{"id":210766,"date":"2022-10-17T19:04:47","date_gmt":"2022-10-17T13:34:47","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=210766"},"modified":"2022-10-17T19:04:47","modified_gmt":"2022-10-17T13:34:47","slug":"about-food-processing-industry-food-growers-can-be-processors-too","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/about-food-processing-industry-food-growers-can-be-processors-too\/","title":{"rendered":"About food-processing industry: Food growers can be processors too"},"content":{"rendered":"\n

Source<\/b>: The post is based on the article <\/span>\u201cFood growers can be processors too\u201d<\/b> published in the <\/span>Business Standard <\/b>on <\/span>17<\/b>th<\/b> October 2022<\/b>.<\/span><\/p>\n

Syllabus<\/b>: GS 3 \u2013 Food Processing and Related Industries in India<\/span><\/p>\n

Relevance<\/b>: About the present state of India’s food-processing industry(FPIs)<\/span><\/p>\n

News<\/b>: The food-processing industry, despite impressive growth over the past few years, has failed to effectively serve its prime objectives of bolstering farmers\u2019 incomes and curtailing wastage of farm produce.<\/span><\/p>\n

About the present state of India’s food-processing industry(FPIs)<\/h5>\n

Given that India is among the world\u2019s top producers of many key farm commodities. The country ranks first in the production of milk; second in that of fruit, vegetables and fisheries; and third in eggs. It also produces a variety of health foods and therapeutically important herbs which can be processed into nutritious snacks and other kinds of high-value products for domestic and export markets.<\/p>\n

The gross value added (GVA) of the food-processing sector has surged from Rs 1.34 trillion in 2014-15 to Rs 2.37 trillion in 2020-21.<\/p>\n

What are the various initiatives taken by the government to improve the FPIs?<\/h5>\n

A favourable policy environment is said to have played a major role in the rapid expansion of this sector.<\/p>\n

-The government has allowed 100% foreign direct investment under the automatic route for manufacturing and retail trading, including e-commerce, of food products made in India.<\/p>\n

-Besides, it has extended the Production-Linked Incentive Scheme to this industry to impart further impetus to its growth.<\/p>\n

–Pradhan Mantri Kisan SAMPADA Yojana<\/a><\/strong><\/p>\n

–PM-Formalisation of Micro Food Processing Enterprises Scheme<\/a><\/strong><\/p>\n

What are the challenges associated with the present state of India’s food-processing industry?<\/h5>\n

a)<\/strong> The gains from the value-addition of agricultural products are accruing largely to the industry rather than the farmers, b)<\/strong> The post-harvest losses of farm output continue to be rather high \u2014 up to 40% in some perishable items. In monetary terms, these losses are assessed at Rs 60,000-80,000 crore annually, c)<\/strong> Hardly 10% of the farm harvest is subjected to some kind of value-enhancing treatment or processing and d)<\/strong> The obligation of processing units to procure raw material from markets operated by agricultural produce marketing committees (regulated mandis).<\/p>\n

What are the reasons for the present state of India’s food-processing industry?<\/h5>\n

This can be attributed to numerous reasons, such as a)<\/strong> Inept post-harvest handling, transportation, storage, and marketing the produce; b)<\/strong> A low level of on-farm processing to enhance the value and extend the shelf-life of the harvested stuff; and c)<\/strong> lack of direct linkage between growers and processors.<\/p>\n

Why do small and micro food-processing units economically more viable than the larger ones?<\/h5>\n

This is because, a)<\/strong> The perishable and seasonal nature of farm produce and its scattered availability in small lots; b)<\/strong> Paucity of commodity-specific warehousing and transportation facilities; and c)<\/strong> The issues related to product quality, especially in terms of its suitability for processing.<\/p>\n

What needs to be done to improve the present state of India’s food-processing industry?<\/h5>\n

a)<\/strong> Value-enhancing treatment needs to be stepped up substantially, at least to 25%, to reduce spoilage, and facilitate the year-round availability of seasonal agricultural products. It will generate additional income for farmers and off-farm employment and entrepreneurship opportunities for rural people, b) <\/strong>Promote small-scale and village-level agro-processing units even while continuing to support the organised sector food-processing industry, and c)<\/strong> Farmers need to be encouraged to set up mini or micro agro-processing centres, individually or collectively, through cooperatives or farmers\u2019 producer organisations.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article \u201cFood growers can be processors too\u201d published in the Business Standard on 17th October 2022. Syllabus: GS 3 \u2013 Food Processing and Related Industries in India Relevance: About the present state of India’s food-processing industry(FPIs) News: The food-processing industry, despite impressive growth over the past few years,… Continue reading About food-processing industry: Food growers can be processors too<\/span><\/a><\/p>\n","protected":false},"author":10311,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[10503,216],"class_list":["post-210766","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-business-standard","tag-gs-paper-3","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/210766","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10311"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=210766"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/210766\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=210766"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=210766"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=210766"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}