Agripreneurship and the food processing industry can boost the Indian economy by raising agricultural yields, enhancing productivity, and improving livelihoods. The food processing industry contributes significantly to India's GDP and revenue generation. However, India's share of the global processed food market remains only 1.17% while countries like the US, Netherlands, France and Germany have larger shares. There is potential to increase India's exports and investments in food processing.

2. Agriculture is scaling new heights by focusing
on diversification, value addition, hi-tech
farming, precision and organic farming,
agribusiness etc
 Agricultural based entrepreneurship or
Agripreneurship, brings professionalisation
and commercialisation in Indian agriculture,
boosting agribusiness in primary, secondary
and tertiary sectors
Agripreneurship in Food Processing Industry
brings immense benefits to the economy by
raising agricultural yields, enhancing
productivity, creating employment
opportunities and improving the standard of
living of people

3. •PRODUCTION
•PROCESS
(LAND, LABOUR,
ENVIRONMENT)
•CONSUMPTION
SUPPLIES OF
PRODUCTION
INPUTS
•FERTILIZERS
•OTHER CHEMICALS
•MACHINERY
RESEARCH AND
EDUCATION
•BREEDING
•PEST AND DISEASE
MANAGEMENT
•MECHANISATION
•PROCESSING
•EXTENSION AND
FEEDBACK
PRODUCTION
PROCESS
•LAND
•LABOUR
•ENVIRONMENT
•MACHINERY
•CHEMICALS
•IRRIGATION/
DRAINAGE
MANAGEMENT MARKETING
PROCESS
•STORAGE
•PROCESSING
•PACKAGING
•TRANSPORTING
C
O
N
S
U
M
P
T
I
O
N
AGRIBUSINESSTRADITIONAL
AGRICULTURE
TRANSFORMATION

4.  Examine the nascent areas of agripreneurial development in
India
 Analyse the performance of Food Processing Industry in India in
terms of
• revenue generation
• contribution to GDP
• value of export and
• FDI in India

5.  The study is based on secondary data through review of the
relevant literature related to agripreneurship, agribusiness and
food processing industry
 Data sources include data drawn from National Sample Survey
Organisation (NSSO), Annual Survey of Industries (ASI) reports,
Annual Reports of Ministry of Food Processing Industry
(MOFPI), CSO, FICCI, APEDA, IBEF, Department of Agriculture
& Cooperation, DIPP, National Accounts Statistics etc
 Percentage analysis along with relevant tables and graphs were
used to support the data consolidation, presentation and
interpretations

8. (i) Input Management
 Livestock feed, fodder
 Machineries and equipments
 Fertilizers, pesticides
(ii) Agro Infrastructure
 Transport and communication services
 Power, irrigation, diesel
 Cool chain infrastructure, cold storages devices
(iii) Agro based Production
 High-yield varieties of seeds
 Floriculture, Horticulture, Pisciculture, Fisheries
 Animal husbandry, Livestock, Dairy farming

9. (iv) Agri Processing
 Fruit processing - jams, squash, canned fruits
 Sugarcane processed- sugar grains, candies, jaggery
 Dairy products- curd, butter, milk powder, ghee
(v) Trade and Others
 Contract farming, Cooperative farming
 Retailing of agricultural products
 Value chain management and marketing logistics
(vi) Agri Marketing and Agri Services
 Agricultural finance and Insurance
 Transportation
 Storage and warehousing
 Sorting, grading, standardisation,
 Packaging, labeling, advertising

10. (vii) Agri Science and Technology
 Agro climate studies
 Disaster Management
 Pre harvest and post harvest technology
(viii) Agri Management
 Input management
 Farm management
 Finance Management
 Risk Management
 Production management
 Agricultural Marketing Management

11. Sectorial-wise Classification of Food Processing Industry
Sectors Products
Commodity Sugar, Food Grains, Spices, Edible Oils
Dairy
Whole Milk Powder, Skimmed milk powder, Condensed
milk, Ice cream, Butter and Ghee, Cheese
Fruits & Vegetables
Beverages, Juices, Concentrates, Pulps, Slices, Frozen &
Dehydrated products, Potato Wafers/Chips, etc
Grains & Cereals
Flour, Bakeries, Starch Glucose, Cornflakes, Malted Foods,
Vermicelli, Beer and Malt extracts, Grain based Alcohol
Fisheries Frozen & Canned products mainly in fresh form
Meat & Poultry Frozen and packed - mainly in fresh form, Egg Powder
Convenience Food
Snack food, Namkeens, Biscuits, Ready to Eat food,
Alcoholic and Non-alcoholic beverages

12. Sector Primary Processed Products Value Added Products
Agriculture
Milled Grains, Spices
Beverages, Ready to Eat or Cook/
Drink Products/ Bakery Product,
Processed Dry Fruit
Fruits and Vegetable
Tea and Coffee
Sugar Confectionery
Edible Oil (Depending on Processing Level)
Livestock,
Dairy and
Poultry
Milk
Milk Powder, Ghee, Butter,
Cheese, Ice Cream
Eggs, Meat
Egg Powder, Packaged Meat and
Preparations
Fisheries Processed Aquatic Food (Depending on Processing Level)
Sector-wise Categorisation of
Primary Processed and Value Added Products

15. Source: MOSPI Annual Report, 2011-12.

16. Source: Government of India, Ministry of Statistics and Programme Implementation (2010)
Share of Major Components of Food Processing Industry in Revenue Generation

17. Sl.
No
Industry 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
2010-11
(Q)
2011-12
(R)
I Agriculture,
Forestry,
Fishing
19.0 18.3 17.4 16.8 15.8 14.7 14.5 14.0
Agriculture 16.0 15.5 14.7 14.3 13.4 12.4 12.3 -----
Forestry and
Logging 2.1 1.9 1.8 1.7 1.6 1.5 1.4 -----
Fishing 0.9 0.9 0.9 0.8 0.8 0.8 0.7 -----
II Industry 27.9 28.0 28.7 28.7 28.1 28.1 27.8 27.0
III Services 53.0 53.7 54.0 54.4 56.1 57.2 57.7 59.0
GDP at Factor
Cost 100 100 100 100 100 100 100 100
Table: 1 Percentage Share of GDP at 2004-05 Prices (Rs in Crore)
Source: Central Statistics Office, Govt. of India. Q- Quick Estimates R-Revised Estimates

18. Export Share of Various Countries in the World Processed Food Market
Source: National Manufacturing Competitiveness Council, GOI, 2009

19. Sl.
No
Item
2008-09 2009-10 2010-11
Qty. Value Qty. Value Qty. Value
1
Cotton Raw
incl. waste 457.56 2865.85 1357.99 9537.08 1258.09 12981.04
2
Marine
products 465.00 7066.37 709.88 9899.98 800.95 11547.97
3 Oil Meals 6742.93 10269.24 4671.13 7831.79 6797.86 10845.91
4 Rice Basmati 1556.41 9477.03 2016.87 10889.6 2186.45 10581.51
5 Sugar 3332.08 4448.74 44.74 110.21 3241.34 10339.01
Source: Annual Report- 2011-12, Department of Agriculture & Cooperation, Ministry of Agriculture, GOI.
Table: 2 Top Five Agricultural Exports of India- from 2008-11.

20. Sl.
No
Item
2008-09 2009-10 2010-11
Qty. Value Qty. Value Qty. Value
1
Vegetable Oils Fixed
Edible 6719.35 15837.46 8033.92 26483.3 6717.72 29442.11
2 Pulses 2474.11 6246.39 3509.58 9813.37 2591.25 6979.95
3
Fruits & Nuts
(excl. Cashew nuts) ------ 2372.89 ------- 2873.15 ------- 3684.25
4 Sugar 386.10 583.16 2551.14 5965.8 1198.38 2787.27
5 Cashew Nuts 614.46 2672.42 755.96 3047.5 504.14 2479.75
Source: Department of Agriculture & Cooperation, Ministry of Agriculture, GOI, 2011-12
Table: 3 Top Five Agricultural Imports of India- from 2008-11

21. Particulars 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
CAGR
(5Years)
GDP at Factor
Cost
29,71,464 32,53,073 35,64,364 38,96,636 41,58,676 45,16,071 49,37,006 52,43,582 8.0
1.GDP
Agriculture*
5,03,786 5,31,745 5,54,395 5,89,383 5,88,757 5,92,110 6,43,111 6,67,446 3.8
2.GDP
Manufacturing
4,53,225 4,99,021 5,70,458 6,29,073 6,56,302 7,30,435 8,01,477 8,23,023 7.6
3.GDP – FPI 44,355 47,689 52,161 57,320 60,378 58,752 67,508 78,094 8.4
Registered 22,148 26,780 30,709 34,753 39,253 37,813 45,042 51,877 11.1
Unregistered 22,207 20,910 21,453 22,568 21,125 20,939 22,467 26,217 4.1
Source: National Accounts Statistics, 2013 Compound Annual Growth Rate (CAGR)
*Excludes Forestry & logging
Table: 4 Contribution of Food Processing Industry (FPI) to GDP at 2004-05 Prices
(Value in Crore)

22. Source: DGCIS
Value of Export of Food Processing

23. Sector
Amount of FDI Inflow
% Share of
Total FDI
In Crores In US$ million
1 Food Processing Industries 5872.16 1286.53 0.89
2 Fermentation Industries 4269.92 979.74 0.65
3 Vegetable Oils and Vanaspathi 1103.22 238.72 0.17
4 Tea and Coffee 446.61 99.38 0.07
Total Food Processing Sector 11691.91 2604.37 1.78
Total FDI 658586.43 147088.13 100
Table: 5 Foreign Direct Investments in Food Processing Sector from April 2000 to August 2011
Source: Department of Industrial Policy and Promotion, Ministry of Commerce.
Note: Data includes some investment for rubber, which is not a food processing industry

24.  The share of major components of food processing industry in
revenue generation during the year 2010 shows that Food grain
milling has the highest share in revenue generation followed by bread
and bakery, dairy products, meat and poultry, soft drinks etc
 The percentage share of agriculture in Indian GDP has been
decreasing and that of service sector is on a rising trend
 USA has the highest share in the world food processed market with
10.57%. Netherlands, France and Germany have a share of 7.91%,
7.72% and 6.09% respectively and India’s share in the world food
processing market is 1.17%

25. Top 5 commodities exported from India - Raw cotton,
marine products, oil meals, basmathi rice and sugar
Top 5 agricultural imports of the commodities - vegetable
oil, pulses, fruits and nuts, sugar and cashew nuts
The percentage share of amount of FDI inflows to total
FDI was 0.89% in the case of food processing industries,
the total FPI share to total FDI is 1.78%
Major
Findings
(Contd…..)

26.  Agripreneurship could play a key role in the revamping Indian agro
based sectors by giving special emphasis on the promotion of food
processing sector
 India is among the world’s major producers of food products and
Food Processing Industry can be a key in boosting the economic
growth of the country
 It is in the top position in the production of cereals, livestock, milk,
fruit and vegetables
 Good investment opportunities exist in areas of food processing
industries like fruit & vegetable processing, meat, fish & poultry
processing, packaged, convenience food and drinks, milk products
etc