Discussions Underway on Potential Extension of PLI Incentives for Food Processing Industry

Government Evaluates Extension of PLI Scheme for Food Processing Sector

The Ministry of Food Processing Industries is currently evaluating whether to extend the Production-Linked Incentive (PLI) scheme for the food processing sector. Discussions on the matter are underway, with Chirag Paswan, Food Processing Industries Minister, stating that clarity on the issue is expected very soon.

The PLI scheme, launched in 2021-22 with a budgetary outlay of Rs 10,900 crore, is set to conclude this fiscal year. Over the past six years, the programme has attracted Rs 9,207 crore in investments across 22 states, resulting in the addition of 3.4 million tonnes per annum of processing capacity and the creation of 3,29,000 jobs.

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A senior official stated that the government is evaluating the scheme's performance and its potential impact on the sector. The official noted that sales of products covered under the PLI scheme grew at a compound annual growth rate (CAGR) of 10.58 per cent against a 2019-20 baseline, while export sales rose at 7.41 per cent CAGR.

Paswan emphasized the importance of maintaining quality standards in the food processing sector. He urged the industry not to compromise on quality, citing instances where Indian consignments were rejected at international ports due to quality issues. The minister also called for setting up processing units in rural areas, highlighting the need for backward linkages.

Paswan expressed his desire to see Indian standards recognized globally and encouraged the industry to launch a nationwide campaign to counter the narrative that processed food is bad. He also suggested associating with radiation centers and planning to set up more food testing labs to promote food safety.

The minister stressed that India has not tapped the food processing sector enough, either domestically or globally, and called on the industry to expand manifold. He emphasized that the sector has the potential to justify free trade agreements (FTAs) and take the diversity of Indian food to every corner of the world.

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