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Chapter 9: Food Processing Industries
Chapter Test9 topics•Estimated reading: 27 minutes
Food Processing Industries
Key Point
The Food Processing Industry converts raw farm products (like grains, fruits, vegetables, milk, meat) into consumable, packaged or ready-to-eat food using physical, chemical, and mechanical methods. It connects agriculture with industry, creates jobs, reduces food wastage, and contributes to exports.
The Food Processing Industry converts raw farm products (like grains, fruits, vegetables, milk, meat) into consumable, packaged or ready-to-eat food using physical, chemical, and mechanical methods. It connects agriculture with industry, creates jobs, reduces food wastage, and contributes to exports.
Detailed Notes (21 points)
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Overview
Food Processing means turning raw crops or livestock into usable food. It can be as simple as grinding wheat into flour, or as advanced as making instant noodles in factories.
The Ministry of Food Processing Industries governs this sector in India.
It plays a crucial role in India’s growth by reducing wastage of perishable goods, adding value to crops, generating jobs, and boosting farmers’ income.
Growth Rate: The sector grew by an average of 8.3% annually in the five years ending FY21, faster than agriculture alone.
Exports: In 2021-22, processed food made up about 10.9% of India’s total exports.
Role and Status in India
GDP Contribution: In 2020-21, food processing contributed 10.54% of India’s manufacturing GVA and 11.57% of agriculture GVA.
Employment: About 20.32 lakh people were employed in registered units, and 51.11 lakh in unregistered small units (2019-20). Together, 70+ lakh people depend on this sector.
Linkages: Provides a bridge between farmers (producers) and industries (processors, exporters).
Types of Food Processing Techniques
Primary Processing: First step – making raw items usable (e.g., drying grain, milling wheat into flour, shelling nuts, cutting meat).
Secondary Processing: Turning those items into familiar food products (e.g., baking bread, making cheese or curd, preparing wine/beer).
Tertiary Processing: Large-scale industrial making of packaged or ready-to-eat food (e.g., instant noodles, biscuits, frozen pizzas, airplane meals).
Importance
Reduces food wastage by preserving perishable crops.
Adds value: A raw mango (₹20) when processed into pickle can sell at ₹200.
Increases farmers’ income by linking agriculture with markets.
Generates employment in both rural and urban areas.
Supports exports and foreign exchange earnings.
Provides convenience and nutrition for consumers through fortified and ready-to-eat foods.
Food Processing – Key Aspects
| Aspect | Details |
|---|---|
| Growth Rate (FY15–21) | 8.3% annually |
| Contribution to Manufacturing GVA | 10.54% (2020-21) |
| Contribution to Agriculture GVA | 11.57% (2020-21) |
| Employment (Registered Sector) | 20.32 lakh people |
| Employment (Unregistered Sector) | 51.11 lakh people |
| Share in Exports | 10.9% of India’s exports (2021-22) |
Mains Key Points
Food Processing is a critical link between agriculture and industry, reducing wastage and adding value.
It contributes significantly to GDP and employment (70+ lakh jobs).
Primary, Secondary, and Tertiary processing form the backbone of this sector.
It improves nutrition, provides convenience, boosts exports, and supports farmers.
Challenges include poor storage, infrastructure gaps, and high wastage of perishable goods.
Prelims Strategy Tips
Food Processing Industry governed by Ministry of Food Processing Industries (MoFPI).
Sector grew faster than agriculture – 8.3% vs 4.87% (2015-21).
Three levels of processing: Primary, Secondary, Tertiary.
India’s processed food exports = 10.9% of total exports (2021-22).
Supply Chain of Food Processing Sector
Key Point
The supply chain of the food processing industry is the journey of food from farms to consumers. It includes farmers (suppliers), food processing companies (manufacturers), and distribution networks (retailers, wholesalers, exporters). Each stage adds value and ensures food reaches people safely and efficiently.
The supply chain of the food processing industry is the journey of food from farms to consumers. It includes farmers (suppliers), food processing companies (manufacturers), and distribution networks (retailers, wholesalers, exporters). Each stage adds value and ensures food reaches people safely and efficiently.
Detailed Notes (15 points)
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What is a Supply Chain?
A supply chain is a network that connects the origin of food to the final consumer.
It covers every step from raw material (farms) → processing (factories) → storage and transport → retail and export → consumers.
Stages of Food Processing Supply Chain
Suppliers (Farmers): Provide raw materials like grains, fruits, vegetables, milk, meat, etc.
Companies (Food Processors): Factories/industries that process raw food into packaged and value-added products (e.g., flour, biscuits, juice, pickles).
Distribution Network: Retail shops, supermarkets, wholesalers, e-commerce platforms, and exporters deliver products to customers.
Importance of Food Processing for India
Reducing Food Wastage: Processes surplus and imperfect crops to avoid wastage. Example: NITI Aayog estimated post-harvest losses of ₹90,000 crore annually.
Developing Infrastructure: Cold storages, warehouses, and transport facilities reduce spoilage at each level.
Food Preservation: Methods like freezing, canning, dehydration help increase shelf life of perishable goods.
Tackling Malnutrition: Processed foods can be fortified with vitamins and minerals to improve nutrition levels in India.
Boosting Exports: Processed food exports add to foreign exchange earnings and strengthen India's global trade.
Employment Generation: Creates jobs for farmers, factory workers, transporters, retailers, and exporters (both direct & indirect employment).
Encouraging Crop Diversification: Demand from food processing encourages farmers to grow different crops (fruits, vegetables, pulses, oilseeds).
Supply Chain of Food Processing – Stages
| Stage | Role |
|---|---|
| Farmers (Suppliers) | Provide raw crops, milk, meat, fruits, vegetables. |
| Food Processing Companies | Convert raw materials into usable packaged products. |
| Distribution Network | Retailers, supermarkets, exporters deliver products to consumers. |
Importance of Food Processing Industry
| Aspect | Benefit |
|---|---|
| Food Wastage Reduction | Cuts annual losses (₹90,000 crore in India). |
| Infrastructure | Better storage, transport, processing reduces spoilage. |
| Nutrition | Fortification helps reduce malnutrition. |
| Exports | Boosts India’s share in global food trade. |
| Employment | Direct and indirect jobs for millions. |
| Crop Diversification | Encourages farmers to grow diverse crops. |
Mains Key Points
Food supply chain links agriculture with consumers through processing and distribution.
It reduces wastage, adds value, and supports both farmers and industries.
Employment generation is a key outcome of this sector.
Fortified foods help tackle malnutrition in India.
Challenges: Poor infrastructure, cold storage shortages, and high food wastage remain bottlenecks.
Prelims Strategy Tips
India loses about ₹90,000 crore annually in post-harvest losses (NITI Aayog).
Supply chain has 3 stages: Farmers → Processors → Distribution network.
Food processing helps reduce wastage and adds value (mango → pickle).
Important for exports, job creation, and tackling malnutrition.
Key Factors Driving Growth of Food Processing Industry
Key Point
India’s food processing industry is growing rapidly due to demographic dividend, rising incomes, government support, digital transformation, innovation, and agri-tech integration. These factors are reshaping demand, improving efficiency, and boosting exports.
India’s food processing industry is growing rapidly due to demographic dividend, rising incomes, government support, digital transformation, innovation, and agri-tech integration. These factors are reshaping demand, improving efficiency, and boosting exports.
Detailed Notes (19 points)
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1. Demographic Dividend Driving Demand
India has a young population – 65% are under the age of 35.
Rising incomes and urbanisation are changing food habits from home-cooked meals to processed and ready-to-eat options.
Example: The processed food market in India was worth USD 263 billion in 2019-20 and is expected to grow to USD 470 billion by 2025.
2. Digital Revolution – From Farm to Plate
Digitalisation is making the food supply chain more efficient by connecting farmers directly to processors and retailers.
Example: Ninjacart, a B2B platform, directly connects farmers with businesses, reducing middlemen and wastage.
Initiatives like Digital India are enabling real-time tracking, e-commerce, and transparent pricing.
3. Government Policies Driving Growth
Strong policy support has made food processing a priority sector.
Example: Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) launched in 2021 with ₹10,900 crore allocation to boost manufacturing and exports.
100% FDI (Foreign Direct Investment) through automatic route has attracted global companies to invest in India.
4. Innovation Fuels Success
Companies are launching new, healthier, and convenience-driven products to meet changing consumer demands.
Example: ITC’s ‘Farmland’ frozen foods offer preservative-free, minimally processed products, which gained popularity in FY 2023-24.
5. Agri-Tech Boosting Food Processing
Agri-tech startups are modernising agriculture through AI, IoT, and satellite monitoring.
Example: CropIn uses AI and satellite data to improve crop yield and quality, ensuring processors get consistent raw materials.
In 2023 alone, agri-tech startups raised over USD 706 million, reflecting huge growth potential.
Factors Driving Food Processing Industry
| Factor | Explanation |
|---|---|
| Demographic Dividend | Young population, urbanisation, and rising incomes increase demand for processed foods. |
| Digital Revolution | Tech platforms connect farmers with businesses, reducing middlemen and wastage. |
| Government Policies | Schemes like PLISFPI and 100% FDI boost investments and exports. |
| Innovation | New healthy and convenient products reshape consumer choices. |
| Agri-Tech | AI and digital tools improve crop quality and supply chain efficiency. |
Mains Key Points
Demographic dividend and rising incomes are reshaping food demand patterns in India.
Digital platforms are improving efficiency and reducing wastage in food supply chains.
Government incentives like PLISFPI and 100% FDI are attracting global investments.
Innovation in product lines is meeting new consumer preferences (health, convenience).
Agri-tech is a game changer, ensuring quality supply and boosting the processing sector.
Prelims Strategy Tips
Processed food market in India projected to grow to USD 470 billion by 2025.
Ninjacart is a major digital supply chain platform connecting farmers to businesses.
PLISFPI launched in 2021 with ₹10,900 crore allocation.
Agri-tech startups raised USD 706 million in 2023.
Export Potential and Global Competitiveness of Indian Processed Foods
Key Point
India exports over 10,000 products globally, with food and agricultural products contributing about 11% of total exports. India’s agri-exports were $52.5 billion in 2022-23 and are expected to reach $100 billion by 2030, with major items like rice, sugar, spices, and marine products leading the basket.
India exports over 10,000 products globally, with food and agricultural products contributing about 11% of total exports. India’s agri-exports were $52.5 billion in 2022-23 and are expected to reach $100 billion by 2030, with major items like rice, sugar, spices, and marine products leading the basket.
Detailed Notes (29 points)
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Export Potential of Indian Processed Foods
India is the 18th largest exporter in the world with around 1.8% share in global merchandise exports.
Food and agricultural products contribute nearly 11% to India’s total exports, showcasing their critical role in foreign trade.
Agricultural exports were valued at $52.5 billion in 2022-23, up from $50.21 billion in 2021-22.
The government has set a target to almost double these exports to $100 billion by 2030.
Major export products: basmati & non-basmati rice, sugar, spices, oil meals (together 51.5% of total agri-exports).
Other exports: coffee, tea, tobacco, fruits, juices, vegetables, dairy, live animals, buffalo meat, marine products.
Challenges in Global Competitiveness
# 1. Fragmented Supply Chain
86% of Indian farmers are small and marginal, making aggregation difficult.
Farmers get only 30-35% of final value compared to 65-70% in developed economies.
# 2. Regulatory Labyrinth
Multiple regulators like FSSAI, APEDA, BIS, and state agencies cause overlaps and delays.
This complex regulatory system creates hurdles for exporters and small processors.
# 3. Infrastructure Deficit
Despite being 2nd largest fruit & vegetable producer, 25-30% produce is wasted annually.
Reason: inadequate cold chain, storage, and transportation facilities.
# 4. Skills Gap
Only 3% of the food processing workforce has formal training.
Lack of industry-academia collaboration causes shortage of skilled workers.
# 5. Quality Standards Issue
Inconsistent quality and weak enforcement of FSSAI standards hurt exports.
Small processors often cannot meet strict global quality benchmarks.
Way Forward
Leverage smart technologies (IoT, AI, robotics, automation) to boost efficiency and cut waste.
Focus on horticulture and animal products—India should aim to lead in at least 5 value chains (fruits & vegetables, fish & seafood, meat, dairy, poultry & eggs) by 2047.
Develop skilled manpower in food technology, safety, and processing methods.
Strengthen food packaging and labeling with clear health markers and enforce stronger safety standards.
Promote nutrient-rich grains like millets (declared International Year of Millets 2023) to tap into global health food demand.
India’s Food Export Profile
| Category | Share/Details |
|---|---|
| Global Rank | 18th largest exporter (1.8% share in world exports) |
| Agri-export value 2022-23 | $52.5 billion |
| Target by 2030 | $100 billion |
| Top Products | Rice, sugar, spices, oil meals (51.5% share) |
| Other Exports | Coffee, tea, tobacco, fruits, vegetables, dairy, meat, seafood |
Mains Key Points
India has strong export potential with $52.5 billion agri-exports and a $100 billion target by 2030.
Fragmented supply chain, poor cold chain, and regulatory complexity reduce competitiveness.
Only 3% workforce in food processing has formal training—major skill gap exists.
Smart technologies, skilled manpower, and better regulations can boost global competitiveness.
Millets and other climate-resilient crops present future export opportunities.
Prelims Strategy Tips
India’s agri-exports in 2022-23: $52.5 billion.
Food products contribute ~11% of India’s exports.
Top export items: rice, sugar, spices, oil meals.
Target: $100 billion agri-exports by 2030.
India loses 25-30% fruits & vegetables due to poor cold chain.
Government Policy Initiatives and Measures for Food Processing Industry
Key Point
The Government of India has launched several missions, schemes, and reforms to strengthen the food processing industry. These initiatives focus on decentralisation, investment promotion (FDI), infrastructure development, safety regulations, and formalisation of micro-enterprises.
The Government of India has launched several missions, schemes, and reforms to strengthen the food processing industry. These initiatives focus on decentralisation, investment promotion (FDI), infrastructure development, safety regulations, and formalisation of micro-enterprises.
Detailed Notes (16 points)
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National Mission on Food Processing (NMFP)
Launched in 2012 as a Centrally Sponsored Scheme (CSS) by Ministry of Food Processing Industries (MoFPI).
Aim: To decentralise implementation of food processing-related schemes by creating national, state, and district-level missions.
States and Union Territories were given larger roles in planning, monitoring, and executing policies.
Enhanced Ministry’s outreach for effective policy-making and oversight in food processing.
Foreign Direct Investment (FDI) Initiatives
100% FDI allowed in food marketing and processing through automatic route to attract foreign capital.
Focus: Strengthen supply chain infrastructure, logistics, and e-commerce in food sector.
FSSAI: Announced ₹482 crore investment to upgrade 59 existing food labs and establish 62 mobile testing labs to ensure safety and quality.
International Standards: Indian Council for Fertilizer and Nutrient Research (ICFNR) to adopt global best practices for ensuring quality fertilisers and food security.
Prime Minister’s Formalisation of Micro Food Processing Enterprises (PMFME) Scheme
Launched in 2020 under Atmanirbhar Bharat Abhiyan.
Objective: To formalise and strengthen the unorganised micro food processing enterprises.
Target: Upgrade/establish 2 lakh micro units by providing financial, technical, and business support.
ODOP (One District One Product) Approach: Promotes district-specific products, helping scale-up branding, marketing, and shared infrastructure.
Progress: By Dec 2022, 15,095 loans worth ₹1402.6 crore sanctioned; 713 districts and 137 products identified under ODOP.
Key Government Initiatives for Food Processing
| Initiative | Year | Objective |
|---|---|---|
| National Mission on Food Processing (NMFP) | 2012 | Decentralisation of schemes; state & district role |
| FDI in Food Sector | Liberalised in 2016+ | 100% FDI via automatic route; supply chain strengthening |
| PMFME Scheme | 2020 | Formalise micro-units; ODOP approach; 2 lakh enterprises support |
Mains Key Points
Government initiatives decentralise food processing through NMFP, enhancing state-level accountability.
100% FDI policy boosts global investment and improves supply chain infrastructure.
PMFME formalises unorganised micro-units, enhances competitiveness, and promotes ODOP branding.
Food safety measures like FSSAI lab upgradation improve export potential and consumer confidence.
Together, these policies aim to modernise the sector, reduce waste, and increase employment.
Prelims Strategy Tips
NMFP launched in 2012 to decentralise food processing schemes.
100% FDI allowed in food processing and retail via automatic route.
FSSAI invested ₹482 crore in labs and mobile testing units.
PMFME launched in 2020 under Atmanirbhar Bharat with ODOP approach.
Pradhan Mantri Kisan SAMPADA Yojana (PMKSY)
Key Point
PMKSY (Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters) was approved in 2017 to modernize infrastructure, reduce food wastage, and strengthen supply chains from farm to retail. By Dec 2022, 677 projects had been completed.
PMKSY (Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters) was approved in 2017 to modernize infrastructure, reduce food wastage, and strengthen supply chains from farm to retail. By Dec 2022, 677 projects had been completed.
Detailed Notes (28 points)
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Objectives of PMKSY
Create modern infrastructure for food processing and supply chain management.
Support farmers, cooperatives, entrepreneurs, and investors through facilities like cold storage, warehouses, and packaging units.
Encourage food processing plants near agricultural areas to reduce transport cost and post-harvest losses.
Provide government grants: 35% of approved project cost (50% in North-Eastern and Himalayan states).
Schemes under PMKSY
# 1. Mega Food Parks
Financial assistance up to ₹50 crore per project.
Provide plug-and-play infrastructure for food processors, entrepreneurs, and businesses.
Benefits: job creation, service improvement, and reduced processing costs.
# 2. Cold Chain and Value Addition Infrastructure
Aim: Create integrated cold chain from farm gate to consumer without any break.
Helps preserve perishable commodities like fruits, vegetables, dairy, fish, and meat.
# 3. Creation/Expansion of Food Processing/Preservation Capacities (Unit Scheme)
Supports new processing units and expansion of existing ones.
Encourages value addition, improves shelf life, and reduces wastage.
# 4. Infrastructure for Agro-Processing Clusters
Cluster-based approach near production areas.
Provides modern infrastructure and shared facilities to encourage group entrepreneurship.
# 5. Creation of Backward and Forward Linkages
Plug gaps in supply chain by integrating raw material availability with markets.
Strengthens connections between farmers and processors.
# 6. Food Safety and Quality Assurance Infrastructure
Establish quality surveillance and testing systems.
Ensures consumer safety and boosts export competitiveness.
# 7. Human Resources and Institutions
Supports R&D in food processing industry.
Focus on product and process development, efficient technologies, and better packaging.
Schemes under PMKSY
| Scheme | Objective/Benefit |
|---|---|
| Mega Food Parks | ₹50 crore support; job creation; shared facilities |
| Cold Chain Infrastructure | Integrated cold chain from farm to consumer |
| Unit Scheme | Expansion of processing capacity; reduce wastage |
| Agro-Processing Clusters | Cluster approach near production areas |
| Backward & Forward Linkages | Stronger farm-to-market integration |
| Food Safety Infra | Quality testing & assurance |
| Human Resources & R&D | Efficient tech and packaging innovations |
Mains Key Points
PMKSY integrates multiple schemes under one umbrella to reduce food wastage and strengthen value chains.
Mega Food Parks and Cold Chains improve infrastructure and logistics efficiency.
Cluster-based approach encourages entrepreneurship near production areas.
Food Safety infra and R&D ensure higher quality standards and innovation.
Critical for doubling farmers’ income and boosting India’s agri-exports.
Prelims Strategy Tips
PMKSY approved in 2017; full form: Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters.
Provides 35% project grant (50% in NE and Himalayan states).
Includes Mega Food Parks, Cold Chains, Agro-Processing Clusters, and R&D.
By Dec 2022: 677 projects completed.
Schemes Supporting Food Processing Industry
Key Point
India has introduced multiple schemes like the Production Linked Incentive (PLI), Operation Greens, Gram Samriddhi Yojana, TRIFOOD Project, and the NABARD Food Processing Fund to strengthen the food processing industry, reduce wastage, increase exports, and improve farmer incomes.
India has introduced multiple schemes like the Production Linked Incentive (PLI), Operation Greens, Gram Samriddhi Yojana, TRIFOOD Project, and the NABARD Food Processing Fund to strengthen the food processing industry, reduce wastage, increase exports, and improve farmer incomes.
Detailed Notes (30 points)
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Production Linked Incentive Scheme (PLISFPI)
Launched in March 2022 to incentivize investments and create global food champions.
Focus areas: Marine products, processed fruits & vegetables, Ready-to-Eat (RTE) / Ready-to-Cook (RTC) products.
Phase-I: 149 applications approved; Phase-II: 33 applications (organic and millet-based).
Special Millet PLI Scheme with ₹800 crore outlay was also introduced.
# Objectives:
Create global food manufacturing champions.
Promote Indian brands internationally.
Generate employment in off-farm jobs.
Provide remunerative prices for farmers’ produce.
Operation Greens
Announced in Union Budget 2018-19; initially focused on Tomato, Onion, Potato (TOP).
Expanded in 2021-22 to 22 perishable products.
Two Components:
Long-term: Value Chain Development Projects (investment in logistics, storage, processing).
Short-term: Price Stabilisation Measures (50% subsidy on transport & storage of surplus produce).
Gram Samriddhi Yojana
A ₹3000 crore World Bank-supported scheme.
Aims to strengthen unorganised rural food processing sector.
Focus areas: Upgrading technology, capacity-building, skill development, entrepreneurship, and farm-to-market linkages.
Targets cottage industries, farmer producer organisations (FPOs), and rural food processors.
TRIFOOD Project
Joint initiative by TRIFED, Ministry of Food Processing Industries (MoFPI), and Ministry of Tribal Affairs.
Focuses on tribal communities to increase incomes of forest gatherers.
Helps value addition in Minor Forest Produce (MFP) through processing and better market access.
Food Processing Fund (by NABARD)
Set up with corpus of ₹2000 crore.
Provides affordable loans to units in Mega Food Parks & Designated Food Parks.
Supports setting up new units, expansion, modernization, and working capital needs.
Offers both term loans and working capital at concessional rates.
Key Schemes for Food Processing Industry
| Scheme | Year/Outlay | Focus Area |
|---|---|---|
| PLI for Food Processing | 2022; ₹10,900 crore + ₹800 crore (millets) | Marine, fruits, vegetables, RTE/RTC, millet-based products |
| Operation Greens | 2018-19; expanded 2021-22 | TOP crops → 22 perishables; storage & transport subsidy |
| Gram Samriddhi Yojana | 2020s; ₹3000 crore (World Bank) | Rural, unorganised food processors |
| TRIFOOD Project | Ongoing | Tribal forest gatherers; MFP processing |
| Food Processing Fund | By NABARD; ₹2000 crore corpus | Affordable loans for units in Mega Food Parks |
Mains Key Points
PLI Scheme builds global champions in food manufacturing and boosts farmer incomes.
Operation Greens reduces volatility in perishable crops market.
Gram Samriddhi Yojana supports rural unorganised food processors.
TRIFOOD adds value to forest produce, benefitting tribal communities.
NABARD Food Processing Fund ensures affordable financing in Mega Food Parks.
Prelims Strategy Tips
PLI for Food Processing launched in 2022; millet-based PLI added later.
Operation Greens initially for TOP crops; expanded to 22 perishables.
Gram Samriddhi Yojana is World Bank funded.
TRIFOOD focuses on Minor Forest Produce (MFP) and tribal incomes.
NABARD Food Processing Fund corpus: ₹2000 crore.
Draft New Food Processing Policy, Krishi UDAN 2.0 and NABARD’s Role
Key Point
The Draft National Food Processing Policy (2021) aims to transform India's food processing sector with higher investments, sustainability, and competitiveness. Complementary schemes like Krishi UDAN 2.0 and NABARD’s financing initiatives further strengthen food logistics, storage, and processing infrastructure.
The Draft National Food Processing Policy (2021) aims to transform India's food processing sector with higher investments, sustainability, and competitiveness. Complementary schemes like Krishi UDAN 2.0 and NABARD’s financing initiatives further strengthen food logistics, storage, and processing infrastructure.
Detailed Notes (21 points)
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Draft National Food Processing Policy (2021)
Announced on 10th December 2021 by Ministry of Food Processing Industries.
Goal: Increase investments in food processing sector six-fold by 2035.
# Key Objectives:
1. Attain higher growth through investment in supply chain infrastructure & perishables’ processing capacity.
2. Improve competitiveness via technology upgrades, R&D, branding, and leveraging India’s unique strengths.
3. Ensure sustainability through efficient use of water & energy, adoption of eco-friendly technologies, better storage & packaging, and waste utilisation.
Krishi UDAN 2.0 (October 2021)
Aimed at transporting perishable food products (horticulture, fisheries, livestock, processed food) from hilly, north-eastern, and tribal regions.
Pilot project launched for six months.
Airports Authority of India (AAI) provides full waiver on landing, parking, and navigational charges for Indian cargo aircrafts.
Helps farmers increase value realisation by improving connectivity to markets.
Role of NABARD in Food Processing & Storage
# Food Processing Fund (FPF):
Launched in 2014–15.
Provides affordable credit to public & private investors for Designated Food Parks (DFPs).
Supports infrastructure development inside food parks like processing units, storage, cold chain, packaging, etc.
# Warehouse Infrastructure Fund (WIF):
Provides financial support to state governments, agencies, and corporations to build scientific warehouses.
Later expanded to include storage infrastructure in APMCs as eligible projects.
Objective: reduce post-harvest losses, improve food security, and strengthen supply chain.
Key Initiatives for Food Processing Sector
| Scheme/Policy | Year | Focus Area |
|---|---|---|
| Draft Food Processing Policy | 2021 | Investment growth, sustainability, competitiveness |
| Krishi UDAN 2.0 | 2021 | Transport of perishables from remote regions |
| NABARD – Food Processing Fund | 2014-15 | Affordable loans for Designated Food Parks |
| NABARD – Warehouse Infrastructure Fund | 2010s | Scientific warehouses & APMC storage support |
Mains Key Points
Draft Policy provides a roadmap for long-term sustainable growth in food processing.
Krishi UDAN 2.0 integrates remote farmers into national supply chains, reducing wastage.
NABARD’s financing role is crucial for developing infrastructure in both food parks and warehousing.
Together, these measures address bottlenecks in logistics, storage, technology adoption, and market access.
Prelims Strategy Tips
Draft Food Processing Policy announced Dec 2021; aims to increase investment 6-fold by 2035.
Krishi UDAN 2.0: Waives charges for cargo aircraft transporting perishables.
NABARD runs two key funds – Food Processing Fund (FPF) and Warehouse Infrastructure Fund (WIF).
APMC storage projects also eligible under WIF.
Food Fortification in India
Key Point
Food fortification is the deliberate addition of micronutrients (like iron, iodine, vitamins, folic acid, zinc) to commonly consumed foods to improve public health and fight malnutrition. It is a complementary measure, not a replacement for a balanced diet.
Food fortification is the deliberate addition of micronutrients (like iron, iodine, vitamins, folic acid, zinc) to commonly consumed foods to improve public health and fight malnutrition. It is a complementary measure, not a replacement for a balanced diet.
Detailed Notes (28 points)
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What is Food Fortification?
It means adding one or more essential nutrients to food, either naturally absent or lost during processing, to correct deficiencies.
Example: Adding iodine to salt to prevent goitre, or iron and folic acid to rice/wheat to reduce anaemia.
It is seen as a cost-effective and mass-scale intervention against 'hidden hunger' (micronutrient deficiency).
Advantages of Food Fortification
1. Improves Health: Reaches large population at once as it is added to staple foods (like salt, rice, wheat flour, edible oil, milk).
2. Safe & Regulated: Nutrient amounts are very small and strictly regulated by FSSAI standards.
3. Culturally Acceptable: Does not change taste, look, or eating habits; people consume fortified food without resistance.
4. Cost-Effective & Quick Results: According to the Copenhagen Consensus, every ₹1 spent on fortification gives ₹9 in economic benefits.
Need for Food Fortification in India
Nearly 70% of Indians consume less than half of their Recommended Dietary Allowance (RDA) of essential micronutrients.
Known as 'hidden hunger', this deficiency causes night blindness (Vitamin A), goitre (iodine deficiency), anaemia (iron deficiency), and birth defects (lack of folic acid).
# NFHS-4 Data (2015-16):
58.4% of children (6–59 months) are anaemic.
53.1% of women (15–49 years) are anaemic.
35.7% of children under 5 are underweight.
50–70% of certain birth defects (like neural tube defects) are preventable through folic acid fortification.
Challenges to Food Fortification
1. Voluntary in Nature: Fortification is not mandatory; limited adoption by states and companies.
2. Weak State-Level Implementation: Lack of policy guidelines, budget, technology, and logistics has slowed large-scale adoption in ICDS, MDMS, and PDS.
3. Institutional Weakness: FSSAI lacks sufficient manpower and resources to enforce standards nationwide.
4. Public Awareness Gap: Misconceptions and low awareness among people about benefits of fortified food.
Way Forward
Make fortification mainstream in government schemes (ICDS, PDS, MDMS) to reach vulnerable groups.
Strengthen FSSAI’s institutional and monitoring capacity.
Increase awareness campaigns to build trust among consumers.
Encourage industry partnerships to scale up food fortification.
Over the long run, fortification will combat malnutrition, boost food processing industry, and improve consumer confidence.
Food Fortification – Key Facts
| Aspect | Details |
|---|---|
| Definition | Adding micronutrients (iron, iodine, vitamins, zinc) to staple foods |
| Objective | Correct deficiencies, prevent malnutrition diseases like anaemia & goitre |
| NFHS-4 Data | 58.4% children & 53.1% women anaemic |
| Nature | Currently voluntary, not mandatory |
| Economic Return | ₹1 spent = ₹9 benefit (Copenhagen Consensus) |
Mains Key Points
Food fortification is a low-cost, high-impact strategy to tackle malnutrition in India.
Acts as a complementary measure to ICDS, PDS, and Mid-Day Meal Scheme.
Challenges: voluntary adoption, weak FSSAI enforcement, low awareness.
Way forward: make fortification mandatory in public food schemes, enhance awareness campaigns, strengthen FSSAI capacity.
Long-term impact: reduced hidden hunger, better human capital, improved productivity.
Prelims Strategy Tips
Food Fortification is currently voluntary under FSSAI standards.
NFHS-4 data highlights high anaemia rates in women & children.
Micronutrient deficiency = 'Hidden Hunger'.
Examples: Iodised salt, fortified rice/wheat, fortified edible oil, fortified milk.
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