Scope and significance of food processing industry in India

Food processing industry in India

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

2. 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.

3. 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

4. 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

5. 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.

6. 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.

7. 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.

8. 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.

9. 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.

10. 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.

11. 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.

12. 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

13. 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.