Scheme
PLI Scheme for Food Processing Industry (PLISFPI)
GS3 Agriculture and food processingGS3 Industrial policyPrelims and Mains
- Why in news
- On 21 April 2026, PIB published a explainer on PLISFPI, reporting progress as of February 2026: 165 approved applications, ₹2,162.55 crore paid and about 3.39 lakh jobs created.
- What it is
- PLISFPI is a Production-Linked Incentive scheme of the Ministry of Food Processing Industries. It pays eligible firms on incremental sales of specified foods and supports Indian brands abroad. It is meant to build global Indian food manufacturing champions and falls under the wider PLI framework linked to Atmanirbhar Bharat.
- Outlay and period
- The scheme has an outlay of ₹10,900 crore and runs from 2021-22 to 2026-27.
- Category I products
- Category I covers four segments: RTC/RTE foods including millet products, processed fruits and vegetables, marine products and mozzarella cheese.
- Category III branding support
- Applicants get 50% of branding and marketing expenses abroad, capped at the lower of 3% of annual food sales or ₹50 crore a year.
- Implementing agency
- IFCI Ltd is the Project Management Agency appointed by the Ministry of Food Processing Industries.
- Millet component
- PLISMBP was carved out of PLISFPI savings in 2022-23 with an outlay of ₹800 crore.
Don’t confuse with PLISFPI vs PLISMBP: PLISMBP is a millet-focused component carved out of PLISFPI savings in 2022-23 with ₹800 crore; it is not a separate fresh allocation.
Don’t confuse with PLISFPI vs PMKSY: PLISFPI pays incentives on incremental sales; PMKSY (also run by MoFPI) funds food processing infrastructure like mega food parks and cold chains.
Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.
Why it matters
- Adds value to farm produce and links agriculture with industry.
- Creates jobs and builds export presence for Indian food brands.
Problems
- Incentives disbursed (₹2,162.55 crore) are a small part of the ₹10,900 crore outlay.
- Only 69 of 165 approved applicants are MSMEs, so large firms dominate.
Way forward
- Speed up disbursal and ease sales-threshold conditions for small firms.
- Strengthen farm-to-factory links and cold chains so processors get steady raw material.
Put in your answer
Jobs created: About 3.39 lakh direct and indirect jobs were created by February 2026, against a target of 2.5 lakh.
Processed food exports share: Processed food's share in agricultural exports rose from 13.7% in 2014-15 to 20.4% in 2024-25.
Sector GVA: Food processing GVA rose from ₹1.34 lakh crore in 2014-15 to ₹2.24 lakh crore in 2023-24.
- 2025Mains GS3 · Q14Scope of food processing industries; government employment-generation measures
- 2025Mains GS3 · Q12Rationale, achievements, and improvements of the PLI scheme
- 2019Mains GS3 · Q14Government policy to meet food processing sector challenges
- 2011Prelims Q35Purpose of promoting Mega Food Parks by Government of India
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
Prelims practice · Statements
Ours, not from a UPSC paper
Consider the following statements:
- 1.Under the Production-Linked Incentive Scheme for the Food Processing Industry, IFCI Ltd has been appointed by the Ministry of Food Processing Industries as the Project Management Agency.
- 2.Under Category III of the scheme, the government reimburses 75% of branding and marketing expenses abroad.
- 3.The Production Linked Incentive Scheme for Millet-Based Products was carved out of the savings under the food processing scheme in 2022-23.
Which of the statements given above is/are correct?
True or false?
1 of 5
Statements the way Prelims prints them. Say first, then see the fact.
1.PLISFPI is implemented by the Ministry of Food Processing Industries through IFCI Ltd as Project Management Agency.
True. IFCI is the PMA appointed by the Ministry.
2.Mozzarella cheese is one of the product segments covered under Category I of PLISFPI.
True. Category I covers RTC/RTE, processed fruits and vegetables, marine products and mozzarella cheese.
3.Under the manufacturing components, incentives are based on incremental sales over a base year of 2019-20.
True. Incentives are linked to incremental sales, with 2019-20 as base year.
4.The scheme's outlay is ₹10,900 crore and it is meant to run from 2021-22 to 2026-27.
True. Outlay ₹10,900 crore; period 2021-22 to 2026-27.
5.Category III supports branding abroad of food products even if they are partly imported, as long as the brand is Indian.
False. Only Indian brands selling food products entirely manufactured in India are covered.
Written by us from the release, not by UPSC; checked by a second model.
Worth revising until Prelims 2027: most news questions come within two years of the event.