Production Linked Incentive (PLI) Scheme For Food Processing Sector

Production-based sectors plays a major role in India’s economy. The Production Linked Incentive (PLI) Scheme for the Food Processing Sector is a government initiative launched in March 2021, which aims to boost the growth of the food processing industry in India. The main objective of the scheme is to attract investment in the food processing sector, create employment opportunities for off-farm jobs, ensure remunerative prices of farm produce, increase farmers income and promote the export of processed food products.  

Scheme Overview

• Scheme Name: Production Linked Incentive (PLI) Scheme for Food Processing Sector
• Scheme Implemented: 2021
• Scheme Fund Allocated: Rs. 10,900 crores
• Type of Government Scheme: Central Sector Scheme
• Sector / Sponsored Scheme: Ministry of Food Processing Industries
• Website to Apply: https://www.mofpi.gov.in/
• Helpline No: NA

Features of Production Linked Incentive (PLI) Scheme for Food Processing Sector

CATEGORY	REMARKS
Total Tenure period of the Scheme	6 year period from 2021-22 to 2026-27
Beneficiaries	Farmers, Food Processing Industries
Part of the Scheme	Atmanirbhar Bharat Abhiyan (Self – reliant India campaign)
Categories of Applicant
Category I	Entities who get financial assistance based on Sales and Investment criteria belong to this category. They could also undertake Branding & Marketing activities abroad and apply for incentives.
Category II	Small and Medium-sized Enterprises (SME) who manufactures organic and innovative products
Category III	Applicants exclusively apply for incentives to undertake Branding and Marketing activities abroad.
Incentive Sales
For sales of eligible food products	Products manufactured by the applicants as well its subsidiaries and contract manufactures
Grants	Applicants will have an extended grant @ 50% of expenditure on branding & marketing; Financial assistance up to 3% for Sales of food products or Rs 50 crore per year, whichever is less.
Minimum expenditure for branding abroad	Rs 5 crore for a period of five years
Incentives would be paid for 6 years	Incremental sales over the base year from the year 2021-22 to 2026-27

 

Components of Production Linked Incentive (PLI) Scheme for Food Processing Sector

First component: This component encourages the manufacturing of following four major food product segments 

1. Ready to Cook / Ready to Eat (RTC/RTE) which includes millet-based products
2. Processed vegetables and fruits
3. Mozzarella cheese
4. Marine Product

This component also covers organic products including free range eggs, meat, poultry and egg Products. 

Second Component: This component mainly focuses on Branding and Marketing abroad. 

Benefits of Product Linked Incentive Scheme for Food Processing sector

• The scheme is expected to increase the demand for agricultural produce, as food processing companies will require raw materials for their products. This increased demand can lead to better prices for farmers and higher income.
• The PLI scheme encourages companies to invest in research and development and product innovation, which could lead to the development of new value-added products from agricultural produce. This could create new markets for farmers and provide them with opportunities to diversify their crops.
• PLI scheme also aims to enhance the competitiveness of the food processing industry in India, which could lead to better market access for Indian food products in domestic and international markets. This could create more opportunities for farmers to sell their produce and increase their income.

Challenges

• The government’s allocation for the PLI scheme may not be sufficient to meet the demands of the food processing sector. This could lead to a situation where only a few companies receive benefits from the scheme, leaving smaller players out of the loop.

Documents Required

• Company Registration Certificate
• Applicants CIN number
• Company’s Profile
• Annual Reports
• GSTN Certificate etc.

How to apply?

Step 1: Go to the official website of Ministry of Food Processing Industry (MOFPI) at https://www.mofpi.gov.in/ 

Step 2: On the Homepage, click on the schemes tab and select Production Linked Incentive Scheme for Food Processing Sector option 

Step 3: Now visit the PLISFPI portal and click on ‘Register’ 

Step 4: Registration form will be displayed in the screen 

Step 5: Enter all the mandatory details and click on register option 

Step 6: On Successful registration, username and password will be sent to the official mail ID. 

Step 7: Choose login option from the homepage and log on to the portal 

Step 8: Fill the application form carefully and upload all the required documents  

Step 9: Submit the application form 

Conclusion

The PLI scheme for the food processing sector is a positive step towards achieving the government’s goal of doubling farmers income and making India self-reliant in the food processing sector.