FOOD PROCESSING

One of the main drivers of employment and the Indian economy is the food
processing sector. Approximately a million people are employed in this area,
which accounts for employment in the registered manufacturing sector,
according to the Ministry of Food Processing Industries (MoFPI). Furthermore,
the unreported food processing industry offers job prospects to around a million
individuals. A few of the issues facing the food processing sector are low-cost
competition brought on by high agri-produce costs, a lack of knowledge among
farmers about optimum agricultural methods, and worries about the quality of
the products arising from the widespread use of pesticides and fertilizers.
Additional problems include low awareness among farmers regarding the
required quality certifications, inadequate facilities for quality testing, weak
Indian product brands in foreign markets, inadequate infrastructure for
processing, storing, and logistics, and low adherence to ethical and sustainable
standards.

The Indian government has implemented many programs to assist the food
processing sector overcome these issues. As an example, the Pradhan Mantri
Kisan Sampada Yojana (PMKSY) seeks to encourage investments at every
stage of the food processing industry's value chain to spur growth. Another
program designed to encourage the industry's expansion is the Production
Linked Incentive Scheme for the Food Processing Industry (PLISFPI), which is
housed under the Ministry of Agriculture & Farmers' Welfare's Department of
Animal Husbandry & Dairying. The Department of Fisheries, the Mission for
Integrated Development of Horticulture (MIDH), and the National Bank for
Agriculture and Rural Development are some such programs.

FACTS AND FIGURES ON FOOD PROCESSING IN INDIA.

 The Market Size of the Food Processing industry in 2023 was ₹28,027.5
Billion (USD 346.3 Billion)
 The Food Processing Industry is Projected to experience a CAGR
( Compound Annual Growth Rate by 8.8% until 2032
 The Expected market size of the industry by 2032 will be ₹61,327.5
Billion (USD 750.8 Billion)
 Gross Value Added (GVA) of the sector: ₹2.08 lakh crores (USD 25.7
Billion) in 2021-22
 Contributes 9.87% to India's GVA in manufacturing
 Directly and indirectly employs over 22 million people
 Total FDI received in the sector since April 2000: $12.354 Billion
 The International Year of Millets (2023) focused on promoting the
nutritional value and processing potential of these traditional grains.
 Recent investments in food processing tech start-ups indicate a growing
interest in innovation within the sector.
 Schemes like PMKSY and ODOP focus on infrastructure, skill
development, and export promotion
 The total meat production in India for 2021-22 is 9.29 million tonnes,
with Maharashtra, Uttar Pradesh, West Bengal, Andhra Pradesh, and
Telangana being the top-producing states.
 The sector has been growing at a steady pace, averaging around 11.18%
annually in the past five years. This growth is driven by factors like rising
disposable incomes, urbanization, changing consumer preferences, and
government initiatives.
 The sector encompasses diverse segments like fruits & vegetables, dairy,
meat & poultry, bakery & confectionery, and packaged food. Each sub-
sector has its growth dynamics and challenges.
 Despite its promise, the sector faces hurdles like fragmented supply
chains, inadequate infrastructure, lack of cold storage facilities, limited
access to financing, and stringent regulations. Additionally, skill gaps and
quality control issues remain concerns.
 Food processing contributes significantly to India's GDP, accounting for
nearly 9.87% of GVA in manufacturing and employing over 22 million
people directly and indirectly. It plays a crucial role in bridging the gap
between agriculture and industry, driving economic growth and rural
development.
 India ranks first in milk production, with a total production of 221.06
million tonnes in 2021-22, representing an annual growth rate of 5.29%.
 Online grocery retail in India has experienced significant growth, with a
compound annual growth rate of over 50%. It is projected to reach $10-
12 billion by 2025.
 India became the second-largest sugar exporter in the world in the
Sugar Season 2021-22, exporting 110 lakh metric tonnes of sugar and
earning approximately INR 40,000 crore in foreign exchange.
 Non-Basmati Rice has emerged as India’s top agricultural and processed
food export item, with exports reaching $4,663 million in the first nine
months of 2022-23
  India is a major exporter of agricultural products, but processed food
exports still hold immense potential. Increasing the share of processed
food in exports can bring in valuable foreign exchange and boost
economic growth.
 The Indian government is implementing various schemes like Mega Food
Parks, Pradhan Mantri Kisan Sampada Yojana, and One District One
Product (ODOP) to address these challenges and accelerate growth.
 Technological advancements like automation, AI, and blockchain are
poised to revolutionize the sector, improving efficiency, traceability, and
food safety.
 Value addition, cold chain infrastructure, skill development, and export
promotion are key areas requiring focused attention to unlock the full
potential of the sector.

In summary, the Indian food processing industry offers an intriguing mix

of difficulties and potential. This industry has the potential to
significantly contribute to India's economic growth and prosperity while
guaranteeing food security and the nutritional well-being of its people
provided obstacles are overcome and its assets are fully used.

Food Processing Industry in Vidarbha Region

Vidarbha, a region in eastern Maharashtra, has a lot of promise for the food-
processing sector because of its strategic position, varied agricultural produce,
and lush soil. Vidarbha is primarily an agrarian region with a diverse range of
crops including cotton, soybean, pulses, oranges, and sugarcane. This
agricultural abundance serves as a strong foundation for the food processing
industry.

 Food Processing Industry in Vidarbha Contributes approximately 15% of

Vidarbha's economy and employs a sizeable workforce.

 Vidarbha is famous for its Nagpur oranges. The region has seen the
establishment of several fruit processing units, particularly for oranges,
aimed at value addition and extending the shelf life of the fruit through
processing into juices, concentrates, and other products.
 The government, both at the state and central levels, has introduced
schemes and initiatives to promote food processing in Vidarbha. These
include subsidies for setting up processing units, providing access to
credit, and facilitating infrastructure development.
  The food processing industry in Vidarbha has witnessed a surge in
entrepreneurial activity, with individuals and groups branching out into
ready-to-eat food goods, snack production, and organic food processing.
 There are sizable markets for processed food items in Vidarbha, both
inside the region and in nearby urban centers like Nagpur and Pune, as a
result of increasing urbanization and shifting customer tastes.
 Increasing disposable incomes and urbanization in Vidarbha and nearby
regions are driving demand for processed food products.
 Growing demand for organic food presents opportunities for processing
organically grown produce.
 Vidarbha can reach out to foreign markets by using its distinctive
agricultural products.

Overall, Vidarbha's food processing sector has a bright future and room to
grow. By tackling the current obstacles and leveraging its distinct advantages,
Vidarbha has the potential to become a preeminent center for food processing
with added value in India.

Government Websites:
 Vidarbha Industries Association: https://www.via-india.com/
 Ministry of Food Processing Industries: https://mofpi.gov.in/
 Invest India: https://www.investindia.gov.in/sector/food-processing

Top Food Processing Industry in India.

1. Hindustan Unilever Limited
2. Kohinoor Foods Ltd
3. MTR Foods Pvt. Ltd.
4. Parle Agro
5. Britannia Industries Limited
6. LT Foods Ltd.
7. KRBL Limited
8. Heritage Food Limited
9. Hatsun Agro Products