India is the second-largest producer of food and has the potential to be the largest on a global food and agriculture canvas. The food processing industry is ranked fifth in terms of production, consumption, export and expected growth.
The Indian Food processing Industry has grown by 11% in the last decade and is expected to reach $480 billion by 2020. Due to its inherent potential the Indian food processing sector has been called a sunrise industry.
The developments in the food processing sector are of enormous significance. It has efficiently and effectively linked the nation's economy, industry and agriculture synergizing the development process and promoting the growth of the nation to a great extent.
The Indian food processing industry is primarily export orient as India's geographical situation gives a unique advantage of connectivity to Europe, the Middle East, Japan, Singapore, Thailand, Malaysia and Korea.
India's exports of Processed Food are of Rs. 27,257.69 crore in 2017-18.
Retail, one of the largest sectors in the global economy (USD 7 Trillion), is going through a transition phase in India. Globally more than 72% of food sales occur through super stores. India presents a huge opportunity and is all set for a big retail revolution.
For the growth of the food processing industry, the biggest challenge faced due to dominance of unorganized players, who approximately contribute to 80% of the industry's volume. The main challenges are -
Unavailability of a processable quality and quantity of fruit and vegetables.
Low productivity of agri products
Poor processing conversion - low technology base and low automation
High operating costs due to small-scale operations
India's vast agricultural resources alone create huge potential for investments in its food processing and equipment industry. The food processing industry is one of the largest industries operating in India that holds scope for value added processing covering fruit and vegetables; spices; meat and poultry; milk and milk products, fisheries, plantation, grain processing and other consumer product groups like confectionery, chocolates and cocoa products soya-based products, mineral water, high protein foods etc.
The Government's focus towards the Food Processing Industry as a priority sector is expected to ensure policies to support investments, to attract more FDI and to have double digit growth. Mega Food Parks promote processing facilities in a big way. With the right infrastructure, food processing units will be able to provide a large improvement in the domestic consumption.
Govt. has approved many proposals for joint ventures; foreign collaboration, industrial licenses and 100% export oriented units envisaging an investment. Out of this, foreign investment is over Rs.10,000 crores. The Food Processing sector in India received FDI worth around US$ 7.54 billion during April 2000-March 2017.
Indian Food Processing Industry has seen significant growth and changes over the past few years, driven by changing trends in markets, consumer segments and regulations. These trends in the future are expected to shape the demand for value added products in India.
As per the PM, India's Food Processing Industry is expected to increase almost five-fold in next 10 years. India, having access to a vast pool of natural resources and growing technical knowledge base, has strong comparative advantages over other nations in this industry.
The Govt. has been approving proposals for joint ventures, foreign collaboration, industrial licenses and 100% EOUs envisaging an investment of Rs. 19,100 crores (US$ 4.80 billion) during the same period.
World's well established brands in food segment are readily available in India markets like Unilever food products from USA, Agnesi Pasta from Italy, Kikkoman sauces from Japan, Olicoop Spanish Olives, Ong's oriental food & sauces from Singapore/China, Chocolates & confectionery from Germany, Salad dressings, Canned seafood & vegetables from Australia, baby accessories from Taiwan, Mexican food, corn and Thai products and so on, list is endless.
The Ministry of Agriculture is aiming to double the production of all food crops through National Food Security Mission, NHM, HMNEHS & NHB and disseminating the latest practices of production and post harvest care. The need of the hour in India is increased productivity and building of an effective supply chain to ensure that what is produced in the farm reaches the consumer in good shape.
Greater use of machinery has, therefore, become necessary in India to overcome the technical constraints in enhancing production and productivity. As a result, India is emerging as one of the hottest destinations not only for Food Processing and Packaging Machinery & Equipment imports from European and South East Asian Countries but also for Agro-Food products from international suppliers.
In order to introduce latest technological innovations, launch exclusive range of products and services among thousands of Food Processors, Machinery suppliers, importers and exporters, Media Today Group is organizing the 11th edition of 'India Foodex 2019' from 30th August - 1st September 2019 at BIEC, Bangalore, India.
"India Foodex 2018" besides India, attracted participation from 30 countries and was an excellent expo and received tremendous support from all quarters.
Receiving an awe-inspiring response earlier, concurrently, we are also organizing 2nd HRC Expo 2019, 6th Meat Tech Asia 2019, 9th DairyTech India 2019 and 10th GrainTech India 2019 to add more values and to ensure better business for all.
India FoodEx and GrainTech India 2017 Video Coverage by Turkish Channel Ciftci Tv - Farmer TV