GS3 · 15 marks · 250 words

A link between unorganized farming community and formal industrial sector, Food Processing Industries (FPI) can play a key role in advancing the rural economy. Evaluate.

Answered by 4 toppers · CSE 2020–2023

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 4 answers · about 200 words · 75% drew a diagram.

Opening

  • A figure3 of 4
  • A quotation1 of 4

Body

  • Points and prose2 of 4
  • Points2 of 4

Close

  • A way forward3 of 4
  • A summary1 of 4

The toppers’ answers

Vaibhav RawatAIR 25 · CSE 2020 · 276 wordsTheir whole copy

Opening · a figure

Food processing industries/FPI act as link b/w 2 sectors of our economy agriculture & industry. Despite this advantage, food processing level in India is at abysmal rate of <10%.

Need is to link the farming sector with FPI which will lead to advancement of rural economy :-

Body · points

  1. Better price realisation to farmers :- Direct selling to FPI skipping intermediaries

  2. Value addition in FPI :- Increase value of agri item eg millets, fruits → increase income.

  3. Job creation :- FPI sector will create several formalised jobs in rural area itself.

  4. Rise in agri exports from rural areas due to value addition, branding & marketing eg processed milk.

  5. Rise of parallel economy :- Rise in FPI leed to rise in logistic sector, packaging material, waste processing etc.

  6. Utilisation of farm waste :- To produce ethanol, fertilizers etc.

  7. Development of cooperatives :- FPI can help farmers to form cooperatives.

  8. Development of backward rural areas eg Zoram food processing park in Mizoram.

Steps taken to promote & link farming community to FPI :-

  1. PM kisan sampada yojna :- Development of Food processing parks in cluster based model.

  2. Gram Samriddhi yojna : - Rural farmers to FPI

  3. PM scheme for formalisation of minor FPI

  4. National food processing policy

  5. Food processing fund

At the same time what we need is : -

  1. Rural logistics development : - PM Gram Sadak Yojna, NIP
  2. Awareness of farmers
  3. Promoting FPO's & cooperative
  4. Allowing direct selling outside APMC

Close · a way forward

These steps will lead to advancement of rural economy - not only economically, but socially & also in development of infrastructure.

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