Er. Konika Sharma
Food processing is indispensable for the overall development of an economy as it provides a vital linkage and synergy between the agriculture and industry. It helps to diversify and commercialize farming, enhances income of farmers, creates market for export of agro products as well as generate greater employment opportunities .Through the presence of such industries, a wider range of food products could be sold and distributed to the distant locations.
The term “FOOD PROCESSING” is mainly defined as” a process of value addition to the agricultural or horticultural produce by various methods like grading , sorting and packaging. In other words,” it is a technique of manufacturing and preserving food substances in an effective manner with a view to enhance their shelf life; improve quality as well as make them functionally more useful. It covers spectrum of products from sub-sectors comprising agriculture, horticulture, plantation ,animal husbandry and fisheries.
Recently, The Union Ministry of Food Processing Industry (MOFPI) organized ‘The World Food India event’ in New Delhi. The 3-day long event showcased India’s potential to become the; world food industry’ to the participating countries and the leading MNC’s like PepsiCo, Nestle etc. During the event, Business worth USD 11.25 billion with 50 MOU’s has been transacted between the MOFPI and private sector. Significantly various state governments also signed an additional USD 2.5 billion worth MOU’s at this event.
Scope of food processing Industry of India
As per an estimate, India’s current food processing industry is estimated at USD 130 billion and expected to attract huge domestic and foreign investment. Some of the key factors which are likely to increase the demand for processed food and consequently the food processing industry in the coming years are;
* India is a country of over 1.25 billion population, with rising middle class having a considerable disposable income, the domestic market offers 1.25 billion opportunities for the sector.
* India ranks no 1 in the world in the production of Milk , Ghee, Ginger, bananas, guavas, papayas and mangoes. Further India ranked 2 in the world in the production of Rice , Wheat and several other vegetables and fruits. If the surplus production of cereals, fruits, vegetables, milk, fish, meat and poultry etc are processed and marketed both inside and outside the country, there will be greater opportunities for the growth of this sector.
* Due to rapid urbanization, food habits are changing rapidly towards value-added foods. The change is accentuated by the fact that over 65% of India’s population is 35 or under, who are inclined to have processed food.
* Next to China, India is among the fastest growing economies in the world .The recent quantum jump in the Ease of Doing Business world ranking of the World Bank from 130 to 100 indicates the conducive business climate in the country and 100 % Foreign Direct Investment in the same sector is expected to attract more Foreign Investment.
* India aims for the big leap forward in the ocean economy and the country can focus on developing untapped areas such as ‘Ornamental Fisheries’ and ‘Trout Farming’ with the use of Food Processing Technology.
* As per an estimate, around 40% of total food produced is wasted due to the inadequate facilities for transportation storage, processing and marketing. If these deficiencies are addressed, there is huge scope for the development of this sector.
* Some women are deeply involved in the food sector especially in rural areas. There is great potential for women to emerge as micro entrepreneurs and raise overall female participation in the work force.
INITIATIVES
* Pradhan Mantri Kisan Sampada Yojana (PMKSY): In August 2017, Cabinet Committee on Economic Affairs (CCEA), gave its nod for PMKSY. is an Umbrella scheme that incorporates various ongoing schemes like Mega Food Parks, Integrated Cold Chain, Value Addition Infrastructure, Food Safety And Quality Assurance Infrastructure, Infrastructure For Agro Processing Clusters, Creation of Backward and Forward Linkages and Creation and Expansion of Food Processing and Preservation Capacities.
* Mega food park scheme: It aims at providing a mechanism to link agricultural production to the market by bringing together farmers, processors and retailers to maximize value addition , minimizing wastage, increasing farmer’s income and creating employment opportunities particularly in rural sector. According to ASSOCHAM-Grantt Thorton Research Paper, by 2024, Food Processing sector is expected to employ 9 million people in India and expected to generate about 8,000 direct and 80,000 indirect jobs. A Mega Food Park entails an area of a minimum of 50 acres and works in a cluster based approach, based on a hub and spokes model.
* Scheme of cold chain, value addition and preservation infrastructure: The objective of the scheme is to provide integrated cold chain and infrastructure facilities without any break from the farm gate to the consumer. It covers pre-cooling facilities at production sites, mobile cooling units as well as value addition centre.
*Modernisation of abattoirs scheme: The main objective of the scheme is a creation of processing and preservation capacities and modernization and expansion of existing food processing units with a view to increasing level of processing, value addition leading to reduction of wastage.
*Make in India: As a part of Make in India Campaign, food processing sector was identified as one of the 25 focus areas. Accordingly, the policy ecosystems have been revamped to attract financial, technological and human resources into the sector. Allowing 100% FDI through automatic route into this sector is also a significant step in this sector.
* Food Processing funds: A special fund in the National Bank for Agriculture and Rural Development (NABARD) worth INR 2,000 Crore, designated as Food Processing Fund was set up in the Five Year Plan 2014-15 for providing affordable credit to food processing units in Mega and Designated Food Parks.
* Lack of adequate infrastructure: Though Government of India has initiated various measures for the development of the food processing industry related infrastructure, they are not sufficient to meet the growing needs of this sector. Lack of cold storage facilities and road and rail connectivity to hinterland is still a major concern.
* Credit facilities: Despite the creation of the Food Processing Fund over a couple of years ago, the sector has been facing a resource crunch. Though the Foreign Investment has picked up now, it still doesn’t match the requirements of the industry.
* Lack of comprehensive policy: The Food Processing industry is a sunrise sector. Lack of comprehensive policy addressing the various needs of the food processing is obstructing its growth. The MOFPI should announce the National Food Processing Policy at the earliest to fill the policy vacuum
As per an estimate, India’s food consumption is currently valued at USD 370 billion and is expected to reach USD 1 trillion by 2025. The development of food processing industry is necessary due to the rising disposable income on the handoff middle class, changing food habits and rapid urbanization, changing dietary preferences towards the processed and packaged food. Besides, a well developed food processing sector with higher level of processing helps in reduction of wastage , improve value additions, promotes crop diversification, ensures a better return to the farmers, promotes employment as well as increase export earnings. This sector is also capable of addressing critical issues of food security, food inflation and providing wholesome, nutritious food to the masses.
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