Production Linked Incentive (PLI) Scheme for Food Processing Industry supports the creation of global food manufacturing champions, promotes Indian brands, increases off-farm employment, and ensures higher farm income. It carries a total outlay of ₹10,900 crore and runs for six years from 2021-22 to 2026-27.
Ministry of Food Processing Industries runs the scheme through the official portal. Incentive claim filing for the financial year 2025-26 is open now and will close on 31 December 2026 at 5:00 PM. Millet incentive claim filing for 2025-26 closes on 30 November 2026.
Production Linked Incentive (PLI) Scheme for Food Processing Industry - Introduction
The scheme encourages manufacturing in four main segments: Ready-to-Cook (RTC) and Ready-to-Eat (RTE) foods including millet-based items, Processed Fruits and Vegetables, Marine Products, and Mozzarella Cheese. It also supports innovative and organic products made by small and medium enterprises, and provides grants for branding and marketing of Indian food brands in international markets.
As per the latest 2026 update, 128 companies have been approved under the scheme, covering 274 units across the country. This includes strong participation from the MSME sector, with 68 MSME applicants and 40 contract manufacturing units being supported.
Against a committed investment of ₹7,722 crore, a cumulative investment of ₹9,207 crore has already been made under the scheme in 22 states. Around 34 lakh metric tonnes of processing and preservation capacity has been added, and the scheme has generated employment for about 3.29 lakh persons including direct and indirect jobs.
Key Information
| Scheme Name | Production Linked Incentive (PLI) Scheme for Food Processing Industry |
|---|---|
| Nodal Ministry | Ministry of Food Processing Industries |
| Tenure | Six years (2021-22 to 2026-27) |
| Beneficiary States | All India |
| Total Outlay | ₹10,900 crore |
| Budget 2026 Allocation | ₹1,200 crore |
| Incentive Type | Performance-linked subsidies and marketing support |
| Incentive Claim Deadline | 31 December 2026 for FY 2025-26 |
| Application Portal | PLI Food Processing Official Portal |
Benefits
The scheme offers two main types of support for food manufacturing entities:
- Investment Incentives: Performance-based incentives on incremental sales, with applicable rates ranging from 4% to 10% depending on the segment, payable upon meeting the minimum Compound Annual Growth Rate (CAGR).
- Branding and Marketing: Reimbursement of 50% of expenses for promoting Indian brands in international markets, capped at 3% of total sales or ₹50,00,00,000 per year, whichever is lower. This requires a minimum investment of ₹5,00,00,000 over five years in branding.
Eligibility
To qualify for the scheme, applicants must meet the following general criteria:
- Applicants must be engaged in the food manufacturing business within India.
- Must meet specific sales and minimum investment criteria based on the chosen category, with separate rules for large entities and SMEs.
- The business must not be declared bankrupt, a wilful defaulter, or included in the SEBI debarred list.
- The entire manufacturing chain, excluding specific additives or oils, must occur within India.
- Applicants must apply for specific segments and meet the minimum investment requirements as defined in the official EOI guidelines.
Application Process
Eligible applicants must follow these steps to secure benefits:
STEP 1 - Visit the official portal at PLI Food Processing Official Portal when an Expression of Interest (EOI) is active, and register using the PAN as the user ID.
STEP 2 - Prepare the application as per the annexures and upload all required documents.
STEP 3 - Pay the non-refundable application fee of ₹1,00,000 for Category I, ₹10,000 for Category II, or ₹10,000 to ₹50,000 for Category III.
STEP 4 - The Project Management Agency (PMA) reviews the application within 15 working days. Rectify any identified deficiencies within 10 days.
STEP 5 - Upon approval, participants receive an approval letter and must submit a performance bank guarantee of 3% of the committed investment within 2 weeks.
STEP 6 - File the incentive claim for the relevant financial year on the portal before the closing date, which for FY 2025-26 is 31 December 2026.
Documents
Applicants generally require the following documents:
- Completed Application Form (Annexure 1).
- Undertaking for Audit of Manufacturing Sites (Annexure 7).
- Certified Financial Statements and Sales Data.
- Chartered Accountant or Engineer certificates for verification of investments and sales.
- Registration and incorporation documents such as MOA or partnership deed.
- Proof of committed investment and bank details.
References
- Scheme Guidelines
- Detailed EOI
- Scheme and Guidelines on Official Website
- Ministry of Food Processing Industries Scheme Page
- PIB Press Release on PLISFPI
FAQ's
What is the incentive payment timeline?
The incentive earned for a particular year is processed and paid during the following financial year.
Are there specific SME benefits?
Yes, Category II specifically incentivizes innovative and organic food products manufactured by SMEs.
Can an applicant apply for multiple segments?
Yes, but the applicant must submit separate applications for each segment and satisfy all criteria, including investment and sales, for each application individually.
What if my application is rejected?
The system allows a correction period of 10 working days if the PMA finds an application incomplete during the initial 15-day review phase. If it is not corrected within this timeframe, it will be rejected.
When is the last date to file the incentive claim?
Incentive claim filing for the financial year 2025-26 is open and will close at 5:00 PM on 31 December 2026. Millet incentive claim filing closes on 30 November 2026.