The food processing industry is one of the largest in the country and is ranked fifth. Facts and figures show that India is the third largest producer of food, largest milk producer and largest livestock holder in the world.
India, the world’s second largest fruit and vegetable producer encounters a waste of close to $12 billion worth of produce. Only 2% of the total produce gets processed. The Ministry of Food Processing in India has woken up to this fact and identified areas requiring rectification and investment.
Boost to the food industry
Taking into consideration factors like demand, growth, purchasing power, urbanization and higher income levels, the Ministry has decided to give the much required boost and support to the food chain right from producer to the retail outlet. They intend to do this by aiding the development of mega food parks, logistics and cold chain transportation, fisheries, sea food, animal produce, meat, dairy, cereal and ready-to-eat produce including liquors like wine and beer.
The economy and manufacturing basis of the country shows steady growth at 9% and agriculture only at 2.2% with food processing standing at 16%. A subsidy scheme for the development of mega food parks across the country has been formulated. While the center would contribute the subsidy, the balance would be generated by the state and private sector players. With 30 mega food parks in select cities, each beginning with a subsidy of about $12 million and channeling incoming FDI towards the food processing industry, the phenomenal food waste may be curbed to a certain extent.
Initial set-up
Various regulations to help the initial set-up including subsidy for machinery and equipment have been implemented. Punjab, Maharashtra, Andhra Pradesh, Jharkhand and the North-East region will see the introduction and implementation of the pilot project. Proximity to ports and airports as well as availability of large areas from 10 acres to 500 acres, aid in the growth of the mega food parks.
Do you think that the mega food parks would bring a transformation?
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Yes, they’ve worked everywhere else. It’s the same thing as an open air bazaar.