Make in India in Food Processing Sector
Dr. Prabodh Halde
Head Regulatory, Marico
India annually produces 205 million tonnes of fruits and vegetables. The processing percentage is only 4.6%. while the USA (65%), China (23%) and Philippines (78%) process lot more. About 35% of the fruits and vegetables are wasted annually due to poor storage facilities, amounting to a revenue loss of Rs 500 billion. , 80% of the vegetables rot due to lack of processing facilities, resulting in a revenue loss of Rs 125 billion.
The above statement points out to need for additional storage facilities and processing facilities in India.
Sector Details - 2011 - 12
The food processing sector comprises of three segments based on the levels of processing
Primary processing of food
Primary processing of food comprises of sorting, grading and packaging of fruits and vegetables, milk, rice, spices, etc.
Secondary Processing of Food
Secondary processing of food comprises of re-shaping of food for ease of consumption. It includes flour, oil cakes, tea leaf and beverages powder etc. Together with primary processing, the two segments constitute around 62% of the processed foods in value terms.
Tertiary Processing of Food (or) Value Added Food Segment
Value added food segment includes processed fruits and vegetables, juices, jam & jelly etc and holds around 38 % share in the total processed food market.
The Indian food processing industry is valued at approx. ` 78,094 crore for the year 2011-
12. The industry is still in its nascent stage and contributes only 1.49% to the total Gross
Domestic Product (GDP) of the economy. It has been accorded the status of priority
sector by the Government of India. The industry has shown Compounded
Annual Growth Rate (CAGR) of 8.4% during the period 2006-07 to 2011-12.
The industry employed more than 1.3 crore workers directly and about 3.5 crore indirectly in 2008-09.
Updated 17 Mar 2016, 12 Mar 2016.