Food Processing PLI surpasses investment, employment targets as industry capacity expands: Govt
New Delhi, July 23
The Production Linked Incentive Scheme for the food processing industry has exceeded its committed investment and employment targets, with approved companies investing ₹9,207 crore and generating around 3.35 lakh direct and indirect jobs, the government informed Parliament on Thursday.
Replying to a question in the Lok Sabha, Food Processing Industries Minister Chirag Paswan said the scheme has attracted investments above the committed level of ₹7,722 crore, while employment generation has surpassed the target of 2.5 lakh.
The government said investments under the scheme have created food processing capacity of 34 lakh metric tonnes per annum, while sales of PLI-supported products increased from ₹58,758 crore in FY20 to ₹1,08,854 crore in FY26, reflecting expansion in domestic processing and value addition.
The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), with an approved outlay of ₹10,900 crore for the period from FY22 to FY27, aims to promote domestic processing and value addition, support the creation of global food manufacturing champions, strengthen Indian food brands in overseas markets and generate employment.
According to the minister, 163 applications from 127 companies, including 69 micro, small and medium enterprises (MSMEs), are currently covered under the scheme across 22 states and 212 locations. Incentives amounting to ₹3,271.44 crore had been disbursed up to June 2026.
To strengthen exports, the scheme provides financial support for branding and marketing of Indian food products abroad, with incentives of 50 per cent of eligible expenditure, subject to prescribed limits. It also supports adoption of modern processing, packaging and manufacturing technologies and includes a dedicated category for small and medium enterprises engaged in innovative and organic food products.
The minister also said the government continues to support the food processing ecosystem through the Prime Minister Formalisation of Micro Food Processing Enterprises (PMFME) Scheme, which provides credit-linked capital subsidy, technology upgradation, common infrastructure, branding support and entrepreneurship training to improve value addition and export readiness of micro food processing enterprises.
— ANI
Reader Comments
Impressive numbers! As someone who works in agri-business, I can see the difference. The 50% branding support for exports is a game-changer. Indian spices and ready-to-eat foods are getting serious traction in Western markets now. 🚀
While numbers look good on paper, I wonder about the ground reality. Are these jobs actually sustainable and well-paying? Also, the disbursed amount of ₹3,271 crore against ₹10,900 crore outlay seems low. Hope the pace picks up and MSMEs actually benefit, not just big players. 🤔
Finally some action on food processing! My family runs a small pickle business and we've been waiting for schemes like this. The PMFME scheme with credit-linked subsidy sounds promising. Hope the application process is not too bureaucratic. 🙏
The jump in sales from ₹58,758 crore to ₹1,08,854 crore is remarkable. Shows that domestic value addition is really picking up. Indian food brands like MTR and Patanjali have huge potential globally. This scheme could create some real manufacturing champions. 👍
Good initiative but execution is key. With 163 applications across 22 states, needs proper monitoring. Also, why only 69 MSMEs out of 127 companies? Small units need more handholding. Let's see if this actually reduces food wastage, which is a huge problem in India. 🌾
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