- Why in news
- On 8 July 2026, the Ministry of Food Processing Industries held a stakeholder consultation at Vigyan Bhawan, New Delhi, to shape the next phase of the PLI scheme for food processing (PLISFPI).
- What it is
- The PLI Scheme for Food Processing Industry (PLISFPI) gives incentives linked to incremental sales of food products made in India. It aims to build global food manufacturing champions, strengthen Indian brands abroad and raise farmers' incomes through value addition. It is run by the Ministry of Food Processing Industries.
- Investment vs commitment
- Beneficiaries reported investment above Rs 9,207 crore against a committed Rs 7,722 crore, nearly 20 percent more.
- Sales and exports
- Sales of PLI-supported products rose from Rs 58,758 crore in FY 2019-20 to Rs 1,08,854 crore in FY 2025-26 (CAGR 10.82 percent). Exports reached Rs 20,840 crore.
- Jobs and tribal areas
- About 3.35 lakh direct and indirect jobs were generated, and over Rs 3,265 crore was invested in notified tribal areas.
- Millets
- Sales of millet-based processed foods grew at a CAGR of 104 percent and millet procurement at 97 percent.
- Working Groups
- Two Working Groups will be set up: one to counter misleading perceptions of processed food, another to strengthen and promote the sector.
- Implementing ministry
- PLISFPI is a Central Sector scheme of the Ministry of Food Processing Industries.
- Approvals
- 169 applications have been approved under the various categories of the scheme.
- Branding abroad support
- Applicants are reimbursed 50% of branding and marketing expenditure abroad, capped at the lower of 3% of annual food product sales or ₹50 crore a year.
- Implementing agency
- IFCI Limited has been appointed Project Management Agency to appraise proposals and scrutinise incentive claims.
Don’t confuse with PLISFPI vs PMKSY: PLISFPI gives incentives on incremental sales of manufacturers. PMKSY (Pradhan Mantri Kisan SAMPADA Yojana) funds infrastructure such as cold chains and processing units.
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
- Raises manufacturing, value addition and exports in food processing.
- Links farmers, MSMEs and agri-value chains, and boosts demand for millets.
- Builds Indian food brands and manufacturing scale, and boosts processed food exports.
- Value addition can raise farmers' incomes and create jobs.
Problems
- Industry seeks simpler procedures, clearer eligibility and better reimbursement.
- Negative public perception of processed food and weak backward linkages for raw materials.
- Incentives depend on meeting minimum sales and investment limits, so claim verification is demanding.
- Benefits may be concentrated among large firms, with limited reach to small processors.
Way forward
- Adopt outcome-linked, differentiated incentives for exports, R&D and import substitution.
- Back research infrastructure, backward integration and overseas branding.
- Keep strict claim checks while speeding up disbursal.
- Link support to farmer sourcing and extend reach to MSME processors.
Put in your answer
Export growth: Exports of processed agricultural food products approved under the scheme grew at a CAGR of 13.23% to 2024-25 from 2019-20.
- 2025Mains GS3 · Q14Scope of food processing industries and government employment measures
- 2020Mains GS3 · Q4Challenges, opportunities of food processing; boosting farmers' income
- 2025Mains GS3 · Q12Rationale, achievements, and improvements of the PLI scheme
- 2019Mains GS3 · Q14Government policies to meet food processing sector challenges
- 2004Prelims Q23Which sector attracted highest FDI inflows in past decade
- 2011Prelims Q35Purpose of promoting Mega Food Parks in 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 Food Processing Industries, applicants are reimbursed 50% of their branding and marketing expenditure abroad, capped at the higher of 3% of annual food product sales or ₹50 crore per year.
- 2.IFCI Limited has been appointed as the Project Management Agency to appraise proposals and scrutinise incentive claims under the scheme.
- 3.The scheme has so far generated direct and indirect employment of about 3.39 crore persons.
Which of the statements given above is/are correct?
True or false?
1 of 7
Statements the way Prelims prints them. Say first, then see the fact.
1.PLISFPI is implemented by the Ministry of Food Processing Industries.
True. MoFPI implements the scheme.
2.Under PLISFPI, applicants are reimbursed 50% of their branding and marketing expenditure abroad.
True. The reimbursement rate is 50%, subject to a cap.
3.The branding and marketing support abroad is capped at the higher of 3% of annual food product sales or ₹50 crore per year.
False. The cap is whichever is lower.
4.IFCI Limited has been appointed as the Project Management Agency for appraising proposals under the scheme.
True. IFCI is the PMA.
5.Scrutiny of incentive claims under the scheme includes reconciliation of sales with GST filings.
True. Claims are checked against invoices, auditor certificates and GST filings.
6.The scheme gives incentives linked to incremental sales of food products manufactured in India.
True. Incentive is tied to incremental sales of India-made food products.
7.The scheme has so far generated employment of about 3.39 crore persons.
False. About 3.39 lakh persons, direct and indirect.
Written by us from the release, not by UPSC; checked by a second model.
Worth revising until Prelims 2028: most news questions come within two years of the event.