Bengaluru: The food processing manufacturing sector is witnessing rapid growth over the past few years, it is dubbed as one of the sectors with great potential for growth and job creation for skilled and semi-skilled workforce.
According to the data, in the last five years, this sector witnessed 10% growth, which is the highest among the major sectors of the country. It has pipped the manufacturing sector and agricultural sector which are considered as the backbone of the Indian economy.
According to the data, in the financial year 2014-15, the gross value of the sector was Rs 1.34 lakh crores. It was increased to Rs 1.61 lakh crores in the next year. In the financial year 2016-17, it reached Rs 1.79 crores. But in the financial year 2017-18, it further increased to Rs 1.91 lakh crores. In the year 2018-19, it reached a historical high of Rs 2.08 lakh crores. These details are shared by the Union Minister for Food Processing Industries Jagathrakshakan in the recently concluded Lok Sabha session.
According to the data, the annual average growth rate in the food processing sector during this period has been 10% compared to 8.3% & 3.1% in manufacturing, agriculture and allied sectors respectively. But this means the food processing sector has become an important growth factor of our economy.
About central government scheme
According to the Minister, the central government has taken a number of measures and has been implementing several schemes to ensure higher processing levels and augment the growth in FPI sector. One of the important schemes among them is the Pradhan Mantri Kisan Sampada Yojana (PMKSY). As part of this initiative, for the overall growth and development of the food processing sector, including increasing the preservation and processing capacity, various support programs have been implemented. According to the authorities, this scheme consists of a number of sub-schemes. The main objective of this scheme is minimizing the post-harvest losses and increasing the extent of processing and ensure higher realization for the farmers. This means the farmers can add value to their products and can ensure a better rate in the market. For the value-added product, India has a huge market.
According to the FPI sector insiders, the central government has launched several initiatives to strengthen the sector and ensure more finance for the entrepreneurs. One of the important schemes among them is one district- one product scheme.
According to the minister, as part of the Self-Reliance India initiative, his ministry is upgrading two lakh micro-food processing units based on credit-linked subsidies. And alsoimplementing a centrally sponsored scheme-PM Micro Food Processing Enterprise Scheme (PM FME). But which on a district and one product (ODOP) approach.
Under this ODOP scheme, in Karnataka, 30 districts have been identified for the value addition of 30 products. For example, Bengaluru Urban has been identified for the bakery Products. But while Bengaluru Rural district has been identified for the Poultry Products.
The government has also created a GIS document showing the products allotted for each district. Because the scheme is being implemented by various state government agencies. The enthusiasts are trained in the sector to launch their value-added products.
Other major schemes announced by the central government
Adding to this, the central government recently announced a Production Linked Incentive (PLI) scheme for the food processing sector to support. The creation of global food manufacturing champions and boosting domestic manufacturing and promoting exports.
Other major schemes announced by the central government include a special food processing fund of Rs. 2000 crore to provide affordable credit for investments in setting up Mega Food Parks (MFP) as well as processing units in the MFPs.
In 2019, the coverage of the fund was extended to the setting up of Agro-Processing Clusters. And also individual manufacturing units within them. But now the food & agro-based processing units and cold chain are notified. As to the agricultural activity under Priority Sector Lending (PSL) to improve the availability of credit.
As a measure towards improving ease of doing business. The FSSAI, through notifications in 2016 has shifted from product-by-product approval to an ingredient and additive based approval process.
Along with these, but now 100 percent FDI under automatic route has been permitted for the food processing sector. The 100% FDI under the government approval route has been allowed for retail trading. And including e-commerce, in respect of food products manufactured/ produced in India.
