Empowering Rural India Through Food Processing Initiatives

Transforming India's Food Processing Sector

India's food processing sector is a pivotal force driving rural transformation by harnessing local agricultural strengths and converting them into global market opportunities. Supported by initiatives such as PMFME (Pradhan Mantri Formalisation of Micro Food Processing Enterprises), PMKSY (Pradhan Mantri Kisan SAMPADA Yojana), and the Production Linked Incentive (PLI) scheme, this sector is creating jobs, minimizing post-harvest losses, and fostering entrepreneurship.

Infrastructure Growth

New infrastructure developments, including irradiation units and food testing labs, are significantly enhancing food safety and boosting exports. Regional products like Bihar's makhana snacks and Chhattisgarh's Mahua chocolates are now making their way onto international shelves, showcasing inclusive growth and self-reliance.

Key Drivers of Transformation

The transformation within India's food processing sector is driven by a robust policy push from the Government of India, supported by flagship schemes, including:

• PMFME (Pradhan Mantri Formalisation of Micro Food Processing Enterprises)
• PMKSY (Pradhan Mantri Kisan SAMPADA Yojana)
• PLI Scheme for Food Processing
• World Food India platform for international engagement

These initiatives focus on formalizing traditional food businesses, creating rural employment, increasing value addition, and enhancing India’s presence in global markets.

Successful Local Products Going Global

Several local products have successfully entered the global market, including:

• Makhana from Madhubani, Bihar: Entrepreneur Gyanish Mishra exports flavored foxnuts to the U.S. and Canada.
• Mahua in Bastar, Chhattisgarh: Tribal women have developed chocolates, teas, and energy bars using Mahua under the PMFME scheme.
• Various products such as jaggery, pickles, spices, and millet-based items from across India are being processed and marketed through innovative branding.

Support for Micro-Entrepreneurs

The PMFME scheme provides essential support for unorganised food processing units, including:

• Access to credit through loans exceeding ₹11,205 crore
• Capacity building and skill development opportunities
• Infrastructure support for Self-Help Groups (SHGs) and Farmer Producer Organisations (FPOs)

Over one lakh entrepreneurs have been trained, many of whom have developed market-ready products.

Role of PMKSY in Food Processing

Under the PMKSY initiative:

• 1,604 projects have been sanctioned
• 250 lakh metric tonnes of food processing and storage capacity created
• Over ₹22,000 crore of private investment mobilised
• 53 lakh farmers and 7.6 lakh jobs directly benefited

This scheme also aims to reduce food wastage and improve food supply chains.

Infrastructure Development for Post-Harvest Losses

The Union Budget 2024–25 announced the establishment of:

• 50 multi-product irradiation units to extend food shelf life
• 100 NABI-accredited testing labs for ensuring food safety

These initiatives are crucial for complying with international standards and minimizing food spoilage.

Impact of the PLI Scheme

The PLI Scheme for food processing has catalyzed:

• Industrial investments of ₹8,900 crore
• Creation of over 3.3 lakh jobs
• Increase of over 67 lakh metric tonnes in processing capacity

This initiative strengthens large-scale food manufacturing and formal job creation.

Promoting India's Food Exports

The government is taking significant steps to promote food exports through:

• Launch of World Food India as an international platform
• Establishment of the National Makhana Board to brand and export Indian superfoods
• Enhanced traceability and packaging standards to meet export requirements

India is also focusing on functional foods, sustainable packaging, and ethnic processed foods to meet global demand.

Innovation and Skill Development in Food-Tech

Initiatives supporting innovation and skill development include:

• NIFTEM-Kundli and NIFTEM-Thanjavur, which train technologists and support food start-ups
• India's food-tech ecosystem now comprises over 5,000 start-ups, many offering regionally sourced products.

Broader Social Impact of Food Processing

Food processing is:

• Reducing gender inequality by empowering rural women's SHGs
• Creating rural jobs without necessitating migration
• Enhancing farmer incomes through better pricing for produce
• Revitalizing tribal economies with products like tamarind and jackfruit

This sector is becoming a driving force for grassroots transformation and a cornerstone of inclusive development.

Alignment with Long-Term Goals

The food processing sector aligns with India's long-term goals by supporting:

• Doubling farmer incomes
• Atmanirbhar Bharat through domestic food brands
• Infrastructure development under Gati Shakti and PM Gati Shakti-NMP