58 food parks in AP, TG set to get Nabard credit
The Centre promoting food parks to integrate agri production with markets by bringing together farmers, processors and retailers
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By the end of 2023, 41 projects were approved, out of which 24 were operational. The food processing industry in India is still in its early stages, contributing less than 10% to the total food output
New Delhi: The central government has finalised the list of 325 food parks, which will be eligible to get affordable credit from the National Bank for Agriculture & Rural Development (Nabard). The total corpus of the credit available for the food parks is Rs2,000 crore. Out of the 325 food parks, 32 are in Andhra Pradesh and 26 in Telangana, official sources told Bizz Buzz.
In 2022, the Ministry of Food Processing Industries established a special food processing fund of Rs2,000 crore with Nabard to provide affordable credit for investments in setting up food parks. The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) was approved in March 2021, with a budget of Rs10,900 crore to be implemented from 2021-22 to 2026-27.
The scheme is aimed at incentivizing manufacturing, promoting innovative/organic products, and endorsing Indian brands internationally. Additionally, a PLI Scheme for millet-based products (PLISMBP) was launched in 2022-23 with an outlay of Rs800 crore.
The government is promoting food parks to integrate agricultural production with the market by bringing together farmers, processors, and retailers. The scheme follows a cluster approach, establishing modern food processing units within well-defined agri/horticultural zones, the sources said.
Food parks include supply chain infrastructure like collection centres, processing units, and cold chains. They also include developed plots for entrepreneurs. By the end of 2023, 41 projects were approved, out of which 24 were operational.
The food processing industry in India is still in its early stages, contributing less than 10 per cent to the total food output. According to a Deloitte study on Level of Food Processing in India, processing levels were at 2.7 per cent for vegetables, 4.5 per cent for fruits, 15.4 per cent for fishery, 21.1 per cent for milk, and 34.2 per cent for meat in 2020-21.
A strong food processing industry is essential for our nation to tackle food and nutritional security issues, an official website says. Processed food offers convenience, extended shelf life, easy transport to remote areas, and improved accessibility, serving as a valuable source of nourishment. Additionally, it offers our farmers increased opportunities for better price realization and expanded selling prospects, it adds.
