SWOT Analysis of Food Processing Sector in India

Food processing refers to the value addition to the raw agricultural product, in order to improve its quality, make it edible or increase its shelf life through various physical and chemical processes.

Strengths:

  • There are various types of soil and agroclimatic conditions in India, which means there is a huge scope for a variety of produce.
  • Availability of cheap labour and large manpower.
  • The green revolution demonstrated India’s capabilities in self-sufficiency.
  • More than 150 million hectares of cultivable land, the second largest in the world after the US.
  • Government’s push to double farmers’ income.

Weaknesses:

  • Unskilled manpower.
  • Lack of infrastructures like cold storage and warehouses.
  • Distorted cultivation regime, dominated by cereals.
  • Small land holdings.
  • Regressive farm-related acts and lack of reforms.
  • Packaging, grading, and quality assessment not developed.

Opportunities:

  • Increase farmer’s income and crop insurance via contract farming.
  • Value-added export of commodities can bring more forex to India.
  • Proper utilization of demographic dividend.
  • Manage food inflation.
  • Provide food security and nutritional security.

Threat:

  • Protectionist measures taken by various countries like US and China, dumping duty imposed on Indian commodities.
  • Competition with other countries.
  • Sanitary and phytosanitary measures.

Way forward

The government needs to take steps to address the weaknesses, manage threats, and capitalize on the opportunities provided by the strengths of this food processing sector.

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