Food Processing: The Potential North Star in India's Sustainability Horizon

In this article, Rittika Barua and Sumit Roy highlight that food processing as an industry in India deserves major attention. It is vital to the nation in more ways than one. Food processing can transform surplus and by-products from agriculture, which would otherwise go to waste, into valuable marketable products. By tapping into these opportunities, food processing can improve the agricultural value chain and contribute to the sustainable development of India’s agriculture sector.

Food processing as an industry in India deserves rock-star attention. It is vital to the nation in more ways than one. Not only is it contributing a gross value addition of INR 2.4 trillion at an annual compounded growth rate of 9.5 per cent, it is also the key link that connects the crucial agricultural and manufacturing sectors, thereby facilitating economic growth, generating loads of employment opportunities and above all, addressing the pressing global problem of food security.

As the second-largest producer and consumer of food globally, India is only ranked fourth in food processing with huge avenues for improvement. That would not only add to economic growth but also has the potential to significantly contribute to the environmental as well as social development of the country.

Mitigating the Food Loss and Waste Problem

According to estimates by the NITI Aayog, the apex policy think-tank of the Indian government, post-harvest crop losses in India amount to around INR 90 billion per year. India also contributes to 7 per cent of global food wastage, with a staggering 68.8 million tonnes of food wasted annually. A boost to the Food Processing industry can play a major role in preventing spoilage and waste of perishable produce, by converting raw produce into value-added food products with longer shelf life and added nutritional value. Currently, less than 10 per cent of the total agricultural produce is processed, leaving ample opportunity to enhance the processing percentage and reduce the possibility of food losses.