The Union Cabinet granted approval on 31 March 2021, for the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI). This scheme, with a budget of Rs 10,900 crores, is set to be in effect from 2021-22 until 2026-27. It comprises three key components: stimulating manufacturing in four major food product segments, fostering innovation and organic products from small and medium enterprises (SMEs), and providing support for the global branding and marketing of Indian food brands.
Furthermore, a separate scheme known as the Production Linked Incentive Scheme for Millet-based Products (PLISMBP) was introduced in the fiscal year 2022-23, with an allocation of Rs 800 crore, utilizing funds saved from PLISFPI. This initiative aims to bolster the food processing sector by assisting food manufacturing entities that seek to expand their processing capabilities. The scheme’s objectives include incentivizing the growth of prominent Indian brands, strengthening the presence of Indian food brands in international markets, generating additional employment opportunities, and ensuring increased income for farmers.
The Ministry of Food Processing Industries (MoFPI) has been overseeing a comprehensive umbrella scheme called the Pradhan Mantri Kisan Sampada Yojana (PMKSY) since 2017-18. PMKSY encompasses a variety of component schemes designed to establish modern infrastructure and efficient supply chain management from the farm gate to retail outlets. This initiative not only stimulates growth in the food processing sector, but also facilitates better pricing for farmers, generates employment prospects, particularly in rural regions, reduces agricultural produce wastage, elevates the processing level of foods, and boosts the export of processed foods.
Over the span of 2019-20 to 2022-23, a total of 682 projects have received grants amounting to Rs 3530.25 crore under the various schemes of PMKSY across India. Moreover, during the initial four months of the current fiscal year, 33 projects have been approved, receiving grants totaling Rs 160.22 crore.
A fund of Rs 3,925.89 crore has been allocated to PMKSY, out of which Rs 2,648.41 crore has already been disbursed under the diverse component schemes of PMKSY across the nation.