Food Processing

The Food Processing sector in India has a quintessential role in linking Indian farmers to consumers in the domestic and international markets. The Ministry of Food Processing Industries (MoFPI) is making all efforts to encourage investments across the value chain. The food processing industry has a share of 12.38% (at 3-digit of NIC classification) in the employment generated in all Registered Factory sector engaging approximately 1.93 Mn people. Unregistered food processing sector supports employment to 5.1 Mn workers as per the NSSO 73rd Round report. Major sectors constituting the food processing industry in India are grains, sugar, edible oils, beverages, and dairy products.

During the last five years ending 2019-20, Food Processing Industries sector has been  growing at an average annual growth rate of around 11.18%.  As per the Annual Survey of Industries (ASI) 2018-19, food processing was ranked 1st in total persons engaged in the manufacturing sector.

Under PMKSY, 41 Mega Food Parks, 348 Cold Chain projects, 68 Agro-Processing Clusters, 281 proposals under Creation/Expansion of Food Processing & Preservation Capacities (CEFPPC),  61 Creation of Backward and Forward Linkages Projects & 06 Operation Green projects across the country have been approved. 

The key sub-segments of the Food Processing industry in India are Fruits & Vegetables, Poultry & Meat processing, Fisheries, Food retail, dairy industry, etc.

Key facts:

• Total Horticulture production in 2021-22 is estimated to be 333.3 MT
• India ranks 1st in milk production and contributes 23% to global milk production growing at a CAGR of about 6.2% to reach 209.96 MT in 2020-21 
• India ranks 3rd in global egg production and produced at least 122.11 bn nos. in 2020-21 with per capita availability of egg at 91 eggs per annum in 2020-21. 
• India is the 3rd largest fish-producing country in the world and accounts for 7.96% of the global production. The total fish production during FY 20-21 is estimated at 14.73 MMT.
• Sugar exports from India stood at 8.6 MT till May of the the ongoing 2021-22 marketing year ending September. 
• Online grocery retail in India has seen a CAGR of over 50% and projected to grow to $10 Bn to 12 Bn by 2025.
• The marine products exports from India touched $7,740 mn during 2021-22 despite the heavy odds faced by the sector. It observed 30% higher growth as compared to 2020-21. The USA, China, and Japan are the top 3 favorite destinations of Indian marine exports.  Exports to these three countries contributed 63% of exports.
• The export of other cereals increased from 102 MT in 2019-20 to 521 MT in 2020-21.
• India ranks 8th in meat production in the world. Meat production in the country has increased from 6.69 MT in 2014-15 to 8.80 MT in 2020-21 (Provisional). 
• As per advance estimates, the estimated production of rice is 127.93 MT, Wheat is 111.32 MT & Nutri/Coarse Cereals is 49.86 MT for the year 2021-22.
• The CAGR for pulses, oilseeds and cotton has been 7.9, 6.1 and 2.8%, respectively during the same period.
• Exports of Cereal preparations & miscellaneous processed items values at $238.04 mn in May 2022 and records positive growth vis-à-vis May 2021 of 43.94%.