Fact Sheet

    The Food Processing Industries Department, under Ministry of Agriculture assists the sector in playing a significant role in diversification and commercialisation of agriculture, improving value addition of the agricultural produce, generating employment, enhancing income of farmers and creating surplus for export of agro foods through its policies and plans.

    The 70 billion dollar Indian food processing Industry including 22 billion dollar value added products is characterised by the predominance of small and tiny units spread all over the country. The agro-food industry today employs about 20% of the country’s labour force and contributes 15.19% of the total industrial output.

    Food processing industry in India is declared as a priority area with the entire sector delicenced. Foreign investment proposals in the sector are automatically approved. The sector has taken rapid stride in the last 8 years and 5875 Industrial Entrepreneurs Memoranda (IEMs) envisaging investment of Rs 537.36 billion and direct employment of 10.23 lakh persons have been filed. Of these, 673 projects with outlay of Rs 75.17 billion have been implemented, directly employing 87,076 persons.

    Processed food products worth Rs. 13531 crore ( Rs. 135.3 billion ) were exported during 1998-99 including marine products export of Rs. 4627 crore. It constitutes 18 per cent of total country exports.

    There are 1.39 lakh rice mills in the country including about 35,088 modernised mills. Nearly 10.5 million tonnes of wheat is converted every year into wheat products by 820 roller flour mills.

    Bakery industry in India is the largest among the processed food industries, production of which has been increasing steadily in the country. The two major bakery industries, viz. Bread and biscuit account for about 82 per cent of the total bakery products. The annual production of bakery products which includes bread, biscuits, pasteries, cakes, buns, rusk, etc., most of which are in the unorganised sector, is estimated to be in excess of 30 lakh tonnes. The production of bread and biscuits in the country, both in the organised and unorganized sectors, is estimated to be around 15 lakh tonnes and 11 lakh tonnes respectively. Of the total production of bread and biscuits, about 35 per cent is produced in the organised sector and the remaining is manufactures in the unorganised sector. Another wheat based product known by its generic name, pasta products, comprising of noodles, vermicelli, macaroni and spaghetti is gaining popularity.

    Approximately 34000 tonnes of cocoa products like chocolate, drinking chocolates, cocoa butter, cocoa butter substitutes, cocoa based malted milk foods are being manufactured by 20 units.

    The production of soft drinks during 1998-99 has increased to 6230 million bottles. 36 units are manufacturing beer with an output of 4.00 lakhs KL per annum.

    India is the largest producer of fruits (41.5 million tonnes) and second largest producer of vegetables (67.28 million tonnes) in the world. The country tops in production of banana, mango, potato, tomato, onion, green peas and coconut. Only 2 per cent of the fruit/vegetable produce is being processed at present. The installed capacity of fruits and vegetable processing industries has increased to 21 lakh tonnes in 1999 with 4589 fruit/vegetable processing units. Exports during 1998-99 were worth Rs.678 crores,

    India is the largest producer of milk in the world with output to reach 78 million tonnes in 1999-2000. The large increase in milk production has been the result of frozen semen technology, progeny testing and national bull production programme resulting in genetic upgradation of cows and buffaloes. The country produced 2.25 lakh tonnes milk powder including infant milk food, 5000 tonnes cheese, 66,000 tonnes malted food and 11,000 tonnes condensed milk in 1999.

    Total meat production in the country is to the tune of 4.5 million tonnes with 171 meat processing units and egg production is 31.32 billion. Animal products worth Rs. 859 crore were exported during the period.

    Fish production in the country during 1998-99 was 5.26 million tonne. Processing of marine products into canned and frozen forms is carried out almost entirely for the export market. In all there are 393 freezing units, 13 canning units, 160 ice-making units, 12 fish meal units and about 476 cold storage units in this sector. Marine products worth Rs. 4627 crore were exported in 1998-99.