The Ministry of Food Processing Industries on July 25, 2023, issued a notification regarding the Production linked incentive scheme for Food Processing Industry.
The scheme consists of three components: incentivizing manufacturing in four major food product segments (Ready to Cook/ Ready to Eat foods, Processed Fruits & Vegetables, Marine Products and Mozzarella Cheese), promoting Innovative/Organic products of SMEs, and supporting branding and marketing abroad for Indian brands.
The Government is fully aware of the potential issues that could arise from the PLISFPI scheme. To ensure its effectiveness and fairness, proactive measures were taken during the scheme formulation stage. Various stakeholders were actively engaged, and an extensive consultative process was followed, involving large-scale manufacturers, SMEs, etc. As a result, the scheme guidelines ensure the scheme benefits all stakeholders, including farmers.
The scheme guidelines specify that the entire manufacturing process, including primary processing, of the food products eligible for coverage under the scheme must occur in India, with the exception of additives, flavors, and edible oils. This approach aims to foster a strong value chain that benefits farmers and supports domestic production. These guidelines ensure farmer inclusivity, particularly for small-scale farmers, by guaranteeing remunerative prices for farm produce and higher income.
[Release ID: 1942525]
