Mains Practice Questions

Introduction

The food processing industry plays a pivotal role in transforming India’s agricultural economy. As a sunrise sector, it enables value addition, reduces wastage, and supports farmers and rural enterprises, making it a powerful engine for economic growth and employment generation.

Body

Reducing Post-Harvest Losses:

• Development of cold chains, processing units, and preservation infrastructure under schemes like PMKSY has significantly reduced agri-waste.
• NABCON evaluation found waste reduction of up to 70% in fisheries and 85% in dairy products.
• 1087 operational PMKSY projects have created a processing capacity of 241.94 lakh MT, preserving perishable produce and minimizing loss.
• 50 irradiation projects and 100 new food testing labs are being supported to improve shelf life and safety.

Enhancing Farmers’ Income:

• PMKSY has benefited around 51 lakh farmers by creating market linkages and ensuring better farm gate prices.
• Processed food exports increased to 23.4% of agri-exports in 2023-24, reflecting higher value realization.
• One District One Product (ODOP) under PM Formalisation of Micro food processing Enterprises (PMFME) Scheme empowers local producers and adds value to traditional agri-products.
• Rs. 254 crore seed capital sanctioned in 2024 under PMFME to support SHG-led enterprises.

Generating Employment Opportunities:

• Food processing contributes 12.41% of employment in the organized manufacturing sector (ASI 2022-23).
• PMKSY has created 7.46 lakh jobs (direct/indirect) through 1646 approved projects.
• PLISFPI Scheme attracted ₹8910 crore investment and generated 2.89 lakh jobs across high-growth food segments.
• 46,643 loans sanctioned under PMFME in 2024 alone, supporting micro enterprises and rural entrepreneurship.
• The Ministry of Food Processing Industries (MoFPI) supports Self-Help Groups (SHGs) through schemes like PMFME, providing seed capital up to ₹40,000 per member and a credit-linked grant of up to ₹10 lakh.
  • SHGs are also eligible for assistance under PMKSY, enhancing their role in rural economic growth.

Conclusion

With strong policy support, rising investments, and expanding infrastructure, the food processing sector can reduce agri-waste, boost farmer incomes, and create off-farm employment, advancing rural development, economic growth, and SDG 2 (Zero Hunger). Leveraging technology like AI in supply chain management can further enhance efficiency, sustainability, and food security.