ri lt re and ood ana ement 8.51
processing has come a long way in the last few of beer and alcoholic drinks, and items
decades. The everchanging lifestyles, food habits reserved for the small scale sector.
and tastes of customers globally have altered the (ii) For foreign investment, automatic
dynamics of the industry. Food processing benefits approval is given even up to 100 per cent
all the sections of the society: equity for a majority of processed foods.
(i) Farmers get better returns, higher yield, (iii) For manufacture of items reserved
and lower the risks drastically; for MSEs, FDI is permissible under
(ii) Consumers get access to a greater variety, automatic route up to 24 per cent.
better prices and new products; Attractive packaging makes the product more
(iii) Economy gets benefit via creation of appealing to consumers who are therefore willing
new business opportunities, while the to pay more if the product offered is of good
workforce gets employment. quality and easy to use. The policy initiatives of the
With a huge production base, India can easily government also include assistance for opening up
become one of the leading food suppliers to the of mega food park, cold chain and development
world while at the same time serving the vast of agri-export zones, skill development and R&D
growing domestic market of over a billion people. activities. Apart from the various schemes from
India’s large market size with growing incomes the central government, various state governments
and changing life styles also creates incredible are implementing their own food processing
market opportunities for food producers, food promotion policies and schemes.
processors, machinery makers, food technologists
and service providers in this sector. contributions
Growth in the food processing sector is also The sector contributes around 10 per cent of GDP
expected to open up a lot of opportunities for in agriculture and manufacturing sector. During
players having strong linkages in the agri-value the last 5 years, FPI sector has been growing at
chain. Significant investment opportunities an average annual growth rate (AAGR) of around
are yet to be tapped in the areas of supply chain 6 per cent as compared to around 4 per cent in
management, cold storages, financing, retailing and agriculture and 7 per cent in manufacturing.
Historically, agriculture and FPI have been infrAstructure DeveloPment
plagued by factors such as:
The Ministry of Food Processing Industries
(i) Low public investment, (MoFPI) has been implementing a scheme for
(ii) Poor infrastructure, the creation of modern enabling infrastructure
(iii) Inadequate credit availability, and which includes mega food parks scheme, scheme
(iv) High levels of fragmentation. for cold chain, value addition and preservation
infrastructure and the scheme for construction
rules AnD regulAtions and modernisation of abattoirs.
Rules and regulations regarding the industry is as
given below: megA fooD PArks scheme (mfPs)
(i) Most food processing enterprises have The Mega Food Parks Scheme aims to accelerate
been exempted from industrial licensing the growth of the food processing industry in the
under the Industries (Development and country by facilitating establishment of strong
Regulation) Act, 1951 with the exception food processing infrastructure backed by an