MoFPI opens consultation on next phase of PLI scheme for food processing sector

The Ministry of Food Processing Industries held stakeholder talks to design the next PLI phase covering RTE/RTC foods, dairy, beverages and spices. Industry seeks flexible, outcome-based incentives after the first scheme drew ₹9,207 crore investment across 212 locations in 22 states, with FY26 sales at ₹1,08,854 crore.

— Source publishedWed, 8 Jul, 2026, 20:21 IST·First seen Wed, 8 Jul, 2026, 20:28 IST·Source The Hindu BusinessLine

What happened

Ministry of Food Processing Industries · MoFPI held stakeholder consultation to design the next phase of PLI incentives for food processing, covering RTE/RTC

Key facts

  • ₹9,207 crore investment
  • 212 locations
  • 22 States
  • ₹1,08,854 crore FY26 sales
  • 10.82% CAGR
  • ₹20,840 crore exports
  • 11.05% export CAGR

Why this matters

The consultation window is the moment to shape flexible, outcome-based incentive terms and scout M&A or JV targets across the expanded categories before eligibility rules harden.

What to watch

  • Draft scheme guidelines / cabinet note on PLI phase-2 outlay
  • Notified eligibility thresholds and incentive slabs
  • Total budget allocation vs the prior scheme's ~₹10,900 cr
  • Sub-sector coverage list (dairy/beverages/spices inclusion)
  • Timeline for application window opening
  • Large listed processors (Nestle India, Britannia, ITC, Dodla, Hatsun) file detailed submissions seeking milestone-linked incentive structures
  • Industry bodies (CII, FICCI, AIFPA) push for MSME inclusion and lower investment floors
  • Companies pre-position capex plans in RTE/RTC and dairy to qualify early
  • Export-focused spice and processed-food firms lobby for enhanced export-linked tranches

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