Economic and Social

Development
 250

200

150

100

50

0
Mains Mains Mains Mains Mains Mains
2017 2018 2019 2020 2021 2022
Disaster Management 30 30 25 15 25 10
Internal Security 35 35 40 50 50 50
Science &Technology 35 40 35 35 40 30
Environment 25 35 40 35 35 50
Indian Economy 125 110 110 115 100 110
 125
100
75
50
25
0
Mains Mains Mains Mains Mains Mains
2017 2018 2019 2020 2021 2022
Infrastructure and Investment 10 0 0 30 15 25
Industrial Policy + Employment
15 15 0 0 0 15
+ External Sector
Budgeting and Taxation 15 10 25 15 10 0
Inclusive Growth + Banking and
35 25 25 20 25 20
Finance
Agriculture + Land Reforms +
50 60 60 50 50 50
Food Processing + PDS
 LAND REFORMS IN INDIA

Previous Year Mains Questions

1. Establish the relationship between land reform, agriculture productivity and elimination of poverty in Indian Economy.
Discussion the difficulty in designing and implementation of the agriculture friendly land reforms in India. (Mains 2013)

2. In view of the declining average size of land holdings in India which has made agriculture non-viable for a majority of
farmers, should contract farming and land leasing be promoted in agriculture? Critically evaluate the pros and cons. (Mains
2015)

3. How did land reforms in some parts of the country help to improve the socio-economic conditions of marginal and small
farmers ? (Mains 2021)
 Practice Questions:

1. The Legalisation of tenancy in agricultural land is the need of the hour and could prove to be a win-win situation for the
tenants and landowners. Discuss. (250 Words)

2. Critically analyze the role of Bhoodan and Gramdan Movement in bringing about Land Reforms in India. (150 Words)

3. Establish relationship between Fragmented land holdings and low-income level of farmers. Also, discuss various strategies
to address the problem of fragmented land holdings in India.

4. What are the major challenges in modernization of land records in India? What initiatives have been taken to address
these challenges (250 Words)

5. What do you mean by Conclusive Land Titling? Discuss the need for adoption of Conclusive Land Titling in India (250
Words)

6. Discuss with suitable illustrations the concept of Land Value Capture financing framework for the efficient management of
Land. (150 Words)

7. The Land Pooling Model is considered to be viable alternative to land acquisition in India. In the light of this statement,
discuss as to how this model is win-win situation for landowners and Government.(250 Words)
The Legalisation of tenancy in agricultural land is the need of the hour and could prove to be a win-win situation for the
tenants and landowners. Discuss

Suggested Answer Structure:

Introduction: Definition of Tenancy and link it to Land Reforms
Body:
• Present Status of Tenancy Reforms
• Why Tenancy should be legalised?
Conclusion: NITI Aayog’s Recommendations

Value Enrichment:
• Diagram incorporating benefits of Legalising Tenancy
• Case Studies of States which have legalised Tenancy
• Data related to Extent of Informal Tenancy in India
The Legalisation of tenancy in agricultural land is the need of the hour and could prove to be a win-win situation for the
tenants and landowners. Discuss

Introduction
Land Leasing enables the farmers to lease out their agricultural lands to other farmers, landless, sharecroppers, tenants leading
to agricultural efficiency, equity, and power reduction.

The land leasing has been an integral part of Land reforms in India. Most state governments have either legally banned or
imposed restrictions on agricultural land leasing. Only few states such as Tamil Nadu, West Bengal etc. have legalised Tenancy.
The Legalisation of tenancy in agricultural land is the need of the hour and could prove to be a win-win situation for the
tenants and landowners. Discuss

Body
Case for Legalisation of Land Tenancy:
Restrictive land leasing laws have proved to be anti-growth and anti-poor on account of following reasons:

Informal and Oral Tenancy – Tenants do not have access to institutional credit, insurance etc and are prone to exploitation.
Oral and informal tenancy discourages the tenants from making investment in land improvement.
Reduced the occupational mobility of many landowners who have interest and ability to take up employment outside
agriculture and yet are forced to stay in agriculture due to the fear of losing land if they lease out and migrate.
Higher Equity and Economic justice as the land leasing enables the poor to have access to land and improve their income
levels.

Conclusion
NITI Aayog has pointed out that “Lease farming is an economic necessity and not a symbol of feudalism, as it was thought
before”. Going forward, conducive ecosystem must be laid down for legalisation of tenancy- Adoption of Model Tenancy Act,
Modernisation of Land Records, Land Banks at village level etc.
How did land reforms in some parts of the country help to improve the socio-economic conditions of marginal
and small farmers ? (Mains 2021)
How did land reforms in some parts of the country help to improve the socio-economic conditions of marginal
and small farmers ? (10 Marks)

Suggested Answer Structure:

Introduction: Poor Socio-economic condition of Marginal and Small farmers.
Body:
Impact of Land Reforms on Marginal and Small Farmers
• Improvement in Socio-Economic Condition
• Reasons for Limited Impact
Conclusion: Need for Land Reforms 2.0

Value Enrichment:
• Examples of Successful Land Reforms in certain parts of India
• Diagram incorporating Relationship between Land Ownership and Low Socio-Economic Status.
• Data related to Small and Marginal Farmers
How did land reforms in some parts of the country help to improve the socio-economic conditions of marginal
and small farmers ? (10 Marks)

Introduction
Indian agriculture is dominated by small and marginal farmers (86%) accounting for 48% of agricultural land. These farmers
are caught in vicious trap due to fragmented landholdings.
How did land reforms in some parts of the country help to improve the socio-economic conditions of marginal
and small farmers ? (10 Marks)

Body
Successful Land Reforms in states such as Kerala and West Bengal (Operation Barga) have improved socio-economic condition
of marginal and small farmers:

Abolition of intermediaries has addressed historical injustices and move towards egalitarian society.
Land Ceiling Acts and movements such as Bhoodan and Gramdan have promoted equity in land ownership.
Tenancy reforms in states such as TN, AP, WB etc. have enabled marginal farmers to lease in/out land leading to consolidation
of land holdings, higher occupational mobility and enhanced agricultural productivity.
Promotion of Cooperative farming through Kudumbashree (Kerala) and Andhra Pradesh Mahila Samatha Society have
enabled farmers to reap benefits of higher economies of scale.
Land Records Modernization Programme has reduced litigations and facilitated access to institutional credit.

Land Reforms in other parts of India have not been very successful on account of Benami Transactions, loopholes in Land
ceiling acts, slow progress in Digitisation of land records etc.

Conclusion
Hence, going forward, India should focus on Land Reforms 2.0 through transfer of surplus government land, legalising land
Leasing, organising farmers into FPOs etc.
Critically analyze the role of Bhoodan and Gramdan Movement in bringing about Land Reforms in India. (150 Words)

Suggested Answer Structure:

Introduction: Origin and Philosophy behind Bhoodan
Body:
• Achievements- Land Reforms through Social persuasion; Kept alive Gandhi’s ideals etc.
• Problems
Conclusion: Limited success in land reforms but stimulated political activity by the peasants and created a
favorable atmosphere for land reforms.
Establish relationship between Fragmented land holdings and low-income level of farmers. Also, discuss various strategies
to address the problem of fragmented land holdings in India. (250 Words)
Establish relationship between Fragmented land holdings and low-income level of farmers. Also, discuss various
strategies to address the problem of fragmented land holdings in India. (250 Words)

Suggested Answer Structure:

Introduction: Present Status of Fragmented land holdings
Body:
How Fragmented land holdings has led to low-income level of Farmers?
• Lack of access to inputs. Substantiate with data related to share of small and marginal farmers in
agricultural credit.
• Poor Productivity- List the Reasons
• Low Prices- List the Reasons

Strategies to address problem of Fragmented land holdings

Conclusion: Implementation of these strategies critical to doubling of farmers’ income

 LAND RECORD MANAGEMENT IN INDIA

Record of Rights
Survey Record Sale Deed
(RoR)
• Details about Owner, Type and • Map of the Village with unique • Document showing Transfer of
Size of Land, Crops grown, Survey Number of every plot of Property from one Individual
Nature of Soil, Liabilities, land. to another
Tenancy • Maintained by the Survey • Signed Before Registrar on
• Maintained by Revenue Department payment of Stamp Duty
Department Officials such as • Unique Survey Number
Patwaris, Talathis etc. provides details of plot.
SAMPLE RECORD OF RIGHTS SAMPLE SURVEY MAP
 Presumptive Titling System

Seller Buyer

Transfer of Property Act: Transfer of right over property through Document.

Registration Act: Registration of Documents (Sale Deed); No Registration of Title
Definition: Ownership of land established indirectly through the sale deed without the Government guaranteeing Land
Title. Person possessing Sale deed is presumed to be the owner.
Mechanism:
• Onus on the buyer to ensure that the seller is indeed the owner of the land and land is not under dispute.
• Buyer hires Lawyer to find out details about the past transactions on the property.
• Registration of Document (Sale deed) and not of the Title
• Manual “Mutation”- Buyer needs to file application to update his name in the Record of Rights (RoR)
• Disputes need to be settled with the Title holder.

Problems with Presumptive Land Titling System:

• Risky
• Prone to litigations
• Underdeveloped Land Market
• Hinders development due to higher land disputes
 Conclusive Titling System

Seller Buyer

Transfer of property accompanied by Government guaranteeing Land Title to buyer

Definition: Ownership of land established directly through the Land Title given by the Government. There is no
presumption of ownership based upon sale deed.
Mechanism:
• Onus on the Government to ensure that the seller is indeed the owner of the land.
• Registration of Title in the name of Buyer
• Automatic “Mutation”- Buyer’s name automatically gets updated in the Record of Rights (RoR)
• Disputes need to be settled with the Government directly
 Pillars of Conclusive Titling System

Curtain Mirror
Single Window Title Insurance
Principle Principle
• Single Window for • Record of Title is
Maintenance of True and Final • Textual Records • Government
Land Records and Survey Maps compensates the
• Reference to Past are in perfect sync Title holder in case
• Includes Transactions not of any disputes
Registration, necessary
Updation of
Record of Rights • Mutation is
and Survey Maps automatic
etc.
 Presumptive Titling Conclusive Titling
Ownership established indirectly through Registration of Ownership established directly through Title given by the
Document (Sale Deed) Government
Registration of Document and not of the title Registration of title
Burden on the buyer to check the past ownership of the Burden on the Government to check the past ownership of
property the property
Prone to litigation Not prone to litigation
Disputes need to be settled with the title holder Disputes need to be settled with the Government itself
 Initiative
Digital India National Land
Records Modernization Program
(NLRMP)
National Generic Document
Registration System (NGDRS)
Integrated Land Management
Information system (ILIMS)
Unique Land Parcel
Identification Number (ULPIN)
SVAMITVA Scheme
State Specific Initiatives
Details
Objective: modern, comprehensive and transparent land records management system in the country
with the aim to implement the conclusive land-titling system with title guarantee
Scope of the Programme
• Computerization of land records which includes Digitization of cadastral maps, Integration of textual
and spatial data, Data centres at Tehsil, District and State level
• Survey/resurvey and updating of the survey records using the following modern technology options.
• Computerization of Registration through Computerization of the sub-registrar‘s offices (SRO) and
Scanning & preservation of old documents.
• Training & capacity building of the officials
• Legal Changes through Amendments to The Registration Act, 1908 and Model law for conclusive
Titling
Implementation: Department of Land Resources (DoLR), Ministry of Rural Development.
‘One Nation One Software’ for registration of documents & properties.
Address the diversity across the states in terms of languages, processes and formats in the process of
registration.
Online single window access to the landowners. Also focusses on integration of land records with data of
the Banks and Integration of Aadhaar with Land records
Provide Unique 14-digit Alphanumeric ID for all the land parcels in India. ("Aadhaar for the Land").
Establishment of clear ownership of property in rural inhabited (Abadi) areas, by mapping of land parcels
using drone technology and providing ‘Record of Rights’ to village household owners with issuance of
legal ownership cards (Property cards/Title deeds) to the property owners.
Bhoomi (Karnataka); Mee-Seva (Andhra Pradesh)
 Roadmap for Conclusive Land Titling (Report of the Expert Committee on "Land Titling- A Road Map")

Set up National Land Titling Authority

Introduction of legal changes: Presently, there is no law empowering the Government to create a record of titles which
would be conclusive. For example, the titling cannot operate under the present Registration Act which provides for
registration of deeds and not the titles.

Computerization of land records which includes Digitization of cadastral maps, Integration of textual and spatial data, Data
centres at Tehsil, District and State level

Survey/resurvey and updating of the survey records using the following modern technology options.

Computerization of Registration through Computerization of the sub-registrar‘s offices (SRO) and Scanning & preservation
of old documents.

Training & capacity building of the officials

What are the major challenges in modernization of land records in India? What initiatives have been taken to address these
challenges (250 Words)

Suggested Answer Structure:

Introduction: Mention about importance of Modern, comprehensive and transparent land records such as
Reduce land disputes, facilitate credit, simplify land acquisition and promote development

Body:

• Mention about Challenges of Modernisation of Land Records in bullet format.

• Enumerate the initiatives taken

Conclusion: Modernisation of land Records critical for doubling farmer’s income and to move towards
Conclusive Land Titling System.
Discuss with suitable illustrations the concept of Land Value Capture financing framework for the efficient management
of Land. (150 Words)
 Tools for Land Value Capture Financing Framework

Land Value Tax Impact Fee/Betterment Levy as one-time

upfront charge for appreciation in real
Fees for converting Agricultural Land into estate prices
Property Tax linked to the value of
Property. Non-Agricultural Land
Higher the value of Property, higher the Example: Hyderabad’s Fee on Projects
tax located on Outer Ring Road

Premium on relaxation of Floor Space Land Pooling

Index
Vacant Land Tax
Example: Magarpatta, Amravati,
Example: Hyderabad and Mumbai Ahmedabad etc.
 LAND VALUE CAPTURE FINANCING FRAMEWORK

Meaning: Based on the principle that private land and buildings benefit from public investments in infrastructure and policy decisions of
Governments (eg. change of land use or FSI). Appropriate VCF tools can be deployed to capture a part of the increment in value of land and
buildings. In turn, these can be used to fund projects being set up for the public by the Central/State Governments and ULBs.

Importance: Generates a virtuous cycle in which value is created, realized and captured, and used again for project investment.

Tools:
• Land Value Tax: Tax to be paid is linked to the value of the land/property. Higher the value, higher would be the tax.
• Fees for changing land use (agricultural to non-agricultural)
• Impact fee/ Betterment levy – one-time upfront charge on the land value gain caused by public infrastructure investment.
• Premium on relaxation of rules or additional FSI/FAR – widely used in States such as Maharashtra, Karnataka, Gujarat, Tamil Nadu, etc. to
allow for additional development rights beyond the permissible limits in the State Town Planning Laws and Regulations.
• Vacant Land Tax (VLT) – is applicable on those landowners who have not yet initiated construction on their lands.
• Land pooling System (LPS) – is a form of land procurement where all land parcels in an area are pooled, converted into a layout,
infrastructure developed, and a share of the land, in proportion to original ownership, returned as reconstituted parcels.

Potential: Used for the development of high-speed rail projects and expansion of railway network, setting up of Special Economic Zones (SEZs)
and industrial corridors such as the Delhi Mumbai Industrial Corridor (DMIC), Sagarmala projects etc.

Important case studies:

• Impact fee in Hyderabad along outer ring road
• Land pooling in Ahmedabad
The Land Pooling Model is considered to be viable alternative to land acquisition in India. In the light of this statement,
discuss as to how this model is win-win situation for landowners and Government.(250 Words)
The Land Pooling Model is considered to be viable alternative to land acquisition in India. In the light of this statement,
discuss as to how this model is win-win situation for landowners and Government. (250 Words)

Suggested Answer Structure:

Introduction: Define Land Pooling and substantiate the statement given in the question.
Land pooling System Model is a form of land procurement where all land parcels in an area are pooled, infrastructure
developed, and a share of the land, in proportion to original ownership, returned to landowners. It is more democratic,
participatory and inclusive in comparison to Land Acquisition.

Body:
Present Status of Land Pooling- Adoption by few states with examples such as PM-UDAY, Magarpatta Township,
Amravati etc.

Write about Benefits for Landowners and Government in bullet points

Briefly touch upon the challenges such as limited adoption by states, lack of clear legal framework etc.

Conclusion: Land Pooling model- integral part of Land Reforms 2.0; Need to address the same above challenges
to reap full potential of Land pooling model.
The land reforms in India remain unfinished task. In the light of this statement, discuss the reforms which must be introduced
as part of Land Reforms 2.0. (15 Marks, 250 Words)

Existing Problems Land Reforms 2.0

Limited Success of Land Reforms barring few states such as • Create Land Pool from unutilized Govt. lands, Waste land,
West Bengal (Operation Barga), Kerala (Kudumbashree) etc. Surplus ceiling Lands, Bhoodan Lands etc.
Landlessness among Rural households (56%- SECC 2011), • Distribute land among landless Rural households and
SCs/STs SCs/STs.
Growing Feminization of Agriculture (30%) without adequate • Distribution of land to women from the land pool.
access to land ownership • Promote collective farming by women through land leasing
(Kudumbashree Model)
Poor progress on modernization of land records leading to • Complete Modernization of Land Records.
increased litigations, lack of access to credit and hinder • Move from Presumptive Titling to Conclusive Titling.
development.
Fragmented Lands and Restrictive Tenancy laws in states Encourage states to adopt Model bill on Land Leasing.
Set up Land Bank.
Increased demand for land accompanied by conflict prone Adopt newer models for infrastructure development such
Land Acquisition as Land Pooling Model
• Land- State List; Acquisition and Requisition of Set up National Land Council on the lines of GST Council
Property- Concurrent list for
• Lack of Cooperation between Centre and States in Efficient management of land.
effective management of land
 Food Processing Industries

Syllabus: Food processing and related industries in India- scope and significance, location, upstream and downstream
requirements, supply chain management.

Sl. No Year Previous Year Mains Questions

1 2022 Elaborate the scope and significance of the food processing industry in India
2 2020 What are the challenges and opportunities of food processing sector in the country? How can
income of the farmers be substantially increased by encouraging food processing?
3 2018 Examine the role of supermarkets in supply chain management of fruits, vegetables and food items.
How do they eliminate number of intermediaries?
4 2017 What are the reasons for poor acceptance of cost-effective small processing unit? How the food
processing unit will be helpful to uplift the socio-economic status of poor farmers?
5 2015 What are the impediments in marketing and supply chain management in Food processing industry
in India? Can e-commerce help in overcoming these bottlenecks?
 Food Processing Industries
Syllabus: Food processing and related industries in India- scope and significance, location, upstream and downstream
requirements, supply chain management.

Sl. No Practice Questions Dimension

1 The Rapid growth of food processing Industries in India is necessary as well as inevitable. Significance of Food
Discuss Processing Industries
2 Examine the problems faced by the Food Processing Industries in their backward and forward Challenges faced by Micro
linkages. Processing Industries
3 What are the challenges faced by micro-food enterprises in India? How are these challenges Specific Challenges faced by
sought to be addressed by Prime Minister Formalisation of Micro enterprises? Micro Food Enterprises and
relevance of PM FME Scheme
4 Examine the importance of organised retail in the development of food processing Industries. Supply Chain Management
Illustrate with help of examples Role of Organized Retail
5 What are the demand and supply side drivers for growth of Food processing sector in India? • Drivers of Food Processing
Also, highlight various initiatives taken by the Government for the growth of this sector. (10 Industries
Marks, 150 Words) • Government Initiatives
6 Critically examine the role of Mega Food Parks in boosting Food Processing Industries in India. • Critical Analysis of Mega
Food
7 What are upstream and downstream requirements in Food Processing Industries? What • Upstream and
initiatives has the Government taken to fulfill these requirements. Downstream
Requirements

Size and Growth of India’s
Food Processing Industry
Contribution to Economy
Contribution to Employment
Classification of Industries
Overall Processing of
Perishable Products in India
Post Harvest losses
Share in India’s Agricultural
Exports
Answer Enrichment Points
Factsheet on Food Processing Industries in India
• 2.24 Lakh Crores
• Average Annual Growth Rate (AAGR) of around 11 per cent as compared to around 4 per
cent in Agriculture (at 2011-12 prices) in the last 5 years.
• 10% of GVA in Manufacturing
• 11% of GVA in Agriculture
11%; Largest share in the registered Manufacturing sector in the country
Organised Sector: accounts for 25% of employment and contributes around 90% of output.
Unorganised sector: 25 lakh micro food processing enterprises. Accounts for 75% of
employment (a third of which are women) and 10% of output.
Only 10%. Other countries quite higher- (USA (80%), France (70%), and Thailand (30%)
Rs 92,000 crores. 25 to 30 % of fruit and vegetables and 8 to 10 % of food grains are wasted
annually.
The share of processed food in our export basket comprises is only 16%. While the share of
primary commodities is nearly 84%
 Answer Enrichment Points
Definition: Food processing is a technique of manufacturing and preserving food substances in an effective manner with a
view to enhance their shelf life; improve quality as well as make them functionally more useful.

Significance:
• A well-developed food processing sector with higher level of processing helps in the reduction of wastage, improves
value addition, promotes crop diversification, ensures better return to the farmers, promotes employment as well as
increases export earnings.

• Two major policy announcements i.e., Doubling farmers’ income by 2022 and Agriculture Export Policy, 2018 for doubling
agricultural exports (by 2024) hold enormous significance for the food processing sector.

• Provides vital linkages and synergies between the two pillars of the economy, i.e., agriculture and industry.

Committee on Doubling Farmers’ Income: Secondary Agriculture, which also constitutes Food processing Industries in the
rural areas has huge potential in doubling farmers’ income.

Draft National Food Processing Policy: Achieve a minimum of six-fold increase in investment over the next fifteen years
ending 2034-35 for enabling a significant increase in output and employment.

Agriculture Export Policy, 2018: Boost Bake in India on lines of Make in India and Increase share of Value-added agri-
products in the export basket.
 Answer Enrichment Points
Important Case Studies on Food processing Industries
Case Study 1: PepsiCo and Government of Punjab
• Pepsi imports FCOJ (Frozen Concentrate of Orange Juice) which is a raw material for Tropicana juice
• Pepsi has entered contract farming with farmers and introduced world famous California oranges.

Case Study 2: Mother Dairy

Mother Dairy has integrated backward and forward linkages by associating with the farmers and selling fruits and vegetables through the
SAFAL outlets.

Case Study 3: Inadequate availability of processable variety of raw materials

Potato: At present, the potatoes grown in India tend to have high sugar content and lack uniform size and length. Pepsi has developed its
own variety for Lays in Punjab
Mango: Despite having 1500 varieties of mangoes grown in India, only 3-4 varieties are available at prices which render processing to be
profitable. Due to the high demand for Alphonso in fresh form; it is expensive for processing into pulp.
Orange: High bitterness levels.

Case Study 4: Innovative Marketing

Zespri's success in marketing of kiwifruit: Cooperative structure - owned by 2500 owner producers

Case Study 5: Saguna Foods

Among the Top 10 Poultry Companies; Contract farming with the farmers

Case Study 6: Patanjali

Second Largest Food processing Industry after HUL. Vertical Integration: procurement of raw materials to sale of final product to customer.
The Rapid growth of food processing Industries in India is necessary as well as inevitable. Discuss (10 Marks, 150 Words)

Suggested Answer Structure:

Introduction:
(a) Definition of Food processing Industry or
(b) Significance of Food processing Industry or
(c) Important facts related to Food processing Industry in India

Body:
Necessity and Benefits associated with Food processing Industries

Conclusion:
Need to address challenges to realize full potential or
Government initiatives such as PM Kisan Sampada Yojana, PMFME etc.

Answer Enrichment
• Data related to growth of Food processing Industries in India
• Use of case studies to substantiate benefits associated with Food processing Industries
 Supply Chain of Food Processing Industries

Marketing
Aggregation,
Procurement Distribution
Storage and
of Raw Production through Consumer
Transportation
Materials Wholesalers
and Retailers
What are the challenges faced by micro-food enterprises in India? How are these challenges sought to be addressed by
Prime Minister Formalisation of Micro enterprises Scheme? (10 Marks, 150 Words)
What are the challenges faced by micro-food enterprises in India? How are these challenges sought to be addressed by
Prime Minister Formalisation of Micro enterprises Scheme? (10 Marks, 150 Words)

Suggested Answer Structure:

Introduction:
Present Status of Micro Food enterprises in India

Body:
• Challenges faced by Micro-enterprises in Bullet Points
• How PM FME addresses these challenges?
Conclusion:
Significance of PM FME- Potential to enhance competitiveness of micro enterprises, strengthen “Vocal for Local”, boost
secondary agriculture and double farmers’ income

Answer Enrichment
• Data related to contribution of Micro Food enterprises
• Significance of Strategy of One District One Product (ODOP)
What are the demand and supply side drivers for growth of Food processing sector in India? Also, highlight various initiatives
taken by the Government for the growth of this sector. (10 Marks, 150 Words)

Food processing is a sunrise sector registering growth rate of 11% as compared to around 4% in Agriculture in last 5 years.
The rapid growth of sector can be attributed to:
Demand-side
 Increasing nuclear families and working
women
 Growth of organised retail
 Rise in disposable incomes
 Changing Consumer Taste and Preferences
 Demand for Nutraceuticals food
Supply-side
 Favourable climate for agriculture; wide
variety of crops
 Large livestock base aids dairy and meat
processing sector
 Hyperlocal delivery models
 Initiatives- Mega Food parks, Operation
Greens.
What are the demand and supply side drivers for growth of Food processing sector in India? Also, highlight various initiatives
taken by the Government for the growth of this sector. (10 Marks, 150 Words)

Initiatives to address above challenges:

Schemes:
 Pradhan Mantri Kisan Sampada Yojana (PMKSY)- Mega Food parks, cold chain infrastructure, Agro-processing clusters
etc.
 PM formalisation of Micro food processing Industries (PMFME)- financial, technical and business support.
 Operation Greens to reduce post-harvest losses
 PLI Scheme to create global champions
Credit: Priority sector status; Special fund under NABARD.
100% FDI
Skill development: National Institute of Food technology Entrepreneurship and Management and India institute of Food
processing Technology.
Food safety standards: “One Nation, One Food Law”.
Marketing and branding support to FPOs/SHGs/Cooperatives.

Food processing sector can reduce post-harvest losses, promote crop diversification, double farmers’ income and boost
employment. Hence, government’s initiatives should be implemented efficiently to reap full potential.
 Mega Food Parks
• Component under PM Kisan Sampada Yojana • Integrated package to establish Backward and Forward linkages
• Hub and Spoke Model • Brings together Farmers, Processors and Retailers on single
• Cluster based approach platform
 Mega Food Parks

Collection Centres and Central Processing Financial Assistance

Primary Processing Centres (CPCs) Capital grant to the Project
Centres Core Infra: Ripening Developers
Cleaning, Sorting, Grading, Chambers, Controlled Ex: Future Group Food Park
Packing, Mobile Reefer Atmosphere Chambers, in Tumkur
Vans, Pre-cooling Chambers Storage, Food Testing
Laboratories Patanjali Herbal Food Park
in Haridwar
Non-Core Infra: Factory
Buildings, Roads, water,
Electricity etc.
 Upstream Requirements
• Legal Framework for Contract Farming
• Access to high Quality Processable Varieties
• Direct Procurement from the farmers
• Aggregation of Farm Produce
• Primary Processing such as Sorting, grading, Packaging
• Reefer Vans for Transportation
• Cold Chain Infrastructure
Downstream Requirements
• Market Research to understand changing consumer
preferences and demand
• Well Developed Organized Retail
• Food Safety and Hygiene standards
• Branding and Marketing
• Growth of Private Labelling
• Higher Demand among consumers.

Vertical Integration:
Company expanding its operations into both Upstream and downstream activities
Example: Mother Dairy; Reliance Fresh; More Stores etc.