The Food Processing sector in India is one of the largest in terms of production, consumption, export and growth prospects. The government has accorded it a high priority, with a number of fiscal reliefs and incentives, to encourage commercialisation and value addition to agricultural produce; for minimising pre/post harvest wastage, generating employment and export growth. The food processing industry, due to its diverse nature and a policy of SSI reservations, has ordained a predominant role for small enterprises. The organised sector, consisting of mostly large companies, accounts for only 25% of the market while the remaining 75% of the market is divided between the small scale and the unorganised sectors. The micro and local community based food processing enterprises have dominated the primary processing segment of the industry. Small and medium firms are mostly operating in niche markets.

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