Performance And Impact of the PLI Scheme for Food Processing Industries

**Executive Summary** The Ministry of Food Processing Industries (MoFPI) is implementing the Production Linked Incentive Scheme for the Food Processing Industry (PLISFPI) from FY 2021-22 to FY 2026-27. The scheme has an approved outlay of ₹10,900 crores and aims to support global food manufacturing champions, promote Indian brands, and create employment opportunities. As of December 31, 2025, a cumulative investment of ₹9207 Crore has been made. **Key Points / Main Content** * **Scheme Overview:** * The PLISFPI scheme is implemented by the Ministry of Food Processing Industries (MoFPI) for the period from FY 2021-22 to FY 2026-27. * The total approved outlay for the scheme is ₹10,900 crores. * The scheme aims to support the creation of global food manufacturing champions, promote Indian food brands, increase off-farm employment, ensure remunerative prices for farm produce, and increase farmer income. * Incentives are admissible for manufacturing processes, including primary processing, that take place in India. * Incentives are also provided for promoting branding and marketing abroad. * **Financial Allocations and Disbursements:** * Year-wise budget estimates and revised estimates are provided for FY 2021-22 to FY 2025-26. * Funds released including incentive disbursed figures are available for each financial year. * **Beneficiaries and Approvals:** * A total of 168 applications have been approved under the PLISFPI Scheme across various categories and segments. * Key categories include Category-I (RTE/RTC, F&V, Marine, Mozzarella Cheese), Category-II (Innovative, Organic), Category-III (B&M), and PLI Scheme for Millet-Based Products (PLISMBP) (Large Entities, MSME). * Category-I has the highest number of approvals (51), followed by Category-III (73), and PLISMBP (29). * Out of 168 approved applicants, 69 are Micro, Small and Medium Enterprises (MSMEs). * Additionally, 40 contract manufacturing units are from MSMEs. * Two applicants are cooperatives. * Thirteen applicants are in the organic segment. * Two applicants are in the innovative food products segment. * **Investment and Employment Generation:** * A cumulative investment of approximately ₹9207 Crore has been made by approved applicants as of 31.12.2025. * Approximately 35 lakh metric tonnes per annum of processing and preservation capacity has been created. * Approximately 3.29 lakh direct and indirect employment opportunities have been generated across the country. * **State-wise Investment (Category-I):** * Gujarat has the highest investment achieved under Category-I at ₹1599.88 crores, with 27 locations/units. * Maharashtra is second with ₹1368.71 crores from 31 locations/units. * Uttar Pradesh follows with ₹1242.83 crores from 23 locations/units. * Andhra Pradesh has achieved ₹1313.33 crores from 34 locations/units. * Bihar has 7 locations/units with a total investment of ₹660.37 crores under Category-I. **Impact Analysis** **Food Processing Industry Businesses (Approved Applicants)** * **Impact:** Businesses are eligible for incentives to support their manufacturing processes, branding, and marketing efforts, contributing to their growth and competitiveness. * **Action Required:** Ensure that all manufacturing processes, including primary processing, take place in India to be eligible for incentives. Focus on developing global food manufacturing capabilities and promoting Indian food brands domestically and internationally. **Micro, Small and Medium Enterprises (MSMEs)** * **Impact:** MSMEs form a significant portion of the approved applicants (69) and contract manufacturing units (40), indicating increased opportunities for growth and participation in the food processing sector. * **Action Required:** Continue to leverage the scheme to enhance processing and preservation capacities, generate employment, and contribute to the overall growth of the food processing industry. **Farmers** * **Impact:** The scheme aims to ensure remunerative prices for farm produce and higher income for farmers by strengthening the food processing sector. * **Action Required:** Farmers can anticipate potential benefits through increased demand for agricultural produce from a growing and more robust food processing industry. **Consumers** * **Impact:** Consumers may benefit from a wider availability of processed food products, improved quality, and potentially better pricing due to increased efficiency and competition within the sector. * **Action Required:** No direct action is required from consumers, but they will experience the outcomes of the scheme's implementation. **Government (MoFPI)** * **Impact:** The Ministry is actively implementing the scheme, monitoring progress, and disbursing funds to achieve its objectives of boosting investment, employment, and exports in the food processing sector. * **Action Required:** Continue to monitor the scheme's performance, assess its impact, and ensure efficient disbursement of funds and achievement of budgetary targets. Facilitate the continued growth and development of the food processing industry.

Key Entities Referenced