As per the Ministry of Food Processing Industries, Rs 8,910 crore has been invested across 213 locations in the country, under the productivity linked income or PLI scheme for the food processing industry (PLISFPI). The scheme/investment had received approval from the Union Cabinet in March 2021, and a budget of Rs 10,900 crore was set aside for its implementation during the period 2021-22 to 2026-27. And yes, the scheme has shown results. About 2.89 lakh jobs have been created (as on 31 October 2024).
The scheme has witnessed the enrolment of about 171 applicants, and the beneficiaries were selected via a one-time process. Of course there were awareness campaigns publicising the scheme so that more people participated in the same.
The scheme bans the use of edible oils, flavours and additives in the manufacturing process. As a result, the reliance on local farmers and rural areas for raw materials has increased. This has helped provide financial stability to the locals and farmers. The objective is to focus on production of raw materials locally for processed food. This has led to more jobs off the agriculture lands adding to the economic development of rural areas.
The government has been lending active support to small and medium enterprises in the food-processing space.
The Pradhan Mantri Kisan Sampada Yojana (PMKSY), PLISFPI, as well as the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme are just some of the schemes that have helped provide support to SMEs technically and financially, and even in the area of marketing. .
The PLI scheme has been witness to 70 MSMEs enrolling directly and 40 contributing indirectly via contract manufacturing for bigger establishments.
The scheme reimburses 50 per cent of what the beneficiaries spend on marketing and branding abroad. There is a limit to this spend, of three per cent of their yearly income from selling food products or Rs 50 crore annually, whichever is lower. Applicants are mandated to spend at least Rs 5 crore over a period of five years to be eligible.
