Agriculture and Food Processing: the Indian opportunity

 
 


Agriculture and Food Processing are important sectors of the Indian Economy. Given its diverse agro-climatic zones, strong natural resource base and manpower availability, India holds tremendous advantages in Agriculture for processing and value addition. This sector currently contributes 19 per cent of India’s GDP and retains its significance by holding 65 per cent of the population for employment and livelihood. 

Indian agriculture has shown a remarkable growth since independence. It is the world’s second largest producer of food next to China, and has the potential for development of a large Food Processing Sector. India is the largest producer of Milk, fruits and pulses in the world and the second largest producer of vegetables, wheat and rice. It has the largest irrigated land with potential for further additions. Also India has the advantage of having the largest cattle population. 

With the rise in the per capita income, a growing middle class population and consumption patterns changing towards processed and value added foods, the food processing sector is expected to double by 2010. 

Organised retailing has emerged as the sunrise sector in India. It ensures an efficient farm-to-fridge supply chain wherein, the farmers will get a better return and the consumers will get products at reasonable prices. With the rapid growth in the Indian Food sector, the food retail sector is also growing at a hefty 9 per cent. A bread of foreign taste makers currently operates in India. 

However, the potential of Indian Agriculture as a remunerative activity has not been fully harnessed yet. Augmenting public investment in agriculture is the need of the hour, especially in rural infrastructure, irrigation, and agricultural research and development. In order to meet the challenges of the new era in Indian Agriculture the Government has started focusing on the commercialization and value addition of agricultural produce, minimizing pre/post harvest wastages, generating employment and increasing export from this sector, through a number of policy, fiscal and other measures. 

In recent years there has been a remarkable shift in the Agriculture and Food Processing scenario in India. There has been an enhanced focus on crop diversification and creation of critical infrastructure facilities like integrated cold chains, grading and packing, quality management etc. Priority has been given to Horticulture, Liverstocks and Fisheries, Organic Farming, commercial crops and agro-processing, as these are the potential areas of high growth. Better access to institutional credit for more farmers, is also high on the priority list. There is a significant focus on agri exports in the foreign trade policy. In total the Indian Agriculture and Food Processing sector in India is on a growth path.