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πŸ”† Food Processing Industries (FPIs)

βœ…The food processing industry is a broad term that encompasses the activities involved in transforming raw agricultural products into food products for human consumption.
βœ…These activities include cleaning, sorting, grading, cooking, preserving, packaging, and distributing food products.
FPIs accounts for about 12% of the country's GDP and employs about 40 million people.

Food processing supply chain Categories

βœ… The upstream supply chain: This includes the farmers, suppliers, and processors who provide the raw materials for food processing.
βœ… The midstream supply chain: This includes the food manufacturers, distributors, and retailers who transform and deliver food products to consumers.
βœ… The downstream supply chain: This includes the consumers who purchase and consume food products.

Key elements

βœ… Raw materials: The food processing supply chain starts with the production of raw materials, such as fruits, vegetables, meat, and dairy products.
βœ… Processing: The raw materials are then processed into food products, such as canned goods, frozen foods, and snacks.
βœ… Packaging: The food products are then packaged for transportation and storage.
βœ… Distribution: The food products are then distributed to retailers, who sell them to consumers.
βœ… Retail: The consumers purchase the food products from retailers and consume them.

Challenges faced by the food processing industry

βœ… Inadequate cold chain infrastructure: India has a cold storage capacity of only 37 million tons against an estimated requirement of 70-100 million tons.
βœ… lkHigh post-harvest losses: India loses $13.4 billion worth of food grains annually due to inadequate storage and transport facilities.
βœ… Fragmented farm produce: India's farm sector is fragmented with a large number of small and marginal farmers. This makes aggregation of farm produce challenging.
βœ… Lack of automation: The food supply chain in India lacks adequate automation in sorting, grading and packaging of agricultural produce. This leads to manual handling and quality issues.
βœ… Longer supply chains: Indian farmers generally have to sell to wholesalers who supply to processors, thereby leading to longer and inefficient supply chains.


βœ… Create more integrated cold chain networks to link farms, processing units andbconsumers.
βœ…Promote modern supply chain technologies like RFID, blockchain for traceability and transparency.
βœ… Adopt automated grading, sorting and packaging systems to maintain quality and hygiene.
βœ… Set up more farm infra like collection centers, primary processing units to aggregata smallholder produce.
βœ… Strengthen logistics infrastructure for quick transportation of perishables.
βœ… Provide credit, tax incentives and subsidies for producers and processors to invest in supply chain improvement.

#gs3
#prelims
#economy

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@upsc_4_economy



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πŸ”† Food Processing Industries (FPIs)

βœ…The food processing industry is a broad term that encompasses the activities involved in transforming raw agricultural products into food products for human consumption.
βœ…These activities include cleaning, sorting, grading, cooking, preserving, packaging, and distributing food products.
FPIs accounts for about 12% of the country's GDP and employs about 40 million people.

Food processing supply chain Categories

βœ… The upstream supply chain: This includes the farmers, suppliers, and processors who provide the raw materials for food processing.
βœ… The midstream supply chain: This includes the food manufacturers, distributors, and retailers who transform and deliver food products to consumers.
βœ… The downstream supply chain: This includes the consumers who purchase and consume food products.

Key elements

βœ… Raw materials: The food processing supply chain starts with the production of raw materials, such as fruits, vegetables, meat, and dairy products.
βœ… Processing: The raw materials are then processed into food products, such as canned goods, frozen foods, and snacks.
βœ… Packaging: The food products are then packaged for transportation and storage.
βœ… Distribution: The food products are then distributed to retailers, who sell them to consumers.
βœ… Retail: The consumers purchase the food products from retailers and consume them.

Challenges faced by the food processing industry

βœ… Inadequate cold chain infrastructure: India has a cold storage capacity of only 37 million tons against an estimated requirement of 70-100 million tons.
βœ… lkHigh post-harvest losses: India loses $13.4 billion worth of food grains annually due to inadequate storage and transport facilities.
βœ… Fragmented farm produce: India's farm sector is fragmented with a large number of small and marginal farmers. This makes aggregation of farm produce challenging.
βœ… Lack of automation: The food supply chain in India lacks adequate automation in sorting, grading and packaging of agricultural produce. This leads to manual handling and quality issues.
βœ… Longer supply chains: Indian farmers generally have to sell to wholesalers who supply to processors, thereby leading to longer and inefficient supply chains.


βœ… Create more integrated cold chain networks to link farms, processing units andbconsumers.
βœ…Promote modern supply chain technologies like RFID, blockchain for traceability and transparency.
βœ… Adopt automated grading, sorting and packaging systems to maintain quality and hygiene.
βœ… Set up more farm infra like collection centers, primary processing units to aggregata smallholder produce.
βœ… Strengthen logistics infrastructure for quick transportation of perishables.
βœ… Provide credit, tax incentives and subsidies for producers and processors to invest in supply chain improvement.

#gs3
#prelims
#economy

Join
@CSE_EXAM
@upsc_4_economy

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