Big Push to Millets in Food Processing PLI
·
Scheme Overview
o
Production Linked Incentive Scheme for Food
Processing Industry launched to boost food processing, exports, and global
brand creation.
o
Implemented for 6 years (FY 2021–22 to FY
2026–27) with ₹10,900 crore outlay.
·
Key Objectives
o
Increase value addition in agriculture.
o
Expand processing capacity.
o
Generate employment, especially in rural
areas.
o
Promote India as a global food manufacturing hub.
·
Major Components
o
Incentives for 4 key segments:
§ Ready-to-Cook
/ Ready-to-Eat (RTC/RTE)
§ Processed
fruits & vegetables
§ Marine
products
§ Mozzarella
cheese
o
Support for:
§ Innovative
& organic SME products
§ Branding
& marketing abroad
·
Millet Promotion Push
o
Boosted after International Year of Millets 2023.
o
Millet-based product sales surged from:
§ ₹345.73
crore (FY23) → ₹1845.25 crore (FY25)
o
Millet procurement increased 15 times.
·
Industry Participation
o
128 companies approved
o
Covering 274 units across India
o
Strong MSME participation:
§ 68 MSMEs
§ 40
contract manufacturing units
·
Investment Performance
o
Committed: ₹7,722 crore
o
Actual investment: ₹9,207 crore
(exceeded target)
o
Spread across 22 states
·
Capacity & Employment
o
Added 34 lakh MT/year processing capacity
o
Generated 3.29 lakh jobs (direct + indirect)
·
Growth in Sales & Exports
o
Domestic sales CAGR: 10.58%
o
Export sales CAGR: 7.41%
o
Strong performance despite global challenges
·
Value Chain Strengthening
o
Ensures end-to-end value addition within India
o
Benefits:
§ Higher
farmer income
§ Reduced
post-harvest losses
§ Stronger
farm-to-fork ecosystem
·
Branding & Global Presence
o
Supports Indian brands in:
§ International
retail shelves
§ Marketing
and brand visibility
o
Enhances India’s position in global processed food
market
·
Overall Impact
o
Drives investment, modernization, and technology
adoption
o
Boosts exports and domestic manufacturing
o
Aligns with vision of Atmanirbhar
Bharat and agri-value addition
The
Production Linked Incentive (PLI) Scheme for Food Processing Industry, launched
by the Ministry of Food Processing Industries, is a major initiative aimed at strengthening
India’s food processing sector, promoting Indian brands in global markets, and creating
global food manufacturing champions. The scheme is being implemented for a period
of six years from FY 2021–22 to FY 2026–27 with a total financial outlay of ₹10,900
crore. The scheme focuses on increasing value addition in the food processing sector,
expanding processing capacity, and generating employment, particularly in rural
areas and off-farm sectors.
The
components of the Scheme are – Incentivising manufacturing of four major food product
segments viz. Ready to Cook/ Ready to Eat (RTC/RTE) foods, Processed Fruits &
Vegetables, Marine Products and Mozzarella Cheese. The second component relates
to production of Innovative / Organic products of SMEs. The third component related
to support for branding and marketing abroad to incentivize emergence of strong
Indian brands for in-store Branding, shelf space renting and marketing. In the backdrop
of declaration of Year 2023 as “International Year of Millets”, the Ministry took
the initiative to encourage the use of Millets in RTC/RTE products and incentivizing
them under the PLI Scheme (PLISMBP) to increase usage of millets in food products
and promote value addition and sales.
Under
the scheme, a total of 128 companies has been approved, covering 274 units across
the country. The scheme has also ensured strong participation from the MSME sector,
with 68 MSME applicants and 40 contract manufacturing units being supported. This
reflects the inclusive nature of the scheme, which supports both large food processing
companies and small and medium enterprises, thereby strengthening the entire food
processing value chain. The scheme has led
to significant capacity creation, technology upgradation, and modernization of food
processing units across various states in the country.
The
investment performance under the scheme has been highly encouraging. Against a committed
investment of ₹7,722 crore, a cumulative investment of ₹9,207 crore
has been made under the scheme in 22 States, indicating that companies have invested
more than their initial commitments. Further, around 34 lakh metric tonnes per annum
of processing and preservation capacity has been added under the scheme. The scheme
has also generated employment of about 3.29 lakh persons, including both direct
and indirect employment. The sales of PLI products increased by CAGR of 10.58% and
export sales of PLI products increased by CAGR of 7.41% despite challenging macroeconomic
factors.
The
sale of Millet-Based Products has also been increased from Rs. 345.73 crores (FY
2022-23) to Rs.1845.25 crores (FY 2024-25) due to interventions of PLISFPI scheme.
The procurement of millets has also increased from Rs. 1103.18 MT to Rs.17089.16
MT which is 15 times more.
The
scheme has also contributed to the growth in sales and exports of PLI-supported
products. Value-added products such as RTC/RTE products, processed Fruits and Vegetables,
marine products, mozzarella cheese, and millet-based products have shown significant
growth under the scheme. Importantly, the scheme has ensured that complete value
addition of manufactured products is taking place within India, thereby supporting
domestic manufacturing, increasing farmers’ income, and strengthening the farm-to-fork
value chain.
The
PLI Scheme has also supported branding and marketing of Indian food products under
the branding and marketing component, enabling Indian brands to expand their presence
in international markets. This is helping India emerge as a strong global player
in the processed food sector and increasing the global visibility of Indian food
brands.
Overall,
the Production Linked Incentive Scheme for Food Processing Industry is playing a
transformative role in the development of the food processing sector by promoting
investment, increasing production capacity, boosting exports, supporting Indian
brands, generating employment, and strengthening the overall food processing ecosystem
in the country. The scheme is aligned with the Government of India’s vision of increasing
value addition in agriculture, reducing post-harvest losses, and making India a
global hub for food processing.