Centre seeks industry roadmap for next food processing incentives

The Ministry said sales of products supported under the scheme grew at a compound annual growth rate (CAGR) of 10.82 percent, increasing from ₹58,758 crore in 2019-20 to ₹1,08,854 crore in 2025-26.

The Ministry of Food Processing Industries (MoFPI) has begun consultations with industry leaders to shape the next generation of incentive schemes for India's food processing sector. A high-level stakeholder meeting held at Vigyan Bhawan in New Delhi focused on designing a future-ready policy framework that supports investment, innovation, exports and employment while strengthening the country's agri-value chains.

The consultation brought together senior ministry officials, representatives from IFCI Limited, Invest India, industry associations and companies that have benefited from the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI). The discussions aimed to gather industry feedback on the structure, implementation and incentive design of the proposed expansion of government support for the sector.

Officials presented the achievements of the existing PLISFPI, highlighting that beneficiary companies invested more than ₹9,207 crore, exceeding the original commitment of ₹7,722 crore by nearly 20 percent. These investments have been spread across 212 manufacturing locations in 22 states, significantly expanding India's food processing capacity.

PLI scheme drives investment, exports and jobs

The Ministry said sales of products supported under the scheme grew at a compound annual growth rate (CAGR) of 10.82 percent, increasing from ₹58,758 crore in 2019-20 to ₹1,08,854 crore in 2025-26. Exports also recorded healthy growth, expanding at a CAGR of 11.05 percent to reach ₹20,840 crore during the same period.

The scheme has generated around 3.35 lakh direct and indirect employment opportunities while attracting more than ₹3,265 crore in investments to notified tribal areas. One of its standout achievements has been the rapid growth of millet-based processed foods, with sales rising at a 104 percent CAGR and millet procurement increasing at a 97 percent CAGR, reflecting the growing demand for nutritious and value-added food products.

Delivering the keynote address, MoFPI Secretary Shri Avinash Joshi said the Government intends to build the next phase of incentives on an evidence-based and industry-driven approach. He said future policies would focus on strengthening domestic manufacturing, improving global competitiveness, encouraging technology adoption and innovation, increasing value addition and creating greater benefits for farmers, MSMEs and the wider agricultural economy.

Industry recommends flexible incentives for emerging sectors

Participants held detailed discussions covering major food processing segments including ready-to-cook and ready-to-eat foods, bakery and confectionery, processed fruits and vegetables, beverages, spices, marine products, dairy, nutraceuticals, functional foods, plant-based proteins, animal feed and food processing machinery.

Industry representatives recommended a more flexible and outcome-oriented incentive framework that supports emerging food categories while linking incentives to exports, employment generation, research and development, technology adoption and capital investment. They also called for stronger support for overseas branding, simpler reimbursement procedures, improved implementation processes, better backward integration for raw materials and greater encouragement for automation and product innovation.

Special attention was given to high-growth sectors such as nutraceuticals, functional foods, plant-based proteins, dairy ingredients, marine value-added products, pet food and advanced food processing technologies, which were identified as areas with significant domestic and export potential.

The consultation also highlighted the need to strengthen India's innovation ecosystem through dedicated research facilities, clinical validation infrastructure, Centres of Excellence, export promotion initiatives and regulatory support. Participants stressed that developing indigenous ingredients, improving supply chains and building globally recognised Indian food brands would be essential for long-term growth.

Concluding the meeting, Secretary Avinash Joshi announced the formation of two Working Groups. The first will address misleading perceptions surrounding processed food products and the food processing industry, while the second will focus on developing a collaborative strategy to strengthen and promote India's food processing sector. He assured stakeholders that the Ministry would carefully examine the recommendations received and continue working closely with industry to develop a transparent and future-ready policy framework that supports innovation, competitiveness, sustainable employment and India's ambition to become a global food processing hub.