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Food Irradiation Units set up by the Ministry of Food Processing
Context:
In the Union Budget 2024-25, the Ministry of Food Processing Industries announced support for setting up 50 multi-product food irradiation units in the MSME sector to extend the shelf life of perishable goods like fruits and vegetables.
About the Food Irradiation units:
- The government has invited expressions of interest (EoI) from entrepreneurs for setting up these units under the Cold Chain Scheme, a component of the Pradhan Mantri Kisan SAMPADA Yojana.
- Cold chain Scheme
- Objective: Provide seamless cold chain and preservation infrastructure from farm gate to consumer.
- Food Irradiation involves exposing food, whether packaged or in bulk, to ionising radiation in a controlled environment.
- Food irradiation extends shelf life and reduces food losses by eliminating microorganisms, preventing spoilage, and delaying ripening.
- It reduces the need for chemical preservatives and simplifies food safety practices.
- It is a safe method used widely in advanced safety standard countries like the US, Japan, Australia, Canada, and the EU.
- Ex: The 2012 agreement allowed Indian mangoes to be exported to the US after irradiation addressed pest threats.
FOOD PROCESSING SECTOR (FPI):
- Sector Overview
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- India: Largest producer of milk, second largest in fruits, vegetables, and sugar.
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- Vital role: Reduces waste, enhances shelf life, adds value to produce, drives agricultural diversification.
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- Economic Contribution of FPI: Major employer in organised manufacturing (12.02% of total employment).
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- Agri-food exports (2022-23): According to Economic Survey 2023-24 The value of agri-food exports, including processed food exports during 2022-23, was USD46.44 Billion, accounting for about 11.7 per cent of India’s total exports.
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- Processed food exports share: Increased from 14.9% (2017-18) to 23.4% (2022-23).
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- Growth and Challenges
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- FPI growth (2013-23): 5.35% average annual growth rate AAGR (at 2011-12 prices).
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- Pandemic impact: Sector recovering, GVA increased from ₹1.30 lakh Cr (2013-14) to ₹1.92 lakh Cr (2022-23).
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Challenges:
- Minimal GVA Contribution: Despite high demand, the food processing sector’s share in India’s GVA was only 1.88% in 2020-21, compared to manufacturing (17.86%) and agriculture (16.26%).
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- India’s food processing industry is still emerging, representing less than 10 percent of the country’s total food production.
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- Skills and Technology Deficits: The sector faces a shortage of skilled workers and relies on outdated technologies, reducing efficiency and product quality.
- Infrastructure Limitations: Inadequate cold storage, transportation, and processing infrastructure cause post-harvest losses exceeding 30%, with NITI Aayog estimating annual losses at nearly ₹90,000 crore.
- Prevalence of Informal and Unorganised Segments: About 75% of the sector is unorganised, leading to inefficiencies in production.
- Supply Chain Fragmentation: Fragmented and poorly coordinated supply chains result in delays, waste, and low-quality products, as seen in Bihar’s agricultural hinterland.
- Export Regulatory Hurdles: Stringent sanitary and phytosanitary (SPS) measures in export markets, like the EU, hinder Indian processed food exports.
Government Initiatives:
- PLI Scheme for FPI: Supports global food manufacturing, branding, and marketing.
- PMFME Scheme:Pradhan Mantri Formalisation Of Micro Food Processing Enterprises: ₹10K Cr outlay, credit-linked subsidy, capacity building, marketing support.
- Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) scheme:It was envisaged as a comprehensive package which will result in creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet.
- Kisan Rail
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- Kisan Rail connects farmers to distant, lucrative markets, enabling them to sell their produce at better prices and helping achieve the Government’s goal of doubling farmers’ income.
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