Some facts about the Opportunities in Food Processing Industry for rural areas


  • Processing of fruits and vegetables is only 2% in India in comparison to 80% in USA and Malaysia, 78% in Philippines, 70% in France and Brazil, 40% in China and 30% in Thailand.

  • The food and agro processing industry employed over 16% of total workforce in the organized manufacturing sector whereas it is 32% of the total workforce in the unorganized sector.

  • In total, the industry employs 13 million people directly and 35 million people indirectly.

  • An average Indian spends around 53% of his/her income on food.

  • There are around 300 million upper middle class consumers for value added foods.

  • Wastage of fruits, vegetables and grains in India is pegged at INR440 billion annually. Fruits and vegetables accounts for the largest portion in the wastage.

  • India is the largest producer of milk, fruits, pulses, cashew nuts, coconuts and tea in world and accounts for 10% of the world fruit production.

  • It is estimated that India would need USD 24.7 billion worth of investment to restructure the industry.

  • The sector grew at a compounded growth rate of 9% between 2008 and 2012.

  • Farmers get only 25-60% of what the consumer pays for the produce.

  • Constraints in the Growth of Food Processing Industries:


    • Long and fragmented supply chain
    • Inadequate cold storage and warehousing facilities
    • Challenges related to logistics
    • Skill gaps in the industry

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