Major segments in India’s Food Processing Sector

By Priya Chetty on March 15, 2012

Whilst Indian food processing industry is outsized when it comes to size, it is yet at an emerging phase as regards development. This is evident through the fact out of India’s total agriculture and food yield, just 2 per cent is processed. The maximum share of processed food is in the Dairy sector, where 37 per cent of the entire yield is processed, of which only 15 percent is processed by the organised sector.

  • Dairy Sector: India is largest milk producer in the world. The dairy sector stands first as regards processed foods with 37 per cent of the yield being processed. The organised sector processes a projected 15 per cent of the whole milk production in India.
  • Fruits and Vegetables: India yields the widest variety of fruits and vegetables across the world, and is the second major vegetable and third major fruit producer accounting for 8.4 per cent of the world’s entire food and vegetable yield. The part of organised sector in fruit processing is projected to be almost 48 percent. Grain Processing: India yielded almost 209.32 million tons of grains in 2005-06, and the country’s yield covers up every key grain such as rice, wheat, maize, barley and millets like jowar, bajra and ragi. India ranks third when it comes to the yielding of grains across the world. By way of a share of 40 per cent, grain processing is the principal constituent of food sector. Prime processing comprises 96 per cent with the left over accounted for by the secondary and tertiary sectors.
  • Meat and Poultry Processing: India has the biggest quantity of farm animal inhabitants in the world accounting for 50 per cent of buffaloes and 16 per cent of the goat inhabitants. Most of the animals in India are not bred for meat. Animals are normally utilized for yielding of meat are cattle, buffaloes, sheep, pigs and poultry. Just 11 percent of the buffalo inhabitants, 6 percent of the livestock, 33 per cent of the sheep and 38 percent of the goat inhabitants is picked for meat. Fisheries: India is the third biggest fish producer across the world and next in domestic fish production. The fisheries sector in the country has been categorized into marine, inland and aquaculture. The fisheries sector adds 1.1 per cent to the country’s GDP. This sector as well offers employment to 11 million people occupied wholly, partly or in auxiliary activities relating to the sector.
  • Packaged Foods: Packaged foods division in India recorded a growth of 8 percent in 2005-06. Noodles/Vermicelli is the best ever rising group in this section with a growth rate of 15 percent. The marketplace for branded noodles is projected at 230 million servings yearly. Beverages: The beverages market largely comprises non-alcoholic beverages which may well be largely categorized into carbonated drinks, non-carbonated drinks and hot beverages. This section is estimated at US$ 155 million out of which fruit juices and fruit-based drinks report for US$ 60 million. The size organised carbonated drinks market is projected at US$ 119 million. In recent years, the carbonated drinks market recorded a vigorous growth rate of 20 percent, compelled by the optimistic changes in India’s consumer contour. Staples: Bread is gradually emerging to be a staple product consumed by populace of every economic group in the country. The entire bread making in India in 2004-05 was projected at 2.7 million tons, rising at 7.5 per cent, where approximately 55 per cent of bread making belongs to the organised sector.