ILP Advance - Module 3 VAN - Indian Agriculture Part 3

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ILP 2023 –INDIAN AGRICULTURE 3
AGRICULTURE-3 Notes
Contents
FOOD PROCESSING INDUSTRIES ................................................................................................. 4
Food Processing Unit ............................................................................................................ 18
Mega Food Park .................................................................................................................... 23
SUPPLY CHAIN MANAGEMENT ................................................................................................. 26
ECONOMICS OF ANIMAL REARING ........................................................................................... 35
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Previous Years Questions Notes
1. With what purpose is the government of India promoting the concept of

“Mega food parks”? - 2011
1. To provide good infrastructure facilities for the food processing industry.
2. To increase the processing of perishable items and reduce wastage.
3. To provide emerging and eco-friendly food processing technologies to
entrepreneurs.
Select the correct answer using the codes given below:
(a) 1 only.
(b) 1 and 2 only.
(c) 2 and 3 only.
(d) 1, 2 and 3.
2. What is/are the advantage/advantages of implementing the 'National

Agriculture Market' scheme? - 2018
1. It is a pan-India electronic trading portal for agricultural commodities.
2. It provides the farmers access to nationwide market, with prices
commensurate with the quality of their produce.
Select the correct answer using the code given below:
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
3. In India, markets in agricultural products are regulated under the - 2015

(a) Essential Commodities Act, 1955
(b) Agricultural Produce Market Committee Act enacted by States
(c) Agricultural Produce (Grading and Marking) Act, 1937
(d) Food Products Order, 1956 and Meat and Food Products Order, 1973
4. Which one amongst the following has the largest livestock population in the
world? - 2008
(a) Brazil
(b) China
(c) India
(d) USA
Mains PYQs Notes
1. Elaborate the scope and significance of the food processing industry in

India. 2022
2. What are the main bottlenecks in upstream and downstream process
of marketing of agricultural products in India? 2022
3. What are the challenges and opportunities of Food Processing Sector
in the country? How can income of the farmers be substantially
increased by encouraging food processing? - 2020
4. Elaborate the policy taken by the Government of India to meet the
challenges of the Food Processing Sector. - 2019
5. What are the reasons for poor acceptance of cost-effective small
processing unit? How the Food Processing unit will be helpful to uplift
the socio-economic status of poor farmers? - 2017
6. Explain Mega Food Park scheme of the govt. of India. - 2007
7. The Government of India has recently set up a Department of Food
Processing. What are its functions? -1988
8. A large quantity of food grains and fruits lost each year after harvesting
and during marketing. Describe briefly the steps taken in recent years
to prevent these losses. -1982
9. Examine the role of supermarkets in Supply Chain Management of
fruits, vegetables and food items. How do they eliminate number of
intermediaries? - 2018
10. Livestock Rearing has a big potential for providing non-farm
employment and income in rural areas. Discuss suggesting suitable. -
2015
11. Write a note on NDDB (National Dairy Development Board) - 2004
12. Discuss the role of Village Cooperative Movements in promoting rural
welfare and development in India. How is the NDDB (National Dairy
Development Board) achieving their objectives? -1979
NOTE: Revisiting PYQs should be mandatorily done. It will expose you to the
kinds of questions UPSC asks and will help in better understanding of the
concepts.
FOOD PROCESSING INDUSTRIES Notes
• The Indian food processing industry is among the largest in the nation
in terms of growth, production, consumption and exports.
• The industry produces several food products such as meat, poultry,
fisheries, fruits, vegetables, spices, milk and milk products, alcoholic
beverages, plantations and grains.
• It also manufactures cocoa products and chocolates, confectionery,
mineral water, soya-based items and high-protein foods.
• Since the liberalization, the government proposed and accepted
multiple projects, for instance, creating foreign collaborations, joint
ventures, 100% export-oriented units and industrial licenses to
encourage growth and investment in the food processing industry.
• Foreign direct investment (FDI) in India was estimated at Rs. 2,934.1
crore (US$ 368.8 million) in FY21.
• India is a major producer of food in the world, with a large and growing
market. The food and grocery retail market, valued at US$ 11.3 trillion
in 2021, is also among the largest in the global economy.
• India's food processing sector is a sunrise sector that has gained
prominence in recent years.
• Major processed food products exported from India include processed
fruits and juices, pulses, guar gum, groundnuts, milled products, cereals
preparations, oil meals and alcoholic beverages.
• India created history in agriculture and processed food exports by
exporting products worth US$ 25.6 billion in FY22.
• Export of APEDA products stood at US$ 7.4 billion as of April-June 2022,
up 31% compared with US$ 5.7 billion over the same period last fiscal,
according to the Directorate General of Commercial Intelligence and Notes

Statistics.
• Furthermore, exports of processed fruits and vegetables grew by
59.1%; cereals and miscellaneous processed items grew by 37.66%;
meat, dairy and poultry products grew by 9.5%; basmati rice grew by
25.5%; non-basmati rice grew by 5%; and miscellaneous products grew
by 50%.
• The food sector is currently undergoing a transition in India. The
Agricultural and Processed Food Products Export Development
Authority (APEDA) forecasts that the sector will grow at a compounded
annual growth rate (CAGR) of 3% between 2022 and 2030.
KEY FACTS
• The Gross Value added (GVA) in the food processing sector was Rs.2.24
lakh crore in 2019-20 contributing 1.69% of the total GVA in the country
• The FDI equity inflow in the Food Processing Sector for the period of
April 2021-March 2022 was USD 709.72
• The total FDI received in the food processing sector since April 2000 till
March 2022 was US$ 11.08 Bn.
Food Processing
• Food processing can be divided into primary and secondary products,

so food that is being prepared from the raw material after processing
comes under primary products like vegetables and fruits, while the food
products that are being processed from primary food products to
obtain a new food product is called secondary food products like jam,
butter, sauces, etc. Food processing is done to make new products out
of existing primary food products and also to increase their shelf-life so
that it stays fresh for longer.
• Similarly, the place where all this food processing is done is known as
the food processing industry it can be a large-scale industry or a small-
scale home-based industry.
Working Procedure of Food Processing Industries: Notes

• Food processing industries adopt a unique procedure to increase the
shelf-life of food products by processing them with chemical reagents
and preservatives.
• Also, these industries blend different food products to form a new
food product, for example, food processing industries make sauces by
blending tomatoes, with different salts, oils, and spices.
• Also, some preservative chemicals like citric acid, salt, vinegar,
butylated hydroxy toluene (BHT), butylated hydroxy anisol (BHA),
calcium propionate, etc. are used by FPI to increase the shelf life of
the existing food products.
Importance of Food Processing Industries (FPI):

• India is an agriculturally prosperous nation and more than 50% of its
population is employed in the agricultural sector. Thus, India has a
surplus number of raw materials for food processing industries. In 2018-
19 the total production of Horticulture products in India was 313.85
million tons.
• With the help of food processing industries, India easily processes raw
products into processed foods.
• As the agricultural sector is the major contributor to the Indian
economy all the related sector like the food processing industry helps
in creating employment and simultaneously benefit the economy of the
country. According to the Food Processing Minister in 2020-21, the food
processing industry contributes 12.8% to India’s GDP.
• Food processing is the next step in sustainable development as
processed foods are less likely to get rotten thus reducing food wastage.
• Due to its longer shelf life, processed food can be smoothly exported to
different parts of the world.
India holds the Fifth-largest food and grocery market in the world with 70% Notes
of retail sales.
Scope of Food Processing Industries in India:

• Globally India holds the number 1 ranking in producing some of the
major products like mango, papaya, banana, milk, ginger, guava, etc.
Also, India is a mass producer of sugar, cashew nuts, potato, rice, wheat,
etc.
• Apart from food products India also produces a significant amount of
coffee and tobacco every year.
• Spices are among one of the most exported food products of India. With
the help of FPIs India is making processed spices that can easily be
transported with a shelf life of more than a year.
• The diverse climatic condition and availability of different kinds of soil
help India produce different kinds of food throughout the year.
Additionally, the numerous sea coasts, rivers, and lakes cater to the
supply of non-vegetarian food items.
• Establishing FPIs in rural areas of India provides a significant amount of
resources at the same place along with cheap labor. Thus, in 2022 the
Government of India issued a fund of Rs. 2941 crore via NABARD to
support the Food processing Industries and Food parks.
• With the help of the Food processing industries (FPI), Indian farmers will
be able to directly sell their crops to the industry for better output.
• The demand for food items is significantly increasing with the increased
population and thus more FPIs are needed to meet the demand.
• The Government of India is making significant efforts for the
enhancement of FPIs in India and thus many investments in FPIs can
prove to be quite profitable.
• India has the distinct advantage of being one of the largest markets of
consumer products in the world.
• India is the second-largest grower of fruits and vegetables (only next to
China) as well as the largest grower of agriculture produced in the
world.
• Huge production scope – Despite being a leader in produce, India has a
minimal yet growing processed food base, thereby indicating that a
huge opportunity exists in this sector.
• Large segments of the population – Unlike many other developed
countries, India is a young nation, with a large population of
adolescents, young adults, and middle-aged groups. This presents a
business opportunity for designing several food products catering to Notes

different consumer groups.
• Rising awareness for healthy and organic products – The pandemic has
renewed our interest in healthy living, controlled diet, reducing sugar,
and fat intake. Thus, natural products made from organic fruits and
vegetables such as nutritional supplements, snacks, etc are here to
stay.
Location of Food processing industries (FPI) in India:

• The food processing industries are divided into many segments like
grain processing, meat and poultry, fruits, and vegetables, marine
products, consumer foods, etc. However, all these food items are
produced in FPIs located in different regions of India like Gujarat,
Maharashtra, Andhra Pradesh, Kerala, Punjab, Uttar Pradesh, and West
Bengal. The FPIs in India are mainly located along with the coastal states
because of the raw material availability and ease of transportation.
• As per the ASI (Annual survey of India) and data presented by the
Ministry of Food Processing there are around 37,175 registered
processing industries across India.
Challenges to FPI in India:

• Climatic Condition: It is often seen that due to bad weather many
farmers in India lose their crops every year thus resulting in a short
supply of raw materials for the food processing industries.
• Lack of technology: There is still a need for advanced technology
to be adopted in food processing industries to make it more
efficient.
• Infrastructure: Due to poor infrastructure it becomes difficult to
transport food items from one place to another.
• Food Standards: Every nation has its food standards for
consumable food items and thus, the food processing industries
must satisfy all these food standards. However, there are not
enough laboratories in India to check these food items as per the
standards.
Government’s Initiatives Notes
100% Foreign Direct Investment in Processed Food Businesses

• With a view to promoting strategic partnerships in the Indian food
processing sector, the government has allowed 100% FDI in businesses
dealing in processed foods.
• Indian brands can benefit from a foreign player’s technology in
manufacturing and processing.
• Food processing is also recognised as one of the 25 areas of focus under
Make in India; hence the automatic approval route is open to foreign
partners looking for investment in India’s food business.
PM Kisan Sampada Yojana

• Government of India (GOI) has approved a new Central Sector Scheme
– Pradhan Mantri Kisan SAMPADA Yojana (Scheme for Agro-Marine
Processing and Development of Agro-Processing Clusters) with an
allocation of Rs. 6,000 crores for the period 2016-20 coterminous with
the 14th Finance Commission cycle. Pradhan Mantri Kisan Sampada
Yojana was implemented with an outlay of INR 6,000 Crore for the
period 2016-20 but now the scheme has been extended till March 2026
with an allocation of INR 4,600 Crore.
• The scheme is implemented by Ministry of Food Processing Industries
(MoFPI). Pradhan Mantri Kisan SAMPADA Yojana.
• PM Kisan SAMPADA Yojana is a comprehensive package which will Notes

result in creation of modern infrastructure with efficient supply chain
management from farm gate to retail outlet. It will not only provide a
big boost to the growth of food processing sector in the country but also
help in providing better returns to farmers and is a big step towards
doubling of farmers income, creating huge employment opportunities
especially in the rural areas, reducing wastage of agricultural produce,
increasing the processing level and enhancing the export of the
processed foods.
The following schemes are implemented under PM Kisan SAMPADA Yojana:

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

• A mega food park is an integrated facility that provides storage,
processing. Additionally, value additions to a large number of players in
the food processing industry. Under the Mega Food Park Scheme, the
Government of India provides financial assistance up to Rs. 50.00 Crore
per Mega Food Park project.
• Most food parks have the following services – tetra-packaging, food
testing laboratories, drying chambers for spices and agricultural
produce, cold storage, warehousing, packaging and printing facilities
• Thus, the food park provides financial incentives to investors. It also
provides convenience to processors and companies utilising its
facilities, in addition to generating employment and better services.
Operation Greens
• Ministry has been implementing a Central Sector Scheme- “Operation
Greens” under Pradhan Mantri Kisan SAMPADA Yojana since
November, 2018. The scheme has two components namely short-term
interventions and Long-Term Interventions i.e. Value Chain
Development Projects.
• In the budget 2018-19, the government announced the Operations
Greens scheme to promote integrated value chain development for
crops. They are tomatoes, potatoes, and onions.
• Post-harvest processing facilities will be eligible for a grant in aid of up
to 50% of the project cost. It also subjects to the maximum limit of 50
crores.
• In pursuance of budget announcement 2021-22, the scope of long-term Notes

interventions i.e. value chain development under this scheme has been
expanded from TOP crops to 22 Crops. The scheme guidelines for 22
crops along with the list of production clusters have been notified on
08.06.2022 and now, Grants-in-aid is provided in the range of 35%-50%
for setting up of value chain development projects.
• Expression of Interest (EOI) for inviting project proposals from eligible
entities as per scheme guidelines was floated on 21.06.2022 and in total
44 projects have been approved in November, 2022 against 56
applications received. In addition, provisional approval has been given
by the Ministry recently for two more Value Chain Development
projects for Onion and Potato. Thus, total 46 new projects approved
under Operation Greens Scheme in the Calendar Year 2022.
PM Formalization of Micro Food processing Enterprises

• This scheme aims at helping small micro-units engaged in the food
processing industry.
• Many businesses at the grass-root level such as chilli drying, spice
packaging, pickle, and papad making engage directly with farmers.
• Recognising the role of such micro-units, a 35% subsidy can be availed.
It is by such units on their project cost, up to a maximum of ₹10 lacs.
Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)

• Production Linked Incentive Scheme for Food Processing Industry
(PLISFPI) to support creation of global food manufacturing champions
commensurate with India’s natural resource endowment and support
Indian brands of food products in the international markets with an
outlay of Rs.10900 crore.
Background
• The food processing sector in India encompasses manufacturing
enterprises in all the segments from micro to large industries.
• India is having competitive advantage in terms of resource endowment,
large domestic market and scope for promoting value added products.
• Achieving full potential of this sector would require Indian companies
to improve their competitive strength vis-à-vis their global counterpart
in term of scale of output, productivity, value addition and their linkages
with the global value chain.
• The Production Linked Incentive Scheme for Food Processing Industry
has been formulated based on the Production Linked incentive scheme
of NITI Aayog under “AatmaNirbhar Bharat Abhiyaan for Enhancing Notes

India's Manufacturing Capabilities and Enhancing Exports”
Scheme Objectives:
• Support Food manufacturing entities with stipulated minimum Sales
and willing to make minimum stipulated investment for expansion of
processing capacity and branding abroad to incentivise emergence of
strong Indian brands.:
• Support creation of global food manufacturing champions;
• Strengthen select Indian brand of food products for global visibility and
wider acceptance in the international markets;
• Increase employment opportunities of off-farm jobs,
• Ensuring remunerative prices of farm produce and higher income to
farmers.
Salient features:
• Central Sector Scheme with an outlay of Rs. 10900 crores.
• The first component relates to incentivising manufacturing of four
major food product segments viz. Ready to Cook/ Ready to Eat (RTC/
RTE) foods including Millets based products, Processed Fruits &
Vegetables, Marine Products, Mozzarella Cheese.
• Innovative/ Organic products of SMEs including Free Range - Eggs,
Poultry Meat, Egg Products in these segments are also covered under
above component.
• The selected applicant will be required to undertake investment, as
quoted in their Application (Subject to the prescribed minimum) in
Plant & Machinery in the first two years i.e. in 2021-22 & 2022-23.
• Investment made in 2020-21 also to be counted for meeting the
mandated investment.
• The conditions of stipulated Minimum Sales and mandated investment
will not be applicable for entities selected for making innovative/
organic products.
• The second component relates to support for branding and marketing
abroad to incentivise emergence of strong Indian brands.
• For promotion of Indian Brand abroad, the scheme envisages grant to
the applicant entities for - in store Branding, shelf space renting and
marketing.
• Scheme will be implemented over a six-year period from 2021-22 to
2026-27.
Implementation strategy and targets Notes

• The scheme will be rolled out on All India basis.
• The scheme shall be implemented through a Project Management
Agency (PMA).
• The PMA would, inter-alia, be responsible for appraisal of applications/
proposals, verification of eligibility for support, scrutiny of claims
eligible for disbursement of incentive
• The incentive under the scheme would be paid for six years ending
2026-27. The incentive payable for a particular year will be due for
payment in the following year. The duration of the scheme will be six
years i.e. 2021-22 to 2026-27.
• The scheme is "fund-limited", i.e. cost shall be restricted to the
approved amount. The maximum incentive payable to each beneficiary
shall be fixed in advance at the time of approval of that beneficiary.
Regardless of achievement/ performance, this maximum shall not be
exceeded.
• The implementation of the scheme would facilitate expansion of
processing capacity to generate processed food output of Rs 33,494
crore and create employment for nearly 2.5 lakh persons by the year
2026-27.
Administrative and Implementation Mechanisms

• The Scheme would be monitored at Centre by the Empowered Group
of Secretaries chaired by the Cabinet Secretary
• Inter-Ministerial Approval Committee (IMAC) would approve selection
of applicants for coverage under the scheme, sanction and release of
funds as incentives.
• The Ministry will prepare Annual Action Plan covering various activities
for implementation of the scheme.
• A third-party evaluation and mid-term review mechanism would be
built in the programme.
Major impact, including employment generation potential

• The implementation of the scheme would facilitate expansion of
processing capacity to generate processed food output of Rs 33,494
crore and;
• Create employment for nearly 2.5 lakh persons by the year 2026-27.
FRUIT SECTOR Notes
DAIRY SECTOR
FOOD AND GRAINS SECTOR Notes
POULTRY & MEAT SECTOR
FISHERY & MARINE SECTOR Notes
SPICES SECTOR
Food Processing Unit Notes

• Food processing unit converts raw material into a consumable product
via different techniques and methods. Such units are an important part
of practices such as horticulture, agriculture, animal husbandry,
plantation, and fisheries. It also entails other companies that leverage
agricultural inputs for preparing eligible items. This food manufacturing
industry is one the most stable businesses which could generate
proliferating profit overtimes if managed well.
An Overview on India’s Food Processing Sector

• The food processing unit has a pivotal role to play in connecting Indian
agriculturists to customers in the local and global markets.
• The Ministry of Food Processing Industries (MoFPI) is striving hard to
increase the volume of investment across the value chain.
• The industry employs more than 1.93 million people, spanning over
39,748 registered units with fixed capital of $32.75 bn.
• The primary industries constituting this industry are sugar, grains,
beverages, edible oils, & dairy products.
• Last year Indian Government sanctioned more than 130 food
processing projects across different states.
• The key sub-segments of such industries include Fisheries, Dairy,
Poultry & Meat processing, Fruits & Vegetables, Food retail, etc.
What is the Importance of Food Processing Business?

• Food processing is a critical process that ensures consistent availability
of food for the general public regardless of its perishable variety and its
seasonal nature.
Notes
A Viable Approach to Setup Food Processing Unit in India

• The government of India had underpinned various schemes as well as
policies to help establish food processing units.
• GOI also facilitates ample funding to this sector for modernizing the
industries.
• To commence a food business in India, an FSSAI license is mandatory.
FSSAI is the body that administers food safety laws and issues Food
licenses to eligible entities.
• At present, FSSAI license is available under a 3-tier system i.e., Basic,
State, and Central depending on the annual turnover of the applicants.
Role of Food Processing unit in uplifting the socio-economic status of poor Notes
farmers:
• India is known for its multi agro-climatic zone, thus producing a wide
variety of farm produce, which provides necessary impetus for food
processing industries to sustain and thrive.
• A well-developed agro and food processing sector will reduce wastages,
ensure value addition, generate additional employment, earns foreign
exchange and ultimately leads to better socio – economic condition of
millions of farm families.
• Thus, the growth of this sector would be critical for accomplishing the
4% average annual growth rate of agriculture.
• This agriculture growth rate may also be considered as a pre –requisite
for achieving the overall target of 9% growth rate for Indian economy.
• The recurring nature of food inflation in the country has also brought in
sharp focus ‘supply side’ constraints which points to the need for
increasing agricultural production.
• At the same time, it is equally important to save each grain produced
by reducing the wastage. This would improve farmer’s income and
economic viability of agricultural operations.
• The agriculture sector is and will remain central to India's economic
security in the foreseeable future. As the largest private enterprise
(~138 million farm families) in India, agriculture contributes nearly 15%
of the national GDP and engages about 50% of the workforce.
• Therefore, almost half of the workforce in India still remains dependent
on agriculture. Given the low share of this workforce in the GDP, on
average, it earns much lower income poorer than its counterpart in
industry and services.
• Hence growth in agriculture and allied sectors remains a 'necessary
condition' for inclusive growth. But farm output growth has been rather
tardy – a mere 2.2 to 2.3 per cent average for the last 10 years. In other
words, incomes in the hands of nearly 60 per cent of the population
eking out a living on farm and related activities have not grown.
Agrarian crisis is visible.
• This leads to rapid migration of rural folks into urban and semi-urban
areas in search of livelihood.
• Compared to other leading countries in the world, availability of arable
area is much lower in India (arable area Sq.m. per capita in India in 2015
was 1582, USA -2028, Russia. 16476), but employment in agriculture as
per cent of total employment is 57.4 [USA – 15.6, Russia 1.6] and share
of GDP is 23 per cent [USA 8%, Russia 1%] and rural population as a per
cent of total population is 72 per cent [USA 37%, Russia 22%]. These Notes
facts highlight the significance of agriculture sector in our economy
even in the globalized era.
• Government has taken several measures to strengthen credit flow to
agriculture, higher budgetary support to irrigation projects and rural
infrastructure. Over the years, food and agriculture subsidy has been
increasing. Experts treat subsidy as a persistent malady affecting the
fiscal health of the economy.
• The government’s present policy is to declare minimum support price
or central issue price of agricultural produce whenever the market price
is unremunerative.
• All these measures are not new and have been impacting agriculture for
past decades but problem of agriculture still remains. The crux of the
problem is how to ensure outcomes from outlays? How to benefit
farmers and save them from distress? and how to make Indian
agriculture globally competitive?
• The practical remedy would be to ensure remunerative price of the
agricultural produce by making it more marketable by the simple device
of processing it, packaging it and prolonging its durability.
• The desired growth of India’s agriculture and allied sector in general and
economic prosperity of rural farmers in particular are achievable only
with an effective integration and synergy between agriculture and agro-
based industries.
• Food processing adds value, enhances shelf life of the perishable agro-
food products, encourages crop diversification and ensures
remunerative market price of the agricultural produce by making it
more marketable.
• The use of appropriate processing technology for surplus production of
cereals, fruits, vegetables, milk, fish, meat, poultry etc. extensive
Research and Development in innovative food technologies and better
marketing conditions both inside and outside the country would ensure
backward and forward linkage benefits to the Indian small and marginal
farmers.
• It is estimated that this sector, due to its linkage effects, has the largest
employment generating potential per unit of investment. Food
processing coupled with profitable marketing has the potential of
solving the basic problems of agricultural surplus, unnecessary and
unwanted wastage, rural urban disparity in the field of development,
disguised unemployment and poverty in rural areas by ensuring better
remunerative prices to the small and marginal farmers.
• Food processing industry has also a bright future due to India’s Notes
demographic environment. India has relatively young population with
close to 55% of population in the age group of 20-29 years.
• This group is also high in consumption and this trend is expected to
provide a further boost to the growth of consumption in India. Increase
in the number of working women, increase in nuclear double income
families and also the process of urbanisation are some other factors
that stimulate the demand for processed and convenience Food.
• Economic liberalisation and rising consumer prosperity is opening new
opportunities for diversification in food processing sector.
• This sector is widely recognised as a sunrise industry in India having
huge potential for uplifting agricultural economy, creation of large scale
processed food manufacturing and food chain facilities and the
resultant generation of employment and export earnings.
• India has also enormous growth potential from its current status of
being the world’s second largest food producer to the world’s number
one producer in the coming years.
• These produces, if processed and marketed smartly, can make India a
leading food supplier of the world. But the dismal picture is that we
currently process only a smaller portion of the available agro-produce.
Mega Food Park Notes
• The Scheme of Mega Food Park aims at providing a mechanism to link

agricultural production to the market by bringing together farmers,
processors and retailers so as to ensure maximizing value addition,
minimizing wastage, increasing farmers income and creating
employment opportunities particularly in rural sector.
• The Mega Food Park Scheme is based on “Cluster” approach and
envisages creation of state of art support infrastructure in a well-
defined agri/ horticultural zone for setting up of modern food
processing units in the industrial plots provided in the park with well-
established supply chain. Mega food park typically consists of supply
chain infrastructure including collection centers, primary processing
centers, central processing centers, cold chain and around 25-30 fully
developed plots for entrepreneurs to set up food processing units.
• The Mega Food Park project is implemented by a Special Purpose
Vehicle (SPV) which is a Body Corporate registered under the
Companies Act.
• State Government, State Government entities and Cooperatives are not
required to form a separate SPV for implementation of Mega Food Park
project. Subject to fulfillment of the conditions of the Scheme
Guidelines, the funds are released to the SPVs.
The scheme has been discontinued by the Government with effect from Notes
01.04.2021 with provision for committed liabilities for ongoing projects only.
So far following 22 Mega Food Parks are operational:

• Srini Mega Food Park, Chittoor, Andhra Pradesh.
• Godavari Mega Aqua Park, West Godavari, Andhra Pradesh.
• North East Mega Food Park, Nalbari, Assam.
• Indus Best Mega Food Park, Raipur, Chhattisgarh.
• Gujarat Agro Mega Food Park, Surat, Gujarat.
• Cremica mega Food park, Una, Himachal Pradesh.
• Integrated Mega Food Park, Tumkur, Karnataka.
• Kerala Industrial Infrastructure Development Corporation (KINFRA)
Mega Food Park, Palakkad, Kerala.
• Indus Mega Food Park, Khargoan, Madhya Pradesh.
• Avantee Mega Food Park, Dewas, Madhya Pradesh.
• Paithan Mega Food Park, Aurangabad, Maharashtra.
• Satara Mega Food Park, Satara, Maharashtra.
• Zoram Mega Food Park, Kolasib, Mizoram.
• MITS Mega Food Park, Rayagada, Odisha.
• International Mega Food Park, Fazilka, Punjab.
• Sukhjit Mega Food Park, Kapurthala, Punjab.
• Greentech Mega Food Park, Ajmer, Rajasthan.
• Smart Agro Mega Food Park, Nizamabad, Telangana.
• Tripura Mega Food Park, West Tripura, Tripura.
• Patanjali Food and Herbal Park, Haridwar, Uttarakhand.
• Himalayan Mega Food Park, Udham Singh Nagar, Uttarakhand.
• Jangipur Bengal Mega Food Park, Murshidabad, West Bengal.
• Haryana State Industrial and Infrastructure Development Corporation
Ltd (HSIIDC), Haryana.
PM Formalisation of Micro Food Processing Enterprises (PMFME) Notes

• The Prime Minister- Formalisation of Micro Food Processing Enterprises
(PM-FME) scheme, aimed at promoting ‘vocal for local’ in the sector,
under the Atmanirbhar Bharat Abhiyan, was launched in June 2020 to
support 2 lakh micro food processing units with credit linked subsidy
with a total outlay of Rs. 10,000crores over the period 2020-2025.
• The Scheme adopts One District One Product (ODOP) approach to reap
the benefit of scale in terms of procurement of inputs, availing common
services, and marketing of products.
• These ODOP has been approved for 713 districts of 35 States/ UTs with
137 unique products.
Economic Achievement of Food Processing Sector

• Food processing sector has been identified as one of the Champion
Sectors under “Make in India” and has emerged as an important
segment of the Indian economy in terms of its contribution to GDP,
exports, investment and employment.
• The export of Processed-Food Products has increased from US$ 8.56
billion in 2020-21 to US$ 10.42 Billion in 2021-22. The share of
processed food exports in total Agri- food exports has increased to
22.6% in 2021-22.
• During 2021-22, food processing sector attracted US$ 709.72 Million of
Foreign Direct Investment (FDI).
SUPPLY CHAIN MANAGEMENT Notes
• “Supply chain means flow & movement of goods from the producers to
the final consumers”. Supply Chain is a sequence of flows that aim to
meet final customer requirements that take place within and between
different stages along a continuum, from production to final
consumption.
• Supply chain management is the synchronization of production,
inventory, location, and transportation among the participants in a
supply chain to accomplish the best mix of receptiveness and
effectiveness for the market being served.
• The Supply Chain not only includes the producer and its suppliers, but
also, depending on the logistic flows, transporters, warehouses,
retailers, and consumers themselves.
A supply chain is an integration of: All facilities, functions, activities, associated

with the flow and transformation of goods and services from backend
(production house) to front end (customer base). An integrated group of
processes to “source,” “make,” and “deliver” products.
All process which involves the flow of information from backend to frontend
and vice versa.
According to Cooper et al. Supply chains are the conduits through which:
• Products move from producers to consumers.
• Payments, credit and working capital move from consumers to
producers.
• Technology and advanced techniques are disseminated among
producers, packagers and processors.
• Ownership rights pass from producers to processors and ultimately to
marketers.
• Information on current customer demand and on retail level product
preferences pass back from retailers to producers.
Supply Chain Management

• In present times, Supply chain management (SCM) has received a great
deal of attention from worldwide practitioners and researchers both
from academic and industrial background. Due to the emerging trends
of globalization and the increasing saturation of markets, competition
has become more intense in recent years.
• These competitive environments have forced companies to collaborate
more closely using the concept of supply chain management.
• Supply chain management is an approach to design value chains or Notes

marketing chains by optimizing the interorganizational flow of material,
information and capital in order to reduce the system wide costs and
enhance customer value.
A supply chain management is:

A set of approaches used to efficiently integrate:
• Suppliers
• Manufacturers/producers
• Warehouses
• Distribution centre
• Consumer base
So that the product is produced and distribute:
• In the right quantities
• To the right locations
• At the right time
System-wide costs are minimized and service level requirements are satisfied.
Indian Agri-food sector Notes

• Agriculture was and is one of the largest employment sectors in the
world and for India it’s the major or the primary source of employment.
• More than half of Indian population depends on agriculture as their
primary source of livelihood. Agriculture is the backbone of Indian
Economy. The occupational structure of Indian workforce can be
divided into three classes.
• Agri-food sector constitute the primary sector of the occupational
structure.
• India is the fruit and vegetable basket of the world. India being a home
of wide variety of fruits and vegetables holds a unique position in
production figures among other countries. Estimates currently suggest
that India ranks second in terms of farm output, first being China.
• Although there have been a large number of people involved in
agriculture in India, still there is a food crisis.
• In India, agriculture got its dimension during green revolution. This
introduced several new scientific methods, which increased the food
productivity. But still, In India, 37 % live below poverty line and several
hundred die due to malnutrition.
• Although the green revolution in India led to sizeable increase in terms
of productivity that too in certain crops but the overall growth in terms
of farmers economic status is unremarkable.
• Agriculture derives its importance from the fact that it has vital supply
and demand links with the manufacturing sector. The basic
characteristic which is common in agriculture and manufacturing sector
is: “Production”
Challenges in Indian Agri-food Sector

• “Agriculture sector is witnessing radical changes and challenges at
national and global level. The demand for agricultural commodities is
steeply rising; food preferences of the next-generation consumers are
changing; and agriculture sector is struggling with decelerating
profitability which is dragging its performance.
• The emerging challenges and opportunities call for a paradigm shift in
the innovation driven agricultural research system to connect
inventions with all the stakeholders in the entire food supply chain”.
Two different types of contrasting trends have been noticed in present
times with respect to present Indian scenario:
o India is being recognized as the global power in the key
economic sectors with consistent high economic growth and
o Its slow growth observed in the agriculture sector is causing Notes

concerns for the future food and nutritional security of the
country.
Agri-food Supply Chain Management

The agricultural sector provides an important contribution in the development
of a country due to its contribution in both economic and environmental
development. As the backbone of the development in most of the developing
countries, agriculture holds important roles in deciding the stability of the
economy of the country itself. Statistical figures show that 70% of the world
population lives in rural areas and only 38% of the land in the world is used for
agriculture cultivation, depleting from time to time, due to industrial expansion
and human population growth (World Bank, 2010). Achieving sustainability in
agricultural contexts means meeting three challenges commonly known as
3P’s, that are:
(a) profit – strengthening the viability and competitiveness of the
agricultural sector;
(b) planet – the ecological challenge of promoting good environmental
practices; and
(c) people – the social challenge to improve the living conditions and
economic opportunities in rural areas.
Consumer’s wants and preferences are not transmitted directly to the farmers
who produce or plant the crops. Hence, there are missing links in connecting
consumers at one end, and farmers at the other have summarized the following
specific aspects of Agri-food supply chains:
• Shelf-life constraints for raw materials.
• Perish ability of products.
• Long production throughput time.
• Seasonality in production.
• Conditioned transportation and storage required.
• Storage-buffer capacity restrictions, when materials or products can
only be kept in special containers.
• Governmental rules concerning environmental and consumer-related
issues (CO2 emission, food-safety issues).
• Physical product features like sensory properties such as taste, odour,
appearance, colour, size and image.
• Convenience of ready-to-eat meal.
A general optimization problem related to Agri-food supply chain can be Notes

written as:- Objective Function-
• Minimize the sum of costs of production and transportation.
• Maximize the profit of farmers.
Constraints-
• Meeting demand.
• Respect the available capacity at production.
• Respect the available capacity at supply.
• Respect the available capacity at distribution.
There are some rules to be followed for attaining fruition in supply chain design
optimization:
• Objectives - must be quantified and measurable
• Models - must faithfully represent required logistics processes
• Variability - must be explicitly considered
• Data - must be accurate, timely, and comprehensive
• Integration - must support fully automated data transfer
• Delivery - must provide results in a form that facilitates execution,
management and control
• People - must have the domain and technology expertise required to
support the models, data, and optimization engines
• Process - must support optimization and have the ability to
continuously improve
Proposed model for Indian Agri-food Supply Chain Network Project Samridh
Bharat”
Features of the proposed model

• No commission agents involved. Cost effective.
• Complete supply demand management with software support.
• Every farmer member are the shareholders.
• Less handling so less wastages.
• Proper food grading according to food safety measures.
• Retail counters at village and city for BPL card holders and NGOs.
• Proper financial and technical support to farmers.
• Proper waste management system for entire food wastages.
• Proper warehousing and inventory management.
Feature and benefits associated with the Proposed model Notes

The salient features of the proposed model are:
• Transportation facilities for farmers.
• Crop Insurance facilities for farmers.
• Education and training.
• Medical facilities.
• Technical support.
Following are the list of objectives that can be suitably evaluated and attained
by effectively applying the industrial engineering and management concepts in
the domain of Agri-food supply chains:
• Efficient Agri-food supply chain network design.
• Effective planning of food distribution system.
• Handling logistics issues.
• Development of performance measurement system for Agri-food
supply chain.
• Integration of IT support for developing effective planning strategy.
• Quality control along the chain.
• Design of distribution networks.
• Marketing agent selection.
• Food Supplier selection.
• Warehouse management.
• Vehicle routing along the chain.
• Warehouse location problem.
• Production system design.
• Effective supply chain Cost accounting using ABC including time
constraint.
• Optimization of production system.
• Logistic network design and planning.
• Designing cold storage infrastructure.
• Enhanced packaging and grading techniques.
• Cost benefits analysis using RFID technique for Indian agri-food supply
chain network.
• Simulation tools for real time modeling.
• Design of effective management information system and decision
support system.
• Effective post-harvest management by local warehousing.
There is a vast area for research to be carried out with reference to Indian Notes
scenario. Various multidisciplinary approaches can be applied to a common
problem for obtaining sustainable results.
Role of Supermarkets in the Supply Chain Management

• A supermarket is a self-service store that is divided into sections and
offers a broad selection of food, drinks, and home items. This type of
shop is larger and has a greater selection than older grocery stores.
Fresh meat, fresh fruit, dairy, baked goods, and other items are
commonly found at supermarkets.
• Canned and packaged foods, as well as numerous non-food items such
as cookware, home cleansers, pharmaceutical products, and pet
supplies, have their own shelf space.
• Supermarkets first appeared in the United States during the Great
Depression of the 1930s and in 1966 ‘Super Bazar’ appeared in Delhi as
‘India’s first supermarket’. The absence of salespeople is the most
distinguishing aspect of a supermarket.
• India is a major producer of vegetables, fresh fruits, and a variety of
other foods. Because of their perishability, seasonality, and bulkiness,
marketing fruits and vegetables is more difficult than marketing many
industrial items.
1. Better transportation
• Fruits, vegetables, and other perishable foods need quick delivery in
order to maintain their freshness. Supermarkets provide such quick
transit options. In comparison to traditional ways, supermarket chains
move their merchandise more quickly. They begin by transporting fresh
food to a packing business, where the fruits and vegetables are
processed before being packaged. Most of the time, the same shipping
boxes that the fruits and vegetables are shipped in may also be used to
display them in stores as well.
2. A wide range of items

• The broad variety approach is a merchandising technique that draws
people into the store by offering a diverse choice of products.
Occasionally, certain items (usually staple commodities like bread, milk,
and sugar) are marketed as loss leaders in order to entice customers to
their store. Supermarkets stock a wide range of goods. This implies that
customers have a wider range of products to choose from.
3. Availability at all times Notes

• There are several supermarkets, which are open 24 hours a day, seven
days a week. In such a setup, individuals may go to stores anytime they
need something. Supermarkets, in contrast to traditional systems, stock
merchandise all year, including during off-seasons. Markets for storage
products emerged as a result of this.
4. Makes shopping easier

• As supermarkets provide a large number of products in one location, it
is easier to keep track of things even during busy periods. It will be able
to lower costs, make shopping easier, and increase shelf availability by
selling fewer items.
5. Imported items are available

• The Internet plays a significant role in the lives of today’s people;
individuals can see new items on the Internet and want to acquire them.
Since supermarkets have a lot of new items that we can’t be able to
access all of them from the small shops. Besides these, imported items
are also available in the supermarkets.
How Supermarkets eliminate intermediaries:
1. Dealing directly with producers

• Supply chain management (SCM) in agribusiness refers to the
coordination of interactions between enterprises responsible for the
efficient production and distribution of products from the farm to the
customer, in order to fulfill consumers’ needs in terms of quantity,
quality, and price. Farmers are no longer reliant on middlemen to
purchase their food and deliver it to end-users. The supermarket
system is set up in such a manner that farmers may deliver their goods
directly to the chains and even obtain better rates than they would get
from the traditional way of selling chains. Supermarkets use wholesale
grocers to assist them in goods distribution to maintain uniformity and
simplicity of operations. Wholesale grocers buy items from
manufacturers and then distribute them to grocery stores so that
customers may get their hands on them.
2. Transportation costs are reduced Notes

• Middlemen are involved in a variety of variables, including
transportation. Goods must travel a great distance to reach their
destination and maybe be rejected owing to damage caused by non-
scientific motions. Farmers will no longer have to worry about
transportation thanks to grocery chains. Supermarkets buy directly
from farmers in the vicinity of metropolitan regions. To receive grains,
pulses, fresh fruits, and vegetables from farmers living outside of
metropolitan areas, supermarkets frequently partner with
“aggregators” (such as farmers’ cooperatives and commercial logistical
businesses). As a result, the farmers not only get more pricing than
Mandi but also save money on shipping and unloading.
3. No longer used of the Agricultural Mandis

• Agricultural mandis are sites where there are a lot of intermediaries.
Farmers are duped into selling at a cheaper price, while merchants
benefit handsomely. Improper weighing, needless deductions,
excessive commissions, and delayed payments are all ways in which
farmers are being abused.
• In traditional marketplaces, these agents and auctioneers buy goods
from farmers and sell them to wholesalers, who then sell them to
retailers, who finally sell them to consumers. Supermarkets contribute
to the removal of intermediaries agents and auctioneers in this
way. Because supermarkets buy directly from farmers and sell straight
to customers, they remove the whole intermediary supply chain.
Self-centered avarice on the part of individuals in positions of control, like with

so many other technical and societal developments, generates issues. Those
who own and manage supermarkets must assume responsibility for the entire
purpose, social and environmental, in order for the supermarket to be helpful
to society. As a corollary, we may conclude that supermarkets have been a
benefit to most manufacturers. This structure decreases the number of
intermediaries, and it benefits both producers and buyers. Higher efficiency
rates, quality control, improved customer relationships and service, a faster
production cycle, lower production costs, and an overall increase in a country’s
financial performance are all benefits of an effective supply chain system.
ECONOMICS OF ANIMAL REARING Notes
• Ever since the beginning of civilization, humans have depended on

animals for many requirements, such as that of food (milk, meat and
egg), clothing (hide or wool), labour (pulling, carrying load) and security
etc. The development of desirable qualities in all such animal species,
through creating better breeds, has been an important human
achievement. For this, humans have consistently tried to improve the
breeds of domesticated animals to make them more useful for them.
• The branch of science, which deals with the study of various breeds of
domesticated animals and their management for obtaining better
products and services from them is known as Animal Husbandry. The
term husbandry derives from the word “husband”, which means ‘one
who takes care’. When it incorporates the study of proper utilization of
economically important domestic animals, it is called Livestock
Management.
Different Categories of Animals

• Wild: Those that breed better where they are free than they do when
they are captivated. They have no common use for humans. Example
Lion, Tiger, Rhinoceros, Deer etc.
• Tamed: Those, which are caught from the wild and trained to be useful
to humans in some way. Elephant, Chimpanzee, Gorilla, Yak etc.
• Domesticated: Those that are of use at home and are easily bred and
looked after by humans. Common domesticated animals are dog, horse,
cow, sheep, buffalo, fowl etc.
Role of Livestock in Indian Economy

• Output functions such as source of edible (milk, meat, egg) and non-
edible (wool, leather, hides) products.
• Input functions such as providing draught power (bulls/oxen), dung,
urine etc. in crop production.
• Economic functions by providing steady income - being the source of
milk, meat and eggs almost round the year.
• Risk Coverage in case of crop failures or other disasters and are
considered as 'Banks on hooves'.
• More equitably distributed compared to land, thus has more potential
for increasing farmers’ income. Rapid growth of the livestock sector can
be even more egalitarian and inclusive than growth of the crop sector
because those engaged in it are mainly small holders and the landless.
Present Status of Animal Rearing in India Notes

• According to NSSO 68th round survey, 16.44 million people are engaged
in the activities of farming of animals, mixed farming, fishing and
aquaculture.
• It contributes around 4% of GDP and 25% of Agricultural GDP.
• India has one of the largest cattle-population in the world.
Production Figures:
• Milk Production: India is the largest producer of milk in the world with
209.96 million tonnes in 2021-22, and per capita availability of 427
g/day.
• Egg Production: 122.1 billion, with per capita availability of 91
eggs/annum in 2021-22
• Wool Production: 36.93 million kg in 2020-21
• Meat Production: 8.8 million tonnes in 2020-21
• Fisheries Production: India is the second largest producer of Fish
(marine + fresh water) and also, the second largest producer of Fresh
Water Fish. About 108 lakh tonnes of Marine and 17 lakh tonnes of
inland fisheries produced in 2020-21. Due its large coastline, India has
high potential for fisheries.
• India is first in total buffalo population (56.7%) in the world, second in
cattle population, second in fish production, second in goat and third in
sheep population in the world.
Challenges faced by Animal Husbandry Sector

• Lack of access to organized markets and meager profits distract
farmers from investing into improved technologies and quality inputs.
Informal market intermediaries often exploit the producers.
• Shrinking and degrading pastures coupled with limitations of fodder,
lack of sufficient veterinary care and apathy to assisted reproductive
technologies have been the major constraints in reaching the full
potential of animal husbandry e.g., potential of raising Pashmina goats’
viz. Changthangi in Ladakh and Chegu in Himachal Pradesh remains
under exploited due to above reasons.
• Livestock extension services are almost absent. The extension format,
methodology and set-up established for agriculture has failed to cater
to the needs of the livestock sector.
• Consequently, only 5.1% of the farm households were able to access
any information on animal husbandry against 40.4% for crop farming.
The only centrally sponsored scheme on “Livestock extension and
delivery services” with a budgetary outlay of Rs. 15.00 crore remained Notes
non-operational.
• Sufficient facility / setup for disease diagnosis, reporting,
epidemiology, surveillance and forecasting are not on board. Several
diagnostic kits required for disease surveillance and monitoring are
imported at a huge cost. The limited diagnostics available in the country
are produced by few laboratories and are not of desired quality.
• Testing of milk for safety and quality parameters at the collection
centers is almost non-existent.
• Lack of proper anaerobic waste treatment and dairy by-product
utilization are the other concerns. Due to quality concerns of milk, value
addition and export potential has not been fully exploited.
• India has huge diversity of animals, which are adaptable to harsh
climate, limited nutrition, and resistance to diseases and stress.
Populations of most of these breeds have alarmingly gone down due to
comparative preferences for highly productive exotic breeds. This calls
for an immediate action for systematic conservation, genetic
improvement and sustainable utilization of indigenous livestock breeds.
• There is also a huge demand of Indian ethnic meat products in the
international market.
• However, lack of international processing standards is the hindrance.
Unfortunately,
• schemes on modernization of slaughterhouses and by-product
utilization have not been effectively implemented.
• Bulk of the investment for livestock development comes from the state
governments. The central government contributes about 10% to the
total investment. There is hardly any private sector investment in
animal husbandry
• Microbial contamination, antibiotic residues and adulteration in milk,
meat and animal feed is rampant. Quality control for veterinary drugs
and vaccines is almost non-existent.
• There is a need to establish food testing laboratories duly accredited by
the Food Safety and Standards Authority of India (FSSAI) to check
adulteration.
20th Livestock Census Notes

• The provisional data of the 20th Livestock Census released by the
Department of Animal Husbandry and Dairying showed that the
livestock population increased by 4.6 per cent, from 512.06 million in
2012. The total number for livestock was pegged at around 536 million.
It is conducted periodically since 1919-20.
• The census shows a further decline in the indigenous cattle population.
It also shows that the cow belt of the country has shifted eastwards with
West Bengal emerging as a state with the largest cattle population,
leaving behind Uttar Pradesh.
• For the latest round of census, more than 80,000 personnel were in the
field collecting data from more than 27 crore households and non-
households using tablets. According to the official statement, this was
a unique attempt to digitise household level data transmitted directly
from the field.
• Released by: Ministry of Fisheries, Animal Husbandry and Dairying.
What is the livestock census?

• Under the livestock census, various species of animals possessed by
households, household enterprises or non-household enterprises and
institutions are counted at site — both in rural and urban areas.
• In other words, it covers all domesticated animals in a given period of
time. India has been conducting livestock censuses periodically since
1919-20. This is the 20th one, started in October 2018. The last livestock
census was conducted in 2012.
Key results and changes since the last census

• The population of cows in the country has risen by 18 per cent in the
last seven years, while that of oxen dipped by 30 per cent.
• A spectacular 16.8 per cent increase in the poultry population in the
country to 851.81 million, mainly on account of a 46 per cent rise in
backyard poultry birds, whose numbers have gone up to 317 million.
Assam had registered the largest (71.63%) growth in poultry
population.
• The number of female cattle is 145.12 million, which is 18 per cent over
the 122.98 million in 2012. The number of male cattle, on the other
hand, dropped to 47.4 million as against 67.92 million in 2012.
Significantly the male to female cattle ratio in the 2019 survey dropped
to 1:3 from 1:1.8 in the 2012 livestock survey.
• There is a 6 per cent decline in the total number of indigenous cattle
over the previous census. On the contrary, the population of total
exotic/crossbred cattle has increased by 26.9 per cent in 2019 as Notes

compared to previous census.
• Due to continuous fall in productivity, indigenous breeds of cattle have
become liabilities for farmers, forcing them to desert the unproductive
cows. Farmers find other animals such as buffaloes, goats and sheep
much more productive.
• Unlike cows, if these animals become unproductive, they can be sold
and slaughtered for further processing.
• Experts believe this could have long term health and environmental
impacts because the milk of indigenous breed has higher nutritional
value than that of crossbreeds.
• Moreover, there is a danger of losing these indigenous breeds, which
have been developed and sustained by generations from time
immemorial.
• As compared to the previous census, the percentage of sheep and goats
has increased whereas the percentage of cattle, buffaloes and pigs has
marginally declined.
State Report
• Uttar Pradesh has the highest number of livestock of 67.8 million (68.7
million in 2012)
• Rajasthan: 56.8 million (57.7 million)
• Madhya Pradesh: 40.6 million (36.3 million)
• West Bengal: 37.4 million (30.3 million)
Significance of livestock rearing

• The livestock species play very important economic, social and cultural
roles or functions for rural households once they contribute to improve
income and wellbeing of the farm family. Livestock has an important
contribution for food supply of rural and urban areas and contributes
to the family nutrition, supplying animal protein.
• Cry of Distress: The NSSO Situation Assessment Survey of Agricultural
Households (2013) shows that 52% of farming households are indebted,
with rates as high as 89-92% in some States. The distress is mainly due
to lack of compensation during drought and disasters, the failures of the
crop insurance scheme, and the deficit due to prices falling below the
announced Minimum Support Prices. Diversification of sources of
income for farmers is one of the few suggested solutions. Here,
livestock plays an important role for a distress farmer.
• Labour: A distress farmer cannot afford mechanised farming. For him Notes
cattle provide the service of labour. They help in very crude form of
mechanised farming for small and marginal farmers.
• Reliable source of income: Unlike farm crops, livestock do not easily
suffer from monsoon failure or such other natural calamity. They
continue to provide milk, eggs, etc. in almost all-weather conditions.
Every part of livestock carries economic importance such as leather,
wool, meat, etc.
• Reduces input cost: Dung and other remnants of livestock act as green
manure, a substitute to fertilisers. They also help in weed control
without using chemicals or others costly and hazardous methods.
• An asset: Livestock are important asset for a distress farmer which can
be encashed at any moment and may help him to come out of debt trap.
• Nutritional security: For a distressed farmer’s family, food provided by
livestock is the only source of nutrition required for survival.
However, we face issues like:

• Poor Quality breeds
• Shrinking pasteur land
• Low productivity of dairy- which could be improved by using scientific
method
• There is a huge deficit of good quality fodder
• Spread of disease among the cattle
• There is an excessive number of unproductive animals which compete
with productive dairy animals in the utilisation of available feeds and
fodder.
• Late maturity, in most of the Indian cattle breeds, is a common problem.
The calving interval is on the increase resulting in a reduction in
efficiency of animal performance.
• Veterinary health care centres are located in far off places. The ratio
between cattle population and veterinary institution is wider, resulting
in inadequate health services to animals. (Foot and Mouth disease)
• Many cattle owners do not provide proper shelter to their cattles
leaving them exposed to extreme climatic conditions.
• Unsanitary conditions of cattle shed and milking yards, leads to mastitis
conditions
• Lack of proper farmer-industry connectivity
• A low number of APEDA-approved abattoir
• High export duty on raw salted hides
• Lack of R&D in the sector
Way forward Notes

• A national breeding policy is needed to upgrade the best performing
indigenous breeds.
• Buffalo breeding ought to be given more attention, while poultry
breeding should be focused on conservation.
• State governments should be encouraged to participate in national
breeding policy implementation. Geographical information system-
based analysis must be utilised to map production systems.
• Animal health care should become a priority, with greater investment
in preventive health care.
• Private investment must also be encouraged. The government needs to
create better incentive structures for investment in livestock.
• State governments should sponsor research and assessment of the
market, along with highlighting investment potential.
Government Initiatives:
1. National Livestock Mission (NLM)
2. Livestock Health and Disease Control Schemes
3. National Dairy Plan
4. National Program for Bovine Breeding and Dairy Development
5. Establishment of National Fisheries Development Board
6. In Budget speech 2015-16, government came up with schemes for
Indigenous Breed and Blue Revolution
7. In 2017-18 budget speech, government has introduced Dairy
Processing and Infrastructure Development Fund
8. In 2017-18 budget, government has extended the facility of Kisan Credit
Card to farmers engaged in fisheries, aquaculture and animal
husbandry. A dedicated fund of Rs. 10,000 crores was allocated to
develop the animal husbandry sector.
9. In 2021-22 budget, government allocated Rs. 6407 crores for fisheries,
animal husbandry and dairying.
National Livestock Mission

• The National Livestock Mission (NLM) has commenced from 2014-15.
• The Mission is designed to cover all the activities required to ensure
quantitative and qualitative improvement in livestock production
systems and capacity building of all stakeholders.
• The Mission covers everything germane to improvement of livestock
productivity and support projects and initiatives required for that
purpose subject.
• It is formulated with the objective of sustainable development of Notes

livestock sector, focusing on improving availability of quality feed and
fodder.
• NLM has four sub-missions as follows:
o The Sub-Mission on Fodder and Feed Development will address
the problems of scarcity of animal feed resources, in order to
give a push to the livestock sector making it a competitive
enterprise for India, and also to harness its export potential. The
major objective is to reduce the deficit to nil.
o Under Sub-Mission on Livestock Development, there are
provisions for productivity enhancement, entrepreneurship
development and employment generation (bankable projects),
strengthening of infrastructure of state farms with respect to
modernization, automation and biosecurity, conservation of
threatened breeds, minor livestock development, rural
slaughter houses, fallen animals and livestock insurance.
o Sub-Mission on Pig Development in North-Eastern Region:
There has been persistent demand from the North Eastern
States seeking support for all round development of piggery in
the region. For the first time, under NLM a Sub-Mission on Pig
Development in North-Eastern Region is provided wherein
Government of India would support the State Piggery Farms,
and importation of germplasm so that eventually the masses get
the benefit as it is linked to livelihood and contributes in
providing protein-rich food in 8 States of the NER.
o Sub-Mission on Skill Development, Technology Transfer and
Extension: The extension machinery at field level for livestock
activities is very weak. As a result, farmers are not able to adopt
the technologies developed by research institutions. The
emergence of new technologies and practices require linkages
between stakeholders and this submission will enable a wider
outreach to the farmers. All the States, including NER States may
avail the benefits of the multiple components and the flexibility
of choosing them under NLM for a sustainable livestock
development.
National Mission on Bovine Productivity (NMBP) Notes

• The mission has been initiated in November 2016 with an allocation of
Rs. 825 crores (575.80 crore as Central Share and 249.20 crore as State
Share) over a period of three years and implementation of spill over
activities of the project beyond the project period.
• It is implemented as a part of Rashtriya Gokul Mission under umbrella
scheme White Revolution-Rashtriya Pashudhan Vikas Yojna.
• The objective is to enhance milk production and productivity of bovine
population, increase trade of livestock and its products, e-market for
bovine germplasm and to double farmers’ income by 2022.
• It has 4 components:
o Pashu Sanjivni: an animal wellness program with provision of
Nakul Swasthya Patra (animal health card) along with unique ID
to animals and uploading data on National Data Depository.
o Advanced breeding technology: IVF/MOET (In-Vitro
fertilisation/Multiple-ovulation embryo transplant) and sex
sorted semen technique to improve availability of disease free
high genetic merit female bovines.
o e-Pashuhaat: a website portal launched on birthday of V. Kurien
on 26 Nov 2016 to connect the breeders and farmers for sale
and purchase of germplasm.
o National Bovine Genomic Centre for indigenous breeds (NBGC-
IB)
National Program for Bovine Breeding and Dairy Development (NPBB&DD)

• The program has been initiated in February 2014 by merging four
ongoing schemes of the Department of Animal Husbandry, Dairying and
Fisheries in the dairy sector:
o National Project for Cattle and Buffalo Breeding (NPCBB)
o Intensive Dairy Development Programme (IDDP)
o Strengthening Infrastructure for Quality & Clean Milk
Production (SIQ & CMP); and
o Assistance to Cooperatives (A to C)
• The aim is to integrate milk production and dairying activities in a
scientific and holistic manner, so as to attain higher levels of milk
production and productivity, to meet the increasing demand for milk in
the country.
• The Scheme has two components
o National Programme for Bovine Breeding (NPBB)
o National Programme for Dairy Development (NPDD)
• NPBB focuses on to ensure quality Artificial Insemination services at Notes

farmers doorstep through MAITRI (Multipurpose AI Technician in Rural
India) and to conserve, develop and proliferate selected indigenous
bovine breeds of high socio-economic importance.
• Rashtriya Gokul Mission comes within it.
• NPDD will focus on creating infrastructure related to production,
procurement, processing and marketing by milk unions/federations and
also extension activities including training of farmers.
• Under this scheme, there is provision for rehabilitation assistance to
improve the condition of sick milk cooperatives by providing a central
grant up to 50 % of the cost of the rehabilitation project with a
maximum financial ceiling of Rs.5 crore.
Rashtriya Gokul Mission

• Rashtriya Gokul Mission has been initiated under National Programme
for Bovine Breeding (NPBB) in December 2014.
• It is being implemented with the objectives of:
o development and conservation of indigenous breed
o breed improvement programme or indigenous cattle breeds to
improve their genetic
o makeup and increase the stock
o enhancement of milk production and productivity
o upgradation of nondescript cattle using elite indigenous breeds like
Gir, Sahiwal, Rathi, Deoni, Red Sindhi
o distribution of disease free high genetic merit bulls for natural
service.
• The mission includes establishment of:
o Gokul Gram (Integrated Indigenous Cattle Centres)
o Gopalan Sangh (Breeder’s Societies)
o distribution of disease free high genetic merit bulls for natural
service
o provides incentive to farmers maintaining elite animals of
indigenous breed
o heifer rearing programme
o award to Farmers (Gopal Ratna) and Breeders’ Societies
(Kamadhenu).
o National Kamdhenu Breeding Centres for development,
conservation and preservation of indigenous breeds are being
established one in north and one in south India, as a Centre of
Excellence, to develop and conserve Indigenous Breeds. Besides
being a repository of indigenous germplasm, it will also be a source Notes

of certified germplasm in the Country.
Pink Revolution
• Pink Revolution is a term used to denote the technological revolutions
in the meat and poultry processing sector.
• In 2014, India surpassed Brazil and Australia to become the largest
bovine meat exporting country in the world.
• Bovine meat became India’s top agricultural export item ($4781m),
ahead of Basmati Rice in 2014-15.
• The largest importer of Indian meat are primarily the countries in the
Middle-East and South East Asia.
• The broiler sector (poultry meat) has also shown more than 8% growth.
• India is home to the largest population of cattle and buffalo in the world
(58% of world’s buffalo population).
• About 10% of the rural labour force is involved in livestock rearing
occupation, which constitutes 26% of the total agricultural value added.
UP, Andhra Pradesh and Maharashtra are the major states supplying
buffalo meat (carabeef).
• Cost of production of meat is much lower in India. Also, India is
geographically well placed in terms of export to the consuming nations.
• With a shift towards protein rich diet India can gain from its meat
industries.
Challenges faced by Indian Meat Sector

• Largely Unorganized (90% unorganized)
• Lack of adequate meat hygiene
• Inadequate infrastructure like outdated abattoirs (slaughter houses),
poor cold storage facilities etc.
• Animals are not specifically bred for meat.
• Poor quality of meat because spent animals (old age farm animals) are
generally used for meat production.
• Lower domestic demand, low per capita meat consumption in India (5.2
Kg/year vs 39.8 kg global average)
• Lack of awareness about food safety norms and packaging standards.
Poultry Sector Notes

• Poultry is one of the fastest growing sub sectors of animal husbandry.
• Policies for poultry development has been included in the National
Livestock Mission.
• NLM includes modernisation and development of breeding
infrastructure, which includes training and feed analysis as well.
• It has also been aligned with National skill development framework.
• Technological interventions in the areas of biosecurity, automation and
modernisation of infrastructure are envisioned in the Central/State
Government poultry farms.
• NLM includes Rural Backyard Poultry Development as a component to
provide supplementary income and nutritional support to the BPL
families.
Fisheries
• Fisheries is a sunrise sector with varied resources and potential,
engaging over 14.50 million people at the primary level and many more
along the value chain. Transformation of the fisheries sector from
traditional to commercial scale has led to an increase in fish production
from 7.5 lakh tonnes in 1950-51 to 108.95 lakh tonnes during 2020-21,
while the export earnings from the sector registered at around US$ 6.68
billion in 2020-21.
• Constituting about 6.31% of the global fish production and 5% of global
trade, India has attained the second largest fish producing and second
largest aquaculture nation in the world.
• Besides being a source of protein, income and livelihood to poor
fishermen, the fishery sector is also responsible for engaging rural
population in ancillary activities like marketing, retailing, transportation
etc.
• While one of the most significant characteristics of Indian fishery is its
small-scale nature, Inland fishery (with respect to marine), and through
aquaculture (with respect to capture fisheries) has become the major
norm of Indian Fishery sector.
Challenges Faced by the Fisheries Sector Notes

• Inland fish production has declined due to proliferation of water control
structure, loss of habitat and indiscriminate fishing.
• Marine fishing has declined due to depleting resources, energy crisis
and resultant high cost of fishing.
• Low investment in the sector coupled with limited capabilities of
fishermen and fish farmers.
• Inadequate supply of seed, feed and genetic resources.
• Slow development and adoption of new and improved farming
technologies.
• India is yet to realise the potential of deep-sea fishing.
• Inadequate cold chain, market, trade and safety.
• Environmental integrity and a vicious circle of low productivity.
• The sector is also experiencing loss of biodiversity on account of adverse
climate change.
• Security of fishermen especially along the maritime boundaries with Sri
Lanka and Pakistan remains a concern.
• Lack of a reliable database relating to aquatic and fisheries resources.
• Water pollution; unscientific management of aquaculture and
contamination of indigenous germplasm resources.
Blue Revolution– Neel Kranti Mission

• The government of India restructured the central plan scheme under an
umbrella of Blue Revolution: Integrated Development and
Management of Fisheries (Central Sector Scheme).
• Blue Revolution, the Neel Kranti Mission has the vision to achieve
economic prosperity of the country and the fishers and fish farmers as
well as contribute towards food and nutritional security through full
potential utilization of water resources for fisheries development in a
sustainable manner, keeping in view the bio-security and
environmental concerns. It will have multi-dimensional approach to all
activities concerned with development of the fisheries sector as
modern world class industry in India. It will focus on tapping the full
production potential and enhance productivity substantially from
aquaculture and fisheries resources, both inland and marine.
Substantially increasing the share of Indian fisheries in the export area
would be a key goal. It will ensure doubling the income of the fishers
and fish farmers with inclusive participation of the socio-economically
weaker sections and ensure sustainability with environment and
biosecurity.
Vision Notes
• “Creating an enabling environment for integrated development of the
full potential of fisheries of the country, alongwith substantially
improvement in the income status of fishers and fish farmers keeping
in view the sustainability, bio-security and environmental concerns.”
Mission
• Formulation of a Neel Kranti Mission Plan (Blue Revolution Mission
Plan) for tapping the full potential of the inland and marine culture
fisheries of the country by developing it as a professional modern world
class industry.
• Ensure doubling of income of fishers and fish farmers of the country.
• Ensure sustainability of, bio-security and address environmental
concerns for enabling sustainability of the fishing industry.
Objectives
• To fully tap the total fish potential of the country both in the inland and
the marine sector and triple the production by 2020.
• To transform the fisheries sector as a modern industry with special
focus on new technologies and processes.
• To double the income of the fishers and fish farmers with special focus
on increasing productivity and better marketing postharvest
infrastructure including e-commerce and other technologies and global
best innovations.
• To ensure inclusive participation of the fishers and fish farmers in the
income enhancement.
• To triple the export earnings by 2020 with focus on benefits flow to the
fishers and fish farmers including through institutional mechanisms in
the cooperative, producer companies and other structures.
• To enhance food and nutritional security of the country.
Strategy – Central Sector Assistance Schemes

• The Ministry of Agriculture and Farmers Welfare, Department of Animal
Husbandry, Dairying & Fisheries has accordingly restructured the
scheme by merging all the ongoing schemes under an umbrella of Blue
Revolution. The restructured scheme provides focused development
and management of fisheries, covering inland fisheries, aquaculture,
marine fisheries including deep sea fishing, mariculture and all activities
undertaken by the National Fisheries Development Board (NFDB).
• The restructured Plan Scheme on Blue Revolution: Integrated Notes

Development and Management of Fisheries” has been approved at a
total central outlay of Rs. 3000 crores for implementation during a
period of five years (2015-16 to 2019-20) with the following
components:
• National Fisheries Development Board and its activities: increasing fish
production, enhance its exports, apply modern tools and techniques,
creation of employment etc.
• Development of Inland Fisheries and Aqua Culture: Construction and
renovation of ponds, establishing fish hatcheries, stocking of
fingerlings, training and skill development etc.
• Development of marine fisheries, infrastructure and post-harvest
operations:
• Motorisation of traditional craft, promotion of mariculture in
the form of sea cages, see weed cultivation, bi-valve cultivation
and pearl culture, infrastructure like ice plants, cold storages
development etc.
Institutional arrangements for Fisheries Sector:

• Strengthening of data base and Geographical Information System of
the fisheries sector:
• assistance to state governments for collection and supply of
fisheries data, development of
• GIS, mapping of water bodies etc.
• Monitoring, control and surveillance (MCS) and other need-based
interventions:
• Biometric ID card to marine fishers
• registration of their vessels
• upgradation of the registration centres into Fisheries
Monitoring Control and Surveillance centres (FMCS)
• National scheme of welfare of fishers: Housing for fishermen, basic
amenities, group accident insurance for active fisherman, Grant in aid
to the National Federation of Fishers Cooperative ltd (FISHCOPFED).
• An Integrated National Fisheries Action Plan 2020 has been developed
to achieve the concept of Blue Revolution.
National Policy on Marine Fishery, 2017 Notes

• National Policy on Marine Fisheries provides guidance for promoting
'Blue Growth Initiative' which focus on ushering 'Blue Revolution'
(NeeliKranti) by sustainable utilization of fisheries wealth from the
marine and other aquatic resources of the country for improving the
lives and livelihoods of fishermen and their families.
• The policy intends to guide the coordination and management of
marine fisheries in the country during the next 10 years.
• It envisions to create a healthy and active marine fishery sector which
can fulfill the necessities of present and future generations.
• The policy states that “private investments will be promoted in deep
sea fishing and processing to fully harness the potential of marine
fishery for inclusive development.
• Sustainable utilisation of the deep sea fisheries resources necessitates
an optimum fleet size of modern fishing vessels capable of undertaking
extended voyages, and wherever required, support of overseas
technology will also be considered for development of the sector”.
• Legislations will be brought to economically empower the producer
cooperatives and the right of first sale option to be given to the
fisherman.
Operation Flood
• It is the world's biggest dairy development program, launched in 1970
by National Dairy Development Board (NDDB). It transformed India
from a milk-deficient nation into the world's largest milk producer. India
surpassed USA in 1998, with about 17 percent of global output in 2010–
11. In 30 years it doubled milk available per person, and made dairy
farming India’s one of the largest self-sustainable rural employment
generator.
• It helped dairy farmers direct their own development, placing control
of the resources they create in their own hands.
• A National Milk Grid links milk producers throughout India with
consumers in over 700 towns and cities, reducing seasonal and regional
price variations while ensuring that the producer gets fair market prices
in a transparent manner on a regular basis.
• The bedrock of Operation Flood has been village milk producers'
cooperatives, which procure milk and provide inputs and services,
making modern management and technology available to members.
Operation Flood's objectives included:
o Increase milk production ("a flood of milk")
o Augment rural income Notes

o Reasonable prices for consumers
Success
• In 1955 India’s butter imports were 500 tons per year, today India's
cooperatives alone produce more than 12,000 tons of butter.
• India imported 3000 tons of baby food in 1955, today cooperatives
alone produce 38,000 tons of baby food.
• By 1975 all imports of milk and milk products stopped.
• In 1998 the World Bank published a report on the impact of dairy
development in India and looked at its own contribution to this. The
audit revealed that of the Rs 200 crore the World Bank invested in
Operation Flood, the net return on India's rural economy was a massive
Rs 24,000 crore each year over a period of 10 years, which no other
dairy programme has ever matched.
• India has retained its leadership as the world’s largest milk producer for
the last 15 years.
• This has been made possible by Operation Flood — which ushered in
the White Revolution in India.
Criticism
• Operation Flood failed to replicate the success of Amul (Anand Milk
Union Limited) in states other than Gujarat.
• Analysts cited reasons for this failure:
o political interference
o bureaucratic apathy
o lack of a professional approach
o lack of knowledge among the co-operative board and
committee members of how to run co-operatives
Need of a Second White Revolution to Overcome Supply Side & Demand Side
Challenges
Supply-Side Challenges:
• Eighty per cent of Indian cattle is owned by farmers with a herd size of
up to four animals. But a number of factors impact the sustenance of
these traditional small farms, such as:
o the subsidiary nature of dairying as an activity
o stagnant yields
o rising feed/fodder costs and
o a shift in rural areas towards other vocations Notes
Demand-Side Challenges:
• India is slated to witness a boom in dairy demand of over 6 per cent
annually, due to increasing population and increase in income.
• However, the average annual growth in supply is only about 4%. The
demand-supply interplay effect is evident in steadily rising milk prices
in the recent past. We clearly need a Second White Revolution.
Way Forward
• Large scale dairy farms: Large scale cooperatives and corporates can
establish integrated dairy farms, with automated milking, feeding,
processing, integrated feed production and in-house breed
improvement. They can sell their produce to other dairy plants or can
do further value addition.
• Hub and Spoke Model: The main farm (hub), owned by an anchor has
all the integrated facilities for milking, feed production and milk
processing with a cattle count of over 500 cows. The
connected/satellite farms (spokes), with 50 to 200 cattle each, have
basic infrastructure for milking and cattle management and are owned
by progressive dairy farmers in close proximity to the main farm. The
anchor provides technical support (veterinary care, feed
management, and training) to the satellite farms. This model will be
socially inclusive.
• Progressive dairy farmer: This model envisages investment in farm
infrastructure by an anchor. Cow stalls are leased out on nominal
charges to farmers, who are responsible for housing of cows and
managing them under guidance of the anchor. The automation level of
the farms can depend on the farm size. The milk would be purchased
under a buy-back arrangement by the anchor. This model enables the
smallest dairy farmers to avail the benefits of technology, scale and
systems. This model includes the concept of building hostels for cows
and to establish mid-sized dairy farms with 200-300 cattle.
• Community Model: Community ownership and management of
common infrastructure for housing, breeding, feeding and milking
under a cooperative/producer company model shall be applicable here.
A number of such farms within a restricted geographical periphery can
avail of technical support services on a pooling basis. Farmers are not
restricted to sell their milk to a specific entity. Milking machines,
equipment, bulk coolers and milk storage facilities are owned by the
community.
Focus Notes
Animal Husbandry
Benefits Challenges
• The burdening and aging animals • Land is only common resource
have been creating excess burden acting as the platform for the
on the natural resources. So removal development of human and
of these animals will help in animals. Ever increasing
mitigating the fodder crisis in competition between human
livestock and animal for food is a critical
• The animal keepers should be issued challenge in animal rearing.
licences, so that, the population of • The improper and unscientific
animals can be tracked and policies management of resource like
can be formulated according to that. water in animal husbandry
• Rejuvenation of overgrazed makes the increased usage of
postures, provision of micro virtual water in the export
irrigation with solar energy market.
management will surely boost up • The percolation of extension
fodder production. services regarding animal
• Easy and hassle free credit facilities husbandry is less and negligent
must be made available to farmers. • The low production potential of
Animals itself may be considered as the indigenous varieties of
an asset to sanction the smooth loon animals is also an added issue.
to farmers, provided that animals • Devastating pastures, increased
should be insured with an legal climatic changes, decrease in
agency. monsoon rains also makes the
• Indiscriminate and unscientific animal husbandry vulnerable
breeding practices must be stopped. • Improper awareness about the
As the cross bred population are vaccination and lack of research
prone to diseases, Ceiling must be in the diseases occurring to
there to check the population. animals is also another factor.
• The licensee animal rearer must be • Lack of infrastructure facilities at
granted an animal ration card. The rural areas like veterinary clinics,
concentrated feed must be available breeding centres.
to them at subsidised rate. • The absence of credit facilities
• Recently GOI launched “Nakul and insurance coverage
Swastiya Patra” / animal Health schemes makes the farmers to
cards. To avoid complications this show less interest towards
must be maintained by every animal rearing.
licensed animal owner. • The proper quality checking and
• Improved skills and latest standardisation of animal Notes

technological interventions for products is absent.
animal management should reach
the farmers door step easily.
• The methods for organic livestock
farming must be devised and the
animal husbandry industry should
move on that scale for future
generation to be healthy and
disease free.
• The special economic zone for
animal husbandry with common
facilities must be created for greater
export potential.
Dairy Farming
Challenges Improvements needed
• Quality a big concern – More than • The diary farming must be given
70% of marketable surplus goes equal status with respect to
through informal channel where agriculture. The village level milk
quality is a big concern. Sometimes producing units must be brought
quality is an issue in the formal under the organised sector.
channel as well. Quality of milk or • India should develop a system to
value-added products are a barrier compete with developed countries
to entry to the export market, where every milch animal is tagged
especially the USA and the EU. with a number and every drop of
• Poor governance of cooperatives – milk processed, value added,
Prices decided by cooperatives are marketed and instantly recorded.
not based on fat measurement, • The rigorous safety standards must
which affects farmer’s profitability. be devised and implemented in
In addition, lower prices declared by accordance with global level to
cooperatives, results in low prices of promote exports.
milk paid by all the players in the • The environment under which milk
industry. is produced, collected, transported,
• Non-existent of extension facilities: processed and distributed should be
Lack of adequate breeding and fully conducive and that animal
preventive care services to improve rearing processes must be related to
animal health, along with low access sanitation, which must ensure
to credit and risk-taking ability quality of milk.
makes farmers unable to increase • The organised diary sector will have Notes
their herd size. to progressively and systematically
• Taxation on value added products: planned to increase the coverage so
Taxation on value added products that best quality milk can be
would cause the industry to reduce available at better prices.
the milk prices paid to the dairy • The co-operatives must be
farmers. High rate might also strengthened and expanded. The
increase the consumer prices of need to narture diary entrepreneurs
dairy products substantially. through effective training of rural
youths at village level can be easily
achieved by these co-operatives.
• An organised effort to conserve and
propagate elite germ plasm from
nucleus breeding herds will
facilitate poor formers to rear desi
cattle more economically.
• Application of technology to
produce large scale feed blocks,
feed enzymes and other innovative
feed resources needs to be
deployed for enhancing quality of
milk.
• An authentic, updated database for
disease is required for
identification, onward prevention
and control. Infrastructure of
vaccine and diagnostic, production
units must be increased to address
the need of cattle population.
• The provision of better market
access will result in better and
remunerative prices which will be
helpful in alleviating poverty in rural
poor and most vulnerable families
and promote sustainable livelihood.
• The specific countries for export
must be identified and trade policies
must be signed between those
countries inorder to boost the
exports.
Poultry Farming: Poultry is one of the fastest growing segments of agricultural Notes
sector in India today.
Benefits Challenges
• Government policies relating to • Poor infrastructure for export and
investments in poultry and related not meeting of international food
industries, taxation, import duties, safety standards is hindering the
excise duties are favourable. export of poultry products.
• Fresh, chilled chicken availability in • Competition from international
every form from whole, cut-ups, players on opening up duty free
deboned or processed, egg powder imports, lifting of free trade
are in much increasing in demand. barriers.
• Increase in income generation in the • Increasing propaganda and
rural poor and marginal farmers. demonstrations by organisations
• Consumer awareness and on promoting vegetarianism and
acceptability of eggs and chicken as animal rights.
good and cheap source of protein • Occurrence of diseases like
and healthy food is increasing. salmonella and other diseases in
• Many countries, which are non – poultry meat.
traditional poultry growers, are • Many countries are dumping their
giving incentives to their poultry poultry products i.e exporting
industry thus global demand is eggs of prices lower than
increasing. population cost.
• Better availability of feeds and better • The increase in the price of raw
marketing network also promotes materials like feeds to the poultry
this industry. tends to increase the price of eggs
• Inclusion of eggs in the government and meat which makes the
schemes like mid day meals also market uncompetitive.
promote this industry.
• Concept of organic chicken - as in
India, chicken is traditionally raised in
backyards and is called “Free range
birds” is growing.
Bee keeping: Bee keeping is an agro based activity which is being undertaken by Notes
farmers/landless labours in rural areas as the integrated farming practice.
Beekeeping supplements income generation and nutritional intake of rural
population. At present there are about 30 lakhs bee colonies in India. With
estimated annual production of around 89000 metric tonnes of Honey.
Benefits Challenges
• Bees are excellent pollinating agents. • Lack of awareness,
• According to the scientists, honey bees infrastructure at root level,
can increase the yield by 15-20%. Thus, and national level for bee
by promoting sustainable and keeping industries.
ecofriendly agriculture. • Poor quality control of honey
• Honey bees produces products like and other bee hive products.
Honey, Bee wax, Bee venom, Royal • Absence of institutional
jelly, propdis, Hive products which support like extension service
generates huge income and better guidance, bank loans etc.
employment. • More emphasis on honey than
• Unemployed youths can start this other bee hive products.
business with minimal funds and it • Absence of scientific
serves as diversification of income for management of the bee
other farmers. keeping industry.
• Proper utilisation of natural resources • Mostly illiterate rural and
is done in bee keeping process. tribal people and involved.
• Helps in rural development, poverty • Flowering of plants, nectar
alleviation and promotes small village secretion is influenced by the
industry. climatic conditions.
• Promotes and conserves biodiversity. • Behaviour of honey bees
depend on climatic conditions
and vary from place of place.
• Deforestation, air & water
pollution, indiscriminate
usage of insecticides, mono
culture of cropping pattern
like practices also pose a grave
threat to bee keeping
industry.
Fishery development/Blue Revolution Notes

India and Fishery
• India is the world’s second-largest fish producer with exports worth more
than Rs 47,000 crore. Fisheries are the country’s single-largest agriculture
export, with a growth rate of 6 to 10 per cent in the past five years. Its
significance is underscored by the fact that the growth rate of the farm sector
in the same period is around 2.5 per cent.
• The ‘fisheries and aquaculture sector’ is recognized as the sunshine sector in
Indian agriculture. It stimulates growth of number of subsidiary industries and
is the source of livelihood for a large section of economically backward
population, especially fishermen, of the country. It helps in increasing food
supply, generating adequate employment opportunities and raising
nutritional level. It has a huge export potential and is a big source of foreign
exchange earnings for the country.
• Fishery is basically a state subject and the primary responsibility for its
development mainly rests with the State Governments.
The focus of the Blue Revolution 2.0 is on development and management of
fisheries. This covers inland fisheries, aquaculture, marine fisheries including
deep sea fishing, mariculture and all activities undertaken by the National
Fisheries Development Board.
• The National Fisheries Development Board (NFDB) was established in
2006 as an autonomous organization under the administrative control of
the Department of Fisheries, Ministry of Agriculture and Farmers Welfare,
to enhance fish production and productivity in the country and to
coordinate fishery development in an integrated and holistic manner.
• Now, the Board works under the Ministry of Fisheries, Animal Husbandry
and Dairying.
It aims to achieve economic prosperity of fishers and fish farmers. The same will
be done by developing fisheries in a sustainable manner keeping in view
biosecurity and environmental concerns.
The Program has certain objectives which includes:
• Fully tapping the total fish potential of the country, both in the inland and
the marine sector and triple production by 2020.
• Transforming the fisheries sector as a modern industry with special focus
on new technologies and processes.
• Doubling the income of fishers and fish farmers with special focus on
increasing productivity and better post-harvest marketing infrastructure
including e-commerce and other technologies and global best
innovations.
• Ensuring inclusive participation of fishers and fish farmers in the income
enhancement. Notes
• Tripling export earnings by 2020 with focus on benefits flow to fishers and
fish farmers.
• Enhancing food and nutritional security of the country.
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ILP 2023 –INDIAN AGRICULTURE 3

ILP 2023 –INDIAN AGRICULTURE 3

Previous Years Questions Notes

1. With what purpose is the government of India promoting the concept of

2. What is/are the advantage/advantages of implementing the 'National

3. In India, markets in agricultural products are regulated under the - 2015

ILP 2023 –INDIAN AGRICULTURE 3

Mains PYQs Notes

1. Elaborate the scope and significance of the food processing industry in

ILP 2023 –INDIAN AGRICULTURE 3

FOOD PROCESSING INDUSTRIES Notes

ILP 2023 –INDIAN AGRICULTURE 3

according to the Directorate General of Commercial Intelligence and Notes

• Food processing can be divided into primary and secondary products,

ILP 2023 –INDIAN AGRICULTURE 3

Working Procedure of Food Processing Industries: Notes

Importance of Food Processing Industries (FPI):

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Scope of Food Processing Industries in India:

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business opportunity for designing several food products catering to Notes

Location of Food processing industries (FPI) in India:

Challenges to FPI in India:

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Government’s Initiatives Notes

100% Foreign Direct Investment in Processed Food Businesses

PM Kisan Sampada Yojana

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• PM Kisan SAMPADA Yojana is a comprehensive package which will Notes

The following schemes are implemented under PM Kisan SAMPADA Yojana:

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Creation of Mega Food Parks Notes

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• In pursuance of budget announcement 2021-22, the scope of long-term Notes

PM Formalization of Micro Food processing Enterprises

Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)

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of NITI Aayog under “AatmaNirbhar Bharat Abhiyaan for Enhancing Notes

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Implementation strategy and targets Notes

Administrative and Implementation Mechanisms

Major impact, including employment generation potential

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FRUIT SECTOR Notes

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FOOD AND GRAINS SECTOR Notes

POULTRY & MEAT SECTOR

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FISHERY & MARINE SECTOR Notes

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Food Processing Unit Notes

An Overview on India’s Food Processing Sector

What is the Importance of Food Processing Business?

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A Viable Approach to Setup Food Processing Unit in India

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Mega Food Park Notes

• The Scheme of Mega Food Park aims at providing a mechanism to link

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So far following 22 Mega Food Parks are operational: