Cabinet approves Rs 10,900 crore PLI scheme for the food processing industry
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New Delhi, March 21: Information and Broadcasting Minister Prakash Javadekar informed that PM Modi led cabinet has approved an investment of Rs 10,900 crore in the food processing industry under the Production Linked Incentive (PLI) scheme.
The Scheme will be implemented over six years from 2021-22 to 2026-27. The implementation of the scheme would facilitate the expansion of processing capacity to generate processed food output of Rs 33,494 crore and will create employment for nearly 2.5 lakh persons by the year 2026-27.
According to the government, this will strengthen domestic companies. It also aims to strengthen select Indian brands of food products for global visibility and wider acceptance in international markets. It will also help the government to fulfill PM Modi's dream to double the income of the Farmers. Besides, the scheme also envisages providing a grant to applicant entities for in-store branding, shelf space renting, and marketing to promote Indian brands abroad.
While speaking at the press conference, commerce and Industry Minister Piyush Goyal said, the decision will help in increasing farmers' income and opening better avenues for them. Hailing the new farm laws, Goyal said, the new provisions are optional and will help farmers increase their income.
Goyal asserted that PLI of Rs 10,900 crores to the food processing industry will help create more employment, build a sustainable value chain and help create a robust brand value of Indian products. He said that a wide range of consultations with various stakeholders was carried out by the ministry of food processing for over eight-nine months before finalising the PLI scheme.
Meanwhile, Javdekar said that it will boost the production of value-added food products, attract foreign investment, create job opportunities besides benefiting farmers with remunerative prices for the produce.
The PLI scheme will incentivize the manufacturing of four major food product segments -- ready to cook/eat foods, processed fruits and vegetables, marine products, and mozzarella cheese. Besides, innovative and organic products of small and medium enterprises (SMEs)including free-range eggs, poultry meat, egg products will also be covered, the government said in a release.
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