A study of the problems faced by Indian food/agro processing industry and developing a supply chain model for a fruit processing unit

Abstract

Indian agriculture contributes to 1/4th of country s GDP and sustains about 3/4th of the population. Indian agriculture, due to the extent of its arable land and diverse agro climatic zones, can be easily diversified to meet the diverse demands of both Indian and overseas customers. One of the most important challenges facing the country is to provide remunerative prices to the farmers. This can be well addressed by the increasing the present level of processing and value addition of the agricultural produces of the country. In this scenario the role of Food Processing becomes crucial and plays an pivotal role in farmer s price realization. Value addition through food processing has several advantages like, remunerative prices to farmers, enhanced shelf life and reduced wastages, employment creation and commercialization of agriculture. The present level of processing is very low in India compared to that of developed countries and varies significantly from sector to sector. For instance, the level of processing in Fruits and Vegetables in India is about 2% whereas the same is 70 % in US.As a food supplier, India with her arable land and diverse agro climatic zones across the country has got great potential for cultivating a range of agricultural products. India is a major producer of many agricultural products and this strong base can cater the raw material requirement for the food processing sector. These advantages can help India becoming a major food supplier to the world and it becomes inevitable to develop the food processing industry to become a dominant player in the global agricultural and food trade. On the other hand, India with her growing population is an ever growing market for food products. With rapid urbanization, increasing surplus incomes and changing socio economic environment the food consumption patterns are ought to change in favour of processed foods which are convenient, hygienic and safe.