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Impact of Food
Processing on
Employment
Generation and
Skill Development
 Introduction:
• India has shifted from food scarcity to surplus over the past five
decades due to the Green Revolution.
• India leads in pulses and milk production, ranks second in
vegetables, fruits, wheat, and rice, and third in cereals and eggs
globally.
• The food processing sector in India has significant growth
potential, currently processing less than 10% of agricultural output.
• The sector is recognized as a ‘sunrise sector’ and prioritized under
the ‘Make in India’ initiative, supported by fiscal and monetary
incentives.
Role and Status of the Food Processing Sector:
• Contribution to GDP:
• The sector grew at an average annual growth rate of 8.38%
over the last five years ending 2020-21, compared to 4.87% in
agriculture and allied sectors.
• Contributed 10.54% to manufacturing and 11.57% to
agriculture Gross Value Added (GVA) in 2020-21.
• Despite the demand, the sector's share in overall GVA was
only 1.88% in 2020-21.
 Employment Generation:
• Employed 20.32 lakh individuals in the registered sector and
51.11 lakh in the unregistered sector as per the NSSO 73rd
round (2015-16).
• The Ministry of Food Processing Industries (MoFPI) promotes
employment through schemes like Pradhan Mantri Kisan
Sampada Yojana (PMKSY), creating 9.69 lakh direct/indirect
jobs.
• Pradhan Mantri Formalisation of Micro Food Processing
Enterprises (PMFME) launched under Atmanirbhar Abhiyaan
aims to formalize the sector and has sanctioned 65,094 loans
benefiting 2.3 lakh SHG members.
 Skill Development Initiatives:
• MoFPI collaborates with the Food Industry Capacity and Skill
Initiative (FICSI), the Sector Skill Council (SSC), and the
National Institute of Food Technology Entrepreneurship and
Management (NIFTEM) to address skilled manpower
shortages.
• By 2030, the food processing sector is expected to require 13.4
lakh skilled workers.
Role of NABARD in Food Processing and Storage
Infrastructure:
• NABARD manages the Food Processing Fund (FPF) and
Warehouse Infrastructure Fund to support sector
infrastructure.
• The FPF supports projects like Mega Food Parks, Industrial
Parks, and Agro Processing Clusters, creating diversified core
processing infrastructure.
• The Warehouse Infrastructure Fund (WIF) supports the
creation of scientific storage capacity, with 9.96 million MT
operationalized by March 2024.
 Conclusion
• The food processing sector in India plays a crucial role in
employment generation, GDP contribution, and skill
development. With the right policies, investments, and focus on
competitiveness and workforce skills, the sector can
significantly boost India's economy and global standing by
2047.
 India’s Food
Regulatory
Landscape:
Transitioning Towards
a Robust and
Contemporary
System
 National Food Control Systems
• Aim to ensure food safety for human consumption.
• Developed to meet specific country needs and priorities.
• Core objectives as defined by FAO:
o Protect public health by reducing food-borne illness risk.
o Protect consumers from unsanitary, unwholesome,
mislabeled, or adulterated food.
o Support economic development by maintaining consumer
confidence and providing a sound regulatory foundation for
trade.
Resilient Food Regulatory Ecosystem: Whole of
Government Approach
• Collaborative efforts of various ministries and departments in
India.
• Key entities: MoHFW, MoA&FW, MoFPI, MoWCD, Ministry of
Commerce & Industry, Ministry of Fisheries, EIC, APEDA,
MPEDA, Spices Board.
• FSSAI: Established in 2006, sets standards for food products,
oversees production, storage, distribution, and import.
 National Food Control System
• FSSAI's mandate includes formulating standards for food
products and additives, regulating manufacturing, storage,
distribution, import, and sale, and establishing an integrated
food safety surveillance system.
• Promotes self-compliance through training, certification, and
collaboration with international organizations.
 Role of Autonomous Organisations in Export
Trade
• Export Inspection Council (EIC): Official export certification
body, ensures product safety for export.
• APEDA, MPEDA, Tea Board, Coffee Board, Spices Board,
Coconut Development Board, CAPEXIL, SHEFEXIL, IOPEPC:
Various roles in promoting and regulating the export of
specific products.
 Conclusion
• India's national food control system involves several
ministries, state governments, research institutions, and
autonomous organizations.
• Key principles: Transparency, predictability, cohesiveness, and
a risk-based approach.
• State food safety authorities ensure compliance.
• FSSAI drives progress towards a safer, healthier food system
aligning with global standards.
Processed Foods:
Rising Demand
for Healthier
Food Options
 Introduction
o The fast-paced lifestyle has made processed foods popular
for quick meals.
o There's a growing shift towards healthier food choices due
to increased awareness of the impact of diet on overall well-
being.
 Significance of Healthy Eating
o Healthy food choices affect physical health, energy levels,
mood, and long-term vitality.
o An impressive quote on healthy eating: “The journey to
wellness starts with a single bite of intention.”
 NAFED's Initiatives for Healthier Food
o Millets
▪ Highly nutritious: rich in protein, fiber, vitamins, and
minerals.
▪ Benefits: low glycemic index (good for diabetes), gluten-
free, aids digestion, prevents asthma, supports heart
health.
▪ Promotion: Establishment of Millets Experience Centre at
Dilli Haat, partnerships, and international promotion.
 Bharat Atta
• Premium-quality whole wheat flour, high in dietary fibers,
vitamins, and minerals.
• Offered at concessional rates to manage market prices,
ensuring affordability and quality.
 Bharat Chawal
• High-quality rice varieties, rich in essential nutrients,
vitamins, and minerals.
▪ Affordable and nutritious, supporting the broader
movement towards healthier food choices.
 Bharat Dal
• Promotes cultivation and consumption of pulses like tur
dal and masoor dal.
• Nutritional benefits: high in protein, fiber, low in fat, rich in
complex carbohydrates, micronutrients, vitamins, and
minerals.
• Environmentally friendly: requires less water, improves
soil fertility.
 Impact of NAFED's Initiatives
o Supports farmers by promoting crop diversity and
sustainable agriculture.
o Provides consumers with nutritious, affordable food options.
o Aligns with government goals of food security and self-
sufficiency in pulse production.
o Encourages healthier dietary habits and environmental
sustainability.
 Conclusion
o The shift towards healthier food choices is essential for
addressing global challenges like climate change and food
security.
o NAFED's initiatives contribute to a resilient and sustainable
food system, benefiting both consumers and farmers.
o Embracing healthier options like Bharat Atta, Bharat Dal,
Bharat Chawal, and millets promotes nutrition, supports
local agriculture, and fosters sustainable practices.
Export Potential
and Global
Competitiveness
of Indian
Processed Foods
 Overview
• Significance: Major sector in the Indian economy with
extensive SME involvement.
• Key Products: Dairy, cereals, fruits, vegetables, animal
proteins, fish, spices, tea.
 Economic Contribution
• Employment: Substantial job creation.
• Income: Enhanced farmer income.
• GDP Contribution: Exports constitute 23% of GDP.
 Current Export Status
• Global Rank: 18th largest exporter, ~1.8% share in global
merchandise exports.
• Performance: Post-COVID-19 recovery with slight decline in
2023-24 to USD 437 billion.
 Export Landscape
• Composition: 10,000+ tariff lines, 11% of total exports are food
and agricultural products.
• Key Exports: Rice, spices, buffalo meat, sugar, oil meals.
• Markets: USA, China, UAE, Saudi Arabia, Bangladesh, Iran,
Indonesia, Vietnam, Sudan, Netherlands.
 Policy Initiatives
• Agricultural Export Policy (2018): Aim for USD 100 billion in
exports.
• Production Linked Incentive Scheme for Food Processing
Industry (PLISFPI) (2021):
o Focus: Ready-to-cook/eat foods, processed
fruits/vegetables, marine products, mozzarella cheese.
o Support: Branding and marketing, especially for SMEs.
 Infrastructure and R&D
• Pradhan Mantri Kisan Sampada Yojana (PMKSY):
o Goals: Infrastructure modernisation, technology adoption,
cold chains, processing facilities.
• Mega Food Parks: Modern facilities to meet international
standards, reduce spoilage, and increase value addition.
 Market and Product Potential
• UNCTAD WITS Data: India holds 3.7% share in top 10 globally
consumed commodities.
• Growth Areas: Pet food, bread, bakery items, wine, chocolate.
 Conclusion
• Potential: Significant opportunities for growth and economic
diversification.
• Strategy: Leveraging agricultural resources, modernising
infrastructure, ensuring compliance with standards, and
enhancing marketing efforts.
Smart Food
Processing in
India:
Innovation and
Future Prospects
 Overview
• Global Context: Poverty in developing countries drives
malnutrition, while smart food processing aims to reduce
staple food costs and enhance nutritional value.
• Technology: Utilizes biocompatible, innovative, modern, mild,
high-tech methods to increase functionality and nutrient
density of grain- and pulse-based foods.
• Innovation: Allows novel combinations of ingredients like
fruits, vegetables, meat, fish, dairy, or legumes with staple
foods.
 Current Status of Food Processing in India
• Market Growth: India is the fastest-growing major market for
packaged food globally.
• Industry Significance: One of the largest industries in the
Indian economy, comprising firms specializing in various
products from confectionery to beverages.
• Factors Driving Growth: Increased living standards, changing
lifestyles, urbanization, and demand for packaged and self-
cooked products.
 Current Status of Food Processing in India
• Trends: Rising demand for organic, healthy, nutritive, and
wellness products.
• Value-Added Foods: Popular in urban areas; include
convenience foods, processed fruits and vegetables, soft
drinks, pet food, alcoholic beverages, confectionery, and
sports drinks.
• Functional Foods: Include dietary supplements, fortified
products, and nutraceuticals with components like vitamins,
herbs, and plant-derived ingredients.
 Technological Innovations
• IoT in Food Processing:
o Function: Sensors monitor, analyze, and report changes in
food processing.
o Benefits: Enhances efficiency, storage, and logistics; offers
maintenance and promotional customer services.
o Future: Paradigm shift towards cost-effective and efficient
processes with IoT.
 Artificial Intelligence (AI) Applications:
o Impact: Ensures food safety, quality, and market orientation.
o Benefits: Improves traceability, reduces postharvest losses,
and aligns with smart food processing.
o Role: AI transforms traditional agriculture and introduces
precision in food processing.
 Robotics and Automation:
o Applications: Material handling, cleaning, quality inspection,
cutting, sorting, and packing.
o Benefits: Ensures safer outcomes, speed, continuous work,
and minimal stress.
o Innovations: Reprogrammable robots for general-purpose
conveying systems and assistive robotics.
 Challenges and Opportunities
• Infrastructure and Investment:
o Issues: Inadequate storage, compliance with hygiene
standards, and poor logistics.
o Needs: Improved physical infrastructure for handling
perishable produce.
 Conclusion
• Transformation: Food processing is evolving from traditional
methods to smart, innovative approaches.
• Health and Nutrition: Emphasis on enhancing nutritional value
and ensuring food safety.
• Economic Impact: Significant potential for economic growth
and development through smart food processing technologies
and innovations.
Join Me:
Instagram:- tiwariprashant26
Twitter:- Prashantt26
Telegram:- UPSCwithPrashant
(Prashant Tiwari)