Friday 03 September 2010 Government 2.0: The Road Ahead
India to set up 30 food parks

The government is working on 30 cold chain routes countrywide to enable integration of the fruit and vegetable (F&V) sector from farm gate to the retail outlet

New Delhi: The Government of India is planning to set up 30 mega food parks in all the states so that cold chain facilities are available in catchment areas comprising not more than three to four districts.<!--more-->

"The government is working on 30 cold chain routes countrywide to enable integration of the fruit and vegetable (F&V) sector from farm gate to the retail outlet," the Minister of State for Food Processing Industries Subodh Kant Sahai said.

He was speaking at the two-day ‘Fruit & Vegetable Summit 2008' organised by the Confederation of Indian Industry (CII) along with the Ministry of Agriculture and its affiliated institutions here on Tuesday.

He said that the F&V sector is an emerging sector that holds a lot of opportunity for both agriculture and industry and is going to be the driving force of Indian economy.

In the absence of a proper value chain for food processing; produce worth Rs 50,000 crore was wasted every year in India-the world's second largest fruit and vegetable producer- the minister added.

Sahai further added that his ministry has made food processing a tax-less industry to encourage the investors in this sector.

"While the industrial growth rate was stagnating, food processing industry was growing at 13 per cent," Sahai said and added that the challenge was to reach these benefits to the farmers.

The summit calls for developing globally competitive value chains in the F&V sector and for catalysing holistic policy development and creating an interface among the industry, the government and the farmers.

"Following wide ranging discussions during the two-day summit, it was agreed that organised retail backed up by integrated value chains are the key to growth," Bharti Enterprises Vice Chairman Rakesh Bharti Mittal said.

Mittal further informed that CII has set up an Agri Council and a special joint task force with the government and the industry to work out a strategy paper listing key imperatives like scalability, integrated value chains, price competitiveness and cluster approach for farming, for making the sector competitive in global and domestic markets.

Earlier, a session on ‘Fruit and Vegetable export: The Multidimensional Challenge' identified three major challenges in the export of F&V sector—traceability, conformity with global standards and market access.

Speaking on need for rationalisation and harmonisation of export procedures, Agricultural and Processed Food Products Export Development Authority Advisor VK Gupta said that tariffs are falling but developing countries like India are still facing difficulty in accessing developed markets.

"On the export front the biggest hurdle for growth has been the mismatch in quality between what is produced in India and what is required in the importing country," Gupta said.

He added that many consignments were rejected at the destination port due to poor quality; there is a need to change the attitude and produce what is marketable, while making traceability an important tool for benchmarking quality.

Speaking on integration of export value chains, Field Fresh Foods' Business Development and International Sales Head Raman Ahuja said that India has the potential to become a major fruit and vegetable exporter and should focus on improving yield standards.

Addressing the summit, Yes Bank Food and Agribusiness Strategic Advisory and Research Assistant Vice-President V Sridhar said that multiple agencies are involved in the regulation of exports of fruit and vegetable.

While a large part of information content requirement for each regulatory agency is the same, information format stipulations are found to vary among them, the Ministry said.

Same information is being presented to various agencies, while collection of charges separately by each regulatory agency has led to increased documentation and overhead charges, the Ministry added.
—iGovernment Bureau

Setting of Mega food Parks is an ambitious plan and its success depends entirely on the role played by the corporates.Government should give emphasis to overcome "Babushahi" of the officials involved. A million dollar question: Is our infrastructure is ready for such change? First we need to develope it atleast in few northern and in eastern states.Lets be optimistic and contribute towards its succes rather than criticing it.

[quote comment="11236"]An excellent idea. Let a comprehensive paper be prepared on problems of in preserving, marketing and export of fruit and vegetables. We have crying on rotting of fruit and vegetables since 1970s but have done little to adress the problem. Does any body remember that India tried exporting banana to West Asia durin 1975-76 and all our banana rotted in the hold of vessel because the vessel was not a reefer vessel and we did not get berth for several days. One way out is to encourage large indusrial houses like Reliance, Tatas, Aditya Birla Group, Bharti, Godrej etc to start from contract marketing, grading, cold chain , domestic marketing and export. If the Minister is really interested he should call these industrial houses and talk bussiness. Time is right and ripe.[/quote]

We would like inform you that our JAGRUTHI SEVA SANGAM is assure that cold chain project will be provided to us for our sustainablity

All talks about cold chains in present scenario of power shortage means ADDING COST (NOT VALUE ) to the products. And if the chain is broken once, quality of produce delivered at consumer end will NOT be ACCEPTABLE.

Why cant the policy makers talk of simple methods to ensure safe keep of perishable goods? This gives advantage of storage, adding value and NOT FLOODING market at the same time-saving market from crashing in price terms.

It is a welcome direction.But the govt cannot handle this.
The infrastructure should be designed and erected by govt and it should be handed over to private parties with sealing of charges or directions of use.The number should be increased to 300 and the locations should be in backward districts along the national /state highways....No politician/kins should be handed over the contract to avoid favoritism.One person per family from the vicinity need to be employed.Power supplies to be one consideration while selecting the location. Needless to say keep this out of all towns above 1 lakh population so that the rural mass gets benefit and access is not a pain.
If we have a location with good concentration of agcl produce, all airlines should be given free entry to export goods out of this location.
Profit earned by all parties should be excempted from all taxes for first 10 years to attract interest and ensure economic success.
K.V.Iyer.

This has been an area that I have encountered many a times recently.

Everybody talks of "From the field to the market"... including the informal and formal middlemen in the form of arm-twisting dalals in the villages and the sophisticated "Fresh's" started by the corporates. I have heard of it from the ground level farmers in Geteswadi in Kalyan to the VIIT-sponsored Baramati Initative in Baramati.

The ultimate objective of either party is to make handsome profits at the cost of the illiterate and helpless farmer.e.g.,
(a) Carrots bought @ Rs 2/kg from the farmer is sold at Rs 20/kg in the cities!
(b) Farmers are encouraged to use fertilizers to increase the size and weight of vegetables
(c) Farmers are totally ignorant of the costing aspects...happy that expenses are equal to income
(d) Farmers have to go to moneylenders to borrow money for their social obligations...with interest rates as high as 2% per month and default rates @ 6%per month!

So where are we and how is this going to solve the problem...never under existing systems.

Solutions are aplenty...if we think the farmer's way. Can we not create a "haat" for the farmer in the towns and cities where he can sell his produce. For transportation, help create a co-operative who could hire transporters to carry the produce to the point of sale. Teach him simple maths to find out his ROI and therby fix his selling price. Handhold him for sometime till he becomes confident. For this, we could use students of colleges of business and Business schools...to help out in his education. Lets not forget that the farmer has the basic intelligence. He only needs a direction and focus... to help him overcome tendencies to commit suicide or adopt distress sales.

An excellent idea. Let a comprehensive paper be prepared on problems of in preserving, marketing and export of fruit and vegetables. We have crying on rotting of fruit and vegetables since 1970s but have done little to adress the problem. Does any body remember that India tried exporting banana to West Asia durin 1975-76 and all our banana rotted in the hold of vessel because the vessel was not a reefer vessel and we did not get berth for several days. One way out is to encourage large indusrial houses like Reliance, Tatas, Aditya Birla Group, Bharti, Godrej etc to start from contract marketing, grading, cold chain , domestic marketing and export. If the Minister is really interested he should call these industrial houses and talk bussiness. Time is right and ripe.

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