GS3 · 15 marks · 250 words

India's food processing sector is moving towards greater formalization and efficiency. Critically assess how initiatives like the PLI scheme and Pradhan Mantri Formalisation of Micro Food Enterprises (PM-FME) contribute to this transformation.

Answered by 3 toppers · CSE 2024–2025

Syllabus: Food processing and related industries in India- scope’ and significance, location, upstream and downstream requirements, supply chain management.

How toppers approached it

From all 3 answers · about 220 words · 33% drew a diagram.

Opening

  • A figure3 of 3

Body

  • Points and prose2 of 3
  • Points1 of 3

Close

  • A way forward2 of 3
  • A summary1 of 3

The toppers’ answers

Sandeep BadadAIR 82 · CSE 2025 · 191 wordsTheir whole copy

Opening · a figure

Indian food processing industry is valued at ~ $ Bn growing at 15% CAGR.

Shift towards greater formalisation

Body · points and prose

Earlier → >90% was informal

Now there is 32% formalisation in FP sector

Diagram
Bar chart showing informal enterprises in FP: - X-axis: 2016-17, 2023-24 - Y-axis: Informal enterprises - 2016-17 bar shows 92% - 2023-24 bar shows 78%

Increase in number of registrants on Udyam-portal

Exports: contains 24% of processed food in total agricultural exports.

PM Formalisation of micro food enterprises

cluster based approach

Register on central portal

support infrastructure and technology

upgradation

Credit availability and access

Encourage women participation

PLI - Production linked incentives

Promoted quality exports (24%)

lead to greater market outreach

Assessment of effectiveness (1) Formalisation levels higher than earlier (2) Improvement in production technology and diversification of products

(3) Improved warehouse and cold storage infrastructure (4) Greater compliance with sanitary and phytosanitary compliance

Challenges (1) Skewed to primary processing. (2) Less focus on horticulture - particularly Vegetables value addition (3) Export potential is still not reached (4) Domestic demand remain unaddressed

Close · a summary

Initiatives → PM Matsya Sampada for marine products Kisan Rail for fast logistics

Food processing is a sun rise sector which has potential to create manufacturing base and address food security goal

More on Food Processing

Scope and location of food processing, upstream and downstream requirements, supply-chain management, value addition.

All GS3 questions on Food Processing