Discuss the potential of food processing sector in addressing the issues of low value addition, high post-harvest losses and disguised unemployment plaguing Indian agriculture. Also, explain why the sector has underperformed despite its significant potential.

Recent report by ASSOCHAM state the SUNRISE sector. A food processing employs 3 million people with potential for another 7 million by 2050. Potential of Food Processing in addressing: (1) low value addition - presently only 2-5% of India's output is processed vs 80% in USA - Most of it is in low value added space BY Atta milling vs bread making - Majority is in informal space (77%) - Food Processing can remove this trend through use of tech

Ex: MATPO industries in Maharashtra increased value addition by 200% through processing of strawberries into syrup - jams, chocolate. II High post-harvest losses - Presently upto 6/1 wasted at farm IKA - Food processing improves shelf life - Irradiation of onions increases life by 6 months - processing milk into cheese makes it usable for upto a year. III Check disguised employment - Agriculture sector employs 4%/workforce - Food Processing has apple processing potential to employ red costly low skilled workforce because (See diagram showing various employment pathways and challenges)

Underperformance of Food Processing: I Regulatory vacuum: National Draft food processing policy not finalized yet (2) Regulation site AFME Acts do not allow exporters and processors right to purchase directly (3) Archaic technology: 60 over 74% processing by informal sector - Mega Food Banks collaboration between SMEs and district industrial centers - Handedness of MSMEs by AGBDA and MFEDA - Availability of finance by NFAFD