8/25/23, 11:25 PM Food Processing | Make In India

Food Processing
Summary

 India is the 3rd largest fish producing country with about 8% share in global fish production. *
India stands 2nd in aquaculture production and one of the top cultured shrimps producing nation in the world.*

 India offers the largest diversified production base and has a growing food industry. India is:
World’s largest milk-producing nation *

World’s largest producer, consumer and exporter of spices *

World’s largest producer and consumer of sugar*

2nd largest exporter of sugar.*

World’s second-largest producer of food grains, fruits and vegetables *

World's 3rd largest producer of fish *

India is the 2nd largest producers of Wheat *

World's 2nd largest Aquaculture Producer *

2nd largest exporter of ‘Shree Anna’ i.e. millets in the world. *

World's 4th largest exporter of fish *

4th Largest Sea Food Exporter *

5th largest exporter of millets globally *

5th largest exporter of coffee globally *

8th in meat production in the world *

 Indian Food Processing market to be valued at USD 535 Bn by 2025 growing at a CAGR of 15.2%. *

 Food Processing sector engages maximum number of people with 20.05 lakhs consisting 12.32 % of the total employment share. *

Reasons to Invest

 Government of India aims the market size of the Dairy Industry to be USD 32.9 bn with a growth of 7.9% by 2025. *

 The government has proposed to develop 100 food streets in 100 districts across India with financial assistance of INR 1 cr per food
street/district.*

 Demand of organic products in the Indian market is increasing, with an expected CAGR of 25.25% during 2022-2027. *

 GOI has set a target to achieve one lakh crore export from the fishing sector by 2024-25 and also make it environment friendly. *

 The dairy market has been growing at about 15 % per annum during last 15 years and is expected to reach a market size of about INR
30.84 lakh crore by 2027.*

 UP Government is providing upto 50% subsidy on setting up solar-powered Food Processing Units under UP Food Processing Policy
2022-23. *

 The CDP will benefit around 10 lakh farmers and related stakeholders along the value chain. The CDP aims to improve exports of
targeted crops by about 20% and create cluster-specific brands to enhance the competitiveness of cluster crops. *

Key Achievements

 31% of export agricultural and processed food products target for 2022-23 achieved.

 41% rise in Basmati rice exports worth USD 3.82 bn during April 2022 - January 2023. *

 ICAR has developed a new heat-resistant wheat variety called HD-3385 which can be sowed early and harvested before March end. *

 499 permanent Soil Testing Laboratories, 113 Mobile Soil Testing Laboratories, 8,811 Mini Soil Testing Laboratories and 2,395 Village-
level Soil Testing Laboratories have been established. *

 Environment friendly fuel like ethanol has been on the top priority list of Hon’ble PM which has resulted in more than doubling of ethanol
blending in just 2 years and target of 20% ethanol blending has also been preponed from 2030 to 2025.*
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 Exports of Fruits & Vegetables exhibited a growth of 9.96% in April 2023 as compared to the same period last year.*

 Exports of Coffee exhibited a growth of 4.17% in April 2023 as compared to the same period last year.*

 Exports of Spices exhibited a growth of 14.44% in April 2023 as compared to the same period last year.*

 Storage capacity increased from 5.05 Lakh Metric Tonne in 2014 to 8.21 Lakh Metric Tonne in 2023 in NE States. *

 Area coverage under pulses, increased in the year 2023, compared to previous year, with 19.61 hectares area sown.*

 Inland fish production increased from 28.23 lakh tonnes per year in 2000-01 to 121.21 lakh tonnes per year in 2021-22. *

Recent Announcements

13th June 2023: The Government approves projects to the tune of more than INR 7,500 cr. for the development of modern fishing
harbours and fish landing centres

Read More

12th June 2023: Indian Council of Agricultural Research signs a MOU with Amazon Kisan to Empower Farmers

Read More

07th June 2023: Indian Agricultural Research Institute shines as acme of excellence in Agriculture Sciences under NIRF 2023

Read More

04th May 2023: Nationwide AHDF KCC Campaign 2023-24 launched for providing Kisan Credit Card facility to all eligible Animal
Husbandry, Dairy and Fishery Farmers

Read More

25th April 2023: Wheat procurement 12% higher till April 2023.

Read More

Statistics

 A total of 112 food processing projects were completed/operationalized in 2022 covering - Mega Food Park:1, ColdChain:15, Units:71,
Agro-Processing Clusters(APC):4, Food Testing Laboratories:20, Backward & Forward Linkage projects:1. *

 As per the 20th Livestock Census, Total Livestock count: 536.76 mn. *

 Agriculture and allied sectors have a 18.3% share of India's economy at current prices (2022-23). *

Production:

 Total Foodgrain production in the country for 2022-23 is estimated at record 3305.34 lakh tones which is higher by 149.18 LMT as
compared to previous year (as per 3rd Advance Estimates)*

 Total production of pulses for 2022-23 is estimated at 275.04LMT which is higher by 2.02 lakh tonnes than previous year’s production (as
per 3rd Advance Estimates).*

 Total production of Rice during 2022-23 is estimated at (record) 1308.37 lakh tonnes. It is higher by 13.65 lakh tonnes as compared to
previous year. *

 Non-Basmati Rice has emerged as India’s top export item among the many agricultural and processed food product exports under
APEDA basket. With the export of USD 4663 mn in nine months of 2022-23, it is recorded a significant contribution in FY 2022-23. *

 Production of Maize in the country during 2022-23 is estimated at (record) 346.13 lakh tonnes which is higher by 8.83 lakh tonnes than
the previous year production of 337.30 lakh tonnes. *

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 Production of Nutri/ Coarse Cereals estimated at a record 527.26 lakh tonnes which is higher by 16.25 lakh tonnes than the previous
year’s production. *

 Total Pulses production during 2022-23 is estimated at a record 278.10 Lakh Tonnes which is nigher by 5.08 lakh tonnes than previous
year’s production of 273.02 LMT and 31.54 LMT higher than the average pulses production of last five years. The production of Moong is
estimated at a new record of 35.45 LMT which higher by 3.80 LMT as compared to previous year’s production. *

 The production of Wheat (record) in the country is estimated at 1121.82 LMT which is higher by 44.40 LMT as compared to previous
year’s production. *

Exports:

 Export target for agricultural and processed food products for FY 2022-23 fixed at USD 23.6 bn of which 84% i.e. USD 19.694 bn has
been achieved by December 2022. *

 Exports of processed F&V increased to USD 1472 mn in nine months of FY 2022-23 from USD 1192 mn in the corresponding months of
the previous year. *

 Export of fresh fruits increased to USD 1121 mn in nine months of FY 2022-23 compared to USD 1078 mn in April-December 2021 of the
last fiscal year. *

 Export of Pulses has witnessed an increase of 80.38 % in nine months of FY 2022-23 as the export of lentils increased from USD 242 mn
(April-December 2021-22) to USD 436 mn (April-December 2022-23). *

 Basmati Rice exports registered 40.26 % growth in nine months of FY 2022-23 as its export increased from USD 2379 mn (April-
December 2021) to USD 3337 mn (April-December 2022). *

 Export of poultry products increased by 91.70% in nine months of FY 2022-23 as its export increased from USD 50 mn to USD 95 mn. *

 Export of dairy products recorded a growth of 19.45 % as its export rose to USD 471 mn in FY 2022-23 till now (April-December 2022)
from USD 395 mn in April-December 2021 of the last fiscal year. *

 Exports of Cereal preparations & miscellaneous processed items recorded a 24.35 % growth in April - December 2022 compared to the
same period in last fiscal year. *

Growth Drivers

 12 brands have been launched to promote various One District, One Product under the Branding & Marketing component of PM
Formalisation of Micro Food Processing Enterprises scheme. *

 Total 46 new projects approved under Operation Greens Scheme in the Calendar Year 2022.*

 At-home consumption of millets per month per person has increased to 14 kgs. from 3 kgs. with a boost in sale of almost 30%. *

 Sugar saw a 15% increase in unit value in 2022 leading to overall rise in exports and positive trend is expected to continue in 2023 as
well. *

 The combined stock position of wheat and rice in the Central Pool during RMS 2023-24, has reached 580 LMT which ensures Food
Security to entire nation.*

 Andrew Yule & Co. Ltd. (AYCL) which is the sole public-sector enterprise of the Government of India in the tea industry, achieved its
highest-ever growth trajectory in 2022, with tea exports up by 431% over the previous year's exports.*

 Since most rice varieties are high in GI and most of the Indians consume rice, the popularization of low GI rice varieties will reduce or
even reverse India's increasing trend of diabetes. *

 Shri Narendra Singh Tomar launched the Platform of Platforms (POP) under the National Agriculture Market (e-NAM). This will increase
farmers' digital access to multiple markets, buyers and service providers and bring transparency in business transactions with the aim of
improving price search mechanism and quality commensurate price realisation. * 

 Animal Husbandry Infrastructure Development Fund (AHIDF) projects is launched to support the farmers. *

 India aims to double the marine product exports to INR One lakh crore from the present above INR 50,000 crore within the next five
years. *

 10,000 new FPOs worth INR 6,865 cr have been set up to increase the income of farmers while INR 11,000 cr has been earmarked to
reduce the dependence on the import of edible oils. *

FDI Policy

 100% FDI is permitted under the automatic route in the Food and Processing industry in India. *

 100% FDI is allowed through the government approval route for trading, including through e-commerce in respect of food products
manufactured or produced in India. *

 The cumulative FDI equity inflow in the Food Processing industry is USD 11.97 bn during the period April 2000 to March 2023. *

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 The cumulative FDI equity inflow in the Agricultural Services is USD 3.02 bn during the period April 2000 to March 2023. *

 The cumulative FDI equity inflow in Vegetable Oil & Vanaspati is USD 1.04 bn during the period April 2000 to March 2023. *

 The cumulative FDI equity inflow in Sugar is USD 245.43 mn during the period April 2000 to March 2023. *

 The cumulative FDI equity inflow in Agricultural Machinery is USD 1.7 bn during the period April 2000 to March 2023. *

 The cumulative FDI equity inflow in the Rubber Goods is USD 3.5 bn during the period April 2000 to March 2023. *

Read more about Foreign Direct Investment Policy in India >

Production Linked Incentive (PLI) Scheme

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval to introduce the Production-Linked
Incentive (PLI) Scheme in Food Products for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar
Bharat.

Financial Outlay- INR 10,900 crore

Products: Ready to Eat / Ready to Cook (RTE/ RTC), Marine Products, Fruits & Vegetables, Honey, Desi Ghee, Mozzarella
Cheese, Organic eggs and poultry meat. The component for Millet based products has been added in the year 2022-23 with an
outlay of INR 800 cr. *

For more details on PLI Schemes, Click Here

Sector Policy

Financial Support

Union Budget 2023-24*

 The total budget of the Ministry of Agriculture and Farmers Welfare, including Agricultural Education and Research, is about INR 1.25
lakh crore this time.

 Out of this, provision of INR 60,000 crore has been made for the Modi Government's ambitious scheme, - the Pradhan Mantri Kisan
Samman Nidhi (PM-Kisan).

 Focusing on Animal Husbandry, Dairy and Fisheries, the agricultural loan target has been increased to INR 20 lakh crore.

 Provision of INR 450 crore has been made for the Digital Agriculture Mission started by the Modi Government, and about INR 600 crore
allocated for the promotion of Agriculture sector through technology.

Investment Opportunities

INVESTIBLE PROJECTS:
 Fruits and vegetables: preserved, candied, glazed and crystallized fruits and vegetables, juices, jams, jellies, purees, soups, powders,
dehydrated vegetables, flakes, shreds and ready-to-eat curries.

 Food preservation by fermentation: wine, beer, vinegar, yeast preparation, alcoholic beverages. Beverages: fruit-based, cereal-based.

 Dairy: liquid milk, curd, flavored yogurt, processed cheese, cottage cheese, Swiss cheese, blue cheese, ice cream, milk-based sweets.

 Food additives and nutraceuticals.

 Confectionery and bakery: cookies and crackers, biscuits, bread, cakes and frozen dough.

 Meat and poultry: eggs, egg powder, cut meats, sausages and other value-added products. Fish, seafood and fish processing –
processing and freezing units.

 Grain processing – oil milling sector, rice, pulse milling and flour milling sectors.

 Food preservation and packaging: metal cans, aseptic packs.

 Food processing equipment: canning, dairy and food processing, specialty processing, packaging, frozen food/refrigeration and thermo-
processing.

 Consumer food: packaged food, aerated soft drinks and packaged drinking water. Spice pastes.

 Supply chain infrastructure – this niche has investment potential in food processing infrastructure, the government’s focus is on supply
chain related infrastructures like cold storage, abattoirs and food parks.

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 The establishment of food parks – a unique opportunity for entrepreneurs, including foreign investors to enter in the Food Processing
industry in India.

 One District One Focus Product (ODOFP) programme cover products of agriculture and allied sectors for 728 districts of the country.

Explore projects to invest in Food Processing sector >

Sector Reports

1. State Ranking Index for NFSA: Creating resilient food systems to optimize the delivery of benefits

2. Production of Ethanol: To realise Aatmanirbhar Bharat

3. Year End Review 2022: Ministry of Food Processing Industries

4. Year End Review 2022: Ministry of Fisheries, Animal Husbandry and Dairying

5. Annual Report 2021-22, Department of Agriculture & Framers Welfare

6. Annual Report 2021-22, Ministry of Food Processing Industries

7. Study to Determine Post Harvest Losses of Agri Produces

8. Annual Report 2022-23 | Indian Council of Agricultural Research

9. Ministry of Food Processing Industries: Schemes Factsheet

Foreign Investors

 Kraft (USA)

 Mars (USA)

 Nestle (Switzerland)

 McCain (Canada)

 Danone (France)

 Ferrero (Italy)

 Del Monte (USA)

 Kagome (Japan)

 Kelloggs (USA)

 Pepsi (USA)

 Unilever (United Kingdom)

 Perfetti (Italy)

 Cargill (USA)

 Coca Cola (USA)

 Hershey (USA)

 Metro Cash & Carry (Germany)

 Walmart (US)

 Yakult (Japan)

 Amazon (USA)

Agencies

 Ministry of Agriculture & Farmer's Welfare

 Ministry of Food Processing Industries

Sources

1. Nivesh Bandhu, Investor Portal, http://foodprocessingindia.gov.in/

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2. Annual Report 2018-19, Department of Agriculture, Cooperation & Farmers Welfare, Ministry Of Agriculture & Farmers Welfare,
http://agricoop.nic.in/sites/default/files/AR_2018-19_Final_for_Print.pdf

3. Annual Report 2018-19, Ministry of Food Processing Industries, https://mofpi.nic.in/sites/default/files/eng_mofpi_annual_report_2018-

19.pdf

4. Nivesh Bandhu, Investor Portal, http://foodprocessingindia.gov.in/

5. Annual Report 2018-19, Department of Agriculture, Cooperation & Farmers Welfare, Ministry Of Agriculture & Farmers
Welfare, http://agricoop.nic.in/sites/default/files/AR_2018-19_Final_for_Print.pdf

6. Nivesh Bandhu, Investor Portal, http://foodprocessingindia.gov.in/

7. World Food India – 2019, Consulate General of India, https://cgivancouver.gov.in/pdf/WFI.pdf

8. Nivesh Bandhu, Investor Portal, http://foodprocessingindia.gov.in/

9. Annual Report 2018-19, Ministry of Food Processing Industries, https://mofpi.nic.in/sites/default/files/eng_mofpi_annual_report_2018-

19.pdf

10. “Annual Survey of Industries Vol I 2017-18”, National Sample Survey Office – Industrial Statistics Wing, Ministry of Statistics and
Programme Implementation, http://www.csoisw.gov.in/cms/cms/Files/70.pdf

11. Annual Report 2018-19, Ministry of Food Processing Industries, https://mofpi.nic.in/sites/default/files/eng_mofpi_annual_report_2018-

19.pdf

12. Consolidated FDI Policy, https://invest-india-revamp-static-files.s3.ap-south-1.amazonaws.com/2020-

04/FDI%20Policy%202019%20revised_19%20April%202020.pdf

13. National Manufacturing Policy, DPIIT, https://dipp.gov.in/sites/default/files/po-ann4.pdf

14. Press Release, Ministry of Food Processing Industries, https://mofpi.nic.in/sites/default/files/pressnote_eng.pdf_0.pdf

15. Loans For Food Parks And Food Processing Units In Designated Food Parks, NABARD, https://www.nabard.org/content.aspx?id=570

16. Draft National Food Processing Policy, Ministry of Food Processing Industries,  https://mofpi.nic.in/sites/default/files/sejda-52v.pdf

17. About PMKSY Scheme, Ministry of Food Processing Industries, https://mofpi.nic.in/Schemes/about-pmksy-scheme

18. Cabinet approves Central Sector Scheme  of financing   facility under   'Agriculture Infrastructure Fund',
PIB,  https://pib.gov.in/PressReleasePage.aspx?PRID=1637221

19. Expenditure Budget - Ministry of Food Processing Industries, India Budget, https://www.indiabudget.gov.in/doc/eb/sbe41.pdf

20. Expenditure Budget - Central Sector Schemes, India Budget, https://www.indiabudget.gov.in/doc/eb/stat4b.pdf

21. Cabinet approves establishment of Animal Husbandry Infrastructure Development Fund, PIB,  https://pib.gov.in/PressReleasePage.aspx?
PRID=1633918

22. State/UT-wise details of Mega Food Park projects as of 27.02.2020, Ministry of Food Processing Industries,
https://mofpi.nic.in/sites/default/files/37_mfps_stateut-wise_details_as_of_27.02.2020_3.pdf

23. Consolidated list of State-wise 291 Approved Cold Chain Projects as on 30.04.2020, Ministry of Food Processing Industries,
https://mofpi.nic.in/sites/default/files/website_30.04.2020_0.pdf

24. Nivesh Bandhu, Investor Portal, http://foodprocessingindia.gov.in/

25. Signing of MOU between the Government of India and the United Nations' World Food Programme for cooperation during 2019 –
2023, Department Of Agriculture, Cooperation & Farmers Welfare, Ministry of Agriculture & Farmers' Welfare,
http://agricoop.nic.in/recentinitiatives/signing-mou-between-government-india-and-united-nations-world-food-programme

Factsheet on FDI - April 2000 to March 2022, Department for Promotion of Industry and Internal Trade,
26. https://dpiit.gov.in/sites/default/files/FDI_Factsheet_March_2022_23May2022.pdf

27. Ministry Notice, http://agricoop.nic.in/sites/default/files/219745_0.pdf

28. Ministry Notice, http://egazette.nic.in/WriteReadData/2020/222595.pdf

29. MINISTRY OF FOOD PROCESSING, https://mofpi.nic.in/sites/default/files/op1462018ddog.pdf

30. MINISTRY OF FOOD PROCESSING, https://mofpi.nic.in/sites/default/files/monthly_summary_0.pdf

31. Annual Report, MINISTRY OF FOOD

PROCESSING,  http://agricoop.nic.in/sites/default/files/ACFW%20English%20%20Annual%20Report%202019-20.pdf

32. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1671912

33. MINISTRY OF FOOD PROCESSING, https://mofpi.nic.in/sites/default/files/monthly_summary_october.pdf

34. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1680343

35. MINISTRY OF FOOD PROCESSING, https://mofpi.nic.in/sites/default/files/20201222164534.pdf

36. MINISTRY OF FOOD PROCESSING, https://mofpi.nic.in/sites/default/files/all_cabinet_ministers.pdf

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37. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1683647

38. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1683793

39. PIB Release, https://pib.gov.in/PressReleseDetailm.aspx?PRID=1646632

40. Year-End Review 2020 of Ministry of Agriculture & Farmer Welfare, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1685570

41. PIB Release, https://pib.gov.in/PressReleasePage.aspx?PRID=1685570

42. http://egazette.nic.in/WriteReadData/2021/224630.pdf

43. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1692625

44. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1703196

45. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1705222

46. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1705511

47. PIB Release, https://www.pib.gov.in/PressReleasePage.aspx?PRID=1710134

48. MINISTRY OF FOOD PROCESSING,https://mofpi.nic.in/sites/default/files/20210409170744.pdf

49. https://commerce.gov.in/wp-content/uploads/2021/06/Reforms-to-promote-Agri-Export.pdf

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