MoFPI Backing Food Processing Startups

Nitin Konde, Apoorva Bajj

Aug 6, 2024 — 2 min read

MoFPI Backing Food Processing Startup

To encourage startups in the food processing industry, the Ministry of Food Processing Industries (MoFPI) held a Startup Conclave called SUFALAM (Startup Forum for Aspiring Leaders and Mentors) in New Delhi on February 13th and 14th, 2024. New goods from entrepreneurs were on display during the event's expo, which also featured a panel discussion, networking opportunities, and a pitching session.

MoFPI's two independent institutes, NIFTEM-K in Kundli, Haryana, and NIFTEM-T in Thanjavur, Tamil Nadu, have provided funding to 38 startups between them. Last year, six of them were given INR 3 lakh apiece as winners of the National Level Startup Grand Challenge.

In addition to connecting startups with mentors and resources, these institutes offer incubation services, quality testing, research and development assistance, networking events, pilot plants, food testing labs accredited by the National Association of Blood Banks (NABL), and more.

These new businesses in the food and related industries are improving the economy and its prospects for all its citizens by creating value-added goods, introducing ground-breaking technologies, increasing processing efficiency and productivity, encouraging entrepreneurial spirit, creating jobs, and teaching people new skills.

Current Market Size of Food Processing Sector in India

With a growing middle class, more disposable income, and more people living in cities, the food processing industry in India is expected to experience explosive growth, going from an anticipated US$ 866 billion in 2022 to an estimated US$ 1,274 billion in 2027.

The Indian food and grocery industry ranks sixth globally. With a 32% share of the food market, a 13% share of total exports, and a 6% share of industrial investment, the food processing industry is one of the biggest industries in the nation. Within the regulated manufacturing sector, the food processing industry employs around 1.93 million people, but the unregistered sector additionally employs roughly 5.1 million people.

Future Scope for Food Processing Startups

Recognized as a key priority industry under the "Make in India" initiative, the Indian food processing sector offers a potential growth journey and has numerous chances. Several programs have been launched by the MoFPI to encourage investment in the food processing industry by improving infrastructure and supporting startups in this field. To boost the value of their produce, the Indian government has been trying to enlist the help of several food processing startups to strengthen supply chains that connect farmers to processing and marketing, as well as to local grading and storage facilities.

Facilities such as specialized processing units, sewerage treatment plants, testing laboratories, common warehouses, and logistical assistance are part of the Common Infrastructure for Industrial Parks, which encompasses 31 projects with strong investment prospects totaling US$ 2.36 billion.