Food Processing Sector Sees ₹7,000 Cr Investment Under PLI Scheme

The Production-Linked Incentive (PLI) scheme for the food processing sector has catalysed investments worth ₹7,000 crore and generated over 2.5 lakh man-days of employment so far, a senior official from the Ministry of Food Processing Industries (MoFPI) announced on Tuesday.

Speaking at a FICCI event, Ranjit Singh, Joint Secretary at MoFPI, highlighted the ministry’s unwavering commitment to revamp India's food processing ecosystem. “Till date, the ministry has funded nearly 1,600 projects, which have led to the creation of 41 lakh tonnes of food processing capacity and benefited approximately 9 lakh farmers,” Singh said.

He emphasised the food processing sector's critical role in driving agricultural diversification, boosting value addition, reducing post-harvest losses, and creating export-ready surpluses. “A vibrant food processing sector not only secures better returns for farmers but also strengthens employment generation and enhances export potential,” Singh noted.

Describing the sector as a vital link between agriculture and industry, Singh stressed the need for continued investment in modernising infrastructure. “To unlock the sector's full potential, we must upgrade our processing, packaging, storage, and distribution systems to meet both domestic and international standards,” he added.

Singh further outlined several flagship initiatives under MoFPI, including the Kisan Sampada Yojana, which focuses on building cold chains, agro-processing clusters, food testing infrastructure, and promoting R&D. Another major initiative is the PM Formalisation of Micro Food Processing Enterprises (PMFME) scheme, launched in 2020, which supports entrepreneurship and infrastructure growth in the micro-enterprise segment.

“So far, the PMFME scheme has supported around 2 lakh micro units through credit-linked subsidies and infrastructure support. Many of these small enterprises are now aspiring to scale up into medium-sized companies,” Singh stated.

He also underlined the vast untapped potential in India’s farm sector, adding that with strategic government interventions and robust manufacturing support, the sector could significantly contribute to India's self-reliance and position the country as a global food basket.

In addition, Singh addressed concerns around the public perception of processed foods. He revealed that MoFPI has set up a dedicated committee to counter misleading advertisements and is looking to collaborate with social media influencers to ensure dissemination of accurate and responsible information.

“Transparent communication is essential for consumer trust. We are actively working to counter misinformation and promote awareness about the benefits of processed foods,” he concluded.

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