India Boosts Millets with Production Linked Incentive Scheme

India's government launched the Production Linked Incentive Scheme for Millet-Based Products with a Rs800 crore investment to promote millets in food production. Targeting sales growth, the initiative encourages local sourcing, benefiting farmers while overcoming initial challenges to enhance the millet market landscape through strategic facilitation efforts.

The Government of India has announced a strategic initiative aimed at transforming the millet market through the Production Linked Incentive Scheme for Millet-Based Products (PLISMBP). Launched for FY 2022-2023 to FY 2026-2027, this scheme allocates Rs800 crore to drive innovation in millet-based food production, supporting both farmers and processors.

A significant modification within the scheme is the removal of the threshold investment requirement, allowing broader participation. Companies must demonstrate a minimum 10 percent growth in sales over their base year to avail incentives. The scheme specifically targets branded Ready-to-Eat (RTE) and Ready-to-Cook (RTC) consumer products, mandating they contain at least 15 percent millet by weight or volume.

Initially, 30 beneficiaries joined the scheme, with 29 remaining after one withdrawal. The focus on sourcing agricultural products domestically, excluding additives, flavors, and oils, for millet-based foods has notably boosted local production and procurement, greatly benefiting Indian farmers. The first year saw 19 participants file claims, resulting in Rs3.917 crore disbursed.

To enhance the scheme's implementation, the government has introduced measures such as a user-friendly portal and dedicated support groups for issue resolution. Regular monitoring, technical assistance, and weekly progress meetings ensure smooth implementation, as confirmed by Union Minister Ravneet Singh Bhittu in a Rajya Sabha session.

(With inputs from agencies.)