Role of Food Processing Industry for Food Security in India

Topics: Food, Indian cuisine, India Pages: 11 (3557 words) Published: January 4, 2011
Jyoti Shekhar Jakhete
KCE’S Institute of Management & Research,
N.H no 6, Behind DIC. Jalgaon-425001 (MS) India
Phone no:0257-2260567


Indian food processing industry has seen significant growth and changes over the past few years, driven by changing trends in markets, consumer segments and regulations. These trends, such as changing demographics, growing population and rapid urbanisation are expected to continue in the future and therefore, will shape the demand for value added products and thus for food processing industry in India. The Government of India’s focus towards food processing industry as a priority sector is expected to ensure policies to support investment in this sector and thus attract more FDI.

Some of the sectors which are relatively more attractive include Fruits and Vegetables, Meat, poultry and fisheries, dairy products, snack foods and ready-to-make items. India, having access to vast pool of natural resources and growing technical knowledge base, has strong comparative advantages over other nations in this industry. Also, the Government has provided various incentives such as capital subsidies and tax exemptions for boosting investments in these segments.

However despite the various aspects making these sectors attractive certain success factors are crucial in reaping their potential. These include, scale and supply chain efficiency, brand competitiveness and effective marketing, deploying superior technology, product innovation and pricing.

Many Indian company such as “HALDIRAM’ have been successful by leveraging the India-advantage. Learning from the experience of this successful traditional food industy and in light of the above assessment, the food processing sector in India clearly have a major role in food security and an attractive sector for investment and offers significant growth potential to companies so investing.

A well-integrated supply chain and a successful marketing strategy with investments in the most attractive segments is key to competitiveness to success in this sector. This work is based on an interview with Mr.ShivkishanAgrawal, Director, Haldiram’s Nagpur.

Keywords: Success factors, India-advantage, food security

1.Introduction :
The food industry in India is high with attempts at value-addition to make food more nutritious and healthy. Ready –to-eat food packs are gaining popularity even in small towns. This has been fuelled by growing urbanisation, large disposable incomes, change in people’s lifestyles as well as consumption patterns. The new wave in food industry is not only about multinational companies arriving here attracted by the prospective size of the market, it is also about traditional Indian food and spices making a mark in the world market. Looking at the rapid rate at which the shelf space of the global food market is being gobbled up by Indian food processors, it is only a matter of time that the whole world relishes the taste of India. Ironically the Indian food processing industry began its journey with a variety of products of western origin that were marketed primarily to cater to the urban middle class. For example bread, butter, cheese, jam, biscuits, noodles, hamburgers, pizzas and pastas, soft drinks, carbonated beverages, chocolates, ice-cream etc. which have their origin in the west. Now ready-to-eat/cook Indian food items, dairy products, marine and meat products and also agri food products are going in reverse gear to foreign countries. The Indian food sector, however, has not yet realised its potential and there is scope for further value creation by modernising the sector. With better technologies, quality standards and hygiene in production, India can become the food factory of the world. (Food & beverage News Nov-16-30)


References: Food & Bevarage News November-2009,
Food Processing Market & Opportunities IBEF(Indian Brand Equity foundation), International Journal Of Business and Management ,vol 3,No.5,May2008–ISSN 1833-3850
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