National Mission on Food Processing

The continuing food inflation in the country has brought in sharp focus “supply side” constraints, especially in case of perishables. There is thus an increasing realization about the need to increase agricultural production in the country and a strategy to usher in second green revolution is under preparation. At the same time, it needs to be understood that it will not be enough only to produce more, but it is equally important to save each grain produced by reducing wastages. This would improve farmers’ income and economic viability of agricultural operations.

Thus the Working Group Report for the 12th Plan on food processing industries stresses on the growth of food processing sector.

The food processing sector makes it possible by not only ensuring better market access to farmers but also reducing high level of wastages. A developed food processing industry will reduce wastages, ensure value addition, generate additional employment opportunities as well as export earnings and thus lead to better socio-economic condition of millions of farm families.

Thus National Mission on food processing will be launched in the XIIth Five Year Plan. The NMFP would help the states/union territories in maintaining requisite synergy between agriculture plans of states and development of food processing sector, which in turn would help increase farm productivity thereby boosting farmers' incomes. By bridging infrastructural and institutional gaps, this would also ensure an efficient supply chain.

Objectives of NMFP

a) To spread the message of significance of food processing for enhancing agricultural productivity and farmers income in the country.
b) To assist the state governments in creating requisite synergy between their agricultural plans and development of food processing sector.
c) To assist the state governments in addressing both institutional and infrastructural gaps along the Value Chains and thus create efficient Supply Chains for agricultural produces.
d) To promote initiatives for skill development, training and entrepreneurship which would meet needs of both post-harvest management and food processing industry.
e) To assist MSMEs in setting up/modernization of food processing units by providing need based support in terms of capital/technology/skill etc.
f) To assist food processing industry to meet requisite standards in terms of food safety laws and market demand, both domestic and international.

Structure of the Mission

The proposed structure would be a three-tier structure at National, State and District levels.

a) National Level

At the apex level, there would be a Mission Directorate in the Ministry of Food Processing Industries with a Governing Council and an Executive Committee.

A Governing Council would be constituted under the Chairmanship of the Minister of Food Processing Industries and may comprise of Ministers and senior officials from relevant Ministries/Institutions, Industry associations and representatives of select state governments. The Council would be responsible for laying down priorities of the Mission and making its operational guidelines. It would also have periodical review of progress of the Mission and give its suitable recommendations.

An Executive Committee, on the other hand, would be constituted under the Chairmanship of Secretary of the Ministry, with a Joint Secretary of the Ministry as Member Secretary, and would have representatives from relevant Ministries/Institutions, Industry associations and select state governments to oversee the activities of the Mission and approve State Action Plans. The Committee would ensure smooth functional linkages among various levels and would be the link between Ministry and various state governments.

b) State Level

At the State level, too, a similar structure would be provided. Thus, there would be a State Food Processing Mission, which may be guided by a General Body headed by Chief Minister/concerned Minister and comprise of Ministers from relevant Departments/Institutions, Industry Associations, Experts etc.

An Executive Committee under Chief Secretary/Development Commissioner/Principal Secretary/Agriculture Production Commissioner/Secretary (Industries) may be set up which would be responsible for implementing the Schemes/programmes of the Mission.

A senior officer, at level of Director, may be designated as the Mission Director at State level who would be overall responsible for all activities under the Mission. The State level Mission may be required to have dedicated professionals and domain experts who would be supported by NMFP on need basis. Each State would be encouraged to set up a State Vision/Plan Document for the food processing sector.

c) District Level

At the District level, District Industries Centres may be nodal body for planning, implementation and monitoring of various programmes of Mission. In case of the States, with food processing under independent department/directorate, a nodal office may be set up at major food processing clusters to undertake this responsibility. Also, in case of food processing being attached with Department of Agriculture, a suitable agency may be identified at the District level. A district level committee can be formed by the State Government whenever considered necessary. Some mechanism for coordination with other agencies/schemes at District/State level should also be developed.

Further a Project Management Unit may be appointed in the Ministry for smooth implementation of all Schemes/programmes under Mission. This PMU may provide necessary support to the Mission Directorate in co-ordination with state governments to ensure regular monitoring and impact assessment of various projects. This PMU may be a professional agency consisting of a multi-disciplinary team of experts in the areas of food technology, cold chains, infrastructure development, project finance, training & capacity building, MIS etc.