With the global economy beginning to perk-up, India's food processing industry is expected to benefit from this and grow to around $260-billion from the present USD 200-billion in the next 6-years, an industry expert said.
"The food processing industry will grow 30-40% as against the present 15 per cent in the next 10-years," Ernst and Young's associate director, Shrikanth Kamat, said.
The food sector has a huge potential and the industry's growth would reach USD 320-billion by 2020, Kamat said in his presentation on technology for the food processing industry; business potential between Argentina and India, hre.
Potential for processed foods is estimated to reach from Rs8,200-billion in 2009-10 to Rs13,500-billion by 2014-15, he said. India produces 41% of the world's mangoes, 30% of cauliflowers, 28 per cent of tea, 23% of cashews, 36 per cent of green peas and 10% of onions.
India is a large and growing market for food products as it is growing at about 1.6%annum, Kamat said. On the global food sector, Kamat said the food products industry is expected to reach $3,137.2-billion by 2011.
"Global food, beverage and tobacco industry will continue to grow with major contributions from developing countries as China and India," Kamat said. Only 6% of total agro output of India is currently processed as against 80% in some developed countries, Kamat said.
Currently food products in the organised sector are high-priced because of multiple taxes. The Goods and Services Tax (GST) which is proposed to be implemented from April 1, 2010, will help reduce prices of manufactured products, he added.
