Indians spend a higher percentage of their earnings on food consumption, compared with other countries globally, Ramachandra N Galla, chairman of Amara Raja Group, said.
While urban India spends around 39 per cent of its income, it is 52 per cent for rural India, he said while addressing a conference on ‘Emerging Technologies in Food Processing Industry’, organised by the Confederation of Indian Industry.
“During the period between 1988 and 2007, the monthly per-capita expenditure on food in urban India grew at a CAGR of 7.17 per cent while in rural India it grew 6.98 per cent,” Shakti Sagar, chairman, CII- Andhra Pradesh, said.
The domestic food market is likely to grow to $300-billion by 2015 from the now $190-billion. “The growth drivers would be increasing income level, consumption and demand for food products,” Galla added.
“In India, the processing levels and value addition across perishable segments are extremely low compared with developed countries. Only 2.2 percent of the total production of fruits and vegetables are processed, compared with 30 per cent in Thailand and 80 per cent in Philippines and Malaysia,” Anil Kumar V Epur, convenor - (Task Force on Agriculture), CII -AP, said.