Production linked incentive scheme for Food Processing Industry
On 31st March 2021, the Union
Cabinet approved the Central Sector Scheme - "Production Linked Incentive
Scheme for Food Processing Industry (PLISFPI)" with an outlay of Rs.
10,900 crores, to be implemented from 2021-22 to 2026-27. The scheme consists
of three components: incentivizing manufacturing in four major food product
segments (Ready to Cook/ Ready to Eat foods, Processed Fruits & Vegetables,
Marine Products and Mozzarella Cheese), promoting Innovative/Organic products
of SMEs, and supporting branding and marketing abroad for Indian brands.
Additionally, the PLI Scheme for Millet-based Products (PLISMBP) was launched
in the FY 2022-23 with an outlay of ₹800 crore, utilizing the savings under
PLISFPI.
Under the scheme, 158 applications have been approved for
availing incentives. As per the information received, the beneficiaries have
invested 7,427.22 crore (as on 31st March 2023) under the scheme. So far,
incentive of 517.604 Crore has been disbursed for the Financial Year 2021-22.
The Government is fully aware of the potential issues
that could arise from the PLISFPI scheme. To ensure its effectiveness and
fairness, proactive measures were taken during the scheme formulation stage.
Various stakeholders were actively engaged, and an extensive consultative
process was followed, involving large-scale manufacturers, SMEs, etc. As a
result, the scheme guidelines ensure the scheme benefits all stakeholders,
including farmers.
Category-II of the PLI scheme, with a specific focus on
Innovative and Organic products, is exclusively for eligible MSMEs. 16
applications have been selected under this particular category. Additionally,
22 applicants (out of 30 selected applicants) selected to participate under PLI
Scheme for Millet-based products are MSMEs. Apart from the PLI scheme, the
government has introduced several other schemes to offer support across entire
food value chain, which also helps SMEs in meeting international quality and
safety standards for their food products.
The scheme guidelines specify that the entire
manufacturing process, including primary processing, of the food products
eligible for coverage under the scheme must occur in India, with the exception
of additives, flavors, and edible oils. This approach aims to foster a strong
value chain that benefits farmers and supports domestic production. These
guidelines ensure farmer inclusivity, particularly for small-scale farmers, by
guaranteeing remunerative prices for farm produce and higher income.
This information was given by Union Minister of State for
Ministry of Food Processing Industries Prahlad Singh Patel in a written reply in the Lok Sabha.