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MoFPI issues guidelines for PLI Scheme for Food Processing Industry

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Ministry-of-Food-Processing-Industries-issues-guidelinesThe Ministry of Food Processing Industries (MoFPI) has issued guidelines for ‘Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)’.

i.Union Minister for Food Processing Industries Narendra Singh Tomar launched an online portal for applicants to apply for the scheme.

ii.In March, 2021, the Union Cabinet had approved the Central Sector Scheme – PLISFPI with a total outlay of INR 10, 900 Crores.

iii.The scheme was launched with objectives of creating global food manufacturing champions & supporting Indian brands of food products in International markets.

Issued Guidelines

i.Under the scheme, Proprietary Firm/Partnership Firm or a company registered in India, Co-operatives & SME (Small & Medium sized Enterprises) are eligible for incentives.

ii.The  incentives & grants under the scheme will be provided under 3 categories

  • Category-I: Large Entities applying for incentive based on Sales & Investment criteria. Applicants under this category can also undertake Branding & Marketing activities.
  • Category-II: SME Applicants manufacturing innovative/organic products who apply for PLI Incentive based on Sales.
  • Category-III: Applicants applying solely for grant for undertaking Branding & Marketing activities abroad.

iii.The sales based incentive would be paid for 6 years starting from 2021-22 to 2026-27 on incremental sales over the base year.

  • Base Year for first 4 years – 2019-20, for 5th & 6th year it would be 2021-22 & 2022-23.
  • Grants will be extended at 50% of expenditure on branding & marketing abroad to a maximum grant of 3% of Sales of food products or INR 50 Crore per year.
  • Minimum Expenditure for branding abroad shall be INR 5 Crore over a period of 5 years.

iv.Eligibility – The applicants shall meet minimum required sales/Investment growth rate in order to become eligible for incentive.

Category 1

SegmentsMinimum Sales (in 2019-20)Minimum Investment
Ready To Eat (RTE)/Ready to Cook (RTC)INR 500 CroreINR 100 Crore
Processed Fruits & VegetablesINR 250 CroreINR 50 Crore
Marine ProductsINR 600 CroreINR 75 Crore
Mozzarella CheeseINR 150 Crore10 MTPD Plant-INR 23 Crore

(MTPD-Metric Tons Per Day)

Category 2

i.Udyog Aadhar/ Udyami Registered;

ii.Achieved Minimum Sales of Rs 1 crore during 2019-20 for each of the innovative/ organic products proposed to be incentivised;

iii.Applicant for Organic Product shall be registered with APEDA for the organic product proposed to be incentivised.

Category 3

i.Only Indian Brands are covered for selling food products completely manufactured in India;

ii.Branding & Marketing shall be undertaken either by the Applicant directly or through its subsidiary or any other Agency.

Gist of PLI for Food Processing Industry

  • It incentivizes the manufacturing of 4 Major Food Products namely RTC/RTE, Processed Fruits & Vegetables, Marine Products & Mozzarella Cheese.
  • It will facilitate expansion of processing capacity to generate processed food output of INR 33, 494 Crores.
  • It is expected to create employment for around 2.5 Lakh persons by 2026-27.
  • Duration – six-year period from 2021-22 to 2026-27.

Recent Related News:

i.On March 31, 2021, the Union Cabinet chaired by Prime Minister Narendra Modi ‘Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)’ with a total outlay of INR 10, 900 Crores.

About Ministry of Food Processing & Industries (MoFPI)

Union Minister – Narendra Singh Tomar (Lok Sabha – Morena, Madhya Pradesh)
Minister of State – Rameswar Teli (Lok Sabha – Dibrugarh, Assam)