Where India stands and the Importance of Food Processing

food processing

India Food Processing Industry is predicted at a $135 billion enterprise that’s developing at about 8% annually. This increased fee is notably greater than the agricultural increase charge which remains around 4%. These signals imply toward extraordinary shift towards food processing from traditional approaches. GDP with the aid of processing represents about 10% that of agriculture. But given the ability of India, this is an underachievement.

India has approximately 26 kinds of unique climatic conditions, 46 forms of soils are there in India out of a total of 60 kinds of soils global. 127 ‘agro-climatic zones’ had been recognized in India. Also, Indian foods are understood international for their precise taste and aroma.

 India’s nearby and cultural diversity is flawlessly contemplated inside the meals. Every state in India has something specific to offer. E.G. South Indian, Gujrati, Bengali, Rajasthani and Punjabi cuisine are one-of-a-kind and are admired in lots of components of the sector. But they haven’t been able to make inroads in other nations the way Mc Donald’s, Domino’s, etc. Have achieved in India. This is because of lack of creativeness, innovation, branding and most importantly shallow pockets of Indian manufacturers.

India is the largest manufacturer of Pulses, Mangoes, Banana, Milk, ginger, Buffalo meat and 2nd biggest manufacturer of rice, wheat, potato, garlic, cashew nut, groundnut, dry onion, inexperienced peas, pumpkin, gourds, cauliflowers, sugarcane, and tea inside the global. We produce 17 percent of the worldwide general of vegetables and 14 percentage inside the case of culmination. About 40 percent of the world’s mangoes and 30 percentage of the arena’s bananas and papayas are produced in India. Further, India has many precise matters to offer to consist of Alphonso Mangoes and wheat of Madhya Pradesh is uniquely protein-wealthy.

No surprise, that India is an amazing exporter of agricultural merchandise. But the value addition of Indian products stays pretty low. Indian Manufacturers haven’t moved much ahead in the supply chain. Say If mangoes are processed into Mango Juice or pulp; it’ll bring about more cost addition, enterprise, employment, GDP and foreign exchange, however, we export especially mangoes as it is.

 Indian agriculture is infested with the put up-harvest wastage problem. In the class of culmination and greens, it’s far about 30-40%. Overall, the cost of wastage is predicted at 18% ranging from 50000 crores to one lakh crore. Wastage is due to several elements such as non-availability of facilities for sorting, grading, packaging, garage, transportation, cold chain and coffee degree of processing of agricultural produce. Food processing can halve this loss. Consequently, a farmer will able to get extra value and consumers will get products cheaper.

 Consumption styles in India are hastily moving from cereals to protein-wealthy meals and horticulture. Also, India has a great proportion of the population that’s undernutrition (1/3 of the population), stunted and wasted. Agriculture and fruits are tons proper for this trouble and wastage reduction could have a decisive impact here.

Food processing has the ability to turnaround the whole economy. Indian economic system remains agrarian due to the fact approximately 55% populace is immediately established upon agriculture. FPI at once objectives the farming quarter because it tries to create extra forms of products out of a single crop. This will boom demand for farmers and this reason greater remunerative fees.

India’s demographic dividend is plenty pointed out and most of this lies in rural India. Indian youth is turning faraway from agriculture because of low profitability. FPI is perhaps an excellent bet to seize the possibility of a demographic dividend. It can deliver us a genre of progressive rural marketers. The prosperous nation-state can have multiplier advantageous impact on socio-monetary and political issues. In short, FPI can slender the space between rural and concrete India.

Apart from this India’s economy is under transition, Income instructions are transferring upward. Every year tens of millions of households are coming out of poverty to be part of the center magnificence. Per capita profits are Increasing as the GDP growth rate is a great deal higher than the population development rate. This is complemented through developing an urban way of life, nuclear households, operating couples. This makes the case for processed foods compelling. Consumption in India is gradually turning toward packaged and prepared-to-devour foods. Demand is sure to grow, but it must be visible that to what extent opportunity is seized by using the Indian industry and what sort of is left for foreign agencies.

FPI is an employment extensive industry; it could be a solution to the jobless growth of the beyond a decade. Currently, the simplest 3 % of employment is in FPI, while in evolved countries it handles 14% population. Again, lots of employment will be created in rural India. This can treat the problem of misery migration. Growth oblique employment inside the organized food processing sector stands at 6 % between 2011-12.

Also, strategic geographic vicinity and proximity to food-importing international locations (the Middle East and Africa) make India favorable for the export of processed ingredients. Last but no longer least, world economies are integrating even rapidly 12 months via year. So a country has no option but to stay competitive.

Global Atmosphere

Food processing is one of the biggest global sectors at $7 trillion annual productions. Look round and you’ll discover corporations of Cold drinks, Wafer chips, Juice, eating place chains to be amongst the most important ones. Italian pasta and pizza are now eaten up in almost all countries, so are the burgers and sandwiches. Sugar-loose products, cornflakes, oats, ketchup, and many others. Are a few of the most demanded consumer goods. Other developing countries, together with Thailand, the Philippines, and Brazil are processing as excessive as 70% of their produce.

India’s food processing zone ranks fifth inside the global in exports, production, and consumption. The significance of this zone is large and it deserves a priority treatment by using the authorities. Accordingly, the world has been made a part of the formidable ‘Make in India’ initiative.


Supply Chain – Any product is mobilized from manufacturer to customer to be picked up. This path is known as the supply chain. This action entails both time and fees. Longer supply chains will push prices upward and result in more wastage. Sufficient parking centers, direct farming, contract farming, and a transactional warehouse receipt system are mechanisms to streamline, support and shorten the supply chain.

Apart from those troubles different important interventions and investments are wished within the infrastructure zone, that’s the backbone of the metals processing industry. We have visible that India is the most important producer of several results and vegetables. Most of these are perishable and feature a completely low shelf existence. This is the main reason for the excessive percent of wastage. Their shelf lifestyles may be accelerated by adequate investment in infra consisting of cold storage, joint vehicles, radiation flowers, and so on.

Storage of foodgrains – FCI deals simplest in food grains and about the sixty-seven percentage of the garage capability is focused inside the six fundamental buying states namely, Punjab, Haryana, Uttar Pradesh, Andhra Pradesh, Rajasthan, and Uttrakhand. The several States have emerged in recent years as critical states for foodgrain procurement, particularly, Bihar, Odisha, Jharkhand, West Bengal, Madhya Pradesh, and Chhattisgarh presently account for 13 percent of the cutting-edge garage capability.

Under the National Storage Policy, the majority grain processing centers are now being created at the Built Own Operate (BOO) basis at recognized locations in our country.

India is presently having an excessive scarcity of cold garage centers. Significant majority of bloodless garage centers have been created among 2000 and 2011, assisted to a degree with the aid of interventions from National Horticultural Board (NHB), National Horticultural Mission (NHM), Horticulture Mission in North East and Himalayan States, Agricultural and Processed Food Products Export Development Authority (APEDA), Ministry of Food Processing Industries and Department of Animal Husbandry & Fisheries.

Cold stores are to a point product specific. The majority of the bloodless shops in India are committed to potatoes. Some offer storages for chilies, the dry result, spices, vegetables, etc. Cold storage for meat, fish, milk and milk merchandise and other commodities inclusive of spices account for the handiest 1 percentage of the full cold garage capacity. These bloodless storages also are generally smaller inability.

 Nearly 96 percent of cold storages are inside the non-public zone and about 75 percentage potential of cold storages are used to shop only potatoes whilst any other 23 percentage fall beneath the multi-product class.

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