Millet-based products get a boost with a US$ 96 mn incentive Plan

The Government of India launched the Production Linked Incentive Scheme for Millet-Based Products (PLISMBP) to boost millet consumption and value addition. With an Rs 800 crore (US$ 96 million) budget over five years, the scheme incentivizes Ready-to-Eat and Ready-to-Cook products containing over 15% millet as using only domestically sourced ingredients benefits farmers and promotes local agriculture.

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The Government of India has launched the Production Linked Incentive Scheme for Millet-Based Products (PLISMBP) to promote the use of millets in food products and encourage value addition. With a budget of Rs 800 crore (US$ 96 million), the scheme spans five years and lasts till FY’27. Notably, it removes the threshold investment requirement, making it more accessible to businesses. To qualify for incentives, participating companies must achieve a minimum 10% annual growth in sales over their base year.

The scheme incentivizes the sales of branded Ready-to-Eat (RTE) and Ready-to-Cook (RTC) products that contain at least 15% millet by weight or volume in consumer packs. Initially, 30 beneficiaries were selected, but after one withdrawal, 29 participants remained. As per the guidelines, these products must be prepared using only domestically sourced agricultural produce (excluding additives, flavours, and oils). This provision has increased the demand for local farm products, offering significant benefits to farmers.

For the first performance year (FY 2022-2023), 19 applicants filed incentive claims in FY 2023-2024, with Rs 3.9 crore (US$ 470,000) already disbursed to eligible beneficiaries.

The government has implemented several measures to ensure the smooth execution of the scheme. These include the launch of a user-friendly portal, the formation of dedicated resolution groups, and the regular issuance of clarifications on guidelines. Weekly meetings with applicants have been instituted to track progress and resolve issues promptly. A robust monitoring and evaluation mechanism, supported by technical assistance from expert teams, ensures seamless operations. With these steps, the government aims to boost the millet industry while empowering local farmers and promoting healthier food options for consumers.