Enhancement in Food Processing: Over 145,000 Projects Authorized under MoFPI Plans to Strengthen Rural Economy and Aid Farmers
India's Food Processing Industry Thriving with Government Schemes
India's food processing sector is seeing significant growth, thanks to various government initiatives aimed at enhancing capacity, creating infrastructure, promoting exports, and generating employment. One such initiative is the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), which was launched in 2021 and is being implemented until 2026-27 with a budgetary outlay of around Rs. 10,900 crore.
The PLISFPI has already made a substantial impact on the food processing sector. As of July 2025, approximately 170 applications have been approved under various categories of the scheme, leading to the creation of about 35 lakh metric tonnes of additional food processing capacity[1][3][5]. This has resulted in the generation of around 3.39 lakh direct and indirect jobs[3].
The scheme's focus on domestic manufacturing is evident, with incentives provided only when the entire manufacturing process, including primary processing, of the food products is carried out in India. This promotes domestic value addition, a key aspect of the PLISFPI[3].
The PLISFPI also supports the development of modern infrastructure for food processing and efficient supply chain management from farm gate to retail, including storage and transportation[2]. Specific sectors like meat processing benefit from infrastructure aids like cold storage, chilling lines, and a focus on hygiene and product value enhancement[4].
The scheme indirectly benefits farmers by supporting better returns through value addition and market linkages, thereby contributing to the rural economy[2][3]. However, data on farmer beneficiaries under PLISFPI is not currently available.
The PLISFPI is part of the Ministry of Food Processing Industries' broader strategy, which includes schemes such as the Pradhan Mantri Kisan Sampada Yojana (PMKSY) and the Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) Scheme. These schemes aim to holistically grow the food processing sector[2].
Under the PMFME scheme, over 1,44,517 proposals have been approved, focusing on infrastructure development, value addition, and farmer support[6]. Similarly, under the PMKSY, 1,134 projects have been approved across the country[7].
In addition to these schemes, the ministry has organised three editions of World Food India, in 2017, 2023, and 2024. These events facilitate investment and partnerships in the food processing industry, bringing together global food processing stakeholders and innovators[8].
For instance, Kushinagar district in Uttar Pradesh has been identified for a Banana Cluster under the Operation Greens component of PMKSY, with banana designated as the One District One Product (ODOP) under the PMFME scheme[9]. This initiative aims to increase the shelf life of produce, minimise post-harvest losses, and help farmers receive better returns.
The PLISFPI and these related schemes demonstrate the Indian government's commitment to the food processing sector. With a significant budget, approved projects, and a focus on capacity enhancement, infrastructure creation, export promotion, employment generation, and domestic manufacturing, these initiatives are set to shape the future of India's food processing industry.
[1] Ministry of Food Processing Industries [2] Pradhan Mantri Kisan Sampada Yojana [3] Press Release: Production Linked Incentive Scheme for Food Processing Industry [4] Meat Processing Sector [5] Budget Speech 2021 [6] Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) Scheme [7] Pradhan Mantri Kisan Sampada Yojana (PMKSY) [8] World Food India [9] Kushinagar district gets Banana Cluster under Operation Greens
- The Indian government's commitment to the food processing sector extends beyond the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), as seen in other initiatives like the Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) Scheme and the Pradhan Mantri Kisan Sampada Yojana (PMKSY).
- The PLISFPI focuses not only on capacity enhancement and infrastructure creation but also on promoting exports, employment generation, and domestic manufacturing, demonstrating a strategic approach to the finance and business sectors.
- Global stakeholders in the food and drink industry have been brought together through events like World Food India, which facilitates investment and partnerships in the food processing industry, reflecting an interest in global cuisines and policy-and-legislation dialogues.
- In addition to creating infrastructure for meat processing, the PLISFPI also aims to improve hygiene and product value enhancement, which impacts the food-and-drink sector and the overall lifestyle of consumers.
- The PLISFPI and related schemes not only support the food processing industry but also indirectly benefit farmers by offering better market linkages and value addition opportunities, contributing to the rural economy and general news regarding farming and agricultural practices.
