Mega Food Park Scheme: Important Topics for UPSC Exams
is the scheme all about?
- It is a scheme of the Ministry of Food Processing Industry (MOFPI) of
the Government of India and is an inclusive concept.
- It proposes a demand driven/pre-marketed model with strong
backward/forward linkages and sustainable supply chain.
- Its objective is to establish a "direct linkage from farm to processing
and then to consumer markets" through a network of collection centres (CCs)
and primary processing centres (PPCs) so as to ensure optimization of value
addition, minimization of wastage, increasing farmer’s income and creating
employment opportunities particularly in rural sector.
- The scheme is based on a “Cluster” approach and envisages a well-defined
agriculture or horticultural-processing zone containing state-of-the art
processing facilities with support infrastructure and a well-established
What are the highlights of this scheme?
- The financial assistance is provided in the form of grant-in-aid at 50%
of eligible project cost in general areas and at 75% of eligible project
cost in the North East Region and difficult areas (Hilly States and ITDP
areas) subject to maximum of Rs.50 crores per project.
- 42 food processing units are expected to be operational within next 2
years out of which 8 are currently established and functional.(As of Oct.
- Collective investment of companies is expected to be at least 250 crores.
- A turnover of 400-500 crores and employment generation of at least 30000
from each mega food park is expected.
- Government has accorded an “infrastructure category” status to the
project through this scheme so as to provide incentive for further
investment and attract foreign investment.
What are the key objectives of the scheme?
- Increase processing of perishable items from 6% to 20%
- Increase India’s share in Food Processing Industry from 1.5% to 3%
How will it impact our society?
Economic Impact: Cost reduction of final processed food,
employment creation, better sales figure of farmers, Infrastructure
Social Impact: Rising farm income will lead to less
suicidal tendency and incidents among farmers; rise in income level of rural
India will help in better health and education opportunities especially for
women and children.
Make in India: Food Processing Industries will give impetus and fuel to this
Ease of Doing Business: Availability of raw material will
increase and faster delivery of goods will lead to better business
Food Security: Waste Management and Reduction will
improve net food items in the country which can be utilized under NFSA
(National Food Security Act) and therefore minimization of imports will take
Environmental: Better and efficient supply chain models
will lead to less trucks/vehicles on the road therefore less pollution and
ultimately helping India in achieve its INDC (Intended Nationally Determined
Contribution) under Paris Climate agreement.
Rural Development: Since the model is supposed to work
near collection centres therefore rural areas will experience industrial
development along with agricultural and horticultural development.
Mega Food Park scheme is very promising for rural development
and integration of rural and urban India through various supply chain linkages.
However, the working of the scheme in the last decade paint a different story
due to cost overrun, delayed projects and litigated projects. Since land is a
state subject therefore success of such scheme is possible only if there is
acooperative federalism and land issues are resolved outside of the court.