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19 Apr 2025
GS Paper 6
UP Special
Day 40: The Food Processing Sector is often termed a “Sunrise sector”. Explain with reference to the Uttar Pradesh Food Processing Industry Policy, 2023. (Answer in 200 words)
Approach
- Briefly define what food processing is.
- Discuss the strength of Uttar Pradesh in the food processing sector.
- Explain the role of the Uttar Pradesh Food Processing Industry Policy 2023.
- Conclude accordingly.
Introduction
Food processing generally includes the basic preparation of foods, the process of value addition in food products, preservation, and packaging techniques. This sector has the potential to create alternate employment opportunities, improve exports and strengthen the domestic supply chain. Recognizing the immense potential of the food processing industry in promoting inclusive growth, it has been identified as one of the sunrise sectors.
Body
Role of Uttar Pradesh Food Processing Industry (FPI) Policy 2023 in boosting food processing sector:
- The government will be giving a 35% capital subsidy related to plant, machinery, and technical civil work on the establishment of new food processing units.
- Permission to purchase land (agricultural) for more than 12.5 acres for FPIs.
- 100% exemption from stamp duty for the land purchased for the establishment of the food processing industry.
- Exemption from Mandi fees and cess for agricultural produce directly sold to processing units by farmers and also for the agricultural produce procured from other states for processing in Uttar Pradesh.
- Sponsoring studies for certifying/declaring an area disease-free (potato – Agra & Kannauj; Durum wheat-Bundelkhand).
- 50% subsidy on solar power utilities in rural areas and 90% subsidy for women entrepreneurs in the same category for electricity supply to processing units.
- Subsidy of 35% for infrastructure pertaining to Cold Chain and Value Addition.
- The entire State will be considered as a single unified market for food processing industries with respect to payment of mandi fees and cess. License holders of any mandi in the state will be eligible to work in other mandis of the state as well.
- Support (up to ₹5 crores) for modern technology adoption to food processing start-ups engaged in agricultural value chain development.
- Self Help Groups/Farmer Producer Organizations/Framers will be eligible for assistance in the form of grant (subject to a maximum limit of 50% of the total project cost or ₹50 lakh.) to promote decentralized processing and storage.
Conclusion
There is a need for a strong crop value chain with adequate funding and technology applications that will boost the food processing sector via the MSME sector. Hence, the food processing sector in Uttar Pradesh can play a significant role in mitigating rural distress by providing an alternate income opportunity to the farmers and thus, doubling their income.
