Production Linked Incentive Scheme for Millet Based Products
By Ministry of Food Processing Industries (MoFPI)
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Quick Answer
A central government scheme offering financial incentives to food processing companies for increasing the production and sales of value-added millet-based products in India and for export.
- Funding amount
- ₹40 Cr – ₹100 Cr
- Funding type
- Subsidy
- Application deadline
- Rolling
- Location
- Open to startups registered in India
About this subsidy
The Production Linked Incentive Scheme for Millet-Based Products (PLISMBP) is a flagship initiative launched by the Ministry of Food Processing Industries (MoFPI), Government of India. The primary objective of this scheme is to significantly enhance the utilization of millets in food products and to drive their value addition across the food processing sector. Millets, often referred to as 'nutri-cereals,' are gaining prominence for their health benefits and resilience to climate change, making this scheme crucial for promoting their integration into mainstream diets and markets.
The scheme aims to achieve its goals by incentivizing the manufacture of selected millet-based products and their subsequent sale in both domestic and international markets. This strategic support is designed to boost the competitiveness of Indian millet-based products globally and to establish India as a hub for millet processing. The PLISMBP covers a comprehensive tenure of five years, specifically from the Financial Year 2022-23 to FY 2026-27, backed by a substantial total outlay of ₹800 crore.
Implementation of the scheme is managed by the Ministry of Food Processing Industries, with IFCI Limited currently serving as the designated Project Management Agency (PMA). The incentive structure is linked directly to incremental sales over a predefined base year (FY 2020-21 for initial claims) and is contingent upon achieving minimum specified growth rates. This performance-linked approach ensures that public funds are utilized effectively to drive tangible market expansion. A key requirement for eligibility is that products must contain more than 15% millet content and must be entirely manufactured within India, promoting domestic value chains. Applicant selection involves a rigorous evaluation process and a ranking system to identify high-potential businesses.
Eligibility
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Subsidy providers
The Ministry of Food Processing Industries (MoFPI), established in 1988, is the Government of India's nodal ministry for developing the food-processing sector — a major employment and value-addition engine linking agriculture to industry and consumers. Headquartered in New…
Learn moreBenefits & Funding
- Amount
- ₹40 Cr – ₹100 Cr
What You Get
This scheme offers a significant financial incentive on incremental sales of eligible millet-based food products, designed to bolster growth and market penetration. The incentive is meticulously calculated as 'Incremental Sales × Applicable Rate of Incentive,' ensuring that businesses are rewarded directly for their expansion efforts. For the initial years of the scheme, the incentive rate is set at a generous 10%, which then adjusts to 8% in later years, providing sustained support. Large entities can avail incentives up to an impressive ₹100 crore (₹1,000,000,000) over the scheme's duration, while MSMEs can receive up to ₹40 crore (₹400,000,000). This tiered incentive structure caters to businesses of different scales, promoting inclusive growth.
Beyond the direct financial benefit, the scheme provides clear guidelines on eligible products, focusing on packaged and branded Ready-to-Cook (RTC) / Ready-to-Eat (RTE) items that must contain more than 15% millet content. This encourages product innovation and standardization. Disbursements are made efficiently via Direct Bank Transfer through PFMS, typically within 60 days of submitting complete claim documents. The scheme also provides an implicit form of regulatory support and market access by aligning with national food processing policies, helping companies navigate the market with a government-backed advantage.
- Disbursement
- Milestone Based
- Duration
- 61 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The selection of applicants for the Production Linked Incentive Scheme for Millet Based Products is a multi-stage process designed to identify businesses with strong potential for growth and value addition in the millet sector. Applications are initially screened by the Project Management Agency (PMA), currently IFCI Limited, which conducts a prima facie examination within 15 working days to check for completeness and basic eligibility. This is followed by a comprehensive evaluation conducted by the PMA, where applications are assessed against predefined evaluation criteria and a ranking system. These criteria typically include the business plan, projected incremental sales, commitment to millet content, manufacturing capabilities, and financial viability. Based on this thorough evaluation, the PMA prepares recommendations which are then forwarded to the Ministry of Food Processing Industries for final approval. The Ministry holds the ultimate authority to approve applications, aiming to do so within 90 days from the closure of the application window, subject to all documentation being complete and satisfactory. Successful applicants receive an approval letter from the PMA.
Application Process
- 1
EOI Release
Ministry of Food Processing Industries releases the Expression of Interest (EOI) for millet-based products.
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How to apply
Four steps from draft to disbursement — one action each.
- 1
Submit on the official portal
Use the official application link and verify all details before final submission.
- 2
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
What is the primary objective of the PLI Scheme for Millet Based Products?
The scheme aims to increase the usage of millets in food products, promote their value addition, and incentivize the manufacture and sale of selected millet-based products in domestic and export markets.
Who is eligible to apply for this scheme?
Applicants engaged in or intending to manufacture eligible packaged and branded Ready-to-Cook (RTC) / Ready-to-Eat (RTE) millet-based products in India are eligible. This includes both MSMEs (requiring Udyam Registration) and large entities, provided they meet specific sales growth and financial health criteria.
What kind of financial incentive is offered?
The scheme offers an incentive on incremental sales of eligible products. The incentive rate is initially 10% and later reduces to 8%. Large Entities can receive up to ₹100 crore, and MSMEs up to ₹40 crore, over the scheme period.
What are the key product requirements for eligibility?
Eligible products must be packaged and branded Ready-to-Cook (RTC) or Ready-to-Eat (RTE) food products. They must contain more than 15% millet content by weight/volume, and the entire manufacturing process must occur in India.
Is there a minimum sales growth required to receive the incentive?
Yes, applicants are required to achieve a minimum Compound Annual Growth Rate (CAGR) of 10% on sales of eligible products from a defined base year. Failure to meet this growth rate for a particular year will result in no incentive being payable for that year.
How is the application processed and approved?
Applications are submitted online after the release of an Expression of Interest (EOI). The Project Management Agency (PMA) conducts a prima facie examination and evaluation, then forwards recommendations to MoFPI for final approval. The Ministry aims to approve applications within 90 days from the application window closure.
Sources
Data on this page is compiled from official program and provider references.
