Gross Value Addition In Food Processing Sector Rises To Rs 2.37 Lakh Cr In FY21: Centre

The Gross Value Addition (GVA) in the food processing sector has increased to Rs.2.37 lakh crore in 2020-21 at a compounded annual growth rate (CAGR) of 7.27 per cent, said Minister of State for Food Processing Industries, Prahlad Singh Patel on Tuesday.

In a written reply in Lok Sabha, Patel said that no target is set for the food processing sector for creating employment opportunities and increasing its contribution in gross domestic product (GDP). 

However, the food processing sector contributes 12.2 per cent of employment in the registered manufacturing sector, he stated. 

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

While talking about the centrally sponsored schemes, he said that under the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY), government 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-formalisation of Micro Food Processing Enterprises (PMFME) scheme for providing financial and technical support for setting upgradation of two lakh micro food processing enterprises in India. 

The minister added that 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," he said.