Context
At the 3rd edition of World Food India 2024, the Prime Minister stated that India has brought “wide-ranging” reforms to convert the food-processing region within the remaining 10 years.
World Food India
- The Ministry of Food Processing Industries launched the first version of World Food India in 2017.
- Key sectors being showcased encompass sparkling culmination and greens, processed ingredients and value-added products, basmati rice, animal products, cashew nuts, geographical indication (GI) products, natural products, and alcoholic liquids.
- Agricultural and Processed Food Products Export Development Authority (APEDA) has invited outstanding international consumers from about 80+ nations.
- It is imparting a platform for Indian exporters to engage directly with customers, importers, and worldwide alternate representatives.
Food Processing
- Food processing can be described as the use of strategies and strategies involving system, power, and equipment to convert agricultural products which include grains, meats, veggies, culmination, and milk into food ingredients or processed food products.
- This can encompass a high variety of activities, including: Preparation, Cooking, Preservation, Packaging and Fortification.
- Formulations and processing techniques are scientifically developed to deliver food that is secure, getting rid of the presence of any harmful chemical contaminants and micro-organisms that might cause food-borne diseases.
Challenges
- Cold Chain Logistics: Lack of good cold storage centers ends in giant food wastage, mainly for perishable gadgets.
- Transportation: Poor avenue and shipping infrastructure put off the movement of products, affecting freshness and fine.
- Complex Compliance: Navigating numerous rules and standards set by using organizations like FSSAI can be difficult, especially for small and medium establishments (SMEs).
- Bureaucratic Delays: Obtaining licenses and approvals may be time-ingesting, affecting business operations.
- Limited Adoption of Modern Techniques: Many small processors lack access to advanced processing technology and equipment, which restricts efficiency and scalability.
- Price Sensitivity: Consumers are regularly rate-sensitive, which pressures margins for processors.
- Inconsistent Supply: Fluctuations in agricultural manufacturing because of climate conditions disrupt the supply chain, leading to shortages and price volatility.
- Health Consciousness: Increasing demand for healthier and organic options requires processors to evolve their services, which can be useful resource-intensive.
- Changing Tastes: Rapid shifts in client opportunities necessitate consistent innovation and product development.
- Waste Management: Efficient waste management systems are needed to minimize the environmental effect of food processing operations.
Government Initiatives
- Initiatives for attracting Investment: Exempting all the processed food items from the purview of licensing underneath the Industries (Development and Regulation) Act, 1951.
- 100% Foreign Direct Investment (FDI) authorized through automated courses for the food processing sector problem to sectoral policies.
- 100% Foreign Direct Investment, below Government approval direction, for trading which includes through e-trade, in recognition of food products manufactured or produced in India.
- Lower GST for raw and processed products; more than 71.7% food products under various chapter heads/subheads are included in lower tax slabs of 0% & 5%.
- MoFPI is likewise enforcing a Centrally Sponsored Scheme- PM Formalisation of Micro Food Processing Enterprises Scheme (PMFME) for imparting technical, economic and enterprise support for setting up/upgradation of 2 lakh Micro Food Processing Enterprises.
- MoFPI has also launched the Production Linked Incentive scheme (PLIS) for the period 2021-22 to 2026-27 to create worldwide food champions and improve the visibility of Indian food brands overseas.
- Pradhan Mantri Kisan Sampada Yojana (PMKSY): Launched in 2016, this scheme aims to create contemporary food processing infrastructure and sell the improvement of food processing gadgets.
- National Food Processing Policy: This coverage ambitions to decorate food processing capability and inspire innovation in the sector.
- Market Access: Efforts are being made to improve marketplace access for processed food products via numerous systems, including e-trade and direct promoting.
Conclusion
- India’s food environment gives high funding opportunities with stimulating increase in the food retail sector encouraging financial rules, and appealing financial incentives.
- Through the Ministry of Food Processing Industries (MoFPI), Government of India is taking all necessary measures to reinforce investments within the food processing enterprise in India.
Source: Indian Express