Great opportunity for startups in food processing sector

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Great opportunity for startups in food
processing sector
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• For initials we can see the turnover of
  Patanjali, which was not known to anybody and
  started as an agro based industry but today its
  shares are marketized owing to its success in the
  sector
•  
• Indian food industry is estimated to grow from
  US 181 billion to US 318 billion by 2020.
• Financial Aid up to Rs.5 Crores for startups is
  provided by government.
•  
• Each nation has his own driven economy, for India
  agriculture sector has always been significant
  sector. With GDP contribution of 15, agriculture
  is a key economic driver in India. The interest
  for food and agricultural products is changing in
  extraordinary ways.

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• There is huge potential to grow in Indian food
  processing industry, considering the still
  growing levels of handling Opportunity to build
  business around meeting consumer needs.
• Despite the fact that India's agricultural
  production base is reasonably strong, wastage of
  agricultural produce is sizeable. The food
  processing industry in India is an emerging
  sector changing the trend from Sustenance to
  Market Oriented. Accessibility of raw materials,
  changing ways of life and relaxation in policies
  has given a considerable push to the industry's
  growth.
• In a bid to double the farmers income by 2022,
  the Government of India, is progressively
  searching for ways to support agricultural
  production, food processing and marketing avenues
  through the integration of latest technologies
  and developments thus creating a huge scope for
  food and agritech startups in the country.

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• Indian Scenario 
• According to Inc42 Data labs, the total funding
  in Agritech startups in India has grown from
  46.1 Mn 2017 to 66.6 Mn in 2018 which gives us
  an idea of the developing hunger of investors and
  their faith in the capability of agritech in
  India it also exhibits the businesses
  opportunities in the agriculture sector for
  agro-based businesses in the country.
• There is tremendous chance for startups in the
  food processing industry towards creating supply
  chain solutions, packaging, processing
  technology, equipment, storage and logistics,
  food safety, marketing, e-commerce based B2B/B2C
  models, distribution and retail.
• The sector has the ability to transform the agri
  economy of the country by linking farmers to the
  markets, developing efficient supply chains,
  reducing massive agri-produce wastage,
  encouraging sustainable agriculture, allowing
  value addition to the manufacturer of packaged
  food, creating employment opportunities, driving
  investment and managing supply side and food
  inflation.
• The demand for hygienic, healthy, safe, and
  convenience driven food is slated to grow at an
  even more significant rate in the future

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• Government schemes
• Scheme for Agro-Marine Processing and
  Development of Agro-Processing Clusters (SAMPADA)
• Sampada scheme is a funding assistance scheme for
  Agro-Marine Processing and Development of
  Agro-Processing Clusters, approved by Government
  of India (GOI). With a budget of Rs. 6000 Crores,
  It is expected to leverage the investment of Rs.
  31,400 crore, handling of 334 lakh MT
  agro-produce esteeming Rs. 1,04,125 crore,
  advantage 20 lakh farmers and create 5,30,500
  direct/ indirect jobs in the country by the year
  2019-20.
• The main objective of this scheme is reducing
  food wastage and doubling farmers income.
  SAMPADA Yojana is a comprehensive package which
  will result in creation of huge employment
  opportunities especially in the rural areas,
  reducing wastage of agricultural produce,
  increasing the processing level and enhancing the
  export of the processed foods.
• It incorporates ongoing schemes of the Ministry
  of Mega Food Parks, Integrated Cold Chain and
  Value Addition Infrastructure, Food Safety and
  Quality Assurance Infrastructure, etc.
•  

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• Financial Benefits
• There are numerous schemes are covered by
  government of India under SAMPADA,
• Under scheme for creation/ expansion of food
  processing and preservation capacities- financial
  assistance to food processing units in the form
  of gran in aid
• 35 of the total cost of the plant machinery
  technical civil works subject to maximum of Rs-5
  Crores in general areas.
• 50 of the total cost of the plant machinery
  technical civil works subject to maximum of Rs-5
  Crores in north east states difficult areas.
• These schemes will be implemented through,
  central state PSUs/ joint ventures /Farmers
  producers organizations/NGOs / cooperatives/ Pvt
  Ltd Companies/ individual Proprietorship firms
  engaged in establishment / up gradation of food
  processing units.

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• Summary
• These days, with improving supply chain models,
  the Make in India initiative, organizing the food
  industry in India, and implementation of
  encouraging policies, Govt is trying hard to
  boost the food processing industry for providing
  a better income for the farmers and creating
  jobs.
• In this case, it will be easier for the
  entrepreneurs to set up a food processing unit
  with the help of SAMPADA Scheme.
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• Websites Browsed
• https//www.indianweb2.com/2018/08/09/what-does-th
  e-food-industry-in-india-2018-look-like/
• https//nextwhatbusiness.com/sampada-scheme-food-p
  rocessing-sector/
• https//www.smeventure.com/opportunities-agro-base
  d-food-processing-business-journey-past-future/
• https//yourstory.com/2019/03/faas-agritech-startu
  p-farmers-profitable-6zmc83lyci
• https//www.downtoearth.org.in/news/food/food-proc
  essing-allocation-doubled-but-previous-funds-remai
  n-unused-59603
• http//mofpi.nic.in/Schemes/pradhan-mantri-kisan-s
  ampada-yojana

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