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