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        Food Processing


        1st day of Annapoorna-- World of India, 2011, and Foodworld India marked by release of study on food processing

        The sixth edition of Annapoorna, World of Food India, 2011, a global convention for food business, organised by the Federation of Indian Chamber of Commerce and Industry (FICCI) Koelnmesse GmbH, was inaugurated here on Wednesday.The exhibition will see over 150 exhibitors displaying innovations to reach their potential consumers from November 16-18, 2011. Elated over being able to connect with right audiences leading to greater business deals, the exhibitors gave a thumbs - up to the organisers for the concept design.

        A concurrent event, Foodworld India 2011, a global convention for food business, was also organised by the FICCI, at ITC Maratha, in Andheri.

        “Food for years has been on the top of the political agenda with key issues such as security, sustainability, safety and galloping inflation on the forefront,” Rakesh Kacker, secretary, ministry of food processing industries (MoFPI), said at the inaugural session.

        Kacker said that the ministry and FICCI should work together in order to create a favourable GST (Goods & Services Tax) and DTC (Direct Taxes Code) regime for the food industry adding that the Indian food processing industry was one of the largest in terms of production, consumption, export and growth prospects and therefore considering the growth witnessed by this sector in the last decade and further improvements in the growth rates, food processing has the potential to be the driving force in India’s economic development in the years to come.

        At the inaugural ceremony, the Boston Consulting Group (BCG) and FICCI jointly released a study report titled India Food Processing Mission 2020.

        Peter Bleser, ministry of state for food, agriculture and consumer protection, Federal Republic of Germany; A Helio Waszyk, CMD, Nestle, and chairman, food processing committee, FICCI; Ashok Sinha, former secretary, MoFPI; and Nimisha Jain, principal, Boston Consulting; were all present at the function.

        "I am very pleased to be in India for this global convention on food organised by FICCI, which further fosters Indo-German relations and addresses the issue of food security. Also it is the easiest way of ensuring world peace and food processing which ensures quality, affordability and availability of food,” said Bleser at the function.

        The session was then followed by a press conference where the highlights of the study were explained. “The study stated that the food processing industry can reach $900 bn by 2020,” said Jain adding that the entire food processing system was needed to be reordered.

        She then said that the wastage of fruits and vegetables had become a key concern for the industry this year and the food wastage was also one of the key areas of concern.

        "This joint effort by FICCI and BCG in laying down the Mission 2020 for the sector provides the framework for strengthening the cause of the growth of Indian food processing industry," said Waszyk.

        The joint study aims to highlight the opportunity that the Indian food processing sector offers; demonstrate the importance of food processing for the Indian economy; articulate a mission for Indian food processing and layout a framework to facilitate action.

        Source: http://fnbnews.com/article/detnews.asp?articleid=30884&sectionid=2

        Recipe for Success: Jemima - Making processed foods accessible to Nagas

        The rising demand for processed foods and convenience foods in the market by the consumers today has paved way for young and budding entrepreneurs in the country to bring new products and work on their strategies to influence the market continuously.

        Meet Jemima Achumi, an entrepreneur who believes that there is no end to success and to achieve the goals one needs dedication, hardwork, patience and focus.

        Hailing from one of the Nagaland tribe sects, namely Sumi Tribe, she had a very clear idea about her career and chose to become an entrepreneur, though her parents wanted her to be in the administration stream.

        "I belonged to a business class family and always aspired to become an entrepreneur," Achumi said.

        But Jemima, then moved out of the state after schooling and completed her graduation in sociology from Delhi University in 2004. Her only motive was to become an entrepreneur and this gave her the courage to extend her stay in Delhi for another year.

        During her stay in Delhi, she observed that consumers were more inclined towards processed meat foods and mostly preferred non-veg. This was an impetus for her to come back to her state where she realised that it was favourable for her to start her own firm in her hometown, where 90 per cent of the Nagas were non-vegetarians.

        Therefore, Jemima spent her time researching over two years, during which time she met a lot of entrepreneurs from other states and with the encouragement of one of the entrepreneurs from Kolkata, she was able to proceed with her project.

        She then started, T J Foods, a company dedicated to processed meat products. The products by this company are sold under the brand name Jemmeez.

        "Nagas had no access to any of the processed products while about 90 per cent of the Nagas were non-veg," informs Jemima, while talking about her newest venture.

        Indeed, setting up a company was not an easy task for Jemima as it posed a lot of challenges, above all financial aspect, as the investments were very high. But, fortunately, her family provided her the financial assistance.

        "Although the Ministry of Food Processing Industries provides subsidies to different state entrepreneurs, it was taking its own time to go ahead with the same," said Achumi and hence she decided to plan for her next step - meeting companies which could provide her the technology from countries like Germany and Italy.

        "I still have a long way to go," she trailed off and felt that women entrepreneurs need to look for more innovative careers.

        Source: http://fnbnews.com/article/detnews.asp?articleid=30860&sectionid=2

        IIP, MoFPI, Neramac workshop on packaging of process fruits for entrepreneurs

        The Indian Institute of Packaging (IIP), Ministry of Food Processing Industries (MoFPI), and NERAMAC (North Eastern Agricultural Marketing Corporation Ltd), had recently organised a workshop on Packaging of Processed Fruits for Micro, Small and Medium Entrepreneurs’ at Dimapur, Nagaland.

        The background of the workshop was that though the Indian economy was based on agriculture, and grew tremendously in terms of production of food grains, fruits, vegetables and cash crop it witnessed great loss - 40% of India’s fresh fruits and vegetables were lost due to improper harvesting, lack of storage facility, mishandling, transit loss, improper and unscientific packaging.

        According to N C Saha, director, IIP, has taken the bold initiative to organise five workshops of one day duration at different places in India. The IIP has already done series of workshops viz. Guwahati, Delhi, Agartala, Tirupati, Goa, Siliguri, Vizag, Ranchi, Muzaffarpur, Aizawl, Imphal, Shillong, Chittor, Tejpur, Bangalore, Bhubaneswar, Indore, Itanagar, Cochin and now at Dimapur to cover this sector of industries located in different parts of the country. As these industries need special attention for their upgrade in terms of technology and technical know- how so that these industries would be able to sustain in this competitive world.

        H K Khulu, agricultural production commissioner & principal secretary (agriculture), Government of Nagaland, Kohima, was the chief guest, at the workshop. The guest of honour was Dr Akali Sema, director, Central Institute of Horticulture (CIH), Dimapur, Nagaland. He highlighted about the different problems faced by fruit processors especially in Dimapur.

        Sashi Pongener, chairman, Nagaland Rural Bank (NRB), Kohima, Nagaland; Inamul Hussain Saikia, zonal manager, Nagaland, NERAMAC; and Sashank Gahtraj, president, Yimsean Livelihood Development Society, Dimapur; also addressed the sessions.

        Source: http://fnbnews.com/article/detnews.asp?articleid=30899&sectionid=1

        Wipro’s Trace Solve – unique solution that can ensure Food Act compliance

        Wipro, the information technology major, has a unique offering for the food industry - Trace Solve - that ensures enterprise-wide continuous compliance visibility at more than one location in the food industry.

        With the Union government working to implement the Food Safety Standards Act across the country in total, the company is looking at opportunities in the industry to chip in its expertise.

        The Trace Solve solution will continuously monitor attributes of received material, compare these with operating specification. There is also an alert management system which signals when incoming attributes are out-of-specification, according to Ravi Purohit, GM and global head, food, beverages, agriculture and tobacco sectors, CPG Vertical, Wipro Limited.

        Other notable features of the solution are that it also monitors the associate downstream outcomes with upstream events which cover the product capabilities, equipment, events, processes, etc.) to find profit and quality leakages. In addition, it also manages temperature information and predicts remaining shelf life when the product arrives and provides bi-directional traceability for products which are bought from third-parties.

        Now with the FSSA insisting on food recall, the company is looking at participating in this at the national level offering solutions to the food processing industry. “We have worked in similar initiatives in the European Union and can participate in bringing our technology and consulting expertise to help this initiative,” added Purohit.

        “Now we bring in our rich background working with leading food & beverage companies in different areas of the supply chain. We work with leading product vendors to deliver solutions to the customers for traceability. Wipro has developed solution in niche areas within the scope which is not addressed by the vendors, for instance interfacing with the POS (point of sale) system to block product sales in case of a recall,” he said.

        Food recall is a relatively new concept in India but it is well defined in most of the developed countries. According to Purohit, all international brands have a stringent quality system and are applicable in India as well, as they and the local brands are monitored by the FPO, BIS and other regulatory authorities. Moreover companies have voluntarily recalled products earlier based on their quality analysis but not structured. For exports we have government organisations such as APEDA and MPEDA which monitor this.

        The challenges that most of the companies face in food recall are primarily due to lack of visibility at different stages of the supply chain. The information to track and trace is available in silos within the system. There needs to be investment into traceability system which will pull all these silos of information into one platform and provide alerts. We have constantly heard prevention is better than cure. There is a lack of or less automation and information available electronically for providing alerts to respond quickly. The major reason is maturity in technology and cheap labour cost, according to him.

        “In India, the food recall though stringent has not been implemented as intended. The international law comes down very severely on the companies forcing them to close down. But in India this has not been the case as there are a lot of legal and operational hurdles. The companies still face significant challenges on spurious products and there are still no answers this,” pointed out Purohit.

        In early November this year, Wipro was chosen by Premier Foods, the United Kingdom’s largest food producer, as a strategic technology partner. The company’s partnership with SAP, delivery innovation, outcome-based service models and competencies in cloud- based services will be leveraged for this engagement with the UK-based food major. “The company adopts the consumer packaged goods practice which is a value chain-based approach enabling it to provide customised, industry-specific solutions that complement our deep technology background,” he added, on a concluding note.


        FM okays changes to Food Security Bill; presentation before Cabinet soon

        K V Thomas, minister of state for agriculture (independent charge), consumer affairs, food & public distribution, while talking to FnB News over telephone has said that finance minister Pranab Mukherjee, who is the head of the Empowered Group of Ministers (EGoM) on Food, has approved key changes to the proposed National Food Security Bill and it will be presented before the Cabinet soon. He also said that the Cabinet note is ready and has been circulated for inter-ministerial comments.

        Thomas informed that Mukherjee had agreed to several key changes such as keeping an option open for supplying more than 3 kg of subsidised food grains to general households. Further, lactating women of the entire country will get cash-handout of Rs 1,000 per month for six months instead of 52 districts and in cases of general households entitlement to subsidised food grains, the word minimum will be inserted in the draft so that the government can increase the allocation if production arises, said the minister.


        55 food processing units to come up in Orissa

        The government of Orissa has sanctioned around 110 acres of land to set up 55 industrial units for the proposed food processing park at Malipada in Khurda district.

        According to a report in Business Standard, the state has also planned to develop a mega food park at Khurda and the proposal is under the consideration of the Government of India.

        "The food processing park would be developed on 162 acres of land. The state government has already allotted 110 acres to 55 units. It will invest Rs 9.9 crore on infrastructure developments for this food park and out of this Rs 1.91 crore has already been deposited with the Industrial Infrastructure Development Corporation of Orissa (Idco)," state industries minister Raghunath Mohanty said..

        The proposed food park project has the potential to attract investments of Rs 2,000 crore. Further, the state government was mulling to form a special purpose vehicle (SPV) with Infrastructure Leasing & Financial Services (IL&FS), one of India's leading infrastructure development companies, for this purpose.

        The government had roped in IL&FS as a consultant to help boost investments in the food processing sector. Tenders for this project were likely to be invited soon.

        Source: http://www.fnbnews.com/article/detnews.asp?articleid=28098&sectionid=2

        Six vital schemes driving India's food processing industries

        The ministry of food processing industries (Mofpi) has been implementing various plan schemes for promotion and development of the food processing sector.

        In a written reply to the Lok Sabha, Subodh Kant Sahai, food processing minister, said, there are about six important schemes under Mofpi, namely Scheme for infrastructure development with major components i.e. mega food park, cold chain, modernisation of abattoirs and value added centres, scheme for setting up of technology up-gradation/modernisation/expansion of food processing, scheme for quality assurance, codex standards and R&D, scheme for human resource development, scheme for strengthening of institution and a scheme for upgradation of quality of street food.

        "All implementing agencies engaged in setting up/expansion/modernisation of food processing industries covering all segments are eligible for financial assistance. The implementing agencies include central/state government organisations, PSUs/NGOs/Co-operative societies and private sector units and individuals," he informed the House.

        "The funds are allocated scheme-wise which are project-oriented in the country. No separate funds are earmarked to states and voluntary organisations," he added.

        Source: http://www.fnbnews.com/article/detnews.asp?articleid=28099&sectionid=2

        Govt projects Rs 1 lakh crore investment in food processing

        The ministry of food processing industries has projected investments to the tune of Rs 1 lakh crore during the 12th Plan period to increase the country's food processing capacities. While Rs 10,000 crore is expected to come from government agencies and venture capital firms, the remaining amount would come from entrepreneurs. "The country is able to process only 10% of all the food produced. The government is attempting to increase this capacity by another 10 percentage points. In order to achieve this, we need investments of Rs 1 lakh crore," said K Rajeswara Rao, joint secretary, ministry of food processing industries.

        Addressing the inaugural of a national workshop of executive development programmes in food processing at the National Institute for Micro, Small and Medium Enterprises (NIMSME) here on Friday, he said the country lost Rs 55,000 crore annually because of lack of sufficient food processing facilities. "If we could increase our processing capacities to 20 %, we could save Rs 10,000 crore. Besides, the industry gives a return of about 20% to the entrepreneurs," he said.

        Source: http://www.fnbnews.com/article/detnews.asp?articleid=28105&sectionid=2

        FDI in FP grows by 175%

        Minister for food processing industries Subodh Kant Sahai has confirmed that foreign direct investment (FDI) in the food processing sector witnessed a 175 % during 2009-10 to $279.33 million. Sahai was addressing the Rajya Sabha when he informed that in 2008-2009 foreign inflows were $102.64 million.

        “The inflow of FDI in food processing sector had increased from $102.64 million to $279.33 million (in 2009-10), which was a 175 % growth," Sahai said.

        The minister said that the food processing sector had benefited with innovative technologies, and improved quality of products because of foreign funds.

        "FDI is expected to bring new products, improved quality and new technology in the food processing sector, resulting in higher employment, and reduction in wastage of agri-products," the minister said.

        Source: http://www.fnbnews.com/article/detnews.asp?articleid=28156&sectionid=2

        M’rashtra plans setting up of agri-processing clusters

        The Maharashtra government is planning to give a boost the agro processing industry by adopting a separate agro-industrial policy for the state, which aims to attract new investments by offering of incentives and promotion of processing clusters. According to the draft policy document, the state government is looking at setting up agri-processing clusters for fruits, vegetables, cashew, cereals, pulses, oilseeds and dairy products. According to a report in Business Line, the document has indicated that clusters at 57 locations across the state could be set up.

        Each cluster would have support infrastructure for producers and processors. It will promote availability of raw materials and other inputs, access support from the government, agriculture universities and research institutions, and would enhance access to market information. This would help farmers and processors to come together and offer higher value-added products.

        For example, in districts such as Akola, Washim, Nagpur and Wardha, where soyabean is extensively cultivated, clusters could be set up for oil and solvent extraction units. Similar clusters could be set up for cashew nut growing districts such as Ratnagiri and Sindhudurg.

        According to Azeez Khan, principal secretary, industries, the policy is aimed at creating all the forward and backward linkages in the value chain for farm products. Under the new policy multi-chambered cold storages would be promoted at various locations in the state. Currently, the National Horticulture Mission provides a credit-linked back-ended subsidy of 40% of the capital cost for cold storage units. For cold storages, the maximum capital cost permissible is Rs 6,000 /tonne for a 5,000 tonne capacity. In the case of multi-chambered cold storages, the capital cost could increase from Rs 6,000 / tonne to Rs 10,000 /tonne for a 5,000 tonne capacity.

        Under the policy, the government will also provide a subsidy of 25% on the additional capital cost (over and above Rs 6,000 /tonne provided by the NHM, in order to encourage multi-product cold storages. For agri-processing units in the backward areas, the state government will give reimbursement of 50% of the net VAT paid during the fiscal. These units will also get 5% interest subsidy on term loans for fixed capital investment for five years.

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