The growth in processed food products not only opens up new avenues of investment for exporters and entrepreneurs in the sector, but also is the result of concerted efforts made by the Indian government over the past six years.
The government, through the Ministry of Food Processing Industries (MoFPI), has also taken all necessary steps to boost investments in the food processing industry – sanctioning 37 food parks funded under the Mega Food Parks Scheme, of which 21 are operational and 16 are under implementation as of January 2021.
“India has made vast progress overtime in providing food security for its people and has become largely self-reliant in agriculture. Accordingly, the policy focus has shifted from attaining self-sufficiency to generating higher and stable income for the farming population,” said the Reserve Bank of India in a policy briefing.
“The food processing industry (FPI) is one area which has the potential to add value to farm output, create alternate employment opportunities, improve exports and strengthen the domestic supply chain. India, with about 11.2 per cent of total arable land in the world, is ranked first in the production of milk, pulses and jute, second in fruits and vegetables and third in cereals (Government of India, 2019). It is also the sixth largest food and grocery market in the world,” the RBI observed.