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“171 proposals under different categories of PLISFP currently approved”
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Monday, 10 March, 2025, 08 : 00 AM [IST]
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 The Ministry of Food Processing Industries (MoFPI) is implementing various schemes like Production Linked Incentive and PMFME to increase the canvas of processing industry sector in India.
Dr Subrata Gupta, Secretary, MoFPI, in an email interaction with Ashwani Maindola elaborates on future prospects and challenges of processing sector. Excerpts:
How is MoFPI ensuring low interest loans to entrepreneurs willing to engage in value addition to agri produce or setup processing unit(s)?
Development of the food processing industry in the country is accorded top priority by the Government of India as it is one of the most critical links in the agri value chain. The Ministry of Food Processing Industries, is cognisant of the many opportunities available in the sector and is driving its growth with full capacity. Taking this agenda further, a Special Fund of Rs 2,000 crore was setup in NABARD for providing direct term loans at affordable rates of interest to Designated Food Parks (DFPs) and food processing units in the DFPs.
This initiative supports entrepreneurs, Farmer Producer Organisations (FPOs), cooperatives, and other entities in setting up or expanding processing units, modernising infrastructure, and enhancing value addition to agricultural produce. The fund offers concessional interest rates and flexible repayment terms, ensuring better access to credit for food processing businesses.
Additionally, MoFPI provides financial assistance through various schemes like PMKSY and PMFME, further facilitating the growth of the sector. These efforts aim to reduce post-harvest losses, generate employment, and strengthen India's food processing ecosystem.
Further supporting this vision, the government also extends financial assistance through schemes like the Agriculture Infrastructure Fund (AIF), the Animal Husbandry Infrastructure Development Fund (AHIDF), and the Fisheries and Aquaculture Infrastructure Development Fund (FIDF). These initiatives providing long-term, low-interest loans enhance credit accessibility and reduce the financial burden on stakeholders. This integrated approach fosters value addition, minimises wastage, and strengthens India's food and allied sectors.
Is there any plan for a non-banking financial institution or to restructure the NABARD loan with reduced interest rates as it has restriction that units only inside mega park shall be given NABARD loans?
Currently, the NABARD fund is specifically allocated for projects within designated food parks to ensure the development of integrated food processing infrastructure. Only Food Parks officially designated and notified by MoFPI, along with food processing units within these parks, are eligible for financial assistance from the Special Fund. These Designated Food Parks (DFPs) include Mega Food Parks promoted by MoFPI, State Government-promoted Food Parks or exclusive food processing industrial estates, food processing/agro-processing/multi-product SEZs (including de-notified SEZ areas) designated by MoFPI, and any other area with developed infrastructure officially recognised as a Food Park by MoFPI. These parks provide world-class facilities to enhance food processing, boost value addition, and strengthen the agri-food supply chain. While there is no official announcement regarding restructuring this fund or involving non-banking financial institutions for broader coverage, MoFPI continually assesses industry feedback and explores avenues to support entrepreneurs across various sectors.
Entrepreneurs outside these parks can avail financial assistance through other schemes under PMKSY and the PM Formalisation of Micro Food Processing Enterprises (PMFME) scheme. PMFME Scheme aims to enhance the competitiveness of individual micro-enterprises in the food processing sector by providing credit-linked capital subsidy, capacity building, and technical support to strengthen micro food processing businesses. Additionally, it promotes branding, marketing, and integration with organised supply chains, enabling small entrepreneurs to scale up their operations effectively.
How successful do you think PLI scheme is for the processing sector & is there any plan for including more sectors under PLI?
The Production Linked Incentive (PLI) Scheme for the Food Processing Industry has been instrumental in promoting the sector by incentivising investments and fostering the creation of global food manufacturing champions. The PLIS for the Food Processing Industry (PLISFPI) has been a significant success among the 14 PLI schemes introduced to enhance India's manufacturing capabilities. The scheme which is being implemented over a period of 6 years from 2021-22 to 2026-27 has seen enthusiastic participation from the industry, leading to increased production capacity and competitiveness. As of December 2024, a total of 171 proposals under different categories of PLISFP are currently approved. Total investment to the tune of Rs 8910 crore has so far been reported under the Scheme, reportedly generating employment opportunities of 2.89 lakhs. Total incentives to the tune of Rs 1084.011 crore have so far been disbursed against 85 eligible cases.
While the current focus is on the effective implementation of the existing scheme, MoFPI remains open to evaluating the needs of the industry and is committed to the growth of the food processing sector in India.
How successful PM FME scheme is in bringing FPOs in the value addition chain?
The PM Formalisation of Micro Food Processing Enterprises (PM FME) scheme has significantly contributed to integrating Farmer Producer Organisations (FPOs) into the value addition chain. By providing financial, technical, and business support, the scheme empowers FPOs to upgrade their processing capabilities, thereby enhancing product quality and market reach. So far, as of December 2024, since the inception of the scheme, a total of 1,14,388 loans have been sanctioned under the credit linked subsidy component of the PMFME Scheme to individual beneficiaries, Farmer Producer Organisations, Self Help Groups (SHGs) and Producer Cooperative Societies. An amount of Rs 1032.31 crore has been released as seed capital assistance to 3.10 lakh Self Help Group members. 76 Incubation Centres have been approved to be set up in ODOP processing lines and allied product lines with an outlay of Rs 206.95 crore. 15 Incubation centres have been completed/ inaugurated/ commissioned.
This initiative not only boosts the income of farmers but also strengthens the overall food processing ecosystem.
There are requests from various sectors like ice cream manufacturers, beverage industry, bread & biscuit manufacturers for rationalisation in GST taxation. Is MoFPI in talks with Finance Ministry regarding the same?
MoFPI acknowledges the concerns raised by various sectors regarding the GST rates. The ministry maintains regular dialogue with industry stakeholders to understand their challenges and collaborates with the Ministry of Finance to address issues related to taxation, aiming to create a conducive environment for the growth of the food processing industry. MoFPI also undertakes various stakeholder consultations to understand and take up the various challenges that the food processing industry is facing.
How your ministry is working towards establishing Indian processing sector as a major global player and branding of food manufactured in India worldwide?
MoFPI is committed to positioning India's food processing sector on the global stage. Initiatives such as World Food India serve as a platform to showcase India’s food processing capabilities on a global scale. The event offers unparalleled opportunities for the international food processing industry to tap into one of the world’s most dynamic and rapidly growing markets. Additionally, this event serves as a gateway to India's vibrant food economy, facilitating crucial partnerships between Indian and global stakeholders. International companies have a chance to explore the latest advancements in food technology, connect with leading Indian enterprises, and identify prospects across the entire value chain—from raw material sourcing to processing and distribution.
The ministry also supports branding and marketing efforts for Indian food products, facilitating their acceptance and popularity in international markets. PLISFP includes a dedicated branding and marketing component to support Indian food brands in global markets. This component provides financial assistance for enhancing brand visibility, participation in international trade fairs, and in-store branding in major retail chains abroad. It aims to strengthen the global presence of Indian food products, boost exports, and establish India as a trusted supplier of high-value processed foods.
Collaborations with global entities and adherence to international quality standards further enhance the credibility and appeal of Indian food products worldwide.
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