India has diversified range of food culture, spices and non- agri commodities. The food processing industry accounts for 13% of India’s Exports. India ranks first among the world’s largest milk producing nations since 1998. It is also world’s third largest producer of cashew nuts and second largest producer of fruit grains, fruits and vegetables. It engages 11.6% of workforce in the employment sector. India is globally ranked 1st in production of several Agri-Commodities and 2nd in total food production after China.
India is also globally acknowledged as the leading producer of agriculturally allied products. It is the world's biggest milk producer with milk production in 2017-18 being registered at 176.4 million tonnes. Additionally, with a total fish production of 10.07 million metric tonnes, India makes for around 6.3% of the global fish production. Hence, India’s vast coastline of 8129 km, makes it third and second largest in fisheries and aquaculture respectively.
The exports of processed food from India were valued at US$ 35.5 billion during the year 2017-18, increasing at a year-on-year growth rate of 4 %. The exports have declined at a CAGR of 0.49 % during FY15 to FY18, as the value of exports fell from US$ 36.1 billion in 2014-15 to approximately US$ 35.4 billion during 2017-18.
India's exports of Processed Food were US$ 4258 Million in 2017-18, which including the share of products like Mango Pulp (US$ 104.54 Million), Dried and Preserved Vegetable (US$146.54 Million), Other Processed Fruit and Vegetable (US$ 528.22 Million), Pulses (US$ 228.32 Million), Groundnuts (US$ 524.82 Million), Guargum (US$ 646.94 Million), Jaggery & Confectionary (US$ 214.20 Million), Cocoa Products (US$ 177.47 Million), Cereal Preparations (US$ 552.33 Million), Alcoholic Beverages (US$ 326.68 Million), Miscellaneous Preparations (US$ 442.56 Million) and Milled Products (US$ 136 Million).
|Commodity||Apr-Nov’ 17||Apr-Nov’ 18(P)||% Growth||% Share|
|Processed fruits and juices||404.35||407||0.65||0.19|
|Misc Processed items||351.23||431.12||22.75||0.20|
|Source: Ministry of Commerce, FTPA|
Foreign Direct Investments
Going forward, the adoption of food safety and quality assurance mechanisms such as Total Quality Management (TQM) including ISO 9000, ISO 22000, Hazard Analysis and Critical Control Points (HACCP), Good Manufacturing Practices (GMP) and Good Hygienic Practices (GHP) by the food processing industry is expected to offer several benefits. It would enable adherence to stringent quality and hygiene norms and thereby protect consumer health, prepare the industry to face global competition, enhance product acceptance by overseas buyers and keep the industry technologically abreast of international best practices.