India's Food Processing Sector
Report Highlights:
India’s food-processing sector, although still in a nascent stage, has undergone important changes over the last six to seven years. The types, variety, quality, and presentation of products have all improved, mainly as a result of economic liberalization, which led to foreign direct investment (FDI) in this sector. Several multinational companies, including US companies like Pepsi, Coca Cola, ConAgra, Cargill, Heinz, and Kellogg’s have invested in the Indian food-processing industry. The growth in the food-processing sector has generated increased interest in quality food ingredients in order to produce higher quality foods.
I. MARKET SUMMARY
India’s food-processing sector, though still developing, contributes 14 percent to the manufacturing GDP (5.5 percent of aggregate GDP), produces goods worth rs. 2.8 trillion ($64 billion), and employs 13 million people . Much of India’s food-processing industry is small-scale and involves very little value addition, although in recent years several multinational food-processing companies have started operations in India (see Section II. C). A plethora of internal restrictions, including (a) prohibition on foreign direct investment in retail, (b) prohibitions on contract farming, (c) barriers to interstate commerce based on revenue and food security concerns, (d) some of the highest taxes on processed foods in the world, and (e) inefficient in infrastructure and marketing networks seriously constrain growth of the sector.
The almost year-round availability of fresh products across the country, combined with the consumers’ preference for fresh products and freshly cooked foods has dampened demand for processed food products. The level of processing varies across segments – ranging from less than 2 percent of the production in the case of fruits and vegetables to over 90 percent in non-perishable products such as cereals and pulses. In the latter, however, processing involves very little value addition, and is mostly confined to grading, cleaning, milling, and packing; with negligible use of additives, preservatives, and flavors.
LEVEL OF PROCESSING IN PERISHABLE PRODUCTS
Product Level of Processing (% of total production)
Organized
Sector Unorganized
Sector 1/ Total
Fruits & vegetables 1.2 0.5 1.7
Milk 15.0 22.0 37.0
Meat 21.0 0 21.0
Poultry 6.0 0 6.0
Marine fisheries 1.7 9.0 10.7
Shrimp 0.4 1.0 1.4
Source: Rabobank Analysis
1/ “Unorganized” in fruits and vegetables includes unbranded pickles, sauces,
and potato chips, but excludes processing by street vendors; “unorganized”
in dairy includes processing by sweet food makers; “unorganized” in marine products includes processing by small fishermen.
According to the Ministry of Food-processing Industries (MFPI), the food-processing industry over the last decade has grown at an average annual rate of 7.
Many developed and developing countries want to protect their own industries such as India who is still reluctant to give foreign firms greater access to its economy, as shown by the political row over its much delayed decision to open up the supermarket sector to global giants
RNRA Team, “Supermarkets, Fresh Produce and New Commodity Chains: What Future for the Small Producer?” Hot Topics: February, 2004.
Over the years food has changed from more natural occurring products to quick and easily accessible ones. I for one blame the companies who accept and encourage this. From the previous essay, it also provides a series of questions for which we should be analyzing our food: “How fresh is it? How far was it transported? How pure or clean is it?” (Berry). Simply, we need to be more aware about our food. Food used to be only grown. There was no way
Our current system of corporate-dominated, industrial-style farming might not resemble the old-fashioned farms of yore, but the modern method of raising food has been a surprisingly long time in the making. That's one of the astonishing revelations found in Christopher D. Cook's "Diet for a Dead Planet: Big Business and the Coming Food Crisis" (2004, 2006, The New Press), which explores in great detail the often unappealing, yet largely unseen, underbelly of today's food production and processing machine. While some of the material will be familiar to those who've read Michael Pollan's "The Omnivore's Dilemma" or Eric Schlosser's "Fast-Food Nation," Cook's work provides many new insights for anyone who's concerned about how and what we eat,
In Raj Patel’s novel Stuffed and Starved, Patel goes through every aspect of the food production process by taking the experiences of all the people involved in food production from around the world. Patel concludes by eventually blaming both big corporations and governments for their critical role in undermining local, cultural, and sustainable foodways and in so doing causing the key food-related problems of today such as starvation and obesity. In this book of facts and serious crime, Patel's Stuffed and Starved is a general but available analysis of global food struggles that has a goal of enlightening and motivating the general Western public that there is something critically wrong with our food system.
Introduction India is the world’s second most populated country with over 1.2 billion people. Since its independence from British rule in 1947, the country has been more or less a stable democracy. Until 1991, Indian governments imposed economic austerity and its markets were comparatively closed to the world. Economic reforms in 1991 brought about a change which made India an attractive and huge market for multinational corporations from all over the world (Joshi 8). Retail industry within a globalized world is one of the most thriving and profitable sectors.
"U.S. Food System Facts Sheet." Center for Sustainable Systems . The University of Michigan , 2010. Web. 29 Nov. 2011. .
The product quality and safety of the fast foods in Asia is a major concern threatening the establishment of more fast foods in this countries. The fast food companies are faced with a challenge in meeting the standards in this foreign countries which reduces their confidence across international borders. The Asian economies such as in China have registered slow growth overtime which have led to stagnant incomes from the people (Frost, 2009). This hinders the customer`s purchase powers which in turn prompts them to fall back to making meals at
Food has been a common source of necessity in our everyday lives as humans. It helps gives us nutrition and energy to live throughout our life. Over several decades, the development of making foods has evolved. They have changed from natural to processed foods in recent years. Nowadays natural ingredients are barely used in the making of foods like bread, cheese, or yogurt. The food industry today has replaced natural food making with inorganic ingredients. The cause of this switch is due to processed foods being easier, cheaper and faster to make. Artificial nutrition and processed foods have been proven to last longer in market shelves then natural foods. Also, due to artificial additives in processed foods they help satisfy consumers taste more than natural ingredients. The method of producing processed foods is common in today's food industry and helps make money faster and efficiently for companies. Examples of this can be found in all markets that distribute food. Even though processed foods may be easier and faster to make, they are nowhere near as healthy for consumers compared to natural foods. Natural foods are healthier, wholesome, and beneficial to the human body and planet then processed foods.
India's ice cream industry offers a potentially lucrative market for US agricultural and food exporters. Trade liberalization in the country is driving the growth and diversification of the sector, with consumers given a wide range of ice cream flavors such as vanilla, strawberry, butterscotch and chocolate. High tariff rates and inefficient distribution systems continue to hamper the import market, but an increasingly affluent younger generation of consumers will likely boost the ice cream sales.
cost soon adds up and exceeds the cost of buying fresh ingredients. It also saves
The fourth largest sector in the Indian economy is all set for 16% growth during 2008-09, from a base of Rs. 85470 crores, as predicted by FICCI. Going forward, as anticipated by CRISIL, FMCG sector will touch around Rs. 140000 crores by 2015 (33.4B$).
The growing world population is demanding more and different kinds of food. Rapid economic growth in many developing countries has pushed up consumers' purchasing power, generated rising demand for food, and shifted food demand away from traditional staples and toward higher-value foods like meat and milk.
In conclusion, Indian cooking can very well be known to be vivid, exquisite, and simply delicious. India is a banquet expressed in colors, smells, flavors, and personalities. The hundreds of spices which most Indian cooks use, show exactly why their food can always stand out from others and taste fantastic. The traditional foods used in India such as curry, Roti, and chutneys are some of the reasons as to why India’s dishes are so extraordinary. The tasty snacks in India complete the list by allowing Indians to grab a quick bite while on the way to an important desti-nation.
and it was he who offered 12,000-franc pieces to the person who devised a safe