FOOD PROCESSING INDUSTRY

Mains Enrichment Cards     6th September 2023        
output themes
FOOD PROCESSING INDUSTRY: REVISION CARD

INTRODUCTION: 


Food Processing Sector: Status

Food processing is the utilization of various methods and technologies to convert raw agricultural materials into edible food products. India has 6th largest food market but contributes only 1.5% in world processed food trade.

Food Processing & Hunger

Food processing plays a critical role in reducing food wastage (annually 50 Kg per Indian - UNEP) and eliminating hunger (16% of Indians under-nourished).


FORMULA BY theIAShub

↑ FOOD PROCESSING = ↓ FOOD WASTAGE +   ↓ HUNGER
↑ FOOD PROCESSING = ↓ FOOD WASTAGE + ↑ EMPLOYMENT + ↑ FARMER EMPOWERMENT

SPEECHES BY PROMINENT PERSONALITIES (PM, PRESIDENT, UN OFFICIALS et al) /RECOGNITION IF ANY:

  • PM Modi: "21st century India needs post-harvest or food processing revolution and value addition amid increasing agriculture production."

CURRENT DEVELOPMENT: 

  • One District One Product (ODOP) approach launched under PM Formalisation of Micro Food Processing Enterprises.
  • Farmer Connect Portal - platform for farmers, FPOs and cooperatives to interact with exporters (Fork to farm).
  • Convergence portal launched for inter-ministerial coordination in food processing sector. 
  • 7500 cr investment in food processing under PLI scheme so far (Minister of Food Producing Industry).

DATA/FACT:

Global position

India has the 6t largest food and grocery market globally.

Share in world processed food trade

1.5%

Share in India’s exports 

More than 10%

Share in Employment

More than 12% (Highly employment Intensive sector)

Informalisation

40% of the sector is Unorganised


KEYWORDS:

  • BODY: Shopping mall culture; Paradox of hunger amidst plenty; Sunrise industry; Hidden Hunger;
  • CONCLUSION: Agriculturists to Agri-preneurs; From Subsistence Farmer to Milletprenuers; Farm gate to Firm Gate to Home Gate Approach

COMMITTEES RECOMMENDATIONS/NATIONAL OR INTERNATIONAL REPORTS:

  • Ashok Dalwai committee Report: India’s food production industry is worth over $400 billion, but the level of food processing across categories is significantly low

GOVT SCHEMES, POLICIES AND INITIATIVE:

  • Schemes – National Food Processing Mission, PM SAMPADA Yojana, Matsya Sampada Yojana, National Horticulture Mission, Dairy Development Programme, PM Formalisation of Micro Food Processing Enterprises etc
  • Marketing reforms - Operation Greens (‘Top to Total’), Developing & upgrading existing rural haats into Gramin Agricultural Markets (GrAMs), One District, One Product (ODOP), e-NAM etc.
  • Credit & finance - Special ‘Food processing Fund’ in NABARD; Nivesh Bandhu portal to assist investors.
  • Focus on infrastructure - Setting up of Agri Export Zones, Mega Food Parks, etc.

EXAMPLES/CASE STUDIES:

  • GoodFood India's successful adoption of cold chain logistics and innovative food preservation techniques led to a significant reduction in food wastage.
  • New Zealand: Despite being a small country, it is a major exporter of food and beverage products. Food sector accounts for 45% of all goods exported by New Zealand.

CONCLUSION

  • A sweet synthesis of ‘Institutional reforms’ and ‘ease of logistics’ is the key to attract private investment and develop food processing sector in India.

FOOD PROCESSING INDUSTRY: MICRO DIAGRAMS

NEED FOR FOOD PROCESSING



FOOD PROCESSING: INDIA’S COMPETITIVE ADVANTAGE



CHANGING FOOD HABITS & EXPANSION OF FOOD PROCESSING

Samadhaan