4 Months agoThe Ministry of Food Processing Industries has released their sectoral achievement report. Read it here.
The Food Processing sector in India, a sunrise sector, is poised for immense growth and greater contribution to the world food trade. The sector has witnessed a number of initiatives undertaken by the Government since June 2014 primarily aimed at scaling up infrastructure for storage and transport, tackling the issue of food wastage in the country and creating value addition that will benefit both producers and consumers in the country through facilitating domestic and foreign investment in the sector. The growth rate of Gross Value Added (GVA) in food Processing industries has increased from 1.91% in 2013- 14 to 5.78% in 2014-15 at constant prices.1
India is the largest producer of milk and second largest producer of a variety of fruits and vegetables in the world. However, food is being wasted at the harvest point and during transportation. India witnesses nearly 4.6 - 15.9 % wastage in fruits and vegetables annually, due to lack of modern harvesting technologies and cold chain infrastructure. The wastage levels in other perishables are also significantly high; 5.2 % in inland fish, 10.5 % in marine fish, 2.7 % in meat and 6.7 % in poultry.2
To tackle this critical issue, Government is sanctioning and operationalizing more cold chain infrastructure in the country with the objective of reducing food wastage by 50% over next 2 years. In addition, by opening up the sector, the Government is keen to bring in advanced technology into the supply chain thereby combating the losses incurred during the value chain.
The food industry, which was valued at USD 39.71 billion in 2013 is expected to grow at a Compounded Annual Growth Rate (CAGR) of 11 percent to USD 65.4 billion by 2018. The Indian food and grocery market is the world’s sixth largest, with retail contributing 70 percent of the sales. Food has also been one of the largest segments in India's retail sector, which was valued at USD 490 billion in 2013. The Indian food retail market is expected to reach USD 894.98 billion by 2020.3
Similarly, the online food ordering business in India is in its nascent stage, but witnessing exponential growth. The organized food business in India, which is worth USD 48 billion, of which food delivery is valued at USD 15 billion, has a huge potential.4
1. Data from MoFPI
2. Make In India Opportunities in Food Processing Sector Report by MoFPI, CII & Yes Bank
3. Ministry of External Affairs - http://indiainbusiness.nic.in/newdesign/index.php?param=industryservices_landing/337/1
4. Ministry of External Affairs - http://indiainbusiness.nic.in/newdesign/index.php?param=industryservices_landing/337/1