Govt aims to double food processing level to 2% over next five years: Chirag Paswan

New Delhi, The government aims to double the food processing level in the country to 25 per cent of the total farm output over the next five years on the back of several reforms undertaken during the past 12 years, Union Minister Chirag Paswan said on Wednesday.

Paswan, the food processing minister, emphasised that it is a priority sector for the government, and more reforms will be undertaken in the coming years for growth.

Addressing an event here organised by Coca Cola India to celebrate 50 years of Maaza, Paswan noted that there is "endless" scope in this sector, which is still untapped.


He stressed the need to establish small food processing units close to farmers' land.

When asked about the current food processing level and the future target, Paswan said, "I think the target is huge right now. I think we are around 10 to 12 per cent. But then, we have this target that in another five years we must reach the target of around 25 per cent".

He mentioned that it is a huge task to establish the entire value chain, looking at the length and the breadth of our country.

"We have performed very well in the past 12 years. We have brought in the required changes, which were not there in this sector. We have brought in 100 per cent FDI. So, I think we are bringing in the needed reforms," Paswan said.

He highlighted that the ministry is successfully implementing various schemes, including Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME), and Production-Linked Incentive (PLI) scheme.

"I feel very happy and very proud that my ministry is one of the best-performing ministries in the PLI scheme," Paswan said.

The minister stated that India can become a global food basket through food processing.

"I think this is one sector where we have an endless scope, even today, where other sectors are near saturation," he said.

This is the priority sector for the government, Paswan said.

"I am extremely confident that in the coming years, we will see a major reform in the sector of processing, where the plan is to connect every farm to a processing unit," the minister said.

Paswan asked industry to focus on sharing correct information with consumers on product labelling.

He also told corporates not to compromise on the quality of manufactured products.

The minister also spoke about the need to counter myths and misinformation related to processed food items through science-based communication.

He expressed concern over false narratives on social media that processed food is bad.

Paswan said food processing can help in enhancing farmers' income, reducing food wastage and also create employment.