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Food sector incentive gets Cabinet nod

Topics Covered: Issues related to direct and indirect farm subsidies and minimum support prices; Public Distribution System objectives, functioning, limitations, revamping; issues of buffer stocks and food security.

Food sector incentive gets Cabinet nod:


The Union Cabinet has approved a production-linked incentive scheme for the food processing industry with an outlay of ₹10,900 crore.

Objectives of the scheme:

  1. Support creation of global food manufacturing champions.
  2. Strengthen select Indian brand of food products for global visibility and wider acceptance in the international markets.
  3. Increase employment opportunities of off-farm jobs.
  4. Ensure remunerative prices of farm produce and higher income to farmers.


  • The scheme would cover ready-to-cook and ready-to-eat foods, processed fruits and vegetables, marine products and mozzarella cheese, organic products, free-range eggs, poultry meat and egg products.
  • The applicants selected for the scheme would be required to invest in plant and machinery in the first two years.


In all, 13 PLI schemes are being rolled out, including those for automobiles, pharmaceuticals, IT hardware including laptops, mobile phones & telecom equipment, white goods, chemical cells and textiles.


Prelims Link:

  1. Production linked incentive scheme- when was it announced?
  2. Incentives under the scheme is available to?
  3. What kind of investments will be considered?
  4. Duration of the scheme.
  5. Who will implement it?

Mains Link:

What is the production linked incentive scheme for electronics manufacturers? Discuss.

Sources: the Hindu.