- The unorganized food processing sector has nearly 25 lakh enterprises, mostly rural and family-based.
- This sector faces challenges like credit access, high cost of credit, lack of modern technology.
- Also, inability to integrate with food supply chain and comply with health/safety standards.
- Significance:
- Aims to modernize and enhance competitiveness of existing micro enterprises.
- Ensures their transition to formal sector.
- Supports FPOs/SHGs/Cooperatives for service delivery and common infrastructure.
- Helps in backward & forward linkages, branding & marketing.