With an aim to generate employment opportunities, the Union cabinet chaired by Prime Minister Narendra Modi approved a production-linked incentive (PLI) scheme for the food processing sector on March 31.
The scheme which includes an outlay of Rs 109 billion is expected to create as many as 0.25 million jobs by 2026-27. As per government estimates, the scheme would result in the production of processed food output worth Rs 349.4 billion.
“The PLI for the food processing sector with ₹ 10,900 crore-incentive has been approved. The decision is a fitting tribute to our farmers,” Union Minister Piyush Goyal said while briefing the news media about the cabinet decisions.
The Minister of Consumer Affairs, Food and Public Distribution also stated that the scheme aims to strengthen the food processing sector in the country and exploit the global demand for products like Indian ready-to-eat food, organic products, processed fruits and vegetables, marine products and mozzarella cheese.
Information and Broadcasting Minister Prakash Javadekar, who was also present at the news briefing, told reporters that the government in the Union Budget had announced a PLI scheme for 12-13 sectors.
“Today, PLI for the food processing industries has been approved,” he added. According to the central government, the first component under the scheme relates to incentivising manufacturing of four major food product segments: ready-to-cook/ready-to-eat foods, processed fruits and vegetables, marine products and mozzarella cheese.
As part of the scheme, innovative and organic products of small-to-medium enterprises (SMEs), including eggs, poultry meat and egg products are also covered under the first component.
The second component relates to support for branding and marketing abroad to incentivise emergence of strong Indian brands.
Highlighting key features of the scheme, Food Processing Industries Secretary Pushpa Subrahmanyam told reporters, “The government will issue an expression of interest by the end of April.”
As per the government press statement, the scheme aims to support creation of global food manufacturing units, strengthen select Indian brand of food products for global visibility and wider acceptance in the international markets.
The scheme also seeks to increase employment opportunities of off-farm jobs as well as ensuring remunerative prices of farm produce and higher income to farmers.
