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Introduction
India is the world’s second largest producer of food with the potential of being the
biggest, backed by its food and agricultural sector. The food processing industry is
one of the largest industries in India and is ranked fifth in terms of production,
consumption, export and expected growth. The total food production in India is
likely to double in the next 10 years with the country’s domestic food market
estimated to account for 14 per cent of the country’s gross domestic product (GDP).
of farm operations has helped transform Indian agriculture and increased output
considerably.
Presently, the Indian food processing industry accounts for 32 per cent of the
country’s total food market. The Government of India has nominated two agencies,
exports from India. Owing to them and the seemingly lucrative opportunities in this
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sector, the food industry in India has been attracting a lot of attention from foreign
investors as the country is close to the markets of Middle East, Africa and South East
Asia.
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Market Size
India’s agricultural production is expected to grow at a rate of 4.6 per cent in 2014.
With the second green revolution just around the corner, India’s production of
foodgrains this year is expected to break the 2011–12 record of 259 million tonnes
(MT). Presently, the overall grain stock position in India is about 62.1 MT, including
India is the third largest fish producer and second in inland fish production in the
world. Marine products contribute a fair share to India’s food processing industry.
According to MPEDA, export earnings from marine products touched a record US$ 5
India has a livestock population of 470 million, which includes 205 million cattle and
90 million buffaloes. Total meat production in the country is about five MT annually.
The country produces 450 million broilers and 33 billion eggs every year. Growth
rate of egg and broiler production is 16 per cent and 20 per cent respectively.
The Indian food industry which presently stands at close to US$ 135 billion with a
CAGR of 10 per cent, is expected to touch US$ 200 billion by 2015. The food
processing industry in India attracted foreign direct investments (FDI) worth US$
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5,793.95 million during the period April 2000–March 2014, according to data
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Investments
The evolving Indian food industry has seen quite a few investments in the recent
past. Investments have been observed both within the country and also by private
(US$ 8.42 million) over 10 years in the second phase of their joint venture
(JV) project, Unnati, which will help farmers grow more mango trees.
PepsiCo has joined hands with the Clinton Foundation to source cashew fruit
from farmers in Maharashtra for its Indian juice business. This partnership is
Café Coffee Day (CCD), in a bid to expand its market in India, plans to add 150
cafes and 120 more Xpress outlets across the country in FY 15.
Food Bazaar plans to tap the under-branded food and beverages space in the
Indian domestic market with the help of private labels to offer more choice to
consumers.
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Government Initiatives
Some of the notable recent government initiatives in the sector are as follows:
planned to implement the National Food Security Scheme in the state by the
end of June 2014 and has issued stringent orders to complete all formalities
at the earliest.
Mr Ram Vilas Paswan, Food and Civil Supplies Minister, plans to provide
Technologies (BARCIT) has signed an MoU with M/s Veena Industries for
incubation of technology for ‘Biodegradable and Edible films for Food and
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Andhra Pradesh so as to help them transport fish to places of their choice and
technology to convert the highly nutritious small pelagic fishes into sweets,
branding drive, which will promote the brand equity of Indian marine
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Future Outlook
The Confederation of Indian Industry (CII) has estimated that the food processing
sector has the potential to attract US$ 33 billion of investment in 10 years and
Also, the opportunities in food and grocery retail in India are immense, given that it
constitutes about 69 per cent of India’s total retail market, as per panel members at
The revival of the agriculture sector could open up opportunities for developing a
number of other businesses in the food industry, such as integrated cold chains,
mega food parks and processable varieties of crops, among many others. To
promote food processing industries in India, the MoFPI has finalised the Vision 2015
document, which envisages tripling the size of the processed food sector by
increasing the level of processing of perishables from 6 per cent to 20 per cent,
value addition from 20 per cent to 35 per cent and share in global food trade from
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Disclaimer
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