Processing

India's food processing industry has undergone a rapid transformation, driven by its vast agricultural base, rising domestic demand, and supportive government policies. As of 2024, India is poised to become a global leader in food processing, with a growth trajectory that outpaces many developed economies. The sector is anchored in the country's strong agricultural foundation—India is the world’s largest producer of fruits, vegetables, millets, tea, food grains, milk, and livestock.

India's agricultural diversity fuels both domestic and export-driven demand in food processing. In FY 2023, the country produced 212 million metric tons of vegetables and 112 million metric tons of fruits, highlighting the immense capacity of its agricultural sector. Additionally, India is the largest producer and exporter of cereal products, with rice (Basmati and Non-Basmati) accounting for 95% of total cereal exports. Key export destinations for 2023-24 included Saudi Arabia, Iran, Iraq, Benin, the United Arab Emirates, and Vietnam.

Infrastructure Development by MoFPI
To strengthen the food processing ecosystem, the Ministry of Food Processing Industries (MoFPI) has implemented key initiatives:
Mega Food Parks: 41 Mega Food Parks with a combined processing capacity exceeding 4 million metric tonnes (MMT) have been approved, of which 24 are fully operational.
Agro-Processing Clusters: 76 Agro-Processing Clusters, with a total capacity of over 2 MMT, have been sanctioned to enhance value addition at the farm level.
Cold Chain Infrastructure: 400 Cold Chain Projects have been approved, adding over 35 MMT of storage and preservation capacity to reduce post-harvest losses.
Food Safety & Quality Assurance: 209 food safety and quality assurance facilities have been established to ensure compliance with domestic and international food standards.

A robust food processing sector is essential for diversifying and commercializing agriculture, extending shelf life, adding value to agricultural produce, creating employment, increasing farmers' incomes, and expanding export markets for agro-based products. With continued policy support and infrastructure development, India's food processing industry is set to play a pivotal role in global food supply chains.