Saturday, 7 June 2025

The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) is a flagship initiative launched by the Government of India to boost domestic manufacturing, increase exports, and create employment in the food processing sector. Launched in March 2021 under the Ministry of Food Processing Industries (MoFPI), the scheme aims to make Indian food products globally competitive and support India's vision of becoming a global food hub.

🏭 Production Linked Incentive Scheme for Food Processing Industry (PLISFPI): A Transformative Boost for India's Food Sector

📌 Introduction


🎯 Objectives of the Scheme

  1. Support Indian brands in the international market.

  2. Enhance processing capabilities and reduce wastage of perishable agricultural produce.

  3. Create global food champions out of Indian companies.

  4. Generate employment, particularly in rural areas.

  5. Encourage investment in the food processing sector.

💰 Financial Outlay

  • Total Outlay: ₹10,900 crore

  • Scheme Duration: 2021-22 to 2026-27 (6 years)

🧱 Key Components of PLISFPI

1. ✅ Incentives Based on Sales and Investment

  • Financial incentives are provided based on incremental sales and investment made by the companies.

  • Incentive is calculated as a percentage of the increase in net sales over a base year.

2. 🧑‍🌾 Support for SME (Small and Medium Enterprises)

  • Dedicated support for branding and marketing abroad.

  • Emphasis on innovative and organic products.

3. 🏭 Focus Product Segments

The scheme focuses on four major segments:

  • Ready-to-eat/Ready-to-cook (RTE/RTC) products

  • Processed fruits and vegetables

  • Marine products

  • Mozzarella cheese

  • Innovative/organic products of SMEs

🏢 Eligible Sectors and Enterprises

📌 Large Enterprises:

  • Indian companies with significant turnover and potential for export.

  • Must commit to a minimum investment in plant and machinery.

📌 SMEs and Startups:

  • Must be involved in production of innovative or organic food products.

  • Priority is given to units in aspirational districts, rural areas, and Tier-II/Tier-III cities.

🧾 Eligibility Criteria

Criteria Requirement
Incorporation Indian company or LLP
Product Category Must fall under approved food segments
Sales Base Year FY 2019-20
Minimum Investment Varies for different product segments

🌍 Incentives for Branding & Marketing Abroad

  • Reimbursement of 50% of expenses for international branding, subject to limits.

  • Encourages global visibility of Indian brands.

  • Support for participation in trade fairs, exhibitions, and marketing campaigns

📈 Expected Outcomes

  1. Creation of 2.5 lakh jobs in the next five years.

  2. Investment of over ₹6,000 crore by companies.

  3. Sales and exports worth over ₹30,000 crore.

  4. Development of robust infrastructure for food processing.

  5. Improved income for farmers through better market linkages and reduced wastage.

🏅 Companies Already Approved Under the Scheme

  • Major food companies like Nestle India, ITC, Amul, Haldiram’s, Parle Agro, Britannia, and others have been selected.

  • As of 2023, over 60 large companies and 100+ SMEs have been approved for benefits.

📌 Implementation and Monitoring

  • MoFPI is the nodal ministry for implementation.

  • Regular monitoring through Project Management Agencies (PMAs).

  • Companies must provide annual performance reports to continue receiving incentives.

Conclusion

The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) is a significant step toward transforming India's food processing sector into a globally competitive industry. By incentivizing innovation, encouraging export-oriented production, and supporting MSMEs, the scheme not only boosts economic growth but also enhances rural livelihoods and agricultural income. With proper execution, India can emerge as a global food manufacturing powerhouse in the coming decade.

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