According to the report, the food processing industry is one of the mainstays of the global economy with a value addition of USD 1.7 trillion. Also, thr Indian processed food market is expected to grow to USD 470 billion by 2025 from USD 263 billion (2019-20). The report titled “Indian food processing industry - growth opportunities post the Covid-19 pandemic”, further said that the pandemic had provided opportunity to the Indian industry to scale but the success would also depend on the development of high quality food testing and certification infrastructure in the country as hygiene needs grow in post Covid world.

Innovative products focused on wellness, health and nutrition are likely to see a huge opportunity in the domestic market, the report said, harping on the importance of increasing cold storage capacity in the absence of which scalability of perishable products has been challenged. Moreover, digitized supply chain, smart warehousing and logistics using industry 4.0 technologies can help India reduce wastage during storage and transit, it said.

According to KPMG, the pandemic has given rise to a new normal with sustainable food chains, growing preference for healthy food and localized food supply with increased trade barriers.

“In the post Covid-19 era, there is likely to be a surge in non-tariff measures including stringent sanitary and phyto-sanitary (SPSs) measures and technical barriers to trade (TBT) by major economies to ensure food safety against transmitted chemicals and diseases,” the report said.

It also recommended government partnership with private players through appropriate PPP models to ensure a faster scale up of quality infrastructure in line with industry requirements.

Adopting a focused approach with collaboration from diverse stakeholders is required for catalytic growth of the industry. An inter-ministerial committee led by MOFPI and consisting of various ministries may be constituted to bring various stakeholders together in a coordinated manner, the report said.