Q14. Examine the scope of the food processing industries in India. Elaborate the measures taken by the government in the food processing industries for generating employment opportunities.
Possible Introductions
Definitional framing:
Food processing refers to the transformation of raw agricultural produce into value-added products for consumption, storage, or trade. It links farms with markets and is a critical driver of agricultural modernization.
Contextual framing (India):
India, the largest producer of milk, pulses, spices, and the second-largest producer of fruits, vegetables, and cereals, has an unmatched raw material base for food processing industries.
Current affairs framing:
The food processing sector accounts for 12% of manufacturing GDP, has attracted over USD 6 billion FDI since 2014, and provides employment to over 20 lakh people (MoFPI, 2024).
Directive Analysis
“Examine the scope” → requires assessment of opportunities in terms of production, exports, rural development, and employment.
“Elaborate measures” → requires discussion of key government schemes and initiatives to promote food processing and jobs.
Body of the Answer
1. Scope of Food Processing Industries in India
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- Agricultural Backbone: India’s vast and diverse agricultural base ensures year-round supply for processing.
- Rising Demand: Urbanisation, rising incomes, and lifestyle changes boost demand for processed foods.
- Employment Potential: Labour-intensive industry with multiplier effects in logistics and retail.
- FDI and Technology Transfer: Billions in FDI have brought global players into India’s agri value chain.
- Entrepreneurship & Rural Development: Supports FPOs, SHGs, and cooperatives in rural areas.
- Reducing Wastage & Enhancing Farmer Income: Cold chains, mega food parks, and processing minimise post-harvest losses.
- Nutritional Security: Fortified and packaged food processing aids in tackling malnutrition.
2. Government Measures for Promotion & Employment Generation
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- Pradhan Mantri Kisan SAMPADA Yojana (PMKSY): Umbrella scheme covering food parks, cold chains, agro-processing clusters, and backward-forward linkages.
- PM Formalisation of Micro Food Processing Enterprises (PM-FME): Supports 2 lakh enterprises with subsidies under “One District One Product” approach.
- Production Linked Incentive (PLI) for Food Processing: Encourages investments in ready-to-eat, organic products, and exports.
- Mega Food Parks Scheme: Cluster-based plug-and-play model for value addition and rural employment.
- Operation Greens: Price stabilisation for tomato, onion, potato, extended to other perishables.
- Skill Development: Food Industry Capacity & Skill Initiative (FICSI) trains youth for industry jobs.
- FDI Policy: 100% FDI under automatic route in processing; 100% in retail of processed items.
- Inclusive Growth Measures: Focus on FPOs, SHGs, and cooperatives; special incentives for rural processing units.
X-Factor: Government aims to formalise nearly 75% of the unorganised sector through PM-FME, massively expanding employment opportunities.
Possible Conclusions
Future-oriented:
If implemented effectively, India’s food processing sector can become the engine for doubling farmers’ income, creating jobs, and boosting exports.
Policy-oriented:
Convergence of MoFPI schemes with agri-marketing reforms, logistics, and skilling will unlock the sector’s full potential.
Philosophical:
Food processing symbolises the journey from “grow more” to “earn more,” ensuring prosperity from farm to fork.
