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Food Processing Industry-A Management Perspective by Dr. (Ms.) Sitesh Bhatia 5

Food Processing Industry-A Management Perspective by Dr. (Ms.) Sitesh Bhatia 5

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Published by: routraykhushboo on May 04, 2011
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05/04/2011

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Food
Processing
Industry-A
Management
Perspective
Dr.
(Ms.)
Sitesh
Bhatia,
Associate
Professor,
KalindiCollege
(University
of
Delhi),
Delhi.
e-mail:bhatia/61 @bol.net.in
The food processing industry in India has recorded impressive growth in recentyears.India being basicaUy
an
agrarian economy, thescope
and
potential
of
thissector
are
substantiallyhigh. Besides outlining the problems faced by thissector,this article suggestsmeasures forsolvingthe problems.
Inthe last fifteen years or so the corporate sector has entered intofood processing and organized retailing, through multiple branchesgeographically wide-spread,ina big
way.
Substantial part
of
capitalinvestmenthas been allocated and professional manpowerbuilt up and strategicallydeployedin the sunriseindustry thus adding tothegrowth and employment potential
of
the economy.Foodprocessing sectorbasicallyrelates to the conversion
of
raw agriculturalproduce into finished, value added,varietyfoodproductswith improved anddesirable qualityattributes. India being mainly
an
agrarianeconomy, withmajority
of
population living in the rural areas and dependent on agriculturefortheir livelihood,the food processingindustryinIndiahas come to
be
recognized as
an
engine
of
growthfor theeconomy.
The
scope,
potential
and
opportunities
of
thissector
aresubstantially high. A strong and dynamic foodprocessingsector
canplay
a
significantrole inthediversification
and
commercialization
of
agriculture.
Itis
asector which
can
provideeconomic viability to agriculture, generate synergy
between agriculture
and
industry creating forward and
backward linkages andnotonly helpbridge therural-urban divide
but
also helpthe country achieveinclusivegrowth.
It
thushas
the
potential for bringing prosperity
to the
ruraleconomy
by
improvingrural livelihood opportunities
and
increasing employment, improving
fanning methods and
practices and has an impact
on
social upbringing and prosperity.
The
sector creates large opportunitiesfor employment -bothdirect and indirect.
It
has been estimated that every one crore
of
rupees invested in food processing sectorleads to
18
directand64 indirect jobsinthe organized sector.
It
has already helpedcreate 47lakh incrementaljobsin the last four years.TheMinistry
of
FoodProcessing Industries(MoFPI), set
up
in 1988,hasbeen endeavoring to help create jobs and set a target
of
creating1 crore jobs at a total
of
Rs. 1lakh croreinvestment.Further, the issues
of
foodsecurity,foodavailability, food-mix, seasonality, food safety and food quality and their linkages withpoverty as defined in theMillennium DevelopmentGoalsis becomingmorechallenging as demand for food increasesin national and international markets.
The
increasing domestic andinternationaldemand for processed,readyto use,andpackaged fooditems is boundtoraise the prices
of
allfooditems,and thusrural incomesare
bound
to
rise,boosting GDP.
The
development
of
thissector would also increase export earnings,reduce wastage, ensure value addition to the agriculture produce,promote crop diversification, andthroughall thislead
to
robustgrowth and diversification
of
the economy.
Due
toitsdiverseagro-climatic conditions,India hasa widerangingand large raw materialbasesuitable for food processing industries.With possibility
of
cultivating a variety
of
crops. Horticulture,including fruits, vegetables, spices, medicines, and aromaticplantshas emerged as a core sector in the Indian agriculture.Inducing diversificationand commercialization
of
agriculture,this'Sunrise industry' or'Evergreenrevolution', as
it
hasbeendifferently called, can help India become a leading food supplierto the world.Presently,only a small percentage
of
theavailableresourcesare processed into value added production.However, with technological know-how right fromharvesting,handlingandtransport toprocessing,packaging, storage anddistribution becoming increasingly available and popular, this sectorhasthepotential to grow by leaps andbounds.
IMPORTANT SEGMENTS
OF
FOOD PROCESSINGINDUSTRY
The Food Processing Industry hasseveral segments each
of
which
is
equally
important
for
employment
generation,
contribution to GDP, socio-economicdiversityand exportearnings.
The
key segments
of
the foodprocessingindustryare fruitandvegetableprocessingwhich includes ready to serve beverages, fruit juices and pulps, dehydrated and frozenfruits
and vegetable products, tomato products, pickles,
convenience veg-spice pastes,processedmushroomsand curried vegetables.
The
demand for these packaged foodsisgoing
up

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