Production Linked Incentive Scheme for the food processing industry | Fusion - WeRIndia

Production Linked Incentive Scheme for the food processing industry

Production Linked Incentive Scheme for the food processing industry

To support Indian brands in food processing abroad, the Union Cabinet yesterday approved the Production Linked Incentive (PLI) Scheme with a budget of ₹10,900 crores.

The main objective of the PLI scheme is to support food manufacturing entities for increasing their processing capacity and branding globally. However, they have to make a stipulated investment and assure minimum sales. But this rule is not applicable for those entities that make innovative and organic products.

Entities can have global visibility and reach more people across the globe with this scheme. Besides, the scheme aims to boost the remunerative prices of farm produce and the income of farmers. It also intends to generate more employment opportunities.

The scheme has two elements – while the first element encourages business entities in food processing with grants, the second element provides support for creating branding and marketing.


Here are the important features of the PLI scheme for the food processing industry:

  • The PLI scheme will be implemented for six years, starting from 2021-22 to 2026-27.
  • A Project Management Agency (PMA) will implement it. Within six years, the scheme is likely to create employment for around 2.5 lakh individuals.
  • It aims to incentivize the manufacturing of four major food product segments. These include Ready to Cook or Eat foods, Processed Fruits and Vegetables, Marine Products, and Mozzarella Cheese.
  • Innovative and organic products of small and medium enterprises like eggs and egg products and poultry meat also fall in the above category.
  • Entities can submit applications for grants and get them for marketing, in-store branding, and shelf space renting. They have to invest a stipulated amount, which is a mandated investment. They have quote their investment for two years towards plant and machinery in the application.
  • If they already invested in 2020-21, it will also be counted.

Image by Ancelin Bonnet from Pixabay (Free for commercial use)


Image Reference: https://pixabay.com/photos/fruit-mango-parts-png-yellow-1218129/

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