Development potential of food processing industry in Punjab

The state is emerging as hub of food processing industry. Large multi-nationals including Nestle, Danone, Cargil, ITC and Walmart have already setup base in the state and are enjoying rich dividends. Food processing and value addition have great scope for reducing wastage, accelerating agricultural growth and improving economy of the state. This paper provides an insight into the food processing industry of Punjab, its growth prospects and employment opportunities. According to the latest Annual Survey of Industries (ASI) in 2014-15, the GDP of food processing industry as share of GDP in agriculture has gone up to 5.6 per cent in 2014-15 from 4.5 per cent in 2010-11. Out of total food processing industry, the highest share of 36.72 per cent of the registered food processing industry in Punjab is in the manufacture of grain mill products, followed by 35.08 per cent in manufacturing of beverages, 8.15 per cent in fruit & vegetables and 7.94 per cent in dairy products. Food processing industry provides plenty of direct and indirect employment opportunities because it acts as bridge between agriculture and manufacturing. The total number of persons engaged in food processing sector in Punjab is 18 per cent of manufacturing sector. The state needs to strengthen its efforts in S&T capability, infrastructure support and capacity building of youth in order to develop food processing industry. There is a need to provide adequate financial support i.e. subsidies to young entrepreneurs for establishing more food parks and agri-product export zones.