This scheme encourages the use and value addition of millets by providing financial incentives to manufacturers on Read More... their increased sales of eligible millet-based food products. Read less
Details
The Indian government is actively promoting millets, and this scheme is a big step towards that. The Production Linked Incentive Scheme for Millet-Based Products (PLISMBP) is designed to give a significant boost to businesses that are either making or planning to make food products with millets.
Launched by the Ministry of Food Processing Industries, this scheme is all about encouraging the production and sale of millet-based food items. It works by giving you financial incentives, essentially a reward, based on how much your sales of these special millet products grow over time. The goal is to make millets a popular choice in our food and create more value from them.
This scheme is for businesses involved in making or wanting to make packaged and branded ready-to-cook (RTC) or ready-to-eat (RTE) food products that contain a good amount of millets.
By incentivising the manufacture and sale of millet-based products, the scheme aims to increase millet consumption, support farmers, promote value-added products, and enhance exports. It's a win-win for businesses and the wider adoption of nutritious millets across India.
Objective
Benefits
Sources and references
The official portal for applications and more details is usually managed by the Project Management Agency (PMA), IFCI Limited. You can find more information and links on the official Ministry of Food Processing Industries website.
What is the main aim of this scheme?
The primary goal is to boost the use of millets in food products and encourage value addition. It does this by giving financial incentives to manufacturers for increasing their sales of eligible millet-based foods.
Who is eligible to apply for this scheme?
Businesses like proprietorships, partnership firms, LLPs, companies registered in India, cooperatives, and MSMEs that manufacture or intend to manufacture eligible millet-based food products can apply.
What kind of products are covered by this incentive scheme?
The scheme covers packaged and branded Ready-to-Cook (RTC) and Ready-to-Eat (RTE) food products that are made from millets. A key condition is that the product must contain over 15% millet content by weight or volume.
Are there any specific millet products that are not included?
Yes, basic processed millet items like de-husked grains, polished grains, and simple millet flour (atta) are excluded from this scheme.
For how long will this scheme be active?
The Production Linked Incentive Scheme for Millet-Based Products is set to run for a period of 5 years, starting from the financial year 2022-23 and concluding in FY 2026-27.
How is the financial incentive calculated?
The incentive is calculated based on the increase in your sales of eligible millet products compared to a defined base year. The formula is: Incremental Sales multiplied by the applicable Incentive Rate.
Is there a minimum sales growth required to get the incentive?
Absolutely. You need to achieve a minimum Compound Annual Growth Rate (CAGR) of 10% on the sales of your eligible products. If this growth target isn't met in any year, you won't receive an incentive for that specific year.
What is the minimum proportion of millets required in the products?
For a product to be considered eligible, it must contain more than 15% millet content. This is measured either by weight or by volume.
What is the process to apply for this scheme?
You can apply online through the official portal designated for the scheme once the Expression of Interest (EOI) is released. You will need to fill out the application form and upload necessary documents.
Is there a fee to apply for this scheme?
Yes, an application fee is required. Large Entities need to pay ₹1,00,000/-, while MSMEs need to pay ₹10,000/-. This fee is payable online.
Can I apply as both an MSME and a Large Entity?
No, you can only choose to apply under one category – either as an MSME or as a Large Entity. You cannot apply under both.
How are applications chosen for the scheme?
Applications are carefully evaluated based on a set of defined criteria and then ranked. The selection process follows this ranking, with applicants chosen in descending order of their marks.
How will I receive the incentive money?
The incentive amount will be directly transferred to your bank account. This disbursement is done electronically through the Public Financial Management System (PFMS).