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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).

1.1. Global Dairy Scenario

Global milk production is forecast at 852 million tonnes in 2019, an increase of 1.4 per cent from 2018 (DAHD, 2019) – a smaller rate of growth, reflecting downward revisions made for India and the European Union. Much of the anticipated output expansion will originate in India, Pakistan, China, the European Union, and Brazil, partially offset by declines in some countries including Australia, Colombia, and Argentina. In India and Pakistan, herd expansions drive output growth, while in China, farm efficiency improvements underpin higher growth. The output is increasing in the European Union, although slowly as dry weather limited the supply of milk during the summer, whilst rising dairy herds and stable milk prices are supporting higher production in Brazil. By contrast, the output may decline in Australia and Colombia due to dry weather, whereas in Argentina, rising feed costs and restrained consumer demand may dampen production. Elsewhere, in the United States, higher milk yields hold up the growth momentum, whereas, in New Zealand, favourable weather corroborates a positive production outlook (DAHD,19).

In India, about 46 per cent of the milk produced is either consumed at the producer level or sold to non-producers in the rural area, the balance 54 per cent of the milk is available for sale to organized and unorganized players. The organized sector comprises of Government, Producers’ Owned Institutions (Milk Cooperatives & Producer Companies), and Private players which provides a fair and transparent system of milk collection round the year at the village level. The unorganized/informal sector involves local milkmen, dudhias, contractors, etc. and they are mostly found to be opportunistic, as there is no uniformity of milk price paid to producers and it varies depending upon the situation. The possibility of adulteration of milk is higher among these unorganized groups. In the areas where competition is high and the presence of the formal sector is strong, the unorganized sector generally gives higher prices and at the same time, the unorganized sector doesn’t offer remunerative prices to the producers where the organized sector is not present.

Cheese, butter, whole milk powder, and skimmed milk powder are a major part of the world’s dairy trade. The demand for worldwide dairy exports is highly concentrated. With a share of 12 per cent, New Zealand is the largest exporter of dairy products, followed by Germany, Netherlands, France and the US. Germany has been the world’s major dairy importer as well with a share of 10 per cent. Other large dairy product importers are China, Netherlands, France, Italy and Belgium.

Before 1999, India was a net importer of dairy products. The successful implementation of the ‘Operation Flood’ program and trade reforms caused the direction of India’s dairy trade to change marginally. India has been a net exporter of dairy products since 2000. Statistics show that India’s export share of dairy products over world dairy exports increased marginally from 0.1 per cent in 2001 to 0.5 per cent in 2019, while its import share of dairy products over world dairy imports increased marginally from 0.018 per cent in 2001 to 0.04 per cent in 2019. The Middle East, South Asia, South East Asia, and the USA are the major markets for India’s dairy products. Conversely, India is a favorable market for the European Union, New Zealand, Australia, UAE, and US dairy products.

In monetary terms, value-added’ per unit of the product is the margin between its selling price and cost of production. However, in the dairy and food industry, value addition refers to, extra, features of a product that are beyond the expectations of a consumer at little or no extra cost. In this context, the addition of value to milk can involve monetary value added to a liter of milk by turning it into milk products, enhancing the convenience of quality, shelf life, or health characteristics using processing and packaging interventions.

4.1. Conversion of Milk into Conventional Products

It is an age-old tradition to add value to milk by processing it into milk products. The primary aim was to increase the shelf life of milk that would otherwise be highly perishable. With inadequate facilities to preserve liquid milk fresh in the rural areas’ conversion of milk into a variety of milk products would be an ideal option to effectively preserve the huge quantities of milk procured during the flush season’ In the processing of milk products such as cream, butter, cheese and ghee, by-products such as skim milk, buttermilk, whey, and ghee residue are obtained’ Many of the dairy plants, particularly in India’ are usually confronted with the problem of by-products utilization, especially that of whey and ghee residue in an economical manner. Membrane separation processes have presented new possibilities for the production of newer intermediate products from dairy by-products that can be used for value addition in dairy and food industries.

Livestock is considered one of the essential variables in the revenue of a farmer. The sector (excluding fisheries) contributes 30 per cent to India’s agriculture gross domestic product, and it is valued at more than Rs. 9 lakh crores. India is also one of the largest producers of milk in the world; around 70 million rural households are engaged in professions linked to dairy. India is also the second largest exporter of bovine meat after Brazil. This sector provides a substantial income to farmers and supports the economy by generating enough demand in the rural and semi-urban regions. This animal husbandry sector comprising dairy and poultry is extremely valuable for farmer’s income security, and Covid-19 has the potential to disrupt this sector.

In developing countries such as India, where dairy farming is one of the most important sources of livelihood for 60 million rural households, 80 per cent of whom are landless, small and marginal farmers who depend on dairy for daily income, the crisis is extreme. Thus, even a small decline in the growth of the dairy sector significantly affects a large chunk of our population which are already vulnerable due to low income, poor savings, and lack of livelihood alternatives. Small production in multiple households leads to more reliance on efficient transportation for procurement. In addition to this, the Indian dairy sector is still dominated by the unorganized sector which handles more than 50 per cent of the marketable surplus. Milkman and vendors collect a small quantity of loose milk from different households and then supply it to urban consumers, roadside eateries, hotels, and sweetshops. Closure of shops and restrictions on transportation has ruthlessly disturbed this arrangement. Even in the formal sector out of the total milk processed 65 to 70 per cent is sold as liquid milk which is immediately vended after packing and only 30 per cent is processed into other dairy products like ghee, butter, cheese, curd, ice-cream, milk powder, etc. Thus, the formal sector also lacks sufficient infrastructure and storage facilities for processing and storing surplus milk after value addition.

The GOI is pushing to strengthen infrastructure for the production of quality milk, as well as for procurement, processing, and marketing of milk and milk products through the following Dairy Development Schemes:

6.1. Dairy Entrepreneurship Development Scheme (DEDS)

Dairy Entrepreneurship Development Scheme (DEDS) was started in September 2010. This scheme is being implemented through NABARD which provides financial assistance to commercially bankable projects with loans from Commercial, Cooperative, Urban and Rural banks.

Objective of the scheme

To generate self-employment and provide infrastructure for the dairy sector, to set up modern dairy farms and infrastructure for the production of clean milk, to encourage heifer calf rearing for conservation and development of good breeding stock, to bring structural changes in the unorganized sector so that initial processing of milk can be taken up at the village level, to upgrade traditional technology to handle milk on a commercial scale, to provide value addition to milk through processing and production of milk products.

7.1. Challenges in Milk Quality

Demand for milk and milk products in India is growing very rapidly, owing to urbanization, customer convenience, and the change from loose to packaged milk products. At present, the dairy sector is rising at about 10-12 per cent annually. Based on population growth projections and an increase in urbanization over the next four decades, India is projected to need approximately 600 million tonnes of milk per year to meet the demand for milk and milk products. This means that India’s milk production needs to grow at around 3.2 per cent CAGR for the next 40 years (FICCI, 2020).

Main reason of poor quantity of milk is due to unhygienic and poor condition of animal farms and dairies. Even due to high demand in foreign country we cannot export such poor quality of milk product. Many times, Indian milk products get rejected in foreign nations due to unhygienic milking milk contains high number of microbial counts. Reasons behind the quality affected in India are due to poor health of animal, polluted water and food and Unclean surrounding in farm. So, it is necessary to consider all this challenges in improving milk production. Currently most of the milking animals are not screened on regular interval of time. So, there is lots of chances that some diseases can transmitted to human beings. Farmers use antibiotics and chemical drugs to increase the production of milk this will also affect the quality of milk. These issues can be avoided by regular screening of animals in animal husbandry and also maintaining history records of health, feed etc. Quality of feed should be checked regularly. There must be pollution control in the feed and water used in cattle farms (Bhagyalaxmi, 2020).

a) A Key GDP Contributor: Dairy and Livestock sector form the backbone of agriculture with 28 per cent contribution in GDP and the progress in this sector is dependent on innovative measures to increase the value for farmers as well as customers.

b) Doubling Farmer’s Income : Doubling Farmer’s Income by 2022 can be achieved by improving crop and livestock productivity, efficiency to utilize resources, increased intensity of cultivation and diversification in high value cash crops, processing and value addition of food and animal products. This price realization can be assured through market reforms and efficient market linkages.

c) Unorganised sector – a challenge : The Indian dairy sector is still characterized by strong presence of unorganized sector. Apart from the Cooperative dairy sector, in the last few years there has been a considerable growth in Private Dairy sector and Milk Producers Organization like Maahi in Gujarat. If small dairy farmers are provided with sufficient ‘value addition’ training and support, they can increase their income considerably.

d) Value addition : Further, the milk processing plants can also go for value addition and innovation and in turn pay remunerative prices to milk producers.

Primary processing of fruits and vegetables refers to the first steps in transforming raw agricultural products into forms more suitable for consumption, storage or further processing. This step generally includes cleaning, sorting, grading, cutting, peeling and packaging of the products. The aim of primary processing is to preserve the nutritional quality, taste and appearance of the products by extending their shelf life and making them more suitable for consumers or ready for secondary processing. For example, fruits may be peeled, cut or peeled, and vegetables may be washed, chopped, or blanched. This step is essential in the agribusiness industry because it has a direct impact on the quality and safety of the final product, ensuring that it meets market requirements, food safety standards and consumer preferences. The efficiency and methods used in primary processing significantly affect overall profitability, product quality and market competitiveness.
Primary processing refers to the initial stages of preparing fruits and vegetables for consumption while preserving their nutritional value, freshness and flavour. This essential step involves various techniques for cleaning, sorting and packaging the produce, ensuring that it reaches consumers in the best possible condition.

Washing is typically the first step in the fruit and vegetable production process. In small-scale operations, this is usually done in basins with recirculating water or with still water that is regularly replaced. The goal of washing is to remove dirt and contaminants from the produce before it enters the processing line, preventing potential contamination of the raw materials.
The washing should be done with clean water, as pure as possible, and if needed, the water can be made potable by adding 10 ml of a 10% sodium hypochlorite solution for every 100 liters of water. It’s also important to use tools that ensure thorough cleaning of the produce, leaving no dirt behind for the next stages of processing.
THE VEGETABLE WASHING MACHINE'S PRINCIPLE
A vegetable washing machine was designed and manufactured with the needs of micro, small, and medium-scale vegetable growers in mind. The machine focuses on high washing capacity and efficiency, with stainless steel components used to ensure the quality of the washed produce. A durable primary frame was incorporated to maintain the machine’s structural integrity.
To enhance safety and ease of use, protective coverings were added around the moving parts, while also prioritizing ergonomic design and straightforward operation and maintenance. The machine features rollers for easy mobility, and as the vegetables move along the conveyor belt at a set speed, sprinklers spray water to clean them effectively.

Washing is typically the first step in the fruit and vegetable production process. In small-scale operations, this is usually done in basins with recirculating water or with still water that is regularly replaced. The goal of washing is to remove dirt and contaminants from the produce before it enters the processing line, preventing potential contamination of the raw materials.
The washing should be done with clean water, as pure as possible, and if needed, the water can be made potable by adding 10 ml of a 10% sodium hypochlorite solution for every 100 liters of water. It’s also important to use tools that ensure thorough cleaning of the produce, leaving no dirt behind for the next stages of processing.
THE VEGETABLE WASHING MACHINE'S PRINCIPLE
A vegetable washing machine was designed and manufactured with the needs of micro, small, and medium-scale vegetable growers in mind. The machine focuses on high washing capacity and efficiency, with stainless steel components used to ensure the quality of the washed produce. A durable primary frame was incorporated to maintain the machine’s structural integrity.
To enhance safety and ease of use, protective coverings were added around the moving parts, while also prioritizing ergonomic design and straightforward operation and maintenance. The machine features rollers for easy mobility, and as the vegetables move along the conveyor belt at a set speed, sprinklers spray water to clean them effectively.

Freezing is among the oldest and most commonly used techniques for preserving food, as it effectively maintains taste, texture, and nutritional value better than other preservation methods. This process leverages the advantages of low temperatures, which inhibit microbial growth, slow down chemical reactions, and delay cellular metabolic activities.
ROLE OF REFRIGERATION SYSTEMS FOR FRUITS AND
VEGETABLES
Proper collection, handling, storage, and distribution of fruits and vegetables are crucial to ensuring they reach consumers in the best possible condition. Refrigeration plays a key role in maintaining freshness and extending the shelf life of these products. Companies involved in production, processing, and marketing that implement efficient commercial and industrial refrigeration systems benefit in several ways:
• Slowing down the ripening and aging of tissue cells.
• Preventing microbial growth.
• Reducing overall quantitative and qualitative losses.

Pre-cooling is an essential process in the post-harvest stage of perishable produce. It involves swiftly removing heat from freshly harvested fruits and vegetables, reducing quality loss and extending shelf life. The advantages of precooling are evident not only in the enhanced quality of the produce but also in the increased profitability for growers.
In addition to improving quality and shelf life, pre-cooling helps curb the growth of microorganisms. Lower temperatures effectively prevent the growth of both existing and potential microbes, aiding in the preservation of the produce.
Field heat, which refers to the temperature difference between the freshly harvested produce and its optimal storage temperature, highlights the importance of precooling. The method of precooling selected depends on the perishability of the produce and the refrigeration equipment available, emphasizing the need for a customized approach.
Many studies stress the importance of precooling for storing and transporting produce over long distances. In this context, the focus is not on whether to precool, but on how to choose and implement the most effective method. This underlines the critical role of precooling in maintaining the quality, shelf life, and marketability of harvested produce.
Precooling fruits and vegetables is a vital post-harvest procedure aimed at rapidly reducing the produce’s temperature to slow down metabolic processes and prolong freshness. The ideal precooling temperature varies based on the type and maturity of the produce but is typically lower than the surrounding temperature. Various methods such as hydro-cooling, vacuum cooling, and forced-air cooling can be used for precooling. Properly understanding and applying these techniques is key to preserving the quality and freshness of fruits and vegetables from the farm to the consumer.

Cold storage is a widely used method for handling perishable goods in bulk between production and marketing stages. It is essential for preserving the freshness and quality of perishable commodities by controlling temperature and humidity within the storage environment. Ensuring the temperature remains sufficiently low is crucial, as failing to do so can lead to chilling damage to the produce. Additionally, maintaining a relative humidity of 85-90 percent in the storage area is vital for most perishables, as lower humidity can negatively affect their quality.
Fruits and vegetables, if stored at ambient harvest temperatures, have a very short shelf life. Post-harvest cooling helps to quickly remove field heat, thus extending the storage duration. Proper cooling after harvest can:
• Reduce respiration and enzymatic degradation;
• Minimize water loss and prevent wilting;
• Slow or stop the growth of microorganisms that cause decay;
• Lower the production of ethylene, the natural ripening agent.

Environmental factors play a crucial role in determining the quality and shelf-life of fruit during storage. Storage facilities are designed to hold fruit after harvest and before it reaches retail locations, while ripening rooms, often part of these facilities, focus on ripening unripe fruit. Although their processes differ, both storage and ripening facilities aim to control environmental conditions that influence fruit ripening and longevity.
Key factors affecting fruit ripening include temperature, relative humidity, ethylene (C2H4), carbon dioxide (CO2), and oxygen (O2). These levels vary based on the type of fruit and whether the goal is to store or ripen it. Fruit continues to respire and transpire after being harvested, altering its environment through its physiological changes.
The three primary ways fruit affects its surroundings are:
• Respiration: Fruit consumes oxygen to break down sugars and produce heat, water, and carbon dioxide. Lowering the temperature during storage reduces respiration, ripening, and aging. CO2 and O2 levels also impact the rate of respiration.
• Transpiration: When there is a difference in water vapor pressure between the fruit and the surrounding air, the fruit loses water. This can lead to shriveling, spoilage of quality and flavor, and weight loss. Keeping relative humidity high during storage helps retain moisture and maintain fruit weight, which is important for maintaining its market value.