Major Challenges for the Indian Food Industry

        In India agricultural sectors achieved remarkable successes over the last three and a half decades. Besides being one of the world's largest producers of food-grains, India ranks second in the world in the production of fruits and vegetables, and first in milk production providing much needed food security to the nation.

The accomplishments of the green and white revolutions have, however, not been matched by concurrent developments in supply chain management, and in new technologies for better processing, preservation, and storage of food. Pockets of shortages and near starvation, substantial wastages due to spoilage, quality deficiencies, and inadequate returns to the farmer are still very much in evidence.

Following are the major challenges for the Indian Food Industry:

• Consumer education that processed foods can be more nutritious
• Low price-elasticity for processed food products
• Need for distribution network and cold chain
• Backward-forward integration from farm to consumers
• Development of marketing channels
• Development of linkages between industry, government and institutions
• Taxation in line with other nations
• Streamlining of food laws