India Targets 25-30% Food Processing Level to Boost Value Addition and Exports
- IBEF
- September 17, 2026
India aims to increase the share of agricultural produce undergoing food processing to 25-30% from the current 16-17% by 2030 or 2047, with the objective of increasing value addition, reducing post-harvest losses and strengthening the sector's export potential. Deputy Agricultural Marketing Advisor and Director, Ministry of Food Processing Industries, Mr. J.P. Dongre, highlighted the sector's growth potential at a precursor event in New Delhi for Anuga Select India and Anuga FoodTec India 2026. India's food processing level has increased from around 3-4% a decade ago to 16-17% currently, while the food processing industry is estimated to be valued at more than Rs. 47.19 lakh crore (US$ 500 billion). The Ministry of Food Processing Industries is supporting micro, small, medium and large enterprises through financial assistance for modern machinery, packaging infrastructure and cold-chain facilities. Under the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme, around 200,000 micro entrepreneurs have been formalised over the last five years, with further formalisation planned over the next five years.
Reducing post-harvest losses remains a major opportunity for the sector, with an earlier government study estimating losses of more than Rs. 1.5 lakh crore (US$ 15.89 billion) in agricultural produce. Strengthening storage, warehousing, cold-chain and processing infrastructure could help convert these losses into value-added products while improving farmers' market opportunities. The proposed India-European Union Free Trade Agreement (FTA) could provide an additional boost to processed food and agricultural trade by lowering tariffs and improving market competitiveness. The FTA is expected to create opportunities for greater market access, although businesses would need to develop commercial partnerships to fully utilise its provisions. India's international food market is also expanding, with nearly 30% of members of the Forum of Indian Food Importers now operating as exporters and manufacturers through joint ventures.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Partners
