Food Processing PLI: 171 Firms Approved, Creating Over 2.89 Lakh Jobs

The Production Linked Incentive (PLI) Scheme for Food Processing Industry (FPI) has proved to be a game changer, creating more than 2.89 lakh jobs by October and pulling in Rs 8,910 crore of investments in 213 locations, stated a ministry release.

One of the notable features of the scheme is that it targets micro, small, and medium enterprises (MSMEs), where 70 MSMEs have been directly enrolled and 40 others are working as contract manufacturers for large firms. This program has encouraged small and medium enterprises by developing innovation, increasing market competitiveness, and increasing outreach in the food processing industry.

Boost to Local Procurement and Rural Development
The PLI scheme benefits large-scale enterprises in addition to MSMEs, millet products, organic products, and new food items, as well as Indian brands internationally. Among its mandates is the utilization of locally produced agricultural produce in production, apart from additives, flavors, and edible oils. The policy has boosted local procurement by a great margin, benefiting farmers and rural communities while stimulating development in disadvantaged areas.

Apart from enhancing farm revenues, the scheme has also helped in generating off-farm jobs, thus boosting rural economy. To promote the growth of Indian brands of food in overseas markets, the scheme offers financial support that caters to as much as 50% of foreign branding and marketing costs, with a ceiling at either 3% of turnover per annum or Rs 50 crore annually, whichever is lower. Companies that qualify for these benefits are required to invest a minimum of Rs 5 crore over a period of five years.

Complementing India's Global Food Processing Base
Currently, 73 companies are availing themselves of this aspect of the scheme, enabling India to consolidate its position in the global food processing sector, as stated by the ministry's statement.