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Strengths | Weaknesses | Opportunities | Threats |
Round the year availability of raw materials. Social acceptability of food-processing as an important area and support from the central government. Vast network of manufacturing facilities all over the country. Vast domestic market. | High requirement of working capital. Low availability of new, reliable and better accuracy instruments and equipments Inadequate automation w.r.t. information management. Remuneration is less attractive for talent in comparison to contemporary | Large crop and material base in the country due to agro-ecological variability offers vast potential for food processing activities. Integration of developments in contemporary technologies such as electronics, material science, computer, bio- technology etc. offer vast scope for rapid | Competition from global players Loss of trained manpower to other industries and other professions due to better working conditions prevailing there may lead to further shortage of manpower. Rapid developments in contemporary and requirements of the |
disciplines. Inadequately developed linkages between R&D labs and industry. | improvement and progress. Opening of global markets may lead to export of our developed technologies and facilitate generation of additional income and employment opportunities. | industry may lead to fast obsolescence. |
In order to facilitate and harness the growth potential of this sector, the government has initiated extensive reforms. Some of the key measures undertaken by the Government include: amendment of the Agriculture Produce Marketing Committee Act, rationalization of food laws, implementation of the National Horticulture mission etc. The government has sought to address the low scale of processing activity in the country by setting up the mega food parks, with integrated facilities for procurement, processing, storage and transport.
♤ Most of the processed food items have been exempted from the purview of licensing under the Industries (Development and regulation) Act, 1951, except items reserved for small- scale sector and alcoholic beverages.
♤ Food processing industries were included in the list of priority sector for bank lending in 1999.
♤ Automatic approval for foreign equity up to 100 per cent is available for most of the processed food items except alcohol, beer and those reserved for small-scale sector subject to certain conditions.
♤ Full repatriation of profits and capital has been allowed.
♤ Zero duty import of capital goods and raw material for 100 per cent export oriented units.
♤ Full duty exemption on all imports for units in export processing zones has been done.
♤ In Union Budget 2017-18, the Government of India has set up a dairy processing infra fund worth Rs 8,000 crore (US$ 1.2 billion).
♤ Union Budget 2016-17 proposed 100 per cent FDI in marketing of food products produced and manufactured in India.
♤ The Government of India has relaxed foreign direct investment (FDI) norms for the sector, allowing up to 100 per cent FDI in food product e-commerce through automatic route.
♤ The Food Safety and Standards Authority of India (FSSAI) plans to invest around Rs 482 crore (US$ 72.3 million) to strengthen the food testing infrastructure in India, by upgrading 59 existing food testing laboratories and setting up 62 new mobile testing labs across the country.
♤ The Indian Council for Fertilizer and Nutrient Research (ICFNR) will adopt international best practices for research in fertiliser sector, which will enable farmers to get good quality fertilisers at affordable rates and thereby achieve food security for the common man.
♤ The Government of India allocated Rs 1,500 crore (US$ 225.7 million) and announced various measures under the Merchandise Exports from India Scheme (MEIS), including setting up of agencies for aquaculture and fisheries in coastal states and export incentives for marine products.
♤ FSSAI has issued new rules for importing products, to address concerns over the entry of sub-standard items and simplify the process by setting shelf-life norms and relaxing labelling guidelines.
♤ The Ministry of Food Processing Industries announced a scheme for Human Resource Development (HRD) in the food processing sector. The HRD scheme is being implemented through State Governments under the National Mission on Food Processing. The scheme has the following four components:
o Creation of infrastructure facilities for degree/diploma courses in food processing sector
o Entrepreneurship Development Programme (EDP)
o Food Processing Training Centres (FPTC)
o Training at recognised institutions at State/National level
♤ FSSAI under the Ministry of Health and Family Welfare has issued the Food Safety and Standards (Food Product Standards and Food Additives) Regulations, 2011 and the Food Safety and Standards (Contaminants, Toxins and Residues) Regulations, 2011 which prescribe the quality and safety standards respectively for food products.
♤ The Government of India has approved the setting up of five numbers of Mega Food Parks in the states of Bihar, Maharashtra, Himachal Pradesh and Chhattisgarh. The Government plans to set up 42 such mega food parks across the country in next three to four years.
♤ Pradhan Mantri Kisan SAMPADA Yojana has been launched (Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters) with an allocation of Rs. 6,000 crore for the period 2016-20 coterminous with the 14th Finance Commission cycle.
PM Kisan SAMPADA Yojana
It is a comprehensive package which will result in creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet. It will not only provide a big boost to the growth of food processing sector in the country but also help in providing better returns to farmers and is a big step towards doubling of farmers income, creating huge employment opportunities especially in the rural areas, reducing wastage of agricultural produce, increasing the processing level and enhancing the export of the processed foods.
The following schemes will be implemented under PM Kisan SAMPADA Yojana :
♤ Mega Food Parks
♤ Integrated Cold Chain and Value Addition Infrastructure
♤ Creation / Expansion of Food Processing & Preservation Capacities
♤ Infrastructure for Agro-processing Clusters
♤ Creation of Backward and Forward Linkages
♤ Food Safety and Quality Assurance Infrastructure
♤ Human Resources and Institutions
New Provisions for Food Processing Sector in Budget 2018-19
♤ Pradhan Mantri Kisan Sampada Yojna (PMKSY) - Allocation has been increased from Rs. 715 crore in RE 2017-18 to Rs. 1400 crore in RE 2018-19.
♤ Department of Agriculture Cooperation & Farmers Welfare (DAC & FW) would reorient its ongoing schemes and promote cluster based development of Agri commodities and regions in partnership with the MoFPI, commerce and other allied Ministries.
♤ Tomato, Onion and Potato processing- Operation Green has been launched to promote FPOs, agro logistics, processing facilities and professional management with a sum of Rs. 500 crore.
♤ State of the Art testing facility would be set up at 42 Mega Food Park to promote Agri export from current US $ 30 billion to US $ 100 billion.
♤ Corporate Income Tax has been reduced from 30 percent to 25 percent to companies having annual turnover up to Rs. 250 crores for all sectors.
♤ 100 percent income tax exemption from profit derived from activities such as post-harvest value addition to agriculture would promote operation Green as well as PMKSY. This provision is applicable to FPOs’ having annual turnover up to Rs. 100 crores.
♤ Setting up of a Fisheries and Aquaculture Infrastructure Development Fund (FAIDF) for fisheries sector and an Animal Husbandry Infrastructure Development Fund (AHIDF) for financing infrastructure requirement of animal husbandry sector. Total Corpus of these two new Funds would be Rs. 10,000 crore.