Food Processing Industry In India : Prospectes and Innovations

Abstract

The food processing industry plays an important role both in the nation's output and employment generation. It links the agricultural sector with industry. In India, it becomes even more important as the working population primarily depends on the agricultural sector. The food processing industry (FPI) is a well-established and well-performing sector in developed nations whereas in India it is in a very nascent stage despite India being either the largest or the second-largest producer of various commodities in the world. In this study, by using MOFPI (Ministry of food processing industries) and ASI (Annual Surveys of Industries) databases, it shows that only less than 10% of India’s agriculture produce is processed and in case of fruits and vegetables only 2.2% of the produce is processed which is lower than processing which takes place in various developing countries. Various problems with the food processing industries are ranging from infrastructural support, supply chain disruption to market linkages leading to hindrances of the overall growth. Some of the innovative models including cooperatives and collective ownership have emerged and projected as sustainable solutions in the food processing industry. FPI should be farmers cooperative in nature and may be linked to one district one product scheme for its sustenance in the long run.