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THE DYNAMICS OF FOOD PROCESSING INDUSTRIES IN INDIA: AN ECONOMIC INVESTIGATION

KrishiKosh

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Title THE DYNAMICS OF FOOD PROCESSING INDUSTRIES IN INDIA: AN ECONOMIC INVESTIGATION
M.Sc.
 
Creator SIDDHARTH BHARDWAJ
 
Contributor Shiv Kumar
 
Subject productivity, economic systems, biological development, capital, manpower, economics, sugar, investment, oils, fats
 
Description Food manufacturing sector is of enormous significance to India’s agricultural development due to
its strong backward and forward linkages with food production. A dynamic food manufacturing
sector can leverage agricultural growth, reduce regional disparities and augment farmers’
incomes. Dynamics of food processing industries in India was studied in respect of the status of
food processing industry in terms of value addition to agricultural produce and also to examine
the structural changes in input-output relationships therein. Time series data (1981/2009) at
constant prices on gross output, number of factories ,input material, number of labourers,
emoluments, capital stock and various wholesale and retail level price indices were used for 11
subsectors of the food manufacturing sector at four digit level of NIC classification. Descriptive
statistics, Tornqvist index etc. were used to infer results. Results discern that food processing
sector being more capital intensive could not create sufficient employment opportunity. Capital
formation focused primary processing industries viz. sugar. Vibrant consumers of rising urban
middle class coupled with increasing per capita income led to increasing preferences for ready to
eat food has shown the power of attracting investment in all subsecto`Capital productivity
decreased in entire period. The gap between actual productivity level and frontier level had
narrowed down. Material productivity decreased due to lack of infrastructure mainly due to
wastage and supply chain inefficiency. Decrease in TFP which could become stable only in latter
decade due to government efforts, greater participation of the private players and creation of
market driven efficiencies. The trends were more or less same for the individual food segments
also but more adverse for the high value commodities due to perishability of agri-fresh raw
produce, lagging growth in scale of operation and also share in total investment. To tap the
potential in food processing sector, clarion call is to increase productivity level besides enhancing
productive capacity. Quality investment is needed in new technologies, supporting infrastructure
and overhead capital. This will lead to stable pattern of productivity, greater economies of scale
and will create skilled sustainable employment. Consolidation of businesses and public-private
partnership in emerging policy environment can catapult industry into high domains.
 
Date 2016-03-15T18:58:44Z
2016-03-15T18:58:44Z
2013
 
Type Thesis
 
Identifier http://krishikosh.egranth.ac.in/handle/1/65163
 
Language en_US
 
Format application/pdf
 
Publisher IARI, DIVISION OF AGRICULTURAL ECONOMICS INDIAN AGRICULTURAL RESEARCH INSTITUTE NEW DELHI