The Food Processing Sector: Year End Review 2023 #food

28 Dec 2023: The food processing sector plays an important role in increasing farm income and creating off-farm jobs, reducing post-harvest losses in agriculture and allied sector production through on- and off-farm investments in preservation and processing infrastructure. Accordingly, the Ministry of Food Processing Industries has undertaken several initiatives to give impetus to the development of the food processing sector in the country and has made significant achievements in its schemes during FY 2023-24. The notable achievements over the past year are as follows:

The Food Processing Sector: Year End Review 2023

Increase in sectoral assistance through Ministry budget-

The government of India has allocated B.E. of Rs 3287.65 crore to the Ministry for the development of the Food Processing Sector in the year 2023-24, which marks an increase of about 73% from the Revised Estimate (R.E) of Rs. 1901.59 crore in 2022-23.

Quantum jump in sectoral achievements -

The Gross Value Added (GVA) of the food processing sector has increased from Rs.1.34 lakh Crore in 2014-15 to Rs 2.08 lakh crore in 2021-22.

The sector has attracted USD 6.185 billion in FDI equity inflow from April 2014 to March 2023.

The share of processed food exports in agri-exports has increased substantially from 13.7% in 2014-15 to 25.6% in 2022-23.

The food processing sector is one of the largest employment providers in the organized manufacturing sector with 12.22% employment in the total registered/organized sector.

Achievements under the schemes-

(A)Pradhan Mantri Kisan SAMPADA Yojana (PMKSY)

PMKSY was approved with an allocation of Rs. 6,000 crore for the period 2016-20 (extended to 2020-21) for the 14th FC cycle and has been approved to be continued after restructuring during the 15th FC Cycle with the allocation of Rs 4600 Crore.

Since Jan 2023, So far, a total of 184 projects have been approved under various component schemes of PMKSY and a total of 110 projects have been completed resulting in a processing & preservation capacity of 13.19 Lakh MT. The approved projects, on their completion, are expected to leverage investment of Rs 3360 Crore benefiting about 3.85 lakh farmers, and are expected to result in more than 0.62 lakh direct/indirect employment.

In all, so far, a total of 1401 projects have been approved under various component schemes of PMKSY, since their respective dates of launch. Out of these, 832 projects have been completed resulting in a processing & preservation capacity of 218.43 Lakh MT. The approved projects, on their completion, are expected to leverage investment of Rs 21217 Crore benefiting about 57 lakh farmers, and are expected to result in more than 8.28 lakh direct/indirect employment.

PMKSY has made a significant positive impact in terms of an increase in prices of agricultural produce at the farm gate and a reduction in its losses. NABCON's evaluation study report on cold chain projects showed that completion of 70% of the approved projects has shown significant improvement in waste reduction up to 70% in the case of fisheries and 85% in the case of dairy products.

 

 (B) Pradhan Mantri Micro Food Processing Industries Upgradation Scheme (PMFME) –

Under Atmanirbhar Abhiyaan, the Ministry of Food Processing Industries launched a Centrally Sponsored Scheme named Pradhan Mantri Micro Food Processing Industries in June 2020 to encourage 'Vocal for Local' in the sector with a total outlay of Rs 10,000 crore in the period of 2020-2025 for this scheme.

This is the first-ever Government scheme for Micro Food Processing enterprises and is targeted to benefit 2 lakh enterprises through credit-linked subsidy and adopting the approach of One District One Product.

Since Jan 2023, a total of 51,130 loans have been sanctioned under the credit-linked subsidy component of the PMFME scheme, which is the highest achievement during any calendar year since the launch of the scheme. An amount of Rs 440.42 crore has been released as seed capital assistance to 1.35 Lakh Self Help Group (SHG) members. 4 Incubation Centers have been completed and inaugurated during the period providing product development support to grassroots Micro Enterprises.

Since the inception of the scheme, so far, a total of 65,094 loans have been sanctioned under the credit-linked subsidy component of the PMFME scheme to individual beneficiaries, Farmer Producer Organizations (FPOs), Self Help Groups (SHGs), and Producer Cooperative Societies. An amount of Rs 771 crore has been released as seed capital assistance to 2.3 Lakh Self Help Group (SHG) members.

76 Incubation Centers have been approved to be set up in ODOP processing lines and allied product lines with an outlay of Rs 205.95 crore.

Production-Linked Incentive Scheme for Food Processing Industries (PLISFPI) –

To support the creation of global food manufacturing champions commensurate with India’s natural resource endowment and support Indian brands of food products in the international markets, the Central Sector Scheme- “Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)” was approved by the Union Cabinet on 31.03.2021 with an outlay of Rs. 10,900 crore.  The Scheme is being implemented over six years from 2021-22 to 2026-27.

The components of the Scheme are-  Incentivising manufacturing of four major food product segments viz. Ready to Cook/ Ready to Eat (RTC/ RTE) foods including millet products, Processed Fruits and vegetables, Marine Products, and Mozzarella Cheese (Category-I). The second component relates to the production of Innovative/ Organic products for SMEs (Category-II). The third component relates to support for branding and marketing abroad (Category-III) to incentivize the emergence of strong Indian brands for in-store Branding, shelf space renting, and marketing. From the savings under PLISFPI, a component for the Production Linked Incentives Scheme for Millet Based Products (PLISMBP) was also carved out from the scheme to encourage the use of Millets in RTC/RTE products and incentivize them under the PLI Scheme to promote its production, value addition and sale.

On 10.08.2023, the proposal of the Ministry was approved for inviting EoI for the manufacture of Millet-based products (Millets 2.0) with an outlay of Rs. 1000 Crore arising out of the savings from the other segments.

A total of 176 proposals under different categories of the Product Linked Incentive Scheme for the Food Processing sector (PLISFPI) have been approved so far. The scheme was likely to lead to an investment of Rs 7722 Crore, an increase in processed food sales turnover worth Rs 1.20 Lakh Crore, and generate employment opportunities of 2.50 Lakh. With Incentives of Rs. 584.30 Crore released till date to the supported companies under the scheme, processed food sales turnover of about Rs 2.01 Lakh Crore, investment of Rs 7099 Crore, and 2.36 Lakh employment generation have already been achieved through supported projects.

30 companies, including 22 MSMEs, are involved in the promotion of Millet-based products under PLISMBP. The scheme envisages the use of a minimum of 15% millet content in the approved food products.

 

(4) Activities/Achievements as part of “International Year of Millets (IYM)-2023)”-

Shree Anna has been one of the key focus areas of the Ministry in the International Year of Millets.

Ministry has significantly augmented Shree Anna's

processing & preservation infrastructure through its schemes. 

30 Millet-based proposals for Production-linked Incentives with an outlay of Rs 800 Crore, which includes proposals from 8 large entities and 22 MSMEs, have been approved under PLISFPI.

 So far, a total of 1825 loans have been sanctioned amounting to Rs. 91.08 Crore for individual millet processing units from various states under the PMFME scheme.  In addition, the Ministry has identified 19 districts with Millet Products as One District One Product (ODOP) under its PMFME scheme and has approved 3 Marketing and branding proposals for Millet Products. Also, 17 incubation centers have been approved in 10 states having Millet Processing lines.

The ministry has also organized a series of Millet Roadshows/ conferences/exhibitions across 27 districts spread across the country. Two-day Millet Festival has been organized in districts viz. Mandla (Madhya Pradesh), Bhojpur (Bihar), Vijayanagar (Andhra Pradesh), Agra (Uttar Pradesh), Madhurai (Tamil Nadu), Nuapada (Odisha), Mahabubnagar (Telangana), Jodhpur (Rajasthan), Khunti (Jharkhand), Tirap (Arunachal Pradesh), Almora (Uttarakhand), Palakkad (Kerala), Surat (Gujarat), Patna (Bihar), Ahmedabad (Gujarat), Chandigarh, Raipur (Chhattisgarh), Pune (Maharashtra), Jaipur (Rajasthan), Coimbatore (Tamil Nadu), Mandya (Karnataka), Kolkata (West Bengal), Amritsar (Punjab),  Hyderabad (Telangana), Jammu (Jammu & Kashmir), Port Blair (Andaman & Nicobar)  and Thane (Maharashtra) as part of the celebration of International Millet Year 2023.

(5) Activities/Achievements as part of “International Year of Millets (IYM)-2023)”-

Ministry organized a Global Food Event “World Food India” (WFI) from 3-5 November 2023 at Pragati Maidan, New Delhi. The event provided a supportive platform for interaction and synergy between producers, food processors, equipment manufacturers, logistics players, cold chain players, technology providers, start-ups & innovators, food retailers, etc., and showcased the country as an investment destination for Food Processing including possibilities for Shree Anna.

The Event was organized on the Ground Floors of Halls Nos 1,2,3,4,5,6 & 14 (measuring 49,174 sq meters of area) apart from open spaces of about 10,000 sq meters area in Paragti Maidan, New Delhi. Technical Sessions, Ministerial Meetings, and Industry Roundtables apart from inaugural and valedictory sessions were held in Bharat Mandapam. The event was one of the biggest congregations of senior government dignitaries, global investors, and business leaders of major global and domestic agri-food companies. Key Components of the Events were - Exhibition, Conferences and knowledge Sessions, Food Street, Sri Anna-based activities, Indian ethnic food products, and specific pavilion segments focussed on – (a) Fruits and Vegetables; (b) Dairy and value-added dairy products; (c) Machinery and Packaging; (d) Ready to Eat/ Ready to Cook & (e) Technology and Innovations, etc.

World Food India’ 2023 was inaugurated by Shri Narendra Modi, Hon’ble Prime Minister in the Plenary Hall of Bharat Mandapam on 3rd Nov 2023.  He inaugurated the exhibition in Hall No 14, visited the MoFPI pavilion and portions of the Technology Pavilion, and interacted with select Industry Representatives during the inauguration. The valedictory session of 'World Food India 2023' held on 5th November at Bharat Mandapam was graced by the esteemed presence of the Hon’ble President of India, Smt Droupadi Murmu.

World Food India had extensive participation from stakeholders across the board, including more than 1200 national and international exhibitors, representatives from 90 countries, 91 Global CXOs, 15 overseas ministerial and business delegations, and an MoU/ Investment promise of above Rs. 33,000 crore. Different activities like Exhibitions, exclusive pavilions on Technology, Machinery, Sub-sectors, etc, B2B, and B2G meetings, and 47 conferences/seminars were key attractions of the event. Ministry also organized a global Reverse Buyer Seller Meet in association with D/o Commerce & its associated bodies i.e. APEDA, MPEDA/Commodity Boards as a part of the Event.

1. Food Processing Sector

2. Food and Beverage Manufacturing

3. Food Processing Industry Trends

4. Food Processing Equipment

5. Food Processing Technology

6. Food Processing Management

7. Food Processing Operations

8. Food Processing Marketing

9. Food Processing Packaging

10. Food Processing Regulations

Citations for you:

[1] https://www.bodonews.info/2023/12/veer-baal-diwas-tribute-to-unwavering.html

[2] https://www.bodonews.info/2023/12/horn-please-quirky-phrase-and-cultural.html

[3] https://www.bodonews.info/2023/12/youth-delegation-from-jammu-and-kashmir.html

[4] https://youtu.be/3Mt_--krYe8

[5] https://youtu.be/scZEse6SRgU