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π Food Processing Industries (FPIs)
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The food processing industry is a broad term that encompasses the activities involved in transforming raw agricultural products into food products for human consumption.
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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
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The upstream supply chain: This includes the farmers, suppliers, and processors who provide the raw materials for food processing.
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The midstream supply chain: This includes the food manufacturers, distributors, and retailers who transform and deliver food products to consumers.
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The downstream supply chain: This includes the consumers who purchase and consume food products.
Key elements
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Raw materials: The food processing supply chain starts with the production of raw materials, such as fruits, vegetables, meat, and dairy products.
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Processing: The raw materials are then processed into food products, such as canned goods, frozen foods, and snacks.
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Packaging: The food products are then packaged for transportation and storage.
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Distribution: The food products are then distributed to retailers, who sell them to consumers.
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Retail: The consumers purchase the food products from retailers and consume them.
Challenges faced by the food processing industry
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Inadequate cold chain infrastructure: India has a cold storage capacity of only 37 million tons against an estimated requirement of 70-100 million tons.
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lkHigh post-harvest losses: India loses $13.4 billion worth of food grains annually due to inadequate storage and transport facilities.
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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.
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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.
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Longer supply chains: Indian farmers generally have to sell to wholesalers who supply to processors, thereby leading to longer and inefficient supply chains.
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Create more integrated cold chain networks to link farms, processing units andbconsumers.
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Promote modern supply chain technologies like RFID, blockchain for traceability and transparency.
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Adopt automated grading, sorting and packaging systems to maintain quality and hygiene.
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Set up more farm infra like collection centers, primary processing units to aggregata smallholder produce.
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Strengthen logistics infrastructure for quick transportation of perishables.
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Provide credit, tax incentives and subsidies for producers and processors to invest in supply chain improvement.
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