Important Topic: Food Processing Sector in India

Important Topics for Competitive Exams

Important Topic


Food Processing Sector has emerged as an important segment of the Indian economy in terms of its contribution to GDP, employment and investment. During 2015-16, the sector constituted as much as 9.1 and 8.6 per cent of GVA in Manufacturing and Agriculture sector respectively.

Various measures have been taken by the government to give a boost to the food processing sector. With these measures food processing sector has grown at 7 per cent. In order to arrest post-harvest losses of horticulture & non-horticulture produce, the Ministry has accorded approval to 42 Mega Food Parks and 236 Integrated Cold Chains for creation of modern infrastructure for the food processing along the value chain from the farm to the market. Out of 42 Mega Food Parks, 8 are operational.

Government has taken various other measures to boost food processing sector as follows:

A. To provide impetus to investment in food processing and retail sector, govt. has allowed 100% FDI in trading including through e-commerce, in respect of food products manufactured and / or produced in India. This will benefit farmers immensely and will create back end infrastructure and significant employment opportunities.

B. The govt. has also set up a Special Fund of Rs. 2000 crore in NABARD to make available affordable credit at concessional rate of interest to designated food parks and agro processing units in the designated food parks.

C. Food and agro–based processing units and cold chain infrastructure have been brought under the ambit of Priority Sector Lending (PSL) to provide additional credit for food processing activities and infrastructure thereby, boosting food processing, reducing wastage, create employment and increasing farmers’ income.

Recently Government of India launched a central sector scheme SAMPADA to give a renewed thrust to the food processing sector in the country.

SAMPADA scheme is an umbrella scheme which incorporates all the ongoing schemes aimed at reducing food wastage and doubling farmer’s income by 2022. It has been renamed to Pradhan Mantri Kisan Sampada Yojana (PMKSY). The objective of PMKSY is to  supplement agriculture, modernize processing and decrease agricultural waste. It was launched by Ministry of Food Processing Industries.



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