GENERATION OF EMPLOYMENT IN FOOD PROCESSING SECTOR

Food Processing Industry is employment intensive. It has been estimated that for every Rs.1 crore invested, it creates 18 jobs directly and 64 indirectly in the organized sector and 20 jobs in the unorganised sector across the supply chain. At present food processing sector employs about 13 million people directly and about 35 million people indirectly. Government is encouraging Food Processing Sector to increase the processing level from 6% to 20 % and value addition increase from 20% to 30%.   However, no specific area and gender-wise employment figures are maintained in the Ministry.

(Source: IMAC on behalf of National Skill Development Corporation).

As far as the future Action Plan for the remaining part of Eleventh Plan regarding employment generation is concerned, the expansion of food processing sector will have bearing on employment generation. Government has taken necessary steps to create more jobs in the food processing sector by providing financial assistance through its various schemes for development of food processing sector which is expected to lead to increased level of processing and employment. Thus the Ministry has adopted Vision 2015, which aims to triple the size of food sector in 10 year’s time by increasing the level of processing of perishables from 6% to 20%, value addition from 20% to 35% and share in global food trade from 1.5% to 3%.

Ministry of Food Processing Industries (MFPI) has been implementing various schemes for promotion and development of food processing industries in the country. MFPI through its various schemes for financial assistance and other promotional measures facilitates creation of food related infrastructure including processing facilities aimed at reducing wastages, enhancing value addition and increasing shelf life. Under the Scheme for Technology Up gradation/ Modernization/ Establishment of Food Processing Industries, MFPI extends financial assistance to food processing industries in the form of grant-in-aid @ 25% of the cost of plant and machinery and technical civil works subject to a maximum of Rs. 50.00 lakh in general area or 33.33% subject to maximum of Rs. 75.00 lakh in difficult areas such as Jammu & Kashmir, Himachal Pradesh, Uttarakhand, North Eastern States, A&N Islands,Lakshadweep and ITDP areas. In addition, under the Technology Mission for Integrated Development of Horticulture in North Eastern andHimalayan States, higher levels of assistance @ 50% up to maximum ofRs. 4.00 Crore for setting up and Rs. 1.00 Crore for Up gradation of fruit and vegetables processing is available. A National Horticulture Mission (NHM) has been launched with an objective to boost the horticulture sector.

In the 11th Plan, the Ministry has approved new scheme to establish 30 Mega Food Parks with a view to provide state-of-the- art infrastructure for food processing sector in the country on a pre-identified cluster basis with a strong backward and forward linkage and to provide value addition of agricultural commodities including poultry, meat, dairy, fisheries etc. in a demand driven manner. Financial assistance up to 50% of project cost excluding land component in general areas and 75% in difficult areas, subject to a maximum of Rs. 50.00 Crore is provided for setting up of Mega Food Parks.

To encourage setting up of cold chain facilities and backward linkages in the country, Ministry of Food Processing Industries (MFPI) has a Plan Scheme for Cold Chain, Value Addition and Preservation Infrastructure during the 11th Plan to provide financial assistance to project proposals received from public / private organizations for cold chain infrastructure development. The scheme envisages financial assistance in the form of grant-in- aid @ 50% of the total cost of plant and machinery and technical civil works in general areas and 75% for North Eastern Region and difficult areas subject to a maximum of Rs.10.00 Crore.  There is no specific Plan for backward areas of Andhra Pradesh in this regard, however, Ministry has approved a mega food park which will link to agrarian communities to produce raw materials for further processing resulting in employment generation in Andhra Pradesh.

This information was given by Shri Subodh Kant Sahai, Minister of Food  Processing Industries in the Rajya Sabha.