indian food industries

1. Parul Agriculture University
To,
Professor: Manoli Mam
From,
Changela Raj
En.no.:172037101256
Roll no.:163

2. Indian Food Processing

3. FLOW OF PRESENTATION
• Introduction
• Structural analysis of the
industry
• Reforms
• 10th and 11th Five year
Plans
• Budgets

4. INTRODUCTION
� India -One of the largest food producers of the world
� Output of the organized segment -US$ 34,827 million
� Marine and Spices together contribute more than 70% of
export earnings
� Investment requirement is around US$ 15 billion
� India is looking for investment in infrastructure,
packaging and marketing
� The Indian scientific and research talent –acknowledge
source that can be tapped for advantage

5. INTRODUCTION
Increase in per capita income and purchasing power.
A largely untapped domestic market of 1210 Million Consumers
300 Million Upper and Middle Class consume processed food
Increasing number of working women.
Well developed infrastructure and distribution network.
Fast expansion of electronic and print media.
Annual growth rate of the industry is around 9-12%.
Employs around 2 million people (as of 2005)

6. CLASSIFICATION OF INDIAN FOOD AND AGRO
PROCESSING INDUSTRY

9. PROSPECTS OF FOOD PROCESSING
Presently, a small percentage of farm produced processed into
value added products.
India needs US $ 28 Billion of investment to raise food processing
levels by 8-10 %.
Rapid urbanization, increased literacy, changing lifestyle, more
and more women in workforce, rising per capita income leading to
rapid growth and new opportunities in food and beverages sector
Indians spend about 50% of household expenditure on food items.

10. STRUCTURAL ANALYSIS OF THE
INDUSTRY
Group member name

12. REFORMS OF FOOD PROCESSING INDUSTRY

13. POLICY INITIATIVES
Regulation and Control
Most of the Processed food items exempted from the purview of
licensing.
FDI up to 100% permitted under automatic route in the food
infrastructure.
FDI permitted only in single brand product retailing.
No industrial license required for almost all of the food and agro
processing industry.
Use of foreign brand names freely permitted by the government.
MRTP rules and FERA regulations have been relaxed.
Most of the items can be freely imported and exported.

14. POLICY INITIATIVES
Reduction of custom duty rates .
Excise and import duties substantially reduced.
Reduction of corporate taxes and a shift towards market related
interest rates.
Tax incentives for new manufacturing units for certain years.
India currency now fully convertible on current account.
Repatriation of profits freely permitted in most of the industries

16. FISCAL INCENTIVES FOR FPI
Excise Duty rates
� On ice cream, pasta, yeast, etc abolished which was 16% earlier.
� On ready to eat packaged food reduced from 16% to 8%
� On food mixes reduced from 8% to 0%.
� On meat, fish and poultry products reduced from 16% to 8%.
� On aerated drinks reduced from 24% to 16%.
� On Reefer Vans (refrigerated motor vehicles) reduced from 16% TO
8%.
� Dairy machineries completely exempted.
� On unbranded edible preparations of oil increased from nil to 8%.

17. FISCAL INCENTIVES FOR FPI
• Custom Duty Rates
On food processing machinery and their parts reduced from 7.5%
to 5%.
On Packaging Machine to be reduced from 15% to 5%.
On refrigerated vans reduced from 20% to 10%.
• Income tax relief
Rebate allowed - 100% of profits for 5 years and 25% of
profits for the next 5 years, for new industries.

18. RECENT INITIATIVES TO ATTRACT FDI
National Highways Development Project underway To convert
14279 km of highways to 4/6 –lanes connecting:
Four major cities of Delhi, Mumbai, Chennai and Kolkata
North - South (Srinagar to Kanyakumari) and East–West (Silchar to
Porbandar) corridors Ports
Infrastructure for post harvest management, logistics (including
cold chain), markets, retailing, are priority areas.
Plan to set up modern markets with auction centers.
Attracting FDI & private sector investment in infrastructure

19. AGRI EXPORT ZONES & FOOD PARKS
• 60 Agri Export Zones set up for end-to-end development for
export of specific product from geographically contiguous areas
53 Food Parks approved to enable small and medium food and
beverage units to set up and to use capital intensive common
facilities such as cold storage, ware house, quality control labs,
effluent treatment plant, etc.

20. 5 YEAR’S PLAN FOR FOOD INDUSTRIES
• INFRASTRUCTURE DEVELOPMENT.
• QUALITY ASSURANCE, CODEX STANDARDS, AND R&D.
• HUMAN RESOURCE DEVELOPMENT.
• SUPPLY CHAIN IMPROVEMENT & PROMOTION.
• ROOT CAUSE ANALYSIS.

21. FUTURE IS HERE FOOD INDUSTRIES

22. THANK YOU
ANY QUESTIONS