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“Government has announced a new national agriculture export policy to support the export of organic products. The policy has been made jointly by the ministries of commerce, agriculture and food processing. India produces around 600 million tonnes of agricultural as well as horticultural products yearly. The new agriculture policy has been revealed with the vision to double the farmers' incomes and boost the share of agricultural exports from the current $30 billion to over $60 billion by 2022”

Shri Suresh Prabhu Union Minister of Commerce, Government of India

LETS MEET AT THE 5th ORGANIC + BIOTECH INDIA WORLD EXPO'19

Organic Demand & Potential in India & Overseas

  • World's First - Sikkim with 66,000 farmers, boosted tourism too & is an example for nations
  • Agricultural exports currently $30 billion poised to be $60 billion by 2022s
  • India has the world's largest number of organic farmers
  • Organic packaged food market growth - CAGR of 25%
  • Current Indian domestic market - INR 40,000 million
  • 2020 Indian domestic market - INR 120,000 million
  • Organic packaged food in 2016 - INR 533 million
  • 2021 Organic packaged food - INR 871 million


Push Factors Due to Increasing


  • AYUSH & food processing
  • retail shelf space for organics
  • customer base & use of technology
  • usage of online marketing platforms
  • health consciousness & swadeshi usage
  • awareness of harmful effects of chemicals
  • number of organic food restaurants and cafes
  • entrepreneurs, investment & start-ups in the sector
  • variety new & ready-to-eat products offer a choice to consumers


Central & State Governments Support


The union and state governments have improved the regulatory framework with many initiatives aimed at promoting organic cultivation India's fully organic Sikkim became the world's first state, winning the prestigious United Nations backed award. The apex regulatory authority - Food Standards and Safety Authority of India (FSSAI), in December 2017 recognized both the certification systems (NPOP and PGS-India) valid for organic food products. A number of government schemes have been launched for organic farming like National Program for Organic Production (NPOP), National Project on Organic Farming (NPOF), National Mission on Sustainable Agriculture (NMSA), Paramparagat Krishi Vikash Yojana (PKVY), Rashtriya Krishi Vikas Yojana (RKVY), Mission for Integrated Development of Horticulture (MIDH) and National Mission on Oilseeds & Oil Palm (NMOOP), etc.


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Agro, food & drink, ingredients & packaging sectors go hand-in-hand. India's agro, food and beverage processing industries never had it so good. During 2016-17, total agricultural exports were worth US $ 33 billion of which 13% is accounted for by processed foods - which only goes to show the untapped potential. The facts and figures speak for themselves, but consider this - India's Agriculture Ministry now aims to double production of all food crops through National Food Security Mission, NHM, HMNEHS & NHB and disseminating latest and modern practices of production and post harvest care. The Ministries of Food Processing, Agriculture, Commerce & Industries have over the last term excelled, the fabulous results of which are evident in the stats.

India is the world's second largest producer of food, after China but accounts for less than 1.5% of world food trade. The Indian Government under the progressive leadership of Prime Minister, Narendra Modi and the related union cabinet ministers are ensuring the processing sector grows to reduce waste, produce quality yield, meet food security needs and generates foreign exchange through exports worldwide.

Go West !

Among the most developed states are those in the country's western region, namely Gujarat and Maharashtra, of which Maharashtra leads in agro-food processing. The state is further strengthening its agri-food-horti sector with investments in infrastructure. Mumbai, the country business, commercial & financial market, also hosts India's biggest perishable cargo complex, enabling quick import-export of products, equipment & technologies. Need we say more !

India's AgroFood Industry

  • We let the stats speak ! Facts & Figures
  • The Indian food market is the world’s 6th largest
  • Annual Agro budget is Rs. 41,855 crores or US $ 6.5 billion
  • The food industry accounts for 32% of India’s total food market
  • Food processing has grown annually at 8.4% for the last 5 years
  • The soft & alcoholic drinks market is growing annually with 14% CAGR
  • Processing industry expected to reach a value of $ 482 billion by 2020
  • Annual Food Processing Budget is 1,400 crores INR or US $ 220 million
  • Indian food service industry is expected to reach US$ 78 billion by 2018
  • Investment in the registered food processing sector has grown by 20.1%
  • The Food industry accounts for about 31% of India’s consumption basket
  • Retail food market is to reach Rs 61 lakh crore (US $ 920 billion) by 2020
  • The sector could attract up to US $ 33 billion of investment over next 10 years
  • A US $ 2.1 trillion economy, India is the world's third largest after US and China
  • 42 mega food parks are being set up with an allocated investment of US $ 2.38 billion

  • Dairy, beverages, bread & cereals, snacks and health are the fastest growing segments
  • The Government of India has set up a dairy processing infra fund worth US$ 1.2 billion
  • The food processing industry ranks fifth in world of Indian exports, production and consumption
  • FSSAI plans to invest approx. US$ 72.3 million to strengthen the food testing infrastructure in India
  • The Indian gourmet food market is currently valued at US $ 1.3 billion and growing at a CAGR of 20%
  • Over 60% of India's total land is under agriculture and engages about 70% population for their livelihood
  • APEDA is targeting agricultural and processed food exports to be Rs.4000-5000 crores or US $ 0.75 billion
  • The Government of India is allowing up to 100% FDI in food product e-commerce through automatic route
  • Food Processing industry received US $ 7.47 billion of Foreign Direct Investment (FDI) between 2000 - 2016
  • Value addition of the food processing sector as a share of GDP manufacturing was 9.8% in the last financial year
  • Union Budget 2016-17 proposed 100% FDI through FIPB in marketing of food products produced and manufactured in India
  • Food processing contributes 14% of the Manufacturing Gross Domestic Product (GDP), 13% of exports and 6% of Industrial investment
  • Mahrashtra government has implemented the Integrated Cattle Development Project (ICDP) & Integrated Dairy Development Project (IDDP)



 
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Joseph Dias, MA (Economics)

India +91 9769555657
Chairman, Trinity Group trinity.cmd@gmail.com
Ex-Special Executive Magistrate, Govt of Maharashtra
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