the policy taken by the government of India to meet the challenges of the food processing sector

Almost more than 60% of India’s population is directly or indirectly dependent upon agriculture and allied activities, but contributes only about 17% to the GDP. For a country like India which has a vast population to feed and maximum workforce is dependent on agriculture, it becomes imperative to increase productivity in this sector. Food processing sector is one of the sectors which can increase the quality of the produce as well as its value. For it, Government of India has launched numerous initiatives. 

Initiatives taken by government to develop food processing sector in India 

• Mega Food Parks: Under this scheme, government provides capital grants of 50% for all states and 75% to special status states. Since its inception, 42 mega food parks were given in-principle approval. However, only five projects have started operations, including the North East Mega Food Park in Assam. Hence, it can’t be called a proper success. Whereas, its predecess or Food park scheme was quite successful. 

• Pt. Deen Dayal Upadhayay Vigyan Gram Sankul Pariyojana: This scheme was launched specially for remote villages of Uttarakhand, where transportation facilities were not adequate. The areas selected under these clusters will process and add value to milk, honey, horticulture and local crops, herbal tea, mushroom, forest produce, medicinal & aromatic plants and traditional craft and handloom. This project will also ensure stringent product and process control interventions for energy and water conservation. 

• Including all processing sector under one scheme ‘SAMPADA’: Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters (SAMPADA) is an umbrella scheme for processing industries for administrative convenience. It aims to integrate cold chain and value addition infrastructure, food safety and quality assurance infrastructure, etc. and also new schemes like infrastructure for agro-processing clusters, creation of backward and forward linkages, creation/expansion of food processing & preservation capacities. 

• Agriculture Export Policy: It aims to double the agricultural produce by 2022 by a holistic approach to boost exports which includes development of forward and backward linkages and value addition through processing. It aims to boost investment in food processing sector. 

• APEDA: Agriculture Processing and Export Development Authority sector to assures quality of the processed agricultural produce to make it export oriented. 

• Subsidy by NABARD: In case of setting up of agriculture-based processing unit in rural areas, such as flour mills, rice mills, etc. government provides 30% subsidy of project cost through National Bank of Agricultural and Rural Development. 

Apart from it there is constant urge by government to develop milk processing units through Dairy Development and Infrastructure fund. These steps are necessary to achieve the government’s aim of doubling the farmer’s income and agricultural export by 2022. Apart from it, this will help India to achieve food security and sustainable development goals related to Zero Hunger and No poverty