India to Boost its Food Processing Sector

Delhi, India (PressExposure) August 10, 2007 -- The Cabinet of India on June 21, 2007, granted its approval to an integrated plan, which aims to promote India’s food processing sector and boost the country’s agricultural business.

The approved integrated plan would help India to realize its Vision 2015 by increasing the size of the processed food sector, boosting the income of the farmers as well as generating additional employment opportunities.

The approved integrated plan and directives for the food-processing sector include, clusterization of farming on the basis of contract farming or various other informal or formal arrangements and comprehensive mapping of the India’s food cluster.

The plan would also offer choices to customers at reasonable prices, by boosting level of processing of perishable products from current six percent to 20%, value addition from 20 % to 35% and by increasing the worldwide food trade share from around 1.5% to three per cent.

The plan aims to strengthen forward and backward linkages as well as to develop supply chains with cold chain mechanism. It would also try to set up mega food parks in famous small-scale industries (SSI) like meat, horticulture, dairy and marine clusters.

A recent report by RNCOS, “Indian Food and Beverages Forecast (2007-2011)”, also highlighted Indian government’s effort to promote its food processing sector.

As per the report there are about 300 Million upper and-middle-class consumers of processed and packaged food in the country, and another 200 Million are likely to be added by 2010. In this scenario, the food processing industry has been accorded priority status by the new government.

Ministry of Food Processing Industries is planning to establish 500 food parks in the Tenth Five Year Plan across every parliamentary constituency. This will give a boost to the growth and development of food processing industries.

The research reports also addresses some other interesting issues and facts that are critical for the success in India’s food and beverage industry like the per head food consumption in various food product segments, the market size and scope of the organized food retailing in India, the growth prospects of the processed food industry as well as opportunities and challenges in this industry.

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RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of industry experts who analyze data collected from credible sources. They provide industry insights and analysis that helps corporations to take timely and accurate business decision in today's globally competitive environment.

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Press Release Submitted On: July 24, 2007 at 11:53 pm
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