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Gurmatpal Singh
Gurpreet Singh
Food Processing Sector in India
Food is the largest consumption category in India...
C A G R : 5 .3 2 %
Food Con s um p tion in In dia
250 S o urc e : B M I, Q1 2009 & C S O
2 2 9 .7
2 10 .3
19 8
200 19 1.4
18 4 .4
18 0 .1
16 8 .6
157.7
151.7
150
100
50
0
2005 2006 2007 2008e 2009f 2010f 2011f 2012f 2013f
Significant Opportunity
Developing Countries –
Rich Countries – High losses at a
Relatively high losses in the
later stage in the food chain
initial parts of the value chain
Level of Processing across Segments
Marine 26%
Poultry 6%
60-70% in developed countries
Buffalo Meat 20%
3 0% 29 % Middle East
25 %
• Globally, most of the countries import from countries that are geographically
closer. For example, 45% of USA imports are from Canada and Mexico and EU
imports 50% from Spain, Netherlands, France, Italy, Belgium and Ger many
Industry Growth Drivers - Demand
Urbanisation, rise in disposable incomes and changing lifestyle and aspirations are
leading to significant demand for processed food…
The industry is in dire need of highly skilled/trained manpower across different levels to
handle various operations
Variability Variable quality of raw materials due to cyclic variations and changing weather conditions
• This situation discourages processing units to reach optimum size and achieve
economies of scale.
• Additionally, lack of consistent quality hinders small scale units to build brand
equity for themselves in international and domestic markets.
Challenges in the Sector
Challenge 5: Low Adherence to
Quality Standards
Increasing need for food processors to adhere to quality standards for both domestic as well as export
market
Increasing Globalisation Stringent Safety Norms Rising Customer awareness on Quality and Health
A developed Food Processing sector will help overcome the biggest challenges in
front of India:
• Technology Up gradation
• Harmonisation of Taxes