UPSC Mains 2017 · GS III · Q5 · 10 marks · 150 words

What are the reasons for poor acceptance of cost-effective small processing unit ? How the food processing unit will be helpful to uplift the socio-economic status of poor farmers ?

हिन्दी में

लागत प्रभावी छोटी प्रक्रमण इकाई की अल्प स्वीकारिता के क्या कारण हैं ? खाद्य प्रक्रमण इकाई गरीब किसानों की सामाजिक-आर्थिक स्थिति को ऊपर उठाने में किस प्रकार सहायक होगी ?

How a topper answered the closest question

Toppers wrote this one in a test series: “Discuss the potential of food processing sector in addressing the issues of low value addition, high post-harvest losses and disguised unemployment plaguing Indian agriculture. Also, explain why the sector has underperformed despite its significant potential.”

Deepak GodaraCSE 2024 · 239 wordsTheir whole copy

Opening

food processing sector is sunrise sector that holds potential to transform stagnant Agriculture sector with recording CAGR (Component Annual growth) = 8-9%.

Body · points

Addressing low value Addition

  1. According to APEDA value addition can be improved, which is poor:
  • 4% → fishery
  • 2% → Horticulture
  • 35% → milk
  • 6% → meat
  1. Perishable items can be improved which will [increase] Agriculture GVA by 13% (NAFED)

  2. use of Biotechnology & cold chains to increase exports led growth

  3. improve food security by increased nutrients to food.

Post-Harvest losses

  1. By value Addition at various stages
Diagram
FPO's, KVK, SHG → PPU (primary processing unit) → CPU (Central processing unit) CPU → Exports, Domestic market, Non-perishable, Exports

Mega Food Park

  1. Cold chain storage → SAMPADA yojana

  2. Fast Transportation → KISAN RAILS

Disguised unemployment Tackle

  1. Consume workforce from Agriculture which is stagnant.

  2. Reduce Unemployment Rate (8% CMIE) as it is labour intensive sector.

  3. Help Labour force participation ratio to improve.

  4. New Startups, Enterpreneurs more employment.

Despite such potentials challenges

(1) Upstream challenges: Poor transportation and acess to APMC's by farmers to send raw materials.

(2) Down stream challenges → Gradation challenge, D-marketing challenge.

(3) Backward & forward linkages: 17 MF parks are working below their capacity

(4) Governance issues: Lack of credit to MSME's, FPO's, SHG's.

(5) Cultural issues: preference to fresh food.

(6) Cold chain Infrastructure is still in Nascent stage.

Diagram
[PLI-FPI] → [Govt schemes] - Mega food Parks - 10000 FPO's - Model APMC - PM SAMPADA - Matsya sampada

Close · a source

Hence to make this By these steps the sector can help Agriculture to DFR (Ashok Dalwai Comm)

How toppers approach this question, and more on its topic: open the question.

Toppers’ answers to other close questions

Source: UPSC, Civil Services (Main) Examination 2017, General Studies Paper III, Q5. The paper on upsc.gov.in. Themes and links to toppers’ answers are by UPSC Grade, not by UPSC.