Production Linked Incentive (PLI) Scheme for Food Processing Industry

Frequently Asked Questions

What is the primary objective of the PLI Scheme for Food Processing Industry?

The scheme aims to support the creation of global food manufacturing champions in India, promote Indian food brands internationally, increase off-farm employment opportunities, and ensure better prices for farm produce, ultimately boosting farmer incomes.

Who is eligible to apply for this scheme?

Support is provided to applicants engaged in manufacturing food products in India within specified target segments. This includes large entities (Category I), SMEs manufacturing innovative/organic products (Category II), and entities applying solely for international branding support (Category III). Applicants must meet minimum sales and investment criteria and not be declared defaulters or bankrupt.

What food product segments are covered under the scheme?

The scheme covers manufacturing and sales in Ready-to-Cook/Ready-to-Eat food products (including millet-based), Processed Fruits and Vegetables, Marine Products, Mozzarella Cheese, and innovative/organic products from SMEs across these segments, including Free Range Eggs, Poultry Meat & Egg Products.

How is the production-linked incentive calculated?

The incentive is calculated as 'Incremental Sales × Applicable Rate of Incentive'. The applicable incentive rates vary by segment and year, generally ranging from 4% to 10%. The incentive is payable from the year of selection until the end of the scheme period, subject to achieving a minimum Compound Annual Growth Rate (CAGR) in sales.

What kind of financial support is available for branding and marketing abroad?

The scheme offers 50% reimbursement of expenditure incurred on eligible branding and marketing activities in international markets. This support is subject to a maximum of 3% of sales of food products or ₹50 crore per year, whichever is lower. A minimum eligible expenditure of ₹5 crore over 5 years is required to claim this incentive.

What is the application process for the PLI scheme?

Applications are invited online through an Expression of Interest (EOI) released by MoFPI. Applicants must fill out the prescribed format on the official portal, upload required documents and undertakings, and pay a non-refundable application fee. The Project Management Agency (PMA) then processes and recommends applications to MoFPI for final approval.

About this subsidy

The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) is a flagship initiative launched by the Ministry of Food Processing Industries (MoFPI), Government of India. Its primary objective is to bolster India's position in the global food manufacturing landscape by supporting the creation of world-class food processing champions and promoting Indian food brands internationally. Beyond industrial growth, the scheme aims to generate significant off-farm employment opportunities, ensure remunerative prices for agricultural produce, and ultimately enhance farmer incomes.

The scheme operates over a six-year period, spanning from Financial Year 2021-22 to Financial Year 2026-27. Incentives earned in a particular year are typically disbursed in the subsequent year. Implementation is meticulously managed by MoFPI through a dedicated Project Management Agency (PMA), which oversees the entire application processing, verification, and disbursement lifecycle.

PLISFPI is structured around three core components designed to achieve its multi-faceted objectives:

Component 1: Incentivizing Key Food Segments: This component focuses on providing incentives for the manufacturing of four major food product categories. These include Ready to Cook/Ready to Eat (RTC/RTE) foods, with a special emphasis on millet-based products, Processed Fruits & Vegetables, Marine Products, and Mozzarella Cheese. The goal is to stimulate growth and value addition in these high-potential areas.
Component 2: Support for Innovative & Organic SMEs: Recognizing the crucial role of small and medium-sized enterprises (SMEs) in innovation, this component specifically incentivizes SMEs involved in innovative or organic product development across all the aforementioned food product segments. This also extends to specialized products such as Free Range Eggs, Poultry Meat, and Egg Products, encouraging diversification and sustainable practices.
Component 3: Global Branding and Marketing Support: To facilitate the emergence of strong Indian brands on the international stage, this component offers financial support for branding and marketing activities abroad. This strategic push is critical for Indian food products to gain recognition and market share in competitive global markets, thereby boosting exports and enhancing India's trade footprint.

The Production Linked Incentive Scheme for Food Processing Industry offers significant financial benefits to eligible manufacturers. The core benefit is a production-linked incentive calculated as Incremental Sales multiplied by an Applicable Rate of Incentive. These rates vary by segment and year, ranging from 10% down to 4% for different products like Ready-to-Cook/Ready-to-Eat, Processed Fruits & Vegetables, Marine Products, and Mozzarella Cheese (with value-added marine products potentially receiving 10%). This incentive is disbursed annually from the year of selection until the scheme's conclusion, provided the applicant achieves a minimum Compound Annual Growth Rate (CAGR) in sales.

Furthermore, the scheme provides substantial financial support for branding and marketing abroad. This comes as a 50% reimbursement of eligible expenditure incurred on promoting Indian brands in international markets. This support is capped at ₹50 crore (₹500,000,000) per year or 3% of the sales of food products, whichever is lower. Applicants must incur a minimum eligible expenditure of ₹5 crore over a five-year period to claim this incentive. Eligible activities include in-store branding, shelf space renting, listing fees, media advertising, and promotional campaigns, all designed to enhance global market access and brand visibility. This comprehensive support structure aims to empower Indian food processors to scale up, innovate, and successfully compete on the world stage.

Production Linked Incentive (PLI) Scheme for Food Processing Industry

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