Parag Milk Foods Limited, an Indian enterprise that manufactures, markets and sells milk and milk products is the latest beneficiary of the Production linked Incentive Scheme (PLI).
The dairy products producing company recently received approval under the Government’s PLI Scheme to make mozzarella cheese.
In 1992, Parag Milk Foods began as a 20,000-litre-capacity dairy in Manchar. It focused on a specialised market, producing skimmed milk powder, and by 2004 had become India's largest skimmed milk powder exporter. However, the firm was confronted with a dilemma when the Indian government restricted the export of milk powder due to a local milk scarcity. Following that, in 2008, the firm began investing in cheese production.
In a recent stock exchange filing the company said that “We are pleased to announce the application of Parag Milk Foods Ltd, through the PLI application dated June 15, 2021, has been approved by the Competent Authority for sales-based incentive for mozzarella cheese product for the period 2021- 27 subject to the condition of fulfilment of all the required criteria,”
On March 31, 2021, the Cabinet authorised the PLI programme for the food processing industry, which would be executed from 2021-22 to 2026-27 with a budget of Rs 10,900 crore. The plan is primarily for Indian enterprises and subsidiaries of multinational corporations (MNCs) operating in India with a minimum of food goods made in India.
Although it was launched primarily for the mobile manufacturing industry it was later allowed in 10 other sectors for the limited duration of 5 years. The main objective behind this scheme is to stop India’s reliance on other country’s especially China and to make this country more self-sustainable, while also promoting foreign trade.
Listed below are some of the other objectives of the Scheme specific for the Food processing industry:
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To encourage the establishment of strong Indian brands and support food manufacturing entities with defined minimum sales and be willing to make the minimum stated investment for the growth of processing capacity and branding abroad.
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Help Indian food product brands to have global visibility and wider acceptance in the international markets.
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Ensure remunerative agricultural produce pricing and increased revenue for farmers.
