Unlimited Scope, Untapped Potential: Centre Pushes Corporations to Invest in Food Processing
India’s food processing sector—long described as a sleeping giant—may be inching closer to a decisive wake-up call. Food Processing Secretary A. P. Das Joshi urged corporate India on Thursday to significantly scale up investments, warning that the country’s current food processing level of just 12% is far too low for an economy of its size and agricultural capacity.
Speaking at the CII IndiaEdge 2025 session titled “Scaling Food Processing for Rural Prosperity and Jobs,” Joshi stressed the need for stronger private sector participation to unlock what he termed “unlimited scope” for growth in the industry.
He noted that India has nearly 24 lakh food processing units, but only 2% operate in the organised sector. “I look forward to a higher level of investment from the captains of industry,” he said, highlighting the immense potential for both domestic private capital and foreign direct investment.
Joshi also called for greater formalisation of the informal units that dominate the sector, arguing that value addition in food processing directly translates into higher incomes for millions of farmers. “Whatever you process comes from lakhs of farmers. Increasing processing levels is necessary for rural prosperity,” he said. Despite being one of the world’s largest food producers, India lags far behind countries like the Philippines and Thailand in processing capacity.
Policy Moves Ahead: HFSS & FOPNL Decisions Expected Soon
The secretary hinted at imminent regulatory actions, stating that the government is in “very, very active consideration” of decisions related to HFSS (high fat, sugar, salt) standards and Front-of-Pack Nutrition Labelling (FOPNL). Both policies are expected to significantly impact how packaged foods are reformulated, labelled, and marketed in India.
Labour Codes to Boost Processing Ecosystem
Addressing concerns around the labour environment, Joshi emphasised that the new national labour codes—yet to be implemented—are designed to be “worker-friendly, industry-friendly, and growth-friendly,” and will benefit labour-intensive sectors like food processing.
“Sometimes we have to change so that we can achieve higher performance,” he said.
Exports Show Promise: Processed Share Doubles
In a promising sign, Joshi highlighted that the share of processed foods in India’s agricultural exports has doubled over the past decade—from 11% in 2014–15 to 22% today. He projected that with the right investments and policies, the figure could rise to 30–32% within the next five years.
Industry Calls for Policy Support
Piruz Khambatta, Chairman of the CII National Committee on Taxation and CMD of Rasna Group, echoed the call for higher investment and supportive policies. He urged the government to set up a dedicated Citrus Development Board and to implement a Model Food Processing Policy to standardise frameworks across states.
“Every plate in the world should have something from India,” Khambatta said. “Food processing is not just an industry—it is a powerful engine for rural job creation, value addition, and innovation.”
He stressed the need to promote semi-processed foods, suggesting that they could significantly increase farmer incomes, reduce wastage, and open new export avenues.
With the government signalling policy clarity and the industry pushing for structural support, India’s food processing sector appears poised for transformation—provided corporate India steps up to the table.