APPROACH
The Introduction: Talk about basic essence of food processing industry
The Body
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- Extensively elaborate the scope of food processing industry with facts and data
- Highlight various government initiatives for generating employment opportunities in the sector
The Conclusion: Give an appropriate conclusion in this regard.
The Introduction:
The food processing industry in India plays an important role in enhancing food and nutritional security. By converting raw agricultural products into consumable goods, this sector helps reduce post-harvest losses and ensure better nutritional value. With India ranked 6th largest globally, the sector is projected to almost double to USD 700 billion by 2030. It contributes roughly 10% to manufacturing GVA.
The Body
Scope of the Food Processing Industry
1. Diverse raw material base: India ranks 2nd in fruits and vegetables, 1st in dairy and is the largest spice producer. This creates a strong raw material base for various processed edible products.
2. Massive market potential: Rising urbanisation, changing dietary preferences and expansion of organized retail make convenience and processed foods increasingly popular. The growing consumption of food is expected to reach USD 1.2 trillion by 2025-26.
3. Export opportunities: Processed food accounted for more than 10 billion USD worth of exports in 2024-25 and formed one of the most important items of agri-exports
4. Reduction of post-harvest losses: According to the Indian Council of Agricultural Research (ICAR), India loses about 15-20% of its total agricultural produce post-harvest due to inadequate processing and storage facilities. The food processing industry mitigates these losses by enhancing the shelf life and quality of perishable goods.
5. Value addition and diversification: The industry offers a diverse range of nutritional options. Processed foods often have fortified nutrients which help to rectify the nutritional deficiencies in the population.
6. Employment generation: The food processing industry provides direct jobs to more than more than 20 lakh people. It has the potential to generate more than 9 million people directly or indirectly by 2030.
7. Nutritional enhancement: Through processes like fortification and enrichment, the food processing industry ensures that processed foods meet specific nutritional standards. This contributes to better public health outcomes.
Government Measures
1. PLI Scheme for Food Processing Industry (PLISFPI): This scheme supports scaling up manufacturing and generating jobs. It has enabled creation of more than 3 lakh of direct and indirect jobs in the sector
2. PMFME (PM Formalisation of Micro Food Processing Enterprises) Scheme: It aims to enhance the competitiveness of new and existing micro-enterprises in the unorganised segment of the food processing industry through formalisation of the sector.
3. Pradhan Mantri Kisan SAMPADA Yojana (PMKSY): This scheme aims to create infrastructure for agro-processing clusters, reduce wastage and enhance the value of agricultural produce.
4. FDI and policy support: The sector received more than Rs 1 lakh crore in FDI. Policies under Make in India and tax benefits aid private investment.
5. Skill development: States are encouraging local youth training tied to the food processing sector which helps them secure formal sources of employment in the agri-business sector.
The Conclusion
India’s food processing industry is poised for exponential growth, driven by abundant raw material, favourable consumption trends and focused policy support. The government’s proactive approach has created strong momentum in job creation and rural upliftment. Turning food processing into a truly inclusive rural growth engine will bring economic prosperity and empower millions of livelihoods across India.
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