Aragalur

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Source: http://pib.nic.in/feature/feyr2002/fmar2002/f130320021.html

FOOD PROCESSING

TIME RIPE FOR FOOD PROCESSING REVOLUTION

M.Jaya Singh*

India ranks first in milk production in the world. It also has the distinction of being the second largest producer of fruits and vegetables, besides having the largest livestock wealth. A country that once imported food articles now produces them in surplus, with the potential to serve as a granary to the world. Wheat and rice stocks have become a problem of plenty with farmers producing record harvests and godowns bargaining for a breathing space. In marine landings, India’s position is eighth in the world, though fishing is mostly being undertaken in the small scale and cottage sectors.

Paradoxically, there are many who cannot afford to taste an orange a month or an apple a quarter. Exorbitant prices at times hinder access to such valuable food items, but it is argued that it is not the major factor that comes in the way of such essential products. In fact, poverty ratio has come down to 26 per cent in 1999-2000, as revealed by the Economic Survey 2001-02. Leave alone poverty, availability is another interesting issue. Seasonal horticultural products like mangoes used to be aplenty during harvest period and therefore were sold at throw-away prices. As a result, farmers were poorly compensated. During off-season, mangoes are either not available or are heavily priced, thereby affecting the consumers. Even other agro products like onions face price fluctuation- oscillating from lower end to an inaccessible peak price.

This is a perplexing situation, and the remedy is possible only through processing of food using traditional methods such as dehydration and cold chain and other proven chemical and irradiation processes. This will help preserve food articles when their availability surpasses the immediate need, so that they can be released for consumption when the season subsides. Since processing preserves food articles from perishing, prices can also be controlled. This will enable even the poor to have access to them. It will be a win-win situation for both the farmers as well as the consumers.

Consumer preferences in the vast Indian market, that is charged with a massive battery of 250 million-strong middle class segment, is also perceived to be going through a sea change in favour of packaged food articles, a trend that is conducive for the growth of food processing industry. The urbanization process that occurs at an unprecedented pace is also set to help this industry. The sunrise sector of food processing is emerging as one of the promising industries with the potential of creating direct employment for millions of youth and give a further fillip to the national economy.

The size of the global processed food market as of now is estimated to be an astounding $69.4 billion, of which value-added food products garner the share of $22.2 billion. In view of the tremendous potential of Indian food processing industry, the Union Government has increased its allocation to the Ministry of Food Processing by 33.53 per cent to Rs 81.01 crore in the current budget.

Time is therefore now ripe enough for a Food Processing Revolution, after the Green Revolution achieved way back in the 1960s. Supply of raw material obviously would not be an impediment with such a big magnitude of agro-base.

Yet in a striking contrast to such nutrient features, food processing is yet to pick up from its dismal level of 2 per cent in the country. In fact, the magnitude of wastage of fruits and vegetables in India exceeds the total individual production of many of the advanced countries. Value addition does not give a good picture either. Only 7 per cent of the food items go through value addition processes, as compared to the level of 188 per cent in the UK. All these only underline the fact that the foodprocessing field is fertile enough for the entrepreneurs to cash in more.

For the processing level to grow to 10 per cent over a period of ten years, an estimated Rs 1,40,000 crore has to flow into the sector, which can be possible only with the help of the private industry’s active involvement coupled with foreign direct investment. In the Tenth Five Year Plan the industry is expected to grow by 7.3 per cent with the likely investment of Rs 63,000 crore. Investment since economic liberalisation in this sector is worked out to be Rs 53,868 crore. And it is growing ever since.

The Union Government has declared the food processing industry as a priority area. Barring very few exceptions, the whole sector is delicensed and is open for an automatic approval of hundred percent FDI. Above all, the Central Government has come out with a scheme called Food Park, where integrated facilities are available for the food industry. Permission for twenty different food parks in different parts of the country has already been issued.Export is one of the key areas identified for the rapid growth of the industry.

Tamil Nadu has acquired the distinction of implementing the first Food Park in the private sector at Virudhunagar near Madurai with a financial outlay of nearly Rs 12 crore with the Centre’s financial incentives. The State machinery is contemplating on establishing one more Food Park with an estimated project cost of Rs 20 crore either in Trichy or Kanchipuram. Moreover, agri-export zones have been planned for export of grapes in Theni, cashews in Tanjavur, Pudukkottai, Sivaganga and Cuddalore districts, onions in Coimbatore and Dindigul districts, bananas in Trichy and Tirunelveli districts, mangoes in Dharmapuri, Theni, Dindigul and Tirunelveli districts, cut flowers in Dharmapuri, medicinal plants in Thuthukudi and Tirunelveli and turmeric in Erode district. Cold storage facilities in Trichy, Dindigul, Udumalpet in Coimbatore, Virudhunagar, Vellore, Theni Chinnamanur, Thalaivasal in Salem and Tuticorin with the storage capacity of around 14000 metric tonnes have also been proposed. The agri export zones would comprise such facilities as information centres, common processing units, cold storage, common packaging units, quality control labs, clearing and forwarding agencies, refrigerated trucks, and liaison offices.

Tamil Nadu is endowed with diverse agro-climatic conditions varying from the latitude of 2 metres to 2249 metres above sea level. The rainfall over the State ranges from as low as 19 mm to 1897 mm, with temperature dilly-dallying from 8 degree to 40 degree celsius, providing conducive agro-climatic zones for producing a wide spectrum of horticultural crops suited for processing. Kanyakumari and Theni districts provide ground for off-season harvesting of mango and grapes. The varietal wealth of banana is very rich in the state.

India is witnessing the paradoxical problem of plenty of food articles now. It is emerging as a global food factory. In bridging the farm gate to the dinner plate, therefore, a more promising atmosphere for the processing industry has arisen now than ever before with a great potential for growth.

*Assistant Information Officer, PIB, Chennai