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Growth and Support in Food Processing

India has abundant raw materials for food processing due to its agricultural resources and climate. This provides a major supply side advantage along with low labor costs, which offers competitiveness in export markets. The government also recognizes the uniqueness of different food processing segments and has created targeted policies and export zones to support the growth of each segment and of the food processing industry overall.

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Vinu D
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8 views2 pages

Growth and Support in Food Processing

India has abundant raw materials for food processing due to its agricultural resources and climate. This provides a major supply side advantage along with low labor costs, which offers competitiveness in export markets. The government also recognizes the uniqueness of different food processing segments and has created targeted policies and export zones to support the growth of each segment and of the food processing industry overall.

Uploaded by

Vinu D
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

SUPPLY

The FPI became a focus area for the Government of India and it was included in
the list of priority sector for bank lending. With various infrastructural thrusts
being provided to the industry regularly, India is projected to achieve the highest
growth rate in the industry across the globe.

Supply side advantages

Abundance of raw material:

India is rich in most of the raw materials used in the food processing industry. It is
amongst the leading producer of cereals and grains, livestock etc. An agrarian
economy, a favorable climate for agriculture and a wide variety of crops has
helped India to provide abundant agricultural supply to the sector. Rich
endowment of natural inland water bodies and a long coast line has helped the
marine product segment of the FPI.

Cost competitiveness:

A low raw material cost resulting from domestic sourcing and labor cost offers
competitiveness to the food processing units. This lends support to the units in the
export markets to capture a higher share in the global markets. However, due to
increased consumer awareness, there are pressures on the units operating in the
industry to improve the quality of the processed food and at the same time
maintain their cost competitiveness.

Policy Support:

The FPI comprises a lot of segments within itself and each segment has some
different needs in terms of industrial ecosystem, infrastructural support and policy
impetus required from the government. The Government of India has recognized
the uniqueness of each segment and has formulated policies specific to each
segment to help them grow independently. Even while creating export zones, separate
export hubs have been created for sea food, vegetarian food, organic food and halal food.

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