With the restructuring of India’s food processing industry on cards, the current share of processed food trade is expected to increase significantly  Considering the increasing importance of India’s food processing industry, the Ministry of Food Processing Industries in association with its other wings have come up with various initiatives and schemes to revamp the industry. Thanks to factors such as urbanisation leading to change in lifestyles and food habits and emergence of organised food retail chains, the Indian food processing industry has grown by leaps and bounds in the recent years. Currently, the processed food segment within the food processing sector has acquired prominence in both domestic and global markets. Post-restructuring, by 2015, the current share of processed food trade in fruits and vegetables, fisheries, poultry, buffalo meat and milk is expected to increase significantly.
Processed food export to increase
In a bid to revamp the industry, the Food Processing Ministry requires huge investments. An Associated Chambers of Commerce and Industry study titled ‘Emerging Opportunities and Strategic Thrust for Food Processing’ estimated that investment worth US$30 billion is required to restructure the industry. The study revealed that with the projected investment, export of processed food is likely increase by 70% in the next 5 years to touch the US$25-billion target.
According to Kanupriya Joshi, manager-Technical Services, Midas Foods India Private Limited, “Government initiatives are not enough to boost export of processed food. People also need to change their attitude towards food trade. Instead of maintaining different food standards for export and import, ideally, it should be standardised.”
Mega Food Park Scheme
The government has been introducing schemes to upgrade infrastructural facilities in the food processing sector. One such scheme is the Mega Food Park Scheme. The Planning Commission, in its Eleventh Five Year Plan, recommended establishment of ten such parks in India, which will improve infrastructure, transportation, logistics facilities as well as establish centralised processing centres. The government will subsidise the cost of setting up these mega food parks by up to 50%.
In this context, while speaking to a FoodProcessing360 correspondent, Bidyut Baruah, regional manager, Agricultural and Processed Food Products, Export Development Authority, says, “These parks will benefit small entrepreneurs the most and would also reduce post harvest losses, which has been plaguing this sector for long.” It is expected that the annual turnover from each of these food parks would be around Rs 450-500 crore and would generate direct and indirect employment opportunities for approximately 30,000 people.
Shalmoli Kundu
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