In light of the COVID-19 pandemic, the government announced a scheme worth Rs 10,000 crore that would benefit two lakh Micro Food Enterprises (MFE). Apart from new MFEs, the already existing MFEs, farmer producer organisations, Self Help Groups and cooperatives would also be supported. The scheme would be implemented over a five-year period from 2020-21 to 2024-25 as a cluster approach with focus on the perishable food products. It would be rolled out on an All India basis. Through this scheme, micro enterprises would get credit linked subsidy @ 35% of the eligible project cost with ceiling of Rs.10 lakh. Beneficiary contribution will be minimum 10% and balance from loan.
While the money may be coming, a lot of micro entrepreneurs lack the understanding the technology behind the business. There are about 25 lakh unregistered food processing enterprises, out of which 66 % are in rural areas and about 80% of them are family-owned businesses. Majority of the small food businesses are not aware of basic requirements like FSSAI registration & licensing and have been running without that. Other aspects that prevent these business from scaling include
General lack of awareness on food safety & quality guidelines
Lack of access to technical know how on the science behind food
Inability to package and label the product accurately
Testing and measuring product shelf life and extending the same
Branding, marketing and the ability to introduce it into organized retail
Food is a high risk business and as per FSSAI regulations, it is mandatory for all FBOs to adhere to GMPs & GHPs to ensure food safety and quality. If the FBOs do not ensure compliance, it can threaten public health and may even result in fines imposed on the FBOs. Penalty for unsafe food could lead to an imprisonment term up to six years and fine up to Rs. 5 Lakh.
This is where we can help. We bring in the technical and market expertise which can help MFEs grow. We can help
MFEs with FSSAI registrations & licensing
Create awareness about FSSAI standards and their requirements
Develop, implement and maintain food safety & quality policies
Upgrade their production techniques to improve the product in the supply chain
Continuously educate them on topics related to hygiene, food safety & quality
Build relationships with buyers in the market place
This new scheme of creating a more organized sector of food processing is a welcome step and will help MFEs become more competitive, reduce food wastage and help scale up their supply chain. The rightful next step would be to connect these suppliers to the export markets. Exports of agri and processed foods from India grew healthily by a over 7% in FY19. However, the share of high-value and value added products is less than 15%, compared to 25% in the US and 49% in China. This push should help us improve this % significantly. Another silver lining for the export market could be the organic products as India has the largest number of organic producers in the world.
Author: Sravani is a Food Safety expert with
international experience and believes in the importance of building the
right ecosystem to ensure food safety. She is a Consultant at Food
Safety Works and works on implementing Food Safety Management Systems
