Roadmap for Answer Writing 1. Introduction Briefly introduce agricultural cooperatives and their importance in India’s agricultural sector. State the key roles they play in boosting farmers’ income, promoting exports, and strengthening the rural economy. 2. Role in Boosting Farmers’ Income Bargaining Power: Explain how cooperatives ...
Model Answer Introduction The food processing industry in India plays a crucial role in enhancing food security and generating employment. However, it faces significant challenges, including poor supply chain linkages, inadequate infrastructure, and low levels of processing. To tackle these issues,Read more
Model Answer
Introduction
The food processing industry in India plays a crucial role in enhancing food security and generating employment. However, it faces significant challenges, including poor supply chain linkages, inadequate infrastructure, and low levels of processing. To tackle these issues, the Government of India has implemented various policy measures.
Challenges in the Food Processing Sector
- Poor Supply Chain Linkage: The lack of mechanization and proper logistics leads to over 30% wastage of agricultural produce.
- Infrastructure Bottlenecks: The food processing industry requires world-class infrastructure to minimize waste and improve efficiency, necessitating support from railways and airways.
- Unskilled Manpower: A significant gap exists in the skill set of the workforce, which needs training to meet the demands of the food processing industry.
- Quality Adherence: Low-quality grading of crops and finished products limits competitiveness and export potential.
- Low Level of Processing: Sectors like fisheries (8%), poultry (6%), and horticulture (2%) exhibit low levels of processing infrastructure.
Policy Measures
1. Pradhan Mantri Kisan Sampada Yojana (PMKSY)
This umbrella scheme consolidates various initiatives, including Mega Food Parks and Integrated Cold Chains, aimed at enhancing the food processing sector.
2. Mega Food Parks Scheme
Designed to connect agricultural production with markets, this scheme establishes a cluster-based approach on a minimum of 50 acres, facilitating common infrastructure development.
Fact: The government covers the costs of essential facilities such as packing and labeling. (Source: Ministry of Food Processing Industries)
3. Cold Chain, Value Addition, and Preservation Infrastructure Scheme
This initiative focuses on developing pre-cooling facilities, reefer vans, and value addition centers to improve storage and processing capabilities.
4. 100% Foreign Direct Investment (FDI)
Allowing 100% FDI through the automatic route enhances investment and innovation in the sector.
5. PM Formalization of Micro Food Processing Enterprises
This scheme supports small micro-units engaged in food processing, helping them scale their operations.
6. Operation Greens
This initiative provides subsidies for the processing and transportation of key vegetables like tomatoes, onions, and potatoes, ensuring their availability throughout the year.
Conclusion
To foster growth in the food processing sector, addressing both demand and supply constraints is essential. The government’s comprehensive policy measures aim to enhance agricultural production and exports, making the food processing industry more profitable and sustainable.
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Model Answer 1. Boosting Farmers' Income Bargaining Power: By joining cooperatives, farmers can collectively negotiate contracts, stabilizing prices and ensuring consistent sales. This reduces their vulnerability to price volatility. For example, NAFED helps stabilize prices and supports market inteRead more
Model Answer
1. Boosting Farmers’ Income
2. Promoting Agricultural Exports
3. Strengthening the Rural Economy
Challenges
Despite these benefits, challenges like politicization, mismanagement of funds, and lack of technical expertise hinder the effectiveness of agricultural cooperatives. Government initiatives like the Krishak Dirghawadhi Punji Sahakar Yojana aim to address these issues by providing long-term credit to cooperatives.
Key Highlights:
Agricultural cooperatives play a pivotal role in transforming rural India, but overcoming challenges is essential for maximizing their potential.
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