Bakery industry in India is the largest among the processed food industries, production of which has been increasing steadily in the country. The two major bakery industries, viz. Bread and biscuit account for about 82 per cent of the total bakery products. The annual production of bakery products which includes bread, biscuits, pasteries, cakes, buns, rusk, etc., most of which are in the unorganized sector, is estimated to be in excess of 30 lakh tonnes. The production of bread and biscuits in the country, both in the organised and unorganized sectors, is estimated to be around 15 lakh tonnes and 11 lakh tonnes respectively. Of the total production of bread and biscuits, about 35 per cent is produced in the organised sector and the remaining is manufactures in the unorganized sector. Another wheat based product known by its generic name, pasta products, comprising of noodles, vermicelli, macaroni and spaghetti is gaining popularity.
Economical factors affecting bakery:
The present day consumer looks for new bakery products, better appeal, taste and convenience from bakery foods. With a population of 1 billion plus, India has the largest middle-income consumers, who demand varieties in food, clothing, transport and improved living standards, also wish to eat out. Opportunities, in abundance, exist in Bakery Cafes and Restaurants, those who cater fast foods, are another fastest growing sector in India.
In India bakery industry is booming next to information technology, and other services. Presently all the IT offices such as BPO, call centers, data entry centers has started supplying food in the work spot as it has become a necessity since their work timings and schedule varies according to the project undertaken. Rising disposable income have increased young generation’s pocket money. Middle class children can easily spend 20 Rs per day on product like pastries, tea, cold drinks etc.
Excise duty is the problem that is really affecting bakery. Products have a short shelf life and imposing excise is very unfair. Lately, the rate has been raised to 16 per cent from 8 per cent. Bakery industry is not able to compete with market forces and most of companies are downsizing. Many of bakery products are disappearing and manufacturers are reducing the number of employees. They are economizing; excise is a prior charge on their profitability. The excise rules and regulations are very difficult to follow. They are not at all appropriate for retail manufacturing concerns.
Economical factors affecting bakery:
The present day consumer looks for new bakery products, better appeal, taste and convenience from bakery foods. With a population of 1 billion plus, India has the largest middle-income consumers, who demand varieties in food, clothing, transport and improved living standards, also wish to eat out. Opportunities, in abundance, exist in Bakery Cafes and Restaurants, those who cater fast foods, are another fastest growing sector in India.
In India bakery industry is booming next to information technology, and other services. Presently all the IT offices such as BPO, call centers, data entry centers has started supplying food in the work spot as it has become a necessity since their work timings and schedule varies according to the project undertaken. Rising disposable income have increased young generation’s pocket money. Middle class children can easily spend 20 Rs per day on product like pastries, tea, cold drinks etc.
Excise duty is the problem that is really affecting bakery. Products have a short shelf life and imposing excise is very unfair. Lately, the rate has been raised to 16 per cent from 8 per cent. Bakery industry is not able to compete with market forces and most of companies are downsizing. Many of bakery products are disappearing and manufacturers are reducing the number of employees. They are economizing; excise is a prior charge on their profitability. The excise rules and regulations are very difficult to follow. They are not at all appropriate for retail manufacturing concerns.
Societal pattern and bakery:
Nowadays, in metropolitan cities Ahmedabad, life style has become a mechanical and people prefer food readily available for consumption without much time for preparation. Bakery products are very popular in school and college premises, students treat their friends with these affordable items to celebrate their happy moments. In double income family mothers don’t get much time to prepare Tiffin for their children, bakery products are now part of school going children’s lunch box also. Bakery products which use maida as a major raw material for most of its varieties is highly preferable as they are highly nutritive, easily digestible and readily available in wide choice preferred by many.
Bakery technology:
Compared with restaurant, machinery investment is more for baker and it requires qualified personnel both in the production as well as in administration. Technology and interest brought in innovations in the production of new bakery products and new technocrats evolved in the industry. In 1990 a rapid growth of catering institutes all over the country helped the bakery sector to equip the industry with qualified workers and qualified entrepreneurs.
Government role in bakery:
To help the growth of bakery industry the government can help the bakers to receive the raw material maida in a nominal price. Wheat price is being hiked very frequently which must be controlled to avoid difficulties in producing the bakery products at nominal rates without much fluctuation in the sale price. The government should reduce the import duties for bakery machineries, its preservatives and for raw materials. It will be very helpful if tax is abolished for bread in all states. If bread is included in the Noon Meal Scheme for children it will be very beneficial for the children and also to the industry.
Indian bakery faces challenge to update their information, technology, products and services to meet the changing needs of the Indian consumer. To meet the new challenges, the Govt. of India encourages the Small and Medium Enterprises (SME) with very attractive financing schemes, to modernize and up-grade their units. This has opened up opportunities not only to SMEs but also to those in the bakery trade to supply the new technologies.
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