India’s food waste – from dumpyards to bio-economic asset

In a nation that prides itself on feeding 1.4 billion people, India throws away nearly 74 million tons of food every year, worth ₹1.5 trillion or Rs 1.52 lakh crore, according to UNEP (UN Environment Programme) data. A new report, however, says this mountain of waste could soon become a goldmine.

Titled ‘Transforming Waste into Value: Unlocking the Potential of Food Waste Valorisation in India,’ the report—released by the Food Future Foundation—offers a roadmap to turn India’s food loss and waste into energy, nutrition, and opportunity.

Developed by Thinking Forks in collaboration with Coalition for Food-Systems Transforma(c)tion in India, GIZ India, WASSANIndia, Food Future Foundation, and Welthungerhilfe (WHH) and co-led by Food Future Foundation founder & director Rinka Banerjee, the report, seen by IndiFoodBev, terms the waste as a ‘bio-economic’ asset waiting to be tapped.

Pawan Agarwal, CEO of the Foundation, calls for a bold shift in mindset. “By treating it not as a burden but as a resource, India can turn a pressing challenge into an engine for resilience, sustainability, and inclusive growth,” Agarwal writes in the foreword.

The report calls for the need for a national strategy on food loss and waste, with clearer targets, data and coordination between ministries.

Crisis of plenty

The report opens with a startling reality: nearly 40% of the country’s food production never reaches consumers. Poor infrastructure, weak cold chains, and inefficient logistics are major culprits in rural areas. In cities, overbuying, buffet leftovers, and household waste compound the problem. According to UNEP, Indian households alone discard 78 million tons of food each year—enough to feed millions who go hungry.

Food waste to wealth

Amid this crisis, the idea of food waste valorisation is emerging as a game-changer. The process converts inedible or unavoidable waste into products like biogas, fertilisers, biofuels, animal feed, bioplastics, and nutraceuticals—turning what was once discarded into something of value.

Across India, innovation is bubbling up. In Kerala, a patented process turns chicken slaughter waste into biodiesel and protein powder. In Goa, anaerobic digestion plants are powering local communities with energy derived from kitchen waste. Startups like Saving Grains, which transforms brewery leftovers into high-protein flour, and The Misfits, which makes spreads from “imperfect” produce, are redefining what waste can mean for business and the planet.

Meanwhile, Delhi-based Wastelink is converting surplus bakery goods into livestock feed, and Dharaksha Ecosolutions is crafting biodegradable packaging from crop residue that degrades within 60 days. Together, these ventures illustrate a shift from a linear “produce–consume–discard” model to a circular economy where every byproduct has a purpose.

Hidden economic engine

According to the report’s techno-economic assessment, recovering nutrients from India’s wasted food could generate up to ₹2.5 lakh crore (US$ 291 billion) annually. “Every ton lost is also an opportunity,” Agarwal notes. “With the right technology, policy, and investment, food waste can become a foundation for India’s sustainable growth.”

The report mentioned initiatives such as PM Kisan Sampada Yojana, GOBARdhan, and RUCO (repurposed used cooking oil), which support cold-chain infrastructure and biofuel production. Yet it warns that India still lacks a unified national food waste policy. A cohesive framework, it argues, could integrate waste prevention, recovery, and valorisation across sectors—linking agriculture, energy, and environment.

International models show what’s possible. South Korea recycles 95% of its food waste through mandatory segregation and a “pay-as-you-throw” system. Germany’s Tafel network rescues millions of tonnes of edible surplus each year, while the UK’s Bio-bean turns coffee waste into biofuel. Global fruit major Dole Sunshine Company set up a separate B2B business unit in 2021 called Dole Specialty Ingredients (DSI). At their factory in the Philippines, DSI transforms plant/fruit side streams into high-value specialty ingredients to divert feedstock left behind in the fruit industry and utilize them in making value-added ingredients such as enzymes, extracts, oils, fibers and others.

Road ahead

The report’s recommendations are clear – Strengthen cold-chain and logistics infrastructure; Foster public-private partnerships for scalable solutions; Fund R&D and innovation in waste valorisation; Launch nationwide consumer awareness campaigns on responsible consumption; and Certify and promote upcycled products to drive market adoption.

The challenge, the report says, could evolve into its next great sustainability story—fueling jobs, innovation, and climate action. As the report concludes, “The time has come to view food waste not as a burden, but as a valuable resource waiting to be unlocked.”