India being the second-largest producer of fruits and vegetables, facilitates the fruit and vegetable processing industry in acquiring its primary resources. Canning, dehydration, pickling, provisional preservation, and bottling are some of the methods used in fruit and vegetable processing which help increase the shelf life of seasonal fruits and vegetables..

The food processing industry is one of the largest industries in India and ranks fifth in terms of production, consumption and exports. However, processing of perishable produce in India is just 7%, which is very low when compared to other countries such as US, China and Philippines.11 Besides food losses, the absence of processing facilities at the farm gate leads to farmers earning lower incomes, as the benefits of value addition mostly accrue to middlemen and large private sector firms. Processing near the farmgate can improve the value of agriculture produce, ensure remunerative prices for farmers and minimize losses.

The food processing industry in India is highly fragmented, with the unorganized sector accounting for 70%of the total market. The unorganized sector is dominated by a large number of small scale companies. Recognizing that improving the food processing sector can drive agriculture sector development, the government has designed a number of schemes and interventions to support the growth of the industry. Given the scale of investment required, most of these schemes leverage the presence of larger private sector players and impact SHFs indirectly.

The sector has also received a boost due to changing consumer preferences and rising demand for Indian products in international markets, leading to a recent spurt in private sector interest. Heightened participation from the organized private sector is expected to expand direct engagement between the industry and farmers.