Mega Food Parks: Boosting India’s Food Processing Sector

The Ministry of Food Processing Industries (MoFPI) has made significant strides in strengthening India’s food processing sector by approving 41 Mega Food Parks across the country. These parks are part of a broader strategy to enhance the sector’s contribution to the Indian economy, as well as to increase employment, exports, and overall growth. Over the past eight years, the food processing industry has grown at an Average Annual Growth Rate (AAGR) of around 5.35%, highlighting its vital role in the nation’s economic development.

Growth of the Food Processing Sector

The food processing sector has become an essential component of India’s economy, contributing significantly to the Gross Domestic Product (GDP) and providing a substantial number of jobs. The Gross Value Added (GVA) in the food processing sector rose from ₹1.61 lakh crore in 2015-16 to ₹1.92 lakh crore in 2022-23, according to the First Revised Estimates by the Ministry of Statistics and Programme Implementation.

The sector has also seen a notable increase in employment. The number of jobs in food processing industries increased from 17.73 lakh in 2014-15 to 20.68 lakh in 2021-22, according to the latest Annual Survey of Industries (ASI) report. Furthermore, the share of processed food exports in agri-food exports rose from 13.7% in 2014-15 to 23.4% in 2023-24, demonstrating the sector’s growing importance in international trade.

Government Initiatives to Support the Sector

To further boost the food processing sector and address its challenges, the MoFPI has implemented several key schemes, including,

Pradhan Mantri Kisan SAMPADA Yojana (PMKSY): This central sector umbrella scheme aims to develop modern infrastructure with efficient supply chain management, from farm gate to retail outlet, promoting overall growth and development of the food processing industries. The scheme focuses on creating employment opportunities, reducing agricultural produce wastage, increasing processing levels, and enhancing the export of processed foods.

The Ministry has approved the following projects under PMKSY:

• 41 Mega Food Parks
• 399 Cold Chain projects
• 76 Agro-processing Clusters
• 588 Food Processing Units
• 61 Creation of Backward & Forward Linkages Projects
• 52 Operation Green projects

PM Formalization of Micro Food Processing Enterprises (PMFME)

This centrally sponsored scheme provides financial, technical, and business support for setting up or upgrading micro food processing enterprises. Operational from 2020-21 to 2024-25, with a total outlay of ₹10,000 crore, the scheme has approved assistance for 92,549 micro food processing enterprises.

Production Linked Incentive Scheme for Food Processing Industry (PLISFPI): Launched to support the creation of global food manufacturing champions, this scheme aims to enhance branding and marketing of Indian food products internationally. With an outlay of ₹10,900 crore, the scheme will run from 2021-22 to 2026-27. A total of 172 food processing companies have been approved for assistance under various categories of this scheme.

The Role of Mega Food Parks

The development of the food processing sector is expected to have a profound impact on the Indian economy by enhancing agricultural productivity by reducing waste and increasing the efficiency of supply chains, the sector helps maximize the value derived from agricultural produce. The Ministry of Food Processing Industries’ approval of 41 Mega Food Parks is a testament to the government’s commitment to transforming the food processing sector into a key driver of economic growth.

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