Challenges for Small Processing Units in India

Challenges for Small Processing Units in India

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India's agricultural economy provides the best circumstances for the growth of the rapidly developing food processing sector. This emerging industry is receiving a boost from readily available raw materials, evolving urban and rural lifestyles, and supportive fiscal policies. However, tiny processing units in India have a number of difficulties, including

1. Infrastructure - Small processing facilities are unable to make significant investments in infrastructure including grading, packing, cold storage, warehousing, logistics, supply chains, etc. They utilise the shared resources for these activities.

2. Manpower - A lack of skilled workers is hurting this industry's ability to compete. Few institutions offer the workforce in this industry the proper training.Seasonality and perishability: Most of the agricultural products such as fruits, vegetable, fisheries etc are highly perishable and thus increase the vulnerability of the entrepreneurs to wastage of commodities. The supply of raw materials is also seasonal in nature.

3. Credit - Although the sector has been designated as a priority sector for financing, small businesses come with special risks.

4. Competition - Growing investment in the industry has sparked fierce competition, which has had a negative influence on the units' operating profitability.

5. Technology - Value addition is the most important aspect in food processing, but India has yet to implement reliable technology across the board.

Through the following means, the Small Processing Units contribute significantly to improving the socioeconomic circumstances of underprivileged farmers. It decreases the loss of agricultural raw resources and lengthens the shelf life of food items by acting as a crucial link between the manufacturing and agricultural sectors. Long-term, this aids farmers in increasing their sales. It connects farmers with the market for agricultural products and increases their revenue, particularly for horticultural products. Farmers can also enhance their income by exporting more goods, as this makes their goods more competitive on the global market.

The Small Processing Units offer job openings in industries including packaging, sampling, logistics, and other non-farm pursuits. Thus, it enables farmers to transition away from farming and into non-agricultural pursuits, improving their lifestyles. In order to become a global leader in the food processing industry, India must make the most of all its resources. To encourage this industry, it has introduced the SAMPADA scheme, Mega Food Park Schemes, Value Addition Centers, Irradiation Facilities, etc. To ensure that small farmers can profit from these programmes, further work must be done.