Food Processing Investment Needed: Secretary Joshi

New Delhi, Dec 4 (PTI) Food Processing Secretary A P Das Joshi on Thursday asked corporates to invest more in the sector to enhance the processing level from the current low of 12 per cent and also boost exports of processed food items.

Addressing a CII event here, the secretary emphasised the need to dispel the myth that processed food is inherently bad.

He also highlighted that the labour codes would benefit the sector.

Joshi said that the issues related to the HFSS (High fat, sugar, salt) and FOPNL (Front-of-pack nutrition labelling) are under "very, very active consideration of the government" and there could be some decision in the near future.

He was addressing a session on 'Scaling Food Processing for Rural Prosperity and Jobs' organised as part of the CII IndiaEdge 2025.

"We have 24 lakh units across the country, and only 2 per cent are organised. I look forward to a higher level of investment from the captains of the industry," Joshi said, adding that there is a huge scope for FDI and private domestic investment.

He also emphasised the need for formalisation of the informal.

"Whatever you process ultimately comes from lakhs of farmers. So whenever we are doing the value addition, a part of it goes to the farmers. So rural prosperity, it is necessary that we increase the processing level. We process hardly 12 per cent of our food. We produce so much, but when we talk about the processing, we are not even nearby to countries like the Philippines and Thailand, forget about the EU and the US," he said.

The secretary noted that the share of processed food in total agriculture exports has increased to 22 per cent from 11 per cent in 2014-15.

He said the share could reach 30-32 per cent by 2020 as there is "unlimited scope" for growth in the food processing sector.

Talking about labour codes, Joshi said the reform is very inclusive and will benefit food processing sectors, which are labour intensive.

He said the labour codes are "worker-friendly, industry-friendly, and overall, it is growth-friendly."

"Sometimes we have to undergo the changes so that we can achieve the higher heights or the higher performance," Joshi said.

Piruz Khambatta, Chairman at CII National Committee on Taxation, and Chairman & Managing Director at Rasna Group, demanded the constitution of the Citrus Development Board, and the enactment of the Model Food Processing Policy.

"Every plate in the world should have something from India. Our country has the diversity, capability, and entrepreneurial spirit to make that a reality. Food processing is not just an industry, it is a powerful engine for rural job creation, value addition, and innovation," he said.

To truly unlock India's potential, he suggested support for semi-processed foods, which can dramatically enhance farmer incomes, reduce wastage, and open new market opportunities.