Mega food parks could have been a game changer for the food processing sector in India, however they have not been able to achieve their potential so far. Discuss.
Mega food parks are based on hub and spoke model, integrating farms with food processing structures to provide vital linkages.
Considered game changer:
- Better price at farm gates.
- Investment in cold storage, transportation, warehousing.
- Better marketing options due to branding, retailing, export.
- Value addition at food processing plants.
- Generation of infrastructure, employment for regional development.
Remains stunted:
- Legal hurdles-essential commodities act discouraging investment in cold storage, APMC hegemony discouraging direct contacts.
- Infrastructural bottlenecks and huge logistics cost-lack of metalled roads.
- Cropping pattern – subsistence agriculture, no standardised quality products, dominance of cereal food crops.
- Economic – unviable locations due to need of linkage with industry for marketing.
A renewed push is required for investments in technology, allowing participation of FPO, SHGs, product linked incentive and marketing.
Topics: GS-III: Storage Transport and Marketing of Agricultural Produce Related Issues