Food processing industry invests ₹7,126 crore under PLI scheme, says govt

livemint.com:

₹7,126 crore under the production-linked incentive (PLI) scheme, with sales of ₹49,825 crore during April-September, a government statement said. So far, ₹584.30 crore in incentives has been disbursed for FY22. (Under the scheme, beneficiaries are required to furnish incentive claims for a specific financial year by 31 December of the following financial year).

The union cabinet approved the PLI scheme for the food processing industry on 31 March 2021, with an outlay of ₹10,900 crore, to be implemented from FY22 to FY27. The scheme has three components – incentivising manufacturing in four food product segments (ready to cook or ready to eat foods, processed fruits and vegetables, marine products, and mozzarella cheese); promoting innovative/organic products of SMEs; and incentivising branding and marketing to promote Indian brands in overseas markets. Additionally, a PLI scheme to promote millet-based products using the food processing scheme’s savings was launched in FY23 with an outlay of ₹800 crore.

When the food processing PLI scheme was being formulated, steps were taken to align it with global best practices and market demands, the government said. This involved active engagement with various stakeholders, including industry experts, large-scale manufacturers and SMEs. Extensive consultations were undertaken to gather inputs for the scheme's guidelines.

This collaborative effort continues in the form of regular engagements with stakeholders to ensure the continued relevance and effectiveness of the scheme guidelines, the government added. The scheme aims to generate employment for about 2.5 lakh people. As of 30 September, quarterly review reports from beneficiaries showed it created jobs for about 2.37 lakh