India’s food production has hit record levels, but challenges around post-harvest losses, sustainability, and equitable growth persist. This piece explores how innovation in processing, eco-friendly packaging, and government-backed schemes like PMFME and PLI are reshaping the sector—ensuring that the journey from farm to fork is not just efficient, but also inclusive and climate-conscious.
Over the last two decades, India has witnessed a remarkable transformation in agricultural output. Backed by consistent advancements in agri-research, expanded irrigation networks, and strong policy support, the country has scaled up its food production significantly. As per the Ministry of Agriculture’s Third Advance Estimates, India achieved a record foodgrain output of 330.5 million tonnes in 2022–23, reinforcing its standing among the world’s top agricultural producers. This surge in production has been vital in keeping pace with the demands of a growing population and ensuring basic food availability.
Yet, while production is no longer the primary bottleneck, the bigger challenge now lies in ensuring that this food reaches people in a safe, nutritious, and sustainable manner. This is where the food processing sector plays a critical role. From extending shelf life to adding nutritional value and reducing waste, processing has the potential to drastically improve food security. However, India continues to suffer substantial post-harvest losses—up to 30–40% in perishables like fruits and vegetables—largely due to inadequate cold chains, poor logistics, and limited value addition at the source.
To overcome these hurdles, the focus must now shift towards building a resilient, inclusive, and environmentally conscious food processing ecosystem. Climate change has added a new dimension to this urgency. From rising energy costs to plastic waste, the environmental toll of food processing must be addressed. This calls for investment not just in infrastructure, but also in climate-smart practices, energy-efficient technologies, and greener alternatives in packaging.
Innovation is already reshaping the food value chain. Robotics and automation in processing lines have brought precision and consistency. Artificial Intelligence (AI) and machine learning are being deployed for quality checks, predictive maintenance, and inventory management. Meanwhile, the growth of cold storage networks and climate-controlled logistics is helping curb wastage in transit.
Yet, access to these technologies remains uneven. While larger firms and corporates have begun integrating advanced tools, smaller players—especially micro and small enterprises—often operate without them. The challenge, therefore, is not the availability of technology, but its affordability, scalability, and reach.
Among all facets of food processing, packaging stands out as both a necessity and a concern. Traditional plastic packaging, while inexpensive and effective, has become a major environmental hazard. India generates over 3.4 million tonnes of plastic waste annually, much of it from food-related packaging.
The transition to eco-friendly materials—like compostable bioplastics, recyclable film composites, and smart packaging—is no longer optional. These innovations not only reduce environmental harm but also improve product traceability, freshness monitoring, and consumer confidence. The global market for smart packaging is projected to reach USD 43.6 billion by 2027, according to industry research, reflecting its growing adoption across sectors.
While Indian startups and packaging companies have begun to explore such options, the high cost of sustainable materials and limited manufacturing capacity still pose challenges. The way forward lies in incentivising local R&D, strengthening supply chains for sustainable inputs, and encouraging large buyers to adopt responsible sourcing practices.
India’s food ecosystem is vast and deeply decentralised, with micro and small enterprises forming the backbone of rural food economies. However, these grassroots players often face barriers such as limited access to capital, technology, and formal markets. Recognising this, the government—through the Ministry of Food Processing Industries (MoFPI)—has launched several initiatives to support and formalise the sector.
The PM Formalisation of Micro Food Processing Enterprises (PMFME) scheme, along with the Production Linked Incentive (PLI) scheme, has together supported over 1.4 lakh micro units across the country. While PMFME focuses on providing micro enterprises with access to credit, training, branding, and marketing support, the PLI scheme is aimed at incentivising food processing sector and expand capacity. Together, these complementary efforts are helping bridge the formal-informal divide and promote a more inclusive and resilient growth model within India’s food processing sector.
At the same time, infrastructure development has received a significant push. India now boasts 24 operational Mega Food Parks with a cumulative processing capacity exceeding 4 million metric tonnes, along with 71 agro-processing clusters, nearly 400 cold chain projects, and over 200 food testing laboratories across the country.
More than 1,700 projects have been sanctioned under various government programs, backed by over ₹6,700 crore in subsidies, and have leveraged an estimated ₹30,000 cr in private investment. These efforts are laying the groundwork for a robust and efficient processing ecosystem. Yet, beyond infrastructure and funding, there is a need for a stronger culture of knowledge-sharing—one that connects policymakers, innovators, and industry veterans with grassroots entrepreneurs to ensure technology and best practices reach the last mile.
India is uniquely placed to become a global hub for value-added food products. It already has the agricultural base, a growing domestic market, and an emerging ecosystem of innovation. But to realise this potential, we must ensure that the growth of food processing is balanced, sustainable, and inclusive.
Platforms that encourage dialogue between government and industry, and between innovators and implementers, are essential. They will help ensure that best practices travel downstream, and that smaller enterprises are not left behind.
Ultimately, the next phase of India’s food journey isn’t just about growing more—it’s about growing better. About processing with purpose, packaging with care, and ensuring that every link in the value chain is strengthened. That’s how India will not only feed itself—but also nourish the world.
Shri Devesh Deval, Joint Secretary, Ministry of Food Processing Industries.
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