The food processing industry in Gujarat is rapidly becoming a hub of opportunities, driven by the State’s strategic initiatives and rich agricultural landscape. This article explores the key prospects and growth areas within Gujarat’s thriving food processing sector.
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India holds the top position globally in the production of pulses and milk and ranks prominently in vegetables, fruits, wheat, rice, cereals, and eggs, as per FAOSTAT estimates. The Indian food processing sector has experienced remarkable growth, averaging over 9% annually since 2014-15, showcasing its substantial potential and economic contribution.
Gujarat: A Land of Agricultural Abundance
Situated in Western India, Gujarat boasts eight agro-climatic zones and diverse landscapes conducive to year-round crop cultivation. With a gross sown area of 138.16 lakh hectares, the State is a dominant force in agriculture, projecting substantial agricultural dominance until 2040. The extensive 1,600-kilometer coastline and 42 ports further enhance Gujarat’s position as a key player in the agricultural sector.
Agricultural Strength and Development Focus
Food processing sector in Gujarat has witnessed remarkable growth, with a Gross Value Addition (GVA) increasing from INR 1.34 Lakh Crore in 2014-15 to INR 2.37 Lakh Crore in 2020-21. This sector contributes significantly to manufacturing and agriculture, accounting for 10.54% and 11.57% of GVA, respectively, in the fiscal year 2020-21.
Processed Food Exports and Industrial Prowess
Gujarat plays a crucial role in India’s overall exports, contributing over 20%. It is also the fourth-largest State in milk production, home to the renowned Amul. The State’s industrial prowess, diverse climate, and robust infrastructure make it a prominent industrial hub, attracting investments and fostering growth.
Promising Opportunities in Gujarat’s Food Processing Industry
Gujarat offers substantial opportunities in dairy, fruits and vegetables, and spices processing. The State ranks high in producing chikoo, pomegranate, papaya, lemon, coriander, banana, and brinjal. Geographical indicator tags for Gir Kesar Mango and Bhalia Wheat further highlight the State’s agricultural excellence.
Fruits and Vegetables: Opportunities in Gujarat
Gujarat is the 5th largest producer of fruits and the 6th largest producer of vegetables in the country, which provides the State with the potential to operate and augment the food processing sector. The State’s total fruit production is 82.60 lakh MT, and total vegetable production is 15.99 lakh MT.65
Major fruit crops include papaya, banana, lemon, pomegranate, and gooseberry, with bananas contributing 48% of the total production. Onion and potato are the significant vegetables produced in Gujarat. Other vegetables include okra (lady’s finger), cabbage, and tomato.
Value-added processing items from local produce: The production of ready-to-eat meals, tetra pack juices, jelly, jams, squash, flavouring essence, and various forms of processed and packaged fruits.
Ready-to-eat products: Gujarat offers potential for dehydrated fruit chips and vegetable crisps, catering to the growing demand for healthy and convenient snacks.
Value-added products: There are opportunities to produce purees and salad dressings, catering to restaurants, fast-food services, and the packaged retail food sector.
Dairy Processing Industry in Gujarat
As the country’s fourth-largest milk producer, Gujarat’s dairy sector, led by Amul, provides opportunities for various value-added products. These include cheese, paneer, ghee, yoghurt, ice cream, and traditional milk products. Innovations in high-pressure technologies and sustainable dairy protein ingredient development open new avenues for growth.
Value-added products: There is vast potential for producing Cheese, Paneer, Ghee, Yogurt, Baby Food, Skimmed Milk Powder, Milk Powder, Ready-To-Drink Chaach, Lassi (buttermilk), Ice-cream, and traditional milk products, such as Sandesh, Payasam, Burfi, Dahi, Rasogolla, Srikhand, Kulfi, Probiotic Drinks, etc.
Innovation opportunities: Gujarat offers opportunities for innovation in high-pressure technologies to develop clean-label dairy products. Additionally, exploring Cold microfiltration as an enabler of sustainable dairy protein ingredient innovation can open up new avenues for growth in the dairy sector.
Ready-to-Eat and Ready-to-Cook Products
Gujarat’s rich culinary heritage offers excellent prospects for ready-to-eat (RTE) and ready-to-cook (RTC) products, focusing on traditional food items like Dhokla and Phaphda. Investments in integrated units, ready-to-eat snacks, ready-to-cook kits, and value-added products can cater to the increasing demand for convenient and traditional food options.
Ready-to-Eat Snacks: Developing a range of ready-to-eat snacks, including packaged Dhokla, Phaphda, Khandvi, Thepla, and other traditional Gujarati delicacies, can cater to the increasing demand for convenient and traditional food options.
Ready-to-Cook Kits: Offering ready-to-cook kits that contain pre-measured ingredients and easy-to-follow recipes for preparing Gujarati dishes at home can attract busy individuals and those looking for an authentic cooking experience.
Value-added Products: Exploring innovative value-added products based on traditional Gujarati food, such as frozen Dhokla or Phaphda, microwaveable Khaman, or flavored varieties of Thepla, Khakhra, can appeal to consumers seeking convenient yet traditional meal options.
Gujarat Government Initiatives and Schemes
The Gujarat State Government has implemented investor-friendly reforms, including a Single Window Portal and a State Industrial Land Bank. Additionally, schemes like “Saat Pagla Khedut Kalyanna” and the Start-up Policy support farmers and promote innovation in the food processing sector.
Single Window Portal (Gujarat Investor Facilitation Portal)
The Gujarat Investor Facilitation Portal is a comprehensive platform where investors can conveniently access and apply for all State-related business approvals based on their specific requirements. Its purpose is to support investors by facilitating a transparent, efficient, and convenient process free of unnecessary complications.
State Industrial Land Bank
A GIS (Geographic Information System) system for displaying the availability of land and infrastructure with details about all State-owned industrial estates along with the prevailing land rates, connectivity, and utility infrastructure.
Central Industrial Land Bank Portal
The India Industrial Land Bank portal covering industrial parks is a one-stop repository of all infrastructure-related information, such as connectivity, infra, natural resources and terrain, plot-level information on vacant plots, and contact details.
Scheme for assistance for Start-up
The Government of Gujarat introduced the Start-up Policy in August 2020 as part of the Scheme for Assistance for Start-up/Innovation 2020. This initiative aims to promote and support start-ups while bolstering the overall ecosystem in the State of Gujarat. As part of this policy, the government provides incentives, specifically seed support. Start-ups can receive support of up to INR 30 Lakhs based on their expenditure on market research, testing, and trials and the cost of raw materials.
Conclusion
With its proactive approach, robust foundation, and supportive government initiatives, Gujarat stands as a dynamic hub for innovation, value addition, and sustainable growth in the food processing industry. As the State continues to capitalize on its promising opportunities, it is poised to play a pivotal role in shaping the future of India’s food processing landscape.
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KEY CONTACT:
Gujarat Industrial Development Corporation,
Block 3,4,5, Udhyog Bhavan, Sector-11, Gandhinagar-382011, Gujarat, India.
Tel: +91 79 23250636 | https://gidc.gujarat.gov.in | Email: gidc@gujarat.gov.in
Directorate of Agriculture, Gujarat
Sector- 10 A, CH Road, Krishi Bhavan, Gandhinagar, Gujarat, India.
Tel: 91- 079-23256116 | https://dag.gujarat.gov.in | Email: jtdir-agr-ahd@gujarat.gov.in
