FOOD PROCESSING SECTOR IS GROWING AT 8.4%
India’s food processing sector is growing at the rate of 8.4 per cent.
The food processing industry is one of the major employment intensive segments constituting 13.04 per cent of employment generated in all registered factory sector in 2012-13.
100 per cent Foreign Direct Investment (FDI) is permissible in food processing sector through automatic route except for items reserved for Micro and Small Enterprises (MSEs). During (April-January) 2014-15, the sector has attracted $ 421.51 Million FDI in the country.
During last six months, the average inflation rate for (October-March) 2014-15 against (October-March) 2013-14 for food articles & manufactured food items have witnessed a decline from 13 per cent to 5.1 per cent and from 1.8 % to 1.5 % respectively in 2014-15 as compared to 2013-14.
High level of wastages in perishables is a challenge but the endeavour of the government is to promote food processing industry to catalyse reduction of wastage of agricultural produce and ensuring higher returns to the farmers. With a view to promote the sector, the government has been strengthening infrastructure by supporting creation of cold chain and mega Food Park under the Central Sector Scheme of Infrastructure Development. Recently, the ministry has sanctioned 17 new Mega Food Parks to attract investment in the sector and will sanction around 30 more new cold chain projects.