{"id":54070,"date":"2019-11-15T13:12:23","date_gmt":"2019-11-15T07:42:23","guid":{"rendered":"https:\/\/blogadmin.forumias.com\/?page_id=54070"},"modified":"2019-11-15T13:12:32","modified_gmt":"2019-11-15T07:42:32","slug":"answered-elaborate-the-policy-taken-by-the-government-of-india-to-meet-the-challenges-of-the-food-processing-sector","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/answered-elaborate-the-policy-taken-by-the-government-of-india-to-meet-the-challenges-of-the-food-processing-sector\/","title":{"rendered":"[Answered] Elaborate the policy taken by the Government of India to meet the challenges of the food processing sector."},"content":{"rendered":"\n
Demand of the question<\/strong>
Introduction. <\/strong>Contextual Introduction.
Body. <\/strong>Discuss scope of food industries in India and various government initiatives for the same.
Conclusion. <\/strong>Way forward. <\/td><\/tr><\/tbody><\/table>\n\n\n\n

The food processing industry (FPI) is considered a sunrise sector that has gained prominence in recent years. The industry is of enormous significance because of the vital linkages and synergies that it promotes between the two pillars of our economy i.e. industry and agriculture. It has a lot of scope which can help in boosting economic growth and this has led Government to initiate many policy measures to boost food processing industries.<\/p>\n\n\n\n

Scope of food processing industry in\nIndia:<\/strong><\/p>\n\n\n\n

  1. As per an estimate, India\u2019s current food\nprocessing industry is estimated at USD 130 Billion and expected to attract\nhuge domestic and foreign investment. Some of the key factors which are likely\nto increase the demand for processed food and consequently the food processing\nindustry in the coming years are –<\/li>
  2. India is a country of over 1.25 billion\npopulation. With rising middle class having a considerable disposable income,\nthe domestic market offers 1.25 billion opportunities for the sector.<\/li>
  3. India ranks no 1 in the world in the production\nof milk, ghee, ginger, bananas, guavas, papayas and mangoes. Further, India\nranks no 2 in the world in the production of rice, wheat and several other\nvegetables & fruits. If the surplus production of cereals, fruits,\nvegetables, milk, fish, meat and poultry, etc are processed and marketed both\ninside and outside the country, there will be greater opportunities for the\ngrowth of the sector.<\/li>
  4. Due to rapid urbanization, food habits are\nchanging rapidly towards value-added foods. The change is accentuated by the\nfact that over 65% of India\u2019s population is 35 or under, who are inclined to\nhave processed food.<\/li>
  5. Next to China, India is among the fastest\ngrowing economies in the world. The recent quantum jump in the ease of doing\nbusiness ranking of the World Bank (from 130 to 100) indicates the conducive\nbusiness climate in the country and expected to attract foreign investment into\nthis sector.<\/li>
  6. As per an estimate, around 40 percent of total\nfood production is wasted due to the inadequate facilities for transportation,\nstorage, processing and marketing. If these deficiencies are addressed, there\nis a huge scope for the development of the sector.<\/li><\/ol>\n\n\n\n

    Government has initiated the following\nmeasures for the development of the food processing sector:<\/strong><\/p>\n\n\n\n

    1. Pradhan Mantri Kisan Sampada Yojana (PMKSY):<\/strong>\nIt is an umbrella scheme that incorporates various ongoing schemes like Mega\nFood Parks, Integrated Cold Chain, Value Addition Infrastructure, Food Safety\nand Quality Assurance Infrastructure, Infrastructure for Agro-processing\nClusters, Creation of Backward and Forward Linkages and Creation and Expansion\nof Food Processing and Preservation Capacities.<\/li>
    2. Mega Food Parks Scheme:<\/strong> It aims at\nproviding a mechanism to link agricultural production to the market by bringing\ntogether farmers, processors and retailers to maximise value addition, minimising\nwastage, increasing farmers\u2019 income and creating employment opportunities\nparticularly in the rural sector. A Mega Food Park entails an area of a minimum\nof 50 acres and works in a cluster based approach based on a hub and spokes\nmodel.<\/li>
    3. Scheme of Cold Chain, Value Addition and\nPreservation Infrastructure: <\/strong>The objective of the scheme is to provide\nintegrated cold chain and preservation infrastructure facilities, without any\nbreak, from the farm gate to the consumer. It covers pre-cooling facilities at\nproduction sites, reefer vans, mobile cooling units as well as value addition\ncentres.<\/li>
    4. Modernisation of Abattoirs scheme: <\/strong>The\nmain objective of the Scheme is a creation of processing and preservation\ncapacities and modernisation and expansion of existing food processing units\nwith a view to increasing the level of processing, value addition leading to\nreduction of wastage.<\/li>
    5. Make In India:<\/strong> As part of the Make In\nIndia campaign, food processing sector was identified as one of the 25 focus\nareas. Accordingly, the policy ecosystem has been revamped to attract\nfinancial, technological and human resources into the sector. Allowing 100% FDI\nthrough automatic route into this sector is also a significant step in this\ndirection.<\/li>
    6. Food Processing Fund: <\/strong>A special fund in\nthe NABARD worth Rs. 2,000 crore, designated as the Food Processing Fund, was\nset up in the FY 2014-15 for providing affordable credit to food processing\nunits in Mega & Designated Food Parks.<\/li><\/ol>\n\n\n\n

      As per an estimate, India\u2019s food\nconsumption is currently valued at USD 370 Billion and is expected to reach USD\n1 trillion by 2025. The development of food processing industry is necessary\ndue to the rise in the disposable income in the hands of middle class, changing\nfood habits and rapid urbanization, the changing dietary preferences towards\nthe processed and packaged food. Besides, a well-developed food processing\nsector with higher level of processing helps in the reduction of wastage,\nimproves value addition, promotes crop diversification, ensures a better return\nto the farmers, promotes employment as well as increase export earnings. This\nsector is also capable of addressing critical issues of food security, food\ninflation and providing wholesome, nutritious food to the masses.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

      Demand of the question Introduction. Contextual Introduction. Body. Discuss scope of food industries in India and various government initiatives for the same. Conclusion. Way forward. The food processing industry (FPI) is considered a sunrise sector that has gained prominence in recent years. The industry is of enormous significance because of the vital linkages and synergies… Continue reading [Answered] Elaborate the policy taken by the Government of India to meet the challenges of the food processing sector.<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":49132,"parent":0,"menu_order":0,"comment_status":"open","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-54070","page","type-page","status-publish","has-post-thumbnail","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/54070","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=54070"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/54070\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/49132"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=54070"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}