PLI Scheme for Food Processing Industry: Key Facts

April 1, 2021

The Union Cabinet has approved a production-linked incentive scheme for the food processing industry with an outlay of Rs 10,900 crore.

The scheme was announced by the Minister for Consumer Affairs, Food and Public Distribution, Piyush Goyal.
The scheme is a fitting tribute to farmers and it will be helpful in generating employment for 2.5 lakh people.
The scheme would also lead to additional exports of Rs 30,000 crore to Rs 35,000 crore.
The aim of the scheme is to strengthen select Indian brand of food products for global visibility, support the creation of global food manufacturing champions, increase employment opportunities of off-farm jobs, ensuring remunerative prices of farm produce and higher income to farmers and wider acceptance in the international markets.
The scheme would cover ready-to-eat, ready-to-cook, marine products, processed fruits and vegetables, and mozzarella cheese.
Organic products, poultry meat, egg products, and free-range eggs were also covered.
The implementation of the PLI scheme will be helpful in the expansion of processing capacity for generating processed food output of Rs 33,494 crore.
It will also create employment for nearly 2.5 lakh persons by the year 2026-27.

The selected applicants for the scheme will have to invest in plant and machinery in the first two years – 2021-2022 and 2022-2023.