Processed food market: 14.6% CAGR
The Government has approved proposals for joint ventures (JV), foreign collaborations, industrial licenses, and 100% export-oriented units, with 32 projects worth Rs.406 crore sanctioned, said Minister of Food Processing Industries Harsimrat Kaur Badal in an update on the industry.
The Processed food market is expected to grow to US$543 billion this year (2020) from US$322 billion in 2016, at a compound annual growth rate 14.6%, said a release from the Ministry of Food Processing Industries on 27 Feb 2020.
The food sector has emerged as a high-growth and high-profit sector due to its immense potential for value addition, particularly within the food processing industry as it is said to have CAGR of approximately 8% over the last five years.
Food processing has an important role to play in linking Indian farmers to consumers in the domestic and international markets, underlined Badal, pointing out that it has emerged as a high-growth and high-profit sector due to its immense potential for value addition.
The projects approved till date are running across quadrilaterals of the country covering over 100 agro-climatic zones, said Badal in an update as part of progress under Pradhan Mantri Kisan Sampada Yojana (PMKSY) during meetings of the Inter-Ministerial Approval Committee (IMAC) held in Delhi on 21-26 Feb 2020.
The introduction of modern processing techniques for food results in improved shelf-life of the agricultural produce and ensure steady revenue to farmers, she said.
The Ministry is implementing PMKSY since 2016-20 with a total outlay of Rs.6,000 crore.
The PMKSY has seven component schemes viz; Mega Food Parks, Integrated Cold Chain and Value Addition Infrastructure, Infrastructure for Agro-Processing Clusters, Creation of Backward and Forward Linkages, Creation/Expansion of Food Processing and Preservation Capacities, Food Safety and Quality Assurance Infrastructure, and Human Resources and Institutions.
The main objective of this Scheme is creation of processing and preservation capacities and modernization, expansion of existing food processing units with a view to increasing the level of processing, value addition leading to reduction of wastage.
The processing activities undertaken by the individual units covers a wide range of post-harvest processes resulting in value addition and/or enhancing shelf life with specialized facilities required for preservation of perishables. fiinews.com
