MANTHAN REPORT 2022

National Institute of Agricultural Extension Management (MANAGE)

Rajendranagar, Hyderabad, 500030
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S. No. TOPICS Pg. No.

1 Introduction 2

2 Indian Overview 3

3 Market Size 4

4 Global Food Trade 5-6

5 Segments 7

6 Trends 8

7 Government Initiatives 9

8 Pradhan Mantri Kisan Sampada Yojana 10-14

9 Operation Green 15-16

10 Key Challenges and Interventions 17-18

11 Major Food Processing Companies 19

12 Opportunities 20-22

14 Key Highlights in Union Budget 2021 23

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Food Processing Sector is the “Sunrise Sector”. It plays a very important role in linking
Indian farmers to consumers in the domestic and international markets. A well-developed
food processing sector with higher level of processing helps in the reduction of wastage,
improves value addition, promotes crop diversification, ensures better return to the farmers,
promotes employment as well as increases export earnings. This sector is also capable of
addressing critical issues of food security, food inflation and providing wholesome,
nutritious food to the masses.

Facts about India:

❖ World’s largest producer of Spices, Milk and Pulses.
❖ World’s largest processor, producer and consumer of Cashew Nuts.
❖ World’s largest producer of Mango, Guava, Banana and Papaya.
❖ World’s second largest producer of Garlic and Onion, after China.
❖ World’s second largest producer of Lemon and Limes, after Mexico.
❖ World’s second largest producer of Potatoes and Peas, after China.
❖ World’s second largest producer of Tea, after China.
❖ World’s second largest producer of Tomatoes, after China.
❖ World’s second largest producer of Sugarcane, after Brazil.
❖ World’s third largest producer of Coconut, after Indonesia and Philippines.
❖ World’s third largest producer of Oranges, after Brazil and China.
❖ World’s sixth largest food and grocery market.
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India’s food processing sector is one of the largest in the world and its output is
expected to reach $ 535 Bn by 2025-26. It is growing at a CAGR of 11%. The sector
will be led by the demand in retail and the rise of health-conscious consumers.

With India moving from a position of scarcity to surplus in food production the prospects
for increasing processing levels are enormous. The Indian food industry is poised for huge
growth, increasing its contribution to world food trade every year. In India, the food sector
has emerged as a high-growth and high-profit sector due to its immense potential for value
addition, particularly within the food processing industry.

The industry has a 20.2% share of GVA of agriculture and allied sector to total economy,
11.6% share in total employment and 10.4% share in India’s exports.

Key Facts:
❖ Milk production of 209.96 million tonnes during 2020-21
❖ Ranks 3rd in the world in Egg production with 122.11 billion in 2020-21
❖ Second largest producer of fish in the world — total fish production in 2019-20
was 14.16 Mn tonnes with 7.56% of Global production. The Government has
committed to a national target to increase fish production to 22 million metric
tons by 2024-2025.
❖ Food Retail market is majorly dominated by Food Grocery (growing at CAGR
25%) and Food Services (growing at CAGR 15%) segments.
❖ India shipped 11,49,510 MT of seafood worth $5.96 Bn during 2020-21.

Contribution of Food Processing Sector to GDP:

During the last 5 years ending 2020-21, Food Processing sector has been growing at an
Average Annual Growth Rate (AAGR) of around 11.18% as compared to around 3.11% in
Agriculture at 2011-12 Prices.

The sector constituted as much as 9.87% and 11.38% of GVA in Manufacturing and
Agriculture sector respectively in 2019-20 at 2011-12 prices.
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• The Indian food processing market reached a value of INR 30,938 billion in 2020.
(Reportby IMARC Group)

• The Indian food and grocery market is the world’s sixth largest, with retail
contributing 70per cent of the sales. The Indian food processing industry accounts for
32 per cent of the country’s total food market, one of the largest industries in India
and is ranked fifth interms of production, consumption, export and expected growth.

• The Indian gourmet food market is currently valued at US$ 1.3 billion and is growing
at a Compound Annual Growth Rate (CAGR) of 20 percent. India's organic food
market is expected to increase by three times by 2021

• The online food ordering business in India is in its nascent stage, but witnessing
exponential growth. With online food delivery players like FoodPanda, Zomato,
TinyOwl and Swiggy building scale through partnerships, the organized food
business has a huge potential and a promising future.

• India’s processed food market is expected to grow from USD 263 billion to USD 470
billion by 2025.
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India’s Share in Global Food Trade:

India's exports of Processed Food was Rs. 36,946.20 Crores/ 4,987.76 USD Millions in 2020-21, The
Indian food processing industry is primarily export orient. India's geographical situation gives it the
unique advantage of connectivity to Europe, the Middle East, Japan, Singapore, Thailand, Malaysia
and Korea. One such example indicating India's location advantage is the value of trade in agriculture
and processed food between India and Gulf.
S.No. Partner Trade Product
Indicator 2017 2018 2019
Name Flow Group
1 United Food Import (US$
Import 405979.7 518378.1 453800.8
States Products Thousand)
2 Food Import (US$
Brazil Import 1055659 700286.1 264163.9
Products Thousand)
3 United Food Import (US$
Import 231827.6 257778 191386.8
Kingdom Products Thousand)
4 Food Import (US$
Singapore Import 67572 191091.7 179103.5
Products Thousand)
5 Food Import (US$
Indonesia Import 87563.14 150912.6 158824
Products Thousand)

Top Five India’s Food Export to the World:

US $ Million
S.No. Commodity 2017-18 2018-19 2019-20 2020-2021
1. Fish and Crustaceans, 6849.36 6256.57 5150.00 6734.82
Molluscs and other
Invertebrates
2. Cereals 8078.94 8162.40 8671.98 12350.06
3. Meat and Edible MeatOffal 4174.67 3722.53 3106.05 3384.03
4. Coffee, Tea, Mate andSpices 3301.29 3199.87 3657.42 4006.06

5. Sugar and Sugar 1017.62 1628.67 2763.93 4310.23

Confectionary
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Top Four India’s Food Imported from the World:

US $ Million
S. Commodity 2017-18 2018-19 2019-20 2020-21
No.
1. Animal or Vegetable Fats 11700.44 9994.44 10597.47 17458.99
and Oils
2. Edible Fruit and Nuts; 3400.81 3627.69 3195.67 3657.87
Peels or Citrus Fruit or
Melon
3. Edible Vegetables and 2968.80 1189.04 1649.61 2128.19
Certain Roots and Tubers
4. Coffee, Tea, Mate and 849.84 717.37 7977.19 9006.06
Spices

APEDA:
The Agricultural and Processed Food Products Export Development Authority (APEDA)
was established by the Government of India under the Agricultural and Processed Food
Products Export Development Authority Act, 1985. It functions under the Ministry of
Commerce and Industry. The Authority has its headquarters in New Delhi.

Functions
• APEDA is mandated with the responsibility of export promotion and development
of the scheduled products viz. fruits, vegetables and their products; meat and meat
products; poultry and poultry products; dairy products etc.
• APEDA has been entrusted with the responsibility to monitor import of sugar.
• It looks after the development of industries relating to the scheduled products for
export by way of providing financial assistance or otherwise for undertaking
surveys and feasibility studies, participating through subsidy schemes.
SEGMENTS: 7

India is the world’s 2nd largest producer of fruits and vegetables.

The government expects the processing in this sector to grow by 25
Fruits & percent of the total produce by 2025.
Vegetables In 2019-20, the total production in horticulture sector (fruits and
vegetables) is estimated at 334.60 million tonnes.
In the F&V category, against the export target of USD 3048 million till
February’22, APEDA has exported F&V worth of USD 2506 million,
which is 75 per cent of the total target.

India is the largest producer of milk in the world, with milk production
Milk in the country has increased from 146.3 MMT in 2014-2015 to 209.96
MMT in 2020-21.
Food Processing

India's Export of Dairy products was 54,762.31 MMT to the world,

worthof USD 201.37 Mn during the year 2020-21.

Egg production in the country was 122.11 Bn during 2020-21.

Meat &
Poultry Poultry Meat production was 3.6 million tonnes in 2020.

2nd Largest producer of fish in the world & 4th largest sea food
Marine exporter.
Products
2nd largest aquaculture producer in the world.

305.44 MMT of food grains production in 2020-2021

Grain
Processing 25.58 MMT of pulses production in 2020-21.
49.66 MMT of nutri/coarse cereals production in 2020-21.

Consumer
Foods Expected to grow at a growth rate of 16.3% during the 2019-24 period.
TRENDS: 8

• Wide array of products, coupled with increasing global connectivity, has led to a change in
Changing Consumer the tastes and preference of domestic consumers
Trends • This trend has been bolstered by rising incomes, increasing urbanisation, a young
population, and the emergence ofnuclear families. Consumer preference is moving
towards healthier snacks

• Liberalisation and growth of organised retail have made the Indian market more
Entry of attractive for global players
International •With a large agriculture sector, abundant livestock, and cost competitiveness, India is fast
Companies emerging as a sourcing hub of processed food. Danone, Nestle, Kraft Foods, Mondelez
International, Heinz are the international players in food processing market in India

Rising Demand on • Strategic geographic location and continuous increase in raw material production help
Indian product in India to supply cheaper products to other countries
International • Companies like Haldiram’s and Bikarnervala have a presence in over 70
Market countries, whereby they provide Indian snacks

• There is a surge in demand for fruits & vegetables as a result of a shift in consumption.
Higher Consumption
• Accordingly, Indian farmers are also shifting production towards horticulture crops to
of Horticultural Crop
cash in on the growing demand.

• Food processing companies are serving health and wellness as a new ingredient in
processed food, given that health conscious consumers prefer food products with lower
Emphasis on carbohydrate content and with low cholesterol edible oils. e.g.zero-percent trans fat
Healthier Ingredients snacks and biscuits, slim milk, whole wheat products, etc.
• ITC and PepsiCo are shifting their focus on healthier snacks as the market for healthy
snacks is growing with double speed.

• Frozen processed foods offer both convenience and nutrition

Frozen and Processed • The increase in spending capacities and the concurrent time-paucity has led to the
continuous development of such frozen processed food products as frozen vegetables
Goodness (e.g. peas, potato, corn, etc.) and such non-vegetarian products as chicken, fish, and
meat products

•Contract farming has been operational in India for a long time, however, the experience
of the private players involved therein has been a mixed bag of successes and failures
Strengthening •It has helped both the processing companies by increasing sales and therefore
Procurement augmenting their incomes and providing access to better technology and fetching better
prices by securing an assured market for Indian farmers. Examples include Nestlé,
PepsiCo, Venky’s, Milkfed, and Mahagrapes, etc.
GOVERNMENT INITIATIVES:
GOVERNMENT INITIATIVES: 9

MAJOR POLICY INITIATIVES BY MINISTRY OF FOOD PROCESSING:

1. All the processed food items were exempted from the purview of licensing under the
industries (Development and Regulation) Act, 1951.
2. Permission through automatic route of 100% Foreign Direct Investment (FDI) for food
processing sector.
3. Permission under Government approval route of 100% FDI, for trading, including
through e-commerce, in respect of food products manufactured or produced in India.
4. Lower GST for food products with 80% food products covered in lower tax slab of 0%,
5% and 12%.
5. Loan to food & agro-based processing units and Cold Chain under agriculture activities
are classified for Priority Sector Lending.
6. Special Fund of Rs. 2000 crore is setup in National Bank for Agriculture and Rural
Development (NABARD) to provide affordable credit for designated Food Parks and
agro-processing units.
7. Government approved a production-linked incentive (PLI) scheme for the food
processing sector, entailing an outlay of Rs 10,900 crore.
This scheme which will help create 2.5 lakh jobs by 2026-27, boost exports and facilitate
the expansion of food processing capacity to generate processed food output worth Rs
33,494 crore.
The incentive under the scheme would be paid for six years ending 2026-27.
According to the government, the first component under the scheme relates to
incentivizing the manufacturing of four major food product segments: ready-to-
cook/ready-to-eat foods, processed fruits and vegetables, marine products and mozzarella
cheese.
Innovative and organic products of small-to-medium enterprise (SMEs), including eggs,
poultry meat, egg products in these segments, are also covered under the first component.
The second component relates to support for branding and marketing abroad to incentivize
emergence of strong Indian brands.
PRADHAN MANTRI KISAN
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SAMPADA YOJANA:

• Launched On: 03rd MAY, 2017

• A comprehensive package which helps in creation of modern infrastructure with
efficient supply chain management from farm gate to retail outlet.
• Allocation under PMKSY is Rs.6000 crore for the period 2016-2020.
• The following schemes are implemented under PMKSY are:
1. Mega Food Parks
2. Integrated Cold Chain and Value Addition Infrastructure
3. Creation/Expansion of Food Processing & Preservation Capacities (Unit Scheme)
4. Infrastructure for Agro Processing Cluster
5. Creation of Backward & Forward Linkages
6. Operation Greens
7. Food Safety and Quality Assurance Infrastructure
8. Human Resources and Institutions

MEGA FOOD PARK SCHEME

• Implemented since 2008
• Aim: Create a modern food processing infrastructure for the processing units based
on cluster approach and on a hub and spoke model in demand driven manner.
• Objective:
1. To facilitate establishment of an integrated value chain, with food processing at
the centre and supported by required backward and forward linkages.
2. Ensure value addition of agricultural commodities including poultry, meat, dairy,
fisheries etc.
3. Establish a sustainable raw material supply chain for each cluster.
4. Facilitate induction of the latest technology.
• Working: The Centra Processing Centre (CPC) is networked with the Primary
Processing Centre (PPC) And Collection Centre (CC) located at the farm gate in
production area.
• Benefit: It will bring together farmers, processors and retailers and link agricultural
production to the market so as to ensure maximization of value addition,
minimization of wastages and improving farmers' income.
• 18 Mega Food Park have started their operation as of now.
PRADHAN MANTRI KISAN 11
SAMPADA YOJANA:

INTERGRATED COLD CHAIN AND VALUE ADDITION INFRASTRUCTURE

• Objective: To minimize the post-harvest losses and enhance value addition in the
agricultural produce.
• Implementation since 2008.
• Need: One of the main reasons for the high losses in the supply chain of perishables
is the absence of adequate and efficient cold chain infrastructure right from the farm
gate to the consumers.
• Dr. Saumitra Chaudhuri Committee constituted by the erstwhile Planning
Commission in 2012 had estimated cold storage requirement in the Country of 61
million tonnes.
The present capacity of cold storage was estimated at around 32 million tonnes in
the country. Thus, the gap in cold storage was estimated to be around 29 million
tonnes.
• Benefit: Promote integrated and complete cold chain facilities without any break
from the farm gate to the consumer. This is done to reduce losses by improving
efficiency in collection of farmers produce, storage, transportation and minimal
processing.
• Components of the Scheme:
1. Farm Level Infrastructure in the catchment area of the targeted produce.
2. Distribution hub
3. Refrigerated/Insulated Transport
4. Irradiation facility
• Salient Features:
1. Maximum Grant-in-Aid permitted: Rs. 10 Crore per project.
2. Implementation schedule for the project is 20 months in General Areas and 24
months in North East states, Himalayan states, ITDP Areas & Islands.
3. Cold chain and preservation infrastructure can be set up by individuals, groups of
entrepreneurs, cooperative societies, Self Help Groups (SHGs), Farmer Producer
Organizations (FPOs), NGOs, Central/State PSUs, etc.
PRADHAN MANTRI KISAN 12
SAMPADA YOJANA:

• Patterns of Assistance:

Particulars: General Areas North East states,

Himalayan states, ITDP
Areas & Islands
Storage infrastructure including Eligible for Grant-in-Aid Eligible for Grant-in-Aid
Pack House and Pre-cooling @ 35% @ 50%
unit, ripening chamber and
transport infrastructure
Value addition and processing Eligible for Grant-in-Aid Eligible for Grant-in-Aid
infrastructure including frozen @ 50% @ 75%
storage/deep freezers associated
and integral to the processing
Irradiation facilities Eligible for Grant-in-Aid Eligible for Grant-in-Aid
@ 50% @ 75%

• 357 projects have been approved as on31st March, 2021.

• The Cold Chain infrastructure created by the 357 approved cold chain projects till
31st December, 2019 is as follows:
1. 6.19 lakh MT of Cold Storage, Controlled Atmosphere (CA)/Modified
Atmosphere (MA) storage, Deep Freezer.
2. 176.50 MT per hour of IQF.
3. 78.61 LLPD Milk processing/storage.
4. 990 number of reefer vehicles.

S. No. Component Existing Capacity Approximate

Requirement
1. Integrated Pack House 250 numbers 70,000 numbers
2. Reefer Trucks < 10,000 numbers 62,000 numbers
3. Cold Store (Bulk & 32 million tonnes 35 million tonnes
Distribution Hubs)
4. Ripening Chambers 800 numbers 9000 numbers
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CREATION/EXPANSION OF FOOD PROCESSING/PRESERVATION CAPACITIES

(UNIT SCHEME)
OBJECTIVE: Creation of processing and preservation capacities and modernization/
expansion of existing food processing units with a view to increasing the level of processing,
value addition leading to reduction of wastage.

NEED: Individual units covers a wide range of post-harvest processes resulting in value
addition and/or enhancing shelf life with specialized facilities required for preservation of
perishables.

BENEFITS:

1. Expansion of processing capacity is necessary to increase the level of processing and

reduce wastage

2. Induction of modern technology is intended to make a clear difference in terms of

process efficiencies as well as improving the quality of the end product.

INFRASTRUCTURE FOR AGRO-PROCESSING CLUSTER

AIM: Development of modern infrastructure and common facilities to encourage group of
entrepreneurs to set up food processing units based on cluster approach by linking groups
of producers/ farmers to the processors and markets through well-equipped supply chain
with modern infrastructure.

BASIC COMPONENTS:

• Basic Enabling Infrastructure (roads, water supply, power supply, drainage, ETP etc.)
• Core Infrastructure/ Common facilities (ware houses, cold storages, IQF, tetra pack,
sorting, grading etc)
• At least 5 food processing units with a minimum investment of Rs. 25 crore.
PRADHAN MANTRI KISAN 14

SAMPADA YOJANA:

CREATION OF BACKWARD AND FORWARD LINKAGES

OBJECTIVE:

❖ To provide effective and seamless backward and forward integration for processed
food industry by plugging the gaps in supply chain in terms of availability of raw
material and linkages with the market.
❖ Financial assistance is provided for setting up of primary processing centers/ collection
centers at farm gate and modern retail outlets at the front end along with connectivity
through insulated/ refrigerated transport.

APPLICABLE TO: Perishable horticulture and non-horticulture produce such as fruits,

vegetables, dairy products, meat, poultry, fish, Ready to Cook Food Products, Honey,
Coconut, Spices, Mushroom, Retails Shops for Perishable Food Products etc.

BENEFIT: Enable linking of farmers to processors and the market for ensuring
remunerative prices for agri produce.

FOOD SAFETY AND QUALITY ASSURANCE INFRASTRUCTURE:

OBJECTIVE:

❖ For the al-round development of the food processing sector in the country, various aspect
of Total Quality Management (TQM) such as quality control, quality system andquality
assurance should operate in a horizontal fashion.
❖ Need to ensure that the quality food products manufactured and sold in the market meet
the stringent parameters prescribed by the food safety regulator, in the interest of
consumer safety and public health.

COMPONENTS:

1. Setting Up/Up-gradation of Quality Control/Food Testing Laboratories

2. HACCP/ISO Standards/Food Safety/Quality Management Systems

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Announced on: Union Budget 2018-19, on line of “Operation Flood”

Outlay of: Rs. 500 Crore

Aim: to promote Farmer Producers Organizations (FPOs), agri-logistics, processing

facilities and professional management.

Also, a scheme for integrated development of Tomato, Onion and Potato (TOP) value
chain which is further expanded to “TOTAL” i.e., to all fruits and vegetables for a period
of six months on pilot basis as a part of Aatmanirbhar Bharat Abhiyan in year 2020.

OBJECTIVE:

i. Enhancing value realization of TOTAL farmers by targeted interventions to

strengthen TOTAL production clusters and their FPOs, and linking/connecting them
with the market.
ii. Price stabilization for producers and consumers by proper production planning in
the TOTAL clusters and introduction of dual use varieties.
iii. Reduction in post-harvest losses by creation of farm gate infrastructure,
development of suitable agro-logistics, creation of appropriate storage capacity
linking consumption centers.
iv. Increase in food processing capacities and value addition in TOTAL value chain
with firm linkages with production clusters.
v. Setting up of a market intelligence network to collect and collate real time data on
demand and supply and price of TOTAL crops.
 16

STRATEGIES:

The scheme will have two-pronged strategy of price stabilisation measures (for short term)
and Integrated value chain development projects (for long term).

❖ Short term Price Stabilisation Measures

NAFED will be the Nodal Agency to implement price stabilisation measures. MoFPI will
provide 50% of the subsidy on the following two components:

1. Transportation of TOTAL Crops from production to storage;

2. Hiring of appropriate storage facilities (3 Months) for TOTAL Crops;

Market Intelligence and Early Warning System

MIEWS Dashboard and Portal is a platform for monitoring prices of tomato, onion and
potato (TOP) and for generating alerts for intervention under the terms of the Operation
Greens scheme.

The portal would disseminate all relevant information related to TOP crops such as Prices
and Arrivals, Area, Yield and Production, Imports and Exports, Crop Calendars, Crop
Agronomy, etc.

❖ Long Term Integrated value chain development projects

i. Formation and Capacity Building of FPOs
ii. Quality Production
iii. Post-harvest processing facilities - At Farm Level
iv. Post-harvest processing facilities - At Main Processing Site
v. Agri-Logistics
vi. Marketing/Consumption Points
 17

Supply and Demand Side Bottlenecks

Small and dispersed marketable surplus due to fragmented holdings, low farm
productivity due to lack of mechanization, high seasonality, perishability and lack of
proper intermediation (supply chain) result in lack of availability of raw material. Thisin
turn, impedes food processing and its exports.
Demand of processed food is mainly restricted to urban areas of India.

Infrastructure Bottlenecks
More than 30% of the produce from farm gate is lost due to inadequate cold chain
infrastructure. The NITI Aayog cited a study that estimated annual post-harvest losses
close to Rs 90,000 crore. Lack of all-weather roads and connectivity make supply
erratic.

Informalization in Food Processing Industry

The food processing industry has a high concentration of unorganized segments,
representing almost 75% across all product categories. Thus, causes the inefficiencies
in the existing production system.

Deficiencies in the Regulatory Environment:

There are numerous laws, under the jurisdiction of different ministries and departments,
which govern food safety and packaging. The multiplicity of legislation and
administrative delays leads to contradictions in food safety specifications and
guidelines.

Low-Value Exports
Further, most processing in India can be classified as primary processing, which has
lower value-addition compared to secondary processing. Due to this, despite India
being one of the largest producers of agricultural commodities in the world, agricultural
exports as a share of GDP are fairly low in India relative to the rest of theworld. The
same proportion is around 4% for Brazil, 7% for Argentina, 9% for Thailand, while for
India it is just 2%.
KEY CHALLENGES AND
18
INTERVENTIONS:

A. DAIRY:
• Low milk productivity from cattle and high fodder prices
• Establishment of constant quality of milk during procurement
• Lack of cold chain infrastructure
INTERVENTION:
• Development of cold chain infrastructure
• Training farmers for maintaining the constant quality of produce
• Development of model farm and new high yielding fodder varieties
B. FRUITS AND VEGETABLES:
• Highly perishable produce and varying procurement price for the produce
• Processing units are primarily SME and MSME in nature and varying procurement
price for the produce.
INTERVENTION:
• Assistance for setting up of processing and storage infrastructure
• Linkages of farmers through collection centers/KVKs
• Encouragement to entrepreneurs for high value addition
C. FOOD GRAINS:
• Limited storage capacity and medium value addition
• Efficient procurement and movement for PDS and traditional cultivation
INTERVENTTION:
• Encouragement of high value addition and training through FPOs
• Increase in capacity of silos and warehouse
D. MEAT AND POULTRY
• Highly perishable processed produce with religious sentiments
• Licenses and clearances from different departments
• Inadequate access to common facilities
• Limited understanding of international laws for exports
INTERVENTION:
• PPP based abattoirs to encourage processing and value addition
• Assistance from GOI for setting up of common facilities like labs
• Setting up of cold chain infrastructure
• Training programs to handle the cattle, and understanding of international laws
 19
19

• LT FOODS LTD.
• REI AGRO LTD.
• MOTHER DAIRIES
• NESTLE INDIA LTD.
• BRITANNIA INDUSTRIES LTD.
• HERITAGE FOODS LTD.
• KOHINOOR FOODS LTD.
• HATSUN AGRO PRODUCT LTD.
• PARLE AGRO PVT. LTD.
• MTR FOODS PVT. LTD.
• McCAIN FOODS (INDIA) PVT. LTD.
• RUCHI SOYA INDUSTRIES
• GUJARAT CO-OPERATIVE MILK MARKETING FEDERATION LTD. (AMUL)
• KRBL LTD.
• HINDUSTAN UNILEVER LTD.
• MONDELEZ INDIA FOODS PVT. LTD. (CADBURY)
• VENKYS INDIA LTD.
• DABUR INDIA LTD.
 20

The Indian processed food market is expected to reach US$ 470 billion by 2025 from
US$ 263 billion in 2020.

• Milk sector
Introduce value-added dairy products viz. Cheese, smoothies, flavored
milk,custard, yoghurt and other ethnic Indian products
• Fisheries sector
Most marine exports are currently in the frozen form and there is immense
potential for exporting value-added products. Value addition and product
development for items such as ready-to-cook, ready-to-eat, canned and frozen
goods, etc. The need for proteins and the domestic consumer demand for fish
delicacies is at already always rising stage. Cleaned, portioned, deveined,
marinated ready to cook chilled fish varieties are a domestic consumers
favorite. With increased focus on health centered convenience foods this is
certainly an opportunity for the food processing industry to present an
innovative platter in this sector. The health-conscious consumer looks out for
preferences in fish products over other meats.
• Meat and poultry sector
New technology in meat and poultry processing, Egg powder plants,
Hatcheries include a few opportunities whereas new products - value-added
products such as frozen, chilled goods, RTC or RTE ethnic products or snacks
in convenience
package is domestic consumers all-time favorite and therefore opportunities for
theprocessing industry as well.
• Fruits and vegetables sector
India is the world’s largest producer of bananas, papaya, mangoes and
guavas, and the second-largest producer of potatoes, green peas, cabbages
and cauliflowers.
 21

New technology to reduce wastage levels

Adequate infrastructure (cold chain, processing infrastructure, R&D for processed food,
packaging and innovative farm preservation systems) - Packaging technology for
convenience foods - Processed fruit-based ingredients for ice cream, yoghurt, beverages.
Other than processed fruits and vegetables, even frozen and chilled products are an urban
consumer’s most sought choice. Organic products are also in demand amongst the health-
conscious consumers.

Due to evolving economic demographics and economic growth, India is likely to drive the
global food service industry. Some key aspects that drive the demand in this segment are:

❖ Improving demand metrics of ready-to-eat products with more healthy varieties of

choices
❖ Impact of technology on the entire food service industry, from sourcing of raw
materials to reservations and on-demand delivery - Online aggregators and third-
party logistics service providers can take up the vast opportunity. Key formats
behind the markets growth are Quick Service Restaurants (QSRs), Casual Dining
Restaurants (CDR), Cafes, Frozen Dessert Parlours, Lounges, Fine-Dining
Restaurants. The growth of the food grocery market is mainly driven by the dry
food grocery segment since the products involved are not only consumed in a raw
form, but also serve as raw material for food processing.
❖ Other growing segments are spices, perishables, fresh produce, other processed food
and beverages. As it deals with items of everyday consumption, the market can never
face a shortage of demand, thus resulting in constant growth.
❖ The annual value of harvest and post-harvest losses of major agricultural produce at
the national level is estimated to be Rs 92,651 crore (US$14 Bn). Hence, the need
for feasible cold chain solutions is critical.
 22

❖ 60% of India’s cold chain storage capacity is held by the states of Uttar Pradesh and
West Bengal, where the majority of cold storages are used for a single commodity:
potato! There lies the opportunity for the food processing industry across the states
to focus on other nutritionally rich and valuable products that are produced. With the
budget allocation on the positive side, the food processing industry certainly has
opportunity to try its innovative potential to have a hand on and deliver to the
domestic consumer’s demand for nutritionally rich processed food.
❖ Spice pastes: Supply chain infrastructure – this niche has investment potential in
food processing infrastructure, the government’s main focus is on supply chain
related infrastructure like cold storage, abattoirs and food parks.
❖ The establishment of food parks – a unique opportunity for entrepreneurs, including
foreign investors to enter in the Indian food processing sector
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The Budget allocation for the Ministry of Agriculture and Farmers’ Welfare has been raised
marginally by 4.5 per cent to Rs 1,32,513 crore for 2022-23 fiscal.

• The Budget allocation for Food Processing Industries increased by 2.25 times
to Rs 2,941.99 crore for the next fiscal.
• The budget allocation for Pradhan Mantri Kisan Sampada Yojana for the fiscal
year 2022-23 has been increased to Rs. 900 crores which was Rs. 791 crores in
2021-22 budget.
• The budget allocation for Production Linked Incentive Scheme for Food
Processing Industry for the fiscal year 2022-23 has been increased to Rs. 1022
crores which was Rs. 10 crores in 2021-22 budget.
• The budget allocation for Prime Minister Formalisation of Micro Food Processing
Enterprises Scheme for the fiscal year 2022-23 has been increased to Rs. 900
crores which was Rs. 399 crores in 2021-22 budget.
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Academic Committee
2021-2023

National Institute of Agricultural Extension Management (MANAGE)

Rajendranagar, Hyderabad, 500030