India targets 25-30% food processing level to boost value addition, exports

New Delhi [India], September 12 (ANI): India aims to raise the share of agricultural produce undergoing food processing to 25-30 per cent from the current 16-17 per cent, as the government seeks to expand value-added production, reduce post-harvest losses and improve the sector's export potential, a senior Ministry of Food Processing Industries official said in a press release issued by Anuga Select India.
Industry experts and trade officials shared these insights on the sidelines of a precursor event in New Delhi for Anuga Select India and Anuga FoodTec India 2026, scheduled to take place from September 29 to October 1 at the Bombay Exhibition Centre in Mumbai.
J.P. Dongre, Deputy Agricultural Marketing Advisor and Director at the Ministry of Food Processing Industries, said India's food processing industry is currently valued at more than USD 500 billion on an estimated basis and has significant potential for further expansion.
“India’s food processing level has risen from just 3–4% a decade ago to 16–17% today, and we aim to take it to 25–30% by 2030 or 2047, bringing us closer to leading European countries,” Dongre said.
He said the ministry is supporting micro, small, medium and large entrepreneurs through financial assistance for modern machinery, packaging infrastructure and cold-chain facilities.
The ministry has also formalised two lakh micro entrepreneurs through initiatives under the PMFME scheme over the last five years and has proposed to formalise more over the next five years, Dongre said. The move is expected to help small businesses adopt better processing and hygiene standards.
Post-harvest losses remain a major opportunity, with an earlier government study estimating that agricultural produce worth more than Rs 1.5 lakh crore is lost. Dongre said stronger storage, warehousing, cold-chain and processing infrastructure can help convert these losses into value-added products.
Meanwhile, the anticipated India-European Union Free Trade Agreement could provide another boost to the sector. Pawel Stachowiak, Counsellor, Trade and Economic Affairs at the European Union, said bilateral agri-food trade currently stands at around 5 billion euros and could reach about 10 billion euros by 2032 if trade doubles.
“The Free Trade Agreement (FTA), which we hope will be signed by the end of this year, is expected to significantly lower tariffs on agricultural goods on both sides, making products more competitive and affordable for consumers,” Stachowiak said.
He said the FTA could also double EU exports to India within five years of its entry into force, although businesses would need to convert the agreement's provisions into commercial partnerships.
Amit Lohani, Founder and Director of the Forum of Indian Food Importers, said India's international food market has expanded, with nearly 30 per cent of its members now also operating as exporters and manufacturers through joint ventures. 
Milind Dixit, Managing Director, India & SAARC Region, Koelnmesse Pvt Ltd, said North India has significant growth potential for the food and beverage industry, particularly in value-added and export-oriented products.
“India is rapidly emerging as a market of choice for global food businesses, supported by evolving consumer preferences and increasing demand for organic and value-added products,” he said. (ANI)