With the global economy beginning to perk-up, India’s food processing industry is expected to benefit from this and grow to around $260 billion from the present $200 billion in the next 6-years, an industry expert said.
“The food processing industry will grow 30-40 per cent as against the present 15 per cent in the next 10-years,” Ernst and Young’s Associate Director, Shrikanth Kamat, said.
The food sector has a huge potential and the industry’s growth would reach $320 billion by 2020, Mr. Kamat said in his presentation on technology for the food processing industry; business potential between Argentina and India, here.
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Potential for processed foods is estimated to reach from Rs 8,200-billion in 2009-10 to Rs 13,500-billion by 2014-15, he said.
India produces 41 per cent of the world’s mangoes, 30 per cent of cauliflowers, 28 per cent of tea, 23 per cent of cashews, 36 per cent of green peas and 10 per cent of onions.
India is a large and growing market for food products as it is growing at about 1.6 per cent annum, Mr. Kamat said.
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On the global food sector, Mr. Kamat said the food products industry is expected to reach $3,137.2 billion by 2011.
“Global food, beverage and tobacco industry will continue to grow with major contributions from developing countries as China and India,” Mr. Kamat said.
Only 6 per cent of total agro output of India is currently processed as against 80 per cent in some developed countries, Mr. Kamat said.
Currently food products in the organised sector are high-priced because of multiple taxes. The Goods and Services Tax (GST) which is proposed to be implemented from April 1, 2010, will help reduce prices of manufactured products, he added.