Food Processing Industry pdf Importance,Challenges,Present Scenario

Food Processing Industry pdf  – Importance,Challenges,Present Scenario – Food Processing India pdf UPSC Importance,Challenges,Present Scenario. Hello friends Welcome to . Here We are sharing one of most important Topic for UPSC Mains Exam.

In this Post We Will Discuss About Food Processing Industry in India. Following Details Will be Discussed 

  • What is Food Processing ?
  • What is the process Of Food Processing ?
  • What Are the product In Food Processing ?
  • What is food processing and its importance in India?
  • What are the challenges faced by the food processing industry in India in the Initial years?
  • What is the scenario of Food processing at present?
  • What are the recent initiatives of GOI to promote food processing sector?
  • Location of food processing industries in India 
  • Obstacles in the growth of food processing Industries

What is food Processing ?

  • Food processing is a Simple Concept As Name Suggest .
  • Food processing is the transformation of cooked ingredients, by physical or chemical means into food, or of food into other forms.
  • Food processing combines raw food ingredients to produce marketable food products that can be easily
    prepared and served by the consumer.
  • In the increasingly rising share of non agriculture activities of contemporary rural India, processing industries can play a vital role in achieving the objective of doubling the farmer’s income.
  • Diversification if diets, globalisation of diets, nuclear families juxtaposed with supply side factors like policy
    changing policy perspectives including digitisation and export opportunities propel growth of the economy and
    offers more employment and it will play a vital role in bringing people from poverty.

Products In food Processing Industry Can Be Dived In to two parts

  • Primary products  – Fruits and Vegetables
  • Secondary products or Value Added products  – Jams And Squashes

Primary processed food

  • which includes products such as fruits and vegetables, packed milk, unbranded edible oil,milled rice, flour, tea, coffee, pulses, spices, and salt, sold in packed or non-packed forms.

Value-added processed food

  • which includes products such as processed fruits and vegetables, juices, jams, pickles, squashes, processed dairy products (ghee, cheese, and butter), processed poultry, and processed marine products, chocolates, and alcoholic beverages.

Why Food Processing Play A Significant Role In Indian Economy ?

Overall the sector has a significant impact on the economy. This is due to the scale of outputs generation, employment creation and impact on rural economy which relies heavily on agriculture and associated manufacturing and services for income.

Scale of outputs: The food processing industry is significantly larger than many other labor
intensive sectors like textile, apparel and leather.

Employment generation potential: The industry has large employment generation potential . More than 2 Millions Workers Work in  Food Processing Industry in India .

Impact on local economy: Since a large share of this industry is based in rural, semi-urban regions, there is a significant multiplier effect on the local economies as these regions provide both raw material and labour for the industry. This boosts the local economy through generation of income and its cascading effect on the economy.

Role in wastage reduction: Food wastage is a significant issue, especially in perishable segments like fruits and vegetables. Losses in perishables can result from mechanical damage, microbiological agents, or Aging of products.

Role in enhancing farm productivity: Many farmers in India face the problems of traditional technology and practices, limited bargaining power with input suppliers, inadequate infrastructure, a paucity of market information, and limited access to capital. The food processing sector has the potential to play a critical role in enhancing productivity in categories such as milk and fruits and vegetables by providing farm extension services to their suppliers or through contract farming.

What are the challenges faced by the food processing industry in India in the Initial years?

  • The lack of innovation and research in this field hampered the progress of this sector as the age old technology
    doesn’t give proper economic benefits.
  • The processed foods was thought as the food of rich and this thought prevent the market share of the
    processed foods.
  • The tax rates are also high and other multiple slabs made this sector as non viable investment for the
  • Concept of cold chain was in the initial stages and not well penetrated in India until the late nineties and it
    hampered the growth of Diary processing in the food processing.
  • Standards and protocols were absent for the food safety and laws for food safety were absent until 2005.

What is the scenario of Food processing at present?

  1. The consistent rise in the per capita incomes and shifting of incomes after 1981 to a higher growth path led to
    the rise in middle classes, who have the purchasing power to buy the processed foods.
  2. The GOI witnessing these changes, in order to promote this sector it formed the separate ministry to harness the complete potential of this sector.
  3. After the full scale liberalisation in 1991 this sector got the new impetus as several policy initiatives for freeing
    the licensing system, foreign investment., etc were taken during this time to promote this sector.
  4. The entire sector was deregulated and no license is required except in case of items reserved for small scale sector and alcoholic beverages.
  5. Automatic approval for foreign investment up to 100 percent equity in food processing industries is
    available except in few cases.

What are the recent initiatives of GOI to promote food processing sector?

  1. Model Law on Contract Farming to be prepared and it will integrate backward integration of the food processors with the farmers and attracting investment in post harvest management activities leading to
    increased benefit to the farmers and reduction in wastages.
  2. A Dairy Processing and Development Fund of Rs. 8000 core to be set up in NABARD, will be used to modernize old and obsolete milk processing units particularly in cooperative sector and will result in enhancing milk processing capacity thereby adding more value to the produce of the
    farmers and increasing their income.
  3. National Policy on Food Processing will provide a road map for holistic development for the food processing
    sector, the potential and opportunities for the growth of supply chain and promote food processing in the
    country to create employment opportunities and ensure wellness of the farmers.
  4. The SAMPADA Scheme will target creation of Infrastructure and increasing capacities of processing
    and preservation in entire supply chain of food processing sector right from farm gate to retail outlets.
  5. Setting up of investment tracking and facilitation Desk of Invest India in the Ministry will identify new potential investors and approach them in a focused and structured manner for investment and follow-up the investment cases by providing hand holding services.

SWOT Analysis of Agro-Processing Industry Infrastructure in India

  • Round the year availability of raw materials.
  • Social acceptability of agro-processing as important area and support from the central government.
  • Vast network of manufacturing facilities all over the country.
  • Vast domestic market.
  • High requirement of working capital
  • Low availability of adequate infrastructural facilities
  • Lack of adequate quality control and testing methods as per international standards
  • Inefficient supply chain due to a large number of intermediaries
  • Higher requirement of working capital.
  • Inadequately developed linkages between Research organizations and industry.
  • Seasonality of raw material
  • Large crop and material base offering a vast potential for agro processing activities
  • Setting of Agri-export zone (AEZ) and food parks for providing added incentive to develop green field projects
  • Rising income levels and changing consumption patterns
  • Favourable demographic profile and changing lifestyles
  • Integration of development in contemporary technologies such as electronics, material science, bio-technology etc. offer vast scope for rapid improvement and progress
  • Opening of global markets


  • Affordability and cultural preferences of fresh food
  • High inventory carrying cost
  • High taxation
  • High packaging cost


Revolutions related to Food Production and Food Processing

  1. Pink Revolution – Meat and Poultry Production.
  2. Red Revolution – Meat & Tomato Production.
  3. Round Revolution – Potato Revolution.
  4. Silver Fiber Revolution – Cotton Revolution.
  5. Silver Revolution – Egg/Poultry Production.
  6. White Revolution – Milk/Dairy production (Operation Flood).
  7. Yellow Revolution – Oil Seeds production.
  8. Evergreen Revolution – Overall development of Agriculture.
  9. Blue Revolution – Fish Production.
  10. Brown Revolution – Leather /Cocoa production.
  11. Golden Fibre Revolution – Jute Production.
  12. Golden Revolution – Overall Horticulture development/Honey Production.
  13. Green Revolution – Agriculture in general.

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