Q. Elaborate the scope and significance of the food processing industry in India. (150 words, 10 Marks)
Why the Question?
UPSC PYQ – CSE Mains – 2022
Keywords of the Question
- Scope and significance
- Food processing industry in India
Directive Word
Elaborate – To give in more detail, provide more information on.
How to approach this Question?
Introduction
- Briefly define the food processing industry.
- Mention its relevance to the Indian economy with a key statistic or fact.
Body
- Scope:
- Availability of raw materials.
- Diverse agro-climatic conditions.
- Market size and consumer base.
- Government initiatives and policies etc.
- Significance:
- Employment generation.
- Value addition and increased farmer income.
- Export potential.
- Contribution to GDP and industrial growth etc.
- Mention some challenges (if asked in 15 marks)
Conclusion
- Summarize the importance of the food processing industry.
- Mention challenges and potential for future growth.
- End with a positive note on its role in economic development.
Note: Please note that the following ‘answers’ are not ‘model answers’ nor are they synopses in the strictest sense. Instead, they are content designed to meet the demands of the question while providing comprehensive coverage of the topic.
Answer Key
Introduction
The food processing industry involves transforming raw agricultural products into consumable food items. It is a crucial sector for the Indian economy, contributing around 10% to the country’s GDP from agriculture and employing millions.
Body
Scope:
- Availability of Raw Materials:
- India is the second-largest producer of fruits and vegetables globally.
- Example: In 2022, India produced 320 million tonnes of horticultural crops.
- Diverse Agro-Climatic Conditions:
- Supports a wide range of crops, enhancing the variety of processed foods.
- Market Size and Consumer Base:
- A large and growing middle class with increasing disposable income.
- Example: The Indian food processing market is expected to reach $535 billion by 2025.
- Government Initiatives and Policies:
- Schemes like Pradhan Mantri Kisan SAMPADA Yojana.
- Example: The scheme aims to create modern infrastructure with efficient supply chain management from farm gate to retail outlet.
Significance:
- Employment Generation:
- Provides direct and indirect employment to millions.
- Example: The sector employs about 1.93 million people.
- Value Addition and Increased Farmer Income:
- Enhances the value of agricultural produce, benefiting farmers.
- Example: Processing of perishable items like fruits and vegetables reduces wastage.
- Export Potential:
- Contributes significantly to India’s export earnings.
- Example: In 2021-22, processed food exports were valued at $43 billion.
- Contribution to GDP and Industrial Growth:
- Plays a vital role in the industrial sector’s growth.
- Example: The sector’s contribution to the GDP is around 8.80%.
- Reduce Wastage of Agricultural Produce:
- Processing helps in reducing post-harvest losses.
- Example: Nearly 30% of fruits and vegetables are wasted due to lack of processing facilities.
- Nutritional Value:
- Enhances the nutritional quality of food products.
- Example: Fortified foods and ready-to-eat meals improve dietary intake.
- Reduced Migration:
- Creates rural employment, reducing the need for migration to urban areas.
- Example: Food processing units in rural areas provide local job opportunities.
- Crop-Diversification:
- Encourages farmers to grow a variety of crops, reducing dependency on a single crop.
- Example: Demand for processed foods leads to cultivation of diverse crops like millets and pulses.
Challenges for Food Processing Sector
- Institutional Gaps
- Lack of Innovation
- Supply Chain infrastructure Gap
- Inadequate focus on quality standards
- Seasonality of operation
- Inadequate link between production & processing
Conclusion
The food processing industry is pivotal for India’s economic development, offering vast employment opportunities and boosting farmer incomes. Despite challenges like inadequate infrastructure and supply chain issues, the sector holds immense potential for future growth, driving the nation’s progress towards a robust economy.
Mind Map
