1

Chapter- II

Review of Literature

The present research work is conducted on the topic “Analytical Study of Processed Food

Consumption Pattern in Marathwada Region with Special Reference to Beed District”.

The literature review is a text content written by authors, eminent personalities, scientist

who considers the significant points pertinent to current information and facts including

substantive findings, as well as theoretical and methodological assistance to a specific

subject. Review of related literatures help to know about the studies which have already

done in the related field.

It is nothing but a significant and an evaluative summary of the themes, issues and

arguments of a specific clearly defined research topic. It is the systematic process of

reading, analyzing, evaluating, and summarizing intellectual materials about a particular

topic or subject.

Review of Literature are the secondary source of data collection collected from different

national and international Journals, Magazines, books, websites, government report,

NSSO survey and newspaper, annual reports of government organizations like APEDA,

NIN, MFPI, MPEDA, bulletins, food journals, management books and some collected

from other sources.

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2.1 Introduction

India is world’s second largest producer of food next to china and has the prospective to

grow further and being the biggest in the food sector. In addition of the world’s leading

producers of various food grains, India ranks 2ndin the production of fruits and vegetables

and first in milk production in the world.

NishaHarchekar (2008): The size of the processed food industry in world is projected

around US $ 3.6 Trillion and which accounts for three forth of the global food sales (US

$4.8 Trillion). MFPI in its VISION 2015 set target to increase the processing level of

perishable commodities from 6% to 20%, increase value addition from 20% to 35% and

increase the India’s share in world food trade from 1.5% to 3%. With robust scope for

value addition and investment food processing industries have great future.

Government make a compiled focus on the food processing industry by providing it the

status of priority sector. This will make sure that different policies should be launched to

sustain investment in food processing sector and attract more Foreign Direct Investment.

India with its major strength of abundantly available natural resources like raw material

and growing technical knowledge base has strong relative advantages over other nations

in the food sector for the future.

Carlos A. Monteiro (2012) defines food processing is a series of operations by which

unprocessed foods are converted into foodstuffs to prolong their duration, i.e. shelf life,

enable storage, and reduce time or effort spent in culinary procedures required for it. It

also explains that most of the unprocessed food are highly perishable and cannot be

stored for a long time and also require strong culinary processing to make food palpable,

safe and secure for consumption, so processing of the perishable commodities is of prime

important.

Surendra P. Singh, FissehaTegegne and et al., (2012): India is world’s second largest

producer of food grains next to china and has the prospective to grow further. The Food

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processing is a large scale sector in India that covers up integrated activities like

agriculture, horticulture, plantation, animal husbandry, fisheries and other allied

activities. It also includes other industries that use agricultural inputs for manufacturing

of edible products i.e. final produce of industry.

Further, the study confirms about the different factors which affect directly or indirectly

on the food processing industry, includes skill, technology, regulation, capital and

structure of the organization make significant impact on the food industry.

Ministry of Statistics and Programme Implementation (2010): Development in the

field of agriculture considered as a true indicator as a quality of life at grassroots level for

the people who lives at the bottom of the pyramid. To promote with the different

assistance programme to the agriculture is the important by means of the financial help,

schemes and programmes by the government.

Chadralekha Ghosh, Ajitava Raychaudhari: States that India is generating an

increasing domestic demand for rice due to new openings and increase in income level.

Andhra Pradesh and West Bengal are major rice producer’s state in India, also rice has

the more contribution to the consumption than any other food stuffs. Data collected form

NSSO survey, presents household level consumption expenditure for a variety of

commodities. Approximately ideal demand system has been used for assessment of price

and expenditure elasticity of rice along with other important food items and finally that

comprises with the basic items of consumption requirement.

Norman W. Desrosier, James N. Desrosier (2004) states that the successful application

of the modern technique permits conservation of the desirable qualities in stabilized food

products. Such stabilized foods permit their widespread distribution to fulfill the needs of

the people.

Alastair Hicks (2001): The rural economy cannot be developed by improving the

productivity of the agriculture only, but by means of rural industries and particularly food

processing industry having the significant for the rapid transformation of the rural

4

economy. Rural food processing industries are important to establish the linkage between

agriculture and industry, creating employment opportunities and improve the economic

well-being of the rural India.

GoI has recognized the importance of infrastructure development and have started the

cold storage units, warehouse schemes for the storage of onions, potato and other

horticultural produce and to fasten the pace of growth of food industry in India. Food

processing sector is included in the priority sector where foreign investment is concerned

and automatic approval route for entry of the foreign investment is made available for

greater number of the processed food commodity.

Barry Popkin, Shu Wen Ng (2006):Express that today world is undergoing with speedy

shift in structure of diet and body structure with subsequent changes in the health aspects.

The patterns of diets in the developing worlds are fluctuating quickly with mainly

concern to caloric sweetener, fats and animal food source. The outcome of price policies

and many other regulations require much more careful examination before to undertake

enormous shifts of a healthy nature in the structure of diet in the consumption.

Targeting towards the consumer behaviour K. Aswathappa (2012), states that certain

factors made an impact on the individual behaviour. These factors include personal

factors (age, sex, education, occupation, Innovativeness etc.), psychological factors

(learning, motivation, personality, perception, values, attitudes etc.), environmental

factors (economic, political, technological, legal, social, cultural and others) and

organizational factors (work life balance, organizational structure and design, leadership,

accountability, physical facilities etc.)

Maharashtra Food and Agro Sector (2012-13) report on the Economic survey of

Maharashtra expresses that Maharashtra provides employment of about 14.58% to India

and contributes 21.4% from the total of India. Maharashtra has total 20 AEZ which is the

highest in the country. The state is the bio-diverse with 9 agro climatic zones and varying

soil types suitable for agricultural development. Foreign Direct Investment (FDI) inflow

in the state form August 1991 to March 2012 is 1039 crores.

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The study further explains that Maharashtra is the diverse state with 9 agro climatic zones

and varying soil types which is suitable for the development of the agriculture sector in

the region. Mumbai port and Jawaharlal Nehru Port are the major destinations for the

exporting of the processed food products. Maharashtra has the 20 Agri Export Zones,

which is the highest in the country.

Expressing about the importance of fruits and vegetable Giridhari Lal, G.S. Siddappa

(2009) write that fruits and vegetables are among the utmost significant foods of mankind

as they are nutritive as well as indispensable for the continual maintenance of health. So

with the increase in the processing of the fruits and vegetables the nutritive value of the

products also increasing.

Jabir Ali, Surendra P. Singh and et al., (2009): According to the article consumers

have reacting to the qualitative changes of food intake and are now more sensible with

concern to nutrition, health, food safety and other issues. The important change in

consumption patterns on the way to high value emerging products provides more chance

to food processing units for their progress and expansion.

The data and methodology adopted is on the basis of input and output related to

registered or organized food manufacturing units, that has been accumulated for the

period of 1980-1981 to 2001-2002 from the Annual Survey of Industries published by the

Central Statistical Organization (CSO), Ministry of Statistics and Programme

Implementation, GoI. Data Envelopment Analysis (DEA) Approach is applied for

measurement of change in productivity and effectiveness in the Indian food processing

industry sector over the period of 1980-1981 to 2001-2002,with data is categorized into

two reforms i.e. pre reform period (1980-80 to 1990-91) and post reform period (1991-92

to 2001-02) respectively.

Berhane Ghebremicahel (2013), states that co-operatives are the best rendering fruitful

services to the society concerned especially to women development. It is also helpful to

encourage the social and economic integration of women needed for the entrepreneurship

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and empowering of the small scale industry. Women should play a significant role in the

development process of the nation and unquestionably acted as a part of the nation

building and development for the future.

According to the Tom Vierhile (2010)in current scenario people are getting more health

conscious than ever and tremendous change for the demand of the packaged food

industry. Now the consumers are more cautious about the eating habits and distribution

and handling of foods before reaching to their hands. It further pave the way for the new

rends which influencing the food market with new prospective options like development

of new food flavours, launching new products or the packaging way for the processed

food products.

Highlights of Economic Survey (2011-12): It focuses on the certain options which

ensure the price stability of the food items. It includes certain extension programme

which provides necessary use of the alternate cropping pattern based on the analysis of

soil, setting up of the special markets for special crops in areas or regions where

competitive advantage undertaken for the cultivation of food commodities.

Also government should come up with the creation of modern facilities like

infrastructure, cold storage, warehouse and others. Improved governance in the mandi or

market place is an necessary aspect where anybody who offers better price for the

commodities but from outside of the APMC framework should be allowed to do, so

producer can get more prices for their produce.

The report of FAO-Food Outlook: Global Market Analysis (2011) states that despite of

enhanced supply projection and declining demand the market conditions for agricultural

commodity remain comparatively rigid is the major aspect which reinforces prices of the

commodity. In addition report make a systematic way for necessary findings and to make

progress in the accuracy and precision of supply and demand forecasts for the foremost

food crops are the essential primary step for food markets with stable and transparent

market structure and conditions.

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Meijerink G. and P. Roza (2007) explained in the report of role of agriculture in

economic development, that the subsequent consequences of new trend in agriculture that

includes high value crops and quality foods required by urban distribution channels and

exports with specific health standards, harmonized delivery in contracts with

supermarkets, demands of agro-industry for non-traditional exports, labelling and

certification, vertical coordinated chains and others.

Deepachandran, Philo Francis (2014): The paper presented conciselyreviews the status

and performance of Indian agriculture, particularly during the last two decades, relative

importance and contribution to the Indian economy. It also make an attempt to collect

and presents the various driving forces of agricultural growth and provide suggestions

concerning what could be the way forward, given our objectives of accelerated growth,

and the reducing of poverty and hunger problems. The main objective is to analyse the

role of agriculture for the development of India economy and identification of major

drivers of agricultural growth.

However, the study depends on secondary data collected via various journals, booklets

periodicals, reports published by different government institutions like Agricultural

Census in India, Directorate of Economics and Statistics, Department of Agriculture and

Cooperation of Ministry of Agriculture, National Sample Survey office (NSSO) of

Ministry of Statistics and Program Implementation, Ministry of Rural Development,

Planning Commission, International Food Policy Research Institute and other published

online sources and other related materials.

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2.2 Food Processing Industry in India and World

Indian food industry growth by leaps and bounds and can emerges as ‘food basket of the

world’ (Shipra Singh, 2011).The Indian food processing industry is still in its nascent

stage. Increasing income, globalization and consumer preferences provides a quantum

jump in both production and processing as well. The current size of the Indian food

industry is valued at around $ 200 billion while the food processing sector represents

about $ 85 billion according to 2007 figures. It also focuses on the new concept of online

groceries, by which internet provide an option for purchase of groceries by ordering on

phone that can definitely change the consumer habits and preference, but still it is

difficult to at preliminary stages.

Study of Pankaj Gupta (2009) states that growth rate of Indian processed food industry

in tremendous. Rapid increase in disposable income with changing attitude towards

health and hygiene is a driving force for processed food in India. At the same time India

should tackle with demand supply balance, food process during inflation. Despite it,

industry has good future because consumers are willingly to pay for various needs

originating from modern life style. However, probable state of affairs is that, the future

growth would be primarily driven by the domestic market with India doubtful to achieve

its target in world trade market for food commodities.

MOFPI (2011-12) in the Annual report states the objective that focuses towards good

remunerative prices to farmers for their produce by improved application and value

addition of the agricultural commodity. The FDI inflow to the food processing sector

from April 2000 to August 2011 is Rs. 11, 691 Crore and increases continuously. MOFPI

acts as a channel for conveying greater investment into food sector, guiding and serving

for the sector and generating encouraging surroundings for vigorous growth of the food

processing segment in the country.

Foreign Direct Investment (FDI) inflow increased in the last decade for food processing

sector to 11,691 crore (from April 2000 to August 2011), which shows better investment

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options in food sector (MOFPI Report 2011-12). Maharashtra is the top runner for FDI

inflow in India.

SrikantaChatterjee, Allan Rae et al., (2006) conducted study to examine how India’s

faster economic improvements have related with India’s agricultural and farming sector.

It presents a broad view on how India’s consumption pattern of food and imports have

been moving currently to attract the new trade destinations such as Australia and New

Zealand. There are certain changes occurred in the pattern of food consumption, which

have the strong implications for internal and international trade and investment links with

the rest of the world.

Huang J., J. Yang and S. Rozelle (2011) stated that food consumption pattern in China

have undergone with certain significant changes as income went up and demand of food

products increased. Increasing income, urbanization and market expansion are considered

as major driving force for the change in China’s consumption patterns. Whereas, the

demand for cereals and other food grain has declined in recent years, per capita

consumption of vegetables, fruits, edible oil, sugar, fish, meat and milk, in both rural as

well as urban areas has increased progressively as income increased over the past three

decades in the country.

Nevertheless, in spite of progressive rank in the domestic production and consumption of

food grains, China has shifted from being a net food exporter to being a net food importer

in recent days. Further, this study make a focal point China’s agricultural imports, which

will continue to rise with income growth of the population.

The study conducted by RanaKapoor (2011), express that Mega Food Park encourage

the investment in food processing sector as they will help to modernize the supply chain

by establishing direct backward and forward linkages. This model is beneficial to small

and medium enterprises and entrepreneurs.

The report of ShantanaHalder, Ian Urey and et al., (2003)express the changing

scenario of consumption and expenditure in both rural and urban areas of the Bangladesh

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in terms of market purchase and their own production, base of diets, role of international

trade in food commodities etc. The major hypothesis considered for the study was trends

in food consumption patterns observed in higher income groups are increasingly

transferring to lower income groups in the country.

The methodology for the study includes household survey, retailer survey, focus group

discussions and personal interview and observations. The household survey was

conducted using a pre coded questionnaire required for the same. The retailer survey

questionnaire was managed to gain approaching into the extent of food system changes,

mainly in the retail and food distribution segments. Also, focus group discussions were

carried out mainly with village consumers and retailers to get qualitative information to

emphasize certain issues within the changing food system and above all use of the food

group case studies and food chain case studies were examined for the study.

S. S. Kamlakar (2010) states that Marathawada and Vidharbha region with weak

industrial sectors has been most underdeveloped region in the Maharashtra state over the

years. The paper made an attempt to analyze and understand the differential agricultural

growth pattern experienced in Maharashtra, and identify underlying reasons for

appropriate policy interventions of it. The study is based on the published sources of

seasons and crop report of the Maharashtra state, Economic survey of Maharashtra and

India, Committee and commission report and websites.

The study is based on the published sources like Season and Crop Report of Maharashtra

State for various years, Agricultural Statistical Information of Maharashtra State,

Economic Survey of Maharashtra and India, Committee and Commission Reports and

related websites etc. The needed recent data have been directly compiled from the Office

of the Commissionerate of Agriculture, Government of Maharashtra, Pune.

The fast and quick growth of cities and the adoption of urban lifestyles by an ever

increasing fraction of the population of developing countries is one of the major

significant features for national development of the country. Accordingly, there is a need

for more suitable food and nutrition information system, which could be made available

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for the design of socio-economic, agricultural, health, food and nutrition policies and

programmes in the world. (Helen Delisle, 1990).

According to Jochen P. Zoller (2010), today quality and safety of food are important

issue for the consumer point of view. So the need to follow the different food laws and

standards for manufacturing of food products arises across the globe.

DeepankarBasu, AmitBasole (2012): The interesting attribute of economic

development in India, over the last few decades has been the change in movement of per

capita real income or GDP and average per capita calorie intake in opposite directions

with each other. Numerous clarifications have been presented for this confusing event,

which includes movements in relative prices of the commodity, impoverishment of a

large section of rural India concern to income, diversification of food consumption

pattern and habits, decline in calorie needs of the individual.

By using a panel data set for 28 Indian states and rural area of Delhi with the help of data

from four time periods (1993–94, 1999–00, 2004–05 and 2009–10), which is collected

from published reports of the different rounds of the consumption expenditure survey of

the NSSO and the Census of India (1991, 2001, and 2011). Also on the basis of it

hypothesis testing is carried out for the study.

Vaclav Smil (2001) states in the book Feeding the World- the challenges in twenty first

century that consideration of the complete food cycle is necessary which stated from

agriculture to post harvest loss and from processing, distribution to eating and discarding

of the food products. Further he explains that with more effective user of the current

available resources significant to increase in the farming efficiency, reduction of waste,

future needs, diet diversification. If we are unable to find solution then it creates a further

trouble on the biosphere.

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2.3 Processed Food Scenario in India

Astudy by K. C. Baiju (2004),focuses on the structural changes in the consumption

basket of the people from cereal items to non-cereal items. Also there is shift in the

consumption patterns of the middle and upper income groups of Kerala. The data

gathered by the National Sample Survey Organization (NSSO) publications.

Foods are generally classified as processed food, semi-processed food, fast food, pet

food. At the same time certain other classifications also made with concern to necessity

are minimal processed food, space food, junk food, raw food, designer food, synthetic

food, comfort food, health food etc(R. H. Jaju, 2012).

Targeting towards food security in India S. Mahendra Dev, Alakh N. Sharma (2010)

states that food availability is the main necessary condition for the food security. They

further explained that due to changes in consumption pattern the demand for fruits,

vegetables, dairy, poultry, fisheries and other have been continuously increasing.

Food security has three important components, namely availability, access, and

absorption of nutrition. All three components are interconnected to each other. Different

studies have shown that development in nutrition is important, yet for increase in

productivity of workers for sectors. Consequently, food security has intrinsic value i.e.

for its own sake as well as instrumental value for increasing productivity.

The study conducted by RebaccaSpohrer, Greg S. Garrett et al. (2012), highlights the

importance of iodized salt in processed foods for contributing for making necessary

Iodine intake in developed countries where salt in diets is mainly contributed with

processed foods.The data collected from different published research results ontechnical

evidence, national experiences, and legislation related to iodized salt inprocessed foods.

The Data and information associated with the accessibility of processed foods in isolated

and low income regions in Bangladesh and Pakistan were collected from Nielsen

Company, a venture for market study.

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Regarding the need of packaging technology Harish P. Joshi (2010) suggest that, the

booming processed food and beverage market are increasing the growth of packaging

sector in India. Packaged food and beverage occupies about 60 percent of the packaging

space because of the utility and changing life style of the people. Turkey and India are

among the fastest growing packaging market in the world. According to the study Indian

packaging industry is growing at an annual rate of about 15%. The main factors

responsible for growth included in it are urbanization, changing life style, small packet

revolution etc.

FAO (2011) presented a report on Global Food Losses and Food Waste, which

highlights on the losses occurring along with entire food chain and recognizes food losses

reasonsandprobable ways to prevent them. In the study Swedish Institute for Food and

Biotechnology (SIK) has uses bulk flow of food from production to consumption using

existing data to measure food losses and wastes.

From the economic point of view certain avoidable food losses have a direct and negative

impact on the total income of both farmers and consumers on the whole. The different

food items which are produced transformed and consumed in the different parts of the

world. The overall impact of emerging international trade on food losses still has to be

better assessed and analyzed.

Study of RakeshRao (2012) proposes that India is leading producer of mango globally.

Also it accounts for major exporter of mango pulp in the world with a worth of Rs. 814

crore in 2011. The major export destinations for mango pulp are Saudi Arabia, the

Netherlands, UAE, Yemen, UK, Sudan, Kuwait and Japan. Mango pulp is useful for

preparation of juices, jams, nectars, fruit cheese and various kinds of beverages.

According to the FICCI report on Processed Food and Agribusiness government

provides different initiatives for the growth of food processing industry such as automatic

approval route to FDI of upto 100% equity for all foods and beverages sector with

exception of alcoholic and items reserved for small scale sector. FPI is estimated to grow

further with a rate of 9-12% in future and investment in supply chain system in order to

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increase prices, regular supply and diminish the wastage of products. The report suggests

that investment in supply chain in order to improve costs, make tighter supplies and

minimize wastage of the food commodities.

The study conducted on Non-alcoholic beverage market by ShushmalMaheshwari

(2012)states that carbonated drinks are popular among the teenagers, hot beverages like

tea and coffee are preferred by middle age groups and health conscious people choose the

fruit juices. The market size of non-alcoholic beverage was worth about Rs. 212 billion in

2011 and is projected to grow at a CAGR of about 25 per cent during 2011-2015.

State of India Agriculture (2011-12): The Indian economy is growing at compound

annual growth rate of 8 percent and higher expenditure elasticity for fruits & vegetables

and livestock as compared to cereals, there is an increasing pressure on the prices of such

high value commodities which are perishable in nature.

The per capita monthly consumption of cereals has declined from 14.80 kg in 1983-84 to

12.11 kg in 2004-05 and further to 11.35 kg in 2009-10 in the rural areas. Again, in the

urban areas, it has declined from 11.30 kg in 1983-84 to9.94 kg in 2004-05 and to

9.37kg. in the year 2009-10.

S. Saikrishna (2011), states that India has the potential to become the leading food

producer in the world and at the similar duration it has immense amount of the growing

domestic market consist of nearly 1.21 billion populations. The study reveals that rapid

growth in retail industry, consumer trends towards processed food, global shift for the

outsourcing of the commodities and liberalization policy adopted by the Indian economy

are the major changes happened in the food processing industry.

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2.4 Consumption Pattern of Processed Food

Vinod Kumar Sharma (2011) suggests that analysis of changing food consumption

pattern is an essential requisite for designing appropriate policies which are related to

food production and distribution. The rates of consumption expenditure for beverages

have increased in both rural and urban sector by 345 percent and 242 percent respectively

between the tenure of 1993-1994 to 2009-2010.

The study uses secondary data from various issues of National Sample Survey

Organization (NSSO) publications. The statistical data on the household consumer

expenditure was collected and compiled by the National Sample Survey Organization of

India during its various rounds of enquiries. Collected data further tabulated and

analyzed. Tabular analysis is used to analyze the changes in the food consumption pattern

and expenditure of the individual and households purpose.

UNEP Discussion Paper (2012) focuses towards the major driving force for

consumption patterns of food globally in attaining sustainable food and food systems for

all are growth in population, increasing urbanization and rising income level. At the same

point the paper emphasis on the impact of food consumption by the case studies. The

food demand are directly responsible for rising ecosystem level pressures on land, water

and other natural resources used during food production.

An inadequate access to sufficient and nutritious food results in food insecurity. The lack

of access can result from economic, physical, social and technological barriers or any

combination of these barriers.

NitinTagade (2011): The study made a systematic attempt to analyze the food security in

Maharashtra by taking into account four indicators which are availability, accessibility,

sustainability or stability and utilization or absorption of food. With concern to

availability point of view, two regions in Maharashtra viz., Coastal and Inland. Western

are food deficit, while the other four regions which fall under higher and medium levels

of food sufficiency.

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The availability of the food is determined mainly by three supply factors i.e. agricultural

production, imports and subsidized food grain supply through government agencies like

PDS (Public Distribution system).The data sources taken from census of Maharashtra for

availability of food, NSSO for accessibility of food, Directorate of Economics and

Statistics for Sustainability of food. The overall examination of food availability in

Maharashtra is taken up originally to draw consideration towards the development

process in the State of Maharashtra.

R. H. Jaju (2012): Day by day people are changing their consumption style to match

with the modern era. The main parameters for change in food consumption pattern are

changing life style, urbanization, generation gap, diet diversification, health

consciousness etc. Consumer aptitude decides overall acceptability of the product, by

which consumer receiving more information about food, health, and nutrition and food

safety.

Study on the topic of Gender Effects in Indian Consumption Patterns Shankar

Subramanian (1991) uses various household consumption variables as a tool of

methodology. Further study is based on the consumption patterns of different

commodities with concern to the gender differences like children, adult male, adult

female and also with concern to their respective occupation.

Michel Morisset and Pramod Kumar (2011): The consumption of food is declining

because of gradual shift in consumption pattern from cereal to high value commodities.

The analysis conducted by the household level data on consumption of food from

55thround (1999-2000) and the 61stround(2004-05) of National Sample Surveys

Organization (NSSO).

The analysis of consumption pattern in Urban India reveals that the states with high

consumption and expenditure of food were the states which constitute of major metro

cities. The study further concluded that, the consumption pattern of the individual and

households is observed to shift away from cereals items and pulses towards edible oil,

dry fruits and beverages and other processed productsavailable in the market.

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The paper of BasavarajGali, Pingalu P. Rao (2012) is concerned with the production

and consumption of coarse cereals, sorghum in the major growing states of Maharashtra,

Karnataka and Andhra Pradesh. The main aim is to identify the difference in

consumption habits of sorghum by several income groups in region. The data was

collected from Household consumption data from 61st round of NSSO. Further,

confirmed by household consumption analyzed data at the state level that indicates that

the crop sorghum is still capable to compete with rice and wheat in Maharashtra and with

wheat in that of Karnataka state.

The study further focuses on the Inland Central Maharashtra (ICM), which comprises

with districts including Parbhani, Jalna, Nanded, Hingoli, Beed, Latur, Osmanabad and

Aurangabad, and which include the traditional sorghum consuming belt of Maharashtra,

which has the highest per capita annual consumption of 34kg in urban areas and 54kg in

the rural areas. Finally, it is concluded that still sorghum is considered as a staple food,

and an imperative commodity for food consumption in people residing in the states of

Maharashtra, Karnataka and Andhra Pradesh for daily life.

In the FICCI Event Report (2008) states that the measures and initiatives for

government as well as for private companies to improve linkages of farm to fork,

agricultural productivity, farm incomes and global competitiveness. The key needs of the

food industry are for the development of the infrastructure facility at production,

processing and distribution.

From the report of K. C. Baiju (2004), examines his analysis of consumption pattern in

the state of Kerala using the broadly used and reliable data collected by the National

Sample Survey Organization. By taking consideration of the micro level consumption of

non-food items, particularly consumer durables and luxury goods, seems there is

noticeable upward trend for the same. Further, in the report it is stated that the paradigm

shift is prominent among the middle and upper income groups of Kerala where the

consumption patterns are changing form cereal to non-cereal products.

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Upali A. Tushaar Shah and et al.,(2007)express the views on current shifts in Indian

food consumption patterns and their effects on total demand. For the study they collected

the data of 12 major crops and their demand. It shows that grain consumption is on the

lower side and non-grain consumption in daily diet is increasing in rural and urban area.

It is normally accepted that income and urbanization are two most important drivers

responsible for changing consumption patterns in India. People with low income augment

their nutritional intake through easily available raw material such as cereals and pulses

and other crops.

In the report of Dietary Guidelines for Indians- NIN (2010), certain guidelines are

provided to make a healthy human life such as eat variety of food which make sure the

requirement of the balanced diet for the body, ample quantity of fruits and vegetables

should be taken for diet, salt intake should be in the moderate quantity or restrict

overdose of the salt, processed food which are rich in salt, sugar and fats should be

minimized and above all ensure the use of clean and safe food for the consumption

purpose of Indian peoples.

J. Michael Harris and Noel Blisard, states that significant demographic changes will

offer new opportunities for the food processing industry in world, and the most

remarkable trait of this dramatic change is that the most rapidly growing age group of the

population of age 85 and older. The data collected via BLS Continuing Expenditure

Survey (CES), used to analyze elderly food-expenditure patterns for the study.

The statistical model used in this analysis makes use of information from both consuming

and non-consuming household’s population. The censored normal regression model,

commonly referred to as the Tobit model, is applied to obtain expenditure estimates when

some households purchase and others do not purchase in a given time period of the above

study actually conducted.

According to Indian Agricultural Research Institute (2010)states that, to cope with the

agricultural development and policy measures in the country, research and development

programmes should be improved over the time. The study conducted between the years

19

1960 to 2010. During the 1960’s farm business analysis should be the focal point of the

business, in 1970’s focus towards resource allocation, farm mechanization, and 1980’s

mainly characterized by the technological improvement, pricing policy and during 1990’s

much broader perspective of research programme, environmental and natural resource

policy taking into considerations. Presently, major areas of research include demand

supply of food commodities, investment options in agriculture included.

Allan N. Rae (1999): The patterns of food consumption are undergone with significant

change in several countries with economic development of the nation. The most

influential factors withdrawn from the study is the household expenditure and the

educational level of women. The data for the study collected form household survey to

quantity importance of several socio-economic variables.

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2.5 Factors Influencing Demand of Processed Food:

FAO (2011): The per capita consumption of meat and meat products has increased

merely 1 percent from 42.0 kg/yr in 2010 to 42.1 kg/yr in 2011 due to drought and

disease depleted animal inventories. World market for milk production in 2011 grows by

2 percent to 728 million tonnes due to good prospect shown by the countries like

Argentina, China and India.

NupurChakraborty, ZainabMorbiwala (2008) states that the Indian consumers

demand is still dominated by consumption of ‘fresh’ products. Packaged and processed

food products are readily not accepted in some periphery of the country by the consumers

due to different reasons.

There are certain hurdles present in several fronts which lowers the pace of food

processing sector so to examine the gaps and leveraging on sustainable advantage is

prime important from the country point of view. Nonetheless, agriculture in India is

driven by the practice of production driven market supply in place of market driven

production which leads to the inconsistency of appropriate quality of produce and supply

attributes.

FAO (2010-11) in the report of State of food and agriculture, recognize that unexpected

price hike and volatility are among the major threats to maintain food security. The main

reason behind that is the inadequate reliable and recent information supply and demand

and of crop availability for export.

The study further explains the role of women, who make significant contributions to the

field of agriculture in developing countries, however their roles vary drastically with

concern to the region and are changing rapidly in some area and also use the time of

women for more productive activities of the farm.

SrikantaChatterjee, Allan Rae and et al.,(2009): Changes in food consumption

patterns between 1987-88 to 1999-2000, make shifts from cereal to non-cereal item. The

21

findings stated that cereal consumption decreases in urban India, increase in the

popularity of cereal substitutes such as tapioca and change in the food preferences

happens for the fruits, vegetable, meat, fish in both rural and urban areas.

The report on Escalating Competency: Maharashtra food and Agro processing sector

(2010) estimated the value of the global processed food industry was USD 4.2 trillion in

2008-09. Maharashtra is the largest producer of banana (75%), mandarin oranges (75%),

seedless grapes (78%), onions (63%) and tomatoes (42%). The state has presently 6512

small and medium and 322 large scale processing units.

The report further states that Maharashtra has highest Gross State Domestic Product

(GSDP) in India and contributes more than 13% cent of national GDP. Food and Agro

processing industries have huge potential for uplifting economy of the nation, creation of

large scale food manufacturing opportunities, generation of employment and Increase in

living standard of the population.

SevtapGulerGumus, Fazil Akin Olgun and et al., (2010): The survey was conducted

with face to face interview regarding household consumption. The main aim to study the

sufficient nutritional level of different income group, particularly for food poverty line to

know their calorie intake and problems associated with nutrition. The paper is based on

data collected by a survey of rural households in Turkey.

Survey conducted by the researchers in the Aegean region of Turkey, which is an

essential region for both agricultural and non-agricultural production. Additionally, the

three prefectures with the highest, average and the lowest socio-economic development

index were chosen to represent the Aegean region as a whole for the study.

The study undertaken by Drewnowski A, Popkin B M (1997) reveals a major shift in the

global diet by means of typical relationship between incomes and fat intakes. The

availability of cheap vegetable oils and fats has resulted in more consumption of fat

among the low income countries. It may hamper the health and nutrition transition which

includes rising rates of childhood obesity.

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The study of SwarnaSadasivanVepamade an attempt to examine the dietary patterns of

urban and rural people in India with the influence of employment, incomes and market

forces. Study also target on implications of these consumption patterns on the nutritional

status of the population. The study observed that eating outside the home is one of the

main changes during the last decade. Factors such as distances within larger cities,

women entering in the workforce and government programmes giving food assistance to

both school going children, strengthen the pattern of eating at least some meals away

from home and others.

Pradyumn Sharma (2011) states that with the help of the cold chain management, there

should be a relevant solution of the huge amount of food wastage in India. Cold chain is

responsible for maintaining the quality of the fruits and vegetables and extending the

shelf life of the commodities.

DeepankarBasu, AmitBasole (2012) states in their study that despite the increase in the

per capita monthly expenditure the average per capita calorie intake has declined over the

last four decades. The main factors responsible for this puzzle are rural impoverishment,

relative price changes, decline in calorie needs, diversification of diets and decline in

subsistence consumption.

According to Barry Popkin, Shu Wen Ng (2006), the dieting pattern of the developing

world are shifting quickly by means of more fats, more added caloric sweeteners, more

animal source food. The paper demonstrates the problems of multi-country studies,

ecological data and case studies of China to understand the nature of shift of consumption

patterns.

Praduman Kumar, Anjani Kumar and et al., (2011): The study explains food

demand in India has been scrutinized with the structural shift in the dietary consumption

pattern of its population. Additionally results have strengthened the hypothesis of a

significant diversification in the dietary pattern of households in recent past. The study

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has discovered that the projected income elasticities differ across all income classes and

are lowest for cereals group and highest for horticultural and livestock products etc.

The study suggested that with estimated demand system the increase in food price

inflation, the demand for staple food may not be affected unpleasantly but, that of high

value food commodities is likely to be negatively affected. The data on dietary pattern

and consumer expenditures collected by National Sample Survey Organization (NSSO)

were used for this study, under major rounds of National Sample Survey (NSS)

covering the years 1983, 1987-88, 1993-94, 1999-00 and 2004-05 were used.

According to National Food Processing Policy there are huge growth prospect for the

food processing sector and it is projected that the food production will double in the

next 10 years and the consumption of value added food products will nurture at a

fastertempo in the country.

However, the growth of the Food Processing Industry will bring massive benefits to the

economy, increasing agricultural production, meeting the productivity target, providing

employment opportunity and raising the standard of living of number of people through

out the country, particularly in the rural areas. Also, Economic liberalization and getting

higher consumer affluence is started up new opportunities for diversification in Food

Processing Sector in India.

As per the view of the Shankar Suwan Singh, John David (2012) food safety

continuous to be the global concern. International food standards are useful for meeting

the legal and regulatory obligations. It further emphasis on the requirement of the QMS

(Quality Management System) which includes establishment, documentation,

implementation and maintain the quality and continually improve its effectiveness with

concern to requirements of the International Food Standards (IFS).

IFS improve the overall effectiveness of the quality management system by use of quality

policy, quality objective, analysis of data, results of audit, corrective and preventive

actions for quality and reviews taken by management.

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2.6 Food Habits of Conventional and Emerging Food Products

Crops Division, Department of Agriculture and Co-operation (2011) in the context of

its Report of working group on food grains- balancing demand and supply during 12th

five year plan reveals that with sustained economic growth and increased demand of

urban population for different food items is growing on one side and on other side dietary

preferences have changing.

The methodology for demand projections is done with the help of the two approaches

namely, normative and behaviouristic Approach. The normative approach estimates

demand on the basis of requirement of food grains, oilseeds and sugar as suggested by the

NIN, Hyderabad. However, behaviouistic approach is based on the growth of population

and changing behavior of consumption mainly concern to changing per capita income in

the current escalating economy.

Josef Schmidhuber, PrakashShetty (2005): Agricultural productivity, rising incomes

and better nutrition are equally important for overall economic development. Now the

present era known for Urbanization which means more female participation in the work

force of the country so the changing preferences occurs from traditional time consuming

food preparations to precooked food, convenience food, fast food or snacks and other

processed food products.

The fast food industry providing fast access towards meals available at affordable prices,

take away services, home delivery services. It also caters for other needs, such as the

desire to eat a salt, sugar and fat rich diet in daily life, and to benefit from access to these

formerly scarce energy resources used. Many developed countries faces the alterations in

the consumption patterns and lifestyles living and a rapid increase in the occurrence of

overweight, obesity and related problems.

James Seale, Jr., Anita Regmi and et al., (2003): The most promising factor for shift in

the food trade is the income growth in both developing and developed countries. Due to

increased calorie intake and population rise in developing countries there is an

25

increasingdemand for grains and oilseeds. Globalization, transportation facility and

increased purchasing power result into increased demand for higher value food products

like fruits, vegetables, meats and processed food products. It uses demand analysis,

comparison project data for the study.

The low income country spends a greater quantity of their budget on requirements, like

food and stapes etc., whilst richer country spends a greater quantity of their income on

luxuries items, like recreation. Low-value staples, like cereals, account for a larger share

of the food budget in poorer countries, while high-value food items, such as dairy and

meat, are a larger share in richer countries of their respective food budget. This study

examines the demand prospect across 114 countries and presents results that can be used

to predict future of the food demand in it.

In the report presented by APEDA (2012) the 10 point programme has suggested

improving the agricultural export as well as domestic production and consumption.

Indian varied agricultural sector provides livelihood and employment to about two thirds

of the total population in India. Thus, it is the principal source of revenue and constitutes

around nearly 17 per cent GDP of the total GDP of India.

It is mainly to promote the availability of good quality safe raw material certified by

Good Agricultural Practices (GAP) and promote food processing on large scale through

assistance for introduction of new technology which is helpful to provide the solution to

the problem associated with the food production, export, maintaining the quality

standards and other constraints.

Stacey Rosen, Birgit Meade et al. (July 2012): It explained the food access depends on

individual purchasing power. Food consumption is based on the income consumption

relationship. Food insecurity occurs when per capita consumption for a country is less

than the nutritional target of 2,100 calories per person per day.

Adebayo, OyefunkeOlayemi and et al., (2013): The study mainly focuses towards

analyzing the elasticity of demand for the various food groups by use of AIDS model. In

26

study final recommendation has been made for government to encourage local production

and agricultural goods. Study was carried out in Akinyele local government area of Oyo

state. The major objective of this study is to analyze the household food consumption

pattern of small scalefarmers in the study area of the specific region. For the study, Multi-

stage sampling technique was adopted in selecting respondents for this study.

The study focuses towards the problem of obesity byEmilyBrindal (2010) targeting fast

food consumption. Further it reveals that the energy provided by fast food meal is

appropriate in terms of daily intake but due to increased meal sizes, poor ordering

decisions and choice of fast food restaurant energy balance fluctuates and long term

health problem arises.

The study of S. Maheshwari (2010) on Indian fast food sector shows fast food segment

includes pizza, burger, French fries etc. items which are some of the favourites among

thenew young generation. The main factors which are responsible for growth of fast food

industry are increased westernization, growing number of working professionals, busy

life schedule, less time consuming processes.Indian fast food sector is growing at highest

growth rate of 25-30%.

Rahul Ashok (2010), study expressed that in 2009 the size of the organized snack market

in India is worth $ 1.5 million and has whooping CAGR (Compound Annual Growth

Rate) of 15%. The major driving forces of snack market include chocolate, potato chips

and nuts and seeds. Manufacture has to innovate the new changes with concern to the

new flavours, new formats to cater to the consumer’s desire.

Saweta Rai, Poonam A and et al., (2011): Through highly effective procurement and

distribution systems modern chain food retailing stores are able to offer consumer lower

prices, greater convenience and higher quality of foods. It taken into consideration the

survey conducted by North American Industry Classification Systems shows that most of

the selling includes a range of food items and also growing trend of non-food items are

also offered.

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Grocery stores which includes supermarket, smaller grocery stores and convenience

stores accounting for the 96 percent of the food stores sales in 2002. Specialized stores

such as meat market, produce markets, retail bakeries and candy and nut stores accounted

for 4 percent of the food store sales.

P. K. Aggarwal, P. K. Joshi and et al., (2004): Explains the concept of Indo-Gangetic

plain which consists of Pakistan, India, Nepal and Bangladesh and the region is

characterized by presence of fertile soils, suitable agro climatic conditions and ample

availability of water. All leads to longer term and better socio-economic and

environmental benefits to the said region. Appropriate analytical tools such as simulation

models useful for cropping systems, water distribution and some economic

considerations need to be conveyed together to achieve the goal to develope decision

support systems (DSS) for the area.

RakeshRao (2010), Use the study of urban and rural regions contributions to total snack

market is 67% and 33% with CAGR for last two years is 13.2% and 26.7% respectively.

The major players in the format of organized snack sectors to get major market share and

major assistances are ITC foods, Haldiram’s, Parle Agro, Con Agra, Pritolay, McCain

Foods and others.

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2.7 Regulations for food standards and Food Security

Focusing on the point of importance of food standards Keshav B. Kamaliya (2011)

states that strict imposition of the quality standards is the extremely important. Further

explains that to protect the consumer’s interest restriction of the use of inferior

technology and substandard ingredients for the manufacturing of products, government

has implemented different improvements and enforcement of mandatory and voluntary

legislations which are required from the health protection and fair trade point of view.

R. V. Sudershan, Partita Rao and et al., (2009): States that food safety has emerged as

an important global issue with international trade and public health implications for the

sector. Numerous food safety programs have become ever more important due to

technological progress in food and agricultural sectors and also due to social changes

introducing new food patterns and demands of the customer. The methodology applied

for the study includes data published in referred journals, websites and published data

from universities appeared in the variety of doctoral theses and dissertations at the post

graduate level. The data mainly collected from the duration of 1995-2005 from the

different literature and reviewed for analysis.

R. H. Jaju (2012) states that in addition to the food laws and regulations, food standards

also establish requirements for the safety and quality of foods. However, unless a food

standard is part of food regulation it is not granted as a legal requirement. The codex

standard formulated by the CAC (Codex Alimentarius Commission) is the best example

of the food standards. It is a combination of the standards for the food quality, food

suitability and food safety.

There are different features in Indian agricultural industry which can attract foreign

investment for the milk and dairy products, poultry and meat segment and others. To

achieve this India should adopt the trends of research in the field of food technology,

provide value addition and to meet the quality and safety regulations established by the

WTO (World Trade Organization),A. Kaur, K. S. Minhas (2011).

29

The study further emphasizing the modern food technologies which ensures the food

security of the global world. It includes different technologies such as food preservation

and technology, radiation processing, ohmic heating, high hydrostatic pressure, food nano

biotechnology, high pressure electric field pulse technology, micro encapsulation

technology, biosensors and E – noses, robotics, prebiotics and probiotics, transgenic food,

organic food and others.

In the report The Future of Food and Farming (2011) indicates that there is presence

of drivers which make considerable challenges to food security aspect, constitute a major

menace that requires a strategic reassessment of feeding the world. The report further

briefs about five key challenges for the future world enlisted below.

• Balancing of the food demand and supply in the future to make sure about cheap

availability of the foodstuffs.

• Confirmation about satisfactory food supply and protection of the vulnerable and

all population.

• Attainment of worldwide approach for food supplies and eradication of hunger by

producing the required food to the world.

• Managing the involvement of the food system to the alleviation of climate change

occurs.

• To maintain the biodiversity and ecosystem network series which are useful for

feeding the world.

S. K. Goyal and J. P. Singh (2001): The present make an attempt to address three issues

mainly, the present food supply and future trend, movement in food consumption pattern

over the years and food demand prediction for the next three decades in the perspective

of food security aspect. The data required for study to be conducted, collected with

concern to an area, production, productivity and other variables of essential foodgrains

were collected from different published sources including, economic survey of India,

Agricultural Statistics at a Glance, Agriculture in Brief, for the period 1960-61 to 1998-

30

99 duration. The required data on consumer expenditure for rural and urban consumers

were gathered from various rounds of National Sample Survey Organization’s rounds.

Pradyumn Sharma (2011), states that with the help of fruitful collaborations, India in a

position to develop revolutionary changes to renovate agricultural systems and facing the

challenges of food security in India and in the world. Collaborations with the various

MNC’s will definitely fruitful to the country due to heavy investment options,

international research, extension and education, assistance to Indian farmers and

producers and others.

NupurChakraborty, ZainabMorbiwala (2008), states that though Indian growers,

producers and exporters are able to match upto the international standard, still meeting

the different standard with up scaling of the production will remain as a big challenge for

the future. The concerns for traceability in the fresh produce and hygienic conditions in

the packaged foods needs to be analyzed.

The study conducted on use of TIC’s as a managing tool for traceability in the food

industry by D. B. Pinto, I. Castro (2006), states that food safety has become an

important attribute which ensures food quality. PaniGest is a user friendly computer

package mainly designed to manage traceability and help in the quality control and

production improvement in the food industry. The application was developed in visual

basic language over an SQL database and its peculiar feature includes, registering quality

control parameters of raw materials, to manage reception, production and expedition

orders and to analyze production costs, productivity, raw materials and consumption of

products and also to outline products during the food chain services.

International Food Security Assessment (2012): The report prepared by USDA states

that food availability means supply of food commodities subtracted by the non-food use

such as feed, waste, industrial use and exports products.Food insecurity occurs when per

capita food consumption for a country falls short of the nutritional target of roughly 2,100

calories per person per day (Sub Saharan African Countries).

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The model of Food Security Assessment was developed by USDA’s Economic Research

Service to assign the projected food consumption, food access, and food gaps in low

income countries by 2022. Food is divided into three main categories namely grains, root

crops, and other, which comprises all other commodities consumed, thus covering 100

percent of food consumption.

The Food security of a country is calculated based on the gap between expected domestic

food consumption i.e. domestic productions in addition with imports and subtraction of

non-food use and a consumption requirement. The study further uses the total food aid

data which mainly includes cereal and non-cereal food commodities, prided by the World

Food Program (WFP).