Roadmap for Answer Writing
1. Introduction
- Define the food processing sector and its significance in India.
- Briefly mention the challenges faced by the sector.
Fact: The food processing industry encompasses activities such as processing, preservation, packaging, and distribution of food products. (Source: Ministry of Food Processing Industries)
2. Challenges in the Food Processing Sector
- Outline the main challenges that the sector faces:
A. Poor Supply Chain Linkage
- Explain issues related to mechanization, perishability, and the wastage of over 30% of agricultural produce.
B. Infrastructure Bottlenecks
- Discuss the need for world-class infrastructure and logistics support to reduce waste.
C. Unskilled Manpower
- Highlight the gap in skilled labor necessary for the food processing industry.
D. Quality Adherence
- Mention the lack of quality grading for crops and products, affecting competitiveness.
E. Low Level of Processing
- Note the low processing levels in sectors like fisheries (8%), poultry (6%), and horticulture (2%). (Source: National Horticulture Board)
3. Policy Measures Taken
- Discuss the key policies implemented by the Government of India to address these challenges:
A. Pradhan Mantri Kisan Sampada Yojana (PMKSY)
- Describe this umbrella scheme that incorporates various initiatives for the food processing sector.
B. Mega Food Parks Scheme
- Explain its aim to connect agricultural production to markets and the cluster-based approach.Fact: A Mega Food Park operates on a minimum of 50 acres and includes infrastructure development costs covered by the government. (Source: Ministry of Food Processing Industries)
C. Cold Chain, Value Addition, and Preservation Infrastructure Scheme
- Highlight the focus on developing cold storage facilities and value addition centers.
D. 100% Foreign Direct Investment (FDI)
- Discuss the significance of allowing 100% FDI through the automatic route to attract investments.
E. PM Formalization of Micro Food Processing Enterprises
- Explain how this scheme supports small micro-units in the food processing sector.
F. Operation Greens
- Describe this initiative’s subsidies for processing key vegetables to ensure year-round availability.
4. Conclusion
- Summarize the importance of these policy measures in addressing the challenges of the food processing sector.
- Emphasize the potential for increased agricultural production and improved profitability through these initiatives.
This roadmap provides a structured approach to answering the question, highlighting the challenges faced by the food processing sector and the government policies aimed at overcoming these challenges, along with relevant supporting facts.
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.
The food processing industry is struggling with the following challenges:
Given the above-mentioned challenges, the government has taken the following policy initiatives:
The food processing industry is critical to India’s growth and the government should focus on providing adequate impetus to the sector. With the correct set of policy implementations and support, the industry can grow by leaps and bounds, taking India to a new position of strength and prosperity in the global economy.
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.
The food processing industry is struggling with the following challenges:
Given the above-mentioned challenges, the government has taken the following policy initiatives:
The food processing industry is critical to India’s growth and the government should focus on providing adequate impetus to the sector. With the correct set of policy implementations and support, the industry can grow by leaps and bounds, taking India to a new position of strength and prosperity in the global economy.
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.
The food processing industry is struggling with the following challenges:
Given the above-mentioned challenges, the government has taken the following policy initiatives:
The food processing industry is critical to India’s growth and the government should focus on providing adequate impetus to the sector. With the correct set of policy implementations and support, the industry can grow by leaps and bounds, taking India to a new position of strength and prosperity in the global economy.
Government of India’s Policy on Food Processing Sector
1. National Food Processing Policy:
2. Production Linked Incentive (PLI) Scheme:
3. Pradhan Mantri Kisan Sampada Yojana (PMKSY):
4. Food Processing Mission:
5. Support for SMEs and Startups:
6. Market Access and Export Promotion:
7. Food Safety and Quality Regulation:
These policies collectively aim to address the challenges of the food processing sector by improving infrastructure, boosting investment, ensuring quality, and facilitating market access, thereby driving growth and sustainability in the sector.
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
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.