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GS Paper: GS3-10.Food processing and related industries in India-scope’ and significance, location, upstream and downstream requirements, supply chain management

  • National Mission on Edible Oil-Oil Palm (NMEO-OP)

    The Centre has increased the financial outlay for the National Mission on Edible Oil-Oil Palm (NMEO-OP).

    About NMEO-OP

    • National Mission on Oilseeds and Oil Palm (NMOOP) was implemented during the 12th Five Year Plan, to expand the oil palm areas and increase the production of edible oils.
    • It was later merged with the National Food Security Mission.
    • NMEO-OP aims to resolve to allow India to be independent or self-reliant in edible oil production.
    • Through this mission, more than ₹11,000 crores will be invested in the edible oil ecosystem.
    • The government will ensure that farmers get all the needed facilities, from quality seeds to technology.
    • Along with promoting the cultivation of oil palm, this mission will also expand the cultivation of our other traditional oilseed crops.

    Why such a mission?

    • India is one of the major oilseeds growers and importers of edible oils.
    • India’s vegetable oil economy is the world’s fourth-largest after the USA, China & Brazil.
    • The oilseed accounts for 13% of the Gross Cropped Area, 3% of the Gross National Product, and 10% value of all agricultural commodities.
    • During the last few years, the domestic consumption of edible oils has increased substantially and has touched the level of 18.90 million tonnes in 2011-12 and is likely to increase further.
    • A substantial portion of our requirement of edible oil is met through the import of palm oil from Indonesia and Malaysia.
    • It is, therefore, necessary to exploit domestic resources to maximize production to ensure edible oil security for the country.

    Alternative sources

    • Oil Palm is comparatively a new crop in India and is the highest vegetable oil yielding perennial crop.
    • With quality planting materials, irrigation, and proper management, there is a potential of achieving 20-30 MT Fresh Fruit Bunches (FFBs) per ha after attaining the age of 5 years.
    • Therefore, there is an urgent need to intensify efforts for area expansion under oil palm to enhance palm oil production in the country.
    • Tree Borne Oilseeds (TBOs), like Sal, Mahua, Simarouba, kokum, Olive, Karanja, Jatropha, Neem, Jojoba, Wild Apricot, Walnut, tung etc. are cultivated/grown in the country under different agro-climatic conditions.
    • These TBOs are also good sources of vegetable oil and therefore need to be supported for cultivation.

    Try answering this PYQ:

    Q.An objective of the National Food Security Mission is to increase the production of certain crops through area expansion and productivity enhancement in a sustainable manner in the identified districts of the country. What are those crops?

    (a) Rice and wheat only

    (b) Rice, wheat, and pulses only

    (c) Rice, wheat, pulses, and oilseeds only

    (d) Rice, wheat, pulses, oilseeds, and vegetables

     

    Post your answers here: [wpdiscuz-feedback id=”7x9t7q32mz” question=”Please leave a feedback on this” opened=”1″][/wpdiscuz-feedback]

  • [pib] Operation Greens Scheme

    The Union Minister of Food Processing Industries has provided useful information regarding the Op Greens Scheme.

    Operation Greens Scheme

    • Ministry of Food Processing Industries launched the Operation Greens scheme in November, 2018.
    • The scheme aims for integrated development of the Tomato, Onion, and Potato (TOP) value chain.
    • It aims to promote Farmer Producers Organizations (FPOs), agri-logistics, processing facilities and value addition etc. in identified production clusters.
    • Under the scheme, state-wise funds are not allocated as the scheme is demand-driven and projects are approved as per scheme guidelines on the basis of applications received for setting up of projects in eligible production clusters.

    Objectives:

    • To enhance value realization of TOP farmers
    • Reduction in post-harvest losses
    • Price stabilization for producers and consumers and
    • Increase in food processing capacities and value addition etc.

    Key provisions

    • Short term intervention by way of providing transportation and storage subsidy @ 50% and
    • long term intervention through value addition projects in identified production clusters with Grant-in-aid @ 35% to 70% of eligible project cost subject to maximum of Rs. 50 crore per project

  • [pib] One District One Focus Product Scheme

    ODOFP programme

    • The ODOFP programme cover products of agriculture and allied sectors for 728 districts of the country.
    • The products have been identified from agricultural, horticultural, animal, poultry, milk, fisheries, aquaculture, marine sectors across the country.
    • These identified products will be supported under the PM-FME scheme of the Ministry of Food Processing Industries, which provides incentives to promoters and micro-enterprises
    • This scheme is being implemented for a period of five years from 2020-21 to 2024-25.
    • The scheme adopts One District One Product (ODOP) approach to reap the benefits of scale in terms of procurement of inputs, availing common services and marketing of products.

    About ODOP

    • The ODOP scheme aims to identify one product per district based on the potential and strength of a district and national priorities.
    • A cluster for that product will be developed in the district and market linkage will be provided for that.
    • It is operationally merged with the ‘Districts as Export Hub’ initiative implemented by the Director-General of Foreign Trade (DGFT), Department of Commerce.
    • Under the initial phase of the ODOP programme, 106 Products have been identified from 103 districts across 27 States.

    Back2Basics: PMFME Scheme

    • A centrally sponsored scheme that aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry.
    • It aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector,
    • It further aims to promote formalization of the sector and provide support to Farmer Producer Organizations, Self Help Groups, and Producers Cooperatives along their entire value chain.
    • The scheme envisions directly assist the 2,00,000 micro food processing units in providing financial, technical, and business support for the up-gradation of existing micro food processing enterprises.

  • [pib] PMFME Scheme

    The centrally sponsored Pradhan Mantri Formalization of Micro food processing Enterprises (PMFME) Scheme, launched under the Aatmanirbhar Bharat Abhiyan marks the completion of its one year.

    PMFME Scheme

    • The PMFME Scheme is a centrally sponsored scheme that aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry.
    • It aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector,
    • It further aims to promote formalization of the sector and provide support to Farmer Producer Organizations, Self Help Groups, and Producers Cooperatives along their entire value chain.
    • The scheme envisions to directly assist the 2,00,000 micro food processing units for providing financial, technical, and business support for upgradation of existing micro food processing enterprises.

    Major component of the scheme

    One District One Product

    • Under the One District One Product (ODOP) component of the PMFME Scheme, the Ministry of Food Processing Industries approved ODOP for 137 unique products.
    • The GIS ODOP digital map of India has been launched to provide details of ODOP products of all the States and UTs.
    • The digital map also has indicators for Tribal, SC, ST, and aspirational districts.
    • It will enable stakeholders to make concerted efforts for its value chain development.

  • FSSAI recognizes new precision Iodine Value Analyser

    The Council of Scientific and Industrial Research-Central Scientific Instruments Organization (CSIR-CSIO) has developed and transferred the technology of Precision Iodine Value Analyzer (PIVA).

    What is Precision Iodine Value Analyzer?

    • It is an instrument for the measurement of the degree of unsaturation (iodine value) in vegetable oils.
    • This indigenous food testing equipment was recognized by the Food Safety and Standards Authority of India (FSSAI) on World Food Safety Day on June 7, 2021.
    • It has applications in oil extraction units, quality control and assurance labs, food regulatory authorities, soaps and cosmetics, bakeries, meat industry, paint industry, biodiesel analysis, and charcoal industry.
    • It is also useful in determining adulteration in edible oils and fats.

    Measuring iodine value

    • Iodine value is conventionally determined using manual titration and a few analytical instruments based on automated titration.
    • However, these methods take a longer time to analyze, are costly, and use toxic chemicals.
    • Researchers at CSIR-CSIO developed a rapid analysis technique that takes just three minutes to carry out the same analysis.
    • Currently, PIVA has been calibrated and tested for coconut, sunflower, mustard, palm, rice bran, soybean, groundnut, olive oil, and ghee.
    • This new development is a part of the ongoing effort to strengthen the food testing capabilities by introducing quick and advanced food testing kits.

  • Mustard oil blending is now banned

    The Food Safety and Standards Authority of India had decided this on March 31. This would end the practice to add other edible oil (like palms, rice bran, etc) to mustard oil.

    Why such move?

    • This is good news for mustard farmers whose fortunes were adversely hit as up to a fifth of mustard oil volume could earlier be blends of other oils.
    • But why did India start the practice in the first place? And how has it affected consumer health?

    Answer this question from CSP 2018:

    Q.Consider the following statements:

    1. The quantity of imported edible oils is more than the domestic production of edible oils in the last five years.
    2. The Government does not impose any customs duty on all the imported edible oils as a special case.

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

    Why did the blending begin?

    • The Union health ministry had allowed blending in edible vegetable oil in a notification in 1990.
    • In 1998, Delhi and other north Indian states witnessed the dropsy epidemic — a disease that caused swelling in the body due to the build-up of fluid in tissues.
    • At least 60 people died and 3,000 were hospitalized in the national capital.
    • Researchers believed the consumption of mustard oil caused the disease.

    Adulteration is hazardous

    • Upon investigation, it was found to be adulterated with Argemone Mexicana, a kind of weed that grows with yellow flowers.
    • The adulteration, however, was highly suspicious: While mustard is a rabi crop that is cultivated in the winters, Argemone Mexicana grows in April-May.
    • This meant that the possibility of mixing mustard seeds with that Argemone mexicana was rare.
    • The suspicious adulteration stoked fear among the masses.  It started a campaign against the consumption of oil.
    • Several studies have found mustard oil unsafe for consumption.

    The 1990 decision

    • Experts have claimed that the blending of mustard oil was not only dangerous to health but also adversely impacted mustard farming.
    • Some groups have also flagged the blending of refined oil.
    • Following the Union health ministry’s 1990 notification allowing for the blending of edible vegetable oil, the FSSAI rolled out regulations in the regard in 2006.
    • Producers and other companies involved in blending were regularised through the Agriculture Produce (Grading and Marking) Act (AGMARK).
    • It also made it mandatory to write the kind of oil used for blending over the packet.
    • The companies involved in blending strongly advocated for the cause, despite reports about its excess and unregulated use. The governments over the years have been tight-lipped about it.

    Has blending led to dependence over the import of oil?

    • In 1990-91, India was self-reliant in mustard oil production and produced 98 percent of the oil needed.
    • Blending mustard oil with other edible oils considered to bolster nutritional profile, taste, and quality.
    • Despite the harmful effects, the processing industry took advantage of blending.
    • Cheap palm oil would be blended up to 80 percent in mustard oil sometimes.
    • As a result, profits of mustard farmers dried up, which discouraged them from cultivating the crop.
    • This could be one of the reasons behind India’s increasing dependency on oil imports over the last two decades.

  • [pib] ‘Red Rice’ exports from Assam to the US

    In a major boost to India’s rice exports potential, the first consignment of ‘red rice’ was flagged off today to the USA.

    Try this PYQ from CSP 2019

    Q.Among the following, which one is the largest exporter of rice in the world in the last five years?

    (a) China

    (b) India

    (c) Myanmar

    (d) Vietnam

    Red Rice

    • Iron rich ‘red rice’ is grown in the Brahmaputra valley of Assam, without the use of any chemical fertilizer.
    • The rice variety is referred to as ‘Bao-dhaan’, which is an integral part of Assamese food.
    • Much like brown rice and white rice, red rice also comes with many incredible health benefits.
    • Due to the presence of a component called anthocyanin, this rice is usually consumed either partially hulled or unhulled.
    • Red rice derives this eye-grabbing colour from this component and has much more nutrient value as compared to other varieties of rice.

  • In farmers’ protests, the core is procurement

     

    Context

    • Farmers’ protests have erupted once again in north India, their main worry is about a possible withdrawal of the Minimum Support Price (MSP) and a dismantling of the public procurement of grains.

    Why farmers in Punjab and Haryana are protesting

    • Farmers in Punjab and Haryana are heavily dependent on public procurement and assured price through MSP.
    • Nearly 88% of the paddy production and 70% of the wheat production in Punjab and Haryana (in 2017-18 and 2018-19) has been absorbed through public procurement [Food Grains Bulletin and Agricultural Statistics at a Glance, Government of India].
    • In contrast, in the other major paddy States such as Andhra Pradesh, Telangana, Odisha and Uttar Pradesh, only 44% of the rice production is procured by public agencies.
    •  In the major wheat States of Madhya Pradesh and Uttar Pradesh, only 23% of the production is procured by public agencies.

    Government needs to continue procurement

    • If farmers of Punjab and Haryana need the procurement system, the government needs it even more.
    • This is because of its obligations under the PDS and the National Food Security Act (NFSA).
    • Support under the NFSA is a legal and rights-based entitlement.
    • There are nearly 80 crore NFSA beneficiaries and an additional eight crore migrants who need to be supported under the PDS.
    • In the last three years, nearly 40% of the total paddy production in the country and 32% of wheat production has been procured by public agencies to supply the PDS.
    • Thus, the government has little option but to continue its procurement from these States in the foreseeable future.

    Way forward

    • Therefore, it is imperative that the government reaches out to the farmer groups and assures them of the indispensability of MSP-procurement system.
    • The government needs to start this initiative immediately to allay their legitimate concerns.
    • Two of the major limitations in the laws that need to be addressed immediately:
    • 1) The absence of a regulatory mechanism to ensure fair play by private players vis-à-vis farmers.
    • 2) The lack of transparency in trade area transactions.

    Conclusion

    The severe trust deficit that resulted from the way the Farm Bills have been rushed through needs to be addressed by adopting a conciliatory approach towards farmers and the States.

  • [pib] PM Formalization of Micro Food Processing Enterprises Scheme

    Union Minister for Food Processing Industries has inaugurated the capacity building component of the Pradhan Mantri Formalization of Micro food processing Enterprises scheme (PM-FME Scheme).

    The event also sought the launch of the GIS One District One Product (ODOP) Digital Map of India.

    Practice question for mains:

    Q.What is the PM FME Scheme? Discuss its potential to neutralize various challenges faced by India’s unorganized food industries

    PM-FME Scheme

    • Launched under the Aatmanirbhar Bharat Abhiyan, the PM-FME Scheme is a centrally sponsored scheme.
    • It aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector.
    • It seeks to provide support to Farmer Producer Organizations, Self Help Groups, and Producers Cooperatives along their entire value chain.
    • Under the PM-FME scheme, capacity building is an important component.
    • The scheme envisages imparting training to food processing entrepreneurs, various groups, viz., SHGs / FPOs / Co-operatives, workers, and other stakeholders associated with the implementation of the scheme.

    Features of the scheme

    • The Scheme adopts One District One Product (ODODP) approach to reap the benefit of scale in terms of procurement of inputs, availing common services and marketing of products.
    • The States would identify food product for a district keeping in view the existing clusters and availability of raw material.
    • The ODOP product could be a perishable produce based product or cereal-based products or a food product widely produced in a district and their allied sectors.
    • An illustrative list of such products includes mango, potato, litchi, tomato, tapioca, kinnu, bhujia, petha, papad, pickle, millet-based products, fisheries, poultry, meat as well as animal feed among others.
    • The Scheme also place focus on waste to wealth products, minor forest products and Aspirational Districts.

     About ODOP Digital Map

    • The GIS ODOP digital map of India provides details of ODOP products of all the states to facilitate the stakeholders.
    • The digital map also has indicators for tribal, SC, ST, and aspirational districts.
    • It will enable stakeholders to make concerted efforts for its value chain development.

  • Agriculture Infrastructure Fund (AIF) Scheme

    PM has launched a new financing scheme under the ₹1 lakh crore AIF.

    Note the following things about AIF:

    1) It is a Central Sector Scheme

    2) Duration of the scheme

    3)Target beneficiaries

    Agriculture Infrastructure Fund (AIF)

    • It is a Central Sector Scheme meant for setting up storage and processing facilities, which will help farmers, get higher prices for their crops.
    • It will support farmers, PACS, FPOs, Agri-entrepreneurs, etc. in building community farming assets and post-harvest agriculture infrastructure.
    • These assets will enable farmers to get greater value for their produce as they will be able to store and sell at higher prices, reduce wastage and increase processing and value addition.

    What exactly is the AIF?

    • The AIF is a medium – long term debt financing facility for investment in viable projects for post-harvest management infrastructure and community farming assets through interest subvention and credit guarantee.
    • The duration of the scheme shall be from FY2020 to FY2029 (10 years).
    • Under the scheme, Rs. 1 Lakh Crore will be provided by banks and financial institutions as loans with interest subvention of 3% per annum.
    • It will provide credit guarantee coverage under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) for loans up to Rs. 2 Crore.

    Target beneficiaries

    The beneficiaries will include farmers:

    • PACS, Marketing Cooperative Societies, FPOs, SHGs, Joint Liability Groups (JLG), Multipurpose Cooperative Societies, Agri-entrepreneurs, Startups, and Central/State agency or Local Body sponsored Public-Private Partnership Projects