Converting Agricultural Commodities into value-added products
Processed Food
India currently processes less than 10% of its agri-food output, and the majority of the processing done in India can be classified as primary processing—doing rice, sugar, edible oil, flour mills, and so on. However, primary processing provides less value addition than secondary processing, which includes the processing of high-value items such as dehydrated and frozen fruits and vegetables, dairy, bakery, chocolates, and so on. As a result, given the sector’s high production levels and low current processing rates, there are numerous opportunities.
India’s high value and value added agricultural produce accounts for less than 15% of its agricultural export basket, compared to 25% in the United States and 49% in China. This is despite India’s geographic location, which provides it with a distinct advantage in terms of exports, with convenient connectivity to Europe, the Middle East, and Africa on the western coast and Japan, Singapore, Thailand, Malaysia, Korea, Australia, and New Zealand on the eastern coast.
India is unable to export its vast horticultural produce due to a lack of uniformity in quality and standardization, as well as an inability to reduce losses throughout the value chain. Because of the long distances between India and major markets, processed food has a greater potential for increasing Indian exports than fresh horticultural products.
Dehydrated Onion
Main markets in Europe, Asia, and the United States are too far away from India to offer a large quantity and quality of fresh vegetables. As a result, dry and frozen substitutes can be exported in huge quantities. They are also finding use in commercial kitchens and among manufacturers of ready-to-cook and ready-to-eat foods.
Western Europe has the highest consumption of dehydrated onions in the world. India and China hold the majority of supply to meet demand, accounting for 89% of global output.
Dehydrated Potatos
Dehydrated potatoes, also known as instant potatoes, are one of the most commonly used processed foods in many countries. They are popular due to their ease of use and lengthy shelf life. Dehydrated potatoes are widely used in a variety of foods, including mashed potatoes, potato chips, and snacks. Dehydrated potatoes are in high demand and are exported in huge quantities. Dehydrated potatoes are very popular in Western Europe, with India and China being the main exporters. Overall, dried potatoes play an important role in the food sector and are widely consumed throughout the world. Dehydrated potatoes are preferred by customers because they are easier to digest than fresh potatoes. Dehydrated potatoes are benefiting from a growing trend toward ready-to-eat food products. Consumers’ rising GHDI (Gross Household Disposable Income) and fast urbanization have increased their spending on processed and ready-to-eat food goods. Increasing demand for these foods drives up demand for dehydrated potatoes. Customers are experimenting with new ways to use these quick potatoes in the kitchen.
India is the second largest producer of potatoes, and the accompanying table shows that there is higher potential for exporting dehydrated potatoes to Europe, Japan, Korea, and Australia. Southeast Asian countries produce very few potatoes, and we can enhance exports.
Frozen Vegetables
The catchall categorization for assorted vegetables is the most valued category of exported frozen vegetables, accounting for 56.5% of the entire total for frozen vegetables. It has been noted that India is a major potato producer with the capacity to export dehydrated potatoes to a number of different countries, including Europe, Japan, Korea, and Australia. Furthermore, the catchall category for mixed veggies is the most lucrative category of exported frozen vegetables, representing 56.5% of the total. This category includes frozen asparagus, broccoli, cauliflower, Brussels sprouts, mushrooms, carrots, artichokes, and other vegetables.
Frozen mixed vegetables (11.7%), peas (7.3%), sweet corn (6.4%), beans (5.7%), spinach (4.8%), and leguminous vegetables (4.6%) trail the catchall, with frozen potatoes (3%).