India’s Food processing sector has experienced excellent growth over the years and is the 6th largest food processor in the globe. As per the report, the Majority of food processing units in developing countries fall underneath the Micro, Small & Medium Enterprises (MSMEs). India produces over 450 million tons of raw substances for food processing every 12 months that are delicate, stored and converted into safe to eat products; the food processing sector is vital to hold this level of manufacturing output.
A report through IBEF 2017, revealed that the food enterprise’s price becomes USD 39.71 billion and is anticipated to grow at a Compounded Annual Growth Rate (CAGR) of 11% to 65.4 billion USD by means of 2018. India is the second largest producer, after China, and the biggest client of food merchandise.
Currently, our country Consumes USD 370 billion of food items and is predicted to increase over the decade. The charge of agricultural export growth during the last decade is the very best in comparison to other nations. According to the records gathered by way of the APEDA, the export of processed food merchandise in India, rose to USD 197 million from USD a 190 million ultimate 12 months.
Irrespective of the constant help from the Government of India (GoI) for the growth of the sector, there are nonetheless some obstacles in the Food Processing Industry. Few of those demanding situations are discussed beneath:
Availability of raw materials:
Agricultural produce is a critical aspect of maintaining food processing activities. Due to the seasonal availability of certain vegetation, the sector faces delays in production resulting in low supply.
For oil manufacturing, most of the people of oilseed producers are small and marginal farmers with poor get admission to aid bases along with fertilizers, manure, etc. Hence, oilseeds grown by such farmers have a low yield.
Rabi crops like wheat, barley, and mustard are sown around mid-November and harvested in April or May. These food grains are dependent on forces of nature, that are instead unpredictable.
Seasonal deficiency and high cost of raw materials constitute one of the most important constraints affecting the growth of small-scale food processing businesses. This state of affairs outcomes in shortage and higher pricing of raw materials.
Storage Constraints:
Many of these scarcity issues can be solved via following proper storage norms for raw materials.
However, this is the main hazard faced by the Indian small-scale food processing enterprise. The absence and inadequacy of infrastructure facilities to store raw substances lower the nice and availability of the quit product.
There are methods for correct storage – warehousing and cold storage.
In warehouses, problems rise up because of the scarcity of space and how commodities are optimally stored in that region. Product damages are every other trouble confronted in the warehouse; few damages are inevitable but may be decreased with a rack safety material and resisting off overload of cabinets.
Cold garage for frozen foods is a huge sub-enterprise in and of itself. With ever-evolving food tendencies, there are growing varieties of equipped-to-devour food, drinks, processed frozen fruit and vegetable products, marine and meat merchandise and so on – lots of those items require specialized garage environments.
The loss of availability of those sorts of centers poses a major constraint for the food processing sector.
Transportation Issues:
Perishable food items should be shipped with proper packaging to keep away from breakages and damages all through transportation. Also, timely shipping is essential to keep away from spoilage – sure food gadgets do no longer ultimate long despite the fact that stored in climate-managed centers.
Technological equipment:
In the Indian food processing quarter, we stick to conventional production strategies in which the first-rate of agricultural and food merchandise is being inspected by means of human evaluators. This manual inspection is time-consuming, hard work intensive and at risk of human blunders. To lessen the impact of these issues, automatic inspection of those products ought to be implemented.
High competition:
This enterprise is notably aggressive with many players in the organized, in addition to, unorganized sectors. A few of the top Indian Food Processors consist of Nestle India Limited, Britannia Industries Limited, Amul India, Parle Agro Private Limited, Haldiram’s Food International Limited and ITC Limited. In order to live on in competitive surroundings, the food processing enterprise can truly develop through marketing channels, enhancing foods, high-quality requirements and improve the manpower to stand international challenges.
In spite of the issues faced, a food‐processing era in India has continued to make consistent development in the direction of modernization. The zone will preserve to witness will increase within the variety of food processing sections. Some key drivers include the access of worldwide businesses, availability of a reasonably-priced workforce, the growing demand for Indian products in international markets, and the need for processed foods