Parliament Question: Production Linked Incentive Scheme

GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES LOK SABHA STARRED QUESTION NO. *79 ANSWERED ON 23RD JULY, 2026 PRODUCTION LINKED INCENTIVE SCHEME *79. SMT. KAMLESH JANGDE:

SMT. SHOBHANABEN MAHENDRASINH BARAIYA:

Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:

(a) the current status/performance of the Production Linked Incentive Scheme for Food Processing Industry along with the details of the achievements made under the scheme so far;

(b) the total investment attracted, the additional production made and the direct and indirect employment generated thereunder so far;

(c) the development and operationalization of Mega Food Parks and their contribution in the organized food processing sector, the agriculture value chain, increase in farmers’ income and reducing food wastage in the country including Chhattisgarh;

(d) the steps taken by the Government to promote the export of Indian food products, their branding, the upgradation of quality standards, value addition and the adoption of modern technologies and innovations in the food processing industry; and

(e) the present status of the setting up of new mega parks in the country particularly in the North Eastern States? ANSWER THE MINISTER OF FOOD PROCESSING INDUSTRIES (SHRI CHIRAG PASWAN)

(a) to (e): A statement is laid on the Table of the House. *****STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF STARRED QUESTION NO. *79 FOR ANSWER ON 23rd JULY 2026 REGARDING “PRODUCTION LINKED INCENTIVE SCHEME”

(a) & (b): The Ministry of Food Processing Industries is implementing the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) with an approved outlay of ₹10,900 crore for the period from FY 2021-22 to FY 2026-27. The Scheme provides performance-linked incentives on achievement of eligible incremental sales and aims to promote domestic processing and value addition, support creation of global food manufacturing champions, promote Indian food brands in overseas markets and generate employment opportunities. A total of 163 applications from 127 companies, including 69 Micro, Small and Medium Enterprises (MSMEs) are presently covered under the Scheme. The approved projects are spread across 22 States and 212 locations.

Incentives amounting to ₹3,271.44 crore have been disbursed up to June 2026. The Scheme has contributed to expansion of food processing capacity, growth in sales and exports, mobilisation of investment and generation of employment. The investments undertaken under the Scheme have resulted in creation of food processing capacity of 34 lakh metric ton per annum.

Approved applicants under PLISFPI have invested ₹9,207 crore against committed investment of ₹7,722 crore and generated approximately 3.35 lakh direct and indirect employment opportunities against the target of 2.50 lakh. Sales of PLI-supported products increased from ₹58,758 crore in FY 2019-20 to ₹1,08,854 crore in FY 2025-26.

(c): The Ministry implemented the Mega Food Park Scheme, a component scheme under the umbrella scheme Pradhan Mantri Kisan Sampada Yojana since 2008. The Scheme followed a cluster-based hub-and-spoke approach for creation of primary processing, storage, common processing and enabling infrastructure. The Mega Food Park Scheme has been discontinued with effect from 01.04.2021, with provision for meeting committed liabilities. A total of 41 Mega Food Parks in 25 States, including Chhattisgarh, were approved under the Scheme, of which 25 are operational. These projects are expected to create preservation capacity of 28.56 Lakh Metric Ton Per Annum (LMTPA) and processing capacity of 15.41 LMTPA. So far, 86,881 farmers have benefited and approximately 1,02,440 direct and indirect employment opportunities have been generated. In Chhattisgarh, Indus Best Mega Food Park Private Limited, located in Raipur district, is operational. The infrastructure created under the Scheme supports linkages between farmers, processors and markets and facilitates processing, preservation and value addition.

(d): Under PLISFPI, the Government promotes exports and branding of Indian food products abroad through the Branding and Marketing component. Approved applicants are provided financial incentives at the rate of 50 per cent of eligible expenditure incurred on Branding and Marketing Abroad, subject to a maximum of 3 per cent of sales of food products or ₹50 crore peryear, whichever is less. The PLISFPI also promotes domestic processing and value addition through performance-linked incentives on eligible incremental sales. The investments undertaken by approved applicants have facilitated expansion of processing capacity and adoption of modern processing, packaging and manufacturing technologies. A separate category has also been

provided under the Scheme for Small & Medium Enterprises (SMEs) engaged in innovative and organic food products.

Further, The Ministry is also implementing Prime Minister Formalisation of Micro Food Processing Enterprises (PMFME) Scheme. PMFME Scheme is a demand-driven scheme aimed at providing financial, technical and business support for upgradation of micro food processing enterprises through capacity building, credit support, technology upgradation and market linkages. The Scheme supports establishment of new enterprises and upgradation of existing enterprises through 35% credit-linked capital subsidy (maximum ₹10 lakh per unit), establishment of Common Infrastructure and Common Incubation Centres (CICs) with modern processing, testing, packaging and storage infrastructure, and provides Branding & Marketing support of up to 50% of the eligible project cost for development of common brands, packaging, labelling and quality standardization. To promote adoption of modern technologies and improve export readiness, the Scheme provides Entrepreneurship Development Programmes (EDP), product- specific training and technical support through NIFTEMs and State Level Technical Institutions.

(e): The Mega Food Park Scheme has been discontinued with effect from 01.04.2021, with provision for meeting committed liabilities. Therefore, setting up a new Mega Food Parks in the country, including in the North Eastern States, is not under consideration. However, seven Mega Food Park projects have already been approved in the North Eastern States, as under:

Sr. No. State Project location 1 Arunachal Pradesh Papum Pare 2 Assam Nalbari 3 Manipur Thoubal 4 Meghalaya North Garo Hills 5 Mizoram Kolasib 6 Nagaland Dimapur 7 Tripura West Tripura *****