Government Boosts Food Processing Sector

Exam-Focused Notes on Food Processing Initiatives in India

1. Production Linked Incentive Scheme for Food Processing Industry (PLI-SFPI)

   • Implemented by the Ministry of Food Processing Industries (MoFPI) for FY 2021-22 to FY 2026-27.
   • Approved expenditure: ₹10,900 crore.
   • Provides performance-based incentives for incremental sales to boost domestic processing and value addition.
   • Objectives:
     • Enhance domestic food processing and promote Indian food brands in global markets.
     • Create employment opportunities.
   • Current Status:
     • 127 companies, including 69 MSMEs, with 163 applications approved.
     • Projects spread across 212 locations in 22 states.
     • Incentive disbursed till June 2026: ₹3,271.44 crore.
     • Annual food processing capacity created: 34 lakh metric tons.
     • Investment by approved applicants: ₹9,207 crore (against a commitment of ₹7,722 crore).
     • Employment generated: Approximately 3.35 lakh jobs (target was 2.50 lakh).

2. Sales Growth of PLI-Supported Products

   • Sales increased from ₹58,758 crore in FY 2019-20 to ₹1,08,854 crore in FY 2025-26.

3. Mega Food Park Scheme

   • Launched as a component of the Pradhan Mantri Kisan Sampada Yojana in 2008.
   • Closed as of April 1, 2021.
   • Approved 41 mega food parks across 25 states, with 25 currently operational.
   • Expected output:
     • 28.57 lakh metric tons of preservation capacity.
     • 15.41 lakh metric tons of processing capacity.
     • Benefits for approximately 86,881 farmers and creation of 1,02,440 jobs.

4. Branding and Marketing Component

   • Promotes export and branding of Indian food products.
   • Financial incentive of 50% on eligible expenses for branding and marketing abroad, capped at 3% of sales or ₹50 crore per annum.

5. Pradhan Mantri Micro Food Enterprises Upgradation Scheme (PM-FME)

   • Demand-driven scheme for financial, technical, and business support to establish or upgrade micro food processing enterprises.
   • Provides:
     • 35% credit-linked capital subsidy (up to ₹10 lakh per unit).
     • Infrastructure support for modern processing, testing, packaging, and storage.
     • Branding and marketing assistance of up to 50% of project costs.
   • Aims to enhance adoption of modern technologies and improve export readiness.

6. Investment in Innovation and Organic Products

   • Specific provisions for innovations and organic food products under PLI-SFPI.

7. State-wise Details of Approved Units under PLI-SFPI

   • Example:
     • Bihar (Muzaffarpur) - Ready-to-eat food: ₹18.50 crore (operational).
     • Uttarakhand (Udham Singh Nagar) - Fruits and vegetables: ₹126.67 crore (operational).

8. Constitutional and Legislative Context

   • The schemes align with the Directive Principles of State Policy (DPSP) aimed at promoting the welfare of the people and ensuring economic justice.

This structured approach to food processing schemes highlights the government's focus on enhancing the sector through financial incentives, support for employment, and modernization of practices to strengthen India's position in the global food market.