Scenario of Food Processing Industry in India- Hebe

SCENARIO OF FOOD POCESSING

Rice

With a production of around 80 lakh MT in 2022-23, Bihar is amongst the leading rice producers in India. The state’s alluvial soil and favourable climate conditions make it suitable for high-yield rice cultivation. Investors can explore opportunities in packaged rice, rice bran oil, and other rice-based products.

Wheat

Wheat is the most widely consumed grain across North India with high demand for domestic consumption. It is also a major Rabi crop in Bihar primarily harvested in late spring to early summer. There are substantial opportunities for setting up value-added food processing units such as packaged flour and ready-to-eat wheat-based products.

Maize

Bihar is known for its high-quality maize, suitable for both food and industrial applications. Planting usually occurs from April to June, and harvesting from August to October. Opportunities exist for setting up industries for cornflakes, popcorn, maize starch, livestock feed, and ethanol production.

Fruits

Bihar’s diverse agro-climatic zones support the cultivation of a variety of fruits. The state is the largest producer of Litchis in India, contributing more than 70% of the country’s total production. Bihar is also amongst the top producers of mangoes, particularly famous for the ‘Malda’ variety sourced from Bhagalpur and Darbhanga districts. Investors can explore opportunities in the processing of fruit juices, pulp, and dried fruits.

Vegetables

Bihar is the fourth largest producer of vegetables in the country, producing close to 160 lakh MT of vegetables in 2022-23. Leading produce includes potatoes, onions, tomatoes, brinjal and okra (lady’s finger). The potential for setting up processing units for frozen vegetables, canned products, and vegetable juices is immense

Sugarcane

Bihar is amongst the largest producers of Sugarcane in the country. It is a major commercial crop in the state, with West Champaran contributing over 60% (138 lakh tonnes) of the total sugarcane production in Bihar in 2022-23. There is significant potential for ethanol production from sugarcane, in addition to traditional sugar manufacturing. The Bihar Biofuel Production Promotion Policy, 2023 offers various incentives for setting up ethanol production units, making it an attractive investment destination

Dairy

The dairy sector plays a crucial role in Bihar’s rural economy, significantly contributing to income generation, livelihood and food security. The state is home to COMFED (Sudha Dairy), a major player in the dairy industry, providing extensive support to dairy farmers. Bihar focuses on improving the cold chain infrastructure through its Scheme for Integrated Cold Chain and Value Addition Infrastructure. There are opportunities for setting up units for producing ghee, cheese, yogurt, ice cream and other dairy products.

Makhana

Bihar produces approximately 90% of India’s total makhana output. The Makahna Development Scheme has been launched by the State Government to boost its production through expansion in 11 districts and encouraging adoption of new technologies. With a high protein and nutritional value, Makhana processing units can tap into many opportunities including producing Makhana pops, flavored or roasted Makhana snacks, Makhana seed powder in baby food, chips and kheer mix.