New Delhi, Dec 6
The production-linked incentive (PLI) for the food processing industry has generated employment of more than 2.89 lakh (as of October 31), the government said on Friday.

According to data reported by the scheme's beneficiaries, an investment of Rs 8,910 crore has been made across 213 locations in the country, the Ministry of Food Processing Industries said in a statement.

The PLI scheme for Food Processing Industry (PLISFPI) was approved by the Union Cabinet on March 31, 2021 with a budget of Rs 10,900 crore, to be implemented from 2021-22 to 2026-27.

About 171 applicants have been enrolled under the scheme, informed the ministry. The beneficiary selection process under PLISFPI was conducted as a one-time exercise, preceded by active stakeholder engagement and extensive publicity to ensure broad participation.

The Ministry 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,” the Ministry emphasised.

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 Centre actively supports small and medium enterprises (SMEs) in the food processing sector via schemes like Pradhan Mantri Kisan Sampada Yojana (PMKSY), PLISFPI, and the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme.

These schemes provide financial, technical, and marketing support to SMEs, facilitating capacity expansion, innovation, and formalisation, the ministry said.

Under the PLI scheme, a significant proportion of beneficiaries are MSMEs, with 70 MSMEs directly enrolled and 40 others contributing as contract manufacturers for larger companies.

Under the scheme, beneficiaries are reimbursed 50 per cent of their expenditure on branding and marketing abroad, capped at 3 per cent of their annual food product sales or Rs 50 crore per year, whichever is lower.

Applicants are required to spend a minimum of Rs 5 crore over five years to qualify. Currently, there are 73 beneficiaries under this component of the PLI scheme, according to the ministry.

PLI in food processing industry generates more than 2.89 lakh jobs: Centre