Food Processing Sector records 7.27% CAGR in 2020-21

New Delhi, Dec 20 (KNN) The Gross Value Addition (GVA) in food processing sector has increased from Rs. 1.79 lakh crore in 2016-17 to Rs.2.37 lakh crore in 2020-21 at a Compounded Annual Growth Rate (CAGR) of 7.27 per cent.

Sharing the GVA for the last three years and recent year 2020-21, Minister of State for Food Processing Industries, Prahlad Singh Patel in a written reply in Lok Sabha on Tuesday informed that no target is set for the food processing sector for creating employment opportunities and increasing its contribution in GDP.

The food processing sector contributes 12.2 per cent of employment in the registered manufacturing sector.

Various schemes and policy initiatives being implemented by the Ministry results in increased contribution of the sector to India’s GVA, said the minister.

During 2017-18 the GVA was at Rs 1.93 lakh crore, Rs 2.36 lakh crore in the next financial year and Rs 2.26 lakh crore in FY20.

The Ministry of Food Processing Industries implements the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) which inter–alia aims at creation of modern post-harvest infrastructure, boosting value addition, providing better returns to farmers, creation of employment opportunities etc.

In addition, the Ministry is also implementing the PM-Formalization of Micro Food Processing Enterprises (PMFME) Scheme for providing financial, technical and business support for setting up/upgradation of two lakh micro food processing enterprises across the country.

A new Production Linked Incentive scheme (PLIS) for Food Processing Sector is being implemented to support creation of global food manufacturing champions.

This scheme will also create more employment opportunities and higher exports for the sector.  (KNN Bureau)