NEW FOOD PROCESSING SUBSIDIES ANNOUNCED BY INDIAN GOVERNMENT
The Indian government is introducing subsidies that it hopes will generate hundreds of thousands of jobs in the country’s food processing sector.
To run until the 2026-27 financial year, the production linked incentive (PLI) scheme involves grants designed to stimulate domestic and foreign investment in the sector.
Senior industry figures have said the programme will help increase farmer incomes – a significant political issue in the nation of 1.4 billion people – while making it easier for Indian brands to grow globally. Up to 250,000 jobs could be created by 2026-27.
In a statement, the Indian government said the initial focus would be on promoting four major product areas, namely processed fruits and vegetables, mozzarella cheese, marine products and ready-to-cook or ready-to-eat products.
Officials also want to stimulate what they described as “innovative/organic products” from small and medium-sized sectors, including free-range eggs.
The scheme will be rolled out across India and fixed maximum payouts for beneficiaries will be set in advance.
“Achieving full potential of this sector would require Indian companies to improve their competitive strength vis-a-vis their global counterparts in terms of scale of output, productivity, value addition and their linkages with the global value chain,” a statement from the Indian government said.