Little Info on Food Processing Industries in India?

Q) Why Food Processing Industry is important for India?

A) 

1. This industry involves in the processing of agricultural,horticultural and other

products,which can reduce the wastage of food substantially and increases the

food security in the country. 

2. Food processing Industry is fifth largest industry in india.It encompasses

agriculture,horticulture,plantation,animal husbandry and fisheries.

3. India is home to 60 million poor people. It requires more than 60 million tonnes

of food grains for the Public Distribution System.(Reduction in wastage increases

the food security of nation and make it hunger free).

4. One of the main criticism of the PDS is poor Quality of grains. Processing can

enhance the quality of grains(if properly stored).

5. It has the capacity to provide more than a million jobs to youth, which are

suffering with unemployment and underemployment. 

6. Rural Economy is mainly based on agriculture. Nearly half of the indian

population are still dependent upon the agriculture. Improvement of food

processing increases the Both domestic and external demand,which

automatically converts the subsistence based agricultural produce into

commercial one,which ultimately increase the GDP of the nation. 

7. Indian farmers are suffering with various calamities. their margin on produce is

very low due to involvement of number intermediaries. Improvement of food

processing industries will cut down the intermediaries and enhance the welfare of

the farmers, who are back bone of the country’ s food security.

8.   Demand in the food production will be enhanced due to the development of
this industry. Such demand will automatically increases the investment in units of
both forward and backward linkages(that means: transportation, Fertilisers,
seeds, Irrigation, Marketing, Retail, Power Distribution, e-Technology through
APMC and other sectors ).

9. Also India has significant proportion of population which is undernutrition (1/3 of population), stunted and wasted. Indian population are suffering from the deficiency of vitamin(ex:- Vitamin A). 

10. The cost of skilled manpower is relatively low as compared to other countries.Attractive fiscal incentives have been instated by central and state governments and these include capital subsidies, tax rebates, depreciation benefits, as well as reduced custom and excise duties for processed food and machinery.

11. India,at present, has Multinational mega food processing players. for

example:- Kelloggs(USA) Pepsi(USA),Yakut ( Japan),Amazon (USA),

Nestle(Switzerland).

Q. What is Scope and Significance of the Food Processing Industries?

A)Scope and Significance of the food processing industries:-

Food processing Industry is fifth largest industry in india.It encompasses

agriculture,horticulture,plantation,animal husbandry and fisheries.

Definition of Food processing industry deals with two type of industries,which are

Manufactured processes and Other value added services. 

Manufactured Process:-

Any raw material from either agricultural industry or horticulture or fisheries go

through the process,which involves human energy,power,machine or money

e.t.c.,  to become the edible material or to become commercial value, such

manufactured products comes under the food processing industries.

Other Value added Process:- 

Even though a material is not undergone any manufactured process, if it is

transformed either to increase shelf life or to consumption or other purposes, then

such value added processes also comes under food processing industries.

Food processing industries encompasses following stages :-

Inputs—>Production—>procurement&storage—>Primary Processing--> Secondary Processing —> Retailing. 

Scope and Significance In terms of Agriculture:-

1. In india,nearly 270 million tonnes of food grains are produced in last fiscal year.

Out of total agricultural produce, only 2% of food is processed. 

2. With rich agriculture resource base-India was ranked No. I in the world in 2013

in terms of production of Arecanut, Bananas, Castor oil seed, Chick peas, Chillies

& Peppers dry, Ginger, Lemons & limes, Mangoes, Mangosteens, guavas, Millet,

Okra, Papayas, Pigeon peas, Meat- buffalo, Milk-whole fresh buffalo & goat,

Ghee, butter oil of cow milk, Ghee of buffalo milk, sesame seed.

3.  India ranks second in the world in the production of Anise,fennel, coriander,

beans-dry, cabbages and other brassicas, cauliflower & broccoli, Egg plants

(aubergines), Garlic,Groundnuts with shell, Lentil, Onions dry, Peas green,

Potatoes, Pumpkins, Squash and Gourds, Rice/Paddy, Safflower seed, Sugar

cane, Tea, Tomatoes, Wheat, Meat goat, Milk whole fresh cow. Further, India is at

third position in the production of Cashew nuts, with shell, Coconuts, Lettuce and

chicory, Nutmeg, mace and cardamoms, Pepper (piper spp.), Rapeseed.

4. The Country’s gross cropped area amounts to 194.39 Million Hectares, with

cropping intensity of 139%. The net irrigated area is 66.10 Million Hectare.

5. India has about 26 types of different climatic conditions,46 varieties of soils are

there in India out of total 60 types of soils worldwide. 127 ‘agro climatic zones’

have been identified in India. Also, Indian food is known worldwide for its unique

taste and aroma.

Scope and Significance in terms of Strategic Location and outreach:-

It is strategically situated in between west asia and south east asia,which are

majorly Food Importing regions of the world, with nearly 7,500 km of coastal line.

India has Extensive network of food processing training, academic and research

institutes.At present, India has 42 mega food parks are being setup with an

investment of INK 155 Billion. The parks have around 1250 developed plots with

basic enabled infrastructure that entrepreneurs can take on lease for the setting

up of food processing and ancillary units.

Q. What are important Agencies that are involved in Food Processing Industries?

A)Agencies that related to food processing industries:-

1. Ministry of Food Processing Industries

2. Food Safety and Standards Authority of India

3. Agriculture and Processed Foods Export Development Authority

4. National Insitute for Food Technology and Entrepreneurship Management

5. All India Food Processors Association

6. Commodity Boards under the Ministry of Commerce and the Ministry of

Agriculture/Ministry of Food Processing: coffee, tea, spice, meat and grapes. 

7. Indian Grape Processing Board and some other Agencies involved in the food

processing industries.

Q) Discuss some of the Govt Initiative that boosted the growth of Food

Processing Industries in India?

Government Initiatives:-

National Mission on food processing: Ministry of Food Processing Industries (MOFPI) implemented a new Centrally Sponsored Scheme (CSS) National Mission on Food Processing (NMFP) on 1st April 2012 for implementation through States/UTs. The NMFP visualises establishment of a National Mission as well as corresponding Missions in the State and District level. The major objectives of this schemes are as follows:

1 To augment the capacity of food processors working to upscale their operations through capital infusion, technology transfer, skill up gradation and handholding support.

2 To support established self-help groups working in food processing sector to facilitate them to achieve SME status.

3 Capacity development and skill upgradation through institutional training to ensure sustainable employment opportunities to the people and also to reduce the gap in requirement and availability of skilled manpower in food processing sector.

4 To raise the standards of food safety and hygiene to the globally accepted norms.

5 To facilitate food processing industries to adopt HACCP and ISO certification norms

6 To augment farm gate infrastructure, supply chain logistic, storage and processing capacity.

7 To provide better support system to organized food processing sector

Major Programmes / Schemes to be covered under NMFP during 2012-13 are 

Mega food parks: 

Mega Food Park Scheme is the effective program of the Ministry of Food Processing Industries, Government of India. Mega Food Park Scheme suggests a demand driven/pre-marketed model with strong backward/forward linkages and sustainable supply chain. It can be said that the policy of Mega Food Park is intended to offer a mechanism to relate agricultural production to the market through bringing together farmers, processors and retailers in order to maximize value addition, reduce wastages, increasing farmers' income and creating employment opportunities particularly in rural sector. The Mega Food Park Scheme is based on Cluster approach and visualizes a well-defined agri/ horticultural-processing zone containing state-of-the art processing facilities with support infrastructure and well-established supply chain.

Total 42 Mega Food Parks have been sanctioned by the Government for setting-up in the country. This step of the Government will create huge modern infrastructure for food processing sector and provide impetus to the development 

of the area.

List of Mega Food Parks

Modernisation of abattoirs: 

According to reports, The Scheme of Modernization of Abattoirs was launched during 2008. The Scheme is employed through local bodies (Municipal Corporations and Panchayats)/Public Sector Undertakings/Cooperatives/ Boards under Government and will have the flexibility for participation of private investors on PPP basis. The scheme offers facilities for scientific and less painful slaughtering, chilling, waste treatment plant, by-product utilization, water and power with required sanitary / phyto sanitary conditions for modernization of abattoirs. Transformation of abattoirs will also enhance essential supply base of hygienic raw material to the meat processing industry, both for domestic consumption and exports, besides discouraging illegal slaughtering. Scheme of Setting up/ Modernization of Abattoirs offers for initiation of private capital, better technology, backward and forward linkages. The system also provides for execution of projects preferably under PPP mode with the involvement of local bodies and has the flexibility for involvement of private investors/exporters on a BOO/BOT/JV basis.

Cold Chain Infrastructure: 

The Government of India identifies that development of cold chain is an essential step in upgrading India's food processing industry and consequently offers many incentives for promoting growth Scheme for Integrated Cold Chain, Value Addition and Preservation Infrastructure has major objective to motivate setting up of cold chain facilities to provide integrated cold chain and preservation infrastructure facilities without break from the farm gate to the customer.

Scheme of Technology Up-gradation/Establishment/ Modernization of Food Processing Industries: The Scheme is implemented to support prospective entrepreneurs to establish food processing units to decrease the wastage of agricultural and horticultural produce. 

R&D, QA, Codex and Promotion: 

Scheme for Quality Assurance, Codex, R&D and Other Promotional Activities is being executed to build infrastructure of food testing laboratories in the country to establish quality monitoring system for food processing, implement HACCP/ISO22000, ISO14000/GHP/GMP and other quality management systems and to encourage research and development for innovative products and process.

Food Testing Laboratories: The objective of the scheme is to guarantee safety and quality of food products with the analysis of the samples received from food processing industries and other stakeholders. The formation of a surveillance system to monitor the quality and composition of food and thereby ensuring compliance of international standards on food. 

Implementation of HACCP: 

The goal of the scheme is to encourage the food processing industries to adopt food safety and quality assurance mechanisms such as total quality management including ISO 14000, ISO 22000 HACCP, GMP, GHP, to prepare them to face global competition in post STO Regime, to enable faithfulness to stringent quality and hygiene standards, to improve product acceptance by foreign buyers and to keep Indian industry technologically up-to-date of international best practices.

Research & Development: Main aim of this scheme is that the end product/findings of R&D work must benefit food processing industries in terms of product and process development, improved packaging, value addition and leading to advanced products and process with profitable value.

Promotional Activities: 

In the Scheme for Promotional Activities, the Ministry offers financial support for organizing pan India level Seminars/Workshops/Fair/ Exhibitions and also partake in pan India level Fair/Exhibitions spearheaded by Apex Industry Associations and Autonomous Bodies/PSUs of Govt. of India with the objective of distribution of information regarding food processing industries.

Scheme for Human Resource Development: 

Ministry of Food Processing Industries has executed the Scheme for Human Resource Development since 9th Plan and onwards to boost the supply of trained manpower/ personnel at all levels for food processing sector such as entrepreneurs, managers, sales persons, floor workers. The ministry of food processing has taken the following initiatives for policy support for food processing Industries: 

1 Formulation of the National Food Processing Policy

2 Complete de-licensing, excluding for alcoholic beverages

3 Declared as priority sector for lending in 1999

4 100% FDI on automatic route

5 Excise duty waived on fruits and vegetables processing from 2000 - 01

6 Income tax holiday for fruits and vegetables processing from 2004 - 05

7 Customs duty reduced on freezer van from 20% to 10% from 2005 - 06

8 Implementation of Fruit Products Order

9 Implementation of Meat Food Products Order

10 Enactment of FSS Bill 2005

11 Food Safety and Standards Bill, 2005

The Centre has requested state Governments to undertake the following improvements:

1 Amendment to the APMC Act

2 Lowering of VAT rates

3 Declaring the industry as seasonal

4 Integrate the promotional structure