Government Boosts Food Processing Through PLISFPI and PMFME Schemes
The Ministry of Food Processing Industries is implementing the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) with an approved outlay of ₹10,900 crore for the period from FY 2021-22 to FY 2026-27. The scheme provides performance-linked incentives on achievement of eligible incremental sales and aims to promote domestic processing and value addition, support creation of global food manufacturing champions, promote Indian food brands in overseas markets, and generate employment opportunities.
A total of 163 applications from 127 companies, including 69 Micro, Small and Medium Enterprises (MSMEs), are presently covered under the Scheme. The approved projects are spread across 212 locations in 22 States. Incentives amounting to ₹3,271.44 crore have been disbursed up to June 2026. The Scheme has contributed to expansion of food processing capacity, growth in sales and exports, mobilization of investment, and generation of employment. The investments undertaken under the Scheme have resulted in creation of food processing capacity of 34 lakh metric ton per annum.
Approved applicants under PLISFPI have invested ₹9,207 crore against committed investment of ₹7,722 crore and generated approximately 3.35 lakh direct and indirect employment opportunities against the target of 2.50 lakh. Sales of PLI-supported products increased significantly from ₹58,758 crore in FY 2019-20 to ₹1,08,854 crore in FY 2025-26.
Under the Branding and Marketing component of PLISFPI, approved applicants are provided financial incentives at the rate of 50% of eligible expenditure incurred on Branding and Marketing Abroad, subject to a maximum of 3% of sales of food products or ₹50 crore per year, whichever is less. A separate category has been provided under the Scheme for Small & Medium Enterprises (SMEs) engaged in innovative and organic food products.
The Ministry previously implemented the Mega Food Park Scheme under Pradhan Mantri Kisan Sampada Yojana since 2008, which was discontinued effective 01.04.2021. A total of 41 Mega Food Parks in 25 States were approved under the Scheme, of which 25 are operational. These projects are expected to create preservation capacity of 28.57 Lakh Metric Ton Per Annum (LMTPA) and processing capacity of 15.41 LMTPA, benefitting approximately 86,881 farmers and generating 1,02,440 direct and indirect employment opportunities.
The Ministry is also implementing the Prime Minister Formalisation of Micro Food Processing Enterprises (PMFME) Scheme, which provides financial, technical and business support for setting up or upgradation of micro food processing enterprises through capacity building, credit support, technology upgradation and market linkages. The Scheme supports establishment of new enterprises and upgradation of existing enterprises through 35% credit-linked capital subsidy (maximum ₹10 lakh per unit), establishment of Common Infrastructure and Common Incubation Centers (CICs) with modern processing, testing, packaging and storage infrastructure, and provides Branding & Marketing support of up to 50% of the eligible project cost for development of common brands, packaging, labelling and quality standardization.
Annexure: Units in Aspirational Districts
The document includes details of 10 units approved under PLISFPI located in aspirational districts across Bihar, Jharkhand, and Uttarakhand. These include operations in Muzaffarpur (Ready to eat/Ready to cook, ₹18.50 crore investment), Begusarai (Fruits & Vegetables, ₹113.00 crore), Ranchi (Ready to eat/Ready to cook, ₹5.06 crore), and multiple units in Udham Singh Nagar covering Organic Products, Ready to eat/Ready to cook, Millet Products, and Fruits & Vegetables with investments ranging from ₹0.00 crore to ₹126.67 crore. The note clarifies that under PLISFPI, there is no provision of committed investment for Millet and Organic product segments.