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Profitable Agriculture Based Project Ideas & Small Scale Project Outlines in Processed Food Industries.

Tuesday, April 17, 2018

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India is the world‘s second largest producer of food after China. The arable land area of 159.7 mn hectares (394.6 mn acres) is the second largest in the world (after the US). India has a strong raw material base for the food processing industry. India is one of the largest producers of certain fruits, vegetables, pulses, cereals and dairy products such as mangoes, papaya, potatoes, onions, ginger, check peas, rice, wheat, groundnuts, milk and eggs among others.

The Indian food processing industry is primarily export orient. India's geographical situation gives it the unique advantage of connectivity to Europe, the Middle East, Japan, Singapore, Thailand, Malaysia and Korea. One such example indicating India's location advantage is the value of trade in agriculture and processed food between India and Gulf region.

The food processing industry is a mature sector which is experiencing a turbulent period due to the growing global demands for food safety, increasing food insecurity and consumer demand for higher quality and sustainability.

Changing lifestyle, safety, and convenience are the major driving factors for the global processed food market. Excellent marketing strategies for such products also play an important role. Innovative packaging is used by processed food industry which in turn increases the demand for the global packaging industry.

The processed food industry is one of the largest in India. It is ranked fifth in terms of export, expected growth, production and consumption. As a matter of fact, increasing incomes are accompanied by changes to our food habits. The government, on its part, has formulated and implemented several plans and schemes to provide financial assistance, initially to set up food processing units and later to modernize as well. There is excellent support with regard to infrastructure, research and human resource development, in addition to other promotional aspects, to encourage the food processing industry.

The major challenge for the global processed food industry is the health awareness, food contamination, and government regulations. The health problems associated with preservatives and other additives is a major concern. However, the major players are coming up with innovative ideas such as fortification of various nutrients in the processed food to overcome this problem.

Factors such as increasing consumer preference towards convenience foods indirectly favor the increasing demand for extruded food products, subsequently driving the extrusion equipment industry.  In addition to this, the rapid growth of the processed food industry in the fast-growing urban households of developing economies is projected to drive the demand for extruded food products. These factors are driving the demand for food extruders from food manufacturers, driving the growth of the food extrusion market.

The Food Processing industry is a sunrise sector and is vital to India’s development, primarily due to the linkages and synergies it promotes between the two pillars of our economy - industry and agriculture. The sector in India includes fruit and vegetables; spices; meat and poultry; milk and milk products, alcoholic beverages, fisheries, grain processing and other consumer product groups such as confectionery, chocolates, cocoa products, soya-based products, mineral water and high-protein foods.

Food processing sector is indispensable for the development of the economy. It helps to commercialize farming which gives farmers the opportunity to diversify and increase their income and generates employment. However, a large number of FBOs have small operations and productions and many are in the unorganised sector. The organised sector remains small and includes flour mills, fish processing units, fruit and vegetable processing units, sweetened and aerated water units, milk product units, sugar mills, solvent extract units, rice mills, modernised rice mills. The organized sector consists of only 30 per cent the food processing industry in India and within this sector highest meat and poultry processed foods segment contributes the most. India’s food processing sector is highly fragmented and comprises of fruit and vegetables, spices, meat and poultry, milk and milk products, beer and beverages, fisheries, plantation, grain processing, packaged drinks and consumer products such as confectionery, chocolates and cocoa products, soya-based products, packaged drinking water, high protein foods, snacks, etc.

With growing awareness, better health consciousness, need for convenience, and improving lifestyles, and the share of processed food is gradually and steadily increasing on consumer plates across the world. In India, this change is bolstered by rising per capita income, a large young population (60 percent below 35 years of age), deeper retail penetration, and a growing number of nuclear families. India’s demands for processed food is, therefore, expected to increase to about 8.5 percent by the end of 2017.

The main reason to invest in Food Processing Industry in India is its quick growth. In addition to this reason, there are other reasons such as vast source of raw material, shift from conventional farming of food grains to horticulture, India’s huge population out of which major part of urban middle class are significantly changing the food habits, Low production cost, change in consumption patterns, introduction of food parks and the attractive fiscal incentives.


55 Most Profitable Micro, Small, Medium Scale Food Processing (Processed Food) Projects and Agriculture Based Business Ideas for Startup

Author:                NPCS Board of Food Technologists

ISBN:                   9789381039908

Book Code:          NI316

Pages:                  392

Indian Price:        1, 275/-  

US$:                     125-

Publisher:            Niir Project Consultancy Services

Food processing is a way or technique that is used to convert raw foods into well-cooked and well preserved eatables for both humans and animals. Food processing uses raw, clean, harvested crops or slaughtered and butchered animals and turns these into food products for daily consumption. A number of products are nutritious, easy to cook and have a long shelf life. They are packed in an attractive manner and are highly marketable.

The food processing industry plays a vital role in the economy of any country because it links agriculture to industry. The food processing industry is responsible for diversification of agriculture, improvement of value-added opportunities, and creation of excess that can be exported. The food processing industry of India is one of the largest in the world in terms of manufacture, use, export, and development. The sector has immense potential to contribute to growth and employment opportunities of the country.

Rapid globalization and development of economy has taken a toll on the lives of consumers, particularly those residing in urban areas. Employment growth and increased work pressure in organizations leaves consumers with little time for personal care. Additionally, more product offerings by food companies and marketing on a large scale has altered people’s appetite- they demand more and more processed food items every day. These are some of the reasons for the steady growth of food processing industry in India in the past few years. Some of the biggest companies making their presence felt in the Indian market are Unilever, Dabur, Nestle, Nissin, Cadbury’s, Kelloggs’, Godrej, ITC, Britannia, Kohinoor Foods Ltd., Mother Dairy, Pepsico India, Marico Ltd, Patanjali, MTR Foods etc.

Food processing industry is of enormous significance for any country's development because with the changing lifestyle, there has been a consistent increase in preference and demand for packaged foods amongst the population. These can be seen as a great opportunity by the packaging companies. The agricultural strength amalgamated with a various other factors like competent market price and favorable government policies have further aggrandized the food packaging sector.

The Major Contents of the Book are Soy Flour & Milk, Starch Derivatives, Saccharin, Tomato Paste, Edible Corn Oil, Malt, Instant Noodles, Garlic Oil and Powder, Cattle Feed, Banana Wafers, Biscuits, Bread, Candy, Chocolates, Potato Chips, Rice Flakes (Poha), Corn Flakes, Baby Cereal Food, Fruit Juice, Milk Powder, Paneer, Papad, Ghee, Extruded Food (Kurkure Type), Instant Tea, Jam & Jelly, Khakhra, Soft Drinks, Spices, Sweet Scented Supari, Cake & Pastry, Banana Chips, Papad, Besan, Pickles, Ice-Cream Cones, Honey, Flour Mill, Tutti-Fruitti, Confectionery, Noodles, Ice Candy, Namkeen, Vermicelli, Mango Pappad (Aam Papad), Chilli Powder, Popcorn, Supari Chips, Revadi and Gazak, Mava, Tomato Sauce and Ketchup, Ice Cream, Baking Powder, Moong Dal Bari, Packaged Drinking Water With Pet Bottles, Food Packaging & Labelling, Good Manufacturing Practices in Food Industry, Manufacturing Process, Process Flow Diagrams, Addresses of Plant & Machinery Suppliers and Photographs of Machineries.

It will be a standard reference book for professionals, entrepreneurs, agriculturists, agriculture universities, food technologists, those studying and researching in this important area and others interested in the field of Food products manufacturing.


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