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Indian Food Market

Indian Food Market have reached a huge volume over the years with the increase in the opportunity for new investments in food and food processing technologies, skills and equipment. India Food Market offers a vast scope for both investors and exporters. In spite of having a huge food market presently, India still accounts 1.5% of international food trade only. Indian food production crossed the period of scarcity to surplus and over the next five years it is on the assured path of growth and profit.

The areas which have been emphasized in the Indian Food Market are Canning, Dairy and Food Processing, Specialty Processing, Food Packaging, Frozen Food Refrigeration and Thermo Processing. The promising sectors of the food market of India include fruits and vegetables, milk and dairy products, grains, confectionery, aqua culture and fishing, meat and poultry, fast food, ready-to-eat meals, food additives and others. Another rising part of the Indian Food Market is the segment dealing with health food and health food supplements.

Another important part of the Indian food market is the Food Retailing Sector. This is still in a transitory stage with a wide scope for many large Indian corporate to enter and extend their business, resulting in the possibilities of new retail outlets like hyper and super markets to emerge country wide. The boom in the Retail Food Sector is however due to:

1. increasing size of urban consumers of nuclear and dual-income families
2. their high purchasing power and changing lifestyle
3. their changing attitudes and tastes with increasing modernization and impact of westernization of tastes
4. their ability to offset seasonal supply-and-demand effects in fresh products

To increase the profitability of the food market of India there should be more attempts for regulating marketing infrastructure and promoting public-private partnerships. Some best examples of marketing distribution in this format in the Indian Food Market are - ITC's e-Chaupal, Haryali Kisan Bazaar, Mahindra Subh Labh, Cargil Farmgate Business and Tata Kisan Sansar. Moreover, the Retail Food Sector should partner with farmers, logistics operators and traders for an increase in their purchasing power. A supply chain, logistics and information technology infrastructure are thus interconnected factors of the Indian Food Market .

The Government of India in order to make the Indian Food Market a more profitable section of the country's economy, have initiated the Integrated Food Law , which deal with the quality standards of the food. In the Eleventh Plan period it is estimated that about Rs. 1 lakh-crore would be invested in the Food-Processing Sector.



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