The installed capacity of fruits and vegetables processing industry has increased from 1.1 million tonnes in January 1993 to 2.1 million tonnes in 2006. The processing of fruits and vegetables is estimated to be around 2.2% of the total production in the country. The major processed items in the fruit and vegetable segment are fruit pulps and juices, fruit based ready-to-serve beverages, canned fruits and vegetables, jams, squashes, pickles, chutneys and dehydrated vegetables. Some recent products introduced in this segment include vegetable curries in retortable pouches, canned mushroom and mushroom products, dried fruits and vegetables and fruit juice concentrates.
The fruits and vegetable processing industry is highly decentralized, and a large number of units are in the cottage, household and small-scale sector, having small capacities of up to 250 tonnes per annum. Since 2000, the food processing industry has seen significant growth in ready-to-serve beverages, fruit juices and pulps, dehydrated and frozen fruits and vegetable products, pickles, processed mushrooms and curried vegetables, and units engaged in these segments are export oriented.
Exporters Of Fruit & Vegetables
(Quantity in MT, Value in Rs Mn)
|
|
|
|
|
|
2001-02
|
2004-05
|
CAGR
|
|
|
Quantity
|
Value
|
Quantity
|
Value
|
Quantity
|
Value
|
|
Dried & Preserved Vegetables
|
209157.8
|
5371.5
|
351034.3
|
7657.5
|
18.8
|
12.5
|
|
Mango Pulp
|
76735.18
|
2413.4
|
90988.6
|
3008.6
|
5.8
|
7.6
|
|
Pickles & Chutney
|
38758.97
|
1203.4
|
67193.29
|
1205.8
|
20.1
|
0.1
|
|
Other Processed Fruits & Vegetables
|
61332.39
|
2017.4
|
80760.5
|
2755.3
|
9.6
|
10.9
|
|
Total
|
385984.3
|
11005.7
|
589976.7
|
14627.2
|
15.2
|
9.9
|
Source: Ministry of Food Processing Industries, Annual Report 2005-06
The domestic industry has to change its preference in favour of processed foods. Consumption of value added fruits and vegetables are low compared to the primary processed foods, and fresh fruits and vegetables. The inclination towards processed foods is mostly visible in urban centers due to a high purchasing power.
A remarkable push can be given to this sector by strengthening linkages between farmers and food processors. The poor and weak linkage between farmers and markets, as well as, farmers and processing companies has brought about inefficiencies in the supply chain and encouraged the involvement of middlemen leading price rise to the products. The Government of India’s National Agriculture Policy envisages the participation of the private sector through contract farming and land leasing arrangements which not only assures supply of raw material for processing units, but also a market for agriculture produce, accelerate technology transfer and capital inflow into the agriculture sector.
Innovative practices like contract farming in wheat practiced in Madhya Pradesh by Hindustan Lever Ltd and by Pepsi Foods Ltd in Punjab for tomatoes, food grains, spices and oilseeds are some successful examples of contract farming in India, which changed the farming landscape and promoted the cultivation of processable variety of farm produce this will certainly power the fruits, vegetables and grain processing industry. Besides such initiatives, fiscal incentives and tax concessions will also give impetus to the sector. The five-year 100% tax exemption announced by the Government in the finance year 2005 was one such incentive for upcoming fruits and vegetable processing units. |