World Food Summit,2017-Can India become a Food Processing Hub?

World Food Summit,2017

About World Food India

A global event to facilitate partnerships between Indian and international businesses and investors, World Food India (WFI) is a gateway to the Indian food economy and an opportunity to showcase, connect, and collaborate.

Organized by the Ministry of Food Processing Industries, Government of India, WFI will be the largest gathering of investors, manufacturers, producers, food processors, policy makers, and organizations from the global food ecosystem.

It aims to provides opportunities for both investment and trade in the food processing sector for leading Indian and international companies. Encompassing the entire food spectrum from production to consumption, WFI is looking at creating a better sourcing environment, thereby enabling higher returns for farmers, creating employment, and fostering entrepreneurship.

WFI is being held in partnership with Confederation of Indian Industry (CII), at New Delhi, India from 3-5 November, 2017.

Proposed Opportunities

  • Understand the policy environment around food processing sector.
  • Identify Specific opportunities during the B2G & G2G meetings.
  • Exposure to a shelf of specific projects for investment in processing and retails.
  • Exposure to strengths of India in pre-identified food processing sub-sectors.
  • Exposure to FPOs’ / Progressive Farmers – potential suppliers.
  • Exposure to opportunities in food retails in India.
  • Exhibit in the country pavilion .

Why it is  important to develope the food processing sector?

  • Creates jobs
  • Increases farmer’s Income
  • Helps avoid foo wastage
  • India needs to fit INTO THE Global Supply Chain of FOOd network
  • Food processing is one of the major component of our manufacturing sector and a significant part of the make in India Program.

 Problems:

International problems

  • We are only 2.2% of the food processing exports in the Global arena majorly due to the hindrances by the advanced economies such as the EU and the USA.
  • Poor FDI inflows into the sector

Domestic Problems:

  • Poor warehousing and storage capacity.We need to upgrade Agri-infrastructure
  • Lesser facilitation of a dedicated agency to farmers even though FSSAI is present, it is mainly for post production management. What is required is the guidance and protection of farmers at the pre harvest level.
  • Use of a lot of inorganic chemicals in our agricultural production. A shift toward the organic chemicals is required. Almost 67 inorganic pesticides have been identified in our food items.
  • Canned meat is one of the major entity in food processing export sector in India but due to the remarks by some public entities against the slaughtering of cattle, the sentiment gets affected as does the sail of cattle in the cattle mandis resulting in desertation of north indian cattle mandis.

Solutions:

  • Development of agri-infrastructure-by increased public investment into the sector
  • Connect farms with the mandis, link them to good warehouses, increase the storage capacity, increase the productivity of our farm sector
  • A broad policy framework for the sector.
  • Alligning Indian food safety guidelines with that of the global standards
  • Research and development to help improvement of technology
  • Regulation of unorganised sector with strict enforcement of rules where the recent FSSAI standardisation rules would help.
  • Diversification of crop pattern.
  • Decreasing imports by improving crop diversification pattern in India itself.
  • Focus on Second Green Revolution in India.
  • STEP UP Forein investment to companies such as nestle and unilever

Can India become a global food processing hub?

  • -India is the leading producer or the second largest producer in many agricultural commodities whether it is milk,bananas,whet,rice,etc
  • -The whole international community looks at the progress of Indian monsoon as India is very important in all the agricultural commodities.
  • -India has a good domestic market as foreign companies do not come to invest just to focus on exports.
  • -India dishes are relished abroad-combination of Indian skills with international technology is required
  • -Improvement in India’s Ease of Doing business Rankings will help some of the Food giants to enter the Indian Market.

 

Pradhan mantra kisan sampada yojna to create world class food processing infrastructure

The Central Sector Scheme – SAMPADA (Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters) was approved by the cabinet in May 2017 for the period of 2016-20 coterminous with the 14th Finance Commission cycle. The scheme has now been renamed as the “Pradhan Mantri Kisan Sampada Yojana (PMKSY)”.

It is an umbrella scheme incorporating ongoing schemes of the Ministry like Mega Food Parks, Integrated Cold Chain and Value Addition Infrastructure, Food Safety and Quality Assurance Infrastructure, etc. and also new schemes like Infrastructure for Agro-processing Clusters, Creation of Backward and Forward Linkages, Creation / Expansion of Food Processing & Preservation Capacities.

Objective

The objective of PMKSY is to supplement agriculture, modernize processing and decrease Agri-Waste.

Schemes to be implemented

Under PMKSY the following schemes are to be implemented.

  • Mega Food Parks
  • Integrated Cold Chain, Value Addition and Preservation Infrastructure
  • Creation/Expansion of Food Processing/Preservation Capacities
  • Infrastructure for Agro Processing Clusters
  • Scheme for Creation of Backward and Forward Linkages
  • Food Safety & Quality Assurance Infrastructure
  • Human Resources and Institutions

Financial Allocation

PMKSY with an allocation of Rs. 6,000 crore is expected to leverage investment of Rs. 31,400 crore, handling of 334 lakh MT agro-produce valuing Rs. 1,04,125 crore, benefit 20 lakh farmers and generate 5,30,500 direct/ indirect employment in the country by the year 2019-20.

Impact

  • The implementation of PMKSY will result in creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet.
  • It will provide a big boost to the growth of food processing sector in the country.
  • It will help in providing better prices to farmers and is a big step towards doubling of farmers’ income.
  • It will create huge employment opportunities especially in the rural areas.
  • It will also help in reducing wastage of agricultural produce, increasing the processing level, availability of safe and convenient processed foods at affordable price to consumers and enhancing the export of the processed foods.