Food Processing In India

 

Context:

  • India being one of the largest producers of fruits and vegetables in the world has huge potential in food processing industry.
  • In this context it is important to know about the Production Linked Incentive Scheme which aims to incentivize incremental sales.

 

Background:

 

  • The government announced the PLI scheme for the food processing sector, with an outlay of ₹10,900 crore.
  • The incentive is linked to local production and sale of products.
  • The scheme was launched to support the creation of global food manufacturing champions commensurate with India’s natural resource endowment and to support Indian brands of food products in international markets.
  • The scheme covers four segments—ready-to-cook or ready-to-eat foods, processed fruits and vegetables, marine products and mozzarella cheese.
  • Approvals have been granted under category 1 of the scheme meant for large entities.
  • Applicants under this category could also undertake branding and marketing activities in overseas markets.
  • The selected applicant will be required to invest in plant and machinery in the first two years, i.e. in 2021-22 and 2022-23.
  • Approvals have been granted under category 1 of the scheme meant for large entities.
  • Applicants under this category could also undertake branding and marketing activities in overseas markets

 

 

Financial Challenges

  • Smart financing alternatives such as peer to peer lending would be helpful through MUDRA bank.
  • Access to working capital has been addressed by the Trade Receivables Discounting System, a platform for facilitating financing/ discounting of trade receivables of MSMEs.

 

 

Way Forward:

 

  • New alternatives are being explored in replacing the staples of rice and wheat in the form of Nutri – Cereals, plant based proteins, health bars, etc.
  • PLIS aims to create an enabling environment for innovation in food processing.

Source: THE HINDU.

 

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