Q7.Elaborate the policy taken by the Government of India to meet the challenges of the food processing sector.

India's food processing sector is crucial for reducing post-harvest losses, enhancing farmers' income, and generating employment. Despite its immense potential, it faces challenges such as inadequate infrastructure, fragmented supply chains, and lack of modern technology.

Integrated Development: PMKSY

The Pradhan Mantri Kisan Sampada Yojana (PMKSY) is a comprehensive umbrella scheme designed for integrated development of the food processing sector. It aims to create modern infrastructure, reduce food waste, and improve value addition across the entire supply chain by integrating various schemes.

Key Schemes for Infrastructure Development

• Mega Food Parks Scheme: Develops state-of-the-art infrastructure including processing units, cold storage, and logistics, linking farmers to markets.
• Scheme for Cold Chain, Value Addition and Preservation Infrastructure: Focuses on establishing integrated cold chain facilities from farm gate to consumer.
• Creation/Expansion of Food Processing & Preservation Capacities (CEFPPC): Provides financial assistance for setting up and expanding individual food processing units.

Fiscal and Credit Support

• 100% Foreign Direct Investment (FDI) under the automatic route to attract global investment.
• Tax benefits, customs duty rationalization, and concessional credit to promote investment and growth.
• Food processing is recognized under Priority Sector Lending, ensuring access to institutional credit.

Regulatory and Export Promotion Frameworks

• Food Safety and Standards Authority of India (FSSAI): Ensures stringent food safety and quality standards for domestic consumption and exports.
• Agricultural and Processed Food Products Export Development Authority (APEDA): Promotes the export of processed food products globally through various initiatives.

These comprehensive policies have significantly boosted infrastructure, attracted investment, and enhanced market access for farmers and processors. Continued focus on research and development, skill development, and strengthening farmer-processor linkages is vital for the sector's sustainable growth and realizing its full potential.