Government targets 25 pc food processing level by 2031; mulls policy measure to boost investment

New Delhi: Food Processing Secretary Avinash Joshi on Thursday said the ministry has set a target to increase the food processing level to 25 per cent by 2031 from 17 per cent in 2023 and hinted that it would announce some policy initiative to boost investments in the sector for achieving this goal.

Addressing a conference organised by industry body FICCI, he cited a recent report by Crisil which highlighted that the food processing level has increased to 17 per cent in 2023 from 10 per cent in 2010-11.

The secretary also informed about the success of the Production Linked Incentive (PLI) scheme for food processing industry in increasing capacities and generating employment. The scheme is being implemented for six years from 2021-22 to 2026-27 with a total financial outlay of Rs 10,900 crore.


"A fortnight back, we had a report from Crisil about the level of processing in the country. In 2010-11, our processing level was around 10%. As per 2026 report, the processing level has gone up in 2023 to 17 per cent. We have internally set the target to take it to at least 25 per cent by 2031," Joshi said.

The secretary noted that the processing level is an important indicator and hoped that the industry would take this target as a challenge.

An increase in the processing level would help in value addition, boost exports and also create a lot of positives for the primary, secondary, as well as the tertiary sector market, he said.

"A few days back, we again had the opportunity to talk to the Honourable Prime Minister. So there, from the food processing side, what we have said is that to take this processing level to 25 per cent at least, we need some national processing mission or PLI 2.0 or whatever name we give to the scheme, because this sector needs enhanced investment in a very very short period of time," Joshi said.

He hoped for some positive feedback on the ministry's proposal.

In India's food processing industry, more than 90 per cent of units are in the MSME segment.

Joshi asked industries to plug inefficiencies and make India competitive not only for the domestic market but for the global market.

Stating that India has surplus agricultural production, he said the challenge is to move quickly from the volume to the value and then to achieve nutrition for all.

The secretary also underscored that food safety is of the utmost importance. "We cannot compromise with the safety regulations, and we should not".

On the current PLI scheme, Joshi said the ministry recently held a meeting with the industry representatives to understand the strengths and challenges in the scheme.

He described the scheme as the most successful PLI in the country as it has achieved all targets, including employment generation, attracting investments and exports.

The PLI in the food processing sector contributed almost 48 per cent to employment generation, he said, adding that it is a very, very inclusive sector.

"So there is a case that if we can have something where we can build on the positives of the PLI and can consolidate the benefits for the industry and for the consumers and for the country. So that was the idea. May be in PLI 2.0, maybe in some other form," the secretary said.

Joshi said the government has started working to create a Bharat brand for processed food.

"What we are planning to do through this Bharat brand platform is to give visibility to Indian cuisines and Indian alcoholic beverages. We plan to have lot of intervention by the ministry with the help of the industry, which can create positives for the Indian food, for the Indian cuisines, and we can take this to the global level," he said.

The secretary emphasised that the Centre is fully committed to developing this sector.