Food Processing Industry in India : Problems and Prospects

The majority of people dwelling in rural areas of India draw their sustenance from agriculture and allied sectors. But the growth and balanced development of other sectors, such as industry and services is also necessary to sustain the growth of Indian economy in an inclusive manner.

Traditionally, Food processing has been an important part of the rural and semi-urban economy with pickles, jams, chutneys, papads being made by women at the household level. A progressive and vibrant food processing industry fetches more remunerative price for farmers and reduces wastes. Food processing encompasses products of fruits and  vegetables, dairy, meat, poultry, fishery, grains, alcoholic drinks, aerated water and soft drink. It involves all types of value addition to agricultural or horticultural produces and includes processes such as grading, sorting and packaging which enhance self life of food products. The food processing sector comprises of two segments, viz. primary processed food and vegetables, milk, flour, rice, spices etc. value added segment includes processed fruits and vegetables, juice, jam, jelly etc.
Food processing industry in India is seen as a potential source for driving rural economy, as it brings synergy between industry and agriculture. A developed food producing industry would lead to increase in farm gate prices, translating into increased rural incomes. The paper intends to explain the purpose and problems of food processing industry in India and tries to find out solutions and policy options.