PLI Scheme For Food Processing Industry Creates Over 2.89 Lakh Jobs

The government’s Production-Linked Incentive (PLI) scheme for the food processing industry has generated more than 2.89 lakh jobs as of October 31, according to a statement from the Ministry of Food Processing Industries.

The scheme, launched in March 2021, has also led to an investment of Rs 8,910 crore across 213 locations in the country.

The PLI scheme, approved by the Union Cabinet with a budget of Rs 10,900 crore, is likely to run from 2021-22 to 2026-27.

Currently, 171 applicants have enrolled in the program, which aims to scale up food processing in India by incentivizing both large and small enterprises.

The selection process was thorough, involving stakeholder engagement and extensive publicity to ensure widespread participation.

One key feature of the scheme is its requirement for manufacturers to use domestically grown agricultural products, excluding additives, flavors, and edible oils.

This policy has led to an increase in local raw material procurement, particularly benefiting underdeveloped and rural areas and supporting farmers’ incomes.

The Ministry emphasized, “Furthermore, the emphasis on local production of raw materials for processed food has generated additional off-farm employment opportunities, significantly contributing to the economic development of rural regions.”

The scheme has played an essential role in boosting domestic manufacturing, enhancing value addition, and creating jobs.

Small and medium enterprises (SMEs) in the food processing sector have also received significant support through the PLI scheme, along with other initiatives like the Pradhan Mantri Kisan Sampada Yojana (PMKSY) and the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme.

These programs provide financial, technical, and marketing assistance, helping SMEs expand capacity, innovate, and formalize their operations.

Among the beneficiaries, 70 MSMEs have been directly enrolled under the PLI scheme, with another 40 MSMEs participating as contract manufacturers for larger companies.

Food PLI Offers 50% Reimbursement For Overseas Branding; Capped At Rs 50 Crore

Additionally, the scheme reimburses 50% of beneficiaries’ overseas branding and marketing expenses, capped at 3% of their annual food product sales or Rs 50 crore per year, whichever is lower.

To qualify for the PLI scheme, applicants must commit to spending a minimum of Rs 5 crore over five years. Currently, 73 beneficiaries are benefiting from the branding and marketing component of the scheme.

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