Agro & Food Processing - #SectorUpdates
In food processing, India has performed better than many leading countries such as Brazil, the US, and China as of 2021 in terms of growth of the sector. However, more needs to be done as India processes only 30 percent of its total meat production compared to Brazil and the US. In fruits, India processes only 5 percent of its production, compared to Brazil (more than 30 percent) and the US (about 20 percent). Quality inconsistency, fragmented agriculture production, demand-supply mismatch, low penetration of technology, and supply chain issues like the availability of cold storage and warehousing facilities are the major barriers to the growth of the industry. Recognizing this potential and the bottlenecks, the Government is incentivizing food parks for the processing industry with an eye to enhancing the export of processed foods. The Production Linked Incentive Scheme for Food Processing Industries (PLISFPI) with a financial outlay of Rs. 10,900 crore encourages global standard food manufacturing companies in India and supports Indian food brands for export in the international market.