What Are the Food Processing Industries in India?

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Food Processing is the process of converting agricultural products into food or converting one type of food into another. From grinding grain to make raw flour to home cooking to advanced industrial procedures used to manufacture convenience items, food processing encompasses a wide range of activities. Some food processing methods play a vital role in minimising food waste and enhancing food preservation, hence lowering agriculture's overall environmental impact and increasing food security.

Most foods require primary food processing to make them edible, while secondary food processing transforms the ingredients into familiar dishes like bread. Tertiary food processing has been criticized for causing obesity and overnutrition by including too much sugar and salt, too little fiber, and being otherwise unhealthy in terms of human and farm animal dietary demands.

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Food Processing Industry – Overview

With encouraging development in the food retail sector, favorable economic policies, and attractive fiscal incentives, India's food ecosystem provides enormous business prospects. India is the world's sixth-largest food and grocery market. In India, the food and grocery retail business accounts for over 65 percent of the entire retail market.

The Ministry of Food Processing Industry (MoFPI) of the Indian government is also taking all necessary efforts to increase investment in the food processing industry. As of January 13, 2021, the government had sanctioned 37 food parks under the Mega Food Parks Scheme, 21 of which were operating and 16 of which were under construction.

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Food Industry Scenario of India

India's food processing industry is one of the world's largest, with output anticipated to reach $535 billion by 2025-26.

Food processing plays a critical role in connecting Indian farmers with domestic and international consumers. The Ministry of Food Processing Industries (MoFPI) is working hard to attract investment throughout the food processing value chain. The industry employs roughly 1.93 million people in 39,748 registered units, with a total fixed capital of $32.75 billion and a total output of $158.69 billion. Grain, sugar, edible oils, drinks, and dairy products are all major industries in the food processing business.

Food Processing Industry Segmentation

· Cereal/ pulse milling

· Fruit & vegetable processing

· Milk & milk products

· Beverages like coffee, tea & cocoa

· Fish, poultry, eggs & products

· Meat & meat products

· Aerated waters/soft drinks

· Beer/alcoholic beverages

· Bread, biscuits & other bakery products

· Edible oil/fats.

· Confectioneries

· Breakfast cereals, malt protein, weaning, extruded food products

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Key Facts

· In 2019-20, horticulture food grains would total 296.65 million tonnes.

· 187.7 million tonnes of milk were produced in 2018-19.

· Approximately 103.3 billion eggs were produced in 2018-19.

· In 2018-19, total fish production was 13.75 MMT.

· The Food Grocery (increasing at a CAGR of 25%) and Food Services (growing at a CAGR of 15%) segments dominate the Food Retail market.

· During the 2019-20 fiscal year, India exported 12,89,651 MT of seafood worth $6.68 billion.

Government Initiatives

1 The objective of PMKSY is to supplement agriculture, modernize processing and decrease Agri-waste. It is an umbrella scheme incorporating ongoing schemes.

Under PMKSY the following schemes are to be implemented.

· Mega Food Parks.

· Integrated cold chain , Value Addition, and Preservation Infrastructure.

· Creation/Expansion of Food Processing/Preservation Capacities.

· Infrastructure for Agro-Processing Clusters.

· Scheme for Creation of Backward and Forward Linkages.

· Food Safety & Quality Assurance Infrastructure.

· Human Resources and Institutions.

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2.Foreign Direct Investment (FDI) policy: Food processing businesses are allowed to accept up to 100% FDI under the automatic method.

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3. The Agricultural and Processed Food Products Export Development Authority (APEDA), an apex institution under the Ministry of Commerce and Industry, is responsible for the "export" of scheduled products.

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Salary and Wages	Turnover Per Annum
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Annexure 1:: Cost of Project and Means of Finance
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Annexure 12 :: Shareholding Pattern and Stake Status Equity Capital Preference Share Capital
Annexure 13 :: Quantitative Details-Output/Sales/Stocks Determined Capacity P.A of Products/Services Achievable Efficiency/Yield % of Products/Services/Items Net Usable Load/Capacity of Products/Services/Items Expected Sales/ Revenue/ Income of Products/ Services/ Items
Annexure 14 :: Product wise domestic Sales Realisation	Annexure 15 :: Total Raw Material Cost
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Annexure 28 :: Selling Expenses	Annexure 29 :: Depreciation Charges – as per Books (Total)
Annexure 30 :: Depreciation Charges – as per Books (P & M)	Annexure 31 :: Depreciation Charges - As per IT Act WDV (Total)
Annexure 32 :: Depreciation Charges - As per IT Act WDV (P & M)	Annexure 33 :: Interest and Repayment - Term Loans
Annexure 34 :: Tax on Profits	Annexure 35 ::Projected Pay-Back Period And IRR