PLI Scheme for Food Processing Industry

• 05 Apr 2021

Why in News

Recently, the Union Cabinet has approved the Central Sector Scheme - "Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)" entailing an outlay of Rs. 10,900 crore.

Key Points

• PLI Scheme:
  
  • In order to boost domestic manufacturing and cut down on import bills, the central government in March 2020 introduced a PLI scheme that aims to give companies incentives on incremental sales from products manufactured in domestic units.
  • Apart from inviting foreign companies to set shop in India, the scheme also aims to encourage local companies to set up or expand existing manufacturing units.
  • PLI Scheme has also been approved for sectors such as automobiles, pharmaceuticals, IT hardware including laptops, mobile phones & telecom equipment, white goods, chemical cells and textiles, etc.
• Objectives of the PLISFPI:
  
  • To support creation of global food manufacturing champions.
  • To strengthen select Indian brands of food products for global visibility and wider acceptance in the international markets.
  • To increase employment opportunities of off-farm jobs.
  • To ensure remunerative prices of farm produce and higher income to farmers.
• Features of PLISFPI:
  
  • Coverage:
    
    • It will support food manufacturing entities with stipulated minimum Sales and willing to make minimum stipulated investment for expansion of processing capacity and Branding abroad.
    • The first component relates to incentivising manufacturing of four major food product segments viz. Ready to Cook/ Ready to Eat (RTC/ RTE) foods, Processed Fruits & Vegetables, Marine Products, Mozzarella Cheese.
      
      • It also covers organic products, free-range eggs, poultry meat and egg products.
    • The second component relates to support for branding and marketing abroad.
  • Duration: Scheme will be implemented over a six year period from 2021-22 to 2026-27.
• Expected Benefits:
  
  • Expansion of processing capacity to generate processed food output of Rs. 33,494 crore.
  • Create employment for nearly 2.5 lakh persons by the year 2026-27.
• Other Scheme Related to Food Processing Industry:
  
  • Pradhan Mantri Kisan Sampda Yojana (PMKSY)

Source: PIB