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Production linked incentive scheme for Food Processing Industry
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Saturday, 29 July, 2023, 13 : 00 PM [IST]
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Our Bureau, New Delhi
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On March 31, 2021, the Union Cabinet approved Central Sector Scheme - Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), with an outlay of Rs 10,900 crore, to be implemented from 2021-22 to 2026-27.
The scheme consists of three components: incentivising 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 Rs 800 crore, utilising the savings under PLISFPI.
Under the scheme, 158 applications have been approved for availing incentives. As per the information received, the beneficiaries have invested Rs 7,427.22 crore under the scheme. So far, incentive of Rs 517.604 crore has been disbursed for the Financial Year 2021-22.
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. 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. A total of 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, 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, flavours, 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.
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