How to Start Food Manufacturing Business. Agro Based Food Processing Industry. Food Processing Projects in India.

Friday, November 3, 2017

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The term 'food processing' is mainly defined as a process of value addition to the agricultural or horticultural produce by various methods like grading, sorting and packaging. In other words, it is a technique of manufacturing and preserving food substances in an effective manner with a view to enhance their shelf life; improve quality as well as make them functionally more useful. It covers a wide spectrum of products from sub- sectors comprising agriculture, horticulture, plantation, animal husbandry and fisheries. It also includes other industries hat use agricultural inputs for manufacturing of edible products.

Food processing is any method used to turn fresh foods into food products. This can involve one or a combination of the following: washing, chopping, pasteurising, freezing, fermenting, packaging and many more.

Food processing also includes adding components to food, for example to extend shelf life, or adding vitamins and minerals to improve the nutritional quality of the food (fortification).

Food Processing Industry (FPI) in India is a sunrise sector that has gained prominence in the recent years. Easy availability of raw materials, changing lifestyles and favourable fiscal policies has given a considerable push to the industry’s growth. FPI serves as a vital link between the agriculture and manufacturing sectors of the economy. Strengthening this link is critical to reduce wastage of agricultural raw materials, improve the value of agricultural produce by increasing shelf-life as well as by fortifying the nutritive value of the food products and ensure remunerative prices to farmers as well as affordable prices to consumers. India has a population of one hundred crore plus and feeding this large a population calls for a strong FPI. The industry also assumes importance in the national economy due to the immense employment generation opportunities it offers and the export revenue it earns. India is one of the leading exporters of the processed food products. It has a competitive edge over other countries due to the wide variety of crops cultivated as a result of geographical and climatic diversity. Government too is trying to support the industry by formulating favourable policies. With adequate government focus on the infrastructural support, research and development and technological innovation in this sector, India could alleviate its domestic concerns on food security, malnutrition and food inflation.


Market outlook

India is the second largest food producer in the world after China. According to government estimates for the fiscal year 2015-16, the country’s total food market valued at US$39.71 billion and is projected to double in the next 10 years.  About 500 million consumers consume processed food every day.

India has about 26 types of different climatic conditions, 46 varieties of soils are there in India out of total 60 types of soils worldwide. 127 ‘agro climatic zones’ have been identified in India. Also, Indian food is known worldwide for its unique taste and aroma.

Indian food processing sector has potential to attract $ 33 billion of investment and generate employment of 9 million person’s days by FY 2024.

The food processing is a key contributor to employment generation in India. The policymakers have identified food processing as a key sector in encouraging labour movement from agriculture to manufacturing. By 2024, food processing sector is expected to employ 9 million people in India and expected to generate about 8,000 direct and 80,000 indirect jobs in the state.

Indian food processing industry is pegged close to $ 121 billion to $ 130 billion. With the second largest arable land in the world, it is the largest producer of milk, pulses, sugarcane and tea in the world and the second largest producer of wheat, rice, fruits and vegetables.

Indian food and retail market is projected to touch $ 482 billion by FY 2020 from the current level of $ 258 billion in 2015.

With globalisation and increasing trade across the borders approximately about 460 million tonnes of food valued at $ 3 billion is traded annually. India has thus, a great potential for global trade in agricultural and processed food products. The share of food processing exports in total exports was around 12 percent in the last few years. During FY 2011-15, India’s exports of processed food related products have been growing at a CAGR of 23.3 percent.

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.


Few Suggested Projects for Startups:


Amla powder is largely used for the production of Ayurvedic medicine. There is good demand of the Herbal medicinal product. The dried fruits of E.ribes are used in decoction for fevers and for diseases of the chest and skin. They are also used for ringworm and other skin diseases…….Read more


Karela is a vegetable which is grown in every part of India. Karela is especially grown in India in from April to August. In the session it is abundantly available. It is generally used as vegetable throughout India. It has also good medicinal value. It is generally bitter in taste.…….Read more


Powdered milk is a dairy product produced from cow milk. Cow milk basically contains water, fats, protein sugar and ash. About 86% to 88% of cow milk by weight is water. Milk powder is prepared by skimming the milk whereby a considerable but proportional cream substance is extracted before it is powdered.…….Read more


Most foods contain very high percentage of water. Microorganisms thrive when there is water, spoiling the food and altering its taste. Removing water keeps food from spoiling for long periods of time. Also removing water makes the food lighter, making it easy to package and transport.…….Read more


Pomegranate (Punica granatum) is an ancient favorite table fruit of tropical and sub-tropical regions of the world. The fruit is symbolic of plenty and very much liked for its cool, refreshing juice and valued for its medicinal properties.….Read more


Biscuits are an important product in human diet and are usually eaten with tea and are also used as weaning food for infants. Around the world Biscuits is the principal food and provides more nutrients than any other single food source.…….Read more


A pitaya or pitahaya is the fruit of several cactus species. "Pitaya" usually refers to fruit of the genus Stenocereus, while "pitahaya" or "dragon fruit" always refers to fruit of the genus Hylocereus. Dragonfruit stems are scandent (climbing habit), creeping, sprawling or clambering, and branch profusely.…….Read more


Salt is existent in all animal and vegetable life and is coeval with life itself. Salt was the name originally given to the residue left by evaporation of sea water. Afterwards the name was employed to include all substances held in solution in sea water.…….Read more


The term cookies generally refer a baked product containing a percentage of sugar and fat relative to the flour and a small quantity of water. This general statement on composition separates cookies from bread that contain relatively low level of sugar and fat and intermediate level of water.…….Read more


Soy protein is a protein that is isolated from soybean. It is made from soybean meal that has been dehulled and defatted. Soy protein is generally regarded as the storage protein held in discrete particles called protein bodies, which are estimated to contain at least 60 to 70% of the total soybean protein……Read more


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