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Good times ahead for India’s food
processing sector
By Arabind Das, COO, Godrej Tyson Foods Limited
Arabind Das, COO, Godrej Tyson Foods Limited, discusses the evolution of India’s food
processing industry and how the government’s recent initiatives bode well for the sector.
The United Nation’s Food and Agriculture
Organization (FAO) estimates that
around one third of the food produced
globally every year gets lost or wasted.
This food loss and waste of around 1.3
billion tonnes not only means a waste of
resources, but is also responsible for
greenhouse gas emissions, which has led
to climate change. Given the challenges
faced by global agriculture — climate
change, unstable food prices and a
demand for more arable land — such
colossal food waste and loss proves a
grave concern.
The FAO also states that 40 percent of
losses occur at post-harvest and
processing levels in developing countries,
due to constraints in harvesting
techniques and storage and cooling
facilities. The organisation recommends
strengthening the supply chain and
expanding the food and packaging
industry to help reduce food loss and
waste.
India’s cold chain infrastructure
In India, a study by the government’s
Central Institute of Post-Harvest
Engineering and Technology (CIPHET)
showed that around 67 million tonnes of
food is wasted every year, which
amounts to a loss of Rs 92,000 crore.
Integrated cold chain infrastructure
could be one answer to reduce post-
harvest food loss.
The perception is that India lacks in
temperature-controlled cold chain
infrastructure. However, the Government
of India has focused on this area since the
10th Five Year Plan. Collaboration
between the government and industry
led to a roadmap and fiscal benefits.
Many companies took advantage of this
to set up large cold stores and use
refrigerated GPS-enabled vehicles.
Over the years, the changes in
government policies have kept pace with
technological advancements adopted by
companies. Two moves in particular have
been important for the food processing
industry. The first is the focus on a
continuous supply of high quality power,
which is crucial for temperature-
controlled cold chain infrastructure. This
is being met by power generation from
renewable sources of energy and the
availability of grid power.
Over the past 15 years, India has also
been adopting Codex, the international
food standards code. One law, which is
governed by the Food Safety and
Standards Authority of India (FSSAI), has
also replaced the older lot of regulations.
Initiatives with foresight
The government has taken several steps
and adopted transparent systems to
ensure ease of business. Make in India,
which was launched in 2014, was one of
the first important initiatives to open up
the food processing sector in a big way.
The programme encourages
multinational and domestic companies to
manufacture their products within the