Introduction

Ministry of Food Processing

Food Processing includes process under which any raw product of agriculture, dairy, animal husbandry, meat, poultry or fishing is transformed through a process (involving employees, power, machines or money) in such a way that its original physical properties undergo a change and the transformed product has commercial value and is suitable for human and animal consumption

It includes value addition (primary and secondary), storage (cold and regular) , quality checks etc.

Ex: Tomatoes produced are processed to form Tomato Ketchup sachets

Farm to Market supply chain and the position of Food Processing sector in the value chain

Status in India

The sector constituted nearly 10.66% and 8.83% of G ross Value Added (GVA) in Agriculture sector and Manufacturing respectively in 2017-18

Though India is one of leading producers of agri produce, the level of processing is low (less than 10%). Around 2% of fruits and vegetables, 8% marine, 35% milk, 6% poultry are processed.

Processed food exports in 2018-19 contribute to 10. 7% of India’s total exportsMore than 75% of the industry is in unorganized sector.
Nearly 70 lakh persons are engaged in this sector
At present, Indiaâ agricultural exports predominantly consist of raw materials, which are then processed in other countries
There is lot of scope and potential in the food processing sector to move up the value chain in food processing

Scope and Significance

Doubling farmers income, crop diversification
Employment generation
Reduce wastage and malnutrition, increases shelf life, value addition

Boost exports and international trade and earn foreign exchange

Food security and reduce food inflation

Potential

Rise in disposable incomes
Increasing nuclear families and working women
Demand for functional foods and nutraceutical foods
Increasing urbanization and lifestyle choices

Challenges

Supply chain problems

Inadequate supply chain infrastructure

Lack of primary processing facilities, storage and distribution
Inadequate transport and storage facilities
Poor transportation and infrastructure

Structural problems

Procurement dependent on APMC markets
Seasonal variations and dependencies

Inadequate backward and forward linkages

Backward linkages

Link b/w production and processing that includes collection, primary processing, basic storage

Forward linkages

Meagre investments
Low value addition and low capacity utilization
Inadequate focus on quality and safety standards
Lack of product development and innovation

Way forward

Effective implementation of PM Kisan Sampada Yojana
Multi stakeholder

Conclusion

Food processing sector is vital to achieve the overall goal of ensuring availability, awareness, affordability, access, quality and safety of food

Governance

Market Intelligence and Early Warning System (MIEWS) Portal for Monitoring prices of TOP Crops (Tomato, Onion and Potato) and generating alerts
100% FDI allowed in FPI

Warehouse (Development and Regulation) Act, 2007
Warehousing Development and Regulatory Authority (WDRA) (Ministry of Consumer Affairs, Food and Public Distribution)
Agricultural and Processed Food Products Export Development Authority Act, 1985 (Ministry of Commerce and Industry)

PRADHAN MANTRI KISAN SAMPADA YOJANA PMKSY

Promotion and development of food processing sector
7 schemes are implemented under PMKSY

Integrated Cold Chain and Value Addition Infrastructure
Mega Food Parks
Creation of Backward and Forward Linkages
Creation/Expansion of Food Processing and Preservation Capacities
Infrastructure for Agro-Processing Clusters
Food Safety and Quality Assurance Infrastructure
Human Resources and Institutions

Integrated Cold Chain and Value Addition Infrastructure Scheme

Central Sector scheme under Ministry of Food Processing
Objective: To supplement agriculture, modernize processing and decrease agri-waste
Financial assistance is given in the form of grant-in-aid upto maximum of Rs. 10 crore per project
It is an umbrella scheme incorporating ongoing schemes of the Ministry of Food Processing

Earlier schemes like Mega Food Parks, Integrated Cold Chain and Value Addition Infrastructure, Food Safety and Quality Assurance Infrastructure, etc.
New schemes like Infrastructure for Agro processing Clusters, Creation of Backward and Forward Linkages, Creation of Food Processing & Preservation Capacities

Mega Food Parks

Ministry of Food Processing
Government has sanctioned 42 Mega Food Parks (MFPs) to be set up in the country under Mega Food Park Scheme and 18 are in operational now.
Objective

To provide modern infrastructure facilities for the food processing along the value chain from the farm to the market with a cluster based approach based on a hub and spokes model
Collection Centres CC
Primary Processing Centres PPCs and Central Processing Centres CPCs

It includes creation of infrastructure for primary processing and storage near the farm in the form of Primary Processing Centres (PPCs) and Collection Centres (CCs) and common facilities and enabling infrastructure like roads, electricity, water etc. at Central Processing Centre (CPC).
PPCs involve in pre-cooling, grading, pulping, sorting, waxing, packing, temporary storage
CPCs involve in pulping, packing, cold storage, quality check lab, logistic centre

Common facilities are created at CPC to be used by the processing units on hire basis which will reduce the cost of individual units significantly and makes them more viable.
Cluster based approach and Hub-Spoke model
A cluster of 30-35 food processing units is expected to come up in one Mega Food Park with an investment of about Rs. 250 Crore which is likely to benefit about 6000 farmers/ producers
MoFPI does not establish MFPs on its own but assist Special Purpose Vehicle (SPV) registered under the Companies Act and State Government/State Government entities/Cooperatives to establish MFPs.
Financial assistance is provided as grant-in-aid @ 50% of eligible project cost in general areas and @ 75% in NE Region and difficult areas subject to a maximum of Rs. 50 crore per project.

Food Fortification

Food fortification is the deliberate addition of one or more micronutrients to food so as to correct or prevent a deficiency and provide a health benefit
Fortification may be addition of one micronutrient or a range of micronutrient combinations
Food fortification is a â complementa strategy” and not a replacement of a balanced & diversified diet to address malnutrition.
Benefits

Health benefits, wide population coverage, cost-effective
Elimination of micronutrient deficiency diseases like Anaemia, goitre, xerophthalmia, etc. which are prevalent in India
Copenhagen Consensus estimates that every 1 Rupee spent on fortification results in 9 Rupees in benefits to the economy

Importance

Nearly 70% of people in India consume less than half of their recommended dietary allowance(RDA) of micronutrients.
The deficiency of micronutrients is also known as “hidden hunger”

In National Nutrition Strategy (Kuposhan Mukt Bharat), food fortification has been given a major thrust.
FSSAI

FSSAI has operationalized standards for fortification of:

wheat- flour-rice (with iron, Vitamin B12 and folic acid)
milk & edible oil (with Vitamins A and D)
double-fortified salt (with iodine and iron)

FSSAI also introduced +F logo for fortified foods

Food Safety and Standards (Fortification of Foods) Regulations, 2018

Notified by FSSAI
It has prescribed standards for fortification of various food products

All fortified foods must not fall below the minimum level of micro-nutrients
Every manufacturer and packer of fortified food shall give an undertaking on quality assurance
Every package of fortified food shall carry name of the fortificant and the logo to indicate

The Food Authority shall take steps to encourage the production, manufacture, distribution, sale, and consumption
Fortification of staple foods is not mandatory

Biofortification

It is the process by which the nutritional quality of food crops is improved through agronomic practices, conventional plant breeding, or modern biotechnology.
Genetic garden for bio-fortified plants/crops

It contains the germplasm of naturally bio-fortified crops or such crops through plant breeding.
It has plants and crops that help supplement micro-nutrient deficiencies, including iron, iodine, vitamin A and zinc among others.

Agro-irradiation center

An agro irradiation center is one where food products are subjected to a low dosage of radiation to treat them for germs and insects, thereby increasing their longevity and shelf life
India and Russia have agreed to collaborate in setting up integrated irradiation centres in India
Irradiation doses are recommended by the IAEA and the final product is absolutely safe.
It does not reduce the nutritional value of food products and does not change their organoleptic properties or appearance

AGMARK

Ministry of Agriculture and Family Welfare [NOT BIS]
Full form : Agricultural Mark
AGMARK is a quality certification mark provided by the GOI under Agricultural Produce(Grading and Marking) Act, 1937 as amended in 1986.
It means that the product/commodity is scientifically laid down and confirms the quality control and the best hygiene condition
Few AGMARK certified commodities are

Cereals and Pulses
Vegetable Oils and blended edible vegetable oils
Spices (whole and powdered) and powdered mixed spices
Compounded Asafoetida (Hing) [ inguva in Telugu ]
Ghee, Butter, Honey
Fruits, Vegetables

Organic Certified Foods in India are of Fruits, Vegetables, fibre and animal products but not cereals, pulses