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Biscuit industry in India in the organized sector produces around 60% of the total production,
the balance 40% being contributed by the unorganized bakeries. The industry consists of two
large scale manufacturers, around 50 medium scale brands and small scale units ranging up to
2500 units in the country. The unorganized sector is estimated to have approximately 30,000
small & tiny bakeries across the country.
The annual turnover of the organized sector of the biscuit manufacturers is Rs. 4,350 crores.
In terms of volume biscuit production by the organized segment in 2001-02 is estimated at
1.30 million tonnes and in 2012-13 it is 1.714 million tonnes. The major Brands of biscuits
are - Britannia, Parle Bakeman, Priya Gold, Elite, Cremica, Dukes, Anupam, Horlicks, Craze,
Nezone, besides various regional/State brands. Biscuit industry which was till then reserved
in the SSI Sector, was unreserved in 1997-98, in accordance with the Govt. Policy, based on
the recommendations of the Abid Hussain Committee.
The annual production of biscuit in the organized sector continues to be predominantly in the
small and medium sale sector before and after de-reservation. The annual production was
around 7.4 Lac tonnes in 1997-98 in the next five years, biscuit production witnessed an
annual growth of 10% to 12%, up to 2004-05 and in the year 2012 -13 it is 6.25% at 17.14
lack tonnes.
The Union Budget for 2012-13 granted 50% reduction in the rate of Excise Duty on Biscuit
i.e. from 16% to 8%. The Federation's estimate for the current year indicates a growth of
approximately 8% to 9%.
Though dereservation resulted in a few MNCs, i.e. Sara Lee, Kelloggs SmithKline Beecham,
Heinz etc entering the biscuit industry in India, most of them, with the exception of
SmithKline Beecham, have ceased production in the country.

Glucose 44%
Marie13%
Cream10%
Crackers13%
Milk12%
Others8%

Annual Production in Percentage


However, recent imports from china industries cheaper verities of biscuit, needs to be
examined with cautions, especially in the context of the price as the low margin based
domestic industry, which is operating at 60 % of the total installed capital. Exports of biscuits
from India have been to the extent of 5.5% of the total production. Exports are expected to
grow only in the year 2003-04 and beyond.
Biscuit is a hygienically packaged nutritious snack food available at very competitive prices,
volumes and different tastes. According to the NCAER Study, biscuit is predominantly
consumed by people from the lower strata of society, particularly children in both rural and
urban areas with an average monthly income of Rs. 750.00.
Biscuit can he broadly categorized into the following segments: (Based on productions of
2012-13) Glucose 44% Marie 13% Cream 10% Crackers 13% Milk 12% others 8%.
FBMI (Federation of Biscuit Manufacturers of India) is an association of all the biscuit
manufacturers of India. Major players include Britannia, Parle, ITC, Priyagold, Windsor etc.
Consumption of Biscuits28%24%25%23%1234

In recognition of industry's obligations towards the community, being a part of it, biscuit
manufacturers supply biscuits to the social welfare agencies in all States for the benefit of
school children, senior citizens and other needy sections of the society. FBMI (Federation of
Biscuit Manufacturers of India) Members have always responded positively to our appeal as
also by the Government, to rush truck loads of biscuits to the people affected by earthquakes,
floods, famine etc. These members have also participated in supplying biscuits to the people
of war ravaged Afghanistan and presently to the Iraqi people, under the aegis of the UN.
As regards the consumption pattern is concerned. surveys and estimates by industry from time
to time indicate the average consumption scenario in the four Zones have been more or less
close to each other, as below: 1. Northern States: 28% 2. Southern States: 24% 3. Western
States: 25% 4. Eastern States: 23%
Though India is considered as the third largest producer of Biscuits after USA and China, the
per capita consumption of biscuits in our country is only 2.1 Kg., compared to more than 10
kg in the USA, UK and West European countries and above 4.25 kg in south east Asian
countries, Le. Singapore, Hong Kong, Thailand, Indonesia etc. China has a per capita
consumption of 1.90 kg, while in the case of Japan it is estimated at 7.5 kg.
In view of the meagre per capita consumption even as penetration of biscuits manufactured by
the organised sector, into rural areas in India, has been very good during the last 10 years, as
also in the metro and other cities, small towns etc. However, in spite of this, the industry has
not been able to utilize about half of their installed capacities.

Biscuit is a comparatively low margin food product in the PMCG (Packaged Mass
Consumption Goods) sector. The commodity is also price sensitive, as a consequence of
which, even when the Excise Duty was doubled on biscuits in 2000-01 biscuit manufacturers,
including the major brands, were not able hike MRPs to the extent of the steep increase in the
Duty. Taxation, both Central Excise Duty as also State Sales Tax, other miscellaneous levies
i.e. turnover tax, local area tax, mandi taxes, purchase tax, Octroi etc., has been a major
deterrent in the growth of the biscuit industry. The CII Study Report has identified Biscuit as
one of the products that should treated as "Merit Good for the purpose of liberal tax policy
both by the Centre and States.
Besides lack of technology up gradation in manufacturing, packaging etc has also been a
factor affecting our industry, along with inadequate financial credit and support particularly
for the medium and small scale biscuit units.
On the other hand, the Government of India has identified food processing industries as a
priority area to be encouraged for growth and development and created the Ministry of Food
Processing Industries (which was till then a Dept in the Ministry of Agriculture), headed by
an Ministry of State with Independent charge.
Biscuit manufacturing as well as other bakery products like Bread etc are agro based
industries, with the major inputs - wheat flour/atta sugar, milk vanaspati/vegetable oil etc all
being agriculture produces.
Industries such as Biscuit are also languishing as they are not able to achieve their potentials
for higher production, in the absence of the concrete food Processing Industry Policy. FBMI
in close coordination with other organizations and apex Chambers, initiated to urge the Govt
of India to formulate a comprehensive Policy Document, for smooth growth and harmonious
development of the industry. The Food Processing Industry Policy, which has been evolved as
a result of various workshops, deliberations and representations by a large cross section of
food processing industries, is yet to be finalized. It is hoped that the Ministry of Food
Processing Industries, GOI would initiate action for implementation of the Policy
expeditiously.

According to the production figures of members available up to the calendar year 2013, the
total production was 1614000 tonnes as against 1714000
Tonnes in the previous year. The production of biscuit for the last 5 years is as under:
2011 - 1100000
2012 1254000
2013 1429000
2014 1614000
2015 1714000