- Why it was in News?
- Food Market of India
- Role of Food Industry in Sustainable development
India’s challenges in waste management
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Why it was in News?
- A recent study by Associated Chambers of Commerce and Industry of India (ASSOCHAM) finds that India’s food processing sector has the potential to attract $33 billion investment by 2024.
- It also said that India’s food and retail market is expected to touch over $480 billion by 2020, up from $258 billion in 2015.
Food Market of India
Food Processing in India
- The food processing is a key contributor to employment generation in India. The government have identified food processing as a key sector in encouraging labour movement from agriculture to manufacturing.
- By 2024, food processing sector is expected to employ 9 million people in India and generate and expected to generate about 8,000 direct and 80,000 indirect jobs.
- The share of food processing exports in total exports was around 12 percent in the last few years.
- Although the food processing market comes under the unorganised sector in India, the organised sector has a larger share in the secondary food processing segment than the primary one.
Food and Grocery
- Food and grocery is the largest segment in India ‘s retail sector, with a share of more than 60 percent in India ‘s total retail market in 2014.
- Food and grocery constitute a substantial part of India’s consumption share (31%). In contrast, consumers in other countries spend a much lower proportion of their income on food and grocery such as 9% in US, 17 % in Brazil and 25 % in China.
Global Food trade of India
- India is the world ‘s second largest producer of food after China and has the second largest arable land area (after the US) in world.
- With the second largest arable land in the world, India is the largest producer of milk, pulses, sugarcane and tea in the world and the second largest producer of wheat, rice, fruits and vegetables.
- India is one of the largest producers of certain fruits, vegetables, pulses, cereals and dairy products.
Role of Food Industry in Sustainable development
In 2015, all 193 members of the United Nations agreed unanimously adopt two agreements:
- First is Agenda 2030 through which they adopt 17 Sustainable Development Goals (SDGs) as a roadmap to human well-being and planetary safety.
- Second was the Paris climate agreement which commits the world’s governments to taking decisive action to keep global warming to less than 1.5º Celsius.
- Both the SDGs and the Paris agreement require decisive changes in practices by the food industry.
Recommendations for food companies
- Their products and strategies should contribute to healthy and sustainable diets.
- Given that too many companies are engaged in chemical pollution, massive waste from packaging, excessive and poorly targeted fertilizer use etc. food company’s production practices should be sustainable.
- Food company’s upstream suppliers should also be sustainable as no consumer food company should use products from farms that contribute to deforestation.
- Food company should act as a good corporate citizen. For example, aggressive tax practices that exploit legal loopholes should be avoided, as they deprive governments of the revenues needed to promote public services.
- With globalisation, approximately $3 billion of food is traded annually. India has thus, a great potential for global trade in agricultural and processed food products.
- India is one of the top rankers in the production of bananas, guavas, ginger, papaya etc., although processing levels in the country ranges between 2 to 35.
- As the world has the know-how and wealth to achieve a prosperous, inclusive and sustainable world, the business sector must urgently recognize, acknowledge and act upon its global responsibilities.