Food ecosystem in India offers colossal open doors for investments with stimulating development in the food retail sector, good financial strategies, and appealing monetary motivators. The Government of India through the Ministry of Food Processing Industries (MoFPI) is additionally finding a way to help interests in the food processing industry. The administration has authorized 42 Mega Food Parks (MFPs) to be set up in the nation under the Mega Food Park Scheme. Right now, 12 Mega Food Parks has turned out to be useful.100% FDI is allowed under the programmed course in Food preparing ventures.
According to one of the estimated India’s present food processing industry is assessed at USD 130 Billion and anticipated that would pull in immense domestic and foreign investment. A portion of the key variables which are probably going to expand the demand for processed food and subsequently the food processing industry in the coming years are :
- India is a nation of over 1.25 billion population. With increasing middle class comprising a substantial disposable income, the domestic market offers 1.25 billion opportunities for the segment.
- India positions no 1 in the world in the production of milk, ginger, ghee, bananas, papayas, guavas, and mangoes. Additionally, India positions no 2 in the world in the manufacturing of wheat, rice, and several other fruits and vegetables. If the excess manufacturing of cereals, vegetables, fruits, fish, milk, meat, and poultry, etc are processed and marketed both inside and outside the nation, there will be larger opportunities for the development of the sector.
- Due to fast urbanization, food propensities are changing quickly towards value oriented foods. The change is complemented by the way that more than 65% of India’s populace is 35 or under, who are slanted to have processed food.
- Next, to China, India is among the quickest developing economies on the planet. The ongoing quantum bounce in the simplicity of working together positioning of the World Bank shows the favorable business atmosphere in the nation and anticipated that would pull in outside speculation into this sector
- According to an estimation, around 40 percent of aggregate food production is squandered because of the lack of facilities for transportation, processing, storage, and marketing. On the off chance that these lacks are tended to, there is a gigantic chance for the advancement of the sector.
To take benefit of the above-described aspects, the Government has started the accompanying measures for the advancement of the food processing sector.
- Pradhan Mantri Kisan Sampada Yojana (PMKSY): In August 2017, the CCEA gave its gesture for the PMKSY. It is an umbrella plan that consolidates different progressing plans like Mega Food Parks, Integrated Cold Chain, Value Addition Infrastructure, Food Safety, and Quality Assurance Infrastructure, Infrastructure for Agro-processing Clusters, Creation of Backward and Forward Linkages and Creation and Expansion of Food Processing and Preservation Capacities.
- Mega Food Parks Scheme: It goes for giving a component to interface rural generation to the market by uniting farmers, processors and retailers amplify value addition, limiting wastage, expanding income of farmers and creating employment opportunities especially in the rural sector. A Mega Food Park involves a territory of at least 50 sections of land and works in a group constructed approach situated in light of a center and spokes model.
- Scheme of Cold Chain, Value Addition and Preservation Infrastructure: The goal of the scheme is to give incorporated cool chain and conservation framework facilities, with no break, from the farm gate to the customer. It envelops pre-cooling facilities at production sites, reefer vans, mobile cooling units as well as value addition hubs
- Modernization of Abattoirs scheme: The major goal of the Scheme is a form of processing and preservation capacities and modernization and growth of obtainable food processing units with a vision to increase the level of processing, value addition leading to a diminution of wastage.
- Make In India: A portion of the Make In India campaign, the food processing sector was recognized as one of the 25 concentrated areas. Therefore, the policy, ecosystem has been refurbished to draw financial, technological and human resources into the zone. Allowing 100% FDI via automatic direction into this sector is also an important footstep in this direction.
- Food Processing Fund: A special fund in the NABARD worth INR 2,000 crore, chosen as the Food Processing Fund, was set up in the FY 2014-15 for offering reasonable credit for food processing units in Mega & Designated Food Parks.