“HORN PLEASE TO INDIAN

FOOD INDUSTRIES”
Food is a necessity of life. Food habits and style differs among various religion and
community. India being a secular country enjoys divers’ food habits and patters with the
changing food habits and patterns among more and more health conscious people. Food
industries have developed into blooming and upcoming industries in India. Food
industries are one of the fastest moving industrial sectors in India with the advancement
of this sector along with a through change in food consuming patterns of Indians. We are
also using the new technologies in food processing and packaging industries. And if we
are thinking about this sector we will have to know that the ground reality of this sector,
according to present scenario it says that…………….

India is the largest grower of fruit about 15% of world output, but low share of global
exports at 0.5%.The second largest grower of vegetables about 11% of world output, but
low share of global exports at 1.7% and cold storage facility available for only 10% of
produce. Lowest cost producer of fruits and vegetables, but low farmer income and low
farmer suicide. Second highest producer of milk, but organized dairy accounts for only
13% of milk produced, only 70,000ton cold storage capacity for 90 million tons produced
and poor yield per cow. Second largest cattle population ,but 5500 registered and 25770
unregistered slaughter house with no chilling, freezing and cold storage facility as hot
meat market prevails .Fifth largest producer of eggs ,but poultry meat sold as hot in retail
market. sixth largest producer of fish, but 20-30% damage and no cold storage facility in
west Bengal, Andhra Pradesh and goa.

In India the present scenario of processing is low likewise 2.20% in fruits, 35% in milk
and 6% In Poultry. The value addition in food industry is 20%.Indias current share in
world trade of processed foods is 1.60%.The market surplus of foods and vegetables is
88%and farmer sells immediately due to perish ability and absence of proper
infrastructure to keep it for longer period. it is ridiculous to say that post harvest wastage
of fruits and vegetables that is 25-35% valued at over Rs.45,000 crore denotes losses as
above in India is more than consumption of same in UK.

In Indian market surplus of food grains is 60% says that farmer keeps some for own
consumption, seed purpose and to give to labor as wages statistically loss in above equal
to annual food grain production in Australia. Cost of wastage six times amount spent on
food subsidy and farm gate price 25% of domestic consumer retail price against 50% in
developed countries.

The Indian food industries with abundant resources, but lacking a proper management
results push India back. The following key drivers could make some changes in the
current scenario, they are…………………………
 Optimal agro
climatic Political
condition environment

Strong
credible
Strong coordinating
demand & promotion
agency

Strong Strong
consumer corporate
base leadership

India is ready to be global power in food processing sector? The Answer says “yes”
because of the following reasons…………………………………….

 Inherent natural advantage.

  Literate workforce.
 Growing consumption based industry cheaper labor.
 Strong corporate leadership.
 Focus on agri/rural sector.
 Good governance, favorable policies & spending.

A comparison of Indian agree supply chain with respect to

Developed countries

IN DEVELOPED CONTRIES

Farmer → Wholesaler → Retailer → Customer

IN INDIA

Farmer→Consolidator→commission agent→Trader→Wholesaler→Retailer→ Customer

The Indian agree supply chain shows the major hurdle towards the value addition as a
result like food inflation goes increasing day by day.

To avoid problems like, food inflation, farmer suicide etc. Indian agree market needs to
reduce the distance between farmer and customer.
At the end their are certain strategies for future value addition.

 Enhancing the sales and value added products.

 Creating economies of scale.
 LAB TO LAND & FARM TO FORK linkage.
 Introducing innovative products.
(By Ahemar sheikh student of
NIT Graduate School of
management)