FOOD
PROCESSING SECTOR – ECONOMY
News:
‘Food processing sector
to generate 9 million jobs by 2024’
What's
in the news?
●
India’s food processing sector is expected
to generate 9 million jobs by 2024 and by 2030, India’s household consumption
would quadruple, making it the world’s fifth-largest consumer of food and food
technology.
Food
Processing Sector:
●
India only processes around 10% of the total food production in the country.
●
Food processing sectors were recognised as
a sunrise industry in India.
●
Processing accounts for around 2% of
fruits and vegetables, 8% of marine products, 35% of milk, and 6% of poultry.
Significance
of the Food Processing Sector:
1.
Reduce food waste:
●
Food waste can be reduced through proper
food processing.
2. Increase farmers income:
●
Enhance farmer’s income by better
utilization and value addition of agricultural produce.
3. Employment generation:
●
It provides direct and indirect employment
opportunities, because it acts as a bridge between Agriculture and
Manufacturing.
4. Ensure food security:
●
Processed foods when fortified with vitamins and minerals can reduce the
nutritional gap in the population and also thus ensure the food security of the
country.
5. Foreign investment:
●
More Foreign
investments can be garnered into this food processing sector.
Issues
in the food processing sector:
1.
Lack of infrastructure:
●
Food processing needs robust
infrastructure like cold storage, transport, backward forward linkage. These
facilities are missing in India.
2. Poor branding:
●
Branding of famous regional foods is not
done at a global level. Till now focus only on basmati rice, mango, tea. Crop
diversification is missing.
3. Informalization in Food Processing Industry:
●
The food processing industry has a high
concentration of unorganized segments, representing almost 75% across all
product categories.
●
Thus, it causes inefficiencies in the
existing production system.
4. Poor Regulatory Environment:
●
There are numerous laws, under the
jurisdiction of different ministries and departments, which govern food safety
and packaging.
Government
measures to promote food processing in India:
1.
PM-Formalisation of Micro Food Processing Enterprises Scheme (PMF ME):
●
This scheme has been launched to provide
financial, technical and business support for setting up/upgradation of 2 lakh
micro food processing enterprises.
2. Production Linked Incentive scheme (PLIS) for Food Processing Sector:
●
This scheme was launched with an outlay of Rs
10,900 crore to support creation of global food manufacturing champions and
support Indian brands of food products in the international market.
3. Foreign Direct investment:
●
Government has allowed 100% FDI investment
into the food processing sector.
4. PM mega food park scheme:
●
Government started this scheme to increase
the food processing conglomerates in every important region.
5. Cold Chain Infrastructure:
●
The Scheme for Integrated Cold Chain,
Value Addition, and Preservation Infrastructure aims to encourage the setting
up of cold chain facilities to provide integrated cold chain and preservation
infrastructure facilities without breaking from the farm gate to the consumer.
WAY
FORWARD:
1.
Poor supply chain facilities:
●
There exists gaps in supply chain
infrastructure which means inadequate primary processing, storage and
distribution facilities.
2. Awareness promotion:
●
Government should promote policy awareness
among the farmer communities about the latest schemes and policies.
3. Decentralized food processing:
●
Local foods should be processed locally
and export promotion incentives can also be given to farmers.