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Food Processing Industry: Scope & Challenges
The Food Processing Industry (FPI) in India is one of the most important in terms of production, consumption, export, and growth prospects. It is projected to grow at a speed of 104 %, touching US$ 482 billion by 2020. The food sector has emerged as a high-growth and high-profit sector thanks to an outsized agriculture sector, abundant livestock, and price competitiveness. India is the largest producer of milk and the second-largest producer of fruits and vegetables. With 20 agroclimatic regions, all 15 major climates within the world exist in India.
The Food Processing Industry in India may be a sunrise sector that has gained prominence within recent years. Demand for fast food, packed food, ready-to-eat food has increased significantly. Though it indicates growth for the Indian food industry, manufacturing companies face an enormous challenge to take care of the standard & safety at works. The food industry has got to follow many steps like washing, drying, filleting, heating, shredding, mixing, filling, and packing, which are generally appropriated by Automation.
Ministry of Food Processing Industries, MoFPI is making all efforts to encourage investments within the business. Under the “Make In India” campaign, the govt of India has approved the set-up of 5 Mega Food Parks with the provision of Rs. 2,000 Crore (US$ 301.27 million) in 2015-16, to supply cheaper credit to the food processing industry.
The effect of Corona
The spread of the coronavirus started relatively late in India, compared with other countries. With a 21-day lockdown announced by the government, the impact on Indian food & Agri has started. The impact varies in different sectors. Food-services and poultry, for example, are affected severely (poultry was affected even before the lockdown due to rumors around the coronavirus). Other sectors, such as packaged food and grocery retail, have not been impacted much so far, but potential severe supply-chain disruption will impact most sectors going forward.
