The Indian government has taken a significant step toward enhancing the food processing sector’s growth with the recent approval of the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) by the Union Cabinet. This initiative is part of a broader strategy to augment the manufacturing capabilities within the country, particularly in sectors that hold potential for global and domestic demand and can contribute to job creation.
Overview of PLISFPI
Implemented over a five-year period from 2021-22 to 2026-27, the PLISFPI aims to invigorate the food processing industry in India. The scheme is designed to stimulate the production of certain processed food items, encourage the establishment and growth of Indian food processing brands, and ensure farmers receive fair compensation for their produce. By incentivizing the sector, the government anticipates that the scheme will lead to significant economic and employment benefits.
Employment Generation Prospects
One of the key outcomes expected from the PLISFPI is the creation of employment opportunities. With an estimated projection to provide jobs to approximately 2.5 lakh individuals by the end of the scheme in 2026-27, the PLISFPI is positioned as a major employment driver. This is particularly significant in a country where job creation is crucial for economic growth and social stability.
Projected Food Output Increase
In terms of production, the scheme is expected to generate a substantial increase in food output. By the year 2026-27, the food output is anticipated to be worth Rs.33,494 crores. This increase in production is not only vital for meeting the growing domestic demand but also for enhancing India’s position in the global food market, potentially leading to increased exports and improved trade balance.
Incentives for Processed Food Manufacturing
Central to the PLISFPI is the focus on boosting the manufacturing of specific categories of processed food products. These include ready-to-cook/eat foods, processed fruits and vegetables, marine products, and mozzarella cheese, among others. By offering subsidies and financial incentives, the scheme seeks to encourage food processing companies to scale up their operations, adopt better technologies, and improve quality to compete on a global scale.
Support for Indian Brands
Another objective of the PLISFPI is to promote Indian brands in the food processing sector. The government recognizes the importance of brand building for Indian products in international markets. Through this scheme, support is extended to Indian companies to enhance their competitiveness and encourage them to develop and market their brands across the globe.
Ensuring Fair Prices for Farmers
Ensuring remunerative prices for farm products is a critical aspect of the PLISFPI. The scheme is structured to create a more favorable ecosystem for farmers by reducing the gap between the farm gate price and the retail price. By doing so, it aims to provide better returns to farmers for their produce, thereby contributing to their economic well-being and sustainability.
The PLISFPI is a comprehensive strategy that addresses various facets of the food processing industry—from production enhancement and job creation to brand promotion and farmer welfare. Its successful implementation has the potential to transform the landscape of the food processing industry in India, making it a key player in the global market while simultaneously strengthening the domestic economy.