Focus on the Future of the Food Industry in India
Posted by indira hk on February 17th, 2021
India has emerged as a key player in the global food market. With ample scope for exploiting advanced agricultural technologies, India has established itself as a key destination for food processing and distribution. The tremendous growth in the number of food processing units in the country has added value to the food market. However, amidst this growth, there are challenges that have to be dealt with, specifically in terms of quality standards and product mix. Focus on the Future of the Food Industry in India can thus provide a boost to improve quality across the food chain.
India's rise to global prominence as a major player in the food industry has come at a time when the domestic production has declined. This has led to an oversupply of many food products. Moreover, the rapid expansion of the human population has also been a contributing factor to the oversupply of products. The above-mentioned challenges have not only limited the scope of food processing units in India, but also put a great deal of pressure on the animal feed industry in India. In this context, there has been an unprecedented growth in demand for farm-based proteins like milk and poultry products.So, how can we successfully address the challenges that lie ahead? A concrete focus on the future of the food industry in India provides a perfect platform to address these issues. The first challenge is to look at the current production and sales situation. The second step would be to understand the variety of products and the manner in which they are being marketed in the market.
One can understand the variety of food products sold in the market by looking at the various segments available in the market. Amongst these, the dairy sector accounts for a significant share in the overall turnover. The demand for dairy products has consistently witnessed a rise in recent years. While it may be true that the demand and sale of milk powder will continue to rise, the scope for growth of other dairy products like yoghurt and milk is limited in comparison to that of butter. The small and marginal operations that have managed to survive in the market largely depend on government policies and subsidies that are offered to food processors and foodstuff manufacturers.
So, the challenge is to come up with new and innovative processes and systems to cater to the increasing demands of the consumers. One such area of focus on the future of the food industry in India is the processing of food products. The success story of the processing industry can be attributed to the liberalization policies adopted by the Indian government in the past few decades. Though different states in India have different policies, but all of them have provided a platform for small and marginal food processing units to come up and establish themselves in the market.
The major benefit of the liberalization policy is that it facilitates competition in the field of processing. It also leads to price reduction in the processing industries. With so many processing industries coming up in the country, competition has grown fierce among them. Many small and marginal processing units are venturing into the field of food processing, and they are aggressively competing with established and bigger competitors. Small and marginal processing industries are less profitable, but they still manage to maintain a balance between profit and loss in the market. This has further encouraged many businesses to start processing their own food products.
Another area of focus on the future of the food industry in India is the introduction of more sophisticated equipment in the processing units. These machines have enabled processing industries to reduce the labour cost involved in the entire process. They can now process different kinds of food items at low labour costs. They can also process frozen foodstuffs at much lower prices than the rest of the food industry. Due to these recent developments, many people have started taking interest in the field of processed food, and this industry has experienced an increased growth over the past few years.
A third area of focus on the future of the food industry in India is related to the government policies and subsidies schemes implemented on the food market. The subsidies schemes cover the costs involved in the food processing industry. The policies are aimed at promoting the processing and distribution of food products within the country. Some of these schemes have also extended support to small scale and cottage industries. This has further encouraged the development of small food processing industries.
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About the Authorindira hk
Joined: February 17th, 2021
Articles Posted: 1