Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)

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Dated: 06.03.2026

Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)

The Government of India has introduced the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) to boost the growth of the food processing sector in India. This scheme, implemented by the Ministry of Food Processing Industries (MoFPI), aims to create global food manufacturing champions, promote Indian food brands, increase employment opportunities, and ensure better income for farmers. With an outlay of Rs. 10,900 crore, the scheme will be implemented from 2021-22 to 2026-27.

Objectives of PLISFPI 

The primary goals of the scheme are:

Supporting the creation of global food manufacturing champions.
Promoting Indian brands of food products.
Increasing employment opportunities for off-farm jobs.
Ensuring remunerative prices for farm produce and higher income for farmers.

Key Components of the Scheme 

The scheme is divided into three main components:

Incentivizing Manufacturing: Focused on four major food product segments:
- Ready-to-Cook/Ready-to-Eat (RTC/RTE) foods, including millet-based products.
- Processed Fruits & Vegetables.
- Marine Products.
- Mozzarella Cheese.
Support for SMEs: Incentives for innovative and organic products across the above segments, including free-range eggs, poultry meat, and egg products.
Branding and Marketing Abroad: Financial support for promoting Indian food brands in international markets.

Eligibility Criteria

To qualify for the scheme, applicants must meet specific criteria:

Category I: Large entities with minimum sales and investment thresholds (e.g., Rs. 500 crore sales and Rs. 100 crore investment for RTC/RTE foods).
Category II: SMEs manufacturing innovative or organic products with minimum sales of Rs. 1 crore during 2019-20.
Category III: Indian brands selling food products manufactured entirely in India, focusing on branding and marketing abroad.

Detailed eligibility criteria for each category are provided in Appendix-A of the guidelines.

Incentives and Tenure 

The scheme will run for six years, from 2021-22 to 2026-27, with incentives disbursed in the following year. The incentive rates vary by product segment and year, as outlined in Appendix-C. For example:

RTC/RTE foods: 10% incentive for the first three years, reducing to 8% in the final year.
Processed Fruits & Vegetables: 10% incentive for the first three years, reducing to 8% in the final year.
Marine Products: 6% incentive for the first three years, reducing to 4% in the final year.
Mozzarella Cheese: 10% incentive for the first three years, reducing to 4% in the final year.

Applicants must achieve a minimum Compound Annual Growth Rate (CAGR) in sales to claim incentives, as specified in Appendix-D.

Application Process

Applications will be invited through Expression of Interest (EOI), with separate EOIs for different categories:

Category I: Applications for sales-based incentives and branding/marketing abroad will be invited in 2021-22 for the entire program period.
Category II and III: EOIs will be released during the first three years (2021-22 to 2023-24), depending on fund availability.

Applications must be submitted online via the PMA portal at https://plimofpi.ifciltd.com. A non-refundable application fee is required:

Rs. 1,00,000 for Category I applicants.
Rs. 10,000 for Category II applicants.
Rs. 10,000 for Category III SME applicants and Rs. 50,000 for other Category III applicants.

Selection Process

Applicants will be ranked based on evaluation criteria outlined in Appendix-E. The selection process considers factors such as total sales, export sales, committed investment, and innovativeness of products. The number of selected applicants will depend on budget availability and allocation for each segment.

Disbursement of Incentives 

Incentives will be disbursed annually based on incremental sales, committed investment, and branding expenditure. Applicants must submit claims for disbursement within 9 months from the end of the financial year. The PMA will verify claims and recommend disbursement to MoFPI, which will release funds through Direct Bank Transfer.

Monitoring and Review 

The scheme will be monitored by the Empowered Group of Secretaries (EGoS), chaired by the Cabinet Secretary. Periodic reviews will be conducted to ensure the scheme’s progress and performance. Approved applicants must submit Quarterly Review Reports (QRRs) within 30 days of each quarter’s end.

Amendment to Operational Guidelines of Production Linked Incentives Scheme for Food Processing Industry (PLISFPI)

The Ministry of Food Processing Industries (MoFPI) has announced amendments to the operational guidelines of the Production Linked Incentives Scheme for Food Processing Industry (PLISFPI). These changes, effective from November 26, 2021, aim to streamline the implementation of the scheme and ensure efficient allocation of resources. The amendments were made following the decision of the Competent Authority and are applicable to Categories I, II, and III applications received in response to the Expression of Interest (EoI) published on May 2, 2021.

Key Amendments to the PLISFPI Guidelines

The revised guidelines introduce significant changes to the responsibilities and mandate of the committee constituted by MoFPI. Below are the key amendments:

Committee Responsibilities:
- The committee, chaired by the Minister of Food Processing Industries (FPI) or as decided subsequently, will continue to oversee the approval of scheme guidelines and their amendments.
- The committee will now also be responsible for decisions related to eligibility criteria, selection criteria, composition of products in different segments, inter-component/segment allocation of outlay, and minimum required growth rate to become eligible for incentives.
- Additionally, the committee has been empowered to reduce the approved rate of incentives for different segments of food products, if necessary.
Incentive Allocation and Fund Release:
- The norms regarding the number of companies and products eligible for incentives may be fixed or relaxed based on the recommendations of the Empowered Group of Secretaries (EGoS), chaired by the Cabinet Secretary.
- The selection of applicants, sanctioning, and release of funds as incentives will be carried out within the approved outlay, ensuring that the expenditure remains restricted to the allocated budget.
Applicability:
- The amended provisions are applicable to all Categories I, II, and III applications received in response to the EoI published on May 2, 2021.

Key Benefits of PLISFPI

Financial Incentives: Encourages investment in manufacturing, branding, and marketing.
Global Reach: Promotes Indian food brands in international markets.
Employment Generation: Creates off-farm job opportunities.
Support for Farmers: Ensures better prices for farm produce.

Conclusion

The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) is a transformative initiative aimed at boosting India’s food processing sector. By providing financial incentives and support for branding and marketing, the scheme seeks to position India as a global leader in food manufacturing while creating jobs and improving farmers’ incomes. Interested applicants are encouraged to review the detailed guidelines and apply through the PMA portal to take advantage of this opportunity.

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Source: Ministry of Food Processing Industries

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