National Food Processing Policy

December 12, 2021 February 20, 2022

The National Food Processing Policy was launched to develop the food processing sector. It aims to address the gaps hampering the growth of the sector. Also, the policy aims to increase the investment in the sector by six times by 2035.

What are the objectives of the policy?

To reduce wastage at farmer levels
To increase farmer incomes
To support the food processing industry
To create employment opportunities
To ensure high deployment of credit
To enhance availability of affordable, safe and high quality food products

What are the incentives proposed by the policy?

Capital investment subsidy for new food processing units
Incentive for technology upgradation in existing units
Lower GST rates on food processing machineries
Electrical duty and land related concessions

What are the proposals to promote employment in the sector?

To encourage and facilitate farmers to set up food processing units
To promote food processing training cum incubation centres
To start new courses and conduct researches in food technology and management

What does the policy propose for supply chains?

To identify, develop and promote production clusters and agricultural processing clusters
To support the development of logistics infrastructure. This includes cleaning and packing facilities

Significance of the policy

The policy will help to boost employment opportunities. This is because the food processing industries act as the bridge between the manufacturing and agricultural sector.
It helps to double the farmers’ income.
It will reduce malnutrition. When the processed foods are fortified with minerals and vitamins, they reduce the nutrition gap.
According to the United Nations, 40% of the food produced in the country is wasted. With greater thrust on diverting the extra produce to the food processing industry, the agricultural wastage can be reduced.
As food processing sector is labour intensive, it will provide localized employment and will curb migration.
Crop Diversification

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