Thefood processing industry has been slated for accelerated growth. It isprojected to be a futuristic industry and it is anticipated that, over theyears, it will emerge as a leading player in the global markets. As a result,the industry is seen to be witnessing feverish activity.
Thesize of the processed food market is estimated to be over Rs. 110 bn and isgrowing at 10 to 15% per annum. The Rs. 4000-bn food market in India has beengrowing at the rate of 6.5% a year. The Indian middle class spends an estimatedaround Rs. 700 bn annually on food and groceries alone. The ready-to-eatsegment is growing faster as technology is improving and so is the lifestyle ofthe people.
Thetrue potential of the food processing industry is slowly being realised. Thisis reflected in the fact that the government has classified food processingindustry as a thrust area.
Theindustry's gains have been confined mainly to the urban consumers in thedomestic market. Of the total production of fruits and vegetables, a mere 2.2%is processed, which is far too low seen from the perspective of what has beenachieved by other countries as varied as Thailand (30%), Philippines (78%),Malaysia (80%) and Brazil (70%). Nearly a third of the produce is estimated tobe wasted for want of scientifically managed post-harvest care and procedures.
Althoughrelatively significant, the level of processing in other sectors, as well, isalso low by developed country standards: marine products, 26%; poultry 6%; beef20%. The average level of processing in the developed countries ranges between60 and 70%.
