Production Linked Incentive Scheme

Recently, the Production Linked Incentive Scheme for the Food Processing Industry (PLISFPI) achieved encouraging progress. The scheme recorded a cumulative investment of more than ₹9,000 crore against the committed investment target of around ₹7,000 crore.

About the Production Linked Incentive Scheme for the Food Processing Industry

The Production Linked Incentive Scheme for the Food Processing Industry (PLISFPI) was launched by the Ministry of Food Processing Industries. The scheme is an important initiative aimed at strengthening India’s food processing sector, promoting Indian food brands in international markets, and creating globally competitive food manufacturing companies.

The scheme focuses on increasing value addition in food products, expanding processing capacity, and generating employment opportunities, especially in rural areas and off-farm sectors. It also aims to reduce wastage of agricultural produce and improve the income of farmers.

Financial Outlay and Duration

The scheme is being implemented for a period of six years, from FY 2021–22 to FY 2026–27. The government has allocated a total financial outlay of ₹10,900 crore for its implementation.

Components of the Scheme

Incentives for Major Food Product Segments

The scheme provides incentives for the manufacturing of four major food product categories:

• Ready-to-Cook (RTC) and Ready-to-Eat (RTE) foods

• Processed Fruits and Vegetables

• Marine Products

• Mozzarella Cheese

The objective is to increase production, improve quality standards, and enhance the global competitiveness of Indian food products.

Support for Innovative and Organic Products

The scheme also promotes the production of innovative and organic food products by Micro, Small, and Medium Enterprises (MSMEs). This encourages small businesses to adopt modern food processing technologies and expand their market reach.

Branding and Marketing Support Abroad

Another important component of the scheme is support for branding and marketing in foreign markets. Financial assistance is provided for:

• In-store branding

• Shelf space renting

• Promotional and marketing activities abroad

This helps Indian food brands gain greater visibility and acceptance in international markets.

Objectives of the Scheme

Creation of Global Food Manufacturing Champions

One of the major objectives of PLISFPI is to support food manufacturing companies that are willing to invest in expanding their processing capacity. The scheme aims to create global food manufacturing champions capable of competing in international markets.

Strengthening Indian Food Brands

The scheme seeks to improve the global visibility and acceptance of Indian food products. By supporting branding and marketing abroad, it aims to establish strong Indian brands in the international food industry.

Employment Generation

PLISFPI aims to create large-scale employment opportunities, particularly in off-farm sectors such as food processing, packaging, transportation, and marketing. This is expected to benefit rural populations and support economic development.

Better Income for Farmers

The scheme also focuses on ensuring remunerative prices for agricultural produce. By increasing food processing activities, farmers can receive better prices for their crops and improve their overall income.

Conclusion

The Production Linked Incentive Scheme for the Food Processing Industry (PLISFPI) is an important initiative for strengthening India’s food processing sector. Through investment promotion, value addition, branding support, and employment generation, the scheme aims to transform India into a major global hub for food manufacturing while also improving the income and livelihoods of farmers.