With a robust agricultural background and a number of other beneficial traits supporting its progress, the Indian meals processing trade is on the cusp of a change, and the trade may doubtlessly develop at a CAGR of 10-11 per cent to achieve $500-530 billion by FY27, in line with a report.
The report additionally acknowledged that by addressing fast challenges and specializing in optimising meals wastage, enhancing meals processing penetration and growing exports, the sector may doubtlessly double its measurement to $600-650 billion in the identical interval.
McKinsey & Firm, Information Companions of the report, identified that India has emerged as a world agricultural powerhouse and it presently is the world’s second-largest agricultural producer main within the manufacturing of cereals, pulses, fruit and veggies, sugar, and milk.
The agricultural sector not solely contributes to 19 per cent of India’s GDP, it additionally helps practically half of the inhabitants’s livelihoods. The per capita agricultural GDP, at fixed costs, grew at a CAGR of 6 per cent to ₹15,056 per 12 months between 2000-01 and 2020-21. The meals processing trade within the nation grew at a CAGR of 11 per cent between FY 15-20 to USD 300-320 billion. It carried out higher than Brazil, the US and China in 2021 when it comes to development, particularly in cereals.
Regardless of these achievements, the potential stays untapped. A higher thrust on meals processing may considerably improve farmer earnings and create 1000’s of jobs and profitable companies on its shores, it stated.
Producing demand, setting requirements
As totally different crops are grown in every State, processing in India will stay a priority.
For instance, in Maharashtra, 77 per cent of the product undergoes major processing, whereas it’s near 50 per cent in Gujarat and Andhra Pradesh. In Tamil Nadu and Madhya Pradesh, it’s 60 per cent. In practically all of the states, lower than 40 per cent of the product undergoes secondary or tertiary processing.
Moreover, the unorganised sector provides to the complexity. In reality, it dominates the environments/soils throughout the nation, producing items of variable high quality. Which means the extent of processing required for every class modifications by State.
The report has recommended some motion that trade gamers, in collaboration with the federal government and different stakeholders, may contemplate. These embody encouragement of demand-backed manufacturing, growing consciousness amongst shoppers to generate demand, bettering processing effectivity, constructing sturdy logistics infrastructure and making certain high quality and traceability requirements for exports.
August 06, 2022