The Indian are very well aware of the fact that agriculture and industry have been the two pillars of indian economy. But very few are conscious of this actuality that food processing industry plays a pivotal role in the country. In fact, food processing industry provides the requisite connection and synergy in supporting the growth of agricultural and industrial sectors.
Food processing has become an integral part of the food supply chain in the global economy and in India too, the growth prospects have been promising. As per a CII report, the food processing industry contributed to around 9 per cent of the country's manufacturing output and the sector witnessed a growth of 11 per cent and is expected to touch $600 billion milestone next year.
According to industry reports, the Indian food processing sector is poised for tremendous growth and Government of India through the Ministry of Food Processing Industries is encouraging technological innovations and investments in this sector.
However, the ministry of food processing industries annual report says that India ranks fairly low in the global food processing value chains despite being one of the largest producers of agricultural and food products in the world. The main reason for this could be lack of technological innovation in the Indian food industry, which is a plausible deterrent for slumped growth rate. To justify this conjecture, let’s look at the global food industry scenario.
Technological innovations
Food processing industries abroad are constantly engaged in research and development work. Their technological innovations have become a harbinger for growth in meeting the ever-increasing consumer demand for tastier and easy to prepare foods. How can innovation be associated with food processing industry? Well, let us for once look at it in generic terms.
In today’s times, quality and innovation have become a pre-requisite aspect to improve process, keep products and services relevant to our customers and stay ahead of competition. According to a recent report from ING, technology helps food manufacturers produce more efficiently for a growing world population. There are 7.5 billion people in the world right now and that means a higher demand for food each year. By using innovation/technology to improve processing and packaging, it can improve the quality, shelf life and safety of food. To get a better understanding of this, let’s delve deeper in understanding the food processing industry per se.
Food processing industry - Untapped potential
The Indian food processing sector comprises of a large number of products like fruits, vegetables, meat, seafood, poultry, dairy products, beverages, grains, cereals, millets, bakery, confectionery, and even ready-to-eat products. When we talk about food or any kind of perishable item, the significance of time becomes a crucial aspect. The faster the food reaches the retail counters with taste, quality and freshness sealed, higher the demand from the consumers.
In India, we often lose out on cost, quality and deliverability of products on time due to various technical and infrastructural problems. By adopting quality management and implementing innovative technical processes, companies can easily increase production, boost productivity and most importantly deliver perishable food items to the end-consumer with freshness intact. Innovation in terms of using new technology can certainly improve the quality of food and taste with cheaper prices and greater convenience.
The good news is companies in India have started paying more attention to quality and innovation to boost profits and be on par with global players. Understanding, the woes of the industry, the present government has also pitched in by implementing a scheme for technology upgradation of food processing industries. The aim of this scheme is to promote latest technology in the preservation of perishable commodities including processing of horticultural produce through setting up of new food processing units as well as technological upgradation and expansion of existing units. Under the scheme, assistance has been availed by entrepreneurs for modernisation and setting up of processing units for fruits & vegetables, meat, milk, fish, grain, beverages and consumer products.
Satisfying the ever changing consumer demand for new taste and easy to prepare food can be a daunting task but by maximising their innovation potential, food processing industries can shorten the time-to-market, improve the reliability of design chain, streamline the manufacturing processes and so on. For instance, innovation can curtail the problem of lack of cold storage capacity especially in a country like India where 60% of cold storages are located in just four states — Uttar Pradesh, Punjab, West Bengal and Gujarat. Variation in quality is another impediment. Lack of avenues and technical know-how to adequately grade, sort and pack perishable produce is a major culprit in this regard.
Quality and innovation must take centre stage in every step of the way. Let’s first look at the importance of quality. In food industry where products are both sensitive and perishable, quality is an aspect that cannot be compromised. Having appropriate quality control measures can help identify and rectify defects in the finished products. Quality management plays a vital role at many different stages of sourcing, processing, packaging including regulations on nutritive value, shelf-life, raw materials, taste, texture, use of preservatives and so on. Food quality is an important characteristic of food that can neither be overlooked nor ignored. Consumers prefer food that is fresh and scores high in quality and taste. Likewise, when we are talking about innovation in food processing industry, we are hinting at combining technical innovation with social and cultural innovation. It occurs throughout the food system, from harvesting to production, primary and secondary processing, manufacturing, cold chain and pack houses till distribution.
Innovation in the food processing industry ensures quality. By using state-of-the-art machines, companies are able to reduce the cost of keeping the food fresh thereby increasing productivity. At the global level, the latest trend is all about food that has both sensory appeal and nutritional benefits. How do we achieve this, one may wonder? It is already fructified in developed countries where innovations in food production has helped in developing novel products with specific ingredients, altered food compositions with enhanced quality and safety. Many such exciting discoveries maybe currently underway in various labs across the globe. It’s a matter of time before we enjoy the fruits of food innovation.
Conclusion
The growth trajectory of food processing industry looks promising despite the complex and diverse nature of its business. Quality and innovation must be viewed as a powerful tool that becomes an impetus for growth, facilitate in gaining entry into new markets and most importantly emerge as a solution to establish new products and processes.
