News Brief
Transforming Food Processing: PLI Scheme Attracts Rs 8,910 Crore Investment, Generates 2.9 Lakh Jobs
Food Park (Representative Image)
The government has said that the Production Linked Incentive (PLI) scheme for food processing industries has attracted investments of Rs 8,910 crore and generated around 2.9 lakh employment opportunities.
The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) was approved by the Prime Minister Narendra Modi led Union Cabinet on 31 March 2021 with a budget of Rs 10,900 crore, to be implemented from 2021-22 to 2026-27.
A total of 171 applicants have been enrolled under the scheme.
In a written reply to a question in the Rajya Sabha on Thursday (5 December), Union Minister of state for Food Processing Industries Ravneet Singh Bittu said that the scheme has significantly contributed to the country's overall growth and development by scaling up domestic manufacturing, enhancing value addition, boosting the domestic production of raw materials, and creating employment opportunities.
The scheme supports large companies, millet-based products, innovative and organic products, as well as small and medium enterprises, while also promoting Indian brands globally, the minister said.
The minister said that by mandating the use of domestically grown agricultural products (excluding additives, flavours, and edible oils) in the manufacturing process, the scheme has substantially increased local raw material procurement, benefiting underdeveloped and rural areas while supporting farmers' incomes.
Furthermore, the emphasis on local production of raw materials for processed food has generated additional off-farm employment opportunities, significantly contributing to the economic development of rural regions, he added.
The minister noted that under the food processing PLI scheme, a significant proportion of beneficiaries are MSMEs, with 70 MSMEs directly enrolled and 40 others contributing as contract manufacturers for larger companies.
