Industrial SCENARIO

India today stands as the 3rd largest producer of agricultural products in terms of value in the world. However, lower degree of processing awareness and facilities, India lags behind the developed and developing nations.

FOOD PROCESSING INDUSTRY – FUTURE AHEAD

India’s per Capita GDP is expected to grow by 320 per cent by next 20 years. This rising income and growing population is likely to increase overall food consumption by 4% per annum to reach INR 22.50 lakh Crores ( ~ US$3750bn) in 2030 from present level of 11 lakh crores ( ~ US$1833.33bn). Per capita consumption is expected to increase from INR 9,360.00 (~ US$154) to INR 15,390 (~US$253bn). These figures indicate a huge growth opportunity across the food chain. Urban India’s food consumption will grow by 5% and will change due to change in food habits from basic food to “ High Value Food”, such as fruits, Vegetables and complex proteins. The whole change in food habits and increase in per capita consumption of food is expected to trigger the growth of 5.2% to 5.7% in Food and Agriculture Sector ( in real terms) over the next 20 years. The graph illustrates the expected growth in agriculture and Food Processing Sector in India by 2030, showing enormous scope of supply

GOVERNMENT INITIATIVES

Looking at the next 20 years of the growth in agricultural production, Government of India through its various agencies are working towards improving agricultural yield so that the farmers can benefit, which will consequently held to develop a robust food processing industry. Govt. of India, through its Ministry of Food Processing Industry ( MoFPI) has been promoting food processing industry. As a government initiative, substantial funds are allocated in the 12th Five Year Plan (2012 – 2017), as detailed below.

GROWTH AREAS IN FOOD PROCESSING INDUSTRY

Though, all sectors in food processing industry expected to grow at higher rate compared to manufacturing sector, few sectors identified below which has potential to grow at a faster rate.

  • Integrated Cold Storage facilities
  • Pre-Processing and Pre- cooling facilities near farms
  • Modernization of agriculture markets, warehouses and abattoirs.
  • Efficient Handling facilities
  • Mega Food parks
  • Fruits and Vegetable processing
  • Poultry and Meat Processing
  • Facilities for specific fruits like mango, Banana, Soya bean and Potato.
Financial year Infrastructure developement Food processing facilities R&D safety & quality Total plan qutlay for MoFPI
2012-2013 787.00 546.00 112.00 1900.16
2013-2014 1075.00 959.00 132.00 2820.16
2014-2015 1074.00 1506.00 160.00 3258.00
2015-2016 1115.00 1723.00 183.00 3563.16
2016-2017 1175.00 1179.00 203.00 3763.00

As can be seen from above figures, total outlay for 5 years is Rs. 15,304 crores of which Rs. 10,300 crores are allotted for infrastructure and Food processing sector, Which is about 2/3 of total outlay. This is expected to generate an investment opportunity to the tune of Rs.35,000 crores. Compared to 10th and 11th Plan, Where total outlay was Rs. 650.00 crores and Rs. 4031 crores respectively, the increase in outlay has substantially increased. The Agriculture has grown at 3% annually over the last three decades and expected to keep growing at the same pace over the next decade

© www.IFHExpo.com All Rights Reserved. Designed & Developed By : Pitamaas