National News Update : Cabinet approves PLI Scheme for food processing industry

Insight Online News

New Delhi, Mar 31 : Union Cabinet chaired by the Prime Minister Narendra Modi on Wednesday approved the Central Sector Scheme – “Production Linked Incentive (PLI) Scheme for food processing industry (PLISFPI)” to support creation of a global food manufacturing in India.

Speaking to media, Union Minister Piyush Goyal said that the PLI scheme for food processing will have an outlay of Rs 10,900 crore.

He also said that with this decision, a world-class quality food products will be made here in the country and this will give a fillip to the export of the food products whereas the FDI in food processing industry will create more jobs in future.

Mr Goyal also said that there has been a huge demand for ready-to-eat food products in the global market along with organic food, milk and mozzarella cheese.

He also said that because of the nutritional value of bajra (pearl millet) and ragi (finger millet) in the world, therefore, the food products of these two grains will also be exploited for the commercial use.

Under this scheme, marine products have also been included, which will also beneficial for the coastal states whereas eggs and eggs products have also been included in this scheme, the Minister further said, adding that it was estimated that around two and a half million jobs would be created by this decision.

The Union Minister also said that the Government wanted to increase the income of the farmers and the newly enacted three farm laws has paved the way for better options to the farmers to sale their produces on a better price.

He said that it was a different matter that some people have been provoking farmers with these laws for their political benefit, but the reality was that after the implementation of new agricultural laws has benefited the farmers.

Mr Goyal also said that with PLI scheme in place, the farmers will get better prices of their crops along with the hike in price for fruits, vegetables too. This will also boost the animal husbandry sector.

The processing of food products makes export of these products easy and this, in turn, will add up to the better financial conditions of the farmers.

Union Minister further said that farmers have started getting more options due to the new farm laws. They can sell their goods in the market or negotiate with a processing firm and charge more for it.The farmers will be largely be benefited from the PLI scheme in food processing sector.

He also reiterated that the contract farming too will benefit the farmers and no one can occupy their land. He said that under the contract farming, if the price of a commodity is high in the market, then the farmer will get the higher price and if the rate is low then he is bound to get the price what was agreed in the contract.


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