Ex-DSP Punjab Police

Engineering from IIT Madras

 The course here is a great strategy
to get an edge over others.
Can be finished in 12-13 Days.

18-12-2020
 TOPICS TO DISCUSS
 FOOD-PROCESSING SECTOR
 Pradhan Mantri Kisan Sampada Yojana
 New Mega Food Parks
 PM Formalisation of Micro food processing Enterprises
scheme

AGRICULTURAL EXPORTS
 FOOD-PROCESSING SECTOR
A well-developed food processing sector with
higher level of processing helps in the

 Reduction of wastage
 Improves value addition
 Promotes crop diversification
 Ensures better return to the farmers
 Promotes employment
 Increases export earnings.
 STATUS OF FOOD PROCESSING SECTOR
The sector constituted nearly 8.83% of Gross Value Added (GVA) in
Manufacturing sector in 2017-18.

Nearly 7 million persons are engaged in this sector.

The value of processed food exports in 2018-19 accounted for about

10.69% of India’s total exports.

The annual value of harvest and post-harvest losses of major

agricultural produces at national level was at Rs.92,651 crore calculated
using production data of 2012-13 at 2014 wholesale prices.
 PRADHAN MANTRI KISAN SAMPADA YOJANA (PMKSY)
PMKSY was earlier named as SAMPADA (Scheme for Agro- Marine
Processing and Development of Agro-Processing Clusters).

Objectives
 Creation of modern infrastructure for food processing mega food
parks/ clusters and individual units
 To create robust supply chain infrastructure for perishables.
 This central sector scheme has been approved for the period of 2016-
20 coterminous with the 14th Finance Commission cycle.
 PRADHAN MANTRI KISAN SAMPADA YOJANA (PMKSY)
It is an Umbrella Scheme.

Schemes under PMKSY -

 Mega Food Parks
 Integrated Cold Chain and Value Addition Infrastructure
 Food Safety and Quality Assurance Infrastructure
 Creation/Expansion of Food Processing & Preservation Capacities
 Infrastructure for Agro-processing Clusters
 Creation of Backward and Forward Linkages
 Human Resources and Institutions.
WHY IN NEWS
 Recently, Avantee mega Food Park in Dewas (Madhya radish) was
inaugurated. This is the first food park of central India.

Chief Minister Pinarayi Vijayan and Union Minister for Agriculture

and Food Processing Industries Narendra Singh Tomar jointly
inaugurated the Kinfra Mega Food Park. The ₹102.13-cr. park, State’s
first such facility, to give direct jobs to 4,000 people

Ministry of Food Processing Industries (MoFPI) launched Centrally

Sponsored ‘PM Formalisation of Micro food processing Enterprises
(PM FME) scheme’ as part of Atmanirbhar Bharat Abhiyan.
 MEGA FOOD PARKS (MFP)

It operates in “hub and spoke model” comprising Collection Centres (CCs)

and Primary Processing Centres (PPCs) as spokes and a Central Processing
Centre (CPC) as hub.

It includes creation of infrastructure for primary processing and storage

near the farm in the form of PPCs and CCs and common facilities and
enabling infrastructure like roads, electricity, water etc. at CPC.

These PPCs and CCs act as aggregation and storage points to feed raw
material to the processing units located in CPC.
 SIGNIFICANCE OF MFP SCHEME
The scheme intends to facilitate establishment of an integrated value
chain, with food processing at the core and supported by requisite
forward and backward linkages.

The scheme aims to bring together farmers, processors and retailers

and link agricultural production to the market to ensure maximization
of value addition, minimization of wastages and improving farmers’
income.

Government has so far approved 42 Mega Food Parks. However, only

18 MFPs have been operationalized.
 CHALLENGES OF MFP
The units in the MFP cannot own land and, therefore, they cannot use the
land as collateral to take loans from banks.

Delay in statutory clearances from State Government/Agencies.

The approach of the scheme is basically ‘one-size-fit-all’ and the scheme has
not been able to attract investors with different investment requirements.

The SPVs complaints that skill levels of workers are poor and skilled
workforce is not cheap.

The awareness of the scheme is low.

 PM FME SCHEME

‘PM Formalisation of Micro food

processing Enterprises (PM FME)
scheme’ is a Centrally Sponsored
scheme.

Scheme has Outlay of Rs 10,000

crore with sharing mechanism as
90:10 for hilly States and 60:40 for
other states
 FEATURES
Scheme adopts One District One Product (ODOP) approach to reap
benefit of scale.

States would identify food product for a district that could be a

perishable produce or cereal based product.

It would also focus on waste to wealth products, minor forest

products and Aspirational Districts.

Support will be provided for common infrastructure and branding

marketing for ODOP products
WHY IN NEWS

AGRICULTURAL EXPORTS
Recently, the High-Level Expert Group (HLEG) on Agricultural Exports
set up by the Fifteenth Finance Commission had submitted its report
to the Commission.
 STATUS IN AGRICULTURAL EXPORT
India is the second largest agriculture producer in the
world and has the largest arable land of 156 million
hectares.

In 2019, India exported USD 38.7 billion of agricultural

goods, which is only 7% of Indian agriculture production.

India ranks 13th in the world in agriculture exports despite

being leading producer of milk, bananas, mangoes etc.

From 2013 to 2020, growth has slowed down relative to

the impressive growth of 2009 to 2013.
 CAUSE OF SLOWDOWN
Low productivity due to small size of land holding

Low mechanization

High logistics costs

Limited value addition: India is a more prolific exporter of primary

commodities than of value-added agriculture products

Decreasing incentives to agri exports: While India has invested heavily

in a broad range of export promotion schemes such as Agriculture
Export Zones (AEZ), India’s export incentives have declined over
 CAUSE OF SLOWDOWN

Non-tariff barriers (NTB): Indian agriculture exports also face non-tariff

barriers stringent sanitary and phytosanitary (SPS) standards, residue
Limits for various pesticides, antibiotics, etc in attractive markets such
as Europe

COVID 19: The pandemic has accentuated the global food and
agriculture trends, which may result in decrease of agricultural exports
STAY TUNED…

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