Page 1
Food Processing
July 2024 a development monthly
Page 2
Food Processing
July 2024 a development monthly
July 2024
A DEVELOPMENT MONTHLY Let noble thoughts come to us from all sides.
Rig Veda
www.publicationsdivision.nic.in @DPD_India I @YojanaJournal @publicationsdivision @dpd_india
In ThIs Issue
number of pages: 56
Details of the Sales Outlets of the Publications Division on Page 24
YOJANA is published in Assamese, Bengali, English, Gujarati, Hindi, Kannada, Malayalam, Marathi, Odia,
Punjabi, Tamil, Telugu, and Urdu.
Since 1957
Chief editor
Kulshrestha Kamal
editor
shuchita chaturvedi
our representatives
Ahmedabad: JS Patel, Bengaluru: Shahid T Komath,
Bhubaneswar: Manoj Kumar Jali, Chennai: Sanjay
Ghosh, Guwahati: Maruf Alam, Hyderabad:
Krishna Vandana P , Jalandhar: Gagandeep Kaur
Devgan, Kolkata: Sumita Chakraborty, Mumbai:
Sangeeta Godbole, Thiruvananthapuram: Sudha S
Namboothiry.
Joint Director, ProDuction
D K C hruDhaIna Th c over Design
BInDu Verma
Yojana (English): Room No. 647, Soochna Bhawan,
CGO Complex, Lodhi Road, New Delhi-110 003.
E-mail (Editorial): sec-yojanaeng-moib@gov.in
YOJANA, a development monthly published since
1957, is a theme-based journal providing in-depth
analyses and views on socio-economic issues in
the broader framework of government policies.
Although published by the Ministry of Information
and Broadcasting, YOJANA is not restricted to
expressing the official point of view.
DIsCLaImer
l The vie ws e xpre sse d in various articles are
those of the authors and the y do not ne c essarily
re flect the vie ws of the Go vernme n t or the
organisation/ s the y work f or .
l Map s/flags use d in the article s are only indic ative
and the y do not re flect the politic al map or le gal
re presen t ation of the flag of India/an y othe r
c oun try .
l The inf ographics/figure s are pro vide d b y the
authors through the ir re liable sourc e s and
YOJANA claims no re sponsibility f or the same.
l Image s, graphics and illus trations, whe re ve r
use d, are mos tly sourc ed from go vernme n t
channels and are indic ative in nature .
l YOJANA does not o wn re sponsibility re garding
the c on t e n ts of the adve rtise men ts. The re aders
are re que s t e d t o ve rify the claims made in the
adve rtise men ts re garding c ourse s, c are e r -
guidanc e book s or ins titutions.
l YOJANA doesn't e ndorse or promot e an y brands
or privat e e n titie s prese n t ed as c ase s tudie s in an y
of the article s.
suBsCrIPTIOn/GrIeV anCes
Email: pdjucir@gmail.com
Phone: 011-24367453
(Monday-Friday, 9:30 am- 6:00 pm)
Postal Address: Abhishek Chaturvedi, Editor,
Journals Unit, Publications Division, Room No.
779, Soochna Bhawan, CGO Complex, Lodhi
Road, New Delhi-110 003.
Please not e that it will t ak e atleas t eigh t week s t o
s t art your sub scrip tion. Kindly raise your queries/
grie vanc es about non rec eip t of the journals only
aft er this period.
impact of food processing on
employment generation and
sKill development
Shaji K V
india’s food regulatory
landscape: transitioning
towards a robust and
contemporary system
Dr Amit Sharma
Dr Heena Yadav
processed foods
rising demand for healthier
food options
Ritesh Chauhan
export potential and global
competitiveness of indian
processed foods
Dr Ajay Sahai
7
13
21
26
32
37
43
47
53
the coconut craze
it is real and here to stay
Deepthi Nair S
production linKed incentive
scheme for food processing
industry innovations and
collaborations taKe
centre stage at sufalam smart food processing
in india: innovation and
future prospects
Suman Sahu
our booKs
towards food for all
ideas for a new pds YOJANA
Volume-68
No. 07
Page 3
Food Processing
July 2024 a development monthly
July 2024
A DEVELOPMENT MONTHLY Let noble thoughts come to us from all sides.
Rig Veda
www.publicationsdivision.nic.in @DPD_India I @YojanaJournal @publicationsdivision @dpd_india
In ThIs Issue
number of pages: 56
Details of the Sales Outlets of the Publications Division on Page 24
YOJANA is published in Assamese, Bengali, English, Gujarati, Hindi, Kannada, Malayalam, Marathi, Odia,
Punjabi, Tamil, Telugu, and Urdu.
Since 1957
Chief editor
Kulshrestha Kamal
editor
shuchita chaturvedi
our representatives
Ahmedabad: JS Patel, Bengaluru: Shahid T Komath,
Bhubaneswar: Manoj Kumar Jali, Chennai: Sanjay
Ghosh, Guwahati: Maruf Alam, Hyderabad:
Krishna Vandana P , Jalandhar: Gagandeep Kaur
Devgan, Kolkata: Sumita Chakraborty, Mumbai:
Sangeeta Godbole, Thiruvananthapuram: Sudha S
Namboothiry.
Joint Director, ProDuction
D K C hruDhaIna Th c over Design
BInDu Verma
Yojana (English): Room No. 647, Soochna Bhawan,
CGO Complex, Lodhi Road, New Delhi-110 003.
E-mail (Editorial): sec-yojanaeng-moib@gov.in
YOJANA, a development monthly published since
1957, is a theme-based journal providing in-depth
analyses and views on socio-economic issues in
the broader framework of government policies.
Although published by the Ministry of Information
and Broadcasting, YOJANA is not restricted to
expressing the official point of view.
DIsCLaImer
l The vie ws e xpre sse d in various articles are
those of the authors and the y do not ne c essarily
re flect the vie ws of the Go vernme n t or the
organisation/ s the y work f or .
l Map s/flags use d in the article s are only indic ative
and the y do not re flect the politic al map or le gal
re presen t ation of the flag of India/an y othe r
c oun try .
l The inf ographics/figure s are pro vide d b y the
authors through the ir re liable sourc e s and
YOJANA claims no re sponsibility f or the same.
l Image s, graphics and illus trations, whe re ve r
use d, are mos tly sourc ed from go vernme n t
channels and are indic ative in nature .
l YOJANA does not o wn re sponsibility re garding
the c on t e n ts of the adve rtise men ts. The re aders
are re que s t e d t o ve rify the claims made in the
adve rtise men ts re garding c ourse s, c are e r -
guidanc e book s or ins titutions.
l YOJANA doesn't e ndorse or promot e an y brands
or privat e e n titie s prese n t ed as c ase s tudie s in an y
of the article s.
suBsCrIPTIOn/GrIeV anCes
Email: pdjucir@gmail.com
Phone: 011-24367453
(Monday-Friday, 9:30 am- 6:00 pm)
Postal Address: Abhishek Chaturvedi, Editor,
Journals Unit, Publications Division, Room No.
779, Soochna Bhawan, CGO Complex, Lodhi
Road, New Delhi-110 003.
Please not e that it will t ak e atleas t eigh t week s t o
s t art your sub scrip tion. Kindly raise your queries/
grie vanc es about non rec eip t of the journals only
aft er this period.
impact of food processing on
employment generation and
sKill development
Shaji K V
india’s food regulatory
landscape: transitioning
towards a robust and
contemporary system
Dr Amit Sharma
Dr Heena Yadav
processed foods
rising demand for healthier
food options
Ritesh Chauhan
export potential and global
competitiveness of indian
processed foods
Dr Ajay Sahai
7
13
21
26
32
37
43
47
53
the coconut craze
it is real and here to stay
Deepthi Nair S
production linKed incentive
scheme for food processing
industry innovations and
collaborations taKe
centre stage at sufalam smart food processing
in india: innovation and
future prospects
Suman Sahu
our booKs
towards food for all
ideas for a new pds YOJANA
Volume-68
No. 07
5 July 2024
Food Processing: Harvesting Opportunities
Editorial
YOJANA
i
ndia, with its rich agricultural tradition and diverse climate, holds
immense potential in the food processing sector. this industry is
not only a cornerstone for the country's economic growth but also
pivotal for ensuring food security, reducing wastage, enhancing farmers'
incomes and providing employment opportunities. in order to achieve
a developed nation status in the next 25 years, this sector would be
crucial in transforming india's primary agriculture sector with enhanced
productivity and profitability while ensuring sustainability and resilience.
o ur country is the world's largest producer of milk, pulses, and jute,
and the second largest producer of essential crops such as rice, wheat,
sugarcane, groundnut, vegetables, fruits, and cotton. Food processing
involves transforming raw agricultural products into consumable food
items, adding value and extending shelf life. r ecognising the sector's
potential, the government has launched several initiatives to boost food
processing industries. t he foremost and important scheme- Pradhan Mantri
Kisan s ampada Yojana (PMKsY) aims to create modern infrastructure with efficient supply chain management
from farm gate to retail outlet. it includes Mega Food Parks, c old chain, and Preservation i nfrastructure. Mega
Food Parks provide a mechanism to link agricultural production to the market by bringing together farmers,
processors, and retailers. s ome other schemes include Pradhan Mantri Formalisation of Micro Food Processing
enterprises (PMFMe), Production Linked incentive (PLi) scheme for Food Processing industry (PLisFPi) and one
District one Product ( oDoP). t he government is continuously working on improving the ease of doing business
by simplifying procedures and providing single-window clearance for projects. initiatives are also being taken
to enhance the skill-set of workers in this sector. to promote entrepreneurship, a ‘startup Forum for Aspiring
Leaders And Mentors-suFALAM’ was also held recently in which startups were urged to play a proactive role in
collaborating with farmers and venturing into consumer friendly affordable and nutritious products.
through its initiatives, the national Agricultural cooperative Marketing Federation (nAFeD) has
significantly contributed to stabilising agricultural incomes and enhancing market opportunities for
smallholder farmers. the financial institution- national Bank for Agriculture and rural Development
(nABArD) complements these efforts by extending critical financial assistance and developmental support.
Leveraging credit facilities and infrastructural development initiatives, nABArD has played an important role
in promoting sustainable agricultural practices and fostering rural livelihoods.
r ising health consciousness among consumers is driving demand for processed and packaged foods that
are safe and nutritive. Food Processing also involves better health markers on the packets. t his has assumed
importance in our day-to-day lives as our dependence on such food packets is growing. t here is also a need to
tap the popularity of various food grains and coarse grains like millets which are gaining increasing importance
due to their nutritional benefits and adaptability to various climatic conditions.
Amidst a global shift towards health and wellness, traditional ingredients like coconut have garnered
renewed attention. the coconut Development Board through its initiatives, emphasise technological
advancements and value addition, promoting entrepreneurship and elevating product quality across the
coconut value chain. virgin coconut oil ( vco ), valued for its purity and therapeutic benefits, symbolises
coconut's evolution from a traditional staple to a sought-after global health commodity.
t his edition of Yojana delves comprehensively into india's food processing sector, highlighting its key
role in the nation's economic landscape. With a steadfast focus on innovation, sustainability and market
integration, the articles in this issue, offer a nuanced perspective on how the food processing industry can
propel india towards heightened economic growth and enhanced global competitiveness. ?
Page 4
Food Processing
July 2024 a development monthly
July 2024
A DEVELOPMENT MONTHLY Let noble thoughts come to us from all sides.
Rig Veda
www.publicationsdivision.nic.in @DPD_India I @YojanaJournal @publicationsdivision @dpd_india
In ThIs Issue
number of pages: 56
Details of the Sales Outlets of the Publications Division on Page 24
YOJANA is published in Assamese, Bengali, English, Gujarati, Hindi, Kannada, Malayalam, Marathi, Odia,
Punjabi, Tamil, Telugu, and Urdu.
Since 1957
Chief editor
Kulshrestha Kamal
editor
shuchita chaturvedi
our representatives
Ahmedabad: JS Patel, Bengaluru: Shahid T Komath,
Bhubaneswar: Manoj Kumar Jali, Chennai: Sanjay
Ghosh, Guwahati: Maruf Alam, Hyderabad:
Krishna Vandana P , Jalandhar: Gagandeep Kaur
Devgan, Kolkata: Sumita Chakraborty, Mumbai:
Sangeeta Godbole, Thiruvananthapuram: Sudha S
Namboothiry.
Joint Director, ProDuction
D K C hruDhaIna Th c over Design
BInDu Verma
Yojana (English): Room No. 647, Soochna Bhawan,
CGO Complex, Lodhi Road, New Delhi-110 003.
E-mail (Editorial): sec-yojanaeng-moib@gov.in
YOJANA, a development monthly published since
1957, is a theme-based journal providing in-depth
analyses and views on socio-economic issues in
the broader framework of government policies.
Although published by the Ministry of Information
and Broadcasting, YOJANA is not restricted to
expressing the official point of view.
DIsCLaImer
l The vie ws e xpre sse d in various articles are
those of the authors and the y do not ne c essarily
re flect the vie ws of the Go vernme n t or the
organisation/ s the y work f or .
l Map s/flags use d in the article s are only indic ative
and the y do not re flect the politic al map or le gal
re presen t ation of the flag of India/an y othe r
c oun try .
l The inf ographics/figure s are pro vide d b y the
authors through the ir re liable sourc e s and
YOJANA claims no re sponsibility f or the same.
l Image s, graphics and illus trations, whe re ve r
use d, are mos tly sourc ed from go vernme n t
channels and are indic ative in nature .
l YOJANA does not o wn re sponsibility re garding
the c on t e n ts of the adve rtise men ts. The re aders
are re que s t e d t o ve rify the claims made in the
adve rtise men ts re garding c ourse s, c are e r -
guidanc e book s or ins titutions.
l YOJANA doesn't e ndorse or promot e an y brands
or privat e e n titie s prese n t ed as c ase s tudie s in an y
of the article s.
suBsCrIPTIOn/GrIeV anCes
Email: pdjucir@gmail.com
Phone: 011-24367453
(Monday-Friday, 9:30 am- 6:00 pm)
Postal Address: Abhishek Chaturvedi, Editor,
Journals Unit, Publications Division, Room No.
779, Soochna Bhawan, CGO Complex, Lodhi
Road, New Delhi-110 003.
Please not e that it will t ak e atleas t eigh t week s t o
s t art your sub scrip tion. Kindly raise your queries/
grie vanc es about non rec eip t of the journals only
aft er this period.
impact of food processing on
employment generation and
sKill development
Shaji K V
india’s food regulatory
landscape: transitioning
towards a robust and
contemporary system
Dr Amit Sharma
Dr Heena Yadav
processed foods
rising demand for healthier
food options
Ritesh Chauhan
export potential and global
competitiveness of indian
processed foods
Dr Ajay Sahai
7
13
21
26
32
37
43
47
53
the coconut craze
it is real and here to stay
Deepthi Nair S
production linKed incentive
scheme for food processing
industry innovations and
collaborations taKe
centre stage at sufalam smart food processing
in india: innovation and
future prospects
Suman Sahu
our booKs
towards food for all
ideas for a new pds YOJANA
Volume-68
No. 07
5 July 2024
Food Processing: Harvesting Opportunities
Editorial
YOJANA
i
ndia, with its rich agricultural tradition and diverse climate, holds
immense potential in the food processing sector. this industry is
not only a cornerstone for the country's economic growth but also
pivotal for ensuring food security, reducing wastage, enhancing farmers'
incomes and providing employment opportunities. in order to achieve
a developed nation status in the next 25 years, this sector would be
crucial in transforming india's primary agriculture sector with enhanced
productivity and profitability while ensuring sustainability and resilience.
o ur country is the world's largest producer of milk, pulses, and jute,
and the second largest producer of essential crops such as rice, wheat,
sugarcane, groundnut, vegetables, fruits, and cotton. Food processing
involves transforming raw agricultural products into consumable food
items, adding value and extending shelf life. r ecognising the sector's
potential, the government has launched several initiatives to boost food
processing industries. t he foremost and important scheme- Pradhan Mantri
Kisan s ampada Yojana (PMKsY) aims to create modern infrastructure with efficient supply chain management
from farm gate to retail outlet. it includes Mega Food Parks, c old chain, and Preservation i nfrastructure. Mega
Food Parks provide a mechanism to link agricultural production to the market by bringing together farmers,
processors, and retailers. s ome other schemes include Pradhan Mantri Formalisation of Micro Food Processing
enterprises (PMFMe), Production Linked incentive (PLi) scheme for Food Processing industry (PLisFPi) and one
District one Product ( oDoP). t he government is continuously working on improving the ease of doing business
by simplifying procedures and providing single-window clearance for projects. initiatives are also being taken
to enhance the skill-set of workers in this sector. to promote entrepreneurship, a ‘startup Forum for Aspiring
Leaders And Mentors-suFALAM’ was also held recently in which startups were urged to play a proactive role in
collaborating with farmers and venturing into consumer friendly affordable and nutritious products.
through its initiatives, the national Agricultural cooperative Marketing Federation (nAFeD) has
significantly contributed to stabilising agricultural incomes and enhancing market opportunities for
smallholder farmers. the financial institution- national Bank for Agriculture and rural Development
(nABArD) complements these efforts by extending critical financial assistance and developmental support.
Leveraging credit facilities and infrastructural development initiatives, nABArD has played an important role
in promoting sustainable agricultural practices and fostering rural livelihoods.
r ising health consciousness among consumers is driving demand for processed and packaged foods that
are safe and nutritive. Food Processing also involves better health markers on the packets. t his has assumed
importance in our day-to-day lives as our dependence on such food packets is growing. t here is also a need to
tap the popularity of various food grains and coarse grains like millets which are gaining increasing importance
due to their nutritional benefits and adaptability to various climatic conditions.
Amidst a global shift towards health and wellness, traditional ingredients like coconut have garnered
renewed attention. the coconut Development Board through its initiatives, emphasise technological
advancements and value addition, promoting entrepreneurship and elevating product quality across the
coconut value chain. virgin coconut oil ( vco ), valued for its purity and therapeutic benefits, symbolises
coconut's evolution from a traditional staple to a sought-after global health commodity.
t his edition of Yojana delves comprehensively into india's food processing sector, highlighting its key
role in the nation's economic landscape. With a steadfast focus on innovation, sustainability and market
integration, the articles in this issue, offer a nuanced perspective on how the food processing industry can
propel india towards heightened economic growth and enhanced global competitiveness. ?
7 July 2024
hanks to the green r evolution, over
the last five decades (1970s to 2020s),
india has moved from a position of
scarcity to surplus in terms of food
production. Agricultural production in india has
consistently recorded higher output, ranking first
in pulses and milk, second in vegetables, fruits,
wheat, and rice, and third in cereals, eggs in world
In order to become a developed nation in the next 25 years, the vision of India
in the Amrit Kaal era would require a critical transformation in its primary
sector , agriculture. The development paradigm within agriculture needs to
transform from agriculture to agribusiness, with the employment dependency
on agriculture being suitably addressed by skill development and absorption in
the emerging agribusiness sphere. The food processing sub-sector will be centric
to this agricultural transformation pathway. NABARD has been at the forefront
as an important stakeholder in the food processing sector , playing a vital role in
infrastructure creation for the food processing industry.
agriculture. With increasing production and supply
of raw materials, india’s food processing sector in
recent years has been known for its high growth,
thus increasing its contribution to world food
demand every year. currently, india is processing
less than 10% of its agricultural output, thus
presenting immense opportunities for increasing
processing levels and leading to immense
T
shaji K v the author is the Chairman of NABArd (National Bank for Agriculture and rural development). email: chairmansectt@nabard.org
Impact of Food Processing on
Employment Generation and
Skill Development
Page 5
Food Processing
July 2024 a development monthly
July 2024
A DEVELOPMENT MONTHLY Let noble thoughts come to us from all sides.
Rig Veda
www.publicationsdivision.nic.in @DPD_India I @YojanaJournal @publicationsdivision @dpd_india
In ThIs Issue
number of pages: 56
Details of the Sales Outlets of the Publications Division on Page 24
YOJANA is published in Assamese, Bengali, English, Gujarati, Hindi, Kannada, Malayalam, Marathi, Odia,
Punjabi, Tamil, Telugu, and Urdu.
Since 1957
Chief editor
Kulshrestha Kamal
editor
shuchita chaturvedi
our representatives
Ahmedabad: JS Patel, Bengaluru: Shahid T Komath,
Bhubaneswar: Manoj Kumar Jali, Chennai: Sanjay
Ghosh, Guwahati: Maruf Alam, Hyderabad:
Krishna Vandana P , Jalandhar: Gagandeep Kaur
Devgan, Kolkata: Sumita Chakraborty, Mumbai:
Sangeeta Godbole, Thiruvananthapuram: Sudha S
Namboothiry.
Joint Director, ProDuction
D K C hruDhaIna Th c over Design
BInDu Verma
Yojana (English): Room No. 647, Soochna Bhawan,
CGO Complex, Lodhi Road, New Delhi-110 003.
E-mail (Editorial): sec-yojanaeng-moib@gov.in
YOJANA, a development monthly published since
1957, is a theme-based journal providing in-depth
analyses and views on socio-economic issues in
the broader framework of government policies.
Although published by the Ministry of Information
and Broadcasting, YOJANA is not restricted to
expressing the official point of view.
DIsCLaImer
l The vie ws e xpre sse d in various articles are
those of the authors and the y do not ne c essarily
re flect the vie ws of the Go vernme n t or the
organisation/ s the y work f or .
l Map s/flags use d in the article s are only indic ative
and the y do not re flect the politic al map or le gal
re presen t ation of the flag of India/an y othe r
c oun try .
l The inf ographics/figure s are pro vide d b y the
authors through the ir re liable sourc e s and
YOJANA claims no re sponsibility f or the same.
l Image s, graphics and illus trations, whe re ve r
use d, are mos tly sourc ed from go vernme n t
channels and are indic ative in nature .
l YOJANA does not o wn re sponsibility re garding
the c on t e n ts of the adve rtise men ts. The re aders
are re que s t e d t o ve rify the claims made in the
adve rtise men ts re garding c ourse s, c are e r -
guidanc e book s or ins titutions.
l YOJANA doesn't e ndorse or promot e an y brands
or privat e e n titie s prese n t ed as c ase s tudie s in an y
of the article s.
suBsCrIPTIOn/GrIeV anCes
Email: pdjucir@gmail.com
Phone: 011-24367453
(Monday-Friday, 9:30 am- 6:00 pm)
Postal Address: Abhishek Chaturvedi, Editor,
Journals Unit, Publications Division, Room No.
779, Soochna Bhawan, CGO Complex, Lodhi
Road, New Delhi-110 003.
Please not e that it will t ak e atleas t eigh t week s t o
s t art your sub scrip tion. Kindly raise your queries/
grie vanc es about non rec eip t of the journals only
aft er this period.
impact of food processing on
employment generation and
sKill development
Shaji K V
india’s food regulatory
landscape: transitioning
towards a robust and
contemporary system
Dr Amit Sharma
Dr Heena Yadav
processed foods
rising demand for healthier
food options
Ritesh Chauhan
export potential and global
competitiveness of indian
processed foods
Dr Ajay Sahai
7
13
21
26
32
37
43
47
53
the coconut craze
it is real and here to stay
Deepthi Nair S
production linKed incentive
scheme for food processing
industry innovations and
collaborations taKe
centre stage at sufalam smart food processing
in india: innovation and
future prospects
Suman Sahu
our booKs
towards food for all
ideas for a new pds YOJANA
Volume-68
No. 07
5 July 2024
Food Processing: Harvesting Opportunities
Editorial
YOJANA
i
ndia, with its rich agricultural tradition and diverse climate, holds
immense potential in the food processing sector. this industry is
not only a cornerstone for the country's economic growth but also
pivotal for ensuring food security, reducing wastage, enhancing farmers'
incomes and providing employment opportunities. in order to achieve
a developed nation status in the next 25 years, this sector would be
crucial in transforming india's primary agriculture sector with enhanced
productivity and profitability while ensuring sustainability and resilience.
o ur country is the world's largest producer of milk, pulses, and jute,
and the second largest producer of essential crops such as rice, wheat,
sugarcane, groundnut, vegetables, fruits, and cotton. Food processing
involves transforming raw agricultural products into consumable food
items, adding value and extending shelf life. r ecognising the sector's
potential, the government has launched several initiatives to boost food
processing industries. t he foremost and important scheme- Pradhan Mantri
Kisan s ampada Yojana (PMKsY) aims to create modern infrastructure with efficient supply chain management
from farm gate to retail outlet. it includes Mega Food Parks, c old chain, and Preservation i nfrastructure. Mega
Food Parks provide a mechanism to link agricultural production to the market by bringing together farmers,
processors, and retailers. s ome other schemes include Pradhan Mantri Formalisation of Micro Food Processing
enterprises (PMFMe), Production Linked incentive (PLi) scheme for Food Processing industry (PLisFPi) and one
District one Product ( oDoP). t he government is continuously working on improving the ease of doing business
by simplifying procedures and providing single-window clearance for projects. initiatives are also being taken
to enhance the skill-set of workers in this sector. to promote entrepreneurship, a ‘startup Forum for Aspiring
Leaders And Mentors-suFALAM’ was also held recently in which startups were urged to play a proactive role in
collaborating with farmers and venturing into consumer friendly affordable and nutritious products.
through its initiatives, the national Agricultural cooperative Marketing Federation (nAFeD) has
significantly contributed to stabilising agricultural incomes and enhancing market opportunities for
smallholder farmers. the financial institution- national Bank for Agriculture and rural Development
(nABArD) complements these efforts by extending critical financial assistance and developmental support.
Leveraging credit facilities and infrastructural development initiatives, nABArD has played an important role
in promoting sustainable agricultural practices and fostering rural livelihoods.
r ising health consciousness among consumers is driving demand for processed and packaged foods that
are safe and nutritive. Food Processing also involves better health markers on the packets. t his has assumed
importance in our day-to-day lives as our dependence on such food packets is growing. t here is also a need to
tap the popularity of various food grains and coarse grains like millets which are gaining increasing importance
due to their nutritional benefits and adaptability to various climatic conditions.
Amidst a global shift towards health and wellness, traditional ingredients like coconut have garnered
renewed attention. the coconut Development Board through its initiatives, emphasise technological
advancements and value addition, promoting entrepreneurship and elevating product quality across the
coconut value chain. virgin coconut oil ( vco ), valued for its purity and therapeutic benefits, symbolises
coconut's evolution from a traditional staple to a sought-after global health commodity.
t his edition of Yojana delves comprehensively into india's food processing sector, highlighting its key
role in the nation's economic landscape. With a steadfast focus on innovation, sustainability and market
integration, the articles in this issue, offer a nuanced perspective on how the food processing industry can
propel india towards heightened economic growth and enhanced global competitiveness. ?
7 July 2024
hanks to the green r evolution, over
the last five decades (1970s to 2020s),
india has moved from a position of
scarcity to surplus in terms of food
production. Agricultural production in india has
consistently recorded higher output, ranking first
in pulses and milk, second in vegetables, fruits,
wheat, and rice, and third in cereals, eggs in world
In order to become a developed nation in the next 25 years, the vision of India
in the Amrit Kaal era would require a critical transformation in its primary
sector , agriculture. The development paradigm within agriculture needs to
transform from agriculture to agribusiness, with the employment dependency
on agriculture being suitably addressed by skill development and absorption in
the emerging agribusiness sphere. The food processing sub-sector will be centric
to this agricultural transformation pathway. NABARD has been at the forefront
as an important stakeholder in the food processing sector , playing a vital role in
infrastructure creation for the food processing industry.
agriculture. With increasing production and supply
of raw materials, india’s food processing sector in
recent years has been known for its high growth,
thus increasing its contribution to world food
demand every year. currently, india is processing
less than 10% of its agricultural output, thus
presenting immense opportunities for increasing
processing levels and leading to immense
T
shaji K v the author is the Chairman of NABArd (National Bank for Agriculture and rural development). email: chairmansectt@nabard.org
Impact of Food Processing on
Employment Generation and
Skill Development
8 July 2024
investment potential in this sector. With about 70%
of households still dependent on agriculture for
their livelihood in india, this sector provides huge
employment generation potential as well. in this
background, the food processing sector has been
recognised as a ‘sunrise sector’ and a key priority
industry under the ‘Make in india’ initiative, led
by the Prime Minister, shri narendra Modi and is
being promoted aggressively through fiscal and
monetary incentives.
s tatus and role of the Food p rocessing s ector in
india
a. Contribution to Gdp
During the last 5 years ending 2020-21, the
food processing sector had grown at an average
annual growth rate of around 8.38%, as compared
to around 4.87% in the agriculture and allied sectors
(at 2011-12 prices). the food processing sector
has also emerged as an important segment of the
indian economy in terms of its contribution to gDP ,
employment, and investment (table 1).
the food processing sector also constituted
as much as 10.54% and 11.57% of the gross value
Added (gvA) in the manufacturing and agriculture
sectors, respectively, in 2020-21 (at 2011-12 prices)
(table 2).
Although there has been increasing demand
for processed food and ready-to-eat food in india,
the share of the food processing industry in overall
gvA has only been 1.88% (2020-21) as against the
share of manufacturing at 17.86% and the share of
gv A in agriculture at 16.26% (table 3).
b. employment Generation
As per the latest Annual survey of i ndustries
(Asi) for 2019-20, the total number of persons
engaged in the registered food processing sector
was 20.32 lakhs. Moreover, the unregistered
food processing sector supported employment
for 51.11 lakh workers as per the nsso
73
rd
r ound, 2015-16, and constituted 14.18% of
employment in the unregistered manufacturing
sector (t able 4).
t able 1: Gva by Food p rocessing industries (Fpi) at Constant prices (2011-12)
(? lakh cr.)
sr. economic activity 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
1 gv A-All india 85.46 90.64 97.12 104.92 113.28 120.34 127.34 132.19 125.85
2 gv A Manufacturing 14.87 15.61 16.84 19.04 20.55 22.09 23.29 22.61 22.48
3 gv A-Agriculture,
Forestry, Fishing
15.24 16.09 16.06 16.16 17.26 18.40 18.79 19.82 20.48
4 gv A-FPi 1.30 1.30 1.34 1.61 1.79 1.93 2.36 2.26 2.37
Source: Annual Report 2022-23, MoFPI, GoI
t able 2: s hare (%) of Fpi in Gva of m anufacturing and a gri & a llied s ector
sr. economic activity 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
1 gvA Manufacturing 8.74 8.33 7.96 8.46 8.71 8.74 10.13 10.00 10.54
2 gvA Agriculture,
Forestry And Fishing
8.53 8.08 8.34 9.96 10.37 10.49 12.56 11.40 11.57
Source: Annual Report 2022-23, MoFPI, GoI
t able 3: s hare (%) of various s ectors in o verall Gva
s r. economic activity 2018-19 2019-20 2020-21
1 gv A-FPi 1.85 1.71 1.88
2 gv A-Manufacturing 18.29 17.10 17.86
3 gv A Agri and allied sectors 14.76 14.99 16.26
Source: Annual Report 2022-23, MoFPI, GoI
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