introduction to food processing industry in india

8/12/2019 Introduction to Food Processing Industry in India

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INTRODUCTION

Food processing sector is indispensable for the overall development of an economy as it

provides a vital linkage and synergy between the agriculture and industry. It helps todiversify and commercialize farming; enhance income of farmers; create markets for

export of agro foods as well as generate greater employment opportunities.

Through the presence of such industries, a wider range of food products could be sold

and distributed to the distant locations.

The term food processing is mainly defined as a process of value addition to the

agricultural or horticultural produce by various methods like grading, sorting and

packaging. In other words, it is a techni!ue of manufacturing and preserving food

substances in an effective manner with a view to enhance their shelf life; improve !uality

as well as make them functionally more useful. It covers spectrum of products from sub"

sectors comprising agriculture, horticulture, plantation, animal husbandry and fisheries.

Food processing industry is one of the largest industry in India and is ranked #th in terms

of production, consumption and export. $arlier, food processing was largely confined to

the food preservation, packaging and transportation, which mainly involved salting,

curdling, drying, pickling, etc. %owever, over the years, with emerging new markets and

technologies, the sector has widened its scope. It has started producing many new items

like ready to eat food, beverages, processed and frozen fruit and vegetable products,

marine and meat products, etc. It also includes establishment of post harvest

infrastructure for processing of various food in terms like cold storage facilities, food

parks, packaging centers, value added centers, irradiation facilities and modernized

abattoir.



The food processing sector comprises of two segments

&rimary processed food and 'alue added food.

&rimary segment comprises of packaged fruit and vegetables, milk, flour, rice, spices etc

and constitutes around ()* in value terms of the processed foods. 'alue added segment

includes processed fruits and vegetables, +uices, +am +elly etc and holds around - *

share in the total processed food.

In an emerging country like India, where growth with e!uity is a primary policy thrust,

the optimum development of the food processing sector will contribute significantly in

tackling several developmental concerns such as disguised unemployment in agriculture,

rural poverty, food security, food inflation, improved nutrition, prevention of wastage of

food etc. /y serving as a bridge between agriculture and manufacturing and by dealing

with a basic need of all Indian citizens the assured supply of healthy and affordable food

at all locations in the country, this sector has the potential to be a ma+or driver in India0s

growth in the coming years. In fact the food processing sector has been growing faster

than the agriculture sector .The food processing industry includes a diverse group of

companies involved in the processing of products like fish, meat, milk, crops and water.

It includes millions of 1mall 2edium $nterprises 312$s4 worldwide and also some of

the largest companies in the world. 2any of these companies deliver products directly to

consumers, while others specialize in /usiness to"/usiness activities 3ingredients,

commodity markets4. 1ome companies directly participate in all areas of food

production, from farming activities through to final production and retail. 5thers are

concentrated more at the top end of the production chain or buy through commodity

markets. In fact, Food processing is one of the world0s largest industries from the

perspective of the number of companies involved in the sector, as well as in terms of its

total economic value .



The sector comprises of the following ma+or areas

Fruits & Vegetables

/everages, 6uices, 7oncentrates, &ulps, 1lices, Frozen 8ehydrated products,

9ine &otato 9afers:7hips etc.

Fisheries

Frozen 7anned products mainly in fresh form

Meat & Poultry

Frozen and packed mainly in fresh form, $gg &owder

Milk & Dairy

9hole 2ilk &owder, 1kimmed milk powder, 7ondensed milk, Ice cream, /utter

and hee

Grain and Cereals

Flour, /akeries, /iscuits, 1tarch lucose, 7ornflakes, 2alted Foods, 'ermicelli,

&asta Foods, /eer and 2alt extracts, rain based <lcohol.

Consumer Industry

7hocolates, 7onfectionery, 1oft:<erated /everages:8rinks

Plantation

Tea, coffee, cashew, cocoa, coconut e



HISTO! OF FOOD POC"SSI#G

Food processing dates back to the prehistoric ages when crude processing incorporated

slaughtering, fermenting, sun drying, preserving with salt, and various types of cooking

3such as roasting, smoking, steaming, and oven baking4. 1alt preservation was especially

common for foods that constituted warrior and sailors diets, until the introduction of

canning methods. $vidence for the existence of these methods can be found in the

writings of the ancient reek, 7haldean, $gyptian and =oman civilizations as well as

archaeological evidence from $urope, >orth and 1outh <merica and <sia. These tried

and tested processing techni!ues remained essentially the same until the advent of the

industrial revolution. $xamples of ready meals also exist from preindustrial revolution

times such as the 7ornish pastyand %aggis. 8uring ancient times and today these are

considered processing foods. Food processing has also helped create !uick, nutritious

meals to give to busy families. 2odern food processing technology in the ?@th and )Ath

century was largely developed to serve military needs. In ?A@ >icolas <ppert invented

a vacuum bottling techni!ue that would supply food for French troops, and this

contributed to the development of tinning and then canning by &eter 8urand in ??A.

<lthough initially expensive and somewhat hazardous due to the lead used in cans,

canned goods would later become a staple around the world. &asteurization, discovered by Bouis &asteurin ?(), was a significant advance in ensuring the micro biological

safety of food.

In the )Ath century, 9orld 9ar II, thes pace race and the rising consumer society in

developed countries 3including the Cnited 1tates4 contributed to the growth of food

processing with such advances as spray drying, +uice concentrates, freeze drying and the

introduction of artificial sweeteners, colouring agents, and preservatives such as sodium

benzoate. In the late )Ath century products such as dried instant soups, reconstituted fruits

and +uices, and self cooking meals such as 2=$ food ration were developed.



In 9estern $urope and >orth <merica, the second half of the )Ath century witnessed a

rise in the pursuit of convenience. Food processing companies marketed their products

especially towards middle class working wives and mothers. Frozen foods 3often

credited to 7larence /irdseye4 found their success in sales of +uice concentrates and DT'

dinnersD.&rocessors utilised the perceived value of time to appeal to the postwar

population, and this same appeal contributes to the success of convenience foods today.

History o$ Food la%s

Food laws were among the earliest of enactments known to man. overnments over

many centuries have endeavored to provide for the safety and wholesomeness of man0s

food by legal provisions and appropriate punitive action. 5ver the years also, rude forms

of fraud, such as adding worthless substances to food or extracting valuable constituents

from it, have been followed by sophisticated methods of adulteration more difficult to

detect. The birth of modern chemistry in the early nineteenth century made possible the

production of materials possessing properties similar to normal foods which, when

fraudulently used, did not readily attract the attention of the unsuspecting purchaser.

Bater, better analytical methods were used in food control work to detect adulterants.

9hen scientists demonstrated that some adulterants were dangerous to health, the

aroused public demanded laws that would both protect their health and prevent fraud.Food Baws in one form or another, such as religious tenets or prohibitions, were inherent

in all ancient civilizations and have come down to us from early times. It was not until

the late nineteenth and early twentieth century with the urbanization of societies and the

depopulation of rural areas that food laws, as understood today, were prepared. This

process was hastened by pressure that developed as the public rebelled against the

generally unhygienic conditions of the period.

1ince the end of 9orld 9ar II, there have been ma+or changes in the food industry, and

this development continues today; at the same time, our knowledge of the risks, actual

and potential, has considerably increased. =eorientation and further consolidation of food

laws have therefore become necessary to protect the health of the consumer from the

many new risks to which he has become exposed and over which he has little personal

control.



FOOD POC"SSI#G I#DST! I# I#DI'

The Indian food processing industry stands at E?-# billion and is estimated to grow with

< 7<= of ?A per cent to reach E)AA billion by )A?#. The food processing industry

contributed * to India0s 8&. The industry employs around ?- million workers directly

and about -# million indirectly . The industry is segmented into sectors namely, milk and

allied products 3dairy4, meat and poultry, seafood, bakery and confectionery, fruit and

vegetables, grain, pulses and oilseeds 3staple4 products alcoholic and non"alcoholic

products 3beverages4, and packed foods. The classification is not distinct as many

processed products overlap different segments. India ranks >o. ? in the world in

production of 2ilk 3Fresh, whole, buffalo4, &ulses, inger, 7hick &eas, /ananas uavas,

&apayas and 2angoes. Further, India ranks >o. ) in the world in production of =ic

e, 9heat, &otatoes, arlic, 7ashew >uts, roundnuts, 8ry 5nion, reen &eas,

&umpkins, ourds, and cauliflowers. 9ith the huge production base India can easily

become the leading food supplier to the world and at the same time serving its vast

growing domestic market with over a billion people.

Investments in the registered food processing units have been growing in the recent

years. In )AA"A the fixed capital of registered food processing units have increased by

?.@-* over the previous year. Food processing industry in India is increasingly seen as

a potential source for driving rural economy as it brings synergy between industry and

agriculture. < developed food processing industry is expected to lead increase in farm

gate prices translating into increased rural incomes, reduce wastages, ensure value

addition, promote crop diversification, generate employment opportunities as well as

export earnings. 9ith such a large and diversified production base coupled with low

manpower cost and modern technology, the Indian food processing sector is poised for

growth, if the advantages are leveraged optimally.The growth is driven by the fact that

the central government has given a priority status to all agro"processing businesses.

overnment incentives in the field of mega food parks, cold chain and exports benefits

are also playing an important role in promoting food processing. The ma+or challenges

are investments at different points of the supply and value chain, proper research, farm



and lab connectivity, upgradetion of technology, increase in farm holding, skill and

manpower training, backend and front"end integration and cold chain integration. The

opportunities in the food processing industry are vast. %owever, there is a need to

improve technology and productivity to be competitive globally. <s the economy grows,

the food processing industry will offer bigger opportunities to the new as well as the

existing players. India has the second largest arable land of ?(? million hectares and has

the highest acreage under irrigation. >ext to 7hina, India ranks second largest food

producer in the world and has the potential to immerge the biggest with its food and

agricultural sector. India accounts for less than ?.#* of international food trade despite

being one of the world0s ma+or food producers, which indicates huge potential for both

investors and exporters.

'd(antage o$ India

• India is one of the largest food producers in the world.

• India has diverse agro"climatic conditions and has a large and diverse raw material base

suitable for food processing companies.

• India is looking for investment in infrastructure, packaging and marketing.

• India has huge scientific and research talent pool.

• 9ell developed infrastructure and distribution network.

• =apid urbanization, increased literacy, changing life style, increased number of women

in workforce, rising per capita income leading to rapid growth and new opportunities in

food and beverages sector.

• #A per cent of household expenditure by Indians is on food items.



)ey gro%th dri(ers o$ Food Pro*essing Se*tor in India

• Increasing spending on health and nutritional foods.

• Increasing number of nuclear families and working women

• 7hanging lifestyle

• Functional foods, fresh or processed foods

• 5rganized retail and private label penetration

• 7hanging demographics and rising disposable incomes Gey opportunities in Food

&rocessing 1ector

• &rocessable varieties of crop

• 7ontract farming

• Investments in infrastructure through &ublic &rivate partnership 3&&&

• 2ega Food parks

• Bogistics and cold chain infrastructure

• Food safety 2anagement 1ystems

• 2achinery and packaging



Challenges $a*ed by the industry

%igh level of wastage of agricultural produces is primarily on account of the inherent

disadvantages faced by the sector. This sector is characterized by preponderance of small

farmers, small scale tiny processors, outdated technology, poor infrastructure and a

maze of middle men. Therefore, this sector needs support in terms of creation and

strengthening of infrastructure which individual farmers and processors will not be in a

position to create and sustain. Further, there is also a need for strengthening =8

activities in food processing sector for innovation of technology which suits local needs,

popularization of appropriate technology, skill development and creation of <>

institutional framework supportive of the industry.



PO++TIO# FOM FOOD POC"SSI#G F'CTOI"S

The food industry is now facing increasing pressure to ensure that their companys activities

are environmentally sensitive, but there is also increased internal pressure to maintain or

increase profitability in the face of fierce competition. The food"processing industry has

special concerns about the health and safety of the consumer. Gey resources used by the

food"processing industry include the water, raw materials and energy. Traditionally, the food"

processing industry has been a large water user. 9ater is used as an ingredient, an initial and

intermediate cleaning source, an efficient transportation conveyor of raw materials, and the

principal agent used in sanitizing plant machinery and areas. <lthough water use will always

be a part of the food"processing industry, it has become the principal target for pollution

prevention, source reduction practices. The key environmental issues for the food industry

include the followingH

,aste%ater- &rimary issues of concern are biochemical oxygen demand 3/584; total

suspended solids 3T114; excessive nutrient loading, namely nitrogen and phosphorus

compounds; pathogenic organisms, which are a result of animal processing; and residual

chlorine and pesticide levels.

Solid ,aste- &rimary issues of concern include both organic and packaging waste. 5rganic

waste, that is, the rinds, seeds, skin, and bones from raw materials, results from processing

operations. Inorganic wastes typically include excessive packaging items that are, plastic,

glass, and metal. 5rganic wastes are finding ever"increasing markets for resale, and

companies are slowly switching to more biodegradable and recyclable products for

packaging. $xcessive packaging has been reduced and recyclable products such asaluminum, glass, and high"density polyethylene 3%8&$4 are being used where applicable.

The food processing factories should follow the ma+or technological innovations in the

industry, including those in clean technologies and processes.



7lean technologies includeH

<. 'd(an*ed ,aste%ater Treatment Pra*ti*es- Cse of wastewater technologies beyond

conventional secondary treatment.

/. Im.ro(ed Pa*kaging- Cse of less excessive and more environmentally friendly

packaging products.

7. Im.ro(ed Sensors and Pro*ess Control- Cse of advanced techni!ues to control specific

portions of the manufacturing process to reduce wastes and increase productivity.

8. Food Irradiation- Cse of radiation to kill pathogenic microorganisms.

$. ,ater and ,aste%ater edu*tion /Closed +oo.01ero "mission Systems2-

=eduction or total elimination of effluent from the manufacturing process

Fa*tors '$$e*ting Food Pro*essing Industry in India

The vision ")A?# prepared by the 2inistry of Food &rocessing Industries, overnment of

India, envisages to increase processing level of perishables from ( to )A percent ,increase value addition from )A to - percent and increase share in global trade from ?.(

percent to - percent, thus tripling the size of processing food industry by )A?#. 3=eport

of the Task Force, )AA4. %owever, before this can be achieved a number of constraints

must be removed. In Table , ma+or factors affecting beginning from production to

distribution in the value chain are presented. These factors directly: indirectly affect the

Indian processing industry



2a+or constraints for the growth of the Indian food processing industry include the

absence of ade!uate infrastructure, particularly rural road connectivity, inade!uacy of

information and marketing linkages, lack of electricity supply, and the absence of cold

chain systems. The cold chain capacity caters to less than ?A percent of the produce and

within that facilities are so rudi"mentary that over A percent are only capable of handling

potatoes.

2aintaining the standards of !uality is another ma+or constraint and there are two aspects

to it. First, there is poor infrastructure for storing raw food materials. The two main types

of storages J the %arehouses and the *old storages, lag in storage standards. The pests

infest the grains sometimes due to lack of moni"toring, proper use of pesticides and

proper ventilation. 1imilarly, the power outages result in suboptimal function of the cold

storages and the !uality of food material in the cold storages becomes !uestionable. The

second important aspect is having poor !uality standards and control methods for

implementing the !uality standards for processing and packaging the processed

foods. For example, vegetables may not be washed properly and processed into either

0ready to eat foodK or packaged as 0cut and ready to cookK vegetables. %igh costs and low

availability of credit remain a problem because even within the priority sector, lending

by banks for agriculture, food processing receives only .# per cent of the ear marked

credit. The regulatory framework preventing farmers from directly marketing their

produce, except through designated agricultural markets adds to cost and impairs

flexibility. &ackaging is usually poor but its cost is high and become unbearable for

small producers. <nother important constraint is the legal framework" currently;

food laws span nine ministries, comprising ?- central orders alone. In addition, states

have their own control orders.



Harm$ul Chemi*als in our "n(ironment

O(er the .ast *entury humans ha(e introdu*ed a large number o$

*hemi*al substan*es into the en(ironment- 1ome are the was te f rom

i ndus tr ia l and agr icul tu ra l p rocess es . 1ome have been des igned a s

s t ructural mater ials and others have been des igned to perform var ious

functions such as healing the sick or ki l l ing pests and weeds. 5bviously

some chemicals a re useful but many are toxic and thei r harm to the

environment and our heal th far outweighs thei r benef i t to society. 9e

need to manage the r isks better by only using chemicals , which are safe.

7hemicals enter ai r as emiss ions and water as ef f luent . Indus t r ial and

motor vehicle emissions of ni trogen and sulphur oxides cause acid rain,

which poisons f i sh and other a!uat ic organisms in r ivers and lakes and

affects the abi l i ty of soi l to suppor t plants . 7arbon dioxide causes the

greenhouse effect and cl imate change. 7hlorofluorocarbons 37F7s4 cause

the destruction of ozone in the stratosphere and create the possibi l i ty of

serious envi ronmenta l damage f rom ul tr avio le t r adiat ion . 7hemical

fer ti l i sers and nutrients run"off f rom farms and gardens cause the bui ld

up o f t ox ic a lgae i n r iver s, mak ing t hem uni nhab it ab le t o a!uat ic

organisms and unpleasant for humans . 1ome toxic chemicals f ind thei r

way from landfi l l waste s i tes into our groundwater , r ivers and oceans and

induce genet ic changes that compromise the abi l i ty of l i fe to reproduce

and survive.

The impact of human activi t ies on the environment is complex and affects

a chain of interconnecting ecosystems. The extinction of species al l along

the chain may mean the los s of usefu l genet i c mater i a l or l i f e saving

cancer drugs or safer al ternatives to the dangerous chemicals in use at the

moment.



,hat $a*tories should do to .re(ent .ollution

Cse biodegradable products . 2ake your own cleaning agent us ing safe

materials. 8ispose of chemical w aste carefully. 8o not put them down the

s ink . /e wise wi th home maintenance and in the garden. 8o not burn

plast ics.

<void al l organic chemicals that have DchloroD as par t of thei r names

including wood preservatives, herbicides and insecticides. <void chlorine

bleach 3sodium hypochlorite4 and products containing it . Cse oxygen

bleach instead. Cse unbleached paper products .<void D&ermethrinD f lea

s pr ays f or pet s. <vo id p roduct s made o f o r packaged i n pol yv inyl

chlor ide 3&'74. <void cl ing f l im plas t ic wraps unless they are clear ly

identi f ied as non"chlorinated plast ic .To minimise your r i sk of dioxins

accumulat ing in your body avoid a ll fu ll "f a t da iry product s and fa tty

meat s such as beef or pork . 9ash a l l f ru i t s and vegetables to r emove

chlorophenol pest icide residue. <void grapes and raisins unless they are

c lear ly l abe l led as organica lly grown. <void soaps , toothpaste and

deodorants containing Dtr iclosan,D a chlorophenol.

9 e c an r ed uc e th e d io xin s i f w e s to p p ro du ci ng & '7 s a nd o th er

chlor inated chemicals . I f your local government sends i t s was te to an

incinera tor , r e!uest tha t they s top burning p las ti cs and in troduce a

comprehensive recycling service. 9rite to companies and ask them to use

safe subs t itu tes to chlor ina ted p las ti cs. <sk your supermarket to se ll

Total ly 7hlorine Free 3T7F4 products . 6oin or form a local environmental

group campaigning against hazardous chemicals .

&eople who work with cadmium should take care not to inhale cadmium"

containing dus t and should avoid carrying i t home f rom work on thei r

clothes, skin or hair . $at from a wide range of foods to prevent the r isk of

ingest ing toxic levels of cadmium



G"#"'+ ,'ST" "DCTIO# TIPS '#D PO++TIO#

P"V"#TIO# 'CTIVITI"S

7ommercial and institutional food"related facilities can save money and protect the

environment by reducing waste and practicing pollution prevention. Facilities that may

benefit from this information are restaurants, supermarkets, produce and concession

stands, school cafeterias, hospitals, food processors, farmers, hotels, prisons, employee

lunch rooms, parks and recreational facilities, and community events. 8iscretion should

be used in determining the use of the contents of this document and compliance with

local ordinances.

9hile there are many opportunities for reducing waste and preventing pollution, a few

tried and true methods are presented here. Geep in mind that any waste or pollution

created by your facility cuts into profits, reduces operation efficiency, may involve

worker safety issues, and could re!uire regulatory involvement. &ollution prevention and

waste reduction efforts can increase business profitability.

<s you implement pollution prevention ideas, you and your employees will identify moreideas. Lour success is only limited by your willingness to try something different J and

the payoff could be immense. =emember, participating in a pollution prevention program

can create an improved public image for your business.

• The Plan

o $stablish a company"wide commitment to preventing pollution as part of

doing business. 8evelop employee education programs on pollution

prevention. $mployee participation is the key to success; make pollution

prevention a way of life. $nsure that all employees understand the

program.

o %ang eye"catching posters and other promotional material to stimulate

interest in the program. Institute an incentive program, giving awards or



recognition to employees for their waste reduction:pollution prevention

efforts.

o $stablish a task force headed by an enthusiastic pollution prevention

advocate.

o 8evelop a budget, making sure that needed resources will be available.

o $stablish a pollution prevention hierarchy for your company. Typically,

source reduction is the highest priority, followed by reuse and recycling.

o 8esign a management strategy to reduce waste, prioritize waste reduction

options, and then develop an implementation schedule.

o 8evelop goals with measurable ob+ectives.

o Identify when and where waste is generated.

• "nergy and ,ater se

o 7onduct an energy audit to help determine ways to conserve energy and

cut energy expenditures. The following may reduce energy consumptionH

install energy" efficient light bulbs; install motion"sensitive lights; turn off

lights at the end of the evening; turn off machines not in use; install

programmable, mercury"free thermostats; and replace outdated e!uipment

and appliances with more energy"efficient models.

o 7onduct a water audit to determine if water use may be reduced and leaks

minimized. =egularly check water faucets and other outlets to reduce the

amount of water used at your facility. The following may reduce water

consumptionH repair or replace leaky water faucets, turn off water faucets

and hoses when not in use, install low"volume toilets, install low"flow

faucets, and serve water to guests who re!uest it rather than as a standard

service. Bimiting water service will also reduce the number of glasses

that need to be washed.



o To reduce costs of lawn care, water lightly and fre!uently to reduce the

potential for disease and insect damage. 2ichigan grasses re!uire only A.#

to ?.# inches of water per week. < ?#")A minute daily watering during dry

weather is usually sufficient.

Solid ,aste

Identify and prioritize problem wastes; evaluate reduction potentials.

Identify your target materials. Identify waste characteristics, including !uantities of each material and

how they are handled and disposed.

&rocure recycled and recyclable products instead of items composed of

nonrecycled materials.

9ork with suppliers to reduce packaging, thereby reducing disposal costs.

<sk suppliers to provide you with products that are packaged in materials

such as recyclable or reusable paper, glass, steel, aluminum, or plastic.

=eplace beverage bottles and cans. 2ost beer and soft drinks can be

served on tap, reducing both the costs of buying beverages and disposing

or recycling cans and bottles.

Food service establishments that use disposable items such as napkins,

utensils, placemats, cups, trays, and single"serving condiment packages

can reduce waste volume by switching to reusable items.

1eparate newspaper, office paper, tin and bimetal cans, glass, plastics

3high"density polyethylene"%8&$, polyethylene terephthalate"&$T4,

corrugated cardboard, wooden pallets, aluminum, kitchen grease, food

waste, and other recyclables from solid waste and implement a recycling

program. Cse color"coded collection bins in the kitchen and bar for easy

identification.



7heck with container suppliers to determine if they participate in a recycle

program for polystyrene.

7heck with your waste hauler and ask what types of recycling services are

available. Book for haulers who are flexible and willing to work with you

to design a recycling program based on your needs. <sk your waste hauler

for advice about keeping recyclables and wet waste separate.

=esearch the feasibility of investing in a mini"cardboard baler, can

crusher, and glass pulverizer. This e!uipment will allow for efficient

management of space and may increase the likelihood of favorable

recycling service contracts.

Bet your patrons know that you recycle. If your establishment is self"

serve, post signs letting customers know that you are recycling and what

they should do with their bottles and cans. $ither put out a bin for these

items or have customers leave them on a designated counter for collection

by your staff.

/e sure that your grounds crew knows to keep yard waste separate from

other waste so that the yard waste may be recycled as compost.

Ha3ardous ,aste

Institute a hazardous waste collection program. 2any commercial

cleaning products contain hazardous materials such as caustics or strong

acids. >ever pour hazardous wastes down the drain. >ever mix different

wastes. If possible, consider using alternative materials. Book for Mnon"

toxic,N Mnon"petroleum based,N Mfree of ammonia, phosphates, dye or

perfume,N or Mreadily biodegradableN on the label. <void chlorinated

compounds, petroleum distillates, phenols, and formaldehyde.



&hosphate is an a!uatic plant nutrient that can cause excessive growth of

a!uatic algae and water !uality problems after the detergent is washed

down the drain. <sk your supplier about the many phosphate"free,

biodegradable detergents on the market. =efer to &art -@ of &ublic <ct #?

of ?@@, as amended, for additional information regarding cleaning

chemicals.

Integrated &est 2anagement 3I&24 programs combine chemical, cultural,

and biological practices into one program to manage pest populations.

I&2 principles incorporate preventive practices, remedial practices, and

economic thresholds, thus reducing the amount of chemicals used by

applying pesticides only when necessary and at the minimum effective

rate. Cse less" soluble, less"leachable, less"persistent, and less"toxic

pesticides whenever possible.

&ractice good housekeeping to reduce pest populations and the need for

chemical controls. Geep doors shut when not in use; place weather

stripping on doors; caulk and seal openings in walls; install or repair

screens; install air curtains; keep vegetation, shrubs, and wood mulch at

least one foot away from structures. 1tore food and waste in tightly sealed

containers that are inaccessible to pests.

Cse compost and:or mulching as an alternative to lawn fertilizers or use

fertilizers sparingly. 5ver fertilizing can actually encourage certain insects

and diseases.

1tore all fertilizer and pesticide containers safely to prevent spills, and

dispose of the empty containers properly. >ever store these products with

food products.



Food ,aste

Cse a Mfirst"in, first"outN inventory policy for raw materials to preventthem from exceeding their shelf life. =otate perishable stock at every

delivery to minimize waste. 1trict inventory control is the most effective

and cost efficient way to prevent usable materials from needlessly

becoming waste. Improperly stored, labeled, or outdated food becomes

waste.

/uy in bulk to reduce container waste, but avoid buying too much of a

product that might spoil. /uy locally to minimize transportation costs and

to increase local economy.

1tore raw vegetables in appropriate reusable containers to prevent

dehydration and spoilage.

Food discard recovery methods include making donations, processing into

animal feed, rendering, and composting.

8onate non"perishable and unspoiled perishable nutritious foods to food

banks, soup kitchens, food pantries, charities, and shelters. Bocal and

national programs fre!uently offer free pick"up and provide reusable

containers to donors. Bocal charities, the 2ichigan Family Independence

<gency, and local chapters of national charities can provide information

on food donation.

=ecover food discards as animal feed for operations such as hog farmers.

Farmers may provide storage containers and free or low"cost pick"up

service. 7offee grounds and foods with high salt content are not usually

accepted as they can be harmful to livestock. 1tate veterinarians can

provide information on diversion to animal feed.

=ecycle or package for reuse any used cooking oil, grease, and meat fat.

1tore in tallow bins or sealed containers.

7ollect and send used grease to a renderer. /y avoiding disposal of

kitchen grease down the drain, you will minimize clogging of pipes, use of



toxic chemicals used to clear drains, and unnecessary discharge to your

sewer system resulting in wastewater treatment upsets. Bi!uefied fats and

solid meat products can be used as raw materials in the rendering industry,

which converts them into animal food, cosmetics, soap, and other

products. Find an industry that will provide storage barrels and free pick"

up service. Bocal chambers of commerce, county agricultural extension

agencies, commercial food suppliers, or the telephone book 3under tallow

or rendering companies4 can provide information on area rendering

companies.

Inspect and clean grease traps and grease interceptors often enough to

prevent clogs, spills, and overflows. >ever pour grease, oil, or large

!uantities of oil li!uids such as sauces or salad dressings down a sink,

floor drain, storm drain, or into a dumpster.

Cse composting diversion to reduce your waste hauling and tipping costs.

Book for a composting facility in your area that will take your food

discards. 7omposting is the controlled, natural breakdown or degradation

of organic material by microorganisms. 2ost organic materials are

acceptable for composting, including egg shells, coffee grounds, paper,

shredded brush, nonpesticide"treated grass clippings, fruit and vegetable

scraps, garden waste, fireplace ashes, and leaves. Food scraps provide

most of the nitrogen for composting. 5rganic materials that should not be

composted include meat or bones; fatty foods such as cheese, oil and

grease; diseased plants; plants treated with weed killer; and pet waste.



Storm%ater

8evelop a stormwater pollution prevention policy that is readily availablefor use by management, employees, and contractors. 2ake sure that all

concerned are aware of your M8onKt pollute, drains to the surface waterN

policy.

Lou may be polluting the stormwater if you rinse washwater down a storm

drain, spill materials or wastes in your parking lot without cleaning them

up, or allow materials or wastes stored outside to leak. &revent these

activities from occurring and stencil storm drains M8ump no waste"drains

to riverN 3lake, stream, etc4.

8umpsters used for garbage should be protected from rainwater, and

loading docks should be kept clean to avoid unwanted substances from

entering storm drains.

1ome helpful hints for dumpster maintenance include keeping the

dumpster lid closed to keep out rainwater, replacing damaged or missing

lids as soon as possible, never placing li!uid waste or leaky garbage bags

into a dumpster, keeping dumpsters or the dumpster enclosure locked to

prevent illegal dumping, not hosing out the dumpster interior, applying

absorbent over any fluids spilled in the dumpster, and sweeping up litter.

Beaking dumpsters should be replaced by the dumpster leasing company.

1ome helpful hints for loading dock maintenance include keeping litter

from accumulating around the dock by providing trash receptacles,

sweeping up litter, and not hosing down the area.



GOV"#M"#T I#ITI'TIV"S FO TH" FOOD POC"SSI#G

S"CTO

In order to ensure that the Food processing sector gets the stimulus it deserves,

Ministry of Food Processing Industries (MOFPI) has been implementing a number

of schemes for Infrastructure development, technology up-gradation &

moderniation, human resources development and !&"# $he follo%ing schemes

are currently under implementation

A. Scheme for Infrastructure Development

One of the ma'or factors hindering the progress of agrofood processing in the

country is inadeuate infrastructure# In order to address the problems of

infrastructural constraints in the food-processing sector, the Ministry of Food

Processing Industries has been implementing a *cheme for Infrastructure

"evelopment since ++th Plan %hich includes the follo%ing components

o Mega Food Par - $he *cheme of Mega Food Pars (MFP) aims at providing amechanism to bring together farmers, processors and retailers and lin

agricultural production to the maret so as to ensure maimiing value

addition, minimiing %astages, increasing farmers. income and creating

employment opportunities in rural areas# Mega Food Par envisages a %ell-

defined agrihorticultural-processing one containing state-of-the-art

processing facilities %ith support infrastructure and %ell-established supply

chain#

o /old chain, 0alue addition and preservation infrastructure 1 $he scheme %as

launched during ++th Plan to provide integrated and complete cold chain and

preservation infrastructure facilities, %ithout any brea, from the farm gate to

the consumer# 2nder the scheme the Ministry of Food Processing Industries



etends financial assistance to pro'ect proposals received from public private

organiations for integrated cold chain infrastructure development# Pre-cooling

facilities at production sites, reefer vans, and mobile cooling units has been

covered under the Integrated /old /hain pro'ects# /overs 3orticulture

produces apart from non-horticultural products such as meat &, fish, dairy etc#

0alue addition /enters including processing multi-line processing collection

centers, etc# for horticulture including organic produce, marine, dairy, meat

and poultry, etc# are included under the scheme

o Moderniation of 4battoirs - 3ygienic and scientific slaughtering and

optimum utiliation of by-products are the most important issues in the Indian

meat industry# 5uality and hygiene levels in the %et maret are lo% due to

imperfect bleeding, primitive and crude slaughtering and defeathering

techniues, lac of infrastructure facilities lie %ater, electricity and facilities

for handing carcass flaying, cross contamination in slaughter and improper

handling during carriage# 4ll these result in tremendous %aste of meat,

contamination deterioration of meat and also avoidable cruelty to the animals

during the %hole process# $he ualitative and uantitative capacities of the

abattoirs need to be upgraded and these are reuired to be lined %ithcommercial processing of meat, both for domestic consumption and eports

besides discouraging unauthoried slaughtering# 4ccordingly, a plan scheme for

establishing ne% abattoirs & moderniation of the old abattoirs %as started in

6778#



B .S*heme $or Te*hnology .gradation4 "stablishment and

Modernisation o$ Food Pro*essing Industries

9overnment has been implementing a *cheme for technology upgradation

establishment epansion moderniation of Food Processing Industries %ith a

vie% to create demonstrative effect on potential entrepreneurs# $he main

ob'ective of the scheme is to promote latest technology in the preservation of

perishable commodities including processing of horticultural produce through

setting up of ne% food processing units as %ell as technological upgradation

and epansion of eisting units# 2nder the scheme, assistance have been

availed by entrepreneurs for moderniation and setting up of processing units

for fruits & vegetables, meat, mil, fish, grain (oil mill: !ice, pulse & flourmilling) alcoholic beverages, consumer products (including baery units) etc#

$he scheme envisages financial assistance in form of grants-in-aid to

entrepreneurs ; 6<= of the cost of Plant & Machinery and $echnical /ivil >ors

sub'ect to a maimum of !s# <7 lah in general areas and ??#??= in difficult

areas sub'ect to maimum of !s# @< lah# In order to ensure %ider coverage for

food processing industries and decentralise the procedures for appraisal, grant

of assistance & monitoring, the implementation of the scheme %as

decentralised in the ++th Plan period %ith effect from 7+st 4pril, 7@ through

the participation of bansfinancial institutions# Further, in order to transfer

funds to the beneficiaries and to generate an MI* relating to the scheme, an

online interface e-portal designed and maintained by 3"F/ Aan has been put

in place# $his initiative is also aimed at bringing the services of the

9overnment closer to the citiens and increasing the reach and the availability

of assistance to larger sections of society# $he decentralisation of the

disbursement procedure has speeded up the disposal of cases, facilitate better

monitoring of implementation and improved the viability of food processing

units# "uring ++th plan, ?6?8 units %ere assisted under the scheme#



C -S*heme $or Human esour*es De(elo.ment

"eveloping an entrepreneurial base %ith a variety of sills in the area of

production, pacaging and mareting is the ey to rapid gro%th of foodprocessing industries in India# It is epected that the demand for trained

manpo%er including entrepreneurs, managers, technologists, silled %orers to

cater to the gro%ing needs of the food processing industry %ill surge# Aesides

handling of latest technology and ne% %ays of management & mareting in

food sector %ould necessitate silled manpo%er not only to cater the domestic

maret but also to enable the sector to face global competition# $o augment

the supply of trained manpo%erpersonnel at all levels such as entrepreneurs,

managers, sales persons, floor %orers etc#, the Ministry has been

implementing a *cheme for 3uman !esource "evelopment in Food Processing

Industries since the 8th Five year plan period# $he *cheme has the follo%ing

components

o /reation of Infrastructure Facilities in academic institutions 1

$he ob'ective of this component is to strengthen capacity of academic

institutions in terms of infrastructural facilities to enable these institutions to

upgrade sills of personnel through training programme# 2nder this component,

/entral*tate 9overnments academic institutions, recognied /olleges

2niversities, $echnical Institutions are eligible for financial assistance up to

!s#@<#77 Bah (released in t%o eual instalments) for purchase of laboratory

euipments, pilot plants for augmentation of infrastructure facilities and

technical boos & 'ournals etc# for running Post 9raduate "egree "iplomacourses in the food processing sector#



o Cntrepreneurship "evelopment Program (C"P) 1

$he Ministry has been providing Financial 4ssistance for conducting

Cntrepreneurship "evelopment Program (C"P) in food processing through

/entral*tate 9overnments Organiations, ! & " Institutes, 2niversities, *D4s

and D9Os# $he ob'ective of C"P is to enable trainees to establish commercially

viable enterprises in food processing sector by providing them basic no%ledge

of technology, pro'ect formulation, management, instilling confidence and

motivating them to 'oin the sector as an entrepreneur# $he prospective

entrepreneur are also made a%are of the opportunities, supported for availing

credit facilities from organiations# Cach group of trainees consist of not be

less than 6< %ith adeuate representation from the */*$%omen & minority

communities# Maimum financial assistance of !s# 6#77 lah per C"P is provided

to the institutions# $he duration of the C"P is E %ees %ith a follo%-up phase

of +6 months#

o Food Processing $raining /entres (FP$/) 1

$he *cheme of setting up of Food Processing $raining /entres (FP$/) is aimed

at creating a base of rural entrepreneurs, transfer of technology for processing

of food products by utiliing locally gro%n ra% materials and providing hands

on eperience. at production-cum-training centers# Persons belonging to

*/*$OA/ and %omen are accorded priority in coverage# FP$/s are sanctioned

preferably in those clusters %hich have been selected for C"Ps# 2nder the

*cheme, /entral *tate 9overnment Organiations, Cducational and $raining

Institutions, I$Is, D9Os and /o-operatives are eligible for grant to the tune of

!s# G#77 lah for purchase of plant and machinery and !s# 6#77 lah as

revolving seed capital for setting up of single product line FP$/# For multi

product line, the Ministry provides grant-in-aid of !s# ++#77 lah for purchase of

plant and machinery and !s# G#77 lah for seed capital assistance#



"#VIOM"#T'+ +',S I# FOOD POC"SSI#G I#DST!

Cnvironmental la% is a comple and interlocing body of statutes, common

la%, treaties, conventions, regulations and policies %hich, very broadly,

operate to regulate the interaction of humanity and the rest of the biophysical

or natural environment, to%ard the purpose of reducing or minimiing the

impacts of human activity, both on the natural environment for its o%n sae,

and on humanity itself# $he Indian constitution is amongst the fe% in the %orld

that contains specific provisions on environment protection# In the /onstitution

of India it is clearly stated that it is the duty of the state to protect and

improve the environment and to safeguard the forests and %ildlife of the

country#

$he Ministry of Cnvironment and Forests and the pollution control boards (/P/A

i#e#/entral Pollution /ontrol Aoard and *P/As i#e# *tate Pollution /ontrol

Aoards) together form the regulatory and administrative core of the sector#

I -The "n(ironment /Prote*tion2 '*t4 5678

$his 4ct is an umbrella legislation designed to provide a frame%or for the

coordination of central and state authorities established under the >ater

(Prevention and /ontrol) 4ct, +8@G and 4ir (Prevention and /ontrol) 4ct, +8H+#

2nder this 4ct, the central government is empo%ered to tae measures

necessary to protect and improve the uality of the environment by setting

standards for emissions and discharges: regulating the location of industries:

management of haardous %astes, and protection of public health and %elfare#

*everal notifications have been issued by the /entral 9overnment under this

4ct for protection of ecologically-sensitive areas or issues guidelines for

matters under the 4ct# *ome of the important notifications issued under the

Cnvironment Protection 4ct, +8HE are



'- Coastal egulation 1one #oti$i*ation /9:55 24

%hich regulates activities along coastal stretches# It replaced the earlier

/oastal !egulation one (/!) notification of +88+# It has provided clear

procedures for obtaining /! approval %ith time-lines have been stipulated

along %ith post-clearance monitoring and enforcement mechanism# >ater area

up to +6 nautical miles in the sea and the entire %ater area of a tidal %ater

body such as cree, river, estuary etc#, %ould no% be included in the /!

areas, %ithout imposing any restrictions of fishing activities#

B. Island Protection Zone Notification 2011

for environmental management of the islands of 4ndaman and Dicobar and

Bashad%eep#

C. nvironmental Impact Assessment Notification!200"

(in super session of the notification *#O# E7 (C) dated the 6@ th January, +88G#

$his notification is under sub-rule (?) of !ule < of the Cnvironment (Protection)!ules, +8HE for imposing certain restrictions and prohibitions on ne% pro'ects

or activities, or on the epansion or moderniation of eisting pro'ects or

activities based on their potential environmental impacts# !ule < of the

Cnvironment (Protection) !ules, +8HE deals %ith Prohibitions and restrictions

on the location of industries and the carrying on processes and operations in

different areas#



II. #a$ardous %aste &'ana(ement and #andlin() *ules+ 1,-,

$his !ules provide the procedure to control the generation, collection,

treatment, import, storage, and handling of haardous %astes# 2nder this !ule,

any 2nit that generates, collects, treats, imports, stores or handles haardous%astes should obtain authoriation, maintain necessary records and submit

returns#

III- The Manu$a*ture4 se4 Im.ort4 ";.ort4 and Storage o$ ha3ardous Mi*ro<

organisms0 Geneti*ally "ngineered Organisms or Cells ules4 5676

$his !ule %as introduced %ith a vie% to protect the environment, nature, and

health, in connection %ith the application of gene technology and

microorganisms# 4ny person dealing %ith Micro-organisms, 9enetically

Cngineered Organisms or /ells should obtain permission from the "epartment

of Aio-$echnology#

IV- The "n(ironment /Siting $or Industrial Pro=e*ts2 ules4 5666

$his rule lays do%n detailed provisions relating to areas to be avoided for siting

of industries, precautionary measures to be taen for site selecting as also the

aspects of environmental protection %hich should have been incorporated

during the implementation of the industrial development pro'ects#

V-The >iologi*al Di(ersity '*t4 9::9

$his 4ct provides for the conservation of biological diversity, sustainable use of

its components, and fair and euitable sharing of the benefits arising out of the

use of biological resources and no%ledge associated %ith it#

VI-The Indian Fisheries '*t4 576?

$his 4ct establishes t%o sets of penal offences %hereby the government can

sue any person %ho uses dynamite or other eplosive substance in any %ay



(%hether coastal or inland) %ith intent to catch or destroy any fish or

poisonous fish in order to ill#

VII-The ,ater /Pre(ention and Control o$ Pollution2 Cess '*t4 56??

$his 4ct provides for the levy and collection of cess or fees on %ater consuming

industries and local authorities#

VIII-The 'ir /Pre(ention and Control o$ Pollution2 '*t4 5675

$he 4ct provides means for the control and abatement of air pollution# $he 4ct

sees to combat air pollution by prohibiting the use of polluting fuels and

substances, as %ell as by regulating appliances that give rise to air pollution#

2nder the 4ct establishment or operation of any industrial plant reuires

consent from state pollution control boards# $he pollution control boards are

also epected to test the air in air pollution control areas, inspect pollution

control euipment, and manufacturing processes# $o counter the problems

associated %ith air pollution, ambient air uality standards %ere established,

under the 4ct#

I@-The Indian Forest '*t4 569?

It is one of the many surviving colonial statutes# It %as enacted to consolidate

the la% related to forest, the transit of forest produce, and the duty leviable

on timber and other forest produce.#

@- Forest /Conser(ation2 '*t4 567: and Forest /Conser(ation2 ules4 5675

It provides for the protection of and conservation of forests# $he 4ct restricts

the po%ers of the state in respect of de-reservation of forests and use of

forestland for non-forest purposes (the term non-forest purpose. includes

clearing any forestland for cultivation of cash crops, plantation crops,

horticulture or any purpose other than re-afforestation)#



Recommendations

9hilst, the overnment initiatives aimed to bring about regulatory reforms and

infrastructure development in agriculture marketing and private sector investment in

infrastructure creation have created the much desired vibrancy in the sector in recent

times, however, there is a paramount need to take big ticket measures to catapult the

growth of food processing sector and take it to the high growth tra+ectory.

1ome of the measures that could be taken to spur the growth of the sector are as followsH

O(er*oming long & $ragmented su..ly *hainA

To overcome the long and fragmented supply chain, contract farming can emerge as a

significant opportunity for companies whereby they can create direct farm linkages to

source appropriate !uality, !uantity and varieties of inputs. 7urrently, contract farming is

supported by the governments of few key producing states in India. < few companies

have been successful in linking up with farmers, and some models of contract farming

based on profit sharing or social investment may emerge in the future.

Pro(iding im.etus to logisti*s & su..ly *hain se*torA

?. 8edicated freight corridors in rail supplemented by concretized dual carriageways for

the 1tate >ational highways, will directly reduce the cost of goods supplied.

). There is a need to develop a single entity of all multi"modal transportation, instead of

splitting into rail, surface and air as separate 2inistries entities. This entity needs to

remain customer industry centric rather than as the overnmental control mechanism.

-. 1upport to private rail operators by providing access to infrastructure of Indian

railways at concessional rates; tax holidays for purchase of wagons and creation of

infrastructure, especially that of rail terminals for cargo consolidation and aggregation.

. &rovide further incentives to FT9Os, one of the ma+or drivers of warehousing

business.



#. The overnment should provide industry status to this sector and formulate a separate

2inistry for 1upply 7hain Bogistics sector.

(. 1upport development of organized strategic logistics hubs by helping in land

ac!uisition and by providing tax incentives: tax holidays.

. Tax incentives to 2ulti modal Bogistical 7entres which also have

manufacturing:exporting capabilities.

. Incentivize -&B operators in setting up end"to"end logistics and warehousing set"up.

@. Incentives for setting up warehousing:cold storage infrastructure and customized

transportation network development.

P Formulation o$ Com.rehensi(e #ational +e(el .oli*y on Food Pro*essing

The comprehensive policy will ensure private sector investment in infrastructure

development, increased farm productivity and up gradation of !uality and give further

impetus to the food processing sector. The comprehensive national level food processing

policy would also ensure institutional strengthening , capacity building across the value

chain and would also seek to promote innovation in general and technological innovation

in particular.

P #eed $or Se*ond Green e(olution in 'gri*ulture

The first reen =evolution has run its course. 7ereal yields are rising very slowly, water

tables are plunging, and agricultural growth is also low. India needs a second reen

=evolution in India which takes rice and wheat cultivators beyond the grain production

stage to agro"food processing and gives value addition and would also solve the issue of

constraints in raw material procurement. This high end initiative re!uires commitment

from all the stakeholders in the food value chain.

P Inter Ministerial ,orking Grou. to 'ddress the Issues

The overnment should set up Inter 2inisterial 9orking roup 3I294 under the

leadership of 2inistry of Food &rocessing to look at comprehensively addressing various

issues that are holding this sector back.



.

P ndertake a..ro.riate measures to address the skill Ga. Issue in the se*torA

a4 The government should allocate separate budget for human resource development for

food processing sector for enhancing and up gradation of the skills and implementation of

the various schemes for skill development. <ll the skills development cells and other

organizations and ministries should work in tandem for effective implementation of the

ob+ectives set.

b4 There is a need for immediate adoption of ITIKs by the food processing industry in

various clusters across the country to upgrade the lower end skills. The candidates after

training couldbe directly employed by the industry; this model is already prevalent in

some parts of the country at a small scale, but now it needs a big push from the industry.

P Promote agri<$ood .arks by in(ol(ing industry .arti*i.ation $or better $un*tioning

o$ these .arks-

P Make *on*erted e$$orts to enhan*e .ri(ate se*tor in(estment in in$rastru*ture

de(elo.ment4 in*reasing $arm .rodu*ti(ity and u. gradation o$ Buality-

P 'll Industry in*enti(es under single %indo% *learan*e-



CO#C+SIO#

The Indian food industry presents a very large opportunity to every stakeholder. This is

primarily driven by a robust consumer demand, the changing nature of the Indian

consumer, who is more informed and willing to try new products; and the strong

production base of the country. >eedless to add, the several gaps in the current

production and delivery systems actually present a huge opportunity for the growth of

companies willing to bet long term in this sector.

%owever, the growth of food processing companies has been sub"optimal because of high

cost, low level of productivity, high wastage and lack of competitiveness of Indian food

products in the global market. Therefore, to fully leverage the growth potential of the

sector, current challenges that are being faced by the industry need to be properly

addressed and steps need to be taken to remove the bottlenecks hampering the sectoral

growth. FI77I survey has thus acted as a first step in identifying these challenges, thus

providing a roadmap for all the stakeholders to work on, and thus contributing in

realizing the immense potential of this industry.

introduction to food processing industry in india

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