Food sector incentive gets Cabinet nod 

#GS3  Food Processing and Related Industries in India- Scope’ and Significance, Location, Upstream and Downstream Requirements, Supply Chain Management.

News info:

The Union Cabinet on Wednesday approved a production-linked incentive scheme for the food processing industry with an outlay of ₹10,900 crores.

According to Minister for Consumer Affairs, Food and Public Distribution -

The scheme was a “fitting tribute to farmers” and that it would lead to employment for 2.5 lakh people and additional exports of ₹30,000 crores to ₹35,000 crores.

Production Linked Incentive Scheme:

  1. PLI Scheme is an outcome- and output-oriented scheme where incentives will be paid only if the manufacturers make the goods.
  2. This scheme will give cash incentives for five to seven years and all the sunrise and important sectors are proposed to be covered in this.
  3. The sectors may be automobile, networking products, food processing, advanced chemistry, and solar PV manufacturing.


Sunrise sectors are promising sectors but they may need support in the initial stage.

The export base can be developed in sectors under the PLI scheme.

There is a growing demand in the world for diversification in supply chains and India can become a major player.

  • With the view to make India a manufacturing hub, the government launched the PLI scheme for mobile phones (electronic manufacturing) and it was extended to pharma products and medical equipment sectors and now the Food processing sector.

The objectives of the scheme

  1. support creation of global food manufacturing champions
  2. strengthen select Indian brand of food products for global visibility and wider acceptance in the international markets 
  3. increase employment opportunities of off-farm jobs
  4. and ensuring remunerative prices of farm produce and higher income to farmers

The scheme would cover 

  1. ready-to-cook and ready-to-eat foods, 
  2. processed fruits and vegetables, 
  3. marine products and mozzarella cheese
  4. Organic products, free-range eggs, poultry meat, and egg products were also covered.
  • The implementation of the scheme facilitates the expansion of processing capacity to generate processed food output of ₹33,494 crores and creates employment for nearly 2.5 lakh persons by the year 2026-27.
  • The applicants selected for the scheme would be required to invest in plants and machinery in the first two years.

Source: The Hindu

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