India aims to raise the share of agricultural produce that undergoes food processing to 25-30 percent, up from the current 16-17 percent, the Ministry of Food Processing Industries said on September 12, 2026. The push is designed to expand value-added production, cut post-harvest losses, and strengthen the country’s food export potential.
The announcement came on the sidelines of a curtain-raiser event in New Delhi for Anuga Select India and Anuga FoodTec India 2026, scheduled from September 29 to October 1 at the Bombay Exhibition Centre in Mumbai. India’s food processing industry is currently valued at more than USD 500 billion, according to government estimates, with officials pointing to substantial room for further expansion as domestic consumption and export demand both rise.
Why Is India Pushing to Raise Its Food Processing Share Now?
Only 16-17 percent of India’s agricultural output is currently processed, well below levels seen in developed food economies where processing ratios often exceed 40 percent. Raising this to 25-30 percent would reduce the estimated 15-20 percent of perishable produce that is lost annually between farm and market, while creating higher-value packaged and processed goods that fetch better export prices. Officials at the Ministry of Food Processing Industries framed the target as central to India’s broader goal of becoming a larger player in global agri-food value chains ahead of the Anuga FoodTec India trade fair.
What Does This Mean for the Broader Food Processing Industry?
A higher processing ratio has ripple effects across dairy, fruits and vegetables, meat and poultry, and packaged foods segments — the sectors that currently make up the bulk of India’s food processing base. The gross value added of the sector has already grown from ₹1.34 lakh crore in 2014-15 to ₹2.24 lakh crore in 2023-24, and now contributes close to 8.8 percent of manufacturing GVA and 13 percent of India’s total exports. Equipment makers, cold-chain operators, and packaging suppliers are likely to see increased demand as processors invest to meet the new target, with Anuga FoodTec India 2026 expected to showcase processing and packaging technology aimed at this exact gap.
Market Reaction and Industry Response
Trade bodies and exhibitors preparing for Anuga FoodTec India’s 20th edition in Mumbai have welcomed the target as a signal of sustained policy support for the sector, following years of incentives under the Production Linked Incentive (PLI) scheme for food processing. Industry participants note that achieving 25-30 percent processing will require parallel investment in cold storage — the sector already needs tens of thousands of tonnes of additional capacity — as well as in food safety infrastructure and rural aggregation networks that currently limit how much raw produce reaches processing facilities before spoiling.
What Happens Next?
The government is expected to detail specific incentives and timelines around the target in the run-up to Anuga Select India and Anuga FoodTec India 2026, which opens in Mumbai on September 29. Analysts will be watching for fresh PLI allocations, mega food park announcements, and export facilitation measures in the coming weeks, as the ministry works to translate the 25-30 percent ambition into a concrete roadmap with milestones.
Frequently Asked Questions
What is India’s current food processing level?
India currently processes only about 16-17 percent of its agricultural produce, according to the Ministry of Food Processing Industries, well below the levels seen in most developed food economies.
Why does India want to increase its food processing share?
Raising the processing share to 25-30 percent would reduce post-harvest losses, add more value to raw agricultural output, and improve India’s competitiveness in global food exports.
When was this food processing target announced?
The Ministry of Food Processing Industries announced the target on September 12, 2026, ahead of Anuga Select India and Anuga FoodTec India 2026, set to be held in Mumbai from September 29 to October 1.
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