Q14. Elaborate the policy taken by the Government of India to meet the challenges of the food processing sector.

Model Answer:

Introduction

The Government of India has implemented several policies and initiatives to address the challenges faced by the food processing sector. These policies aim to enhance the sector's growth, improve infrastructure, ensure food safety, and promote exports. 

Body

Here are the key policies and initiatives:

1. Pradhan Mantri Kisan SAMPADA Yojana (PMKSY)

  • Objective: To create modern infrastructure with efficient supply chain management from farm gate to retail outlet.
  • Components:
    • Mega Food Parks: Establishing state-of-the-art infrastructure for food processing along the value chain.
    • Integrated Cold Chain and Value Addition Infrastructure: Developing cold chain infrastructure to reduce post-harvest losses.
    • Creation/Expansion of Food Processing & Preservation Capacities: Setting up new units and expanding existing ones.

2. Production-Linked Incentive (PLI) Scheme for Food Processing Industry

  • Objective: To boost domestic manufacturing and exports in the food processing sector.
  • Incentives: Financial incentives based on sales and investments in the sector.
  • Target Segments: Ready-to-eat/ready-to-cook foods, processed fruits and vegetables, marine products, and innovative/organic products.

3. Operation Greens

  • Objective: To stabilise the supply of tomato, onion, and potato (TOP) crops and ensure their availability throughout the year without price volatility.
  • Components:
    • Short-term Price Stabilisation Measures: Providing subsidies for transportation and storage.
    • Long-term Integrated Value Chain Development Projects: Developing infrastructure for processing, storage, and marketing.

4. Food Safety and Standards Authority of India (FSSAI) Regulations

  • Objective: To ensure food safety and quality standards.
  • Initiatives:
    • Food Safety Management System (FSMS): Implementing FSMS in food processing units.
    • Licensing and Registration: Mandatory licensing and registration of food businesses.
    • Training and Capacity Building: Training programs for food business operators.

5. Agri-Export Policy

  • Objective: To double agricultural exports and integrate Indian farmers and agricultural products with global value chains.
  • Components:
    • Infrastructure Development: Developing export-oriented infrastructure.
    • Market Access: Facilitating market access for Indian agricultural products.
    • Quality Standards: Ensuring compliance with international quality standards.

6. Mega Food Parks Scheme

  • Objective: To provide modern infrastructure facilities for food processing along the value chain from farm to market.
  • Components:
    • Central Processing Centre (CPC): Common facilities like cold storage, warehousing, and packaging.
    • Primary Processing Centres (PPCs): Facilities for primary processing and storage near the farm gate.

7. Cold Chain Infrastructure Development

  • Objective: To reduce post-harvest losses and ensure the availability of perishable products.
  • Components:
    • Integrated Cold Chain Projects: Establishing cold storage, reefer vehicles, and pack houses.
    • Financial Assistance: Subsidies and grants for setting up cold chain infrastructure.

8. Ease of Doing Business Initiatives

  • Objective: To create a conducive environment for the food processing industry.
  • Components:
    • Single Window Clearance: Simplifying the approval process for setting up food processing units.
    • Reduction in Compliance Burden: Streamlining regulations and reducing the compliance burden on businesses.

9. Skill Development and Capacity Building

  • Objective: To enhance the skills of workers in the food processing sector.
  • Initiatives:
    • National Institute of Food Technology Entrepreneurship and Management (NIFTEM): Providing education and training in food technology and management.
    • Indian Institute of Food Processing Technology (IIFPT): Offering courses and training programs in food processing.

10. Financial Support and Subsidies

  • Objective: To provide financial assistance to food processing units.
  • Components:
    • Credit Linked Subsidy Scheme: Providing subsidies on loans for setting up food processing units.
    • Interest Subvention Scheme: Offering interest subvention on loans for food processing projects.

Conclusion

These policies and initiatives collectively aim to address the challenges faced by the food processing sector, such as inadequate infrastructure, post-harvest losses, quality standards, and market access. By providing financial support, infrastructure development, regulatory reforms, and skill development, the government seeks to create a robust and competitive food processing industry in India.

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