Lok Sabha Question No. 1636 (UNSTARRED), answered on 2024-12-05
Subject: PLI Scheme for Food Processing Sector
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Dr. T Sumathy Alias Thamizhachi Thangapandian

## GOVERNMENT OF INDIA

## MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 1636

ANSWERED ON 05 TH  December, 2024

## PLI SCHEME FOR FOOD PROCESSING SECTOR

## 1636.  DR. T SUMATHY ALIAS THAMIZHACHI THANGAPANDIAN

Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:

- (a) the details of funds released and utilized under the Production Linked Incentive (PLI) Scheme for the Food Processing Sector since its inception, State/UT-wise including Tamil Nadu;
- (b) whether the Government has conducted any study on the financial constraints faced by Small and Medium Enterprises (SMEs) in the food processing sector, if so, the details thereof and if not, the reasons therefor;
- (c) the steps taken/being taken by the Government to provide financial assistance to SMEs in the Food Processing sector;
- (d) whether the Government has a plan to simplify the regulatory requirements for SMEs in Food Processing Sector and if so, the details thereof; and
- (e) the  measures  taken/being  taken  by  the  Government  to  promote  innovation  and  technology adoption within the Food Processing sector?

## ANSWER

## THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SHRI RAVNEET SINGH)

(a).  The PLI scheme is a Central Sector Scheme. The incentives are released directly to the approved beneficiaries  and not through the State Government. So far, Rs 1084 crores have been disbursed as incentives under the Scheme.

(b), (c) and (d).  The Ministry of Food Processing Industries (MoFPI) is implementing the following Schemes: Pradhan Mantri Kisan Sampada Yojana (PMKSY), Production Linked Incentive Scheme for Food Processing Industries (PLISFPI), and the Pradhan Mantri Formalization of Micro food processing Enterprises (PMFME) scheme. The Guidelines of these schemes have been formulated after stakeholder consultations.  These  schemes  support  food  processing  enterprises,  including  SMEs,  by  offering financial,  technical,  and  marketing  support  for  food  processing  infrastructure,  capacity  building, innovation, and formalization.

SMEs are also eligible to avail the benefits under various components of the PMKSY Scheme. PMFME scheme specifically targets formalization of unorganized units, improving their access to institutional credit and modern infrastructure. The PLISFPI supports SMEs through incentives for innovative and organic  product  sales  and  provides  branding  and  marketing  aid  to  promote  Indian  food  brands internationally.  The  PLI  Scheme  for  Millet-Based  Products  further  aids  SMEs  by  fostering  millet inclusion in food products, driving value addition, and enhancing market diversification. 70 MSMEs have directly enrolled under the scheme, with an additional 40 serving as contract manufacturers for larger firms.

The Ministry of Micro, Small and Medium Enterprises (MSMEs) is implementing various schemes / programmes to improve the MSME sector in terms of new technologies and investments which interalia includes, MSME Champions Scheme, Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), Prime Minister's Employment Generation Programme (PMEGP), SelfReliant India Fund, Micro  and  Small  Enterprises  -  Cluster  Development  Programme  (MSE-CDP),  Technology  Centre Systems Programme etc. These schemes aims inter-alia to increase credit-flow and simplify regulatory requirements for SMEs, including those in food processing sector.

(e).   The Government has implemented several measures to foster innovation and technology adoption in the food processing sector. Under the PLISFPI, financial incentives are extended to beneficiaries for promoting  the  sales  of  innovative  and  organic  products.  The  PMFME  scheme  aims  to inter-alia strengthening  institutions,  research,  and  training.  The  National  Institutes  of  Food  Technology Entrepreneurship and Management (NIFTEM) at Kundli, Haryana and NIFTEM at Thanjavur, Tamil Nadu,  in  collaboration  with  State  Technical  Institutions,  provide  training  and  research  support. Additionally, specialized institutions under Indian Council of Agricultural Research (ICAR), Council of Scientific & Industrial Research (CSIR), and premier bodies like Defence Food Research Laboratory (DFRL) and Central Food Technological Research Institute (CFTRI) offer targeted training and research assistance.

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