Food Processing Industry-Perceptions, problems and Its Scenario in India

food processing industry

Food Processing Industry in India plays a very significant role in India’s economy. Right from the agriculture and harvest of crop up to the consumption of the product by the client, there is a sure level of significant worth expansion in each product. This value expansion can be of various kinds. As it goes from manufacturer to distributor, to retailer lastly to the shopper, each stage increases the value of the product. In this value chain, there might be value expansion by Sorting, evaluating, bundling, branding and so forth. These activities not make product alluring, more usable, gives choice and attention to clients and furthermore improves time frame of realistic usability of items. Aside from this service rendered by delegates to pass on the product from manufacturer to the client is likewise significant.

The greater part of the rural products is not consumable in their unique frame, for which they are prepared. Wheat is changed over into flour, sugarcane into jaggery, Sugar, ethanol, liquor Paddy into rice, and so forth.

Consequently, food processing not just enhances the agro products, but rather likewise expands their utility. We realize that exercises in an economy are extensively partitioned into Agriculture, industry, and Services. Food processing Industry is the result of agribusiness and Industry.

Where India stands and why food processing is critical?

India Food Processing Industry is assessed at $135 billion industry which is developing at around 8% every year. This development rate is altogether more than rural development rate which stays around 4%. These signs show toward sensational move toward food processing from conventional ways. Gross domestic product by processing constitutes around 10% that of agriculture.

India has around 26 kinds of various climatic conditions, 46 assortments of soils are there in India out of aggregate 60 sorts of soils around the world. 127 ‘agro-climatic zones’ have been distinguished in India. Likewise, Indian food is known worldwide for its remarkable taste and smell.

India’s cultural and regional diversity is splendidly reflected in the food. Each state in India has something one of a kind to offer. For e.g. South Indian, Bengali, Gujarati, Punjabi & Rajasthani delicacies are extraordinary and are appreciated in numerous parts of the world. In any case, they haven’t possessed the capacity to make advances in different nations the manner in which Mc Donald’s, Domino’s and so forth have done in India. This is on the grounds that absence of innovativeness, advancement, branding and above all shallow pockets of Indian manufacturers

India is the biggest manufacturer of Pulses, ginger, Mangoes, Buffalo, Banana, Milk, meat and second-biggest producer of rice, cashew nut, wheat, garlic, potato groundnut, green peas, dry onion, pumpkin, gourds, sugarcane, cauliflowers and tea on the planet. We deliver 17% of the worldwide aggregate of vegetables and 14% on account of natural products. Around 40 percent of the world’s mangoes and 30% of the world’s bananas and papayas are delivered in India. Further, India has numerous one of kind things to offer, for example, Alphonso Mangoes and wheat of Madhya Pradesh is particularly protein rich.

Indian agriculture is invaded with post-gather wastage issue. In a class of foods grown from the ground it is around 30-40%. By and large, cost of wastage is assessed at 18% running from 50000 crores to 1 lakh crore. Wastage is owing to a few variables including non-accessibility of offices for arranging, evaluating, bundling, storing, transportation, cool chain and low level of processing of agricultural produce.

Consumption patterns in India are quickly moving from grains to protein-rich foods and cultivation. Likewise, India has the noteworthy extent of the populace which is under nutrition, inhibited and wasted. Cultivation and natural products are much attractive for this issue and wastage decrease will have an unequivocal effect here.

Food processing industry can possibly turnaround the entire economy. Indian economy is as yet agrarian, in light of the fact that around 55% populace is straightforwardly reliant upon agribusiness. FPI specifically targets cultivating part as it endeavors to make more kinds of products out of single yield. This will build interest for agriculturists and thus more profitable costs.

India’s statistic profit is plentifully discussed and the greater part of this lies in rural India. Indian youth is getting some distance from agriculture due to low productivity. FPI is maybe best wager to seize the chance of statistic profit. It can give us a type of dynamic country business visionaries. Prosperous wide open will have multiplier positive effect on financial and political issues. To put it plainly, FPI can limit hole among provincial and urban India.

Aside from this current India’s economy is under change, Income classes are moving upward. Consistently a great many family units are leaving neediness to be a piece of white collar class. Per capita pay is increasing as GDP development rate is considerably higher than populace development rate. This is complemented by developing urban culture, family units, working couples. This puts forth defense for processed food convincing. Utilization in India is steadily tilting towards bundled and prepared to-eat foods. The request will undoubtedly increment, however it must be seen that to what degree opportunity is seized by Indian industry and what amount is left for outside organizations.

FPI is an employment intensive industry; it can be a solution to the jobless development of the past decade. at present, only 3 % of the job is in FPI, while in advanced nations it handles 14% populace. Again, much of the job will be generated into rural India. This can be the solution to the issue of distress migration. Development indirect employment in the planned food processing sector locates at 6 % between 2011-12.

Also, tactical geographic location and proximity to food-importing nations make India complimentary for the export of processed foods.

At last, world financial systems are integrating even quickly year by year. So a nation has no choice but to stay competitive.

Global scenario of food processing sector

Food processing industry is one of the major global sectors at $7 trillion yearly productions. Just glance around and you’ll discover companies of juice, cold drinks, wafer chips, restaurant chains to be among the largest ones. Italian pizza and pasta are now utilized in almost all nations, so are the burgers and sandwiches. Cornflakes, oats, ketchup, Sugar-free products, etc. are among the most demanded consumer goods. Currently, only 2 % of India’s vegetable and fruits production is processed. In comparison, China and USA process their 90% and 40% produce. Other developing nations, such as the Philippines, Thailand, and Brazil are processing as high as 30, 78 and 70% of their manufacturing. India’s food processing sector 5th in the globe in production and exports.

Food Processing Industry is given much importance and it justifies a priority treatment by the government. Consequently, the sector has been made an element of ‘Make in India’ initiative.


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