Processed Food Products' Contribution to India's Agricultural Exports Surges to 23.4%
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New Delhi, Dec 27 (NationPress) The proportion of higher value processed food items in India’s agricultural exports has witnessed a remarkable increase from 13.7% in 2014-15 to 23.4% in 2023-24. This growth has contributed to elevated farm incomes and the creation of more job opportunities, according to a recent year-end report published by the Ministry of Food Processing Industries on Friday.
The food processing sector is crucial in enhancing farm income and generating off-farm employment, while also minimizing post-harvest losses through investments in preservation and processing infrastructure.
According to the report from the Annual Survey of Industries (ASI) for 2022-23, the food processing industry stands as one of the largest employment generators in the organized manufacturing sector, accounting for 12.41% of total organized sector employment.
The report emphasizes that the Ministry of Food Processing Industries has implemented various initiatives to bolster the development of the food processing sector across the nation, achieving significant milestones in its schemes throughout 2024.
Since January 2024, a total of 46,643 loans have been approved under the credit-linked subsidy aspect of the Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme (PMFME). The report highlights that Rs 254.87 crore has been allocated as seed capital assistance to 71,714 Self Help Group (SHG) members.
The Central Government has allocated a budget of Rs 3,290 crore to the Ministry for the advancement of the Food Processing Sector in the fiscal year 2024-25, representing a growth of approximately 30.19% from the revised estimate of Rs 2,527.06 crore in 2023-24.
The Gross Value Added (GVA) in the food processing sector has escalated from Rs 1.34 lakh crore in 2014-15 to Rs 1.92 lakh crore in 2022-23. Additionally, the sector has attracted a Foreign Direct Investment (FDI) equity inflow of $6.793 billion from April 2014 to March 2024.
Among various supportive schemes, the Pradhan Mantri Kisan Sampada Yojana (PMKSY) was approved with an allocation of Rs 6,000 crore for the period from 2016-20 (extended to 2020-21) and is currently continued with an additional allocation of Rs 5,520 crore.
Since January 2024, 143 projects have been sanctioned under different components of PMKSY, with 69 projects now operational, resulting in a processing & preservation capacity of 14.41 Lakh MT. The operationalization of these approved projects is anticipated to attract an investment of Rs 2303.24 crore, benefiting approximately 3.53 lakh farmers and generating over 0.57 lakh direct and indirect employment opportunities.
In total, 1,646 projects have been approved under various components of PMKSY since their launch. Out of these, 1,087 projects are operational, yielding a processing & preservation capacity of 241.94 Lakh MT. The operationalization of these approved projects is expected to mobilize an investment of Rs 22778.60 crore, benefiting around 51 lakh farmers and creating more than 7.46 lakh jobs.
A total of 171 proposals under different categories of the Production Linked Incentive Scheme for the Food Processing Sector (PLISFPI) have also been approved, with a reported total investment of Rs 8910 crore. This has generated employment opportunities for 2.89 lakh individuals, and incentives amounting to Rs 1084.011 crore have been disbursed under 85 eligible cases, the report concluded.
