Food Processing

The food processing sector is critical to India’s development, for it establishes a vital linkage and synergy between the two pillars of the economy—Industry and Agriculture. India is the world’s second largest producer of food and holds the potential to acquire the numerouno status with sustained efforts. The enormous growth potential of this sector can be understood from the fact that food production in the country is expected to double in the next 10 years, while the consumption of value-added food products will also correspondingly grow. The growth of this industry will bring immense benefits to the economy, raising agricultural yields, enhancing productivity, creating employment and raising life-standards of a large number of people across the country, especially those in rural areas.

A recent study has revealed that there is tremendous potential in India to build a profitable business in the sector. This industry ranks fifth in the country and employs 16 lakh workers, comprising 19% of the country’s industrial labour force. It accounts for 14% of the total industry output with 5.5% of the GDP. Its turnover is estimated at Rs.1,44,000 crore, of which Rs.1,11,200 crore is in the unorganised sector. The industry has started producing many new items like ready-to-eat food, beverages, processed and frozen fruit and vegetable products, marine and meat products, IQF products, etc.

  • Fruit and Vegetable – Beverages, Juices, Concentrates, Pulps, Slices, Frozen & Dehydrated products, Wine, Potato wafers/chips etc.
  • Fisheries – Frozen and canned products mainly in fresh form Meat and Poultry –Frozen and packed mainly in fresh form, egg powder (only a couple of units)
  • Milk and Dairy –Whole milk powder, Skimmed milk powder, Condensed milk, Ice cream, Butter and Ghee
  • Grain and Cereals – Flour, Bakeries, Biscuits, Starch, Glucose, Cornflakes, Malted foods, Vermicelli, Pasta foods, Beer and Malt extracts, Grain-based
  • Alcohol Consumer Industry – Chocolates, Confectionery, Soft/Aerated Beverages /Drinks
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