{"id":29749,"date":"2024-09-20T19:18:18","date_gmt":"2024-09-20T13:48:18","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=29749"},"modified":"2025-02-08T12:38:40","modified_gmt":"2025-02-08T07:08:40","slug":"food-processing-sector-in-india","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/20-09-2024\/food-processing-sector-in-india","title":{"rendered":"Food Processing Sector in India"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>At the third edition of <strong>World Food India 2024<\/strong>, the Prime Minister said that India has introduced<strong> \u201cwide-ranging\u201d reforms<\/strong> to transform the <strong>food-processing sector in the last 10 years.<\/strong><\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#ebecf0\"><tbody><tr><td><strong>World Food India<\/strong><br>&#8211; The Ministry of Food Processing Industries launched the<strong> first edition of World Food India in 2017.<\/strong><br>&#8211; <strong>Key sectors being showcased include<\/strong> fresh fruits and vegetables, processed foods and value-added products, basmati rice, animal products, cashew nuts, geographical indication (GI) products, organic products, and alcoholic beverages.<br>&#8211; Agricultural and Processed Food Products Export Development Authority (APEDA) has invited <strong>prominent international buyers<\/strong> from approximately 80+ countries.&nbsp;<br>&#8211; It is providing a <strong>platform for Indian exporters <\/strong>to interact directly with buyers, importers, and international trade representatives.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is Food Processing?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Food processing can be defined as the<strong> use of methods and techniques<\/strong> involving equipment, energy, and tools to <strong>transform agricultural products<\/strong> such as grains, meats, vegetables, fruits, and milk into <strong>food ingredients or processed food products.<\/strong><\/li>\n\n\n\n<li>This can include a wide range of activities, such as: <strong>Preparation, Cooking, Preservation, Packaging and Fortification.<\/strong><\/li>\n\n\n\n<li>Formulations and processing techniques are<strong> scientifically developed<\/strong> to deliver food that is safe, eliminating the presence of any harmful chemical contaminants and micro-organisms that could cause food-borne illnesses.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Food Processing Industry in India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The market size of the food processing sector in India is estimated to reach <strong>US$ 1,274 billion in 2027 from US$ 866 billion in 2022.<\/strong><\/li>\n\n\n\n<li>The <strong>growing consumption of food<\/strong> is expected to reach <strong>US$ 1.2 trillion by 2025-26<\/strong>, owing to urbanization and changing consumption patterns.<\/li>\n\n\n\n<li><strong>The Indian food and beverage packaged industry<\/strong> is experiencing substantial growth with market size projected to increase from US$ 33.7 billion in 2023 to US$ 46.3 billion by 2028.\u200b<\/li>\n\n\n\n<li><strong>Reasons for the Growth of Sector: <\/strong>India is the largest producer of milk and spices and one of the leading producers of fruits and vegetables, poultry, and meat.\n<ul class=\"wp-block-list\">\n<li>India has access to several natural resources that provides it with a competitive advantage in the food processing sector.<\/li>\n\n\n\n<li>Due to its diverse agro-climatic conditions, it has a wide-ranging and large raw material base suitable for food processing industries.\u200b<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges&nbsp;&nbsp;<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Cold Chain Logistics:<\/strong> Lack of adequate cold storage facilities leads to significant food wastage, especially for perishable items.<\/li>\n\n\n\n<li><strong>Transportation:<\/strong> Poor road and transport infrastructure delay the movement of goods, affecting freshness and quality.<\/li>\n\n\n\n<li><strong>Complex Compliance: <\/strong>Navigating various regulations and standards set by agencies like FSSAI can be challenging, particularly for small and medium enterprises (SMEs).<\/li>\n\n\n\n<li><strong>Bureaucratic Delays:<\/strong> Obtaining licenses and approvals can be time-consuming, affecting business operations.<\/li>\n\n\n\n<li><strong>Limited Adoption of Modern Techniques:<\/strong> Many small processors lack access to advanced processing technologies and machinery, which limit efficiency and scalability.<\/li>\n\n\n\n<li><strong>Price Sensitivity: <\/strong>Consumers are often price-sensitive, which pressures margins for processors.<\/li>\n\n\n\n<li><strong>Inconsistent Supply: <\/strong>Fluctuations in agricultural production due to weather conditions disrupt the supply chain, leading to shortages and price volatility.<\/li>\n\n\n\n<li><strong>Health Consciousness: <\/strong>Increasing demand for healthier and organic options requires processors to adapt their offerings, which can be resource-intensive.<\/li>\n\n\n\n<li><strong>Changing Tastes: <\/strong>Rapid shifts in consumer preferences necessitate constant innovation and product development.<\/li>\n\n\n\n<li><strong>Waste Management: <\/strong>Efficient waste management systems are needed to minimize the environmental impact of food processing operations.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Government Initiatives<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Initiatives for attracting Investment:<\/strong> Exempting all the processed food items from the <strong>purview of licensing under the Industries (Development and Regulation) Act, 1951.<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>100% Foreign Direct Investment (FDI)<\/strong> permitted through automatic route for the food processing sector subject to sectoral regulations.<\/li>\n\n\n\n<li>1<strong>00% Foreign Direct Investment, <\/strong>under Government approval route, for trading including through e-commerce, in respect of food products manufactured or produced in India.<\/li>\n\n\n\n<li><strong>Lower GST for raw and processed products;<\/strong> more than 71.7% food products under various chapter heads\/sub-heads are covered in lower tax slab of 0% &amp; 5%.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>MoFPI is also implementing a Centrally Sponsored Scheme- <strong>PM Formalisation of Micro Food Processing Enterprises Scheme (PMFME)<\/strong> for providing technical, financial and business support for setting up\/upgradation of 2 lakh Micro Food Processing Enterprises.<\/li>\n\n\n\n<li>MoFPI has also launched the <strong>Production Linked Incentive scheme (PLIS) for the period 2021-22 to 2026-27<\/strong> to create global food champions and improving the visibility of Indian food brands abroad.<\/li>\n\n\n\n<li><strong>Pradhan Mantri Kisan Sampada Yojana (PMKSY): <\/strong>Launched in 2016, this scheme aims to create modern food processing infrastructure and promote the development of food processing units.<\/li>\n\n\n\n<li><strong>National Food Processing Policy:<\/strong> This policy aims to enhance food processing capacity and encourage innovation in the sector.<\/li>\n\n\n\n<li><strong>Market Access:<\/strong> Efforts are being made to improve market access for processed food products through various platforms, including e-commerce and direct selling.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India&#8217;s food ecosystem offers enormous investment opportunities with stimulating growth in the food retail sector encouraging economic policies, and attractive fiscal incentives.&nbsp;<\/li>\n\n\n\n<li>Through the Ministry of Food Processing Industries (MoFPI), Government of India is taking all necessary measures to boost investments in the food processing industry in India.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"has-background\" style=\"background-color:#eaeaea\">Read our detailed article on <strong><a href=\"https:\/\/www.nextias.com\/blog\/food-processing\/\" target=\"_blank\">Food Processing: Sub-Segments, Facts, Opportunities &amp; Challenges<\/a><\/strong><\/p>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/indianexpress.com\/article\/india\/world-food-india-2024-pm-modi-wide-ranging-reforms-undertaken-in-food-processing-sector-in-last-10-years-9577770\/\" target=\"_blank\" rel=\"noopener\"><strong>IE<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>At the third edition of World Food India 2024, the Prime Minister said that India has introduced \u201cwide-ranging\u201d reforms to transform the food-processing sector in the last 10 years.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-29749","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/29749","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=29749"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/29749\/revisions"}],"predecessor-version":[{"id":36993,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/29749\/revisions\/36993"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=29749"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=29749"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=29749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}