Agribusiness

Food Processing India – News Digest – 26/09/2009

Indian Govt eyes 150% growth in processed food exports in five yrs

The ministry of food processing has set a target of 150 per cent growth in processed food exports in the next five years on rising global demand of Indian food. This will be 5 per cent of the total share in global processed food market.

Agriculture & Processed Food Products Export Development Authority (Apeda) monitored processed food products including fresh and processed fruits and vegetables, livestock products, cereals etc. have grown exponentially by 24 per cent in rupees term (Rs 39,461 crore) and 10 per cent in dollar term ($8.67 billion) in 2008-09.

The way value addition and food processing is picking up, India’s exports would increase by atleast another Rs 60,000 crore by 2014-2015.Rest of the article

food-processing

Bihar Government offers heavy subsidies to Food Processing Industry

Bihar Government has formulated a liberal industrial policy. For the potential investors in the food processing industry, the policy kitty has been made further more attractive taking the state forward in the league compared to other regions. 

Under this liberal industrial policy of Bihar, any potential investor in the food processing industry can avail the facilities already in place under the Bihar Industrial Policy, 2006, like 80 % VAT reimbursement, 50% capital subsidy in the sphere of captive power generation, etc, coupled with added advantages like 40% capital subsidy and an absolute no bar or objection on behalf of the state government on any subsidy or facility what the investor wants to avail from the central government. 

India is one of the largest producers of vegetables and fruits in the world with an annual production more than 80 million tonnes, only next to China. However, though India’s GDP has recently crossed the trillion dollar mark taking it up to the elite club of 12 top economies, agriculture still comprises a mere 20% of the country’s GDP despite the fact that it is the source and means of livelihood for almost 2/3rd of the country’s workforce. Rest of the Article

Cold chains are hot

A decade ago, Bangalore-based first generation entrepreneur Chaitanya Srinivasan decided to get into the cold chain business. He did all the right things—he had anticipated the retail boom; he spent a year in the US understanding the technology; he even found a joint venture partner, the Holland-based Frigolanda.

All that ground work was completed in 1999. The joint venture, however, failed. “We could not pursue the JV beyond 2002 owing to cultural differences and Holland’s set of expectations from India,” says Srinivasan, Managing Director of Chaitanya Cold Storage. In 2005, he found that a part of his business—a fleet of 18 refrigerated reefer trucks—was unviable. So, he sold them off.

“We realised that trucking is a highly challenging business to do in India and hence decided to focus only on cold storage,” he recalls. Srinivasan was an entrepreneur who had caught an idea ahead of time. He has increased his cold storage capacity from 40,000 cubic feet in 2002 to 1,10,000 cubic feet now. About 40% of this has been taken up by Reliance Retail in Bangalore. Now there is a flurry of activity in this business. Rest of the Article

Food retail in India: An overview

The size of the Indian urban food market is estimated at INR 350,000 crore (U$ 70 billion) . The domestic market for processed food is huge and fast growing.

The private sector is yet to realize its full potential in the food-retailing sector, as the market is still to explore. Though, it has now started discovering the money there is to be made in the urban food retailing market.

According to Ministry of Food Processing Industries, Government of India, urban centers have the potential of development process. But they do not produce food as they lack agricultural land; on contrary the rural areas do. In that sense, the urban areas provide an assured market for the food produced by farmers. The urban food marketing system thus assumes considerable importance for both feeding the urban population and helping farmers.

There are certain distinct characteristics of urban food demand. The urban population generally has a higher purchasing power. The rising average income is leading to greater demand for high-value processed food. A considerable number of urban women work, creating a demand for heat-and-serve foods. Rest of the article

Largest Sea food processing plant in eastern Indian inaugurated

BHUBNESWAR: The eastern Indian’s larges sea food processing plant with a capacity of 40 ton per day has come up at Jankia, 50 kilometer from here. Indian Overseas Bank chairman and managing director, S A Bhat on Sunday inaugurated the plant set up theMagnum Sea Foods Ltd at a cost of Rs 20 crore.Rest of the Article

Changing face of the Indian food processing industry

The past decade has witnessed a radical development in India’s food processing sector. The growth of this industry is expected to change the way people perceive food and their eating habits. Yashodhan Jadhav maps the evolution of the processed food sector, proposed development plans and upcoming trends in India. 

The food processing sector in India is poised to be one of the largest in terms of production, consumption, export and growth prospects. The government too has prioritised its focus on this sector and bestowed it with a number of fiscal reliefs and incentives to commercialise and add value to the agricultural produce. The focus is also directed towards minimising pre and post harvest wastage, employment generation and export growth. While India’s food processing industry features an array of products like fruit and vegetables, meat and poultry, milk and milk products; other consumer product groups like confectionary, chocolates and cocoa products, soya-based products, mineral water and high protein food also falls under its purview.

As per the figures given by the National Committee on Food Processing & Regulatory Affairs, the food processing sector received investments worth USD 144 million between 2007 and 2008, as against USD 5.7 million in the previous year. During April 2008 – January 2009, the sector received USD 760 million worth of investments.Rest of the article

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