Thursday, December 7, 2017

What are the reasons for poor acceptance of cost effective small processing unit? How the food processing unit will be helpful to uplift the socio-economic status of poor farmers?

1. prior experience: small units not achieving break even point early (due to less market for its products)
2. geographical backwardness; reluctance to invest in processing units located in backward areas like bundelkahnd, bhagelkhand , coastal areas, SEZ etc have an advantage
3.government policies ; special policies for MSMEs , lack of implementation, lack of fund access, mainly through NBFCs, formal banking channel roite funding less observed
4. cultural backwardness, how many countries would like to invest in steel plant located in tezpur in assam, even though areas have good coal reserves
5. societal pressures, forest need to be cleared up  for sonme of them, and to go for small processing units, forest clearance is generally avoided. CAMPA fund utilisation issues in such cases
food processing units
1. farmers can get their good returns for theor produce, not dependent n markest alone, proper forward linkages will ensure economic upliftment
2. farmers produce will not get waste, food processing units will proactively procure produce from them (right season, on the spot), no issues of hoarding, seamless value added chain
3. farmers will get societal upliftment, they can own farmes in the vicinity of processing units, better standards of living will be ensured by the government


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Failure in eyes of society

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