Indian Economy News

Implementation of the PLI Scheme in the food processing sector

Mr. Prahlad Singh Patel, the Union Minister of State for Food Processing Industries, informed that the Union Cabinet approved the Central sector scheme- ‘Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)’ on March 31, 2021. This was approved with an investment of US$ 1.33 billion (Rs. 10,900 crores) to support the development of global food manufacturing leaders in line with India's natural resource endowment and support Indian food product names abroad.

The expansion of processing capability and job creation would be made possible by the scheme's implementation.

The first part of the scheme encourages the production of four different types of food products: ready-to-cook/ready-to-eat (RTC/RTE) meals made from millets, processed fruits and vegetables, marine products, and mozzarella cheese. The creation of innovative/organic goods by small and medium-sized businesses, such as free-range eggs, poultry meat, and egg products, is the subject of the second component. The third element pertains to assistance with branding and international marketing to encourage the emergence of powerful Indian brands. With an expenditure of US$ 97.7 million (Rs. 800 crores) from the savings, one more component for millet-based products will be introduced in 2022–23.

In order to develop a road map to give the nutraceutical sector a thrust and make it easier to unlock the sector's growth potential by addressing the challenges the industry is facing, the government established a Task Force on Nutraceutical Sector in December, 2021, chaired by the Principal Scientific Adviser to the Government of India. This Task Group includes the Ministry of Food Processing Industries as a member.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.