Status of Fruit and Vegetable Processing Industry

status of food processing industry in emerging food processing industry in India

1. FRUITS AND VEGETABLE PROCESSING STATUS OF FRUIT AND VEGETABLES PROCESSING INDUSTRY Submitted To Dr. Sudhir Kumar Submitted By Mansi Gupta M.Voc.( FPM ) Sem 3 19430FPM002

2. Introduction India is the second largest producer of fruits and vegetables in the world. Our country is known to be a fruit basket of the world. Our per capita consumption of fruits and vegetables for over one billion population is very low. Despite such a large production, their processing is yet to be developed properly. More than 30% of the fruits and vegetable production is unfortunately wasted due to inadequate facilities for processing. The processing includes pre-processing of fruits and vegetables before these are fit to be used for final conversation into processed foods.

3. Role of Processing Industry The food preservation and processing industry has now become more of a necessity than being a luxury. It has an important role in the conservation and better utilization of fruits and vegetables. It is necessary to employ modern methods to extend storage life for better distribution and also processing techniques to preserve them for utilization in the off season on both large scale and small scale.

4. Current Status of Fruit and Vegetable Processing Industry in India As per National Horticulture Database published by National Horticulture Board, during 2015-16, India produced 90.2 million metric tonnes of fruits and 169.1 million metric tonnes of vegetables. The area under cultivation of fruits stood at 6.3 million hectares while vegetables were cultivated at 10.1 million hectares. Though India is the second largest producer of fruits and vegetables in the world, commercial processing of these commodities is less than 2 per cent of production. In spite of growth in the post-reform period, capacity utilization of the food processing industry remains below 50 per cent. The industry already faces the problem of meagre demand due to economic reasons and existing food habits. Increasing value addition activities and processing, as recommended by an expert committee, will require huge investments. India witnesses nearly 4.58 – 15.88%⁹ wastage in fruits and vegetables annually, due to lack of modern harvesting practices and inadequate cold chain infrastructure. Further the processing levels in F&V currently stand at a low of 2%.

5. In FY 2019, ~8.31 Mn tons of fruits and vegetables were processed in India, which is expected to reach 16.39 Mn tons by 2024, expanding at a CAGR of ~14.84% during the FY 2020-FY 2024 period. States accounting for highest no. of Registered Food Processing Units in India State Number of Registered Units Andhra Pradesh 5861 Tamil Nadu 5077 Telangana 3969 Punjab 2906 Maharashtra 2808

6. CHALLENGES OF INDIAN F&V PROCESSING INDUSTRY Percentage of losses estimated for Fruits & Vegetables in the year 2010 were 5.8%- 18.0% due to inefficient cold storage facilities as total existing cold storage capacity in India are only 10.4 per cent of the overall production of fruits and vegetables. 30 – 35% of the total production is wasted because of inefficient cold chain facilities, skilled manpower deficiency and spoilage at various post-harvest stages resulting in decay, flesh softening, and physiological disorder in fresh fruit produce. Employment in unorganized sector Lack of adequate infrastructure Lack of adequate skilled manpower Low productivity level Processing plants with obsolete technology

7. GOVERNMENT SCHEMES & POLICIES RELATED TO F&V PROCESSING INDUSTRY Several schemes have been formulated by the Government of India to provide financial support and aid for establishing modern infrastructure, FPU’s, research & development support and human resource development and other promotional measures to encourage the growth of the industry. Food Park Scheme : Across India, it has approved 50 food Parks to boost the overall food industry. Packaging Centers : This Scheme aims to provide packaging facilities for enhancing the shelf life of the product. Integrated Cold Chain Facility : During 10th Plan, financial assistance have been approved for cold chain facilities. Value Added Centre : The intention of the value added center scheme is to enhance value addition leading to enhanced shelf life. Focus on Infrastructure : Around India, 60 Agri Export Zones have been set up. The Ministry of Food Processing Industry has formulated Vision 2015; Government of India plans to establish 30 mega food parks in public- private partnership mode. Incentives for development of storage facilities : For establishing and operating cold chain facilities and storage facilities, investment linked tax incentive of 100 per cent deduction of capital expenditure has been done. Focus on R&D and modernization : Setting up / Upgradation of Quality Control/ Food Testing Lab, R&D and promotional schemes are the initiatives launched by the Government of India.

8. POTENTIAL OF FRUIT PROCESSING INDUSTRY IN INDIA Due to large potential for production, consumption and expected growth, Fruit processing industry is now regarded as the sunrise sector of the Indian economy. India is the second largest producer with an annual production of around 81285 thousand MT in the year 2013 due to large crop and material base and pool of natural resources in the country . Apple, Banana, mango, guava, grapes and pineapple are the main varieties grown in Maharashtra, Tamil Nadu, Karnataka, Andhra Pradesh, Bihar, Uttar Pradesh, Uttarakhand and Gujarat. Also, India has a great potential to export , as bananas, mangoes, and grapes are getting exported to the destinations like UK, Middle East, Singapore and Hong Kong, estimating to 26509MT, 18002 MT, and 10090MT respectively in the year 2012-2013. With strong technical base, adequate cold chain facilities and efficient logistics services, the 30-35% post harvest losses can be reduced and can make India a leading nation in fruit processing industry.

9. CONCLUSION Fruit processing industry is considered to be the sunrise sector of the Indian economy. India has a strong potential for production, consumption and exports. Citrus, Banana, mango, guava, grapes, pineapple and apple are the major varieties grown in India. Favorable agro -climatic conditions make India a potential producer of fruits. Due to inadequate cold chain facilities, logistics infrastructure and post- harvest handling activities, the fruit processing industry is still in its infant stage. Still, there are opportunities like developed nations are the export destinations in India. High competition from global players and fast obsolescence of technology are the threats faced by the industry.

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