Agro-Processing Clusters: To Boost Food Processing Industry

Agro-Processing Clusters

The program intends to create modern infrastructure and communal amenities to entice a group of businesspeople to establish food manufacturing units. Each scheme's agro-processing cluster comprises two fundamental parts: Basic Enabling Infrastructure (roads, water supply, power supply, drainage, ETP etc.). Infrastructure pillars/standard facilities (warehouses, cold storage, IQF, tetra pack, sorting, grading etc.). The construction of shared infrastructure happens concurrently with the installation of the units.

Agriculture and India

India holds the record for second-largest agricultural land in the world, with around 60% of rural Indian households making their living from agriculture. India's economy is heavily reliant on agriculture. For instance, agriculture and related sector activities account for 54.6% of the total workforce and 17.8% of the nation's Gross Value Added (GVA) for the 2019–2020 calendar year.

Losses of Post-Harvest

Food loss occurs along the supply chain, from when a crop is harvested until it is consumed, and is referred to as postharvest loss. Weight loss from rotting, quality loss, nutritional loss, seed viability loss, and commercial loss are some of the several categories that the failures come under. Direct physical losses and quality losses that lower the crop's economic worth or could render it unfit for human consumption are included in the postharvest loss. These losses, when severe, can account for up to 80% of the overall production.

Requirement for the development of the food processing industry

Cooling facility

cold chains and warehouses help reduce wastage, and helps in improving and preserving quality, and maintain the shelf life, which will increase the commercial value.

Food safety analysis

The final product quality is determined by various standard testing procedures given by organizations. These methods can be utilized to prevent food contamination outbreaks. Using biotechnology, remote sensing, and energy-saving technologies to safeguard the environment

Infrastructure

Establishing a solid infrastructure for the production of value-added goods with a focus on food safety and quality that complies with global standards

Agro Processing Cluster

Agro Processing Cluster (APC) to PIPDIC under the Pradhan Mantri Kisan Sampada Yojana has received approval from the Ministry of Food Processing Industries of the Government of India (PMKSY).

Objectives of the Scheme

The primary objectives of the scheme are:

i. To build up modern infrastructure for food processing nearer to production regions.

ii. To offer integrated and comprehensive infrastructure facilities for food preservation from the farm gate to the customer.

iii. To link groups of producers/farmers to the processors and marketplaces through a well-equipped supply chain to effectively generate reverse and forward linkages.

This initiative aims to create advanced infrastructure to attract business owners to establish food processing facilities using a cluster model. The cluster is anticipated to contribute to eliminating waste of excess produce, adding value to horticultural and agricultural products, enhancing farmers' incomes, and generating local jobs.

Each agro-processing cluster under the schemes has two primary and at least 5 food processing units with a minimum investment of Rs. 25 crores. 

Basic enabling infrastructure: Includes site development, development of industrial plots, boundary wall, roads, drainage, water supply, electricity supply including power backup, effluent treatment plant, parking bay, weighbridges, common office space etc.

Core infrastructure: Includes food testing laboratory, cleaning, grading, sorting and packing facilities, steam generation boilers, dry warehouse, cold storage, pre-cooling chambers, ripening chambers, IQF, specialized packaging, other common processing facilities, etc.

Pattern of Support

The programme calls for grants-in-aid at 35% of eligible project costs in general areas and @50% under challenging regions like the Himalayan States (i.e., Himachal Pradesh, Jammu & Kashmir, and Uttarakhand), state-notified ITDP areas, Islands, and SC/ST entrepreneurs up to a maximum of Rs. 10,000,000,000 per project.

The eligible segments for Agro Processing Cluster

1. Fruits & vegetables
2. Milk
3. Ready-to-eat, ready-to-cook breakfast cereals, snacks and other related food products
4. Meat, poultry and fish
5. Spices, coconut and mushroom
6. Flour, pulse and oil mills
7. Wines and hops
8. Food flavours, food additives, colours and oleoresins
9. Rice mills (only in North East states).

The state-wise number of agro-processing cluster projects approved in various States/UTs:

These initiatives help link producers to processors and markets through an implemented supply chain.

• India stands 2nd the most extensive arable land in the world with the largest milk producer, having a livestock population of around 512 million. Strategic geographic location helps in a favourable location for export which gives rise to investment opportunities in agriculture, and food infrastructure, which will thereby help in the growth of the food processing and preservation sector.

• The Government of India has recently proposed that a fund with blended capital, raised under the co-investment model, will be facilitated through NABARD.

• Through this, Healthy farming practices in this country would be encouraged by the decrease in price differential associated with a commodity. Another element that can fuel this market's expansion is the utilization of free-trade zones for storage. The installation of potable processing facilities is another element that might optimize concerns related to farms. For example, the supply chain would be more connected if this device were included. In addition, it would make processing and transit within the region more accessible.
• This industry has tremendous development potential; it is anticipated that food production will quadruple in the next ten years, and demand for value-added products will increase quickly.

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