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Processed Food Industry: Set for a leap forward

Food & Beverage Business Review

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August - September 2019

Food is essential for all living beings and livelihood of many. Food is no longer related only to agriculture and farmers. Today, processed food industry is offering opportunity to various entrepreneurs to enter this field. There is a silent revolution going on in the country. Besides the expanding middle class there is a growing aspirational class. The farm to kitchen chain, with increased agricultural production and better storage facilities will boost food processing sector. Ashok Malkani views the scenario of the food processing industry and the opportunity it offers to new entrepreneurs.

Processed Food Industry: Set for a leap forward

Agriculture is the most important section of Indian economy. It is the primary source of l ivelihood for about 58 per cent of India’s population. According to IBEF (India Brand Equity Foundation), food grain production during 2017-18 was 284.83 million tonnes and the Indian government’s target during 201819 is 285.2 million tonnes. Production of horticulture crops is estimated to be 314.7 million tonnes in 2018-19. This has enabled the food processing sector to experience a tremendous boom over the last several years.

Food processing, incidentally is the transformation of food or from one form to another; that is, from agriculture produce to ready to eat or heat and eat product. The process can vary from simple drying and freezing to complex formulat ion of a frozen meal with rightly balanced ingredients and nutrients. There are three stages of processing – Primary, Secondary and Tertiary.

Primary processing is the conversion of raw materials to food commodities. Milling is an example of primary processing.

Secondary processing involves conversion of ingredients to edible products, like baking bread.

Tertiary process is the conversion of raw materials to convenience food like canned soup, frozen dinners, etc.

Benefits of Food Processing

There are several benefits of food processing. Some of them are toxin removal; preservation, which eases marketing and distribution tasks; increasing food consistency. It also enables availability of all kinds of food throughout the year, transportation of delicate perishable goods across long distances and making the food safe for consumption by de-activating spoilage and pathogenic microorganisms. Processed foods are usually less susceptible to early spoilage than fresh foods and are better suited for long-distance transportation from the source to the consumer.

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