More than Rs 9,200 crore investments have been made by 165 firms under the production-linked incentive scheme in the food processing sector between FY22 to FY25, a senior official said on Tuesday.

The scheme has attracted investment by corporates including Nestle India, Hindustan Unilever, Parle Industries, Agro, Britannia, ITC, Gujarat Cooperative Milk Marketing Federation or Amul, Tata consumer and Haldiram, D Praveen, joint secretary, ministry of food processing said.

Additionally, the country’s annual processing and preservation capacities have been doubled to 7.3 million tonne (MT) with the addition of 3.4 MT created through the PLI scheme.

“Investment under the scheme has exceeded initial commitments, with cumulative investments reaching Rs 9,207 crore against a committed Rs 7,722 crore across 22 states,” Praveen said.

He said that the scheme has also helped increase production capacity, boost exports, support Indian brands, generate employment, and strengthen the overall food processing ecosystem in the country.

Four key segments

It focuses on four key segments – marine products, processed fruits and vegetables, ready to cook food and Mozzarella cheese. In the four years between 2021-22 to 2024-25, financial incentives of Rs 2740 crore have been disbursed to several private sector entities under the PLI scheme.

The states which have attracted major investment under PLI scheme include – Gujarat (Rs 1600 crore), Maharashtra (Rs 1368 crore), Andhra Pradesh (Rs 1313 crore), Uttar Pradesh (Rs 1242 crore) and Bihar (Rs 660 crore).

The scheme is currently being implemented for a period of six years from FY22 to FY27 with a total financial outlay of Rs 10,900 crore. However the implementation of the scheme would continue till the end of FY28.

“The incentives under the scheme are admissible where the entire chain of manufacturing processes, including primary processing, of the food products applied for coverage under the scheme takes place in India,” the ministry had said in a statement.

Praveen stated that sales of PLI-supported products have grown at a compound annual growth rate (CAGR) of 10.58%, while exports have registered a CAGR of 7.41% despite global challenges.

Millet-based products have seen a sharp rise under the scheme, with sales increasing from Rs 345 crore in FY23 to Rs 1,845 crore in FY25.

The scheme also has a component of supporting production of innovative and organic products of small and medium enterprise and financial assistance of branding and marketing abroad.

Under the scheme, a total of 128 companies have been approved, who have 274 units located across the country. It has also ensured strong participation from the MSME sector, with 68 MSME applicants and 40 contract manufacturing units being supported, according to an official statement.