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Growth in Food Processing Sector

Why is it in the news?

  • Processed food exports have surged by 150% over the past nine years, according to the Ministry of Commerce & Industry.

 More about the news

  • India’s Food Processing Sector has attracted Foreign Direct Investments (FDI) totalling about Rs 50,000 crore in the last nine years.
  • The processed food segment now constitutes 23% of India’s agricultural exports.
  • India boasts 158 food and agri Geographical Indications (GIs), showcasing unique regional food products.
  • Under One District One Product (ODOP) Initiative, 708 unique food items across districts have been identified, contributing to regional specialties.
  • The food processing market in India is estimated to reach $535 Billion by 2025.

Significance of Food Processing Sector

  • Value addition and reduced waste in food processing contribute to increased income for farmers.
  • The sector plays a vital role in generating employment opportunities.
  • Processed food exports contribute to earning foreign exchange.
  • Ensures food and nutritional security for the country.

Challenges in the Food Processing Sector

  • Inadequate cold storage, processing facilities, and transportation networks pose challenges.
  • Lack of trained manpower and technology hinders sector growth.
  • India experiences approximately 74 million tonnes of food wastage annually.

 Initiatives to Promote Food Processing

  • Pradhan Mantri Kisan SAMPADA Yojana: A comprehensive scheme promoting food processing.
  • Mega Food Park: Part of the initiatives, providing infrastructure and facilities.
  • One District One Product (ODOP) Initiative: Identifying unique food items to give small farmers and industries a distinct identity.
  • Production Linked Incentive Scheme: Introduced to incentivize the food processing industry.

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