Economic Importance of Food Processing

1. Economic Importance of Food Processing

2. Food processing is the transformation of raw food materials into other form of food product, either by physically or chemically added value. It combines the raw food materials to produce marketable food products. Addition of essence in the form of form of packing, packaging, grading and sorting. Importance of food Processing Food processing units acts as a hook up between the agriculture and industries. There are many useful features in the importance of food processing. Let’s see it. Improves the food consistency Food processing involves hugely in the segment of improving the food consistency in India. This can be carried out by the removal of toxins and preservation of food, ease of marketing, transportation and distribution, etc

3. Solution for food shortage Processed foods are capable of higher consistency that assist in preserving it for a duration. Underlying reason is, agriculture in India is highly unpredictable, as prone to the natural calamities, disaster, etc. If in case of raw materials are affected to the natural calamity or shortage production, this processed food encounters the gap between demand and supply of food products. Lowers the disguised unemployment Disguised unemployment is a situation, that gives zero in marginal productivity and produces an extensive issue in the Indian economy. Assume that, more people are employed in a farm, the marginal productivity of it remains zero or the addition of the labour will not add to the productivity in a farm is called as disguised unemployment. Food processing can be a right solution, for this problem in the Indian economy. Especially, in the agricultural sector because the surplus labour will be utilized in the food processing industry, that expands the GDP and generates more opportunities, wages for the labours.

4. Reduction of poverty, food scarcity Food processing is a better solution for the poverty, food security and food inflation. This industry provides the more job opportunities and more wages to the people, that consequently cut down the poverty in the economy. Processed food enacts in filling the gap between demand and supply, that operates as a food security and encounters the food scarcity problem. In addition, it reduces the food inflation. Processed perishable agricultural commodities, increases the shelf life of food that lowers the wastage of food. Checkout FMT magazine, to know more updates of food processing industries.