FOOD PROCESSING INDUSTRY

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.

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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



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