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PLI Scheme Boosts Food Processing Capacity, Creates 3.4 Lakh Jobs

The Production Linked Incentive Scheme for Food Processing Industry has significantly expanded processing capacity and generated substantial employment. It has disbursed over Rs 2,162 crore in incentives to beneficiaries while mobilising major investments. The scheme has strongly supported MSME integration and boosted India's processed food exports globally. A new component for millet-based products has also been introduced to promote nutritious food options.

Key Points: PLI Scheme for Food Processing: Rs 2,162 Cr Disbursed

  • 34 lakh MT capacity added
  • 3.39 lakh jobs created
  • Rs 2,162 cr incentives disbursed
  • Rs 9,207 cr investments mobilised
  • MSMEs integrated in value chain
2 min read

PLISFPI boosts capacity, jobs in food processing sector; beneficiaries receive Rs 2,162 cr

PLISFPI creates 3.39 lakh jobs, expands capacity by 34 lakh MT, and disburses Rs 2,162 crore in incentives, boosting India's food exports.

"The scheme has mobilised investments of Rs. 9,207 crore - Official Statement"

New Delhi, April 21

The Production Linked Incentive Scheme for Food Processing Industry has driven capacity expansion in food processing, job creation, and export growth, with beneficiaries receiving a total incentive of Rs 2,162.55 crore, the government said on Tuesday.

Food processing and preservation capacity has grown by 34 lakh MT per annum, the official statement said, highlighting the scheme's impact.

A total of 165 applications have been approved, corresponding to 274 project locations, and the scheme has mobilised investments of Rs. 9,207 crore and created about 3.39 lakh direct and indirect jobs, outperforming the employment target of 2.5 lakh.

The scheme has also supported MSMEs, with 69 of the 165 approved applicants being MSMEs. Additionally, 40 contract manufacturing units associated with the main approved applicants fall within the MSME category, indicating their integration across the value chain.

Incentives of Rs 13.26 crore were disbursed to 20 eligible MSMEs, the statement noted.

With an outlay of Rs 10,900 crore, PLISFPI is being implemented from 2021-22 to 2026-27 and seeks to generate processed food output of Rs 33,494 crore.

India's food processing sector has witnessed steady growth in recent years, with Gross Value Added (GVA) increasing from Rs 1.34 lakh crore in 2014-15 to Rs 2.24 lakh crore in 2023-24 as per the first revised estimates.

Its rising global footprint is reflected in the share of processed food exports in agricultural exports, which grew from 13.7 per cent in 2014-15 to 20.4 per cent in 2024-25.

From savings under PLISFPI, a new component - the Production Linked Incentive Scheme for Millet-Based Products - was carved out in FY23 with an outlay of Rs 800 crore to encourage millets in ready-to-cook and ready-to-eat products.

The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) is designed to promote manufacturing, encourage innovation among SMEs, and support the global branding of Indian food products.

- IANS

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Reader Comments

P
Priya S
Good to see the scheme performing well. The millet-based products component is a smart move, promoting healthy traditional grains. Hope the benefits reach the small farmers and entrepreneurs in rural areas too.
R
Rohit P
While the numbers look impressive, I hope there is strict monitoring. Sometimes these schemes benefit only a few large players. The real test is whether it creates sustainable jobs and boosts farmer incomes in the long run.
S
Sarah B
The export growth from 13.7% to 20.4% is significant. As someone in the agri-business, this scheme helps Indian brands compete globally. More focus on quality and packaging will take us further.
K
Karthik V
Rs 2,162 crore disbursed is a good start. But with an outlay of nearly 11k crore, hope the pace picks up. Need to see more success stories from Tier 2 and 3 cities. Jai Kisan, Jai Vigyan!
M
Meera T
Encouraging to see 69 MSMEs approved. They are the backbone of our economy. The integration of contract manufacturing units shows a holistic approach. Let's reduce food waste and add value to our produce! 🙏

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