Discussions underway on extension of PLI sops, clarity expected soon: Food processing minister

Food Processing Industries Minister Chirag Paswan on Tuesday said that discussions on extending the Production-Linked Incentive (PLI) scheme for the food processing sector are underway, and clarity is expected very soon. ''I will be selfish; I want this scheme to be extended. Not only my ministry, but other ministries are involved in this. Eventually, it will be a policy decision. We are in the process of discussion... we will have clarity on this very soon,'' Paswan told PTI on the sidelines of the 16th CII Food Safety Awards here. The government is evaluating whether to extend the PLI scheme for the food processing sector after the programme drew Rs 9,207 crore in investments across 22 states over six years, a senior official said. The scheme, launched in 2021-22 with a budgetary outlay of Rs 10,900 crore, is set to conclude this fiscal year. It has added 3.4 million tonnes per annum of processing capacity and created 3,29,000 jobs, the Ministry of Food Processing Industries said. However, Joint Secretary D Praveen had earlier this month said, ''Currently, there is nothing on the table. Evaluation is being conducted. There is no proposal, and there is no demand from the industry.'' Sales of products covered under the PLI scheme grew at a compound annual growth rate (CAGR) of 10.58 per cent against a 2019-20 baseline, while export sales rose at 7.41 per cent CAGR, the ministry official said, describing the figures as resilient given difficult global conditions. On allowing the sale of analogue paneer with proper labelling, the minister said the matter comes under allied ministries, and guidelines are being finalised. ''One thing is clear - the consumers, through labelling, should know what they are consuming,'' he said. Addressing the event, Paswan said India has not tapped the food processing sector enough, either domestically or globally, and called on the industry to expand manifold. ''We will be able to fully justify FTAs (free trade agreements) if we grow and tap the potential of this sector,'' he said, adding that the diversity of Indian food can be taken to every corner of the world. The minister said several Indian brands had made their presence felt globally through the PLI scheme, but stressed there was room for further growth. Paswan urged the industry not to compromise on quality, saying he felt embarrassed when Indian consignments were rejected at international ports. ''I want Indian standards to be recognised globally. For that, we have to make extra effort and put in place stringent norms. If we compromise on quality, we cannot benefit from FTAs,'' he said. The minister also called for setting up processing units in rural areas, saying backward linkages were key, and urged the industry to launch a nationwide campaign to counter the narrative that processed food is bad. ''Food safety brings a sense of security. The industry should associate with radiation centres. The government is also planning to set up more food testing labs,'' he said.

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