Food Processing Sector under Make in India Program

The Standing Committee on Agriculture, Animal Husbandry, and Food Processing examined the initiatives taken in the food processing sector under the Make in India program to assess growth, investment, and infrastructure challenges. This matters to citizens as the sector is a major employer in organized manufacturing and impacts food safety and supply chain efficiency.

Ministry of Food Processing Industries, State Governments, Lending Institutions, and the general public (specifically MSMEs, food processing units, and rural/semi-urban consumers).

• Committee recommended expediting the Foreign Direct Investment (FDI) approval process to incentivize foreign investment.
• Committee recommended evaluating credit flows in rural areas under the Priority Sector Lending Scheme through an impact assessment study.
• Committee recommended the Ministry engage with lending institutions and states to resolve delayed subsidy releases under the PM Formalisation of Micro Food Processing Enterprises Scheme.
• Committee recommended setting annual formalisation targets and conducting regular monitoring to maximize the formalisation of food processing units.
• Committee requested information on lower sanctions and disbursements under the Special Food Processing Fund, loan repayments by mega food parks, and the operational capacity of borrowers.
• Committee recommended integrating all relevant authorities on the National Single Window System to facilitate statutory approvals.
• Committee recommended promoting MSME participation in e-commerce platforms in rural and semi-urban areas.
• Committee recommended FSSAI increase efforts to enhance food safety compliance, ensure adequate personnel, and explore blacklisting individuals rather than just units for adulteration.
• Committee recommended completing 36 pending food testing labs under the PM Kisan SAMPADA Yojana on a priority basis and upgrading existing labs.
• Committee recommended conducting an updated study to assess post-harvest losses in India.
• Committee recommended exploring the setup of wholly government-owned cold storages, value-chain modern infrastructure, and supply chain management systems in districts.
• Committee recommended prioritizing resource allocation to low-coverage regions for cold chain and storage facilities and incentivizing advanced storage technologies.

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