Adding value to food

A study has put at Rs 45,000 crore the annual loss countrywide because of 6-18 per cent wastage of cereals and perishables like fruits and vegetables. The food processing ministry is investing in mega food parks to bring the figure down and add value to farming away from wheat and rice. It has allocated 17 more food parks to state governments and private players, covering 22 states now. Launched in 2008, the scheme's objective is to link farm produce to the market by bringing together farmers, processors and retailers. Food processing is a product of agriculture and industry, the coming together of a supply line, collection and processing centres and cold chain infrastructure.

North India scores high on the consumption of canned juices, biscuits and processed food. Though only 2 per cent of fruits, vegetables and grains produced in the country are processed, the packaged food market is estimated to be worth Rs 2,38,200 crore. Since retailers have low profit margins, some are experimenting with taking control of manufacturing. Setting a trend, the pioneer of organised retail, Kishore Biyani, has invested in three food parks. In developed countries, the food processing industry accounts for 14 per cent employment, compared to 3 per cent in India. Food parks, if they successfully take off, can be big rural employers. That's one reason why Punjab has been a strong votary. Its two sanctioned projects are of state-owned Punjab Agro in Ludhiana and a private venture in Kapurthala. Haryana's projects include a state-owned HSIIDC facility and a private venture at Panipat and Sonepat. 

Most projects in the past have failed to take off because of land acquisition hassles, but minister Harsimrat Badal says this is no longer an issue for the new ventures. Both Punjab and Haryana are also offering liberal concessions, though taxation remains a sore point with the industry. Since a major proportion of agri business in India happens through co-operatives, their integration into food parks is also seen as critical to the success of the scheme.