Module 1. Status of food processing industry and future prospects

Lesson 5

RECENT DEVELOPMENTS AND FUTURE GROWTH IN THE FOOD INDUSTRY

5.1  Introduction

Though we rank second in world scenario in terms of total production of fruits and vegetables, India needs to further improve its food processing strategies in order to reduce the extent of spoilage, go for large scale food processing to make processing viable and cost-effective and even compete with foreign goods available in India.

5.2  Recent Developments in Food Industry

The food industry has always strived to be in consonance with the latest developments that have taken place in the food processing. Some of the aspects that have improved by adopting the latest technologies include freshness, value addition, preservation of nutrient profile, varied flavor and textures, shelf life, etc.

The recent developments that have been adopted by the food industry include:

(a)    Minimal processing of fruits and vegetables using non-thermal processing methods like High Pressure Processing, Pulsed electric field processing, etc.

(b)   Membrane processing viz., Ultrafiltration (UF), Reverse Osmosis (RO), Nanofiltration (NF), Microfiltration (MF), etc.

UF and RO can be used to concentrate milk, whey, fruit juices, etc. NF can be used to demineralize whey to produce demineralized whey powder. MF has been used in preparing ‘Extended Shelf Life Milk.

(c)    Osmotic dehydration

This is used to reduce the water content of fruit tissues, thus enhancing the shelf life of product.

(d)   Freeze concentration and freeze drying of foods

Freeze concentration can be used to concentrate fruit juice solids without impairing its flavor, color and nutritive value. Freeze drying is specifically used for heat sensitive foods like fruit juices, starter cultures.

(e)    Use of Extrusion cookers

Extrusion cookers are being used to prepare an assorted range of snack foods using multigrain.

(f)    Use of biotechnology

‘Golden rice’ made using genetic technology is an example of value-added rice rich in β-carotene (thus vitamin A) and iron. Recombinant chymosin is a classic example of rennet used for coagulating milk in cheese making.

(g)   Fermentation of foods, especially probiotic and synbiotic food products

Fermented milk products containing live probiotic organisms (viz., Lb. acidophilus, B. bifidum) in high numbers (i.e. > 108/g) is referred to as ‘Probiotic food’, while inclusion of a prebiotic (food for probiotics) like fructo-oligosaccharides, inulin, etc. makes the product ‘Synbiotic’.

(h)   Functional foods by use of phytonutrients

These are foods containing valued ingredients from plant sources (viz., epigallo catechin gallate, β-carotene, glucan (a soluble dietary fiber), etc. that can exert beneficial therapeutic effects in humans.

(i)     Irradiation of foods

This is a non-thermal preservation method specifically used for sprout inhibition of potatoes, deinfestation of spices, increase shelf life of sea foods and even fruit and vegetables. Dosage of irradiation below 7 KGy (Kilogray) is considered safe.

(j)     Use of microwaves for drying

This is a very rapid drying technique using energy from microwaves.

5.3  The Major Indian and Overseas Players in Food Processing Industry

The Companies that have established their brands in India and some of their recently launched food products are as follows:

Sr. No.

Name of the Company

Recent food product

1.

ITC Limited

Multigrain (Barley, Oat, Raagi, Jowar, Corn, Wheat) biscuit with enriched vitamins and proteins

2.

Parle Products Pvt. Ltd.

Hide and Seek Milano – exotic cookie in four flavours Chocolate chip, Butter nut, Butterscotch, Butternut

3.

Agro Tech Foods

Peanut butter, Act II Microwave Popcorn

4.

Amul

Long shelf life Amul Taaza UHT milk, Gulabjamun mix powder

5.

Perfetti India Ltd.

Happy dent Protex sugar-free Chewing gum

6.

Cadbury India Ltd.

Truffle – soft centre moulded chocolate bars.

7.

PepsiCo India Holdings

Baked variants ‘Aliva’ brand – Multigrain waves, Milk Minis, Crispy Thinz

8.

Nestle India Pvt. Ltd.

Sweet lassi, Actiplus Probiotic Dahi

9.

Britannia Industries Ltd.

Milk based health drinks – Actimind and Tiger Zor flavored milk

10.

Hindustan Lever Limited

Blend of fruit juice and soya milk, Bakery – Chapi and Cream Rolls

11.

Parag Milk Foods

‘Go Dahi’ – Frozen Yoghurt

12.

MTR foods limited

Frozen foods range – Spring rolls, Parathas, Dosas, Samosas

13.

Godrej industries Limited

Xs range of fruit juices – Sweet Orange, Mango, Litchi, Pineapple

14.

Gits Food Products Pvt. Ltd

Dairy Whitener, Gulabjamun mix powder

15.

Dabur India Ltd.

Fruit flavored Chyawanprash – Orange and Mango

 

5.4  New Product Development

Some of the recent product launched in India is presented in Table 5.1.

Table 5.1 Recent products launched in India by renowned companies

Product

Company

Lonong and Devil Curry flavoured special noodles

Nestle

Peanut butter for export

Pepsi Foods Ltd.

Ethnic convenience foods – natural food with claim “As good as Mother makes it”

Pure and Natural Foods Pvt. Ltd., Mysore

Ready to Serve Dal targeted at busy executive class of consumers

Tetra Pak India Ltd., Pune

Ready-to-Eat Chappati, packaged as Annapurna Chappati

Hindustan Lever Ltd., Mumbai

5.5  Infrastructure Development in Food Processing Industry

The MOFPI has taken lot of steps by launching several schemes to improve the growth of Indian food processing industries. Some of these schemes are as detailed below.

5.5.1  Food parks

Food Parks have been set up in different parts of the country so that small and medium entrepreneurs can invest in capital intensive activities. In Food parks, common facilities like cold storage, food testing and analytical lab, effluent treatment plants, common processing facilities, packaging centre, power supply, water supply, seminar/conference/training facilities, etc. has been assisted with an outlay of ` 1.04 billion. The number of Food Parks sanctioned in the 8th, 9th and 10th Plan were 2, 39 and 10 respectively; 22 Food Parks have been operational till 2005.

5.5.2 Packaging centers

The Scheme provides facilities for packaging, which may help in enhancement of shelf life of food products and make them internationally acceptable. An assistance of `1450 million has been sanctioned to one packing centre in Jammu and Kashmir.

5.5.3  Integrated cold chain facility

The Scheme intends to improve the viability of cold storages and enhance cold storage capacity. The Tenth Plan has sanctioned an assistance of ` 4010 million to three cold storages in Gujarat, three in Maharashtra, one each in Uttar Pradesh, Kerala, Manipur, Meghalaya, Andhra Pradesh, Haryana, Delhi and Goa. Previously, 9th Plan had established 53 cold storages all over India.

5.5.4  Irradiation facility

This has been provided to enhance the shelf life of food product through irradiation techniques by preventing infestations like in flour, sprouting and change in chemical composition of the product (e.g. in potato). So far four irradiation projects – two in Maharashtra and one each in West Bengal and Haryana have been sanctioned with an assistance of ` 78.9 million.

5.5.5  Modernized abattoirs

The Scheme aims to make possible scientific and hygienic slaughter, causing least pain to the cattle and ensuring better byproduct utilization. One case of MCD, Delhi has been approved for grant of ` 40 million.

5.6  Avenues for Further Upliftment of Food Processing Industry

The contract farming should be encouraged to ensure the availability of right type of raw materials to the industry. Development of captive orchards should be encouraged by liberalizing the State Land Laws and treating horticulture at par with plantation crops with attendant incentives.

Development of appropriate genetic varieties would not only increase the yield, but also enable growing of that food which can best be preserved to meet the needs of the growing population. In this regard, the steps taken by certain companies particularly in the matter of tomatoes, sunflower and gherkins are very encouraging.

5.7  Future of the Food Industry

The Indian Food Processing Industry has seen significant growth and changes over the past few years, driven by changing trends in the market, consumer segments and regulations. These trends such as changing demographics, growing population and rapid urabanization are expected to continue in the future and therefore will shape the demand for value added products and thus for food processing industry in India. The Government of India is attracting more Foreign Direct Investments (FDI) too.

The market forces are compelling the Indian Agriculture producers to increase the quality of their farm produce while continuing to maintain their cost competitiveness in order to be able to compete effectively in the global food market. Even in the domestic market, the rising per capita income and changing demographic profiles of the population has ensured the growing demand for processed and convenience foods. Increasing consumer awareness about health and hygiene has shifted the focus of the market to ‘safe’ foods.  In the field of processed foods, bigger opportunities lie in soft drinks, liquid milk and dairy products, confectionery, packaged wheat flour, biscuits, processed meat and poultry, tea and coffee than that of jams, sauces, etc.