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Daily Category  (Food Processing )

Production Linked Incentive Scheme for the Food Processing Industry

CONTEXT:

  • The Ministry of Food Processing Industries (MoFPI has launched an online portal for ‘Production Linked Incentive Scheme for Food Processing Industry’(PLISFPI).

Production Linked Incentives (PLI): Will the government's initiative really  reap benefits? - The Indian Wire

Production Linked Incentive Scheme for Food Processing Industry:

  • Central Sector Scheme: Government of India has approved a new Central Sector Scheme namely ‘Production Linked Incentive Scheme for Food Processing Industry’.

  • Implementation Period: During 2021-22 to 2026-27

  • Funding: Outlay of Rs. 10,900 crores

  • Objective: To support creation of global food manufacturing champions commensurate with India's natural resource endowment and support Indian brands of food products in the international markets.

  • Eligible Applicant: (i) Proprietary Firm or Partnership Firm or Limited Liability Partnership (LLP) or a Company registered in India (ii) Co-operatives; and (iii) SME and making an application for seeking approval for coverage under the Scheme.

  • Sales based incentive under the scheme would be paid for six years from 2021-22 to 2026-27 on incremental sales over the base year.

  • Base Year for calculation of Incremental sales would be 2019-20 for the first 4 years.

    • For 5th & 6th years, the base year would be 2021-22 & 2022-23 respectively.

Three categories of Applicants:

  • Incentives and grants: Ministry of Food Processing Industries is inviting applications for availing sales based incentives and grants for undertaking Branding & Marketing activities abroad under the scheme from three categories of Applicants:

    1. Category-I: Applicants are large entities who apply for Incentive based on Sales and Investment Criteria.

      • Applicant under this category could undertake Branding & Marketing activities abroad also and apply for grant under the scheme with a common application.

    2. Category-II: SMEs Applicants manufacturing innovative/ organic products who apply for PLI Incentive based on Sales.

    3. Category-III: Applicants applying solely for grant for undertaking Branding & Marketing activities abroad.

PRODUCTION LINKED INCENTIVE (PLI) SCHEME:

PLI:

  • It was launched in March 2020 by the central government in order to

    • Boost domestic manufacturing and

    • Cut down on import bill.

Objectives:

  • To give companies incentives on incremental sales from products manufactured in domestic units.

  • To encourage local companies to set up or expand existing manufacturing units and inviting foreign companies to set shop in India.

Significance of PLI Scheme:

  • The idea of PLI is important as the government cannot continue making investments in these capital-intensive sectors as they need longer times to start giving the returns.

  • The electronics and pharmaceuticals themselves are large sectors and if the government can focus on labor-intensive Sectors like garments and leather, it would be really helpful.

SOURCE: PIB

Food and Agri Produce Wastage

CONTEXT:

The agitation by India’s farmers on Delhi’s borders has completed one month and the sixth round of talks two days ago may have provided a window of reconciliation.

However, the more contentious issue of stills remains on the table like

  • Repeal of the three farm laws and
  • Legal guarantee for minimum support price (MSP)

           World Food Day: The fight against food waste | Food News | Al Jazeera

BACKGROUND:

A significant quantity of the wheat and rice procured by the Indian government under minimum support price (MSP) operations is wasted, either due to rotting or being eaten by mice and other vermin.

The broader issue – just how much of India’s agricultural production is lost to waste due to a lack of appropriate infrastructure?

FOOD AND AGRI PRODUCE WASTAGE:

This question involves two aspects.

  1. The first relates to losses in the food supply chain and
  2. The second relates to losses in government warehouses storing wheat and rice.

Food Loss and Food Wastage: Generally speaking, ‘food loss’ takes place from the farm up to the retail-level, while the term ‘food wastage’ is used for loss of food at the retail, food service, and household level.

1. AGRI-LOSSES:

1.1 Parliamentary standing committee of the ministry of agriculture in 2005 had recommended ICAR to conduct two detailed studies of agri-losses.

1.2 It was based on production data of 43 crops and livestock produce in 2012-13 and wholesale prices of 2014. The study was conducted in 120 districts in 14 agro-climatic zones and the report was published in 2015.

1.3 The losses in the storage channel included

  • Storage at farm level
  • Godown/cold storage,
  • Wholesaler,