Though India is the second largest producer of fruits and vegetables in the world, commercial processing of these commodities is less than 2 per cent of production. In spite of growth in the post-reform period, capacity utilisation of the food processing industry remains below 50 per cent. The industry already faces the problem of meagre demand due to economic reasons and existing food habits. Increasing value addition activities and processing, as recommended by an expert committee, will require huge investments. However, as long as there is endemic poverty and low purchasing power, it is unlikely that the country can build a heavyweight fruit and vegetable processing industry.
