Food processing industries under the SMEs flourished with an advent manner

Jul 16 16:54 2017 RAVI HASIJA Print This Article

This article is on Food processing industries and how does India is on top position on contributing to the world

India has considered as one of major food producers in the world and contributes about 28% of India’s GDP. In terms of world ranking; India takes the first position in the production of cereals,Guest Posting Livestock and milk production, a second position in producing fruits and vegetables, and the fifth rank in producing wheat, rice, and groundnuts, spices, sugar & oilseeds, tea, coffee, and much more.

Factors allowing India to take a part in food processing sectors:

Vast supply of raw material

  • India is certainly one of the biggest manufacturers of wheat and rice.
  • India is the second largest producer of fruits, veggies, and groundnuts. That it accounts for approximately 10 percentage of the world's fruits production with the country topping within the manufacturing of mangoes and bananas.
  • Coconuts, ginger, turmeric, cashew nuts and black pepper is broadly grown in a few components of the country.
  • Due to the high processing ranges, milk products provide a significant opportunity in India. India is the arena's largest producer of milk thanks to the sturdy enterprise models formed via cooperative actions the country. Milk and related products account for 17% of India's general expenditure foods. This part enjoys liberal guidelines as all milk merchandise besides malted ingredients are robotically allowed 51% foreign fairness participation and all export of dairy merchandise are freely allowed.

Low manufacturing cost

The skilled Indian workforce has ability to make the Indian food in low prices resulting in attracting the foreign market.

Gathered market from large urban middle class

Because of the massive population of 1.08 billion, India’s becomes large and growing market for food products. And by introduction of 350 million strong urban middle class with its changing food habits drags a massive market for agriculture products and processed foods.

Shifting of the conventional market to commercial farming

The process of dragging from the conventional market to commercial farming also allows the Indian food market to get a good rank in overall percentage.

Conducive food processing policy environment

The national policy on food processing wants to hike up the level of food processing from 2% to 10 % and also 25% in the coming years. For this, the Indian government has permitted 100% FDI in processing field.

This policy will ensure an appropriate environment for owners to establish up food processing industries through:


  • Strengthening of database and advertising intelligence system via studies and surveys to be performed in various ranges to enabled deliberate funding in the various region matching with the provision of raw material and marketing of processed merchandise strengthening extension services and to the farmers and co-operatives inside the regions of post-harvest control of agro-produce to encourage the advent of pre-processing centers close to the farms like packaging, washing, fumigation, and so on.
  • Efforts to encourage putting in of agro-processing centers as near the place of production as feasible to keep away from wastage and decrease transportation fee.
  • Promotion of investments, each overseas and domestic, simplification of documentation and methods under taxation legal guidelines to avoid needless harassment arising out of mere technicalities

Small and Medium Enterprises (SMEs) have been making an important contributions in food processing industries since 1990’s.The food processing industry under the SMEs flourished with the advent of the food packaging era and the development of the storage facilities within the cold storage units within the Indian market.

The food market is well worth about Rs.10.1 lakh crore out of which the Food Processing Industry contains 53% or Rs.5.3 lakh crore and from which the better percentage has dragged by way of the SME’s.

Moreover, do you know? The emergence of retail food chains, the acceptance of packaged meals and the emergence of the food courts in the India's urban areas have contributed greatly to the meals processing unit of the SMEs. Moreover, with modernization and effect of the western way of life, the trend of consuming out of doors has extended the growth of the food processing industries within the Indian economic system. With hiking up the demand of the packaged food consumers in India, the general marketplace size of the food processing sector has also widened.

Opportunities Galore in Food Processing Industry with the aid of SME’s

There are abundant possibilities for food processing corporations in India. The demand for numerous products of meals processing enterprise is at the upward thrust due to the increase in consistent with capita profits of the Indians which results in better spending on price delivered foods.

As per the volumes of production, India ranks amongst the best within the global in some of the food merchandise. But from the total growth, the food processing SMEs contain the subsequent gadgets:

  • Beverages
  • Snacks and confectionery
  • Dairy
  • Spice buying and selling
  • Food chains and restaurants

There are numerous scopes for the food processing sector as per the SMEs within the domestic in addition to the worldwide commercial enterprise areas.The current growth of the food processing unit under the SME ispredicted to take a look at a whopping upward push in the approaching years with an approximate parent of US 65.4 billion dollars by means of 2018. Food processing unit of the India’s SMEs account for 31% of the consumption basket of India and could continue to grow inside the coming times.

Let’s see what duties performed by the employees of SME’s to drag the growth of food industrial companies:

Working environment duties

  • Being targeted on a work environment free from medications and any form of provocation or terrorizing of representatives;
  • Being targeted on the safety of our people;
  • Being resolved to affordable commercial enterprise rehearses;
  • Being resolved to train in the worksite surroundings;
  • Compliance with fitting legal guidelines and controls internal
  • Corporate assets should no longer be utilized for man or woman benefit;
  • Exercise trustworthiness and models of suitable taste whilst making agency data, which includes e-mail;


Talking to Customers and Other External Constituencies


  • Preparing bills precisely and searching after facts;
  • Ensuring not to make use of unreasonable and misdirecting factors while advertising and marketing Britannia merchandise and administrations;
  • Accepting and giving advantages isn't allowed, apart from as administered by using the strategy set down in this;
  • Maintaining improved necessities of fee;
  • Speeches, media interviews, and other open appearances regarding Britannia must first be recommended inside;
  • Treating clients, vendors, and contenders politely.



  • Keep patron statistics cozy in all instances, as a sacrosanct consider given to the organisation by using our clients;
  • Keep representatives’ information mystery.
  • Protect restrictive and personal records in all situations as in line with appropriate law;


Corporate Social Responsibility

  • Catering to the country-wide intrigue
  • Committed to being a respectable corporate country wide


Speculations and Outside Activities

  • Trading within the securities or something different employer while possessing “inner” information is illicit;
  • Avoiding actual or saw irreconcilable situations in areas together with ventures or out of doors enterprise physical activities, amongst others.

Other duties

  • Maintaining moral measures, consisting of right bookkeeping controls;
  • Identify, floor and resolve ethical issues with super pace;
  • Maintain organized information exactly and preserve them, as according to law.
  • Talking to Customers and Other External Constituencies


The Future of Food Processing in India

The hassle of high levels of manufacturing and low degrees of processing is a trouble that occurs throughout the Food Processing Industry and this tells us approximately the massive ability that still rests to be exploited. Low investment in research and development remain the largest challenges. But diverse funding automobiles provided with the aid of the Government need to accelerate funding and boom in Industry.

Investment opportunities of about Rs.1.1 lakh crore are to be created by means of 2016. The home processed grocery store is currently worth Rs.5.3 lakh crore. Taking into attention the excellent boom and funding opportunities, it is predicted to develop to US$ 310 billion via 2016.

India is one of the world’s food producers but debts for most effective 1.7% worth Rs.34,000crores in 2008 of worldwide alternate in Food Processing. This proportion is predicted to upward push to 3% by means of 2016. This would be executed by elevating the amount processed (as a percentage of the overall manufacturing) and subsequently increasing exports.


There is unlimited scope for the food processing sector under the SMEs in the domestic as well as the international business regions. The current net worth of the food processing unit under the SME is expected to observe a whopping rise in succeeding years with an approximate figure of US 65.4 billion dollars by 2018. Food processing unit of the India’s SMEs account for 31% of the consumption basket of India and will continue to grow in the upcoming times.

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