S.No. | Topic | Notes Link |
---|---|---|
1. | Food processing and related industries in India | Read Now |
2. | Benefits of Food Processing | Read Now |
3. | Major areas | Read Now |
4. | Global Food Processing Industry | Read Now |
5. | Indian Food Processing Industry | Read Now |
6. | India has the following advantages in the food processing Sector | Read Now |
7. | Key growth drivers of food processing sector in india | Read Now |
8. | Scope and significance | Read Now |
9. | Location of food processing industry | Read Now |
10. | Supply Chain Management | Read Now |
11. | From “Farm to fork” | Read Now |
12. | Elements of the supply chain | Read Now |
13. | Upstream and Downstream Requirements | Read Now |
14. | The vision 2015 of the Government of India | Read Now |
15. | Food Processing in India – Constraints and Strategies | Read Now |
16. | FOOD STANDARDS - Bureau of Indian Standards (BIS) | Read Now |
17. | FOOD STANDARDS - AGMARK | Read Now |
18. | FOOD STANDARDS - CODEX | Read Now |
19. | National Mission on Food Processing (NMFP) | Read Now |
20. | Government Schemes/ Policies for development of Food Processing Industry Scheme / Policies related to Infrastructure |
Read Now |
21. | Scheme / policies related to Quality Control & Testing laboratories | Read Now |
22. | Schemes / Policies related to Research & Development | Read Now |
Food Processing
It is a technique of manufacturing and preserving food substances in an effective manner with a view to enhance their shelf life; improve quality as well as make them functionally more useful. It covers spectrum of products from sub-sectors comprising agriculture, horticulture, plantation, animal husbandry and fisheries.
According to Food and Agriculture Organization (FAO), processed foods can be classified into three types
1. primary
2. Secondary and
3. Tertiary.
The primary processing includes basic cleaning, grading and packaging as in case of Fruits and vegetables. Secondary processing includes alternation of the basic product to a stage just before the final preparation as in case of milling of paddy to rice. Tertiary processing leads to a high value – added ready – to eat food like bakery products, instant foods, health drinks, etc.
Modern food processing has three major aims:
Benefits of Food Processing
Major areas
The Sector comprises of the following major areas -
Segment | Products |
---|---|
Dairy | Pasteurized and packed milk, whole milk powder, skimmed milk powder, Condensed milk, Ice cream, Butter , Ghee and Cheese etc |
Fruits and vegetable | Beverages , Juices, concentrates, Pulps, Slices, Frozen and Dehydrated products, Potato Wafers/ Chips, etc. |
Grains and Cereals | Flour, Bakeries, Starch , Glucose, Cornflakes, Malted Foods, Vermicelli , Beer, Grain based alcohol |
Fisheries | Frozen and canned products mainly in fresh form |
Meat and Poultry | Frozen and packed – mainly fresh form |
Consumer Foods | Snack food, Namkeens , Biscuits Ready to eat food, alcoholic and non – alcoholic beverage |
Global Food Processing Industry
The Global Processed Food Industry is valued at US $ 3.2 trillion and account for over 3/4th of global food sales. Despite the large size of the industry , only 6% of the processed food is traded the world over as compared to bulk agricultural commodities where 16% of produce is traded . Growth of the sector has been the highest in developed economies, especially across Western Europe, North America, Japan and Australia. USA is the single largest consumer of processed food and accounts for 31% of global sales. The food processing sector has seen substantial Growth in developing economic with increase in GDP, per capita income and the resultant changes in lifestyle. Organized retailing and availability of better processing technologies too have contributed to the accelerated growth of the sector.
Indian Food Processing Industry
The Indian food processing industry stands at $135 billion and is estimated to grow with a CAGR of 10 per cent to reach $200 billion by 2015. The food processing industry employs around 13 million workers directly and about 35 Million indirectly.
India ranks No. One in the world in production of Milk (Fresh, whole, buffalo), Pulses, Ginger , Chick Peas, Bananas Guavas, Papaya and Mangoes. Further, India ranks No. 2 in the world in production of Rice, Wheat , potatoes , Garlic , Cashew Nuts, Groundnuts, Dry Onion, Green Peas, Pumpkins, Gourds, and cauliflowers. With the huge production base India can easily become the leading food supplier to the world and at the same time serving its vast growing domestic market with over a billion people.
Investments in the registered food processing units have been growing in the recent years. Food processing industry in India is increasingly seen as a potential source for driving rural economy as it brings synergy between industry and agriculture. A developed food processing industry is expected to lead increase in farm gate prices translating into increased rural incomes, reduce wastages, ensure value addition, promote crop diversification, generate employment opportunities as well as export earnings. With such a large and diversified production base coupled with low manpower cost and modern technology , the Indian food processing sector is poised for growth, if the advantages are leveraged optimally.
The growth is driven by the fact that the central government has given a priority status to all agro – processing businesses. Government incentives in the field of mega food parks, cold chain and exports benefits are also playing an important role in promoting food processing.
The major Challenges are investments at different points of the supply and value chain , proper research , farm and lab connectivity, upgradation of technology , increase in Farm holding , skill and manpower training , backend and front – end integration and cold chain integration.
India has the following advantages in the food processing Sector
Key growth drivers of food processing sector in india
Scope and significance
1. Vast source of raw material
2. Conventional farming to commercial farming
In recent years, there has been a shift form conventional farming of food grains to horticulture which include fruits, vegetables, ornamental crops, medicinal and aromatic plants, spices, plantation crops which include coconut, cashew nuts and cocoa and allied activities.3. Market in the form of large urban middle class
With a huge population of 1.21 billion and population growth of about 1.6% per annum, India is a large and growing market for food products. Its 350 million strong Urban middle class with its changing food habits poses a huge market for agricultural products and processed food.4. Low production cost
The relatively low – cost but skilled work force can be effectively utilised to set large, low – cost production bases for domestic and export markets.5. Change in consumption patterns
Increasing incomes are always accompanied by a change in the food habits. Over the last three decades in India a shift. In food habits have been observed . The report observes that the proportionate expenditure on cereals, pulses, edible oil, sugar, salt and spices declines as households climb the expenditure classes in urban India while the opposite happens in the case of milk and milk products , meat , egg and fish, fruits and beverages.6. Government Assistance
The Government has introduced several schemes to provide financial assistance for setting up and modernizing of food processing units, creation of infrastructure , support For research and development and human resource development in addition to other promotional measures to encourage the growth of the processed food sector.7. Foreign Direct Investment
Foreign direct investment (FDI) in the country’s food sector is poised to hit the US$ 3- billion mark in coming years. FDI approvals in food processing have doubled in last one year alone.8. Food parks
In an effort to boost the food sector, the Government is working on agri zones and the concept of mega food parks. Twenty such mega parks will come are proposed across the country in various cities to attract Foreign Direct Investment (FDI) in the food – processing sector.9. Conducive food processing policy environment
The national policy on food processing aims at increasing the level of food processing from the present 2 per cent to 10 per cent by 2025 . The government has allowed 100 per cent FDI in processing sector.Location of food processing industry
The following are some of the basic factors that must be considered in the establishment of a food processing business:
Supply Chain Management
Supply chain management is the term given to the system and inter – connections of organisations, people , activities, technologies, information and resources involved in production and distribution of a food product.
It encompasses many different disciplines and logistical steps from sourcing the right raw material and ingredients through to on – time delivery to the consumer. The supply chain can be quite complex when dealing with food products.
From “Farm to fork”
These terms refers to the supply chain within the food industry in an easy to visualize way. Take a minute to imagine all of the people and organisation that might have been involved in getting and Producers – wheat farmers if you had toast or weetabix, dairy farmers if you had milk of yogurt and even banana growers
Elements of the supply chain
The stages of the supply chain are now briefly outlined below in a simplified form. It can be far more complicated in reality with many inter- dependencies and steps-
1. Food Ingredients and raw materials
The supply chain in the food industry starts with ingredients or raw materials. Selection of the appropriate raw materials is needed to achieve the desired end product. Suppliers and contracted to supply materials that meet the requirements outlined on the raw material specification sheet. There may be a number of concurrent supplies of the some ingredient To ensure availability is always guaranteed , especially for high volume businesses, such as in fast food restaurants.2. Transport and storage
A product may be a key ingredient for another product and thus is transported to a manufacturing site elsewhere by road, rail, sea or air. This procedure can be repeated before it is finally sold as a finished product, which again requires transport to get it to the point of sale. Transportation of foods results in what it termed “food miles” and its economic and environment impacts are debated today.3. Food Production
Ingredients are combined or transformed in some way during the manufacturing stage to produce the final food product. Production can be thought in terms of the input of raw materials that undergo a process of transformation to production an output , the product.4. Safety in the supply chain
Safety is vitally important in food production. The result of a supply chain should be a product that should be safe to eat. Manufacturers are forced by law to make sure of this. Risk assessment and hazard analysis schemes are used in industry to assess potential problems before they arise.Upstream and Downstream Requirements
1. Upstream
The upstream stage of the production process involves searching for and extracting raw materials. The upstream part of the production process does not do anything with the material itself, such as processing the material . This part of the processing the material . Thus, any indusry that relies on the extraction of raw materials commonly has an upstream stage in its production process. In a more general sense, “ upstream” can also refer to any part of the production process relating to the extraction stages. Requirement for food processing industry2. Downstream
The downstream stage in the production process involves processing the materials collected during the upstream stage further includes the actual sale of that product to other businesses, governments or private individuals. The type of end user will vary depending on the finished product. Regardless of the industry involved, the downstream process has direct contact with customers through the finished product. Requirements for food processing industryThe vision 2015 of the Government of India for the food – processing sector aims at:
Food Processing in India – Constraints and Strategies
a. Demand side constraints
1. Price of Processed Products:
in the developed countries processed food and fresh food prices are usually with in a reasonable comparative range. At times processed foods are even cheaper than fresh food. In India, affordability is the key issue. Price differential between fresh and processed food in India is very high relative to the convenience , hygiene and health value of the processed food. Low income Indians are very price sensitive since food accounts for over 50% of the family budget2. Low customer awareness of the processed products:
Food habits are generally culturally driven , deeply ingrained in the psyche of people , therefore , quite difficult to change or influence in the short term. A visible change in food habits usually indicates much deeper changes at work in the society’s lifestyles, attitudes and aspirations.3. Export Markets:
The issues in exports are quality conforming to international standards, continuous product innovation, brand and market building on global scale, ability to deal in volumes and consistency in supply. These require global scale of operations and deep pockets which Indian companies presently lack . Morever, exports are inextricably linked to the local production system, and cannot be sustained without systematic and qualitative expansion for the domestic industry and market . Further, domestic support and export subsidies provided in developed countries (estimated at about $ 400 billions) And occasional resort to non-tariff barriers have also retarded Indian exports. The developing countries have to face the Sanitary and Phyto Sanitary (SPS) measures adopted by the developed countries. These measures are increasingly used by the developed countries in agro and food products to impede trade.b. Supply Side Constraints
1. Production Constraints:
A. Suitability of varieties:
linked with the issue of fostering relationship between processors and farmers is the possibilities of varietal relevance and productivity increases. Agriculture often suffers from varietal constraints. Oranges in Nagpur and Mangoes in Malihabad (UP) are instances where though there the gluts at harvest time processing has not taken off due to want of processable varieties. The solution lies in research and development of varieties suitable for processing by agricultural universities. Further, research is needed in development of technologies or processes where the existing varieties can be processes where the existing institutions like CFTRI and DFRL can play a major role.B. Awareness of Quality at farm level:
High quality product can be produced only at farm level. Once the product is harvested even the best food processing technologies can only maintain or preserve the quality of the product. Indian agriculture system suffers with high cost and low quality of farm produce because of tiny and fragmented holdings, low technology, inferior agri – inputs, inappropriate variety , uncertain market, risk aversion and inefficient farm management . Increasingly , the world market is demanding for high quality traceable product which need information linkages at farm level.C. Extension machinery:
The traditional extension machinery has not been able to deliver on varied demands and requirements of farmers. There has been a failure in connecting the lab with the land and product with the plate. Some states have fostered public – private relationships in this regard. Others have partnered with company led initiatives like e – choupal and the encouragement of contract farming , however the results are far from desired.c. Post harvest and Supply chain constraints:
Post harvest Handling:
Various estimates put post harvest handling losses around Rs. 1 lakh crores, with fruits and vegetables accounting for over Rs. 50000 crores of losses. The losses In post harvest handling are both qualitative and quantitative in nature. Though the post harvest losses are primarily due to lack of infrastructure , the associated knowledge with respect to protocols in post harvest handling are also missing apart from development of infrastructure, post harvest handling, cleaning , grading , packaging and storage protocols need to be developed and promoted in a big way by the government.b. Multiplicity in supply chain :
Indian food chain is very long and fragmented chain, in the process; there is mismatch between demand and supply , limited choice to the consumers, unacceptable wastage, poor hygiene, avoidable cost addition and opportunistic profiteering . The chain today leads up to aggregation at the mandi level and then segregation to the consumer. Certain time her number of intermediaries can be as high as 6 to 7.c. Distribution and marketing chain :
Marketing and distribution , except by big companies , is largely unorganised and fragmented. Sales through large organized formats constitute 72% of food consumption across the world but its share is about 1% in India. About 5 million outlets are engaged in the retailing of food. While such outlets have the advantage of proximity to consumers, these are associated with low product quality , lack of variety and low hygiene and cannot provide shopping experience. Fragmented retail structure also results in inefficient storage , transportation and distribution, wastages and value loss.Infrastructure Constraints:
Post harvest infrastructure :
Acute need is most felt for post harvest infrastructure for Perishable products. Deficiencies exist for grading and packing besides pre – cooling at farm site which could feed a cold chain . The cold storage capacity today caters to less than 10% of the produce, this too is of rudimentary nature with over 80% designed to handle only potatoes. A paucity of chilling infrastructure for milk and a lack of modern abattoirs for the meat processing sector is seen. Fish processing more specifically for exports requires a major step up in infrastructure availability.b. Logistics:
Inspite of the importance of logistics and its Size (INR 4 trillion), logistics has traditionally not been accorded the attention it deserves as a separate sector in itself. The level of inefficiency in logistics activities in the country has been very high across all modes. For example, the cost of surface transportation in India is estimated at 7 cents per km against 3 cents per km in canada , 5.5 cents in Europe. Poorly developed roads add to the woes of high turn around time, high taxation, and low skilled manpower in the logistics sector. Further, availability of reefer trucks to provide continuous cold chain has been a constraint because of high operation costs, low capacity utilisation . Poor logistics infrastructure is affecting the industry by both adding cost and reducing value because of wastages.c. Processing Infrastructure :
the small scale and unorganised sector which constitutes sector and where the bulk of employment lies, suffers from low efficiency due to the lack of access to credit, managerial knowledge , efficient tools and technology, marketing network etc. Technology , marketing network etc. Intense competitions from large scale players have also affected it Food Processing is characterized by a high degree of fragmentation and low capacity utilization. The single largest issue with the processing sector is the lack of scale in most units, which in turn is linked to absence of backward and forward linkages.FOOD STANDARDS - Bureau of Indian Standards (BIS)
The Bureau of Indian Standards (BIS) is the national Standards Body of India working under the aegis of Ministry of Consumer Affairs , Food & Public Distribution, and Government of India. It is established by the Bureau of Indian Standards Act, 1986 which came into effect on 23 December 1986.
One of the major functions of the Bureau is the formulation, recognition and promotion of the Indian Standards. Product certifications are to be obtained voluntarily . For, some of the products like Milk powder, Milk – Cereal based weaning foods, Processed cereal based complementary foods for infants, sweetened condensed milk, packaged, infant milk substitutes, Drinking Water , etc., Certification is mandatory because these products are Concerned with health and safety.
International Organization for standardization (ISO)
As published ISO 22000 : 2005 . Food Safety Management systems - Requirement for any Organization in the Food Chain, with a view to provide framework for internationally harmonized requirements for systematically managing safety in food supply chains. Consequent to publication of ISO 22000 , BIS has adopted this International Standard as IS/ISO 22000: 2005 . This standard integrates the principles of Hazard Analysis and Critical Control Point (HACCP) System developed by Codex Alimentarius Commission and combines the HACCP plan with Prerequisite Programmes (PRPs) and is fully compatible with Quality Management Systems (QMS) as per ISO 9001 : 2000. BIS has launched Food Safety Management Systems (FSMS) Certification IS/ISO 22000 : 2005 scheme which envisages grant of FSMS Certification license to organizations according to IS/ISO 22000.
FOOD STANDARDS - AGMARK
The word Agmark is derived from Agricultural Marketing. The Agmark standard was set up by the Directorate of Marketing & Inspection (DMI), ministry of Agriculture , Government of India by introducing an agricultural produce Act in 1937 . The word Agmark seal ensures about quality and purity of the food Products. The quality of the product is determined with reference to the size, variety, weight, colour, moisture, fat content and other factors are taken in to account. It covers quality assurances of unprocessed. Semi processed and processed agricultural commodities. It lays down the specifications for various adulteration prone commodities viz. Butter, ghee, vegetable oil, ground spices, Honey , Wheat etc.
FOOD STANDARDS - CODEX
Codex Alimentarius Commission is an international body constituted by Food and Agriculture Organisation (FAO) and World Health Organisation (WHO) of the United Nations with an objective to protect health of consumers and to ensure fair practices of consumers and to ensure fair practices in the food trade. Codex prescribes international Standards for safety and quality of food as well as codes of good manufacturing practices, guidelines to protect health Of the customers. These standards, guidelines and recommendations are recognized worldwide for international trade and negotiations and also for setting of disputes by WTO. There are Codex standards for fruits and vegetables, meat and poultry products, pulses and cereals.
National Mission on Food Processing (NMFP)
Ministry of Food Processing Industries (MFPI) has launched a new Centrally Sponsored Scheme (CSS) – National Mission on food Processing (NMFP) during 12th plan (2012 -13) for implementation through States /Uts. The basic Objective of NMFP is decentralization of implementation of Ministry’s schemes, which will lead to substantial participation of state Governments / Uts. The NMFP contemplates establishment of a National mission as well as corresponding Missions in the State and District level.
NMFP is likely improve significantly the Ministry’s outreach in terms of planning , supervision and monitoring of various schemes.
objectives.
Government Schemes/ Policies for development of Food Processing Industry
Scheme / Policies related to Infrastructure
1. Mega Food Parks Scheme (MFPS) – MoFPI
The primary objective of the MFPS is to provide excellent infrastructure facilities for food processing along the value chain form farm to market. It includes creation of infrastructure near the farm, transportation , logistics and central processing centre. The salient Features of the scheme are:2. Scheme for cold chain , Value Addition and Preservation Infrastructure – MoFPI:
Salient features of the scheme are:3. Capital Investment subsidy for construction / Expansion / Modernization of cold storages/ Storages of Horticulture Product – National Horticulture Board (NHB)
Salient features of the scheme are:4. Scheme For Development / Strengthening of agriculture Marketing infrastructure grading and standardization – ministry of agriculture :
salient features of the scheme are :5. Scheme for setting up of Agri clinic and Agribusiness centers - NABARD : Salient features of the scheme are:
6. Scheme for Infrastructure Development APEDA
This scheme extends support for creation of transport facility ,mechanization of harvest, operation setting up of sheds for storage / grading cleaning operation, precooling and handling systems and setting up of integrated post handling systems.Scheme / policies related to Quality Control & Testing laboratories
1. Implementation of HACCP / ISO 22000 , ISO 14000 / GHP / GMP Quality/ Safety Management System – Mo FPI:
Salient features of the scheme are :2. Scheme for Quality Development – APEDA :
Salient feature of the scheme are :3. Setting up / up gradation of Food Testing laboratories - Mo FPI :
Salient features of the scheme are :Schemes / Policies related to Research & Development
1. Research & Development (R&D) – MFPI :
Salient features of the scheme are :