However, with rise in demand and import of sophisticated machinery, the industry began to expand and became organised in most aspects.
While it is true that the food processing industry in the country has been growing rapidly for the last few years, it is facing several constraints such as lack of indigenous manufacturing of machinery and poor infrastructure. Nevertheless most surveys and studies predict the industry to be worth billion dollars in the near future.
Rapid Growth
In fact, the food processing industry in India is growing so rapidly that this year, the investment in the industry is said to have reached a whopping €106.4 million, in contrast to last year's miniscule figure of about € 4.2 million. Thus what we are now witnessing is the spectacular growth that the industry is reaping.
It is pertinent to note that the Indian ministry of food processing industries (MoFPI) has charted out the blueprint for uplifting the standard of processing in the country so as to promote the industry in both national and international markets, increase opportunities and attach value to agriculture for the over all development of the sector. The action plan that has been laid out to enhance the processing level of perishables has been approved by the government which has envisaged tripling the worth of the industry by 2015.
Not only that, India is in a position to be self-sufficient in the food production industry because of its potential for producing immense variety of food products at or below international price in most cases.
Flourishing industry
However, as we know, the sector is highly fragmented, consisting of various segments such as fruit, vegetable, grain, beverages, dairy, meat and marine products. Its sub-sectors encompass soft drink, confectionery, tomato sausage and paste, and alcoholic drinks.
These pointers augur well for both the investors and exporters and hold out broad scope and promising prospect for the industry, paving the way for gigantic investment in food, food processing technologies, skills and equipment particularly in the field of canning, meat & marine products, and dairy and food processing. Hence, if the investors and companies make investment in this flourishing industry, they can reap handsome profits.
The food processing industry which holds a unique position in the Indian economy, has seen the food habits of the people change drastically to ready-to-eat food. This change is a result of change in lifestyle and this in turn has given rise to new opportunities to food producers, machinery makers, and technology and service providers. The expansion has been in a new direction and it is steady with almost 7 per cent growth annually. Further, infrastructure development with the help of adequate investments and exports in the sector will take this industry to new heights in coming years.
Interestingly, drastically changing eating habits have earmarked transformation & innovation in food processing technology and that has helped the industry reach great heights today. This being the scenario, the key objective of modern research is to provide food processing machines that can preserve the naturalness, flavour, colour and nutrition of the food and maintain the hygienic & nutritious state. The food processing machinery is designed to clean, dry, peel, rub, polish, grind, blanch, freeze, de-freeze, fry, mix, pasteurise and carry out other service operations without damaging the quality of the raw materials.
Technological Advancement
In a world where the competition is intense, the food processing machinery industry is no exception. Only through innovation in technology, a food company can generate the growth that is pre-requisite to shield its sustained success. Bayer Crop is striving hard to devise innovative approaches to cater to the rising demand for high-quality and affordable food. Consequently, as part of its Sustainability Programme, the company has launched two lighthouse projects to help increase agricultural yields, enhance food quality and improve the income situation of farmers.
Most food processing companies are frequently upgrading technology as they are constantly striving for innovative and distinct ways to enhance their sales and market share. Further, they are consistently introducing new products in the markets, taking help of aggressive promotional campaigns, and coming up with new technology & techniques to maximise the quality of processed food products.
In this regard, vacuum cooling technology brought overwhelming changes in the food processing industry and it is an effective method to cool down specific horticultural products such as vegetables and fruits to extend the storage life by cutting down deterioration of post-harvest yields. This technology is also applicable to improving competence of processing by slashing cooling time, which in turn saves energy, prolongs product life and maintains the safety and quality of the food product.
New Techniques
Computer Vision is another mechanism that has made a significant place in the food processing sector in recent years. This useful method is employed for inspecting the quality of food products intensively. The challenges in production are extreme and quality has been a tough nut to crack, but thanks to Computer Vision, which has made it possible because of its speed, accuracy, and efficiency.
This technique is also used to ascertain the characteristic of raw materials as well as assess the quality of foods such as vegetables, fruits, meat, cheese, poultry, and fish. The latest innovation in the food technology industry is hydrostatic pressure or high intensity electric field pulses, offering promising scope for food companies. It helps in not only preserving the food items but also performing other processes like drying and permeabilising plant membranes. This processing technology is quite safe, gentle and hygienic, dealing with the pristine modification and preservation of foods.
The great demand for fresh and high quality food has resulted in extensive research to develop technology that can sustain the natural taste and flavour of foods, albeit in spite of seasoning extra nutrients and vitamins. So, non-thermal technology has drawn great attention. This method is combined with several preserving technologies such as irradiation, antimicrobials, filtration, ultrasound, and so on, offering plenty of benefits for food preservation.
At present, the quality of meat is assessed through visual appraisal method such as marbling, muscle colour, and skeletal maturity. Such advancement in food technology resolved the credibility issue that boosted confidence among consumers, leading the industry to greater heights.
Organised Retail
Emergence of organised retail has proved to be a positive traction for the food industry. Modification in government policy and regulations, conglomeration of poultry chain, raising value of the dairy products, and setting up research and development panel that aims at acquiring new products and developing cost-effective technology for processing and preservation of food products, and ameliorating various aspects such as colouring agents, pesticide residues, and preservatives.
Quality
Improving quality control procedures, releasing adequate fund for food testing laboratories and setting up a surveillance system for monitoring quality and composition of food are landmark decisions taken by the government in favour of promoting the food technology sector and food industry.
The entire market of food processing machinery was valued at over USD$2 billion in 2005, and was expected to grow consistently by about 18 per cent annually. Further, the industry in India has displayed ample potential in fulfilling huge demand both in the national & international markets. The machinery industry in India is key to manufacturing sector by dint of providing all necessary machinery and equipment required for production.
Government Policy and Collaboration
The Government of India has taken initiatives to provide special assistance in order to bolster the infrastructure for the food processing industry through additional concessions and subsidies and has cut down taxes to encourage expansion, accentuating the food processing industry as the backbone of the country's economic growth. A plenty of industrial entrepreneurs are operating their businesses on a microcosmic scale in terms of production and revenue. The industry accounts for more than 70 per cent of the output in terms of quantity and 50 per cent in terms of value.
MoFPI is planning to set up an exclusive food park powered by French technology that would help Indian companies maintain quality at par with international standards. The ministry has made a strong recommendation to the government to grant tax concession as well as consider cut in VAT and custom duties on food products, raw materials and machinery.
Recently France and the Netherlands have promised to invest in the expansive food processing sector and the government's ambitious plan to double the size of the sector within five years. All these pave the way for overwhelming development of the processing machinery sector in India.
Positive Measures
In order to encourage investors and business, lots of different policy initiatives and measures which have been undertaken by the government are efficacious to the growth of food technology and food industries. As a result, the amount of credit has been multiplied by the banks and FIs, from US$17.41 billion during 2003-04 to over US$23.76 billion during 2005-06.
" Full Duty Exemption on all imports for units in Export Processing Zones
" Zero Import Duty on Capital Goods and Raw Material
" Income Tax Rebate
" Cut in Customs Duty on Packaging Machines.
" Central Duty on Meat, Poultry, and Fish Reduced to 8 per cent.
The liberalised policy with specific incentives provides a conducive environment for investment and exports in the industry and imports of food processing equipment accounts for less than 5% of the total processing machinery market because of being more expensive than indigenous products. So it motivates foreign investors to join hands with Indian companies in order to cover a vast untapped market. If this tie-up is achieved, we have yet another reason to say, the world is a global village.
