A good time to try out an agro-processing unit?
A good time to try out an agro-processing unit?
Posted by: Vimarsh Bajpai in Ideas on Feb 11, 2010
Rs 30,000 crore is an alarming figure. And this is not the size of a scam or the allocation the government is making to any of its social sector schemes. If industry chamber FICCI is to be believed, Rs 30,000 crore worth of fruits and vegetables are wasted annually due to glaring holes in the supply chain and storage facilities. Only around 2% of fruits and vegetables are processed, and the figure stands at 26% for marine, 6% for poultry and 20% for buffalo meat, as against 60-70% of the overall food production in developed countries.
While jam and sauce have been on the dining table of millions of Indian families for a long time, there are many other processed foods that are also making way to Indian households. Food habits are changing as a result of lifestyle changes and this is leading to increasing demand for processed foods. According to an update by IBEF, the Indian packaged processed foods industry is estimated at US$ 10.87 billion – US$ 13.05 billion, including biscuits, chocolates, ice-cream, confectionery, snacks, cheese and butter. It adds that growing at a healthy 14-15 per cent over the past two-three years, major players in the sector include Britannia, Nestle, Amul, ITC Foods, Parle, Kellogg’s, GlaxoSmithKline, Wrigley and Frito-Lay, among others.
So not a bad time to look at the opportunity in the agro-processing sector. If so much of raw material -- fruits and vegetables -- are going waste, it only makes sense to put them to better use while availing the benefits of cheap labor, some good incentives from banks and make an entry into this sector. The growth of business depends a lot on the nature of the produce and processing methods. The food quality should be top-class, and therefore, procurement of superior quality of raw materials becomes imperative. This industry is labor intensive, providing employment at each step—production of raw materials, processing at various units in organized and unorganized sectors, packaging of end product, transport and selling at retail stores.
Subscribe to this comment's feed
written by Manohar Rao, August 26, 2010
written by Mukesh Kamboj, May 16, 2010
In most of the big cities, lifestyles are changing very rapidly. With husband & wife preferring
to work, life has become very fast and preparedness to spend has also gone up. This has
resulted in many ready-to-eat items becoming popular during last few years. Canned ready to-
eat vegetables is one such item which is gaining popularity in urban areas. With many
Indians settling abroad, students going out for further studies and foreigners developing a
liking for the Indian curried vegetables and other food items, there are fairly good chances of
exports as well. The promoters must observe strict hygienic norms irrespective of the targeted
market.
Demand and Supply
Lifestyles of Indian families are changing rapidly. Urban families have witnessed tremendous
pressure on time and this has resulted in visible change in their eating habits as well. After
the popularity of ready-to-eat snacks, it is now turn of the food items consumed during meals.
Many working couples and their family members have started switching over to convenience
food and canned curried vegetables is one such item.
Exports opportunities -
Ideal unit should develop 50% exports business for better profitability and business growth. Countries where export market has huge potential are Dubai, Australia, UK, Canada and USA emerging new market for canned ready to eat food.
PRODUCTs
There is a possibility of introducing many curried food items like Chhole, Rajmah, Mutter
Paneer, Palak Paneer, Dum Allo, Malai Kofta and so on and there could be some new
varieties as well.
But leafy vegetables like Sarson Ka Saag (Spinach and Mustered leaves), Palak Puri, Methi Puri and leaves, other seasonal leafy vegetables and green vegetables offer bigger opportunities. Because its difficult and tedious to buy, wash and cook leafy vegetables. Where as leafy vegetables offer high nutritional value and are necessary to include in the daily food for getting adequate fibrous food in the human diet. These vegetables are eaten along with rice or chapati.
This project can be set up in industrially developed states like Maharashtra, Gujarat, MP, TN, Karnataka and so
on but most suitable area for raw materials of leafy vegetables and conducive for this industry are Utranchal / Himachal & Haryana also.
written by ugg boots, May 15, 2010
written by K B Singh, April 28, 2010
written by G K Poonjatt, March 19, 2010
written by Yogesh Kathrecha, March 07, 2010
But the value of loss is not decresing even after ten years of the attempt to solve the problem. So clearly there is some mistake either in the data or in the methodology of attempt to address the problem.
There are many institutes which offer Food Processing Technology Knowledge. But yet we find no commercial success of all these efforts.
The biggest drawback I have observed in our effort is the review of the efforts made and the subsequest corrective action to be initiated.
Fundamentally, the cost of the processed food available in our country is significantly high for any household to use it regularly in its current income level. The fraction of the society which uses the processed food is low in our coutry. The reason I have undrstand is for most of the items in market it is low quality at high price. This has to be looked into and changed to better quality with optimum price.
The scale of operation of our plants are also low for the want of material and the lack of the established market. The material is not of prime quality thus the popular notion which goes out is the the low quality material is only used for the processing. To illustrate I will suggest the case of the dehydrated peas avialble in our country of local make and the one imported from New Zealand. The imported product is mucj better and available at the affordable prices in India. This really asks for the points to ponder. The supply chain of the imported material will be having at least three member and yet it is offering an affordable price vis-a-vis our product.
To develop the food processing industry it very imperative that the norm for the quality and the post harvest techology has to be developed and the farmers are urged to accept and adopt it. For the same the farmers co-operation and education is required.
As far as our farmers are not well off to take care of their daily needs they are not going to invest in knowledge and upgrading their operational set ups.
Hence the farmers co-operatives should be developed to induce them to be the direct processors of their produce.
Thanks.
