High-Level Consultation on Food Processing

Summary of the High-Level Consultation Meeting on Food Processing Industry

Objective:

• The Ministry of Food Processing Industries (MoFPI) conducted a high-level consultation in New Delhi to discuss financial support and the next phase of incentive/subsidy schemes for the food processing sector.

Participants:

• Senior officials from MoFPI, representatives from IFCI Limited, Invest India, industry representatives, regional industry associations, and beneficiaries of the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI).

Key Highlights:

1. Investment Achievements:

   • Beneficiary companies have invested over ₹9,207 crores across 212 manufacturing units in 22 states, surpassing the original investment target of ₹7,722 crores by approximately 20%.
   • Sales of products supported under the PLI scheme increased from ₹58,758 crores in FY 2019-20 to ₹1,08,854 crores projected by FY 2025-26, reflecting a Compound Annual Growth Rate (CAGR) of 10.82%.
   • Exports rose to ₹20,840 crores, marking an 11.05% CAGR.

2. Employment Generation:

   • The scheme has created approximately 335,000 direct and indirect jobs.
   • Investment in tribal areas exceeded ₹3,265 crores.

3. Focus Areas:

   • Significant growth observed in processed food products based on coarse cereals, with sales increasing at a CAGR of 104% and procurement at 97%.

4. Future Policy Framework:

   • The government is committed to developing an evidence-based and industry-driven policy framework for next-generation incentive schemes aimed at:
     • Strengthening domestic manufacturing.
     • Enhancing global competitiveness.
     • Promoting innovation and technology adoption.
     • Maximizing benefits for farmers, MSMEs, and agricultural value chains.

5. Discussion on Sub-Sectors:

   • Key sub-sectors discussed included ready-to-cook/eat foods, bakery and confectionery, processed fruits and vegetables, beverages, marine products, dairy, nutraceuticals, functional foods, plant-based proteins, animal feed, and food processing machinery.

6. Recommendations from Industry:

   • Suggestions for a more flexible and outcome-oriented incentive structure, including:
     • Expansion of the scheme to include new food categories.
     • Development of diverse incentive structures based on strategic goals such as export, import substitution, R&D, and innovation.
     • Improvement of branding and marketing for Indian food products abroad.

7. Emerging Areas of Focus:

   • Emphasis on nutraceuticals, functional foods, plant-based proteins, dairy products, value-added marine products, and advanced food processing technologies.

8. Establishment of Working Groups:

   • Proposal to form two working groups:
     • One to address misconceptions about processed food products.
     • The other to adopt a focused, collaborative, and outcome-driven approach to strengthen the food processing sector.

9. Commitment to Transparency:

   • The MoFPI assured stakeholders that all recommendations would be carefully considered, and a transparent policy framework aligned with future needs would be developed.

10. Government's Vision:

    • The government aims to establish India as a global hub for food processing through innovation, competitiveness, and sustainable employment opportunities.

This consultation meeting reflects the government's proactive approach to enhancing the food processing industry, ensuring economic growth, and addressing stakeholder concerns effectively.