Institute for Social and Economic Change

Established in 1972 by Professor V K R V Rao, ISEC is an All-India Institute for Interdisciplinary Research and Training in the Social Sciences

The Positioning and Performance of Organised Food Processing Industry in India – A National and Sub-National Level Analysis – isec

The Positioning and Performance of Organised Food Processing Industry in India – A National and Sub-National Level Analysis

The Positioning and Performance of Organised Food Processing
Industry in India – A National and Sub-National Level Analysis


Sibin Jerry Thomas and Malini L Tantri


Abstract


The Food Processing Industry (FPI) plays a significant role in the pursuit of doubling the income of farmers and providing employment to the large labour base of the country.This requires a detailed and systematic understanding of the sector and course correction wherever required.It is againstthis background, through descriptive statistics, this study examines the performance of the food processing industry at both the aggregate and disaggregate levels.The analysis across phases based on ASI data for the period 1990-2020 helps us to argue that (a) although the industry has been on a growth path since the reforms in the agriculture sector were undertaken after 2000, there exists a varying pattern of size and development within the industry at the sub-category level. (b) Even though the food processing industry has a huge share in the majority of Indian states, there is a regional imbalance in the level of development of the industry, with certain states being exceptional performers while other states lag. (c) This, among others, is due to the availability of raw materials, consumer base, infrastructure, and logistics facilities, as well as the policy support provided in the form of incentives and grants to the units in the industry.

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