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The agricultural market intelligence project under National Agricultural Higher Education Project of the Indian Council of Agriculture Research is a unique effort to encompass the relationship between various production techniques like contract farming and post-harvest management techniques. It also ensures that food safety and standards are followed in the existing supply chain and value chain networks. It is one of its kind of research where a team of self motivated researchers have come up together to resolve some key issues related to the agriculture sector under the guidance of the agricultural university. The main aim of this market intelligence project is to increase farmer’s income by giving them insight into the market and improve the decision-making ability. Along with this, the project also aims to motivate them for value-addition to diversify the supply of crops into various value-added products. This would help the farmers earn more and increase the shelf life of the perishables. Marketing intelligence helps in the better and efficient allocation of productive resources. The bargaining power of farmers with traders as well as the share of farmers in consumer rupees could also be improved. The reduction in risk associated could lead to the reduction of transaction costs (i.e., the costs of selling the produce). The marketing intelligence would help farmers in deciding the market as well as the marketing channel. With the help of market intelligence, farmers can switch to high-value crops that would generate better returns for them. Market Intelligence also serves as a component of Early Warning Systems for ensuring food security as it can assist in identifying areas of possible expansions of marketing activities.

Indian Food Processing Industry (FPI) is one of the most untapped industries with abundant raw material to grow at a higher rate. FPI has been identified as a priority list in the “MAKE IN INDIA” program by the Government of India to boost its domestic manufacturing and export share. In the last few years, FPI has emerged as a high-growth and high-profit sector due to its immense potential for value addition while processing food products at various stages. The degree of processing of value addition to agricultural produce in India (20 %) is very low as compared to other countries, such as China (40 %), Brazil (70 %), and Malaysia (80 %). In India, the degree of processed food products ranges between 2 per cent (fruits and vegetables) and 35 per cent (milk) for various agriculture products. Hence there exist a huge potential for the growth of this sector in India. The export value of FPI was US$29.12 billion in 2016 and its share in world import was 2.18 per cent (Agarwal & Neogi, 2017). India’s food processing sector covers fruit and vegetables; spices; meat and poultry; milk and milk products, alcoholic beverages, fisheries, plantation, grain processing, and other consumer product groups like confectionery, chocolates and cocoa products, soya-based products, mineral water, high protein foods, etc. The output of India’s food processing sector is expected to reach USD 535 Billion by 2025-26 (Invest India, 2020). Out of this, foreign investment is around Rs.10,000 crores (APEDA, 2020). Besides this, Government has also approved proposals for joint ventures; foreign collaboration, industrial licenses, and 100 per cent export-oriented units envisaging an investment.

Horticulture is increasingly recognized as a sunrise sector, owing to its potential to raise farm income, provide livelihood security and earn foreign exchange through export. The diverse agro-climatic conditions and rich diversity in crops and genetic resources enable India to produce a wide range of horticultural crops round the year. To cite an example, India produces tropical fruit like mango and sub-tropical fruit like an apple at the same season in a year (Jha et al., 2019). The horticulture sector encompasses a wide range of crops like fruits, vegetables, flowers, spices, plantation crops like coconut, beverages like tea and coffee, and some medicinal and aromatic plants. Statistics provided by National Horticulture Development Board showed that India is the second largest producer of the commodities, after China, accounting for 13 per cent of the global production of fruits and 21 per cent of vegetables. (DAC&FW, 2017). Economic reforms and policies further increased the speed of diversification in favor of horticulture crops (Jha et al., 2019). This is on account of the increased domestic demand from high-value food commodities as well as for export markets. The diversification process that is seen within the agricultural sector also got transmitted to the horticultural sector. In line with the emerging demands, India has taken several technical and policy initiatives for promoting horticulture. The most important among is the newer technology packages spanning from production to postharvest (Jha et al., 2019).

3.1. General Introduction Value addition refers to the conversion of a raw commodity or commodities into a processed product through the use of raw materials, labour, time and technology, all mixed in a way that ensures increased economic return. Even if the amount of processing in a product is much less, for example, any canned fruit can be considered as a processed product. Value added processing of horticultural food crops, mainly involves actions which changes fresh fruits and vegetables to create a greater value-added product for human consumption, which mostly includes canned products, juices, soups, sauces and dehydrated fruits and vegetables (Sharan, 2018). It results in diversification of agricultural activities, improves value addition opportunities and creates surplus for export of processed agro products. Processing often goes with perishable products like meat, milk, poultry, fruits and vegetables, often termed as High Value Products (HVPs), are in greater demand of processing (Sanal & Krishna, 2017). The demands for processed products are particularly strong in developing countries like China and India; mainly due to increasing industrialization and rapid urbanization, followed by elevated income levels, greater diversity in diets, and affinity towards premium-branded products (Sharan, 2018).

Trade in fruit and vegetable products has been among the most dynamic areas of national as well as international agricultural trade, stimulated by rising incomes and growing consumer interest in product variety, freshness, convenience, and year-round availability. Advances in production, postharvest handling, processing, and logistical technologies—along with increased levels of international investments have played a facilitating role. 4.1. Global Trade of Processed Fruits & Vegetables 4.1.1. Country Wise Trends of Export in Value-Added Fruits Table 4.1 shows the processed fruits export of top 15 countries in the global market. The USA remained the largest exporter at global level with the exports valued at USD 15089573 thousand with a share of about 12 per cent. The Compound Annual Growth Rate (CAGR %) of the USA was noted 7.58 per cent. Spain is the second largest exporter of processed fruits and vegetables with the CAGR of 6.14 per cent and share of 8 per cent. Some other dominant exporting nations are namely, Mexico, Netherlands, China, and Chile, showing a CAGR nearly, 13 per cent, 11 per cent, 16 per cent and 9 per cent, respectively.

The Government of India has accorded ‘high priority’ status to the food processing industry. The Ministry of Food Processing Industries (MOFPI) has been set up as a nodal agency for formulation and implementation of the policies and plans for the food processing industries. With an overall objective of positioning India as the ‘Food Basket’ to the world, several initiatives have been undertaken with the objective of promoting investments, innovation and bringing best practices. This vision is in line with the ‘Make in India’ initiative of the Government (CII, 2019). 5.1. Policy Interventions (MOFPI, 2019) 5.1.1. Infrastructure Development Fragmented, inadequate, and inefficient infrastructure along the supply chain has been identified as one of major factor inhibiting growth of food processing sector. As adequate investment for infrastructure has not been forthcoming from private sector, government will continue to assist, participate and incentivize creation of supply chain infrastructure for food processing sector.

Like other sectors of the economy food processing sector also suffers from certain constraints. The challenges for the food conservation, distribution and processing sectors are diverse and demanding, which need to be addressed to leverage the growth of agriculture and food processing sector. Following are the major challenges and strategies are suggested to overcome the challenges (Sakina, 2019). 6.1. Domestic Constraints in the Development of Food Processing Industry in India Despite the significant economic potential of the FPI in India, it still faces massive domestic challenges, which include low level of processing, fragmented structure of the industry, consumer perception and lack of skilled manpower. Firstly, low level of processing means that at industrial level, less food is processed, as compared to household level. Most of the traditional food items like jams, jellies, pickles etc. are prepared at small manufacturing units or by households (Agarwal & Neogi, 2017). Secondly, consumer perception with regard to processed food in India is not very optimistic and they consider that packaged food is not fresh, thus, leading to low consumption of processed food. Thirdly, food processing sector is still highly fragmented and unorganised. This led to the inefficacies in the sector and has failed to achieve the economies of scale (Agarwal & Neogi, 2017).