Food Processing Ministry Hosts Consultation to Shape Next Phase of Incentive Scheme
The Ministry of Food Processing Industries (MoFPI) conducted a high-level Stakeholder Consultation aimed at shaping the future roadmap for fiscal support within the food processing sector. This meeting focused on designing the next phase of incentive and subsidy schemes, reinforcing the government’s commitment to an evidence-based and industry-driven framework. Avinash Joshi, Secretary of MoFPI, emphasized the importance of strengthening domestic manufacturing, enhancing global competitiveness, and promoting innovation to maximize benefits for farmers, MSMEs, and agri-value chains. Early successes of the Production-Linked Incentive (PLI) scheme were highlighted, noting that companies have exceeded initial investment commitments by 20%, totaling over ₹9,207 crore across 22 states, a positive indicator of sectoral growth.
This initiative suggests a proactive stance by the government to stimulate growth in the food processing sector, directly impacting the common citizen through job creation and enhanced availability of processed food products. With projected sales increasing from ₹58,758 crore in FY 2019-20 to ₹1,08,854 crore by FY 2025-26, and exports expected to reach ₹20,840 crore, consumers can anticipate greater product variety and potentially lower prices due to increased competition. The industry’s emphasis on flexible and outcome-oriented incentives is likely to attract investments that would further drive innovation and quality in food processing, thereby benefiting end consumers.
Looking forward, the government is expected to focus on integrating suggestions from industry stakeholders, potentially broadening the incentive schemes to include emerging food categories and creating differentiated structures based on specific objectives like export enhancement and research. By establishing a competitive innovation ecosystem through dedicated research infrastructure and export promotion initiatives, the government aims to foster a sustainable growth trajectory for the food processing sector. The emphasis on backward integration for critical raw materials and indigenous ingredient development will also play a crucial role in minimizing import dependencies and strengthening local supply chains, setting the stage for a robust future in this vital industry.
Source: The Hindu
(Expert Note: This report was independently prepared by the Wealthova Economy team.)