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UNLOCK INDIA’S FOOD PROCESSING POTENTIAL
What the article is about?
- Talks about the prospects and need for unlocking India’s food processing potential
Syllabus: GS-III Agricultural Marketing, Food processing
Food Processing:
- Food Processing includes process under which any raw product of agriculture, dairy, animal husbandry, meat, poultry or fishing is transformed through a process (involving employees, power, machines or money) in such a way that its original physical properties undergo a change and the transformed product has commercial value and is suitable for human and animal consumption.
- Food processing industry (FPI) is one area that has the potential to add value to farm output, create alternate employment opportunities, improve exports and strengthen the domestic supply chain.
India’s Food Processing sector:
- India, with about 11.2 per cent of total arable land in the world, is ranked first in the production of milk, pulses and jute, second in fruits and vegetables and third in cereals (Government of India, 2019).
- It is also the sixth largest food and grocery market in the world.
- Food & Grocery retail market in India further constitutes almost 65% of the total retail market in India.
- By 2025, India’s food processing industry is expected to be worth over half a trillion dollars.
Production-Linked Incentive Scheme(PLI):
- Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)”, a central sector scheme entailing an outlay of Rs. 10,900 crore.
- In order to boost domestic manufacturing and cut down on import bills, the central government in March 2020 introduced a PLI scheme that aims to give companies incentives on incremental sales from products manufactured in domestic units.
- Objectives of PLISFPI:
- Coverage: First component; incentivising manufacturing of four major food product segments viz. Ready to Cook/ Ready to Eat (RTC/ RTE) foods, Processed Fruits & Vegetables, Marine Products, Mozzarella Cheese. Also covers organic products.
- The second component relates to support for branding and marketing abroad.
- Duration: Scheme will be implemented over a six year period from 2021-22 to 2026-27.
Way Ahead:
With growing populations, changing food habits and unrestricted use of natural resources, nations must come together and layout a road map for a common efficient food value chain.
