Ans.
- The success of the food processing industry depends on these two linkages:
Backward Linkages (Farmer to Factory):
- Problems: Lack of good quality raw materials, lack of awareness among farmers, and poor connectivity from farm to factory. Direct contracting between farmers and processors is limited in India.
Forward Linkages (Factory to Market):
- Problems: Lack of cold storage and cold chain infrastructure, leading to spoilage of fruits and vegetables. High packaging costs and a weak marketing network.
Conclusion:
- The breakdown of these linkages results in high food wastage in India and prevents farmers from receiving fair prices.