The food processing industry is one of the largest industries in India and ranks fifth in terms of production, consumption and exports. It produces several food products such as meat, poultry, fisheries, fruits, vegetables, spices, milk and milk products, alcoholic beverages, plantations and grains. The scope and significance of food processing industry in India are:
Enhancing the value of agricultural produce: The food processing industry adds value to the raw agricultural produce by increasing their shelf life, quality, variety, and convenience. It also reduces post-harvest losses and wastage of food products.
Generating employment and income: The food processing industry provides employment opportunities to about 13.7 million people directly and 35.2 million people indirectly in India. It also contributes to the income of farmers, processors, retailers, and exporters.
Boosting exports and foreign exchange: The food processing industry is a major exporter of processed food products such as processed fruits and juices, pulses, guar gum, groundnuts, milled products, cereals preparations, oil meals and alcoholic beverages. It earned US$ 41.25 billion in foreign exchange in 2020-21.
Meeting the domestic demand and preferences: The food processing industry caters to the growing domestic demand and preferences of consumers for processed food products such as ready-to-eat (RTE), ready-to-cook (RTC), health foods, organic foods, ethnic foods, etc. It also meets the nutritional needs and food safety standards of the population.
Promoting innovation and entrepreneurship: The food processing industry encourages innovation and entrepreneurship by creating new products, processes, technologies, markets, and business models. It also attracts investments from domestic and foreign players.