UPSC Mains 2025 GS3 Q14: model answer

Food processing links farms with factories. India is among the largest producers of milk, fruits, vegetables and pulses, yet processes only a small share of its perishables. That gap is the sector's scope.

Scope

• Raw material: large and diverse production; 15 agro-climatic zones.
• Demand: urbanisation, working women and rising incomes increase demand for ready foods.
• Exports: processed foods, marine products, spices, millets.
• Waste reduction: lakh crores of produce lost every year after harvest.
• Jobs: labour-intensive, rural and women-friendly; it is already a major employer in registered manufacturing.

Constraints: weak cold chains, small farms, unorganised units, complex food safety compliance, credit gaps.

Government measures for employment

• PM Kisan SAMPADA Yojana (2017): mega food parks, cold chains, agro-processing clusters.
• PM Formalisation of Micro Food Processing Enterprises (PMFME, 2020): credit-linked subsidy for two lakh micro units on the One District One Product model; SHG members get seed capital.
• PLI for food processing (₹10,900 crore): ready-to-eat foods, marine, millet products, Indian brands abroad.
• 100% FDI under automatic route; 100% FDI in retail trade of food products made in India.
• Operation Greens for tomato, onion, potato and later other perishables.
• FPOs and Agriculture Infrastructure Fund; World Food India to attract investors.
• Skilling through Food Industry Capacity and Skill Initiative.

With small units and FPOs at its base, food processing can create rural jobs and raise farm income together.