PLI Scheme in Food Processing Sector Creates Over 2.89 Lakh Jobs: Government
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New Delhi, Dec 6 (NationPress) The production-linked incentive (PLI) program for the food processing sector has facilitated the creation of more than 2.89 lakh jobs (as of October 31), as reported by the government on Friday.
As per the data submitted by the beneficiaries of the scheme, an investment totaling Rs 8,910 crore has been made at 213 locations throughout the country, according to a statement from the Ministry of Food Processing Industries.
The PLI scheme for Food Processing Industry (PLISFPI) received approval from the Union Cabinet on March 31, 2021, with a budget allocation of Rs 10,900 crore, set to be implemented from 2021-22 to 2026-27.
The ministry revealed that approximately 171 applicants have been accepted into the scheme. The selection of beneficiaries under PLISFPI was conducted as a one-time initiative, following extensive stakeholder engagement and outreach to ensure broad participation.
The Ministry highlighted that by mandating the use of domestically-sourced agricultural products (excluding additives, flavors, and edible oils) in the production process, the scheme has significantly enhanced local raw material procurement, thereby benefiting underdeveloped and rural areas while improving farmers' earnings.
“Moreover, the focus on local sourcing of raw materials for processed food has created additional employment opportunities outside of farming, thereby playing a substantial role in the economic growth of rural areas,” emphasized the Ministry.
This scheme has notably contributed to the nation’s overall development by increasing domestic manufacturing, enhancing value addition, boosting the local production of raw materials, and generating job opportunities.
The Centre actively supports small and medium enterprises (SMEs) within the food processing sector through initiatives such as the Pradhan Mantri Kisan Sampada Yojana (PMKSY), PLISFPI, and the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme.
These initiatives offer financial, technical, and marketing assistance to SMEs, aiding in capacity building, innovation, and formalization, as stated by the ministry.
A substantial proportion of beneficiaries under the PLI scheme are MSMEs, with 70 MSMEs directly enrolled and an additional 40 serving as contract manufacturers for larger firms.
Beneficiaries under this scheme are reimbursed 50 percent of their expenses on branding and marketing abroad, limited to 3 percent of their annual food product sales or Rs 50 crore per year, whichever amount is lesser.
To qualify, applicants must invest a minimum of Rs 5 crore over five years. Currently, there are 73 beneficiaries participating in this component of the PLI scheme, according to the ministry.
