Elaborate the policy taken by the Government of India to meet the challenges of the food processing sector.
The Government of India recognizes the immense potential of the food processing sector to curb agricultural wastage, enhance farmer incomes, and create employment. To address its challenges like inadequate infrastructure, supply chain gaps, and lack of credit, it has rolled out a multi-pronged policy framework.
A cornerstone initiative is the Pradhan Mantri Kisan Sampada Yojana (PMKSY), an umbrella scheme that focuses on creating modern infrastructure with an efficient supply chain from farm to market. A key component of PMKSY is the Mega Food Parks scheme, which aims to provide state-of-the-art facilities like collection centers, cold storage, and processing units in a centralized hub.
To boost domestic manufacturing and exports, the government has introduced the Production Linked Incentive (PLI) Scheme for the food processing industry. This scheme provides financial incentives to companies based on increased sales and branding abroad, encouraging them to scale up operations and compete globally.
The policy also promotes foreign investment by allowing 100% Foreign Direct Investment (FDI) under the automatic route in this sector. This brings in much-needed capital, technology, and best practices.
Furthermore, the government is supporting the creation of smaller agro-processing clusters and backward and forward linkages to connect farmers directly with processors. Specialised institutions like the National Bank for Agriculture and Rural Development (NABARD) provide a dedicated Food Processing Fund to offer affordable credit. These policies collectively aim to transform the sector into a modern, efficient, and globally competitive industry.
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Important Questions from GS3
Examine the pattern and trend of public expenditure on social services in the post-reforms period in India. To what extent this has been in consonance with achieving the objective of inclusive growth?
What are the causes of persistent high food inflation in India? Comment on the effectiveness of the monetary policy of the RBI to control this type of inflation.
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What is the present world scenario of intellectual property rights with respect to life materials? Although, India is second in the world to file patents, still only a few have been commercialized. Explain the reasons behind this less commercialization.
What were the factors responsible for the successful implementation of land reforms in some parts of the country? Elaborate.
