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Food Processing
The Indian food processing industry is one of the largest in the world in terms of production, consumption, export and growth prospects. India has a strong agricultural production base with diverse agro-climatic conditions and arable land of 184 million hectares.
Emerging new markets and technologies has fuelled production of ready-to-eat food, beverages, processed and frozen fruit and vegetable products, marine and meat products. It also include establishment of post-harvest infrastructure for processing of various food items like cold storage facilities, food parks, packaging centers, value added centers, irradiation facilities and modernized abattoir.
Market Size
The Indian food market is estimated at over US$182 billion, and accounts for about two thirds of the total Indian retail market.
According to consultancy firm McKinsey & Co, the retail food sector in India is likely to grow from around US$ 70 billion in 2008 to US$ 150 billion by 2025, accounting for a large chunk of the world food industry, which would grow to US$ 400 billion from US$ 175 billion by 2025.
- India Ranks fifth in size representing 6.3% of GDP.
- Accounts for 13 % of the country’s exports and 6 % of total industrial investment.
- Industry size is estimated at US$ 70 billion, including US$ 22 billion of value-added products.
- The turnover of the total food market is approximately Rs.250,000 crores (US $ 69.4 billion) out of which value-added food products comprise Rs.80,000 crores (US $ 22.2 billion).
Catalyst for Growth of Food Processing Industry in India
'Vision 2015' of Ministry of Food Processing Industry entails:
- Three-fold growth in the size of the processed food sector.
- Increase the level of processing of perishable food from 6% to 20%
- Value addition to be increased to 35% from 20% by 2015
- Share in global food trade from 1.6% to 3% by 2015
Government Initiatives
Ministry of Food Processing & Industries
The Ministry of Food Processing Industries, set up in July 1988, is the main central agency of the Government responsible for developing a strong and vibrant food processing sector; with a view to create increased job opportunities in rural areas, enable the farmers to reap benefit from modern technology, create surplus for exports and stimulating demand for processed food.
- Food processing industries have been put in the list of priority sectors for bank lending.
- Most of the processed food items have been exempted from the purview of licensing except items reserved for small-scale sector and alcoholic beverages
- Fruit and vegetable processing units have been completely exempted from paying excise duty.
- Automatic approval for foreign equity up to 100 per cent is permitted for most of the processed food items.
- Custom duty on food processing machinery reduced from 7.5% to 5%
- Excise and Import duty rates have been reduced substantially. Many processed food items are totally exempt from excise duty.
- Streamlining of Food Laws.
Subjects handled by the Ministry:
- Fruits and vegetable processing industry
- Food grain milling industry
- Dairy products
- Processing of poultry and eggs, meat and meat products
- Fish processing
- Bread, oilseeds, meals (edible), breakfast foods, biscuits, confectionery (including cocoa processing and chocolate), malt extract, protein isolate, high protein food, weaning food and extrude M/other ready to eat food products
- Beer, including non-alcoholic beer
- Alcoholic drinks from non-molasses base
- Aerated waters / soft drinks and other processed foods
- Specialized packaging for food processing industries
- Technical assistance and advice to food processing industry
Major investments
- Private investment has been one of the key drivers for growth of the Indian food industry.
- The 'India Food Report 2008', reveals that the total amount of investments in the food processing sector in the pipeline for the next three years is about US$ 23 billion.
- The government has received around 40 expressions of interest (EoI) for the setting up of 10 Mega Food Parks with an investment of US$ 514.37 million.
Demography
- Rising consumer prosperity has thrown up new opportunities for diversification in the food processing sector and opened up new avenues for growth.
- Demand for processed and convenience food is increasing constantly because of urbanization, changing life-style and food habits of the people.
The Future
According to the India Food and Drink Report Q3 2008 by research analysis firm Research and Markets, by 2012, India's processed food output is likely to grow by 44.2 per cent to touch US$ 90.1 billion, while packaged food sales will increase by 67.5 per cent to reach US$ 21.7 billion. On a per capita basis, per capita packaged food spending is expected to grow by 56.5 per cent to US$ 18.06 by 2012.
Source: MOFPI, IBEF
The exhibitor profile under the Food Processing category includes
- Dishwashers, Cleaning and Hygiene Technology
- Fish & Seafood Processing Technology
- Food Additives & Ingredients
- Food Packaging
- Food Preservation Cabinet
- Food Preservatives
- Food Processing Machines and Equipments
- Fragrances, Flavors & Food Colors
- Frozen, Chilled Food & Ice Cream
- Fruit Processing Technology
- Marine Processing Technology
- Meat Processing Technology
- Oil Mills / Expellers
- Organic Foods
- Pizza Equipments & Supplies
- Poultry Processing Technology
- Refrigeration, Cold Storage Chain Solutions & Heating Technology
- Spice Grinding & Packaging
- Sugar Processing Machines and Equipments
- Vegetable Processing Technology
- Weighing & Measuring Machines & Equipments
- Other
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