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An Overview
The food processing industry in India is one of the major contributors to employment and the economy. According to the Ministry of Food Processing Industries (MoFPI), the sector employs around 1.93 million people, accounting for 12.38% of employment in the registered factory sector. Additionally, the unregistered food processing sector provides employment opportunities to around 5.1 million workers.
The sub-sectors that make up the industry include grains, sugar, edible oils, beverages, and dairy products.click here
However, as per the secondary data the food processing industry faces some challenges, such as low-cost competitiveness due to high agri-produce costs, limited awareness among farmers about best farming practices, and product quality concerns resulting from the rampant use of fertilizers and pesticides. Other issues include limited awareness among farmers about necessary quality certifications, lack of adequate facilities for quality testing, limited brand strength of Indian products in overseas markets, lack of infrastructure for processing, storage, and logistics, and limited compliance with sustainability and ethical requirements.click here
To address these challenges, the Indian government has put in place various schemes to support the food processing industry. For instance, the Pradhan Mantri Kisan Sampada Yojana (PMKSY) is aimed at promoting investments throughout the value chain to stimulate growth in the food processing industry. The Production Linked Incentive Scheme for the Food Processing Industry (PLISFPI), which is part of the Department of Animal Husbandry & Dairying in the Ministry of Agriculture & Farmers’ Welfare, is another initiative aimed at promoting the industry's growth. Other schemes include the Department of Fisheries, National Bank for Agriculture and Rural Development, and Mission for Integrated Development of Horticulture (MIDH). Details of the same are available on https://www.mofpi.gov.in/.
There are ~3319 DPIIT recognised startups in the Food Processing Sector as on 10th April 2023. These recognised startups are spread across 425 districts of the country. They employ roughly 33,000 people. Of the ~3319 startups, approximately 32% were recognised in the year 2022. The highest number of recognised startups in this sector are in Maharashtra ~620. About 58% of the startups in this sector are from Tier 2 & Tier 3 cities.
Startups in the spotlight:
1) Jackfruit 365
- Jackfruit365 aims to streamline the organised market for Indian Jackfruit through research and engineering intervention. Jackfruit365 developed a patented ‘green jackfruit flour’ which can reduce energy density and glycaemic load of most traditional Indian meals. The patent has been approved for grant in India.
2) UNIWRAPS
- UNIWRAPS is a food safety certified food wrapping paper with distinct properties added to it to handle Indian Foods. It is a high-quality specialty paper used for hygienically wrapping everyday food items like roti, paratha, sandwich, burger, idli, etc. It is made of 100% pure wood pulp and is food safety certified, so it keeps your food's health 'locked in.
3) Aadvik Foods and Products
-Aadvik Foods is India’s first company to process, brand and market camel milk and its products. Today it’s a market leader to bring out 3 unique milk categories namely Camel, Goat and Donkey milk.
Apart from government schemes, stakeholders such as incubators and accelerators support startups in the food processing industry. For instance, Swissnex India Accelerator, SAP-SINE Social (S-Cube) Accelerator Programme, Agri-Tech Startup Accelerator, CIE Hyderabad, and Icrisat Food Processing Business Incubator/ AgriBusiness Incubator (ABI) are some of the incubators and accelerators that support startups in the sector. Additionally, there are academic institutions such as IIT Madras’ Rural Technology and Business Incubator (RTBI) and T-Hub Accelerator, which is supported by the Government of Telangana and three of India’s premier academic institutes (IIIT- H, ISB & NALSAR).
Additionally, there are also several food and agriculture value chain funds like the Startup India Seed Fund Scheme, Startup India Tax Exemption Benefits, Orkla Foods Fund, SEAF India Agribusiness International Fund, Rabo Equity Advisors, Ominvore Capital and Aspada Investments. Few impact funds like Aavishkar, Villgro Innovations and Menterra are also playing a role in supporting the ecosystem.
In conclusion, the food processing industry is an important contributor to India's economy, providing employment opportunities to millions of people. With the right support ecosystem, the food processing industry in India has the potential to become a major player in the global market.
If you are a startup making a difference in the Food Processing Sector, apply for the National Startup Awards 2023 under the following categories and more.
- Impact in Rural Areas
- Indigenous Ingenuity Champion
- Rising Star Award
- India’s Social Impact Champion
- Sustainability Champion
To apply for the National Startup Awards 2023, you have to be a DPIIT recognised startup.
Click here to get recognised.
