Food processing is the transformation of raw ingredients into food products that can be eaten by physical or chemical means. Food preservation slows or stops food spoilage by various methods, including drying, freezing, pickling, and irradiation. Food processing and preservation benefits include increased food safety, improved nutrition, longer shelf life, and increased economic opportunities. Food processing is any method used to process food to reduce the number of undesired microorganisms and improve its stability and safety margins to make it more suitable for human consumption. It includes any physical process, chemical process, or a combination of the two that changes the physical characteristics of food to make it safer or more convenient to use. Processing also improves palatability and appearance. Food processing and preservation can be defined as all the activities and operations required for converting raw agricultural produce into safe and nutritious food products. Food processing and preservation are necessary to ensure access to safe, wholesome, and palatable foods at reasonable costs. Food processing enhances the shelf life of food through various ways such as microorganism control, low-temperature storage, dehydration, and removal of oxygen. It also alters the texture, flavour, and nutritional value of food products to appeal to consumers. The food processing industry is an important part of the Indian economy. It accounts for about 10% of India’s GDP and employs around 15 million people. The sector is multiplying and is estimated to reach a value of Rs. 2,58,000 crore by 2022. There are many opportunities for investment in the food processing sector, and it offers good returns on investment. The food processing industry in India is facing several challenges such as lack of adequate infrastructure, shortage of skilled workforce, inadequate access to finance and raw materials, high cost of energy, lack of proper storage facilities, and poor market exposure. The PM Formalization of Micro Food Processing Scheme aims to plug maximum of the loopholes that are present in the Food Processing industry of India.

Consider the following Statements about the PM Formalization of Micro Food Processing Scheme and choose the correct option.

(I) It was launched in 2020.

(II) It was launched as an initiative under the Atmanirbhar Bharat Abhiyan.

(III) It will run for 10 years – 2020-21 to 2029-30.

A Only I Correct Answer Incorrect Answer
B I & II Correct Answer Incorrect Answer
C II & III Correct Answer Incorrect Answer
D Only III Correct Answer Incorrect Answer
E I, II, III Correct Answer Incorrect Answer


It was launched on 29th June 2020. It is a part of Atmanirbhar Bharat Abhiyan. It is a centrally sponsored scheme. The share of expenditure under the PM FME scheme is as follows: 60:40 between the central government and state governments and UTS with the legislature 90:10 between central and North Eastern and Himalayan states 100 percent central assistance for UTs without legislatures. It will run for five years – 2020-21 to 2024-25. The central government will bear the expenditure for the first year irrespective of who incurs it; later will be adjusted in the ratio mentioned above; in the next four years.

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