India approves PLI scheme worth ₹10,900 crore in the food processing industry – FMCG stocks celebrate the news

• India’s Union Cabinet today approved the production linked incentive scheme for the food processing industry.
• Minister of Consumer Affairs, Food and Public Distribution Piyush Goyal announced the same and said that the scheme would have an outlay of ₹10,900 crore.
• The development came as good news for food processing and cheese manufacturing companies, who saw a jump in their share prices.

India’s Union Cabinet today approved the production linked incentive (PLI) scheme for the food processing industry. In a press briefing, Piyush Goyal, minister of consumer affairs, food and public distribution announced the same and said that the scheme would have an outlay of ₹10,900 crore.

“This will benefit farmers; this is a fitting tribute to 'Annadatas' (food providers), who despite COVID times, have ensured growth of around 3.5% in the agricultural sector,” said Goyal.

The development came as good news for food processing and cheese manufacturing companies, which saw a jump in their share prices.

PLI scheme will build brand India

Earlier this month, Prime Minister Narendra Modi had said that the PLI schemes are aimed at increasing domestic manufacturing and exports, which will further boost the country's production by $520 billion in the next five years.

Goyal, too, stressed that the Make in India initiative will get a boost with the PLI scheme in the food processing sector.

“Decision taken to ensure remunerative prices to increase and build India brand in food processing, increasing employment potential and making it (a) global and manufacturing champion,” Union Minister Prakash Javadekar, said in the press conference.