PLI Scheme for Food Processing Industry 2026: Financial Incentives, Eligibility & How to Apply

At a glance

About the scheme

The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) was rolled out by the Ministry of Food Processing Industries to build global food manufacturing champions in India. Running for six financial years from 2021-22 to 2026-27, the programme assists enterprises manufacturing Ready-to-Cook, Ready-to-Eat, marine, fruit, vegetable, and mozzarella cheese items, along with innovative products made by SMEs. Alongside production-based incentives on incremental sales, the scheme extends financial assistance to promote Indian food brands across global retail shelves.

Benefits

• Production-linked incentive calculated as Incremental Sales multiplied by the Applicable Rate of Incentive.
• Ready-to-Cook/Ready-to-Eat and Processed Fruits & Vegetables receive a 10% incentive in initial years, tapering to 8%.
• Marine Products receive 6% to 4% incentives, with 10% granted for value-added marine products.
• Mozzarella Cheese manufacturers receive incentives ranging from 10% down to 4%.
• Incentive is disbursed starting from the year of selection through the conclusion of the scheme period.
• Fifty per cent reimbursement of expenditure incurred on overseas branding and marketing activities.
• International branding support is capped at 3% of food product sales or ₹50,00,00,000 per year, whichever is lower.
• Coverage for innovative and organic food items manufactured by Small and Medium Enterprises (SMEs).

Who can apply (eligibility)

• Applicant must be engaged in manufacturing food products in India within the specified target segments.
• SME applicants must be involved in manufacturing innovative or organic food products.
• The applicant must exceed the minimum sales threshold in the base year as prescribed for their category.
• The applicant must commit to undertaking the mandatory minimum investment in plant, machinery, and associated infrastructure.
• The applicant must achieve the specified minimum Compound Annual Growth Rate (CAGR) in sales.
• The complete manufacturing process, including primary processing, must take place in India (excluding additives, flavours, and edible oils).
• Applicant must not be declared bankrupt, a wilful defaulter, or involved in financial fraud by any bank, NBFC, or financial institution.
• Neither the applicant entity nor its promoters may appear on the SEBI Debarred List.

Who cannot apply

• Entities declared bankrupt, defaulters, wilful defaulters, or reported as fraudulent by any financial institution.
• Companies or promoters appearing on the SEBI debarred list.
• Manufacturing processes carried out outside India, except for permissible inputs like flavours, additives, and edible oils.
• Applicants failing to meet the minimum base year sales or committed investment requirements.

Documents required

• Application Form in the prescribed format (Annexure-1)
• Signed undertaking consenting to the audit of manufacturing facilities and offices (Annexure-7)
• Details of proprietary and contract manufacturing sites
• Shareholding pattern documents
• Memorandum and Articles of Association, Partnership Deed, or Registration Certificate
• Annual financial statements and audit reports
• Base year and subsequent years sales data of eligible food items
• Proof and expenditure details of committed investment
• Chartered Accountant certificate validating sales claims
• Chartered Engineer certificate verifying investment expenditure
• Performance Bank Guarantee of 3% of committed investment (upon approval)
• Any additional documents mentioned in the Expression of Interest (EOI)

How to apply

1. 1Check the Expression of Interest (EOI) notification published by the Ministry of Food Processing Industries for open application dates.
2. 2Visit the official scheme portal at https://plimofpi.ifciltd.com to start the registration.
3. 3Fill in the application form online following the prescribed Annexure-1 format.
4. 4Enter all particulars of own manufacturing units and third-party contract manufacturer sites.
5. 5Upload mandatory documents including company registration records and the audit undertaking under Annexure-7.
6. 6Pay the non-refundable fee: ₹1,00,000 for Category-I, ₹10,000 for Category-II, or ₹10,000/₹50,000 for Category-III.
7. 7Submit the application and record the unique Application ID generated by the Project Management Agency (PMA).
8. 8Respond to any deficiency notices within 10 working days if informed by the PMA after preliminary screening.
9. 9Upon receipt of the formal approval letter, furnish a Performance Bank Guarantee of 3% of committed investment within 2 weeks.

Frequently asked questions