CHENNAI: India has a huge potential in the food processing sector that needs to be tapped, an industry report said on Friday. According to the report on India’s food processing industry released by the Confederation of Indian Industries (CII) at FoodPro, a food processing technology exhibition, the industry saw an 11% growth between Financial Years 2015 and 2020.
“It (India) has performed better than Brazil, US and China as of 2021 in terms of growth. But there is immense potential to unlock. India processes only 30% of its total meat production compared to Brazil (50% -60%) and the US (almost 90%). In fruits, India processes 5% of its production, compared to Brazil (35-40%) and the US (about 20%),” the report reads.
Quality inconsistency, fragmented agriculture production, demand-supply mismatch, low penetration of technology, and supply chain issues like the availability of cold storage and warehousing facilities are the major barriers to the growth of the industry.
The presence of pesticide residues and lack of awareness on policy requirements for global markets impact food processing exports, the report finds.
Tamil Nadu is one of the leading exporters in the marine, rice, dairy and cereal segments, R Sakkarapani, Tamil Nadu Minister for Food and Civil Supplies, said addressing the event.