PLI scheme for food processing

Production Linked Incentive Scheme for Food Processing Industry

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 with an outlay of Rs. 10900 crore

Objectives of the Scheme:

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.

Salient features:

The first component relates to incentivising manufacturing of four major food product segments viz. Ready to Cook/ Ready to Eat (RTC/ RTE) foods, Processed Fruits & Vegetables, Marine Products, Mozzarella Cheese.

 Innovative/ Organic products of SMEs including Free Range -Eggs, Poultry Meat, Egg Products in these segments are also covered under above component.

 ● The selected applicant will be required to undertake investment,

as quoted in their Application

(Subject to the prescribed minimum) in Plant & Machinery in the first two years i.e. in 2021-22 & 2022-23.

● Investment made in 2020-21 also to be counted for meeting the mandated investment.

The conditions of stipulated Minimum Sales and mandated investment will not be applicable for entities selected for making innovative/ organic products.

● The second component relates to support for branding and marketing foreign to incentivise emergence of strong Indian brand.

 ● For promotion of Indian trade name abroad the scheme envisages grant to the applicant entities

for – in store , shelf space renting and promote

● will be implemented over a six year period from 2021-22 to 2026-27

Major impact, including employment generation potential

  • 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.
Key Outcomes: Estimated Outgo, Sales, Investment, Employment & Exports
Outgo on Incentive (₹ Crore)10,790
Increase in Sales- 6 Years (₹ Crore)1,20,267
Incremental Sales in 6th Year (₹ Crore)33,494
Cumulative additional Investment (₹ Crore)6,057
Increase in Export Sales- 6 Years (₹ Crore)27,816
Increase in Employment end of Year-5 (Nos)2,47,730

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