Abstract
This paper provides a detailed analysis of food processing industry in India, its ST to INR 15077 crore in proposed outlay for 12th plan. The sector is growing, but it is yet to compete in the world market. India’s share in world export is meagre with 1.17%. There is a wide gap between productivity and processing of items. The factors which have been used to study food processing industry are S&T capability of sector, its employment generation capacity and skills needed in the sector. The S&T capability segment venture into the changing trend of technology, difference between conventional and modern technology, the areas in which India is lagging behind. The employment generation capacity highlights growth and size of the industry and skills about the kind of human resources involved in the industry, the level of technology used in the sector. The employment generation capacity of the sector is huge, but the industry is not working at its potential. The labor force is highly unskilled, with 80% of them having educational level below 10th standard. The impact of a variety of policies and programmes undertaken by government to develop food processing sector has not been very encouraging. The state needs to strengthen its efforts in S&T capability, infrastructure support and skill set in order to develop food processing industry.
Highlights
Food processing is the transformation of raw ingredients into food, or of food into other forms
Its employment intensity can be seen by the fact that for every Rs. 1 million invested, 18 direct jobs and 64 indirect jobs are created in organized food processing industry only [4]
The data sources are from National Sample Survey Organization (NSSO), National Skill Development Corporation (NSDC) report on Human Resource and Skill Requirements in the Food Processing Sector, Study on mapping of human resource skill gaps in India till 2022, National Bank for Agricultural and Rural Development (NABARD) occasional paper on Status and Potentials of Village Agro-Processing Units/Industries, 2005, Annual Survey of Industries (ASI) reports of the year 2010-11, Ministry of Food Processing Industry (MOFPI) strategic plan and others
Summary
Food processing is the transformation of raw ingredients into food, or of food into other forms. A strong and dynamic food processing sector plays a significant role in diversification of agricultural activities, improving value addition opportunities and creating surplus for export of agro-food products [3]. It is widely accepted that the food processing sector is the most appropriate sector for creating jobs for rural poor, and reduce the burden on agricultural sector for creation of their livelihood. This is due to their familiarity with the agricultural sector which would make it easier to train and place them in food processing enterprises. The paper endeavors to analyze the food processing industry in its current form in India. The paper looks into the various challenges faced by the industry, and the future prospects of sector, the employment generation capability of industry, and the skills possessed by the workforce; it deals with various public sector initiatives implemented through various policies, programmes and schemes of government
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