The Ministry of Food Processing Industries (MoFPI) is a ministry of the government of India entrusted with preparing and implementing programs and policies for the advancement of the food processing industry in the country. The Ministry was set up in 1988 with the aim of fostering the development and growth of the food processing sector, which plays a key role in lowering post-harvest damages, creating employment, and boosting the value of agricultural produce.
An Overview
The Ministry of Food Processing Industries is the primary agency responsible for the management, development, and regulation of India’s food processing sector. Food processing pertains mainly to “value enhancement” to horticultural and agricultural products. In plain terms, it implies the utilization of diverse processes such as packaging, storage, preservation, irradiation, and transportation that lead to prolonged shelf life, better quality, food surplus, and enhanced nutritional value.
Food processing is an essential tool for economic development. Combining industry and agriculture allows farmers to commercialize and diversify, decrease wastage, boost their earnings, generate export markets, and promote employment. Over the years, the industry has begun producing frozen fruits, ready-to-consume food, meat, vegetables, and beverages.
The Ministry of Food Processing Industries recognizes various key areas like technological advances, implementing quality standards, infrastructure development, bolstering backward linkages, and enlarging the domestic and export markets for processed food products. Serving as a facilitator and catalyst, the Ministry draws foreign and domestic investments to build extensive integrated processing capabilities. This occurs by generating a conducive policy environment comprising the rationalization of duties and taxes.
India’s economic liberalization and the resultant economic growth, flourishing middle class, urbanization, and increasing disposable incomes have led to a consumption boom. Presently ranked 12th in the world, India is projected to become the fifth-biggest consumer base by 2025. The food processing industry is among the biggest industries in India and is presently ranked fifth for consumption, production, and anticipated growth. The market size for food in India is also estimated to rise, touching nearly Rs. 17, 23,096 crore (USD 344 billion) by 2025. With projected surges in investments, population, processing levels, and as a percentage of overall GDP, the ministry wields a critical mandate of nurturing, developing, and directing the food processing sector.
Mission and Vision
The Ministry of Food Processing Industries’ vision is to place India as a World Food Factory by building a conducive environment for the development of the food processing industry. The Ministry shall work to ensure that the growth of the food processing industry is aligned with policies of support, incentives, and business development in the hope of fostering the economy and improving the welfare of both consumers and farmers.
Roles and Goals
A dynamic and strong food processing sector plays a key role in lessening the wastage of perishable agricultural produce, boosting the shelf life of food products, assuring value accretion to agricultural produce, commercializing and diversifying agriculture, creating employment, increasing farmers’ incomes, and generating a surplus for the export of processed and agro foods. In the period of economic liberalization, all sectors, including the public, private, and cooperative sectors, have specific roles to perform, and the Ministry encourages their active participation.
The Ministry of Food Processing Industries has a distinct goal of achieving these objectives by expediting and serving as a catalyst to draw quality investments from inside India and abroad into this segment with the aim of turning food processing into a national endeavour. With this all-encompassing objective, the Ministry aims to:
- Boost farmer’s income by improved utilization and value enhancement of agricultural produce
- Reduce wastage at all levels in the food processing chain by the growth of infrastructure for transportation, storage and processing of agro-food produce
- Initiation of modern technology within the food processing industries from both external and domestic sources
- Promote R & D in food processing for process and product development and better packaging
- Offer policy support and backing for the building of infrastructure, capacity upgradation/expansion and other promotional measures form the development of this sectors
- Support the export of processed food products.
Responsibilities and Functions
The Ministry of Food Processing Industries has the specified functions:
- Promoting foreign direct investment (FDI) within the food processing sector.
- Building infrastructure facilities for the food processing industry, like cold chain facilities and food parks.
- Formulating and initiating programs and policies for the growth of the food processing industry.
- Facilitating the upgradation and modernization of prevailing food processing units.
- Offering incentives and financial aid to food processing units.
- Encouraging development and research in the food processing sector.
- Offering training and skill development plans for the food processing industry.
- To prepare and administer regulations, rules, and laws linked to food processing.
- To monitor and implement projects.
Initiatives and Schemes
Various initiatives and schemes were initiated by the Ministry of Food Processing Industries to support the development and growth of food processing industries in India. Some of the key schemes and initiatives would include:
- Pradhan Mantri Kisan Sampada Yojana (PMKSY): This umbrella scheme aims to generate modern infrastructure for the food processing industry, including integrated cold chain and value enhancement infrastructure, mega food parks, and agro-processing clusters.
- Scheme for Human Resource Development (HRD): This scheme offers financial aid for training and skill advancement of personnel in the food processing industry.
- Scheme for Generation of Infrastructure for Agro-Processing Clusters (APC): This scheme offers financial help to generate infrastructure services for agro-processing clusters.
- Scheme for Promotional Tasks: This scheme furnishes financial aid for organizing workshops, seminars, and exhibitions.
- Scheme for Expansion/Creation of Food Processing and Preservation Capacities (CEFPPC): This scheme offers financial assistance for the formation and expansion of food processing and preservation capabilities.
- Prime Minister Formalization of Micro Food Processing Enterprises (PMFME) Scheme: Inaugurated on June 29, 2020, by the Ministry of Food Processing Industries, Government of India, as a component of the Aatmanirbhar Bharat Abhiyan, the scheme has concluded two years of implementation. The scheme intends to vest unorganized micro-enterprises via the ‘One District One Product’ approach. States are entrusted with recognizing food products, including cereal-based products and perishable agricultural produce. The scheme is operational from 2020-21 to 2024-25.
- The PMFME Scheme equips to empower and formalize micro-food processing enterprises, inspiring the broader vision of economic development and self-reliance. It prioritizes financial support for Self Help Groups (SHGs), capacity generation, and strategic collaborations for branding and marketing activities. This scheme plays a vital role in strengthening India’s food processing sector.
- Another scheme of the MOFPI includes the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI).
Final Thoughts
The Ministry of Food Processing Industries plays a critical role in upholding the development and growth of the food processing industry in India. With diverse initiatives, schemes, and policy support, the Ministry has made great contributions toward modernizing and upgrading the food processing sector in order to reduce post-harvest losses, thus creating jobs and enhancing the value of agricultural produce. As the demand for processed food keeps on growing, both globally and domestically, the ministry is well-placed to back the industry in fulfilling this demand and projecting India as a significant player in the international food processing market.
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