Food Processing Industry Essay

The market share of processed food in terms of value is expected to increase from 43 per cent to 50 per cent of the total food production during the period.

The food processing industry, if linked efficiently and effectively in India will be of enormous significance for its development in the nation’s economy, industry and agriculture. The linking of these important pillars have promoted the growth of the nation to a great extent by synergising the development process. As per a competitiveness report of the National Manufacturing Competitiveness Council, there are 25,367 registered food processing units in the country, with total invested capital of Rs 84,094 crore ($17.81 billion). The food processing sector is presently growing at an average

The food processing industry in India has also attracted foreign direct investment (FDI) worth $1,273.96 million between April 2000 and June 2011, according to data provided by the Department of Industrial Policy and Promotion (DIPP).As there is a shift in consumption pattern of food in the processed food market, it accounts for 32 per cent of the total food market. It is estimated to be US$ 29.4 billion in a total of US$ 91.66 billion estimated market. This market has the capability of generating employment of more than 9 million people as estimated by the Confederation of Indian Industry (CII) and has the potential of attracting US$ 33 billion of investment in 10 years in the food processing sector. The Government has formulated and implemented several Plan Schemes. The government is ready to provide financial assistance for setting up and modernizing food processing units, creation of infrastructure, support for research and development and human resource development. It is helping other promotional measures too to encourage the growth of the processed food sector. Food processing sector covers activities such as agriculture, horticulture, plantation, animal husbandry and fisheries. It includes various other industries that use agricultural

There is a decline in the proportionate expenditure on cereals, pulses, edible oil, sugar, salt and spices whereas the household expenditure have jumped high in urban India. But there is an increase in the usage of milk and milk products, meat, egg and fish, fruits and beverages. The decline is in proportionate expenditure on staples (cereals, grams, pulses) from 45 per cent to 44 per cent in rural India. An average expenditure on food in urban India is 32 per cent of the total. The food industry is growing as Indians continue to have a feast as every member of the family is earning. A large disposable income is a perfect ingredient for any industry so the food sector has been witnessing a marked change in consumption patterns of food.

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The Ministry of Food Processing, Government of India has indicated the following segments within the Food Processing