Food Processing: A Game Changer

Context:

India is one of the biggest food producing hub in the world but recently food processing industry in India is not showing the desired results.

Issues involved in food processing industry:

• We are not able to increase the export of food processing export because of issues generated by advance economy which impacts out export potential.
• In domestic sector the problems are associated with poor storage and warehousing facilities and lack of dedicated institution to promote post-harvest activity in India.
• Lot of inorganic chemicals is being in India to produce farm product which needs to be replaced with organic component.
• The international standards do not allow export of Indian farm product because of high inorganic components.
• The public investment in agriculture is another issue that needs to be addressed.
• In India agriculture is being done without focusing on quality and MNCs are very focus on quality of farm produce and law abiding.
• However, the local companies do not care about law and hence there is a challenge of regulatory environment to implement the laws related with tonnage limitation on transportation of farm produce, disposal of waste etc.
• The domestic industries have immense potential – $ 10 Billion food processing market which is to be increase in recent year.
• An unproductive cattle is increasingly not been sold in the cattle mandis.
• Cattle mandis in North India are getting more deserted.

Can India become a global food processing hub?

India as one of the biggest food producing hub in the world but recently food processing industry in India are not able to take off because:

• The World Food India 2017 was timely intervention to promote the food processing sector in India.
• India is one of the largest food producers of the world but unfortunately the food processing sector has not taken up.
• Many of the food items such as biscuits, chips etc. were imported from Australia, New Zealand and Dubai in recent past.
• Now our agriculture is about to take big leap and we have to ensure that farmers produce get big market, at a fair price to be able to pick up the agriculture productivity.
• There is need for surplus food output needs to convert into food processing items for domestic and global consumption.

Scope for food processing industry:

• India is 1, 2 or 3^rdrank in production of major farm product & dairies etc. and globally India is very important in all food production.
• At present the food processing industry in India has $ 10 billion market with a potential to increase to $ 540 Billion by 2020.
• International market is looking Indian agriculture how the Mansoon processing.
• It is major sector which directly creates jobs and could help to achieve double farmer’s income by 2022.
• It has to be combination of output livestock and food processing industries. India should fit in to global supply chain system of food processing.
• India has done basic environment preparedness to attract investment in food processing sector. If will have good domestic market to attracts investment.
• Ease of Doing Business is important for food processing sector because it is significant part of Make in India program.
• The sector has immense potential but full of problems.
• India has 2 % of global food processing export of food processing export as compared to 10% of USA.

What needs to be done?

• India is importing $ 22 Billion of food processing product from foreign market. If we substitute our farm product with diversification of agriculture with a focus on second Green Revolution.
• Food habit in world is changing and with diversification of crop pattern that will concentrate not only new food items, new seeds, technology but also competes with the global food giants such as USA and China.
• India is agrarian economy and the large farmers of India have potential to diversify their crop pattern.
• There is a lot of diversity in farm productivity among the states.
• Many states such as Punjab, Haryana has high crop productivity as compared to other states. Thus, by adopting measures to increase farm productivity to give a big push to food processing sector.
• Adaptation of good practices of major food processing successful ventures such as Amul, Nestle, Haldiram, Bikanerwals etc.
• Indian food processing market is as good as foreign market and by promoting domestic food processing industries and branding their product in international market will boost the food processing sector in India.

Way ahead:

• Food processing sector in India require linking of farm with mandisand mandis with warehouse facility and then increase in farm productivity will promote food processing sector.
• Food processing is emerging field where new generation of entrepreneur can venture however it requires training to a large number of students, creating a industry institution linkage, technology transfer of best food processing technology and training students to set up enterprises.
• Ministry of Food processing is promoting Mega Food Park Scheme in India which is providing alternate to farmers to adopt good agriculture practices.
• Increasing domestic storage.