Food processing industry in India

1. Scope and Significance
of food Processing
Industry in India
• Subject : Bakery and Confectionery
Technology

3. Introduction
 Food Processing is the set of methods and
techniques used to transform raw ingredients
into food or to transform one form of food into
another form for consumption by humans and
animals.
 It also includes the process of value addition to
products through methods such as preservation,
addition of food additives, drying etc.

4. Food processing industry in India
can be segmented as follows:
 Cereal/ pulse milling
 Fruit & vegetable processing
 Milk & milk products
 Beverages like coffee, tea &
cocoa
 Fish, poultry, eggs &
products
 Meat & meat products

5. Food processing industry in India
can be segmented as follows:
 Aerated waters/soft drinks
Beer/alcoholic beverages
 Bread, biscuits & other bakery
products
 Edible oil/fats.
 Confectioneris

6. Significance of food processing
industry
The Food Processing Industry (FPI) is
of enormous significance as it
provides vital linkages and synergies
that it promotes between the two
pillars of the economy, i.e.
Agriculture and industry.

7. Significance
Employment generation : It provides
direct and indirect employment
opportunities, because it acts as a bridge
between Agriculture and Manufacturing.
Doubling of farmers’ income: With the
rise in demand for agri-products there will
be commensurate rise in the price paid to
the farmer, thereby increasing the
income.

8. Significance
Reduce malnutrition: Processed foods
when fortified with vitamins and minerals
can reduce the nutritional gap in the
population.
Curbing Migration: Food Processing being a
labour intensive industry will provide
localized employment opportunities and
thus will reduce the push factor in source
regions of migration.

9. Significance
 Curbing Food Inflation: Processing increases the
shelf life of the food thus keeping supplies in
tune with the demand thereby controlling food-
inflation.
 Preserve the nutritive quality of food and
prolongs the shelf life by preventing them from
spoilage due to microbes and other spoilage
agents.
 Enhances the quality and taste of food thereby
bringing more choices in food basket.

10. Scope of food processing
industry in India
As per an estimate, India’s current
food processing industry is estimated
at USD 130 Billion and expected to
attract huge domestic and foreign
investment.

11. Some of the key factors which are likely to
increase the demand for processed food and
consequently the food processing industry in
the coming years are –
 Due to rapid urbanization, food habits are
changing rapidly towards value-added
foods. The change is accentuated by the
fact that over 65% of India’s population is
35 or under, who are inclined to have
processed food.

12.  As per an estimate, around 40 percent of
total food production is wasted due to the
inadequate facilities for transportation,
storage, processing and marketing. If these
deficiencies are addressed, there is a huge
scope for the development of the sector.

13. To take advantage of mentioned factors,
the government has initiated the following
measures for the development of the food
processing sector
1: Pradhan Mantri Kisan Sampada Yojana
(PMKSY)
2: Mega Food Parks Scheme
3: Scheme of Cold Chain, Value Addition and
Preservation Infrastructure
4: Modernisation of Abattoirs scheme
5: Make In India
6: Food Processing Fund

14. India’s food processing sector is one of
the largest in the world and its output
is expected to reach US$ 535 billion by
2025-26.
This sector is expected to generate 9
million jobs by 2024.
The Indian food industry is expanding
at a CAGR of 11% and the food
processing sector accounts for 32% of
the total food industry.