A Road-Map for Setting-up Food Business in India

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Arpita Mukherjee
Arpita Mukherjee
2
Tanu M Goyal
Tanu M Goyal

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Introduction-India, with a large and growing population and a diverse raw material base, plays a pivotal role in global demand and supply of food products (Food and Agriculture Organization (FAO) 2012). India is the second largest producer of fruits and vegetables in the world after China, producing around 180 million tons per year. Despite these advantages, the food processing sector faces several supply-side constraints and regulatory barriers. Only 7 per cent of the total Indian perishable produce is processed, which is extremely low compared to countries such as the United States (US, 65 per cent), Philippines (78 per cent) and China (23 per cent). Official estimates show that about 25-30 per cent of this produce goes waste between harvest and consumption (Chari and Raghavan 2012) due to lack of proper cold storage facilities (Parfitt et. al. 2010). India is not the only country where there is a large wastage. According to an estimate by the FAO roughly one-third of food produced for human consumption is lost or wasted in the supply chain globally, which amounts to about 1.3 billion tons per year (FAO 2011). Considering that by 2050 global population of around nine billion people has to be fed, it is important to minimize food wastages particularly in large food producing nations like India. Existing studies show that investment and technology spillovers in the entire food supply chain (from farm to fork) from foreign firms can help to improve the efficiency and reduce wastage of agriculture commodities (Chari and Raghavan 2012, Mukherjee et. al. 2014). This paper looks at present state of India’s food supply chain, applicable regulations in the food sector, the barriers that exist and the scope for foreign investments in the food supply chain with the view of improving it. The barriers, opportunities and the go-to-market strategy highlighted in this paper are based on evidence collected during in-depth interviews with industry and policymakers in the sector.

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No external funding was declared for this work.

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The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

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Arpita Mukherjee. 2014. \u201cA Road-Map for Setting-up Food Business in India\u201d. Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 14 (GJMBR Volume 14 Issue B8): .

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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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December 25, 2014

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Introduction-India, with a large and growing population and a diverse raw material base, plays a pivotal role in global demand and supply of food products (Food and Agriculture Organization (FAO) 2012). India is the second largest producer of fruits and vegetables in the world after China, producing around 180 million tons per year. Despite these advantages, the food processing sector faces several supply-side constraints and regulatory barriers. Only 7 per cent of the total Indian perishable produce is processed, which is extremely low compared to countries such as the United States (US, 65 per cent), Philippines (78 per cent) and China (23 per cent). Official estimates show that about 25-30 per cent of this produce goes waste between harvest and consumption (Chari and Raghavan 2012) due to lack of proper cold storage facilities (Parfitt et. al. 2010). India is not the only country where there is a large wastage. According to an estimate by the FAO roughly one-third of food produced for human consumption is lost or wasted in the supply chain globally, which amounts to about 1.3 billion tons per year (FAO 2011). Considering that by 2050 global population of around nine billion people has to be fed, it is important to minimize food wastages particularly in large food producing nations like India. Existing studies show that investment and technology spillovers in the entire food supply chain (from farm to fork) from foreign firms can help to improve the efficiency and reduce wastage of agriculture commodities (Chari and Raghavan 2012, Mukherjee et. al. 2014). This paper looks at present state of India’s food supply chain, applicable regulations in the food sector, the barriers that exist and the scope for foreign investments in the food supply chain with the view of improving it. The barriers, opportunities and the go-to-market strategy highlighted in this paper are based on evidence collected during in-depth interviews with industry and policymakers in the sector.

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A Road-Map for Setting-up Food Business in India

Tanu M Goyal
Tanu M Goyal
Arpita Mukherjee
Arpita Mukherjee

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