Guidelines issued for PLI Scheme for Food Processing Industry

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Guidelines issued for PLI Scheme for Food Processing Industry

Guidelines issued for PLI Scheme for Food Processing Industry

  • Recently the Ministry of Food Processing Industries has issued detailed operational planning guidelines for the production linked incentive scheme for the food processing industry.
  • Also, the Ministry has invited applications for obtaining sales based incentives and grants for foreign branding and marketing activities under the scheme.


  • Sales based incentives will be paid for six years between 2021-22 and 2026-27 under the PLI scheme.
  • The base year to calculate incremental sales will be 2019-20 and the base year for the fifth and sixth year is to be 2021-22 and 2022-23 respectively.
  • Grants given on branding and marketing will be increased to 50% of the expenditure. The maximum grant allowed is 3% of sales on food products or Rs. 50 crores per year (whichever is less).

Categories in Guidelines

  • Category 1: Applicants are large entities that apply for incentives based on sales and investment criteria. These applicants will undertake overseas branding and marketing activities. They will also be able to apply for the grant.
  • Category 2:These applicants belong to small and medium enterprises. They manufacture innovative products. They apply for grant under the scheme on the basis of their sale.
  • Category 3:These are applicants who apply for grants to undertake branding and marketing activities abroad.

Source: PIB

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