Direct Farm Linkages to Power UP’s Food Processing Industry Growth

ENA State 2025-11-04 14:17:55 New Delhi, Nov 4 (KNN) To strengthen the farm-to-industry link and enhance farmers incomes, the Uttar Pradesh government is set to ensure that food processing units procure raw materials straight from Farmer-Producer Organisations (FPOs), with preference for local groups. These units will also be linked to the Government of Indias Cluster Development Programme to streamline the supply chain and enhance price realisation for farmers. The decision was finalised during a meeting of the Food Processing Industry Appraisal Committee. The growing food processing industry is driving higher demand for farmers produce. To help farmers benefit directly from this trend, the government is encouraging them to participate more actively in the sector, with Farmer-Producer Organisations (FPOs) already playing a key role. Until now, there were no dedicated guidelines governing the supply of raw materials to processing units. Addressing this gap, the Appraisal Committee—chaired by the Additional Chief Secretary, Horticulture and Food Processing Industry—has approved the new policy. 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. 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. 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. (KNN Bureau) 43977 https://knnindia.co.in/news/newsdetails/state/direct-farm-linkages-to-power-ups-food-processing-industry-growth 2025-11-04 14:17:55 knnindia.co.in Direct Farm Linkages to Power UP’s Food Processing Industry Growth