PLAN SCHEMES FOR FOOD PROCESSING SECTOR

4.1 GENERAL
A strong and dynamic food processing sector plays a significant role in diversification of
agricultural activities, improving value-addition opportunities and creating surplus for export of
agro-food products. This requires policies and plans for improvement of food processing
infrastructure including up-gradation of technology and enforcement of quality standards,
promoting investment in food processing, thus assisting in domestic market and export growth.
Food Processing adds value, enhances shelf-life and reduces wastage. It provides remunerative
prices to the farmers, generates employment opportunities and provides convenience to
consumers. Food Processing has tremendous export potential, enabling the farmer to add value
to his produce both in terms of quantity and quality so that he can meet the requirements and
standards of the market at all stages of value chain, processing and retail, would be critical for
improving his economic sustainability and bargaining capacity. Considerable investments are
required in rural infrastructure and components of the supply chain by way of grading and
packing centers, controlled atmosphere facilities, reefer vans, cold storage for perishable cargo
at port/airport/railway stations, a chain of testing laboratories to meet international quality
standards, etc., which are not likely to come from private sources. Significant public investments
would, therefore, be required to create suitable infrastructural facilities to develop a sustainable
supply chain linking farmers to processing centers and marketsboth domestic and foreign. The
Ministry of Food Processing Industries (MFPI) has been supporting a range of initiatives for the
growth of food processing industry. It is increasingly becoming evident that only a vibrant food
processing sector can lead to increasing farm gate price and thus increase the income levels of
farmers, reduce wastage and increase employment opportunities.
The Ministry of Food Processing Industries implemented during the 10 Plan Scheme, namely:-
(i) Scheme for Infrastructure Development
(ii) Scheme for Technology Upgradation, Establishment and Modernisation of Food Processing
Industries
(iii) Scheme for Backward & Forward Integration
(iv) Scheme for Human Resources Development
(v) Scheme for Quality Assurance, Codex Standard and Research & Development
(vi) Scheme for Strengthening of Institutions.
4.2 THE SCHEMES OF THE MINSITRY OF
FOOD PROCESSING INDUSTRIES
th

(Rs. in Crore)
Year Outlay Expenditure
2004-05 110.01 80.42
2005-06 180.01 115.25
2006-07 200.22 159.78
2007-08 250.00 182.97
2008-09 290.00 223.12
Source: Chief Controller of Accounts, MFPI: Accounts At A Glance
4.2.1 THE PLAN OUTLAY AND EXPENDTURE DURING THE LAST FIVE YEARS ARE AS FOLLOWS