Food processing: Nagaland’s funds increasing steadily

Dimapur, August 2: There has been a jump in funds for Nagaland’s food processing sector over the past three years even as the central government attempts to inject more impetus in said sector. While comparatively smaller to that of her northeastern sisters, the funds from Nagaland during 2014-2016 was 6.11 crore, a leap from the 2+ crore in 2013. The funds were under the scheme of National Mission on Food Processing of the government of India. The increase is consistent with the center’s development targets in food processing. The Ministry of Food Processing Industries is implementing a number of Central Sector Schemes for promotion and development of food processing sector in the country. The detailed guidelines of these schemes having the pattern of financial assistance, eligibility criteria, procedure for approval of projects etc. are available on the Ministry’s website. The year-wise targets for development of Food Processing Industries are not fixed, Minister of State for Food Processing Industries Sadhvi Niranjan Jyoti told the Lok Sabha on Tuesday. The Ministry is implementing Central Sector Schemes under which the financial assistance is provided directly to the beneficiaries. However, a Centrally Sponsored Scheme, namely, National Mission on Food Processing (NMFP) was implemented through States/ UTs with effect from 01.04.2012 to 31.03.2015. Food Processing Industry is one of the major employment intensive segments constituting 11.69 per cent of employment generated in all Registered Factory sector in 2013-14. According to the latest Annual Survey of Industries 2013-14, the total number of persons engaged in registered food processing sector is 17.41 lakh. During the last 5 years ending 2013-14, employment in registered food processing sector has been increasing at an Average Annual Growth Rate of 2.25 per cent. Unregistered food processing sector supports employment to 47.9 lakh workers as per the NSSO 67th Round, 2010-11. The data with regard to closed food processing industries in the country are not maintained by this Ministry. The Ministry is not implementing any scheme for revival of closed food processing industries. Factfile: Market Size The Indian food and grocery market is the world’s sixth largest, with retail contributing 70 per cent of the sales. Food has also been one of the largest segments in India’s retail sector, which was valued at US$ 490 billion in 2013@. The Indian food retail market is expected to reach Rs 61 lakh crore (US$ 894.98 billion) by 2020. The Indian food processing industry accounts for 32 per cent of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth. It contributes around 14 per cent of manufacturing Gross Domestic Product (GDP), 13 per cent of India’s exports and six per cent of total industrial investment. Indian food service industry is expected to reach US$ 78 billion by 2018. The Indian gourmet food market is currently valued at US$ 1.3 billion and is growing at a Compound Annual Growth Rate (CAGR) of 20 per cent. India’s organic food market is expected to increase by three times by 2020. The online food ordering business in India is in its nascent stage, but witnessing exponential growth. The organised food business in India is worth US$ 48 billion, of which food delivery is valued at US$ 15 billion. With online food delivery players like FoodPanda, Zomato,TinyOwl and Swiggy building scale through partnerships, the organised food business has a huge potential and a promising future. (Source:ibef.org)