FOOD PROCESSING INDUSTRY
INTRODUCTION
Food processing means the ways that are used to change
raw ingredients into food so that they can be eaten by humans or animals. The food
processing industry uses these processes. Food processing often takes
clean, harvested or slaughtered and butchered components and uses these to
produce attractive and marketable food products. Similar process are used to
produce animal feed.
Purpose of food processing:
Food additives play an important role in preserving the freshness, safety, taste,
appearance and texture of processed foods. Food additives are added for
particular purposes, whether to ensure food safety, or to maintain food quality
during the shelf-life of a product.
Food processing industries and practices include the following:
Cannery
Cooking
Industrial rendering
Meat packing plant
Slaughterhouse
Sugar industry
Vegetable packing plant
Food preservation
Farming
Cattle
Fishing
The Indian food industry is poised for huge growth, increasing its contribution to
world food trade every year. In India, the food sector has emerged as a high-
growth and high-profit sector due to its immense potential for value addition,
particularly within the food processing industry.
Accounting for about 32 per cent of the country’s total food market, The
Government of India has been instrumental in the growth and development of the
food processing industry.
The Indian food and grocery market is the world’s sixth largest, with retail
contributing 70 per cent of the sales. 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#.
Source - https://www.ibef.org/industry/indian-food-industry.aspx
Investments
According to the data provided by the Department of Industrial Policies and
Promotion (DIPP), the food processing sector in India has received around US$
7.54 billion worth of Foreign Direct Investment (FDI) during the period April
2000-March 2017. The Confederation of Indian Industry (CII) estimates that the
food processing sectors have the potential to attract as much as US$ 33 billion of
investment over the next 10 years and also to generate employment of nine million
person-days.
Some of the major investments in this sector in the recent past are:
Global e-commerce giant, Amazon is planning to enter the Indian food
retailing sector by investing US$ 515 million in the next five years, as per
Mr Harsimrat Kaur Badal, Minister of Food Processing Industries,
Government of India.
Parle Agro Pvt Ltd is launching Frooti Fizz, a succession of the original
Mango Frooti, which will be retailed across 1.2 million outlets in the country
as it targets increasing its annual revenue from Rs 2800 crore (US$ 0.42
billion) to Rs 5000 crore (US$ 0.75 billion) by 2018.
US-based food company Cargill Inc, aims to double its branded consumer
business in India by 2020, by doubling its retail reach to about 800,000
outlets and increase market share to become national leader in the sunflower
oil category which will help the company be among the top three leading
brands in India.
Mad Over Donuts (MoD), outlined plans of expanding its operations in India
by opening nine new MOD stores by March 2017.
Danone SA plans to focus on nutrition business in India, its fastest growing
market in South Asia, by launching 10 new products in 2017, and aiming to
double its revenue in India by 2020.
Uber Technologies Inc plans to launch UberEATS, its food delivery service
to India, with investments made across multiple cities and regions.
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.
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
Porter’s Five Model
