Indian mega food parks scheme offers modest gain

Subject

India mega food parks scheme.

Significance

To boost agrarian production and the food-processing industry (worth around 194 billion dollars in 2015), Prime Minister Narendra Modi's government last year revised the 2008 Mega Food Park (MFP) Scheme. The policy aims to help farmers increase agrarian productivity and their incomes, and attract investors seeking opportunities in agriculture and food processing, domestic retailers and food exporters. Thus far, the scheme has produced few results.

Impacts

• Easier land acquisition would facilitate MFPs, but deep political divisions impede reform.
• Lack of global food safety standards dampens hopes of increasing Indian exports of processed food.
• Large, private foreign investors in the foods and beverage sectors are unimpressed, but the scheme offers opportunities for B2B firms.