Patel updates Lok Sabha on Rs.10,900cr PLI for food projects
Sixteen applications have been selected under Category-II of the PLI scheme, with a specific focus on innovative and organic products, Minister of State for Ministry of Food Processing Industries Prahlad Singh Patel said in a written reply in the Lok Sabha on 25 July 2023.
The Category-II, exclusively for eligible MSMEs, is part of the three-segment Rs.10,900 crore “Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)” to be implemented from 2021-22 to 2026-27.
Additionally, 22 applicants, out of 30 selected applicants, have been selected to participate under PLI Scheme for Millet-based products are MSMEs, he said.
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, said the Minister.
Overall, the Rs.10,900 crore PLI 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 Rs.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 Rs.7,427.22 crore (as on 31st March 2023) under the scheme.
So far, incentive of Rs.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,” said Patel.
“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.” Fiinews.com
