UNIT-01

1. Present Status of food industry

Introduction
The Indian food industry is poised for huge growth, increasing its contribution to world
food trade every year. In India, the food sector has emerged as a high-growth and high-
profit sector due to its immense potential for value addition, particularly within the food
processing industry.
Accounting for about 32 per cent of the country’s total food market, The Government of
India has been instrumental in the growth and development of the food processing
industry. The government through the Ministry of Food Processing Industries (MoFPI) is
making all efforts to encourage investments in the business. It has approved proposals
for joint ventures (JV), foreign collaborations, industrial licenses, and 100 per cent
export oriented units.

Market Size
The Indian food and grocery market is the world’s sixth largest, with retail contributing
70 per cent of the sales. The Indian food processing industry accounts for 32 per cent of
the country’s total food market, one of the largest industries in India and is ranked fifth in
terms of production, consumption, export and expected growth. It contributes around
8.80 and 8.39 per cent of Gross Value Added (GVA) in Manufacturing and Agriculture
respectively, 13 per cent of India’s exports and six per cent of total industrial investment.
The Indian gourmet food market is currently valued at US$ 1.3 billion and is growing at
a Compound Annual Growth Rate (CAGR) of 20 per cent. India's organic food market is
expected to increase by three times by 2020#.
The online food ordering business in India is in its nascent stage, but witnessing
exponential growth. With online food delivery players like FoodPanda, Zomato, TinyOwl
and Swiggy building scale through partnerships, the organised food business has a
huge potential and a promising future. The online food delivery industry grew at 150 per
cent year-on-year with an estimated Gross Merchandise Value (GMV) of US$ 300
million in 2016.

2. ORGANIZATION IN FOOD INDUSTRY

Assignment
 3. FOOD PROCESSING OPERATION

(A) Processing: - Food processing includes the methods and techniques used to transform raw
ingredients into food for human consumption. Food processing takes clean, harvested or
slaughtered and butchered components and uses them to produce marketable food products. There
are several different ways in which food can be produced.
One-off production: This method is used when customers make an order for something to be made
to their own specifications, for example a wedding cake. The making of one-off products could take
days depending on how intricate the design is.
Batch production: This method is used when the size of the market for a product is not clear, and
where there is a range within a product line. A certain number of the same goods will be produced to
make up a batch or run, for example a bakery may bake a limited number of cupcakes. This method
involves estimating consumer demand.
Mass production: This method is used when there is a mass market for a large number of identical
products, for example chocolate bars, ready meals and canned food. The product passes from one
stage of production to another along a production line.
Just-in-time (JIT) (production): This method of production is mainly used in restaurants. All
components of the product are available in-house and the customer chooses what they want in the
product. It is then prepared in a kitchen, or in front of the buyer as in sandwich
delicatessens, pizzerias, and sushi bars.

(B) Storage: - Food storage allows food to be eaten for some time (typically weeks to
months) after harvest rather than solely immediately. It is both a traditional domestic skill and, in the
form of food logistics, an important industrial and commercial activity. Food preservation, storage,
and transport, including timely delivery to consumers, are important to food security, especially for
the majority of people throughout the world who rely on others to produce their food. Food is stored
by almost every human society and by many animals. Storing of food has several main purposes:

 Storage of harvested and processed plant and animal food products

for distribution to consumers
 Enabling a better balanced diet throughout the year
 Reducing kitchen waste by preserving unused or uneaten food for later use
 Preserving pantry food, such as spices or dry ingredients like rice and flour, for eventual use
in cooking

(C) Handling: -  Any aspect of the operations in the preparation, transport,

storage, packaging, wrapping, exposure for sale, service, or delivery of food. 

(D) Distribution: - Food distribution is a process in which a general population is

supplied with food. The Food and Agriculture Organization (FAO) considers food
distribution as a subset of the food system.[1] The process and methodology behind food
distribution varies by location. Food distribution has been a defining characteristic
of human behavior in all societies, and recordings of food distribution date back for
thousands of years.
 4. Basic Principles Of Food Processing

The general concepts associated with processing of foods to achieve shelf life

extension and preserve quality include (1) addition of heat, (2) removal of heat, (3)
removal of moisture, and (4) packaging of foods to main- tain the desirable aspects
established through processing 

GENERAL PRINCIPLES OF FOOD PRESERVATION-PHYSICAL

METHODS

31.1 Introduction

Foods are mainly composed of biochemical compounds which are derived from plants
and animals. Carbohydrates, proteins and fats are the major constituents of food. In
addition, minor constituents such as minerals, vitamins, enzymes, acids, antioxidants,
pigments, flavours are present. Foods are subject to physical, chemical, and biological
deterioration. The major factors affecting food spoilage are
1) Growth and activities of microorganisms (bacteria, yeasts, and molds)
2) Activities of food enzymes and other chemical reactions within food itself
3) Infestation by insects, rodents
4) Inappropriate temperatures for a given food
5) Either the gain or loss of moisture
6) Reaction with oxygen
7) Light
The vast majority of instances of food spoilage can be attributed to one of two major
causes: (1) the attack by microorganisms such as bacteria and molds, or (2) oxidation
that causes the destruction of essential biochemical compounds and/or the destruction
of plant and animal cells. Chemical and/or biochemical reactions results in
decomposition of food- due to microbial growth. There is a adverse effect on
appearance, flavour, texture, colour, consistence and/or nutritional quality of food.
31.2 Food Preservation

Food preservation is the process of treating and handling food to stop or greatly slow
down spoilage (loss of quality, edibility or nutritive value) caused or accelerated by
micro-organisms. Preservation usually involves preventing the growth of bacteria,
fungi, and other micro-organisms, as well as retarding the oxidation of fats which
cause rancidity. It also includes processes to inhibit natural ageing and discolouration
that can occur during food preparation such as the enzymatic browning reaction in
apples after they are cut. Preservative for food may be defined as any chemical
compound and/or process, when applied to food, retard alterations caused by the
growth of microorganisms or enable the physical properties, chemical composition
and nutritive value to remain unaffected by microbial growth.

31.3 Principles of Food Preservation

The principles of various methods for food preservation are as
1) Prevention or delay of microbial decomposition
• By keeping out microorganisms (asepsis)
• By removal of microorganisms
• By hindering the growth and activity of microorganisms (e.g. by low temperatures,
drying, anaerobic conditions, or chemicals)
• By killing the microorganisms (e.g. by heat or radiation)
2) Prevention or delay of self decomposition of the food
• By destruction or inactivation of food enzymes (by blanching)
• By prevention or delay of chemical reactions (By using antioxidant)
31.4 Methods of Food Preservation
Preservation of food is achieved by application of physical, chemical and/or biological
methods are as follows:
Physical methods
• Cooling to
→ Low temperature refrigeration (0 to 7°C ) - preserves for shorter period (days) →
Freezing - preserves for several months
• Heating → pasteurization, cooking, sterilization etc
• Exposure to ionizing radiation → U.V., γ, etc
• Application of high pressure
• Drying → removal of water to a level which does not support the growth of
microorganism
Chemical methods
• Quite often it is either impossible or undesirable to employ conventional physical
methods of the preservation.
• In such situation one has to opt for chemical methods of preservation.
• It involves application of chemical additives which act as antimicrobial agents.

Biological methods
Souring (fermentation) lactic and acetic acid, e.g. cheese and cultured milk.
31.4.1 Thermal treatment
The term "thermal" refers to processes involving heat. Heating food is an effective
way of preserving it because the great majority of harmful pathogens are killed at
temperatures close to the boiling point of water. In this respect, heating foods is a
form of food preservation comparable to that of freezing but much superior to it in its
effectiveness. A preliminary step in many other forms of food preservation, especially
forms that make use of packaging, is to heat the foods to temperatures sufficiently
high to destroy pathogens.
In many cases, foods are actually cooked prior to their being packaged and stored. In
other cases, cooking is neither appropriate nor necessary. The most familiar example
of the latter situation is pasteurization. Conventional methods of pasteurization called
for the heating of milk to a temperature between 145 and 149 °F (63 and 65 °C) for a
period of about 30 minutes, and then cooling it to room temperature. In a more recent
revision of that process, milk can also be "flash-pasteurized" by raising its temperature
to about 160 °F (71 °C) for a minimum of 15 seconds, with equally successful results.
A process known as ultra high pasteurization uses even higher temperatures of the
order of 194 to 266 °F (90 to 130°C) for periods of a second or more.
31.4.2 Low temperature
The lower the temperature, the slower will be chemical reactions, enzyme action, and
microbial growth. Each microorganism present has an optimal temperature for growth
and a minimal temperature below which it cannot multiply. As the temperature drops
from this optimal temperature toward the minimal, the rate of growth of the organism
decreases and is slowest at the minimal temperature. Cooler temperatures will prevent
growth, but slow metabolic activity may continue. Most bacteria, yeasts, and molds
grow best in the temperature range 16-38 oC (except psychrotrophs). At temperatures
below 10oC, growth is slow and becomes slower the colder it gets. The slowing of
microbial activity with decreased temperatures is the principal behind refrigeration
and freezing preservation.
31.4.3 Drying
One of the oldest methods of food preservation is by drying, which reduces water
activity sufficiently to prevent or delay microbial growth. The term water activity is
related to relative humidity. Relative humidity refers to the atmosphere surrounding a
material or solution. Water activity is the ratio of vapour pressure of the solution to
the vapour pressure of pure water at the same temperature. Under equilibrium
conditions water activity equals RH/100. At the usual temperatures permitting
microbial growth, most bacteria require a water activity as low as 0.90-1.00. Some
yeasts and molds grow slowly at a water activity as low as 0.65. Food is dried either
partially or completely to preserve it against microbial spoilage.
31.4.4 Irradiation
The lethal effects of radiation on pathogens has been known for many years. The
radiation used for food preservation is normally gamma radiation from radioactive
isotopes or machine-generated x rays or electron beams. One of the first applications
of radiation for food preservation was in the treatment of various kinds of herbs and
spices, an application approved by the United States Food and Drug
Administration (FDA) in 1983. In 1985, the FDA extended its approval to the use of
radiation for the treatment of pork as a means of destroying the pathogens that
cause trichinosis. Experts predict that the ease and efficiency of food preservation by
means of radiation will develop considerably in the future.
31.5 Preservation of Food through Irradiation
Radiation processing of food involves exposure of food to short wave radiation energy
to achieve a specific purpose such as extension of shelf-life, insect disinfestation and
elimination of food borne pathogens and parasites. In comparison with heat or
chemical treatment, irradiation is considered a more effective and appropriate
technology to destroy food borne pathogens. It offers a number of advantages to
producers, processors, retailers and consumers. Radiation processing of food involves
exposure of food to short wave radiation energy to achieve a specific purpose such as
extension of shelf-life, insect disinfestation and elimination of food borne pathogens
and parasites.
31.5.1 Type of Radiation
The type of radiation used in processing materials is limited to radiations from high
energy gamma rays, X-rays and accelerated electrons. These radiations are also
referred to as ionizing radiations because their energy is high enough to dislodge
electrons from atoms and molecules and to convert them to electrically-charged
particles called ions.
Gamma rays and X-rays, like radiowaves, microwaves, ultraviolet and visible light
rays, form part of the electromagnetic spectrum and occur in the short-wavelength,
high-energy region of the spectrum and have the greatest penetrating power. They
have the same properties and effects on materials, their origin being the main
difference between them. X-rays with varying energies are generated by machines.
Gamma rays with specific energies come from the spontaneous disintegration of
radionuclides.
Naturally occurring and man-made radionuclides, also called radioactive isotopes or
radioisotopes, emit radiation as they spontaneously revert to a stable state. The time
taken by a radionuclide to decay to half the level of radioactivity originally present is
known as its half-life, and is specific for each radionuclide of a particular element.
Only certain radiation sources can be used in food irradiation. These are the
radionuclides cobalt-60 or cesium-137; X-ray machines having a maximum energy of
five million electron volts (MeV) (an electron volt is the amount of energy gained by
an electron when it is accelerated by a potential of one volt in a vacuum); or electron
accelerators having a maximum energy of 10 MeV. Energies from these radiation
sources are too low to induce radioactivity in any material, including food.

5. FOOD PACKAGING&CANNING

Definition

Flow Diagram

6. India’s competitive Position In world Food Trade

India exported 7% more agricultural and processed food products in value terms in the
just concluded fiscal year, driven by double digit increases in dairy products and pulses,
although there was muted growth in wheat and non-Basmati rice shipped out of the
country.

Overall agri and processed food exports rose to Rs 1.28 lakh crore in financial year
2019 from Rs 1.20 lakh crore in the 2017-18 fiscal, according to data from the
Agricultural and Processed Food Products Export Development Authority (APEDA), the
nodal agency for promotion of food exports.

Dairy products saw a 72% increase to Rs 3,376 crore from Rs 1,955 crore, while pulses
went up a little over 22% to Rs 1,795 crore from Rs 1,470 crore. “The growth in pulses
exports was due to back-to-back bumper crop-…but this year, there will be a drop in
pulses exports as there is considerable dip in production due to droughtlike conditions in
Maharashtra and Gujarat,” said an agriculture department official.
While exports of Basmati rice grew, there was a steep decline in the export value of
non-Basmati rice and wheat. Export of Basmati rice rose to Rs 32,806 crore from Rs
26,871 crore in 2017-18, but that of the non-Basmati varieties slipped to Rs 20,903
crore from Rs 23,437 crore.

Wheat exports dropped to Rs 369 crore from Rs 624 crore. A glut in global wheat
production made prices of Indian wheat uncompetitive. “Wheat from Russia and Brazil
was traded more in global platforms due to their low cost. Indian surwheat took a
beating as it is more remunerative to sell in local markets,” said an APEDA official.

The sector is, however, eyeing overall growth in farm exports following the introduction
of a new agriculture export policy in December. The policy recommends diversification
of the exports basket, and seeks to boost high-value and value-added agricultural
exports, including perishables.

“The share of high-value and valueadded products is less than 15%, compared to 25%
in the US and 49% in China. The focus is now on exporting processed food products,
which can fetch high value in global markets,” the agriculture department official said.

India is also looking at promoting exports of organic products, which grew 39% in 2017-
18. State governments should align their organic production programme with products
that have export potential, an official said.
6.Foreign Investment in Global Food Industry
Retailing is one of the fastest growing segments of the economy. Indian retail industry is ranked
among the 10 largest retail markets in the world. The attitudinal shift of the Indian consumer and the
emergence of organized retail formats have transformed the face of retailing in India. In the year
2012, the Indian retail sector is estimated to be Rs. 18’673 billion and it accounts for around 15% of
GDP and 8% of total employment. The sector is highly fragmented with about 96% of the stores in the
unorganized sector. India: gradually shifting towards maturity in 2013 according to AT Kearney
Analysis. Brazil is now at peak stage with Turkey, Peru etc. while Russia; China is shifted towards
closing at global scenario. According to 2013 Global retail development index India slipped down to
14th rank into category of to consider than earlier it was in on the radar category. Delhi, Maharastra,
Gujrat and Tamilnadu are the major areas for top investing companies mainly from US, Mauritius, etc.

According to 2013 Global retail development index India slipped down to 14th rank into category of to
consider than earlier it was in on the radar category. Now India is having market attractiveness 36.8%
while country risk is 59.4 % GRDI score is 55 with -9 changes in rank with last year.
Name of the Indian Company Amount of FDI Inflows Rs. Thousand Cr. Cadbury India Ltd 7,007.70
Metro Cash & Carry India Pvt 1,403.60 Balarampur Chini Mills Ltd 1,130.80 Nestle India Ltd 1,007.90
Kelloggs India P. Ltd 659.4 Foreign Investment in Global Food Industry 1217 Parry Confectionery Ltd
644.8 Cargil Foods India Ltd 625.3 Brittania New Zealand Food P. Ltd 575.3 Amamalgamated Bean
Coffee Trading Company 479.8 Dynamic Daily Industries Ltd 346.2 These are some recent and updated
corporate information in the field of Food retail sector which represents that Indian corporate is
pulling up socks for the integration, diversification, technological up gradation, expansion etc to grow
and develop at global platform.