The Ministry of Food Processing Industries (MoFPI) has initiated discussions on the future of India’s food processing sector by organizing a high-level stakeholder consultation at Vigyan Bhawan, New Delhi. The meeting focused on designing the next phase of fiscal incentives and subsidy schemes that will strengthen the country’s food processing ecosystem while promoting innovation, exports, employment, and value addition.
The consultation brought together senior officials from MoFPI, representatives of IFCI Limited, Invest India, industry associations, food processing companies, and beneficiaries of the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) to gather industry feedback on the proposed expansion of the incentive programme.
PLISFPI Delivers Strong Performance
During the meeting, the Ministry highlighted the significant achievements of the existing PLISFPI scheme, demonstrating its positive impact on investments, production, exports, and employment.
According to the Ministry:
- Beneficiary companies invested over ₹9,207 crore, exceeding the original commitment of ₹7,722 crore by nearly 20%.
- Investments have been made across 212 manufacturing locations in 22 states.
- Sales of PLI-supported food products increased from ₹58,758 crore in FY 2019-20 to ₹1,08,854 crore in FY 2025-26, recording a 10.82% CAGR.
- Exports grew at an annual rate of 11.05%, reaching ₹20,840 crore.
- The scheme generated nearly 3.35 lakh direct and indirect employment opportunities.
- More than ₹3,265 crore was invested in notified tribal areas.
- Millet-based processed food emerged as one of the biggest success stories, with sales growing at 104% CAGR and millet procurement increasing by 97% CAGR.
Government Plans Industry-Driven Incentive Framework
Delivering the keynote address, Shri Avinash Joshi, Secretary, MoFPI, stated that the Government intends to build an evidence-based and industry-driven policy framework for the next generation of food processing incentives.
The upcoming scheme is expected to focus on:
- Strengthening domestic manufacturing
- Enhancing India’s global competitiveness
- Encouraging technology adoption and innovation
- Promoting value addition
- Supporting farmers, MSMEs, and agricultural value chains
- Creating sustainable employment opportunities
Wide Range of Food Processing Sectors Participated
The consultation included dedicated discussions across several food processing segments, including:
- Ready-to-Cook and Ready-to-Eat Foods
- Bakery and Confectionery
- Processed Fruits and Vegetables
- Beverages and Spices
- Dairy Products
- Marine Products
- Nutraceuticals
- Functional Foods
- Plant-Based Proteins
- Animal Feed
- Food Processing Machinery
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Industry Recommends Flexible and Outcome-Based Incentives
Industry stakeholders suggested that the next phase of the incentive scheme should move towards a more flexible and performance-oriented framework.
Major recommendations included:
- Expanding coverage to emerging food categories.
- Introducing differentiated incentives for exports, innovation, R&D, technology adoption, import substitution, employment generation, and capital investment.
- Simplifying implementation procedures.
- Improving reimbursement mechanisms.
- Rationalizing eligibility criteria.
- Supporting automation and quality enhancement.
- Encouraging product innovation and advanced manufacturing technologies.
Sunrise Sectors Receive Special Attention
Participants emphasized the need for greater policy support for several high-growth segments that have significant domestic and export potential.
These include:
- Nutraceuticals
- Functional Foods
- Plant-Based Proteins
- Dairy Ingredients
- Marine Value-Added Products
- Animal Feed
- Pet Food
- Advanced Food Processing Technologies
Industry representatives also called for stronger support for overseas branding, export promotion, indigenous ingredient development, backward integration, and resilient supply chains to improve India’s global competitiveness.
Focus on Innovation and Research
Stakeholders stressed the importance of building a world-class innovation ecosystem for the food processing industry.
Suggestions included establishing:
- Dedicated research infrastructure
- Clinical validation facilities
- Centres of Excellence
- Export promotion initiatives
- Regulatory support mechanisms
- Advanced technology and product development centres
The objective is to position India as a global hub for innovative and value-added food products.
Two Working Groups to Strengthen the Sector
During the concluding session, Secretary Shri Avinash Joshi announced the Government’s intention to adopt a focused and collaborative approach through the formation of two dedicated Working Groups.
The proposed Working Groups will focus on:
- Addressing misleading and negative perceptions surrounding processed food products through science-based communication.
- Promoting the growth of India’s food processing sector by developing a positive, innovation-driven, and globally competitive ecosystem.
The Ministry emphasized that these groups will play an important role in building consumer confidence while supporting long-term industry growth.
Government Reaffirms Commitment
Concluding the consultation, the Ministry assured stakeholders that all recommendations received during the discussions would be carefully examined while preparing the next phase of the food processing incentive scheme.
MoFPI reiterated its commitment to developing a transparent, progressive, and future-ready policy framework that encourages innovation, strengthens agricultural value chains, boosts exports, supports MSMEs, and creates large-scale employment opportunities.
With the success of the current PLISFPI and active industry participation, the Government aims to further accelerate India’s journey toward becoming a global food processing powerhouse while enhancing value addition across the agri-food sector.
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