128 companies approved covering 274 units across India, says Ministry
A cumulative investment of Rs.9,207 crore has been made under the Production Linked Incentive (PLI) Scheme for Food Processing Industry in 22 States, well above the Rs.7,722 crore initial investment commitment by the companies, the Ministry of Food Processing Industries said on 7 Apr.
Further, around 34 lakh metric tonnes per annum of processing and preservation capacity has been added under the scheme being implemented for a period of six years from FY 2021–22 to FY 2026–27 with a total financial outlay of Rs.10,900 crore, the Ministry said in an industry update.
The scheme has also generated employment of about 3.29 lakh persons, including both direct and indirect employment. The sales of PLI products increased by CAGR of 10.58% and export sales of PLI products increased by CAGR of 7.41% despite challenging macroeconomic factors.
The scheme has approved 128 companies covering 274 units across the country. The scheme has also ensured strong participation from the MSME sector, with 68 MSME applicants and 40 contract manufacturing units being supported, the Ministry said.
“This reflects the inclusive nature of the scheme, which supports both large food processing companies and small and medium enterprises, thereby strengthening the entire food processing value chain. The scheme has led to significant capacity creation, technology upgradation, and modernization of food processing units across various states in the country,” it said.
The sale of Millet-Based Products has also been increased from Rs.345.73 crores (FY 2022-23) to Rs.1,845.25 crores (FY 2024-25) due to interventions of PLISFPI scheme. The procurement of millets has also increased from Rs.1,103.18 MT to Rs.17,089.16 MT which is 15 times more.
The scheme has also contributed to the growth in sales and exports of PLI-supported products. Value-added products such as RTC/RTE products, processed Fruits and Vegetables, marine products, mozzarella cheese, and millet-based products have shown significant growth under the scheme. Importantly, the scheme has ensured that complete value addition of manufactured products is taking place within India, thereby supporting domestic manufacturing, increasing farmers’ income, and strengthening the farm-to-fork value chain.
The PLI Scheme has also supported branding and marketing of Indian food products under the branding and marketing component, enabling Indian brands to expand their presence in international markets. This is helping India emerge as a strong global player in the processed food sector and increasing the global visibility of Indian food brands, the Ministry said.
Overall, the Production Linked Incentive Scheme for Food Processing Industry is playing a transformative role in the development of the food processing sector by promoting investment, increasing production capacity, boosting exports, supporting Indian brands, generating employment, and strengthening the overall food processing ecosystem in the country, it added. The scheme is aligned with the Government of India’s vision of increasing value addition in agriculture, reducing post-harvest losses, and making India a global hub for food processing. Fiinews.com
