Archive · 31 Dec 2025
Government Considers Extending Food Processing PLI Scheme
The Indian government is thinking about extending a special program called the PLI scheme for food processing companies.
This program gives money to companies to help them grow and make better products.
The program started in 2021 and is supposed to end in 2027.
But many companies are having a hard time meeting the goals set by the program, so the government wants to make some changes.
They might make the rules easier to follow and give companies more time to use the money.
Some companies say the rules are too strict and that it's hard to get the right supplies.
The government wants to make sure the program helps as many companies as possible.
The government is considering extending the PLI scheme for food processing beyond 2026-27 due to underutilisation of funds and companies struggling to meet targets.
As of February 2025, 171 companies have been approved under the scheme, with only Rs 1,155 crore disbursed out of Rs 10,900 crore allocated.
Industry participants have sought a review of the scheme's parameters, citing slower demand and execution delays as challenges.
Officials warn that close to Rs 6,000 crore of the allocated funds could remain unused unless the scheme is adjusted.
Companies point to tight compliance conditions, supply chain disruptions, and domestic sourcing requirements as key constraints.
- Who
- Indian government, food processing companies, industry participants
- What
- Consideration of extending and recalibrating the PLI scheme for food processing
- When
- Current scheme runs from 2021-22 to 2026-27, with final year approaching
- Where
- India
- Why
- To improve utilisation of funds and align the scheme with industry realities, as many companies are struggling to meet targets
Government/Industry Participants
Companies
Scheme Extension and Recalibration
Government/Industry Participants
The government is considering extending the PLI scheme for food processing beyond 2026-27 and recalibrating its parameters to improve fund utilization and align with industry realities.
Companies
Companies are seeking a review of the scheme's parameters, citing slower demand, execution delays, and strict compliance conditions as challenges.
Fund Utilization
Government/Industry Participants
Officials warn that close to Rs 6,000 crore of the allocated funds could remain unused unless the scheme is adjusted.
Companies
Companies point to tight compliance conditions, supply chain disruptions, and domestic sourcing requirements as key constraints.
- Scheme Duration
- 2021-22 to 2026-27
- Total Allocated Funds
- Rs 10,900 crore
- Disbursed Incentives
- Rs 1,155 crore
- Approved Companies
- 171
- Disbursements to MSMEs
- Rs 13.27 crore across 20 cases
- Potential Unused Funds
- Close to Rs 6,000 crore
- Key Participants
- Hindustan Unilever, ITC, Nestle India, Britannia Industries, Dabur India, Bikaji Foods, Balaji Wafers, MTR Foods, Parag Milk Foods, Avanti Frozen Foods, Nekkanti Sea Foods
Sources
Food processing PLI may be extended
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