The PLI scheme for the Food Processing Industry (PLISFPI), launched on March 31, 2021, with a budget of ₹10,900 crore, is set to run from 2021-22 to 2026-27. The ministry reported that 171 beneficiaries have been selected under the scheme, following extensive stakeholder engagement and publicity efforts to ensure wide participation.

The scheme mandates the use of domestically produced agricultural products—excluding additives, flavours, and edible oils—boosting local procurement and supporting rural economies. This has benefitted farmers and spurred off-farm employment opportunities in underdeveloped regions, thereby contributing to rural economic growth.

The government also supports small and medium enterprises (SMEs) in food processing through related initiatives like the Pradhan Mantri Kisan Sampada Yojana (PMKSY) and the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme. These programs offer financial, technical, and marketing assistance to SMEs, encouraging capacity building, innovation, and formalization.

A significant number of beneficiaries under the PLI scheme are micro, small, and medium enterprises (MSMEs). Seventy MSMEs are enrolled directly, while 40 others operate as contract manufacturers for larger firms.

The scheme also includes a branding and marketing component for international markets, reimbursing up to 50% of expenditure, with a cap of ₹50 crore annually or 3% of yearly sales, whichever is lower. Currently, 73 beneficiaries are utilizing this feature.

This initiative continues to bolster domestic manufacturing, enhance value addition, and generate employment, supporting the overall growth of India’s food processing sector.

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Union Minister of State for Food Processing Industries, Navneet Singh Bittu, provided the data in a written reply to the Lok Sabha, highlighting India’s consistent export performance in the organic food sector over the years.

The data, sourced from certification bodies accredited under the National Programme for Organic Production (NPOP) via Tracenet, revealed the following export figures for previous years:

• 2019-20: 6,38,998 tonnes worth USD 689.10 million
• 2020-21: 8,88,179.68 tonnes worth USD 1,040.95 million
• 2021-22: 4,60,320.40 tonnes worth USD 771.96 million
• 2022-23: 3,12,800.51 tonnes worth USD 708.33 million
• 2023-24: 2,61,029 tonnes worth USD 494.80 million

The Agricultural and Processed Food Products Export Development Authority (APEDA) oversees the NPOP, which involves accrediting certification bodies, establishing organic production standards, and promoting organic farming and marketing.

Minister Bittu noted that India currently has 1,016 organic-certified processing units under NPOP. These units cover various operations, including production, processing, and trading, helping strengthen India’s position in the global organic food market.

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The meet, a part of Bihar Business Connect 2024 – Global Investors’ Summit, aims to position Bihar as a rising hub for the food processing sector. With its rich agricultural base, evolving infrastructure, and investor-friendly policies, the state is set to attract significant domestic and global investments.

Industry leaders, policymakers, and investors have gathered to discuss Bihar’s strategic potential, focusing on economic growth, employment generation, and sustainable industrial practices. The event also highlights the state’s vision for creating a robust ecosystem in the food processing industry.

Bihar Industries Minister Nitish Mishra emphasized the transformative potential of this meet, projecting it as a precursor to the upcoming Bihar Business Connect Summit on December 19-20. He expressed optimism about surpassing the ₹50,000 crore investment proposals received in last year’s edition.

Roadshows promoting the event across cities like Delhi, Mumbai, and Kolkata have set the stage for impactful partnerships and collaborations. This investor meet marks a significant step toward Bihar’s emergence as a key player in India’s industrial landscape.

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Objectives of the Programme

This initiative aims to:

1. Enhance decentralized grain storage capacity at the grassroots level.
2. Improve food security by reducing wastage during storage and ensuring availability in rural areas.
3. Empower PACS to act as hubs for agricultural and rural development activities.

Key Features of the Pilot Project

• Infrastructure Development: Each PACS godown is equipped to store grains securely, ensuring quality and minimizing losses due to pests or climatic factors.
• Cold Chain Establishments: PACS are also being equipped to establish cold chain infrastructure, including:
  • Cold storage units for perishables.
  • Pack houses for sorting and packaging.
  • Refrigeration vans for transporting fruits and vegetables.
• This cold chain infrastructure is aligned with the Centrally Sponsored Scheme of Mission for Integrated Development of Horticulture (MIDH), enabling efficient distribution of fresh produce from rural areas to markets.

Expansion and Future Prospects

• Following the initial success, the pilot project has been extended, with over 500 additional PACS identified as of November 21, 2024. These PACS, spread across the country, will replicate the decentralized storage model, significantly scaling up storage capacity and enhancing food security.
• The involvement of cooperative societies ensures greater participation by farmers and local communities, fostering ownership and sustainability.

Impact and Benefits

1. Enhanced Storage Capacity: Mitigates storage issues for farmers, providing better options for grain preservation.
2. Reduction in Post-Harvest Losses: Improved infrastructure minimizes losses due to spoilage, pests, and poor storage conditions.
3. Boost to Rural Economy: Strengthened PACS contribute to job creation and improve the economic conditions of rural populations.
4. Efficient Supply Chain for Horticulture: Cold chain facilities help maintain the freshness and quality of fruits and vegetables, ensuring better market prices for farmers and reducing waste.

Collaborative Effort

The success of this project reflects the collaborative efforts of central and state governments, financial institutions, and cooperative societies. With entities like NABARD and NCDC providing financial and technical assistance, the program showcases how cooperative models can effectively address critical issues in agriculture and food security.

Way Forward

As the program expands, its long-term vision includes:

• Establishing a robust nationwide decentralized storage network.
• Integrating advanced technology for inventory management and monitoring.
• Strengthening supply chains for agricultural produce, benefiting both farmers and consumers.

This decentralized approach represents a major leap forward in achieving food security, fostering rural development, and empowering India’s agricultural sector through the cooperative model.

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The expansion of India’s food processing industry, projected to grow from $263 billion in 2019-20 to $535 billion by 2025-26 at a compound annual growth rate (CAGR) of 12.6%, is a key driver of this hiring trend. The report attributes the surge to deeper market penetration into rural and semi-urban areas, supported by robust growth in key product segments like dairy, ready-to-eat foods, frozen meat, and snacks.

Demand for Specialized Skills
“The demand for fresh talent in FMCG is being fuelled by rural and semi-urban expansion, underpinned by the rapid growth of the food processing sector,” said Shantanu Rooj, Founder and CEO of TeamLease EdTech.

Freshers with expertise in market insights, retail distribution, and regional consumer behaviour are particularly sought after. Companies are also focusing on roles in supply chain management, logistics coordination, and brand development.

Regional Hiring Trends
The hiring intent varies by city and role:

• Bengaluru: Food engineer roles top the list, with a hiring intent of 41%.
• Delhi: Logistics coordinators show a hiring intent of 39%.
• Hyderabad: Supply and distribution chain roles record a hiring intent of 37%.
• Bengaluru: Brand management trainee positions show a 34% hiring intent.

Each position demands a combination of technical expertise in supply chain, inventory, and logistics management, along with strong communication skills to navigate diverse regional markets.

Outlook for the FMCG Sector
The survey, covering 526 companies across 18 industries and 14 regions, underscores the FMCG sector’s role as a major employment generator in India. With continued growth in the food processing industry, the demand for skilled fresh talent is expected to rise, particularly in metros and expanding tier-1 and tier-2 cities.

This trend highlights FMCG’s contribution to job creation and its adaptability in meeting the needs of India’s evolving consumer markets.

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Key measures include ethical sourcing, waste reduction, composting programs, and efficient waste management systems. These efforts align with increasing consumer demand for eco-friendly practices. “As awareness around sustainability grows, consumers increasingly prioritize ethical considerations in their purchasing decisions,” noted Shravani Mali, Consumer Analyst at GlobalData.

Governments in the region are also stepping up, with countries like Australia aiming to halve food waste by 2030 and China enforcing the Anti-Food Waste Law to address its municipal waste crisis. These policies highlight the economic, environmental, and social costs of food waste, which remains a critical issue across supply chains.

Tim Hill, Key Account Director for Southeast Asia at GlobalData, emphasized innovative solutions such as using food waste as natural fertilizer and redistributing surplus food through nonprofit collaborations. These strategies aim to minimize waste and maximize resource efficiency.

The report underscores the growing momentum for sustainability within APAC’s food sector as businesses and governments work together to mitigate the environmental impact of food waste.

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From 2024 to 2034, the frozen food processing machinery market is forecasted to grow at a steady 5-6% compound annual growth rate (CAGR). Key factors fuelling this growth include rapid urbanization, busier lifestyles, and an increased focus on food preservation. This trend is bolstering demand for specialized machinery essential for quality and efficient production in frozen food processing.

The market is categorized by service type, sourcing, application, and industry vertical:

• Service Type: This includes maintenance, installation, and consulting services for machinery.
• Sourcing: Original Equipment Manufacturers (OEMs) are preferred for durability, while aftermarket suppliers offer cost-effective solutions.
• Applications: Key applications are in vegetable, meat, seafood, dairy, and bakery processing, among others.
• Industry Vertical: Food manufacturers and foodservice providers are primary users, with retail chains also playing a role.

North America leads the market, owing to well-established frozen food consumption patterns and advances in food processing technology. Europe follows closely, driven by a demand for premium frozen products and energy-efficient machinery. Meanwhile, Asia-Pacific is expected to record the highest growth due to urbanization and rising consumer interest in frozen foods, particularly in China, India, and Japan.

• Drivers: Increasing demand for convenient foods, advances in automation and IoT, and stringent food safety regulations are pushing the market forward.
• Challenges: High initial machinery costs, the complexity of maintenance, and energy consumption are significant barriers, especially for smaller companies.

The market is witnessing a shift toward automation, with robots and AI enhancing efficiency and reducing labour needs. Additionally, there is a growing demand for energy-efficient machinery as sustainability becomes a priority. Innovations in freezing technologies like cryogenic and blast freezing are also enhancing food quality and nutritional retention.

Major players in the market are focusing on innovation, regional expansions, and partnerships. These companies are heavily investing in research and development to create eco-friendly, automated solutions to meet growing demand, particularly in emerging markets.

The frozen food processing machinery market is on a promising trajectory, with advancements in technology and a strong push toward sustainability expected to drive further growth. Emerging economies are anticipated to play a crucial role, while developed markets focus on eco-friendly solutions.

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This food corridor is part of a broader investment strategy that targets a total of $100 billion across several sectors, including infrastructure and manufacturing. Goyal highlighted that investments from the UAE into India are anticipated to rise following the recent bilateral investment treaty (BIT) signed in August, which is designed to enhance economic cooperation between the two nations.

A working group comprising representatives from the central government, involved state governments, and the UAE has been formed to expedite the project’s implementation. Goyal noted that this initiative is expected to increase farmer incomes and create job opportunities in food processing, while also ensuring a reliable supply of agricultural products to the UAE and the Gulf region.

Furthermore, Goyal announced the establishment of Invest India offices in both countries to streamline investment processes. The UAE will provide space for the Invest India office in Dubai at no cost, while India will reciprocate with a location for the UAE’s investment office in New Delhi. These offices are expected to facilitate approvals and enhance economic collaboration.

In a significant move towards educational collaboration, the Indian Institute of Foreign Trade (IIFT) will set up its first overseas campus in the UAE, located at the former Dubai Expo Pavilion. This follows the establishment of an Indian Institute of Technology (IIT) campus in Abu Dhabi last year, further strengthening the ties between India and the UAE.

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Agricultural production, especially of milk, fruits, and vegetables, has been steadily increasing in India. Food processing plays a critical role in connecting the agricultural and manufacturing sectors, adding value to both. While the sector is growing, processing rates for key produce remain low—just 2.7% for vegetables, 4.5% for fruits, and 15.4% for fish, compared to much higher global levels. This presents a significant opportunity to scale up processing efforts and reduce wastage.

Household food processing has deep roots in India, with traditional items like pickles, jams, and breads being staples of the country’s rich culinary heritage. These homemade products often preserve essential nutrients, avoid excessive fats, sugars, and salts, and maintain unique flavours. Foods like kombucha, pickles, and kefir known for their probiotic properties exemplify the health benefits of this segment.

Women, who constitute a third of the labour force in India, are under-represented compared to other countries at similar income levels. Promoting home-based food processing could not only empower women economically but also allow them to balance childcare and work. This approach could significantly reduce income and multidimensional poverty, while fostering economic inclusion.

Consumers are increasingly seeking transparency in the food they consume, with a growing interest in locally sourced and sustainable products. Home-based food processing, which relies on locally procured ingredients, can cater to this demand, offering traceability and minimal environmental impact.

However, regulatory challenges remain a major obstacle for household food processors. Current laws require all enterprises, regardless of size, to be registered and operated from commercial premises, making it difficult for many home-based businesses to comply. In contrast, countries like the U.S. have implemented more liberal cottage food laws, allowing non-hazardous food production in home kitchens under certain conditions.

To unlock the full potential of household-based food processing, India needs a more supportive regulatory framework, akin to the Amul model, which successfully eliminated middlemen and established direct links between producers and consumers. A cottage license system, combined with modern technology and industry support, could spur a decentralized food processing revolution.

With proper support from the government and industry, India’s households could emerge as key players in the food processing sector, offering consumers’ fresh, nutritious, and hygienic homemade food options.

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He underscored the introduction of key initiatives such as 100% foreign direct investment (FDI) in food processing, the Pradhan Mantri Kisan Sampada Yojana, the formalization of microfood processing enterprises, and the production-linked incentive (PLI) scheme for food processing industries. These reforms, he said, are creating a strong ecosystem of modern infrastructure, robust supply chains, and employment opportunities across the country.

The Prime Minister noted that the participation of over 90 countries in the event demonstrates World Food India 2024’s role as a vibrant platform for global leaders in the food industry, academia, and research to explore emerging opportunities. “India has a vibrant and diverse food culture. The backbone of the Indian food ecosystem is the farmer,” Modi said, emphasizing the government’s efforts to support farmers through innovative policies and focused implementation.

Modi also pointed to the government’s vision of empowering micro, small, and medium enterprises (MSMEs), particularly encouraging women to become microentrepreneurs. “We want our MSMEs to flourish and become an integral part of the global value chain,” he added.

He highlighted the importance of platforms like World Food India for fostering global collaboration through exhibitions, reverse buyer-seller meets, and sector-specific sessions. Additionally, the organization of the Global Food Regulators Summit by the Food Safety and Standards Authority of India (FSSAI) is expected to bring together international regulators, including the World Health Organization (WHO) and the Food and Agriculture Organization (FAO), to discuss critical issues such as food safety, quality standards, and best practices.

Modi expressed confidence that the summit would address key topics like food irradiation to enhance safety, plant-based proteins for better nutrition, and sustainability through the circular economy. He concluded with a call to work towards building a sustainable, safe, inclusive, and nutritious world, reflecting the broader vision for India’s food sector growth.

The event, held in the run-up to the festive season, positions India as a major player in the global food industry, with a focus on reforms aimed at long-term sustainability and growth.

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