Subject: Economy

The food processing sector in India is experiencing significant transformation through targeted government interventions aimed at modernizing infrastructure and enhancing value addition in the agricultural supply chain.

Policy Framework and Infrastructure Development

• The flagship Pradhan Mantri Kisan Sampada Yojana (PMKSY) focuses on creating modern infrastructure with efficient supply chain management from farm gate to retail outlets.
• Development of Mega Food Parks: As of March 2023, 24 Mega Food Parks are operational across India, with a target of establishing 40 parks by 2025.
• Implementation of 96 food processing projects in Tamil Nadu with grants-in-aid of ₹376.40 crore, demonstrating state-level commitment.

Export Promotion and Quality Standards

• The Agriculture Export Policy aims to:

  • Double agricultural exports and achieve US$100 billion target in subsequent years.
  • Shift from residual to targeted exports based on overseas market preferences.
  • Focus on high-value and value-added products.

• Food Safety and Standards Act (FSSA) amendments:

  • Streamlined certification process by making FSSAI certification mandatory.
  • Eliminated the requirement for BIS or AGMARK certifications.
  • Introduction of new standards for products like Mead, Alcoholic RTD beverages, and Haleem.

Comprehensive Support Measures

• Supply Chain Development:

  • Creation of farm-gate infrastructure.
  • Modern storage facilities and distribution networks.
  • Cold chain integration for perishable products.

• Rural Employment Generation:

  • Focus on creating employment opportunities in rural areas.
  • Skill development programs for food processing operations.
  • Support for micro food processing enterprises through the PM Formalization of Micro Food Processing Enterprises (PM-FME) scheme.

The government's multi-pronged approach through schemes like PMKSY and Agriculture Export Policy has created a robust framework for addressing the challenges in the food processing sector, while initiatives like Mega Food Parks and FSSAI regulations ensure quality standards and infrastructure development, positioning India as a major player in the global food processing industry.