Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)
🧭 Introduction – What is PLISFPI?
The Production Linked Incentive Scheme for Food Processing Industry is part of a larger PLI framework launched by the Government of India for multiple sectors.
▶️ The idea is simple:
“Link financial incentives to actual production output — especially of high-growth and export-oriented products.”
✅ In the case of food processing, the goal is:
- To build global Indian brands in the food sector
- To expand processing capacity, especially for high-value and ready-to-eat foods
- To increase exports, attract investment, and generate employment
🧾 Scheme Snapshot
Parameter | Details |
Type | Central Sector Scheme |
Tenure | FY 2021–22 to 2026–27 |
Purpose | Incentivise processing capacity, exports, Indian brands |
Nodal Agency | Project Management Agency (PMA) |
Monitoring | Empowered Group of Secretaries chaired by Cabinet Secretary |
Eligibility | Indian-registered Companies, LLPs, Cooperatives, SMEs |
🎯 Objective – What is the Scheme Trying to Achieve?
The primary objectives are:
- 🔄 Support food manufacturers to become globally competitive
- 🌍 Promote Indian brands in international markets
- 🧑🏭 Generate employment through industrial expansion
- 📦 Encourage innovation, especially in niche and organic food categories
So, this scheme is export-driven, brand-focused, and innovation-oriented.
🧩 Key Components – What Does the Scheme Support?
The PLISFPI has three major components, each with specific focus areas.
🔸 Component 1: Incentivising Manufacturing in Key Food Segments
This is the core of the scheme. It promotes production in four high-growth segments:
- Ready to Cook / Ready to Eat (RTC / RTE)
- Includes millet-based products, aligning with India’s Shree Anna push
- Processed Fruits and Vegetables
- Enhancing value addition and reducing wastage
- Marine Products
- Especially for export markets
- Mozzarella Cheese
- A niche segment with high international demand
👉 Firms in these categories receive production-based incentives linked to sales performance.
🔸 Component 2: Incentivising SMEs Producing Innovative or Organic Products
- Targets Small and Medium Enterprises (SMEs)
- Supports innovation in:
- Organic food
- Free-range eggs
- Egg products
- Poultry meat, etc.
✔️ Focus is on diversity, sustainability, and nutritional value
✔️ Encourages regional and health-focused brands to grow
🔸 Component 3: Branding and Marketing Support Abroad
- Supports companies in creating Indian brands with a global footprint
- Offers help with:
- Branding
- Advertising
- Market development
- Participation in international food expos
✅ This component bridges the gap between Indian production and global consumption.
💡 Special Features of PLISFPI
Feature | Description |
Fund Limited | Incentives capped to pre-approved limits per applicant |
Eligibility Unaffected by Other Schemes | Firms covered here are still eligible for support under PMKSY, etc. |
Third-Party Evaluation | Built-in mid-term review mechanism for course correction and transparency |
Monitoring by Cabinet Secretariat | High-level policy oversight and coordination |
📌 Comparison with Other Schemes
Parameter | PMKSY | PLISFPI |
Focus | Infrastructure, cluster-based processing, cold chains | Branding, product-specific output-based incentives |
Beneficiaries | FPOs, SHGs, Cooperatives, Private Units | Mostly formal food manufacturers, SMEs, exporters |
Type of Incentive | Grants, capital subsidies | Performance-linked payouts based on sales/exports |
Goal | Reduce wastage, build infra | Promote global Indian brands, boost production |
Thus, PLISFPI is forward-looking — focusing on marketing, brand identity, and global linkages, rather than just domestic infrastructure.
📝 UPSC Mains Use Cases:
- GS Paper 3: Economy → Agriculture → Food Processing → Export & Employment generation
- Essay: “India’s Journey from Food Security to Food Sovereignty”
- Ethics/Case Study: Rural employment + Indian brands in global value chains