UP To Link Food Processing Units With FPOs To Boost Farmers’ Income

In a move aimed at increasing farmers’ income, the Uttar Pradesh government will now ensure that food processing units source raw materials directly from Farmer-Producer Organisations (FPOs), with priority given to local groups.

These units will also be integrated with the Government of India's Cluster Development Programme to streamline supply and improve price realisation for farmers. The decision was taken in a meeting of the Food Processing Industry Appraisal Committee.

ALSO READ: Bengaluru Power Cut On November 4, 6: BESCOM Announces Shutdown; Check Timings, Areas

The government has implemented the UP Food Processing Industry Policy-2023. Under the policy, units for fruit and vegetable processing, milk processing, ready-to-eat and ready-to-cook food products, breakfast cereals, snacks, bakery and other food items, grain, pulse and oilseed processing, other agricultural and horticultural products, spices, soybean, mushroom processing, honey processing, cocoa products, jaggery-based value-added products, and fruit juice-pulps and ready-made carbonated beverages are being established.

So far, 240 units have received approval, of which 70 have started production. Meanwhile, the work of forming FPOs is also being carried out rapidly. Currently, 3,995 FPOs have been established.

The expansion of the processing industry is increasing the consumption of farmers' products. The government is also encouraging farmers to move forward in this direction themselves to increase their income, and FPOs are also working in this sector.

ALSO READ: Bandhwari Landfill Turns Into Major Environmental Crisis; Villagers Seek Centre’s Intervention

Until now, there were no separate guidelines for the supply of raw materials to processing units. Consequently, the Appraisal Committee, chaired by the Additional Chief Secretary for Horticulture and Food Processing Industry, has taken this decision.

With direct supply through FPOs, the role of intermediaries will be eliminated, and farmers will receive direct benefits. For now, this order has only been issued for processing units related to frozen food and vegetables.

On the other hand, under the Cluster Development Programme, special clusters are being created for various crops and products. The association of units with these clusters will accelerate their development, and farmers will also get the opportunity to sell their produce directly.

The Additional Chief Secretary stated that food processing is being promoted to increase farmers' income and create employment opportunities. While direct procurement will ensure the units receive good quality, farmers associated with FPOs will be able to get a fair price.