Govt Weighs Future of Food Processing Incentive Scheme After Six-Year Run

• Government evaluating extension of food processing PLI scheme after six-year run, drawing Rs 9,207 crore investments.
• Scheme, launched in 2021-22 with Rs 10,900 crore outlay, added 3.4 million tonnes processing capacity and created 3.29 lakh jobs.
• Sales of covered products grew at 10.58% CAGR; exports at 7.41% CAGR, despite marine segment challenges.
• Scheme is unique among PLI programs for explicitly supporting MSMEs, with 68 of 128 approved companies from the sector.
• Overall processed food exports grew to USD 10.09 billion in 2024-25 from USD 6.2 billion in 2019-20, partly due to the scheme.

Key Questions Answered

Will the food processing PLI scheme be extended beyond this fiscal year?

The government is evaluating whether to extend the food processing PLI scheme beyond the current fiscal year. The scheme, launched in 2021-22, is set to conclude this fiscal year.

What changes could happen if the scheme is not extended?

If the food processing incentive scheme is not extended, there could be a slowdown in investment and job creation within the sector.