Food Processing Industry in India – Recent Schemes & Developments

The food processing industry in India is a robust and dynamic sector that plays a pivotal role in the country’s economy. It not only provides a means of preserving and extending the shelf life of food products but also creates employment opportunities and contributes to agricultural development. In recent years, the government of India has introduced several schemes and witnessed significant developments aimed at bolstering this industry. This article delves into the latest schemes and developments in the Indian food processing industry, shedding light on the initiatives designed to propel this sector forward, including the “food processing subsidy scheme.”

Sustaining Growth in the Food Processing Industry

The food processing industry in India has been on a steady growth trajectory, but it holds even more potential. The government, recognizing the importance of this sector, has introduced a range of schemes and initiatives to stimulate growth and address various challenges.

1. Pradhan Mantri Kisan Sampada Yojana (PMKSY)

Under the Pradhan Mantri Kisan Sampada Yojana, the government has created a comprehensive scheme for the integrated development of the food processing sector. This scheme encompasses the entire food supply chain, from the farm to the end consumer.

• Components of PMKSY: The scheme includes the creation of mega food parks, cold chain infrastructure, and food processing units, among other components. It aims to reduce wastage, create employment opportunities, and increase the income of farmers.
• Food Processing Subsidy Scheme: A significant aspect of PMKSY is the “food processing subsidy scheme.” This scheme offers financial incentives and subsidies to entrepreneurs and businesses engaged in food processing activities. It encourages the use of modern technology and equipment, ultimately improving the quality of processed food products.

2. National Mission on Food Processing (NMFP)

The National Mission on Food Processing focuses on enhancing the competitiveness of the food processing industry by supporting various infrastructure and logistics projects.

• Infrastructure Development: The mission provides assistance for the development of infrastructure such as cold storage, warehouses, and packaging units. This not only reduces post-harvest losses but also ensures food safety and quality.
• Human Resource Development: NMFP also promotes skill development in the food processing sector, equipping the workforce with the necessary knowledge and expertise.

3. Technology Upgradation and Quality Certification (TUQC)

The TUQC scheme aims to encourage small and medium-sized food processing enterprises to adopt modern technology and obtain quality certifications.

• Incentives for Technology Upgradation: Under this scheme, financial incentives are provided to businesses that invest in technology upgradation, leading to improved productivity and product quality.
• Quality Certification Support: The scheme assists businesses in obtaining relevant quality certifications, making their products more competitive in domestic and international markets.

4. Mega Food Parks and Cold Chain Projects

The government has facilitated the establishment of mega food parks and cold chain projects across the country. These initiatives create a conducive environment for food processing activities.

• Mega Food Parks: These parks serve as hubs for food processing units, providing infrastructure, storage, and processing facilities. They significantly reduce food wastage and add value to agricultural produce.
• Cold Chain Projects: The development of cold chain infrastructure ensures the efficient transportation and storage of perishable goods, helping maintain the freshness and quality of food products.

5. FDI in Food Processing

The government has been actively promoting foreign direct investment (FDI) in the food processing sector. This has attracted international players and led to increased technology transfer and investment.

• Increased Investments: FDI brings in capital, technology, and global best practices, which can transform the food processing industry in India.

6. Organic Food Processing

With a growing global demand for organic products, the Indian government has been promoting organic food processing.

• Certification Support: Various schemes and subsidies are available for organic food processing units to obtain necessary certifications and expand their market reach.

7. Export Promotion

The government is taking steps to promote the export of processed food products. This includes simplifying export procedures, ensuring quality compliance, and participating in international food exhibitions.

Challenges and the Way Forward

While these schemes and developments indicate progress, the food processing industry in India faces several challenges, including infrastructure limitations, access to credit, and marketing hurdles. To overcome these challenges and continue the positive trajectory, the government and industry stakeholders must work together.

• Infrastructure Development: Ongoing investments in infrastructure, such as cold storage and logistics, are essential to reduce post-harvest losses.
• Access to Credit: Streamlining access to credit for small and medium-sized enterprises in the food processing sector is critical for growth and expansion.
• Research and Development: Continued research and development in food processing technology and techniques can enhance product quality and shelf life.
• Market Access: Exploring international markets and adapting to changing consumer preferences is crucial for the sector’s long-term success.