Commercial Food

Processing Opportunities
Dr. N.Varadharaju
Professor & Head
Post Harvest Technology Centre
Agricultural Engineering College & Research Institute
Tamil Nadu Agricultural University
Coimbatore 641003

Need for Food processing

Food production in India to double in the next ten

years.

India will add more than 500 million people in the 40

years.

Today the total food market is approximately US$

69,444 million.

Consumption of value added processed food to treble

Food is one of the highest economic multipliers

among Indian industries

Contd

Today value addition to food production is only 7 per

cent

India has the potential to become the largest food

factory

Value added foods produced from the food

industries would reach Rs. 2,75,000 crores by 2010

Investment Opportunities

Diverse agro-climatic condition, it has a wide range and large raw
material suitable for food processing sector

Biggest emerging sector to market over 1billion population

50 per cent of population are under 30 years
250 to 300 million are in middle class

Per capita consumption levels of processes foods are low

Demand for convenience foods
Increased female literacy
Increased number of working women

Contd.

 Institutional & Tourism sectors



Hotels, Airlines, Hospitals and Defence Services

 Government accord high priority

 Investment reforms

Agriculture In India
Contributes 29.1% to GDP
69% of work force depends on Agriculture
 22 % of export from agricultural products

Major Achievements
 Self sufficient in food grain production (210 million tones)
 Ranks second in fruits (48 million tones) and vegetable
production (98 million tones)

 Largest producer of milk (72 million tons )

Food Processing Sector

White Revolution
Green Revolution

Blue Revolutio

Yellow Revolution
(Post Harvest Processing)

India- worlds largest food factory- over

27,500 units (both large and small)

Post Harvest Losses

Food grain sector

: 812%

Fruits and vegetable : 2030 %

Pre-harvest Factors

3-5%

Harvest

2-5 %

Packaging

3-6 %

Transport

1-4 %

Storage

4-8 %

Processing

1-5 %

Handling

1-5 %

Urban Distribution

2-8 %

Total Losses

18-48 %

Important Sub sectors








Cereals & pulse processing

Fruit & Vegetable Processing
Milk Processing
Meat & Poultry
Packaged & Convenience Food
Alcoholic & Non Alcoholic Beverage

Progress of Fruits and Vegetable

Industry in India

Particulars
Production of processed Foods
(Lakh tons)

2000

2005

9.9

12.5

Installed capacity (Lakh tons)

22.0

29.0

No. of Licenses issued under FPO

5293

5856

Reasons for Under Utilization of Processed

Foods in India

High cost of processed foods

Low quality raw material affecting the final quality
of processed foods

Prevailing rules and regulation and high tax for

processed foods

Contd.

Lack of knowledge about process,

equipment & technology

Lack of proper infrastructure like electricity,

good quality water, communication facilities,
etc.

Inadequate cold storage and refrigerated

facility

Market Needs
Domestic Market
Factors Triggering

Potential for New Products

Increasing nuclearisation of
families

Convenience Foods, semi cooked

Increasing number of working

women

Ready to cook / eat foods

Changing role of Women

Organic foods, Natural Colours,

Flavours, Neutraceuticals,

Increased health consciousness

Fortified foods, Energy Foods, Low

Fat Foods, Sprouted Foods

Changing Retailing System

Packed & Branded Commodities

Export Market
Competitiveness for Indian fresh and
processed foods
 Increasing number of Indian population
in foreign countries
 Acceptance of Indian Food in Foreign
Markets

APEDAs SCHEDULED PRODUCTS
















Fruits, Vegetables and their products

Meat and Meat Products
Poultry and Poultry Products
Dairy Products
Confectionery, Biscuits and Bakery Products
Honey, Jaggery and Sugar Products
Cocoa Products
Alcoholic and Non-Alcoholic Beverages
Cereal Products
Groundnuts, Peanuts and Walnuts
Pickles, Papads and Chutneys
Horticulture and Floriculture Products
Herbal and Medicinal Plants
Rice (non-Basmati)

Methods of Food Preservation with

Examples
Methods

Examples

Physical
Method

Thermal processing, Concentration/drying/Dehydration,

Sterilizing, Filtration, Radiation/Irradiation, etc.

Chemical
Method

Solidification (salting), Saccharification (sugar addition),

Artificial acidification, Gaseous preservation, Ethyl alcohol
addition, etc.

Biochemical
Method

Lactic fermentation (natural acidification), Alcoholic

fermentation

Combined
Method

Combination of above methods

Fruit and Vegetables processing

 18% of gross agricultural product
 Indias share in world trade is @1%
 Major exports: fruit pulps, pickles, chutneys,

canned fruit & vegetables, conc. juices and

dehydrated vegetables

Market for Multipurpose Fruits & Vegetables Pastes

Overseas
a) Tomato Paste
Major Importers

:
:

15,00,000 MT
Germany, UK, Japan

b) Banana Puree
Major Importers

:
:

1,20,000 MT
USA, Japan, Russia, EU Countries

c) Mango Pulp
Major Importers

:
:

95,000MT
USA, EU, Middle East Countries

d) Guava Puree
Major Importers

:
:

15000 MT
USA, EU Countries

e) Papaya Puree
Major Importers

:
:

1500 MT
EU, Middle East Countries

POST HARVEST HANDLING - BANANA

SELECT UNIFORM BUNCHES ( 75 80% MATURITY)

CAREFULLY HARVEST

DE-HAND FRUITS (WITHOUT INFLICTING DAMAGE)

DE-FLOWER

CLEAN CUT TO THE CROWN

WASH HANDS

ANTIFUNGAL TREATMENT

AIR-DRY

PACK IN CORRUGATED FIBRE BOARD BOXES

PRE-COOLING (13-14 oC)

TRANSPORT TO AIR PORT OR SEA PORT

LOAD INTO TEMPERATURE CONTROLLED REFER CONTAINERS

STORE IN COLD STORE

RIPENING

RETAIL MARKETING

Vacuum Packaging
 Product is packed in a vacuum condition

 Vacuum packaging offers an extensive barrier

against corrosion, oxidation, moisture, dirt, fungal

growth, etc

 Best suited for dried fruits & nuts

Vacuum packaging of
banana

Increases the shelf life for 30 days

Ripening takes 7 to 10 days after

opening the bags.

No residual effect of fungicide

VACUUM PACKED CAULIFLOWER

Mango Processing
Raw Mango


pickle, chutney and beverages

Ripe Mango
 mango pulp , squash, juice, jam, leather
Machineries required


Rotary washer, , blanching unit, mixing unit,, steam

generator, brine tank, can reformer, can flanger, can
seamer, retort, sterilization unit, cooling unit, bottle
capper, bottle washer , filling table bottling unit




Area required
Capacity
Cost

: 1000 sq.m
: one tonne per day
: Rs. 50, 00, 000

FRESH MANGO PROCESS FLOW CHART

HARVESTING
(With Mango Harvestors at 7o 8o Brix)

DESAPPING

WASHING

HOT WATER TREATMENT

(at 48o c / 1 hours)
&
OTHER POST HARVEST TREATMENTS

FINAL GRADING
(Refer standards)

WEIGHING

PACKING
(IIP APPROVED PACKING)

PALLETISATION

PRE COOLING
(12o C + 0.5o C)

COLD STORAGE
(12o C + 0.5o C)

STUFFING INTO CONTAINER

EXPORT BY SEA

Mango Fruit bar

Mango fruit

Washing

Cutting

Pulp extraction

Addition of sugar

Heating

Cooling

Drying

Packing

Gherkin processing
Gherkin

Washing & Grading

Soaking in 14% brine solution (Barrels)

Maintaining the salt concentration

( 30 days)

Packing ( Bottle /can / barrel )

Mushroom preservation
 Poor shelf life
 Cold storage always not

possible
 Domestic consumption

 Value Addition
 Drying
 Canning (2 % Nacl)
 Pickling

Preservation of sugarcane
juice

In aluminum pouch

In glass bottle

Sugarcane juice in PE bags

Sugarcane juice in PP bags

Sugarcane juice preservation

Pre heating ( 700C for 15 min)

Cooling
Addition of preservative ( sodium benzoate 125 ppm)
Filling and sealing
Pasteurization (800C for 15 min)

storing

Mr.R.Ramalingam
Pondicherry

500Bottles/day

Edible films and coatings

 Gives the food product a protective superficial layer
 Made from proteins, starches, waxes, lipids, etc.,
 Also made from food-grade anti-microbial and

antioxidant compounds

 e.g., Ethyloleate coating for grapes increases the

drying rate and gives a better quality raisin

Wax Application
 Paraffin wax, Carnuba wax and bee wax
 Enhances the shelf life by

- 10 days

 Rate of application

- 1 kg/ 1000kg

 Guava, Mango, Banana

- Waxol W/12

 Lime, Apple, Tomato

- Waxol O/12

Products Prepared from Fruits and Vegetables

Name of
Crop

Products

Guava

Jelly, cheese, Toffee, Nectar, Canned guava, Squash, Vinegar

Aonla

Pickle, squash,RTS, dried flakes&powder, candy

Papaya

Jam, candy, Nectar, Pickle, Sauce, Canned papaya, Papain

Banana

Pickle, squash,RTS, dried flakes&powder, candy, chips

Grape

Wine, Juice, Raisin

Tomato

Pickle, puree, ketchup,sauce,concentrate, jam, juice

Onion

Dried flakes, pickle, dried powder

Cassava

Starch based materials

Moringa

Dehydrated powder, moringa seed oil

Coconut

Coconut water, coconut milk powder, desiccated coconut

Chillies

Red chilli powder, paste, sauce

Sugarcane

Bottling of sugarcane juice

Machineries for fruits and vegetable processing










Fruit mill,
Fruit pulpers,
Juice extractors,
Packing machines,
Filling machines,
Steam boilers,
Steam jacketed kettles,
Sterilizers

Area required
Capacity
Cost of the machinery

: 1000 sq.m
: One tonne per day
: Rs. 50,00,000

Market for Potato Products

Global Market for Potato Products
a) Potato Flour
Major Importers

:
:

65,000 MT
Netherlands, Poland, Germany

b) Potato Flakes
Major Importers

:
:

130,000 MT
Japan, UK, Italy, Spain

c) French Fries
Major Importers

:
:

10,00,000 MT Price 1500 USD/MT

Japan, EU Countries

d) Other Products

Granules, Wafers, Fabricated Wafer

(Pringle type)

Technology Driven Projects

Aseptic Packaging

Irradiation - Onions, Potatoes, Fruits, Marine, Meat, Spices

Cryogenic grinding Spices, Herbs.

Retort pouches prepared curries, pulses etc.

Modern Cold Storages C.A., M.A.

ASEPTIC PACKAGING

Sterilized food material is packed in a sterile

container in sterile zone

Production of ambient shelf-stable foods

UHT milk and pasteurized fruit juices

Alternative for metal cans and glass jars

Aseptic packaging involves 3 separate sterilization

process

Sterilization of product
Sterilization of equipment
Sterilization of packaging material

Food raw
materials
preparation

Formulation
Blending,
Mixing

Sterilization
Pasteurization
Heating

Holding

Aseptic
zone

Cooling

Packaging
material

Homogenization

Filling
Sealing

Product storage

Distribution
&
Consumption

Sterilization

Products used for aseptic packaging

Mango & Guava pulp
Pine apple & apple juice
Tomato & banana puree
Tomato paste
Papaya syrup
Flavored milk and ice cream mix
Packages used for aseptic packagin
Plastic
Paper
Metal foils

Advantages of aseptic packaging

 Minimize degradation of heat sensitive products

 Retains colour, flavour, texture and reduces the
loss of nutrients
 Post processing cost is less
(refrigerated storage not necessary )

Application of Radiation
Shelf life extension fruits and vegetables
Destruction & inactivation of insects & parasites
Kills pathogenic bacteria, molds and yeasts
Inhibition of sprouting of tubers

Food Irradiator

Irradiated and Non-irradiated Onion and Potato

FOODS APPROVED FOR IRRADIATION

Food products

Purpose

Dose (kGy)

White potato

Extend shelf life

0.05-.15

Date of
Clearance
1965 Nov

Spices and dry seasoning

Disinfect insect

30

1983 Jul

Fresh fruits

Delay maturation

1996 Apr

Poultry (fresh or frozen)

Control illness

1990 Dec

Red meat

Decontamination

1997 Dec

Potato

Inhibit sprouting

0.15

1960 Nov

Onions

Sprouting inhibition

0.15

1965 Mar

Wheat, flour,wheat flour

Disinfestations

0.75

1969 Mar

Poultry meat

Decontamination

1.5-3

1992 Sep

Red meat(fresh)

Decontamination

4.5

1997 Feb

Cereals

Bulbs and tubers

0.2

Herbs
Condiments

Decontamination

10
10

1984 Oct

Commercial Applications


Insect disinfestations of stored products

Quarantine treatment for fruits and vegetables

Inhibition of sprouting in tuber and bulb crops

Delay in ripening of fruits

Extended shelf life of seafood, meat and meat products

Improving food safety and decontamination of spices and

sterilization of foods

STATUS OF FOOD IRRADIATION

 More than 40 countries approved the processing

of about 100 products.

 About 28 countries in commercial scale
 In India, Vashi and Lasalgaon(Maharastra)

(onion and potato sprout inhibition)

 BARC, unit - 20 tons/day for treatment of spices

Dairy Industy
 India ranks first
 50 per cent Buffalo milk
 Variation in milk consumption
 Only 40 per cent used for products
 New dairy products

Milk & Milk Products

Fluid milk, cream, butter, ghee, khoa, Cheese, buttermilk,
yoghurt, ice cream, flavoured milk, casein, milk powder
Machineries required
Can washers, Plate chiller, pasteurizer, cream separator,
homogeniser, butter churn, ice cream freezers, evaporators,
spray driers, form fill & seal machine




Area required : 1000 sq.m

Capacity
: 10,000 litres per day
Cost
: Rs. 75,00,000

Snack Foods
 Overall production 3,50,000 tonnes (Rs. 14 billions)
 Namkeans salty snacks, chips pappadums & bakery

snacks like biscuits

 Potato chips
Namkeans
Chick peas,
pulses, edible oil, groundnut and spices

Market Trend of Snack Foods

 Taste varies across regions
 Flavour ingredients
 Pack size- affordable
 Attractive packaging
 Baked snacks & roasted snacks are

to be potential areas

Extruded Foods
Ragi , Rice & Wheat

Machineries required
Kneader, blender , extruder,
dryer, packing equipments etc.,

 Area required : 1000 sq.m

 Capacity

: one tonne per

day
 Cost

: Rs. 60,00,000

Bakery Products
Bread, bun, cakes, puffs, biscuits, pastries

Machineries required
Kneader, mixer, sheeter, proofer, rotary oven,
moulder, slicer, packing machines, moulds, trays etc





Area required : 1000 sq.m

Capacity
: 50,000 bread per day
Cost
: Rs. 40,00,000

Retort pouch processing

Advantages of Retort pouch processing

 Replacement for can
 Cheaper
 Simple operation
 Low initial investment

Frozen Foods
 Frozen vegetable peas, cauliflower
 Frozen chicken
 Frozen dairy dessert paneer kulfi ice cream
 Frozen meat and sea foods
 Cold chain

Cold Chain
 Industrial cold stores in the Production zones
 Refrigerated vehicles for long distance transport
 Refrigerated room in wholesale markets
 Refrigerated distribution vehicles
 Refrigerated rooms and display cabinet in retail

stores

Cold Storage Industry



First cold storage plant was setup at Calcutta in 1892

Growth of the industry was negligible till 1995

Normally growth of the industry has been pronounced in north

India (MP,UP,WB,Bihar ,Harayana)

90% of the cold storage unit used for potato

Remaining 10% used for other fruit and vegetables

Commodity wise distribution of cold storage

units in India
Commodity

No. of cold
storage units
(%)

Potato
Fruit & Vegetables
Milk & Milk Products
Meat
Fish
Meat and Fish
Multi-purpose
Others

63.0
1.1
6.9
0.8
11.3
2.1
9.7
5.1

Total

100.0

Recommended Storage conditions

Fruit / vegetable

Temp.(0C)

Banana
Pine apple
Apple
Grapes
Mango
Potato
Onion
Carrot
Bhendi
Cabbage
tomato

14 15
8 10
0- 2
0- 2
10 - 12
3-4
1- 2
2- 3
8 -10
1-2
8 -10

R.H.
80-85
85-90
85-90
85-90
85-90
85
70-75
95
90
90-95
90-95

Storage period
2 months
2 months
8 months
2 months
1-2 months
8 months
6 months
6 months
1 month
3 months
2 months

Funds for Cold Storage Units

National Horticultural Board providing capital subsidy
to entrepreneurship for construction,expansion and
modernization of cold storage for horticultural produce

Objectives
To promote cold storage in the country for
reducing post harvest losses

Eligible Organizations







NGOS
Association of growers
Corporations
Agricultural produce marketing committees
Marketing boards/committees
Agro industries corporations

Major Considerations for a New Project

1) Market Needs Domestic as well as Overseas
2) Availability of Competitive Resources
3) New Technologies
4) Other Factors Socio-Economic Environment,
Government Fiscal Policies,
Incentives, etc.

Food Industry Laws

 PFA 1954
 Prevents customers against adulterated food
 Domestic & imported food products
 Food colour, preservative, pesticide residues, packaging
labeling & sales
 Not upto date with advances in food processing sector
 Labeling requirement
 Language, name, address, description of product,
Constituents, date of manufacture, expiry date

Contd











The Standards of Weights & Measures Act 1976

Essential Commodity Act 1955
Fruit Product Order 1955
Milk & Milk Product Order 1992
Pulses, Edible oil seeds and Edible oils Order 1977
MRTP Act 1969
BIS 1952
Agricultural Produce Grading & Markets Act 1987
Environment Protection Act 1986
HACCP

Food Safety & Standards Authority of India (FSSAI)

Thank You