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Monday, November 05, 2007
Ministry of Food Processing Industries
 

Food Processing Sector India’s Investment Destination
17:26 IST

BACKGROUNDER

            India has a major role in the future of global food business as it has a strong base in agriculture and provides a large and varied raw material base for Food Processing industry. It is a country of over 1.10 billion consumers and there is a largely untapped domestic market of 1000 million consumers in the food processing sector and two hundred million more consumers are expected to shift to processed food by 2010.

Major Intervention in the Sector

            60 Agri Export Zones set up for end-to-end development for export of specific product from geographically contiguous areas.  58 Food Parks approved to enable small and medium food and beverage units to set up and to use capital intensive common facilities such as cold storage, ware house, quality control labs, effluent treatment plant, etc. with financial assistance from Ministry of Food Processing Industries. A National Institute of Food Technology Entrepreneurship & Management (NIFTEM), to produce world-class manpower, has been set up. Paddy Processing Research Centre (PPRC), Thanjavur, being developed into National Level Institute. Financial assistance has been provided for setting up new units, modernization of existing units in food processing sector. Financial assistance also provided for establishing/upgrading food analysis centers, quality laboratories, carrying out research, setting up training centers and running training programmes for entrepreneurs in this sector.

Development of Infrastructure Initiative         

            Widespread road and rail network.  National Highway Development Project underway to convert more than 14,000 km of highways to 4/6-lanes connecting: (i) Four major cities of Delhi, Mumbai, Chennai and Kolkatta (ii) North-South (Srinagar to Kanyakumari) and East – West (Silchar to Porbandar) corridors and to Major Ports.  Rural connectivity to unconnected habitations with 500 persons or more by 2007.  Infrastructure for post harvest management, logistics (including cold chain) markets, retailing, food processing are priority areas.  Attracting FDI & Private investment in infrastructure.

Exporting Excellence

            India is self-sufficiencies in production of food grains. The Government laid special emphasis on the exports. As a result, India exports in the food sector witness rapid growth.

Fresh Fruits and Vegetables

            The main fruits that enter the export market are mangoes, grapes, apples, citrus and other fruits like bananas, sapota, litchis etc. Besides, many nut crops like walnuts, pistachio, coconuts, almonds and Cashew nuts are also grown commercially and exported. Important vegetables exported include potatoes, onions, cauliflowers, cabbages, green peas, okra, green chillies etc. In addition, varieties of spices like ginger, garlic, black pepper, turmeric, cumin seed, cloves etc are commercially grown and exported.

            The total quantity of fresh fruits and vegetables exported was about 1296530 metric tonnes valued at Rs. 1363.71 crore during the year 2004-05 and about 1465040 Metric tonnes valued at Rs.1658.71 crore in 2005-06 (an increase of about 21%).

Processed Fruits and Vegetables

            Export of Processed fruits and vegetables valued at Rs. 1551.29 crore in 2004-06. This was increased to Rs. 2454.60 crore during 2005-06 (about 58% growth).

            Export of other processed foods like groundnuts, jaggery & confectionery, cocoa product, cereal preparations, miscellaneous preparation etc is valued at Rs. 2137.85 crore in 2004-05 and Rs. 2613.93 crore in 205-06 (a growth of about 22%).

Animal Products       

            Export of animal products like Buffalo meat, Sheep/Goat meat, Poultry Products, Dairy Products, Animal Casing and Processed Meat is valued at Rs. 2465.63 crore in 2004-05 and Rs. 3565.96 crore in 2005-06 (an increased of about 44%).

Export Destination

            U.S.A. E.U. Countries, Russia, Middle East, West Asian Countries South and South East Asian Countries, Japan, Philippines etc.

VL/VN

 

 
 
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