India has considered as one of major food producers in the world and contributes about 28% of India’s GDP. In terms of world ranking; India takes the first position in the production of cereals, Livestock and milk production, a second position in producing fruits and vegetables, and the fifth rank in producing wheat, rice, and groundnuts, spices, sugar & oilseeds, tea, coffee, and much more.
Factors allowing India to take a part in food processing sectors:
Vast supply of raw material
India is certainly one of the biggest manufacturers of wheat and rice.
India is the second largest producer of fruits, veggies, and groundnuts. That it accounts for approximately 10 percentage of the world’s fruits production with the country topping within the manufacturing of mangoes and bananas.
Coconuts, ginger, turmeric, cashew nuts and black pepper is broadly grown in a few components of the country.
Due to the high processing ranges, milk products provide a significant opportunity in India. India is the arena’s largest producer of milk thanks to the sturdy enterprise models formed via cooperative actions the country. Milk and related products account for 17% of India’s general expenditure foods. This part enjoys liberal guidelines as all milk merchandise besides malted ingredients are robotically allowed 51% foreign fairness participation and all export of dairy merchandise are freely allowed.
Low manufacturing cost
The skilled Indian workforce has ability to make the Indian food in low prices resulting in attracting the foreign market.
Gathered market from large urban middle class
Because of the massive population of 1.08 billion, India’s becomes large and growing market for food products. And by introduction of 350 million strong urban middle class with its changing food habits drags a massive market for agriculture products and processed foods.
Shifting of the conventional market to commercial farming
The process of dragging from the conventional market to commercial farming also allows the Indian food market to get a good rank in overall percentage.
Conducive food processing policy environment
The national policy on food processing wants to hike up the level of food processing from 2% to 10 % and also 25% in the coming years. For this, the Indian government has permitted 100% FDI in processing field.
This policy will ensure an appropriate environment for owners to establish up food processing industries through:
Strengthening of database and advertising intelligence system via studies and surveys to be performed in various ranges to enabled deliberate funding in the various region matching with the provision of raw material and marketing of processed merchandise strengthening extension services and to the farmers and co-operatives inside the regions of post-harvest control of agro-produce to encourage the advent of pre-processing centers close to the farms like packaging, washing, fumigation, and so on.
Efforts to encourage putting in of agro-processing centers as near the place of production as feasible to keep away from wastage and decrease transportation fee.
Promotion of investments, each overseas and domestic, simplification of documentation and methods under taxation legal guidelines to avoid needless harassment arising out of mere technicalities
Small and Medium Enterprises (SMEs) have been making an important contributions in food processing industries since 1990’s.The food processing industry under the SMEs flourished with the advent of the food packaging era and the development of the storage facilities within the cold storage units within the Indian market.
The food market is well worth about Rs.10.1 lakh crore out of which the Food Processing Industry contains 53% or Rs.5.3 lakh crore and from which the better percentage has dragged by way of the SME’s.
Moreover, do you know? The emergence of retail food chains, the acceptance of packaged meals and the emergence of the food courts in the India’s urban areas have contributed greatly to the meals processing unit of the SMEs. Moreover, with modernization and effect of the western way of life, the trend of consuming out of doors has extended the growth of the food processing industries within the Indian economic system. With hiking up the demand of the packaged food consumers in India, the general marketplace size of the food processing sector has also widened.
Opportunities Galore in Food Processing Industry with the aid of SME’s
There are abundant possibilities for food processing corporations in India. The demand for numerous products of meals processing enterprise is at the upward thrust due to the increase in consistent with capita profits of the Indians which results in better spending on price delivered foods.
As per the volumes of production, India ranks amongst the best within the global in some of the food merchandise. But from the total growth, the food processing SMEs contain the subsequent gadgets: