overall development of the country.