PBFIA Meets Union Minister Chirag Paswan to Explore Growth Prospects for the Plant-Based Foods Sector

Plant-Based Foods Industry Association (PBFIA) on Wednesday, 20th November 2024 held a significant meeting with Chirag Paswan, Union Minister of Food Processing Industries, to discuss the growth potential of the plant-based foods sector in contributing to nutrition security, economic development, and establishing India as a global leader in sustainable food systems.

During the meeting, discussions centered on harnessing India’s robust agricultural foundation, supported by national initiatives such as the National Mission on Edible Oils – Oilseeds, Shree Ann Mission, Startup India, Net Zero by 2070, and Mission LiFE agendas. Despite India’s surplus production of soybeans, millets, and pulses, the absence of adequate domestic processing units for plant protein extraction was highlighted as a key challenge, resulting in reliance on imports.

The Minister expressed strong support for the sector and assured the delegation that the Ministry of Food Processing Industries recognises the plant-based foods sector as a priority. He confirmed that the government is actively working on developing favourable schemes and policies to support the growth of the sector. The Minister also extended support to take PBFIA’s representation of reducing GST rates for plant-based products with the Honourable Finance Minister, further emphasising that Prime Minister Narendra Modi considers the plant-based foods sector crucial.

Protein deficiency continues to be a critical health concern in India. While the demand for animal-based protein is increasing, it is also resource-intensive and may not be the most sustainable option for the future. It is well understood that the livestock sector has high land and water usage, contributing significantly to greenhouse gas emissions.

In contrast, plant-based foods offer a more sustainable alternative, with benefits for health, the environment, and socio-economic growth. By shifting focus to plant-based protein sources, India could help address its protein gap while reducing the environmental impact on its food systems. The expansion of this sector also presents an opportunity for India to export plant protein, generate employment, and support farmers, all while contributing to global food sustainability efforts.

During the discussions, PBFIA presented several key proposals aimed at accelerating the growth of the sector. These included the creation of plant protein clusters, reducing GST rates for plant-based products with those for traditional food sectors, providing financial support for processing units, and investing in centre of excellence.

The association also recommended lowering import tariffs on machinery essential for plant protein extraction, creating specific HSN codes for alternative protein products, and allowing plant-based beverages to use terminology like “milk” with clear source identifiers, such as soy milk or almond milk. Additionally, the association proposed the establishment of entrepreneurial accelerator programs to foster innovation within the sector.

Paswan acknowledged the importance of these proposals and complimented PBFIA of the commitment to collaborating with the industry to position India as a global leader. The discussions reinforced a shared commitment to advancing India’s leadership in sustainable food innovation. The meeting concluded with PBFIA presenting Paswan with a curated hamper of plant-based products, showcasing the sector’s innovation.