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Day 48 – Q 4. Examine the recent initiatives taken by the government to promote food processing industry in India.

4. Examine the recent initiatives taken by the government to promote food processing industry in India. 

भारत में खाद्य प्रसंस्करण उद्योग को बढ़ावा देने के लिए सरकार द्वारा लिए गए हालिया पहलों की जांच करें।


The Food Processing Industry (FPI) in India is one of the largest in terms of production, consumption, export and growth prospects. It is projected to grow at the rate of 104 %, touching US$ 482 billion by 2020. The food sector has emerged as a high-growth and high-profit sector due to a large agriculture sector, abundant livestock, and cost competitiveness. India is the largest producer of milk and second–largest producer of fruits and vegetables. With 20 agro climatic regions, all 15 major climates in the world exist in India.

The government has formulated its policy in order to bring about a positive change in the food processing industry. The objectives of the policy include creation of adequate infrastructure facilities along the supply chain to ensure better price for farmers and supply of affordable and quality produce to consumers.

Some of the major initiatives taken by the Government of India to improve the food processing sector in India are as follows:

  • PMKSY is an umbrella scheme incorporating ongoing schemes of the Ministry of Food Processing Industries like Mega Food Parks, Integrated Cold Chain and Value Addition Infrastructure, Food Safety and Quality Assurance Infrastructure, etc.
  • In Union Budget 2017-18, the Government of India has set up a dairy processing infra fund worth Rs 8,000 crore and Created a Special Fund for FPI of Rs. 2000 crore in NABARD.
  • e-NAM to be expanded from 250 to 585 APMCs, e-NAM Market to have primary processing facilities, e-NAM will be provided assistance for creating primary processing to cleaning, grading, packaging.
  • Union Budget 2016-17 proposed 100 per cent FDI through Foreign Investment Promotion Board route in marketing of food products produced and manufactured in India.
  • The Government of India has relaxed foreign direct investment 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 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 fertilizer sector, which will enable farmers to get good quality fertilizers at affordable rates and thereby achieve food security for the common man.
  • Government of India plans to allow two Indian dairy companies, Parag Milk Foods and Schreiber Dynamix Dairies, to export milk products to Russia for six months, after these companies got approval for their products by Russian inspection authorities.


Some of the concerns arise in the form of lack of enough supporting infrastructure, bureaucratic inertia in finalizing and operationalizing the parks and uneven distribution of the same across different states which need to be addressed at the earliest. The food processing sector is one of the growth engines out of 25 sectors identified for the “Make in India” initiative this mega food park scheme helps in realizing the potential of the food processing industry.

Best Answer: Ankita Munshi

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