The government on Wednesday approved a production-linked incentive (PLI) scheme for the food processing sector, entailing an outlay of Rs 10,900 crore.
The Union Cabinet chaired by Prime Minister Narendra Modi approved the Central Sector Scheme – “Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)” to support creation of global food manufacturing champions commensurate with India’s natural resource endowment and support Indian brands of food products in the international markets.
“The PLI for the food processing sector with Rs 10,900 crore incentive has been approved. The decision is a fitting tribute to our farmers,” Food Minister Piyush Goyal said while briefing the media about the cabinet decisions.
Information and Broadcasting Minister Prakash Javadekar said that the government in the Budget had announced PLI scheme for 12-13 sectors. PLI has been announced for six sectors already. “Today, PLI for the food processing industries has been approved,” he said.
This will boost the production of value-added food products, attract foreign investment, create job opportunities besides benefiting farmers with remunerative prices for the produce, he added.
As per the government release, the objectives of the scheme are to support food manufacturing entities with stipulated minimum Sales and willing to make minimum stipulated investment for expansion of processing capacity and Branding abroad to incentivise emergence of strong Indian brands.:
Support creation of global food manufacturing champions; Strengthen select Indian brand of food products for global visibility and wider acceptance in the international markets; Increase employment opportunities of off-farm jobs, Ensuring remunerative prices of farm produce and higher income to farmers.
The scheme will be implemented over a six-year period from 2021-22 to 2026-27. The implementation of the scheme would facilitate expansion of processing capacity to generate processed food output of Rs 33,494 crore and; Create employment for nearly 2.5 lakh persons by the year 2026-27.
The Scheme would be monitored at Centre by the Empowered Group of Secretaries chaired by the Cabinet Secretary. Ministry of Food Processing Industries would approve selection of applicants for coverage under the scheme, sanction and release of funds as incentives.
The Ministry will prepare an Annual Action Plan covering various activities for implementation of the scheme. A third-party evaluation and mid-term review mechanism would be built in the programme.