Food Processing Policy of India-

Published: 9th Jan, 2020

In 2018, The Ministry of Food Processing Industries brought out Food Processing Policy of India. Through this govt emphasizes to make India Global Food Factory and Global Food Market and thus opens up immense opportunities for food processing sector.
Initiatives have also been announced for ushering into zero post-harvest wastage by creating a national food grid and national cold chain grid.
Other initiatives to attract incentives include capital subsidies, tax rebates, and reduced custom and excise duties, etc that will help in attracting more investment in this sector.
Also, the States have to create an ecosystem to allow single window clearances and other statutory clearances.

Major Issues-

Indian farmers are largely unorganised.
They rely on external agencies for disposal of their marketable surplus.
Lack of capital asset endowments in rural areas compels them to sell their produce at throwaway prices to the middlemen.
Low income from the primary farm produce and lack of investments in the processing and agri-value chain has caused rapid reduction in farm profits.

Types of Agro-based Industries-

Based on the input-output linkages and the interdependence between agriculture and industry, agro-industries can be of two types-

(a) Processing industries or agro-based industries- the agencies supporting agriculture by way of designing and manufacturing inputs for production and productivity growth of the primary sector are termed as agro industries.

(b) Input supply industries or agro-industries- these are the agro-based industries which process and add value to such agri-resources which contain ground and tree crops, fruits and vegetables, etc., as well as livestock for their day-to-day operations.

As per the International Standard Industrial Classification (ISIC) framework, agro-based industry consists of the manufacturing/processing of food and beverages, textile, footwear and apparel, leather, rubber, paper and wood and tobacco products.

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