The Indian Food Processing Sector
The Indian food-processing sector offers immense business potential.
If one were to look at India’s position in the global agricultural production, arable land, agro-climatic diversity etc, India stands among the top three in the world. We are one of the largest producers of fruits and vegetables, livestock and milk. India is also an emerging food and drinks market, especially for branded, heath and convenience food. As it is, we are one among the fastest growing economies in the world. The country’s business and regulatory environment is evolving and moving towards harmonizing with global economy and food standards.
Indian food processing sector is undoubtedly on a fast growth track. Investments both domestic and FDI are coming in large in this sector. The global food processing industry looks at India as a recharged economy with immense opportunities and perhaps a sourcing destination.
Yet, the bottlenecks
Yet, critics point to the fact that though agriculture employs 58 percent of the working population, it accounts for only 14.3 percent of the GDP. The agri–economy has been growing at approximately 2 – 3%, thereby leaving a substantial room for further growth. Agribusiness in India is heavily underdeveloped. For every US$ 1 of agricultural output, the incremental agribusiness generated in India is only US$ 1. This is nominal as compared to Brazil where incremental agribusiness has been valued at US$ 2.7 and US$ 11 in the United States of America.
Is India ready for a revolution in the processed food sector and thus provide an answer to stagnant agriculture growth in India?
Agribusiness, and particularly, the food-processing sector, has the potential to catalyze “inclusive growth”, reduce the growing rural and urban incomes divide and moderate the strains on urban infrastructure coming from rural flight to urban centres. It can increase farmer incomes, create additional jobs in rural areas and provide better access to safe and nutritious food
Food processing is the largest contributor to agribusiness and can be the fulcrum in transforming the overall agriculture sector. There is even greater scope for growth in overall agribusiness. The food-processing sector can grow from the current US$ 40–50 billion to US$ 300–350 billion by 2020. The market size of the packaged food industry segment estimated at INR 310 Billion in 2009-10, contributes around 2.9% to the Indian food industry. Given the growth rate of about 25% per year, packaged food industry’s share is expected to reach 7% by 2015 in the overall food market.
There is a need for conscientious efforts in bringing the food processing sector to the forefront.
Food World India 2012
In the light of the above, we at FICCI have resolved to design a meaningful and focused agenda for building scale and competitiveness in food processing sector. We also intend to position India as the leading destination for investment in food processing, and simultaneously establish India as a global hub for agri food exports / outsourcing destination.
India’s global convention for food business and Industry, FICCI FOODWORLD INDIA, has been designed with this objective. In its sixth edition, Food World India is being organized at Hyatt Regency Mumbai, India during 26-27 September 2012.
Over the years, FOODWORLD INDIA has evolved as the forum for understanding the industry mood and needs, global trends, and opportunities in the global food space. Besides, the initiative has been in the forefront on addressing issues such as gaps in supply chain infrastructure, food security, skilled manpower, tertiary Processing, farm level productivity etc. The event has also achieved a global spotlight with delegates from Japan, Netherlands, Singapore, Germany, Italy, France and U.K participating in the last edition of the vent
FOODWORLD is organized concurrently with the National R& D Workshop in association with MOFPI and also the ANNAPOORNA – World of Food India – biggest &the only focused exhibition on food & beverage industry
For more details / participation, please contact Ms Mallika Verma, FICCI, New Delhi – India
Ph: +91 011-23738162(D) and email: mallika.verma@ficci.com,
Image Source: Pink Sherbet Photography
Appreciate your way of providing a brief yet extensive insight into the food processing sector for the readers.. I agree to the fact that ‘food’ being an essential commodity for everybody, this is the most emerging sector as the taste senses of the people keep on changing which leads to ‘innovations’.