World Food India 2023 and the Indian Food Industry

Context:

• This article is based on the news “World Food India 2023: Food sector has reached new heights, says Modi” Which was published in the Hindustan Times. Recently, the Prime Minister (PM) of India inaugurated the second edition of the World Food India 2023 at Bharat Mandapam.

PM inaugurates World Food India 2023 – Key Highlights

• During the World Food India 2023 event, the PM disbursed seed capital assistance to over 1 lakh self-help groups (SHGs) and inaugurated a “food street”.
• Importance: This event serves as a platform to showcase India’s global leadership in food production and coincides with the celebration of 2023 as the International Year of Millets.
• A total of 16 memoranda of understanding (MoUs) were signed between the Ministry of Food Processing Industries (MoFPI) and various companies 
  • These agreements amounted to a total investment of around ₹18,000 crore.

Significance of Indian Food Industry

• India’s Food Diversity: Having roots in the ancient Ayurvedic way of life, Indian food diversity is a dividend for investors across the world with its focus on ‘Ahara’ (diet) and ‘Anna’ (food) as a means of good life, health, and wellbeing. 
  • For example, Oriya cuisine is a gently spiced flavor where fish, crab, and prawns are prominent, whereas Gujarati cuisine is Prominently vegetarian, with popular dishes like oondhiya, patra, khandvi, and thepla. 
• Growing Food Processing Industry: Food processing industry has emerged as the sunrise sector in India and has attracted Foreign Direct Investments (FDI) of about ₹50,000 crore over the past 9 years. The share of processed foods in India’s agricultural exports has grown from 13% to 23 % in the last 9 years. 
  • Sunrise Sector: A sunrise industry is a business or business sector showing potential for substantial and rapid growth. 
• Pro-Industry and Pro-Farmer Policies: India’s food processing capacity has increased from a 12 lakh tonne to over 200 lakh tonne and India has witnessed 150% growth in exports of processed food in the last 9 years. 
• Significant Role of Women: Indian women have the natural ability to lead the food processing industry and play key roles in bolstering the sector and government support women in various ways, including Stree Shakti Package For Women Entrepreneurs, Mudra Yojana Scheme etc.
  • A seed capital of over 1 lakh was disbursed for the promotion of cottage industries and self-help groups for women on WFI program. 
• Promoting Consumption of Millets: On India’s initiative, an awareness campaign regarding millets has started in the world as United Nations recognised 2023 as the International Year of Millets.
  • India pitched for diversification of the food basket to create domestic and global demand and to provide nutritional food to the people. 
• Investment Opportunities and Cultural Exchange: The event attracts both domestic and international investors, offering them insights into the diverse investment opportunities within India’s food processing and agriculture sectors.
  • It allows for promoting Indian cuisine and cultural heritage, offering a platform for cultural exchange through food.

What are the challenges associated with the Food Industry in India?

• Supply Chain Issues: The industry is plagued by inefficient supply chains, inadequate storage and transport facilities, and a lack of access to credit and financing. 
  • Inefficiencies in the supply chain lead to significant wastage of food produce, and makes it difficult for small and medium-sized enterprises (SMEs) to enter the market and compete with larger, more established companies.
  • Increasing Vulnerability to Climate Change: Changing weather patterns, erratic monsoons, and other effects of climate change can significantly impact agricultural production and food security. For instance, India recently suspended exports of non-basmati rice varieties after heavy monsoon rainfall damaged newly planted crops.
• Crop Losses: Food security and sustainable development are pressing global concerns as a growing population, changing climate patterns, and socio-economic disparities pose significant challenges. 
  • According to the Ministry of  Agriculture And Farmers’ Welfare, India lost 5.04 million hectares (mha) of crop area to cyclonic storm, flash floods, floods, landslides and cloudbursts in 2021.
• High post-harvest losses: As per a 2022 study, between harvesting and consumption, India lost 5-13% of its fruits and vegetables and around 3-7% of crops that included oil seeds and spices. 
  • While India saw an increase of over 23% grains production in FY23 than FY15, post-harvest losses have only reduced by less than 1% during the period.
• Limited technology adoption: Fusion of technology and taste will pave the way for the economy of the future but factors like a lack of trusted sources of information, poor literacy, inability to comprehend scientific messages, and a stubborn belief in traditional systems affect technological adoption. 

Also Read: State Food Safety Index (SFSI) 2023 

Way Forward

• Reduce Post-Harvest Losses: Industry stakeholders need to focus on finding solutions to reduce post-harvest losses and promote sustainable packaging methods.
  • For instance, investments exceeding ₹50,000 crore have been made to set up post-crop harvest-related infrastructure projects under the Agriculture Infrastructure Fund. 
• Promoting Skill Development: Ensuring that the workforce is skilled and equipped with the necessary knowledge, especially in the technological aspects of food processing.
  • For instance, the Agriculture Skill Council of India (ASCI) is contributing to nation-building through Skill Development in Agriculture.
  • ASCI is a Not for profit concern working under the aegis of Ministry of Skill Development & Entrepreneurship (MSDE).
• Investments in Food Processing Infrastructure: Investments in processing infrastructure in the fisheries and animal husbandry sector are needed.
  • Bringing farmers together and helping them partner with the right service provider like Farmers’ Producer Organisation can make unprecedented progress in helping farmers scale up the production of food.
• Implement Ancient Knowledge: There is a need for the food processing industry to implement ancient knowledge for global food security. 
  • Traditional wisdom and nutritional value of niche Indian food products, such as Indian variants of millets, fruits, rice, and oilseeds make them excellent export choices. 
• Promote Sustainable Practices: Ensuring sustainable agriculture, food security, and nutrition security, as highlighted in the G-20 Delhi declaration. Further, ensuring the development of sustainable packaging methods as a viable alternative to traditional plastic-dominated packaging is the need of the hour.
  • For Example: Climate smart agriculture, organic farming, agro-forestry etc.
• Ensuring Quality and Safety Standards: Over 95% of India’s farm produce is consumed domestically as quantity and quality of yield are still hampered by a lack of good farm inputs and equipment. 
  • There is a need to implement stringent food safety standards to boost consumer trust both within the country and overseas. Adhering to food safety standards is crucial to protect public health and prevent food-borne illnesses.

Conclusion:

World Food India 2023 reflects India’s commitment to showcasing its rich food culture, fostering global investments, and addressing challenges in the food industry, emphasizing the importance of sustainable practices and technological advancements for future growth.