Various economic figures relating to the food processing setup in India, Initiatives by the government, relevance to the state of Uttarakhand and its impact on the Indian economy.

1. “PRESENT STATUS OF PROCESSING OF
VEGETABLES AND FRUITS IN INDIA”
Prepared by: Vivek Chauhan
(16091)
Submitted to: Er. Kirti Kumari Ma’am

2. What are Processed Foods?
Food processing sector is one of the largest sectors
in India in terms of production, growth,
consumption and export. India’s food processing
sector covers Fruits and Vegetables: Spices, meat
and poultry, milk and milk products, alcoholic
beverages, fisheries, plantation, grain processing and
other consumer products like confectionary.

3. What is Food Processing?
• Food Processing includes process under which any raw product of
agriculture, dairy, animal husbandry, meat, poultry or fishing is
transformed through a process (involving employees, power,
machines or money) in such a way that its original physical
properties undergo a change and the transformed product has
commercial value and is suitable for human and animal
consumption.
• It also includes the process of value addition to produce products
through methods such as preservation, addition of food additives,
drying etc. with a view to preserve food substances in an effective
manner, enhance their shelf life and quality.

4. History
• Dates back to the prehistoric agesSlaughtering, fermenting, sun
drying, preserving with salt, and various types of cooking
• .Remained essentially the same until the advent of the industrial
revolution.Modern food processing technology - 19th and 20th
century-developed to serve military.
• Nicolas Appert invented vacuum bottling technique.1810 -
development of tinning and canning by Peter Durand.
• 1862 - Pasteurization, discovered by Louis Pasteur.
20th century –Growth of food processing with advances - spray
drying, juice concentrates, freeze drying.Introduction of artificial
sweeteners, colouring agents.Preservatives such as sodium
benzoate.
• Late 20th century-Dried instant soups, reconstituted fruits and
juices, and self cooking meals were developed.

5. Status of Food Processing In India
• India is the world's second largest producer of fruits & vegetables
after China but hardly 2% of the produce is processed.
• In spite of a large production base, the level of processing is low
(less than 10%). Approximately 2% of fruits and vegetables are
processed. Lack of adequate processable varieties continues to
pose a significant challenge to this sector.
• More than 75% of the industry is in unorganized sector.
• Most processing in India can be classified as primary processing,
which has lower value-addition compared to secondary processing.
There is a need to move up the value chain in processed food
products to boost farmer incomes.
• At present, India’s agricultural exports predominantly consist of raw
materials, which are then processed in other countries, again
indicating the space to move up the value chain.

6. IN SPECIAL RELEVANCE TO UTTRAKHAND
• Uttarakhand’s favourable agro-climatic conditions with 4
agro-climatic zones enables cultivation of a multitude of
crops, vegetables and fruits round the year
• Uttarakhand has become a leading fruit cultivating State of
India .
• It is ranked No. 1 in production of Peaches and Plums,
ranked No. 2 in production of Walnuts and Pears and
ranked No. 3 in Apple Cultivation amongst all Indian States
(2015- 2016) .
• A total of 125 major food processing units (which include
all the segments of food) have been established in the State
out of which 52 units are Horticulture based and supported
under MIDH Scheme.

11. Government Initiatives
• Some of the major initiatives taken by the Government of India to improve
the food processing sector in India are as follows:
• The Government of India aims to boost growth in the food processing
sector by leveraging reforms such as 100 per cent Foreign direct
investment (FDI) in marketing of food products and various incentives at
central and state government level along with a strong focus on supply
chain infrastructure.
• In Union Budget 2017-18, the Government of India has set up a dairy
processing infra fund worth Rs 8,000 crore (US$ 1.2 billion).
• The Government of India has relaxed foreign direct investment (FDI)
norms for the sector, allowing up to 100 per cent FDI in food product e-
commerce through automatic route.
• The Food Safety and Standards Authority of India (FSSAI) plans to invest
around Rs 482 crore (US$ 72.3 million) to strengthen the food testing
infrastructure in India, by upgrading 59 existing food testing laboratories
and setting up 62 new mobile testing labs across the country.

12. Contd.
• The Indian Council for Fertilizer and Nutrient Research (ICFNR) will
adopt international best practices for research in fertiliser sector,
which will enable farmers to get good quality fertilisers at
affordable rates and thereby achieve food security for the common
man.
• The Ministry of Food Processing Industries announced a scheme for
Human Resource Development (HRD) in the food processing sector.
The HRD scheme is being implemented through State Governments
under the National Mission on Food Processing. The scheme has
the following four components:
– Creation of infrastructure facilities for degree/diploma courses in food
processing sector
– Entrepreneurship Development Programme (EDP)
– Food Processing Training Centres (FPTC)
– Training at recognised institutions at State/National level

14. Market Size
• The Indian food and grocery market is the world’s sixth largest, with
retail contributing 70 per cent of the sales. T
• The Indian food processing industry accounts for 32 per cent of the
country’s total food market, one of the largest industries in India
and is ranked fifth in terms of production, consumption, export and
expected growth.
• It contributes around 8.80 and 8.39 per cent of Gross Value Added
(GVA) in Manufacturing and Agriculture respectively, 13 per cent of
India’s exports and six per cent of total industrial investment.
• The Indian gourmet food market is currently valued at US$ 1.3
billion and is growing at a Compound Annual Growth Rate (CAGR)
of 20 per cent. India's organic food market is expected to increase
by three times by 2020#.
• The online food ordering business in India is in its nascent stage, but
witnessing exponential growth.

15. FDI POLICY
• 100% FDI is permitted under the automatic
route in the Food and Processing industry in
India.
• 100% FDI is allowed through government
approval route for trading, including through
e-commerce in respect of food products
manufactured or produced in India

16. Objectives of Draft National Food
Processing Policy 2017
• To reduce wastages, increase value addition, ensure better prices
for farmers while ensuring availability of affordable and quality
produce to consumers
• To address the challenges of malnourishment and malnutrition by
ensuring availability of nutritionally balanced foods
• To make food processing more competitive and future ready
through creation of adequate infrastructure facilities along the
supply chain, use of modern technology and innovation, promoting
traceability, food safety, encouraging optimum capacity utilization
of assets and resources.
• To position India as the most preferred investment destination for
the agribusiness and food processing.
• To generate more opportunities for the development of the
agribusiness and Food Processing Industry, and create employment.

17. Problems:
Farm level problems
• Poor yield of farm produce and therefore low returns.
• Lack of material resources necessary for development.
• Primitive methods of farming.
• No control on the quality of inputs and lack of finance to manage.
• Vagaries of weather.
• Unavailability of reliable handling and transportation system.
• Lack of storage facilities at farm.
Distributors’ problems
• Lack of modern transportation facilities and high cost
• Inadequate cold storage faculties
• Irregular quality and quantity of farm produce

18. Contd.
Processing industries problem
• Financing
• Higher import duties
• Higher cost of raw material and packaging
• Inadequate transport and cold storage facilities
• Infrequent availability of refrigerated containers
• Staggering advertising costs
• Limited domestic market
Consumer discontent
• Does not get value for money
• The price variation is a day to day affair
• Continued dependence on seasonal products
• Lack of variety of semi processed or prepared convenience food at
affordable prices.

19. Production share of various crop
types:

20. Policy of Food Processing Sector
• National Food Processing Policy aims to increase the level
of food processing from 10% in 2010 to 25% in 2025.
• The National Mission on Food Processing and the Ministry
of Food Processing Industries have launched a new
centrally sponsored scheme in April 2012, for
implementation through state and union territory
governments.
• The basic objective of the National Mission on Food
Processing is decentralization of the implementation of
food processing related schemes for ensuring substantial
participation of state and union territory governments.

21. Economic figures about Indian export
of processed food

22. Major foreign investers in Food
Processing-
 Kraft (USA)
 Mars (USA)
 Nestle (Switzerland)
 McCain (Canada)
 Danone (France)
 Ferrero (Italy)
 Del Monte (USA)
 Kagome (Japan)
 Kelloggs (USA)
 Pepsi (USA)
 Unilever (Anglo Dutch)
 Perfetti (Italy)
 Cargill (USA)
 Coca Cola (USA)
 Hershey (USA)
 Major exported

23. Challenges
• Extensive use of fertilizers, pesticides and other chemicals has raised
concerns about the quality of food which should be looked into. Further,
protection is needed from unfair and hazardous practices such
adulteration.
• Care should be taken as processed foods may not be nutritionally
balanced and may pose a health risk especially for children unless
fortified. This could trigger a negative perception regarding processed
foods and could likely impact the economic gains made by this sector.
• Low value-added in processing: There is major fragmentation of food
processing capacity, with a large unorganized segment and widespread
use of primitive processing. This results in lower value-addition at the
processing stage, especially from a nutritional point of view.
• Limited ability to control quality and safety: The sheer number of players,
especially in the large unorganized segment, involved in the food value-
chain, makes implementation of quality and safety norms difficult. This
has led to practices such as milk adulteration and use of carbide for fruit
ripening becoming more widespread.
• Low consumer awareness: Consumer awareness is a critical aspect of an
improved nutritional situation in the country. Consumers currently lack
awareness of several nutritional and food safety and quality aspects.

24. Significance
• Employment Generation
• Doubling of farmers’ income
• Reduce malnutrition
• Reduce food wastage
• Boosts Trade and Earns Foreign exchange
• Curbing Migration
• Curbing Food Inflation
• Crop-diversification
• Preserve the nutritive quality of food and prolongs the
shelf life
• Enhances the quality and taste of food
• Enhances consumer choices

25. Suggestions
• Storage capacities and infrastructure should be increased.
• Develop the agricultural facility with good agricultural practice
which leads to the transition from staple food crops to
diversification of crops.
• Backward linkages to farmers need to be made more
robust. Contract farming can be promoted. According to the Model
Contract Farming Act, 2018, the contract will specify the quantity,
quality and price of produce being supplied. This would shield
farmers from price volatility, subject to quality commitments.
• Skilling is required at two levels. First at the farm gate in promoting
agricultural best practices and in processing activities.
• Public investment and connectivity should be increased.

26. Contd.
• Slaughter animal rules should be framed in a comprehensive policy
framework.
• Farm pattern diversification which leads to a production of variety
of crops other than constant set of crops which creates lot of job
opportunities.
• Second Green Revolution should be updated with the diversified
technologies.
• We have to encourage the domestic startups and industry than the
international companies.
• There should be a Centre of Excellence between centre and state.
• Should have more training institutes for upcoming entrepreneurs
and it should be in all states.Scholarship should be given to the
upcoming entrepreneurs.
• New technology should be updated in the training institutes and
skill development should be given the top most priority.

27. Reference:
• https://investuttarakhand.com/themes/backend/
uploads/IP-
UK%20Food%20processing%20sector%20profile
%202018_09_05.pdf
• http://ecoursesonline.iasri.res.in/mod/page/view
.php?id=123999
• https://slideplayer.com/slide/12737567/
• https://www.ibef.org/industry/indian-food-
industry.aspx
• https://www.drishtiias.com/to-the-
points/paper3/food-processing-in-india

28. Thank You..!