Topic: Food Industry in India and Present Status of Food Industry in India
Introduction
FOOD industry is vital for India—employment generation, export revenue, and agricultural
integration.
Overview of the Food Industry in India
• Definition: What constitutes the food industry (agriculture, processing, distribution,
and retailing).
• Economic Contribution: Highlight key statistics such as India's share in global food
production and its role in GDP.
• Major Segments: Packaged foods, dairy, beverages, frozen foods, and processed
fruits & vegetables.
• Case Studies: Examples of major players like Amul, ITC, and Nestlé India.
Present Status of Food Industry in India
• Current Trends:
o Increasing demand for processed and convenience foods.
o Growth of organized retail and e-commerce in food products.
o Technological advancements in food preservation and safety.
• Government Initiatives:
o Schemes like PMKSY (Pradhan Mantri Kisan Sampada Yojana) to boost food
processing infrastructure.
o FDI policies in food processing.
• Challenges:
o Lack of cold storage infrastructure.
o Food waste and post-harvest losses.
o Competition with global players.
Largest Sectors:
Contributes significantly to production, growth, consumption, and export.
Covers: fruits, vegetables, spices, dairy, meat, poultry, fisheries, grain processing, and
consumer products (e.g., chocolates, mineral water).
Foreign Direct Investment (FDI):
• 2023-24: Estimated at ₹5037 crores / USD 608 million.
Exports in 2023-24
• Total exports: ₹63,822.27 crores / USD 7,701.66 million.
• Key exported products:
o Mango Pulp: ₹624.29 crores / USD 75.35 million.
o Processed Vegetables: ₹6523.47 crores / USD 787.28 million.
o Groundnuts: ₹7135.35 crores / USD 860.73 million.
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o Miscellaneous Preparations: ₹10989.97 crores / USD 1326.24 million.
o Cocoa Products, Jaggery, and Confectionery, Alcoholic Beverages, and
Prepared Animal Feed.
Location Benefit:
• Proximity to Europe, Middle East, and Asian markets (e.g., Japan, Singapore).
• Example: High trade value between India and the Gulf region.
Government Initiatives
• Make in India:
o Focus on investment, innovation, skill development, and manufacturing
infrastructure.
• Policy Support:
o Approvals for joint ventures, foreign collaborations, and export-oriented units.
Retail Sector Transformation
• Growth Potential:
o CAGR: 3.0% (2022-2030) in food and grocery retail.
• Global Opportunities:
o 72% of global food sales through superstores.
o India: Least saturated and competitive global market for organized retail.
Challenges
• Non-competitiveness due to:
o Cost and quality of marketing channels.
• Need for retail and distribution revolution to match global standards.
Example:
Amul (Anand Milk Union Limited) was founded in 1946 in Anand, Gujarat, by visionary
leaders like Tribhuvandas Patel and Dr. Verghese Kurien. It was established to eliminate
middlemen and empower farmers by creating a direct link between milk producers and
consumers.
White Revolution:
• Amul played a central role in India's White Revolution, turning the country from a
milk-deficient nation into the largest producer of milk and dairy products globally.
• This transformation was spearheaded by Operation Flood, led by Dr. Kurien under
the National Dairy Development Board (NDDB).
• Amul adopted a three-tier cooperative structure:
• Village-level societies collected milk from farmers.
• District-level unions processed the milk.
• State-level federations marketed the products.
Dr Hemlata, Assistant Professor, SOAG, Galgotias University
• This ensured fair prices for farmers and affordability for consumers.
• Amul introduced packaged milk, butter, cheese, ice cream, and innovative products like
tetra pack milk.
• Consistent quality and innovation in packaging and marketing kept them ahead of
competitors.
• The famous Amul Girl advertising campaign is one of the longest-running and most loved
campaigns in India.
• Slogans like “Utterly Butterly Delicious” resonate across generations.
• Global Presence: Amul products are exported to over 50 countries, including the USA,
Canada, and UAE.
• Revenue: Amul is a multi-billion-dollar brand, with its turnover consistently growing each
year.
• Socioeconomic Transformation: It empowered over 3.6 million farmers, contributing to
rural prosperity and women's empowerment.
• Sustainability: Amul has adopted eco-friendly practices, such as reducing carbon
footprints and utilizing renewable energy in production.
• Empowerment through Cooperatives: Collective action can lead to significant
socioeconomic benefits.
• Innovation and Branding: Strong marketing and product innovation are key to
staying relevant in a competitive market.
• Focus on Quality: Consistent quality builds customer trust and loyalty over time.
• Rural Development: Economic growth can coexist with rural upliftment.
Amul's journey is a shining example of how local initiatives can create global impact and
foster
Dr Hemlata, Assistant Professor, SOAG, Galgotias University
Lecture 2: Organization in food industry
Global Scenario
• Nestlé: The largest food and beverage company, with a portfolio covering baby food,
bottled water, breakfast cereals, pet care, and more.
• PepsiCo: Focused on beverages and snacks with strong global distribution.
• Unilever: Known for its processed food and condiments, besides non-food categories.
• Cargill: Specializes in agricultural and processed food supply chain management.
• The Kraft Heinz Company: Major producer of packaged food products.
Global Trends:
• Emphasis on sustainability in sourcing raw materials.
• Growth in plant-based and health-focused foods.
• Use of advanced technology such as AI in supply chain and product innovation.
Trade Organizations:
• Food and Agriculture Organization (FAO): A United Nations body focusing on
food security.
• Codex Alimentarius Commission: Sets international food standards for safety and
quality.
Market Drivers:
• Rising demand for convenience foods.
• Expansion of organized retail chains globally.
Indian Scenario
1. Key Organizations:
o Amul (GCMMF): A leader in the dairy segment, spearheading the White
Revolution in India.
o ITC: Diversified food offerings including ready-to-eat, snacks, and frozen
foods.
o Britannia Industries: Leading producer of bakery and dairy products.
o Parle Products: Known for biscuits, snacks, and confectioneries.
2. Government Initiatives:
o Make in India: Encourages investment in food processing.
o Pradhan Mantri Kisan SAMPADA Yojana: Supports agro-processing
clusters.
o National Mission on Food Processing: Facilitates infrastructure and capacity
building.
3. Export Statistics:
o Major exports include processed fruits, vegetables, cereals, and seafood.
o India's geographical advantage enhances exports to the Middle East, Europe,
and Southeast Asia.
4. Challenges:
Dr Hemlata, Assistant Professor, SOAG, Galgotias University
o Limited adoption of organized retail (~20% of the market).
o High wastage due to lack of infrastructure in cold storage and supply chain.
5. Trends:
o Surge in organic food production and export.
o Growing focus on functional foods and nutraceuticals.
Organization for Quality ND CERTIFICATION OF FOOD PRODUCTS AND INDUSTRY
1. Food Safety and Standards Authority of India (FSSAI):
o The apex body responsible for regulating and supervising food safety.
o Ensures the safety, hygiene, and standardization of food products.
2. Bureau of Indian Standards (BIS):
o Provides standards for various food products to ensure quality and safety.
o Certifies products with the ISI mark.
3. Agricultural and Processed Food Products Export Development Authority
(APEDA):
o Promotes the export of agricultural and processed food products.
o Ensures quality checks and standards for export.
4. Export Inspection Council (EIC):
o Regulates the quality control and inspection of food exports.
5. National Accreditation Board for Testing and Calibration Laboratories (NABL):
o Accredits laboratories that conduct food product quality testing.
6. Central Food Technological Research Institute (CFTRI):
o Provides technical support for food quality analysis and testing.
7. National Institute of Nutrition (NIN):
o Focuses on food nutrition standards and conducts research on food safety.
8. Spices Board of India:
o Regulates the quality of spice products in India for export and domestic
consumption.
9. Tea Board of India and Coffee Board of India:
o Ensure quality checks and standardization in the tea and coffee industries,
respectively.
institutes working on food technology and its advancements both in India
• Central Food Technological Research Institute (CFTRI), Mysore
• A premier institute focusing on food technology research, food safety, and innovation
in processing technologies.
• National Institute of Food Technology, Entrepreneurship, and Management
(NIFTEM), Haryana
• A central institute for research, education, and innovation in food processing and
technology.
• Indian Institute of Food Processing Technology (IIFPT), Tamil Nadu
• Engages in advanced research and development in food processing and post-harvest
technology.
Dr Hemlata, Assistant Professor, SOAG, Galgotias University
• Defence Food Research Laboratory (DFRL), Mysore
• Develops specialized food products and technologies for defense forces.
• Agricultural Universities (ICAR-Affiliated)
• Institutes like Punjab Agricultural University (PAU) and GB Pant University of
Agriculture focus on food science research.
• National Dairy Research Institute (NDRI), Karnal
• Works on dairy technology, food processing, and animal nutrition.
• CSIR Institutes
• Various Council of Scientific & Industrial Research (CSIR) labs, including the
Institute of Himalayan Bioresource Technology (IHBT), focus on food processing and
bioresource utilization.
institutes working on food technology and its advancements both in WORLD
• University of California, Davis (UC Davis), USA
• Known for its programs in food science and agricultural technology.
• Massachusetts Institute of Technology (MIT), USA
• Focuses on advanced food technologies and sustainability research.
Dr Hemlata, Assistant Professor, SOAG, Galgotias University
LECTURE 3: Introduction to operations of food industry
The food industry encompasses all operations involved in producing, processing,
distributing, and marketing food products. Plays a crucial role in economic growth,
employment, food security, and value addition to agricultural produce. Contributes to
international trade and connects primary agricultural sectors with consumers.
Scope of the Food Industry
Sub-sectors:
• Agriculture-based industries: Fruits, vegetables, and grains.
• Processing industries: Dairy, meat, fish, and poultry.
• Packaged foods: Confectionery, beverages, and ready-to-eat products.
• Retail and export markets: Supermarkets, local stores, and global markets.
Operations in the Food Industry
• Raw Material Procurement: Sourcing quality inputs from farms.
• Processing & Manufacturing: Conversion of raw materials into consumable
products.
o Unit operations: Cleaning, sorting, grading, grinding, and pasteurization.
• Packaging: Ensures product safety, branding, and shelf-life extension.
• Storage & Transportation: Refrigeration, warehousing, and distribution to markets.
• Retail & Marketing: Consumer outreach through advertisements and point-of-sale
strategies.
Operational Challenges
• Quality Control: Maintaining standards in hygiene, nutrition, and safety.
• Supply Chain Management: Efficient logistics and reduction of post-harvest losses.
• Sustainability: Reducing environmental impact, energy use, and waste.
• Regulatory Compliance: Adhering to national and international food safety laws.
Technological Advancements
• Automation: Use of robotics and AI for efficiency in processing.
• Traceability Systems: Ensuring transparency in the food supply chain.
• Cold Chain Logistics: Temperature-controlled storage and transportation.
• Smart Packaging: Indicators for freshness and quality.
Importance of Food Processing in Agribusiness
• Value Addition: Enhances the economic value of raw produce.
• Employment Generation: Opportunities in production, distribution, and marketing.
• Export Potential: High demand for processed and packaged foods globally.
Government and Industry Collaboration
• Government Initiatives:
Dr Hemlata, Assistant Professor, SOAG, Galgotias University
o "Make in India" program for food processing.
o Subsidies and tax benefits for food startups.
• Public-Private Partnerships (PPP): Collaboration for infrastructure development.
Future Trends
• Plant-Based Foods: Rising demand for vegan and sustainable products.
• Health Foods: Focus on organic, low-calorie, and fortified products.
• Digital Integration: E-commerce and direct-to-consumer channels.
• • The food industry is a dynamic and integral part of the agribusiness sector.
• • Innovations, sustainability, and consumer-centric operations will drive future
growth.
References
1. Government of India's food processing sector reports.
2. International Food and Agribusiness Management Association (IFAMA) publications.
3. Reports from the Ministry of Food Processing Industries (MoFPI), India.
Dr Hemlata, Assistant Professor, SOAG, Galgotias University
Lecture 4: Deteriorative factors and hazards during processing, storage, handling
and distribution
Introduction
In agribusiness, maintaining the quality and safety of agricultural products during processing,
storage, handling, and distribution is critical. Several factors and hazards can lead to product
deterioration, causing economic losses and reducing consumer trust. These factors can be
categorized into physical, chemical, biological, and environmental aspects.
1. Deteriorative Factors During Processing
Processing involves converting raw agricultural products into consumable or marketable
forms. Improper processing can lead to product degradation.
a. Physical Factors
• Mechanical damage: Caused during peeling, cutting, grinding, or crushing.
• Temperature changes: Overheating during drying, pasteurization, or sterilization
may destroy nutrients and flavor.
b. Chemical Factors
• Nutrient losses: Due to oxidation of vitamins (like Vitamin C) and degradation of
proteins during thermal processing.
• Flavour deterioration: Caused by the Maillard reaction or lipid oxidation.
c. Biological Factors
• Enzyme activity: Natural enzymes in fruits and vegetables may cause browning (e.g.,
in apples and potatoes) or spoilage.
• Microbial contamination: Poor sanitation during processing can introduce harmful
bacteria, yeasts, or molds.
2. Deteriorative Factors During Storage
Storage is crucial to preserve the quality of products until they reach the market or consumer.
a. Physical Factors
• Temperature fluctuations: May lead to condensation, frost formation, or loss of
product freshness (e.g., in cold storage).
• Humidity control: Excess moisture can promote microbial growth, while low
humidity can cause desiccation.
b. Chemical Factors
• Oxidation: Lipids and fats in products can oxidize, leading to rancidity.
Dr Hemlata, Assistant Professor, SOAG, Galgotias University
• Nutrient degradation: Exposure to light can degrade vitamins like riboflavin and
Vitamin A.
c. Biological Factors
• Pest infestation: Insects and rodents can destroy stored grains or packaged foods.
• Fungal contamination: High moisture levels can lead to mold growth, producing
harmful mycotoxins.
d. Environmental Hazards
• Contamination: Poor storage hygiene may introduce foreign materials like dirt, dust,
or chemicals.
• Packaging issues: Damaged packaging can lead to leakage, spoilage, or
contamination.
3. Deteriorative Factors During Handling
Handling involves transporting and preparing products for storage or sale. Improper handling
leads to mechanical, microbial, and environmental damages.
a. Mechanical Damage
• Bruising: Common in fruits like apples, bananas, and mangoes due to rough
handling.
• Cracking: In grains or nuts during transport and packaging.
b. Cross-contamination
• Contaminants from equipment, workers, or the environment can affect product safety.
c. Improper Equipment Use
• Using non-food-grade containers or equipment can introduce harmful residues.
4. Deteriorative Factors During Distribution
Distribution involves transporting products from production sites to markets or consumers.
Challenges in logistics can compromise quality.
a. Temperature Abuse
• Perishables like dairy, meat, and fresh produce require cold chain logistics. Improper
refrigeration can lead to spoilage.
Dr Hemlata, Assistant Professor, SOAG, Galgotias University
b. Vibration and Shock
• Excessive movement during transportation can cause damage to delicate products like
eggs and soft fruits.
c. Packaging Failures
• Improper sealing or breakage of containers during distribution can lead to
contamination or spillage.
d. Environmental Exposure
• Exposure to rain, sunlight, or pollutants can deteriorate product quality.
5. Hazards
The hazards associated with these deteriorative factors can be classified into three main
categories:
a. Physical Hazards
• Presence of foreign materials such as glass, plastic, or metal.
• Mechanical damage leading to unappealing products.
b. Chemical Hazards
• Accumulation of pesticide residues, heavy metals, or cleaning agents.
• Formation of harmful substances like acrylamide during frying or baking.
c. Biological Hazards
• Growth of pathogens such as Salmonella, E. coli, and Listeria in improperly
processed or stored products.
• Mycotoxin contamination from molds.
Strategies to Prevent Deterioration and Hazards
1. Proper Processing Techniques:
o Use of controlled temperatures, appropriate packaging, and hygiene standards.
2. Storage Optimization:
o Maintain temperature and humidity levels specific to the product (e.g., cold
storage for perishable items).
o Use airtight and pest-resistant containers.
3. Efficient Handling Practices:
o Train workers on proper handling techniques to avoid mechanical damage.
o Sanitize equipment regularly.
4. Improved Distribution Systems:
o Adopt cold chain logistics for temperature-sensitive products.
o Ensure protective packaging for long-distance transport.
5. Hazard Analysis and Critical Control Points (HACCP):
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o Implement HACCP principles to identify and mitigate risks at each stage of
the supply chain.
Conclusion
Understanding the deteriorative factors and hazards during processing, storage, handling, and
distribution is vital for agribusiness managers to ensure product quality, reduce losses, and
maintain consumer safety. Implementing proper management strategies across the supply
chain can mitigate these risks effectively.
Dr Hemlata, Assistant Professor, SOAG, Galgotias University
Lecture 5: Basics of Food Processing: Basic principles of food processing and food
preservation through technology interventions
Introduction
Food processing and preservation play a crucial role in ensuring food security, reducing post-
harvest losses, and delivering safe, nutritious products to consumers. By using advanced
technology and principles of food science, the shelf life, safety, and quality of food products
can be enhanced, meeting the growing demands of the modern food supply chain.
1. What is Food Processing?
Food processing refers to the set of methods and techniques used to transform raw
ingredients into consumable food products. It involves several stages such as cleaning,
grading, preserving, packaging, and distribution.
Objectives of Food Processing:
• Enhance shelf life of perishable products.
• Improve food safety by eliminating harmful microorganisms.
• Add value to raw agricultural products.
• Diversify products for consumer convenience.
• Minimize post-harvest losses.
2. What is Food Preservation?
Food preservation focuses on preventing spoilage and maintaining the nutritional and sensory
qualities of food for a longer period. It involves various techniques to slow down microbial
growth, enzyme activity, and chemical changes that lead to deterioration.
Objectives of Food Preservation:
• Retain nutritional value and food quality.
• Prevent wastage due to spoilage.
• Ensure availability of seasonal foods throughout the year.
• Facilitate storage and transportation.
3. Principles of Food Processing and Preservation
Food processing and preservation are guided by scientific principles that address spoilage
factors and maintain food quality.
a. Thermal Processing
• Heating: Includes methods like pasteurization, sterilization, and canning to destroy
microorganisms and inactivate enzymes.
• Cooling: Techniques like refrigeration and freezing slow down microbial activity and
enzyme reactions.
Dr Hemlata, Assistant Professor, SOAG, Galgotias University
b. Moisture Removal
• Drying and Dehydration: Reducing water activity to inhibit microbial growth (e.g.,
dried fruits, powdered milk).
• Freeze-Drying: A technology that removes moisture under vacuum, preserving
nutrients and texture.
c. Use of Preservatives
• Chemical Preservatives: Addition of natural or synthetic compounds like salts,
acids, and sulfites to extend shelf life.
• Natural Preservation Methods: Use of sugar, salt, or vinegar in pickling or
fermentation.
d. Modified Atmosphere Storage
• Altering the composition of gases in packaging to reduce oxidation and microbial
spoilage (e.g., vacuum packaging, nitrogen flushing).
e. Fermentation
• Using beneficial microorganisms to produce products like yogurt, pickles, and wine.
Fermentation enhances preservation and improves nutritional value.
f. Irradiation
• Application of ionizing radiation to kill pathogens, insects, and spoilage
microorganisms without altering the food's taste or appearance.
g. Hurdle Technology
• Combining multiple preservation methods (e.g., refrigeration + modified atmosphere
packaging + preservatives) to create a "hurdle" for microbial growth.
4. Technology Interventions in Food Processing
Modern technology has revolutionized food processing and preservation. Below are some
key advancements:
a. Cold Chain Systems
• Integrated refrigeration systems ensure temperature control throughout the supply
chain, preserving perishables like fruits, vegetables, dairy, and meat.
b. High-Pressure Processing (HPP)
• Uses high-pressure water to destroy microbes without heat, retaining food’s freshness
and nutrients.
Dr Hemlata, Assistant Professor, SOAG, Galgotias University
c. Aseptic Processing and Packaging
• Sterilizes both food and packaging material, ensuring extended shelf life without the
need for refrigeration (e.g., Tetra Pak technology).
d. Intelligent Packaging
• Use of sensors in packaging to monitor food freshness, pH levels, and temperature
changes.
e. Nanotechnology in Food
• Improves shelf life through nanocoatings on food and packaging. It also aids in
nutrient delivery via nanoencapsulation.
f. Automation and AI in Processing
• Automated sorting, grading, and packaging machines improve efficiency and reduce
human error.
5. Benefits of Food Processing and Preservation
1. Enhanced Food Security: Ensures a stable supply of food products throughout the
year.
2. Reduction in Post-Harvest Losses: Minimizes spoilage of perishable crops.
3. Increased Market Value: Processed foods fetch better prices compared to raw
produce.
4. Convenience for Consumers: Ready-to-eat meals, frozen foods, and packaged goods
save time and effort.
5. Support for Global Trade: Export-friendly processed foods like canned fruits and
vacuum-packed vegetables have longer shelf lives.
6. Challenges in Food Processing and Preservation
1. Nutritional Losses: Excessive processing or heating can degrade nutrients like
vitamins.
2. Environmental Impact: High energy consumption and waste generation during
processing and packaging.
3. Consumer Perception: Demand for minimally processed and organic foods
challenges traditional processing methods.
4. Cost of Advanced Technology: High-tech systems like HPP or irradiation may not
be affordable for small-scale producers.
7. Examples of Food Preservation Techniques
• Canning of fruits and vegetables: Heat-treated and sealed to prevent microbial
growth.
• Freezing of seafood: Maintains quality for months.
• Pickling of cucumbers: Salt and vinegar act as preservatives.
Dr Hemlata, Assistant Professor, SOAG, Galgotias University
• Vacuum packaging of meats: Prevents oxidation and spoilage.
• Dehydration of spices: Reduces water content, preventing microbial contamination.
8. Case Studies in Food Processing
Case 1: Milk Pasteurization
• Pasteurization heats milk to a specific temperature for a set time, killing harmful
bacteria while preserving taste and nutrients.
Case 2: Cold Storage of Apples
• Controlled Atmosphere (CA) storage maintains low oxygen and high carbon dioxide
levels, extending apple shelf life up to 10 months.
Conclusion
Food processing and preservation are essential for sustaining food supply chains, reducing
wastage, and ensuring safety. Leveraging modern technology and adhering to scientific
principles ensures high-quality, safe, and nutritious food products for consumers.
Dr Hemlata, Assistant Professor, SOAG, Galgotias University
