Chapter: Gist of Press Information Bureau Articles

Topic: Tapping The Huge Potential of Food Processing Sector

Q. What are the reasons behind wastage of agricultural and horticultural products?

Due to lack of efficient supply chains and processing infrastructure, the results in considerable amount of wastage of agricultural and horticultural produce. As per a study conducted by the Central Institute for Post-Harvest Engineering and Technology, post-harvest losses in 2009 were to the tune of Rs. 44,000 crore.

To harness the full potential of the food sector, the Ministry of Food Processing Industries launched new schemes in the 11th Plan, which are at different stages of implementation.

Q. What is Mega Food Parks Scheme?

• The Mega Food Parks have farm proximate facilities such as primary processing centres, collection centres and a central processing centre. The food processing units within a Mega Food Park use common infrastructure required for processing, packaging, quality control labs, trade facilitation centre etc, based on their needs.
• This cluster approach makes food processing more economically viable. The state-of-the art processing infrastructure gives them the required technical edge.

• Each Mega Food Park is envisaged to catalyse an investment of Rs. 250 crore, leading to annual turnover of about Rs. 400 – 500 crore. The scheme provides for a capital grant of 50 percent of the project cost (excluding the cost of land) subject to a maximum of Rs. 50 crore. In difficult and ITDP notified areas, the grant is even higher at 75 percent of project cost (excluding the cost of land) with a ceiling of Rs. 50 crore. The grant is utilized towards creation of common infrastructure in the Meg a Food Park and also setting up of Primary Processing and Collection Centres.

Q. What is the Scheme for Cold Chain, Value Addition and Preservation Infrastructure?

The Scheme for Cold Chain, Value Addition and Preservation Infrastructure intends to address the shortage of cold storage capacity. Huge gap of 9 to 10 million tonnes of cold storage capacity was identified in the country by the Task Force on Cold Chains.

The scheme aims at providing integrated and complete cold chain, value addition and preservation infrastructure facilities without any break, for perishables from the farm gate to the consumer. The assistance under the scheme includes financial assistance (grant-in-aid) of 50% of total cost of plant and machinery and technical/ civil works in general areas and 75% for North East region and difficult areas, subject to a maximum of Rs. 10 Crore.

Initially, 10 integrated cold chain projects are under implementation in different parts of the country. Out of these projects, 8 have started commercial production. Concurrent evaluation of projects reveals substantive value addition, reduction in wastage and enhancement in farmers’ income.

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