The Scope Of Food Processing Industry In India

The Scope Of Food Processing Industry in India Scope of food processing industry in India

The food processing industry of India is the largest in the world. It is expected to double from 19,46,200 crore in 2019-20 to 39,59,000 crore in 2025-26.  

The Indian food processing industry is rapidly evolving. The trend indicates the shift of consumers to processed food. Many states in India which initially were not strong in food processing areas have now shown rising capacities in the past 10 years. The list of states includes Tamil Nadu, Gujrat, Karnataka, and Uttar Pradesh along with Punjab, Haryana, and Maharashtra. Major industries in food processing are sugar, edible oils, grains, beverages, and dairy products. 

Some key facts

  • India ranks 3rd in the world with 11,438 crore egg production in the year 2019-20
  • It is also the second-largest producer of fish. In 2019-20, 14.16 lakh tonnes of fish were produced in India.
  • 19.85 crore tonnes of milk is produced during 2019-20
  • India has shipped seafood worth 49,432 crores during 2019-20
  • There was a massive jump of 26.51% in India’s export of processed food during April-February 2020-21 as compared to the year 2019-20. 
  • Kissan, Britannia, Parle, Amul, and MTR are the major players in the food processing market in India.

What is food processing?

Food processing is the process of adding value to raw agricultural, dairy, meat, poultry, or fishing products. The products are transformed using manpower, machines, and money to make them suitable for human consumption. Steps like the addition of food additives, preservatives, drying, etc are followed to enhance their shelf life and quality.     

How is it done?

There are 3 stages involved with the processing of food.

Stage 1– The raw or natural products are cleaned, graded, pre-cooled, and packed for sale. The food items included at this stage are fresh fruits and vegetables, eggs, and a few spices.   

Stage 2 – Primary processing of food involves drying, grinding, milling, and shelling of food. Products that are not edible in their raw form (grains, sugarcane, etc.) are transformed to an edible form (rice, flour, sugar, and pulses) at this processing level. 

Stage 3 – The form and the shape of primary products are significantly modified and more value is added to them. Some examples are bread, noodles, breakfast cereals, pasta, ketchup, etc. 

Significance of food processing in India

  • Food processing connects agriculture and manufacturing industries. Hence, it can provide direct and indirect employment opportunities for Indian citizens.
  • As per a Press Release by the UN Environment Program, in 2019, 17% of the total food available to consumers was wasted. So, this can help reduce food wastage. 
  • Processed food when prepared to keep the necessary vitamins and minerals intact can help in reducing the nutritional gap in the Indian population.  
  • Food processing boosts trade and is an important source of foreign exchange. For example, India’s basmati rice has a great demand in Middle Eastern Countries.    
  • Since food processing increases the shelf life of food, it can surely contribute to controlling food inflation. Processed food is available throughout the year, no matter what season. For example, Frozen peas can be availed easily at any time of the year.  
  • Last but not least, by bringing more choices to your table, food processing methods can enhance the quality and taste of the food. 

The food processing industry has a huge scope specific to the Indian context. It has the potential to lift millions of Indians out of malnutrition and poverty, and ensure there is less wastage of food in the country. Hence, the government is taking crucial steps also keeping in mind the interests of small-scale industries, and domestic and foreign investments.

Buyers from major food processing industries reach mandis to buy agricultural produce at the best prices. Not just the food processing industries, a huge advancement can be seen in age-old mandis also. Agriculture traders have now started using mandi accounting software for handling their daily transactions. This is where accounting software like ChargeERP comes into the picture. It is cloud-based accounting software for agricultural traders such as commission agents that reduces their time and energy by 90%. Some of its key advantages are:

  • Access from anywhere
  • 100% control over data
  • Data security guaranteed
  • Manage team remotely
  • Regional language support
  • Multi-device access
  • Inventory management
  • WhatsApp sharing of Reports
  • Six all-inclusive reports
  • Downloadable Bills & Receipts

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