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Food processing

  2. Backdrop  Past strategy: for development of the agriculture sector in India  focused primarily on raising agricultural output  improving food and nutrition security.  did not explicitly recognise the need to raise farmers' income and  did not mention any direct measure to promote farmers' welfare.  Strategy involved  increase in productivity through better technology and varieties  subsidies on farm inputs;  public investments in and for agriculture; and  facilitating institutions.  Key Findings : 45 per cent increase in per person food production : Last 50 years – food production multiplied by 3.7 times.  made India food self-sufficient at aggregate level  also a net food exporting country.  Farmers' income remained low in relation to income of those working in the non-farm sector. (SOURCE : NITI AYOG)
  3. Impact of low level of farmers’ income • Low level of farmers’ income and disparity between income of a farmer and non-agriculture work. • Agrarian distress and sharp increase in number of farmers suicides (1995-2004) due to: o Losses from farming o Shocks in farm income o Low farm income • Government constituted “National Commission of farmers” • 5 reports & “Draft National Policy for farmers”. • “Success in agricultural progress should be measured by the growth of farmers incomes and not just by production figures”.
  4. Doubling of Farmers’ Income “I wish to double the income of farmers by 2022 when India will celebrate 75 years of its Independence” Prime Minister while addressing farmers rally at Bareilly (Feb 28, 2016) Budget 2016-17 “We are grateful to our farmers for being the backbone of the country’s food security. We need to think beyond food security and give back to our farmers a sense of income security. Government will, therefore, reorient its interventions in the farm and non-farm sectors to double the income of the farmers by 2022.” Finance Minister Budget Speech, February 29,2016.
  5. Sources of Growth in Farmers' Income  10.4% annual growth rate required  on-going and previously achieved rate of growth in farm income needs acceleration.  Major sources of growth:  improvement in productivity,  resource use efficiency or Total Factor Productivity, saving in cost of production  increase in cropping intensity,  diversification towards high value crops,
  6. Production Centric  Need to raise output through concerted efforts on increasing productivity, TFP, input management, resource conservation  Major contributors  Pradhan Mantri Krishi Sinchai Yojana;  Soil health card, Neem Coated Urea  Prampragat Krishi Vikas Yojana.  Integrated farming systems important  Like paddy-cum-fish culture in eastern India and NE  Investment and subsidies in few technologies like poly-houses may help multiply the returns  Need for Risk Mitigation: insurance against crop and income loss  Pradhan Mantri Fasal Bima Yojana  Role of ICAR and SAUs crucial
  7. Post-harvest Management Centric  Need for suitable strategies for reducing post harvest management to reduce crop losses  Required value addition and processing  States like MP established processing units in the major producing clusters
  8. Marketing Related  Essential to ensure whether the increased production is converted to money?  Need for integrated and value chain approach  e-NAM would prove to be game changer  Market linkages and reforms essential  Price uncertainty needs to be given due priority  Effective procurement strategies like UP  Estimation of regional, national and international demand to avoid the glut situations preventing the situation of price crash
  9. “The action of performing a series of mechanical or chemical operations on food in order to change or preserve it”.
  11. overview India has arable land of 184 million hectares and produces annually 90 million tonnes of milk 150 million tonnes of fruits and vegetables 485 million livestock, 204 million tonnes food grain 6.3 million tonnes fish, 489 million poultry and 45,200 million eggs processing level is very low i.e. around 2.20% in fruits and vegetables, 35% in milk, 21% in meat and 6% in poultry products India's share of processed food is about 1.6%. Hence, there is immense potential for growth in this sector.
  12. Types of Food Processing Fruits and Vegetable Processing  The capacity of fruits and vegetables processing increased from 1.1million tons in 1993 to 2.1 million tons in 2006. Meat and Meat Processing  Present processing level of buffalo meat is estimated at 21 %, poultry 6 %, and marine products 8 %. Dairy Processing  Milk production is over 90 million tonnes. Per capita milk consumption is 75 Kgs. Fish Processing  Long coast line of over 8000 kms., 50600 sq. kms of continental shelf area and 2.2 million sq. km. of exclusive economic zones, India is rich fishery resources. Consumer Food Industries  Production is about 4.00 million tons per year.  During the year 2005-06, financial assistance was sanctioned by Ministry of Food Processing for 27 consumer food-processing units.  The total inflow of FDI in FPI sector up to 2005-06 was € 958 million
  13. Major Schemes by Central Govt.
  18. SAMPADA (Scheme For Agro-Marine Processing And Development Of Agro-Processing Clusters)  The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi has given its approval for re-structuring the schemes of the Ministry of Food Processing Industries (MoFPI) under new Central Sector Scheme – SAMPADA (Scheme for Agro- Marine Processing and Development of Agro-Processing Clusters) for the period 2016-20 coterminous with the 14th Finance Commission cycle.  SAMPADA 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.  The objective of SAMPADA is to supplement agriculture, modernize processing and decrease agri-waste.  (SOUCRE : PRESS TRUST OF INDIA)
  19. Training Scheme by Dept of Horticulture and Food Processing, Govt of U.P.  15 days short term fruit presrvation training under non- plan side  Enterpreneurship development training  Employment through Dhabha/fast food/Resturent training  Quality control and hygiene related awareness training plan  National food processing mission (SOURCE: Dept of Horticulture and Food Processing, Govt of U.P.)
  20. Economic analysis COMPONENTS COST PAPAD ROLLER MACHINE Rs. 25,000 (1 unit) POTATO 40 KG PER day @10/kg 40X10X25=Rs. 10000 SALT 100GM/KG 40X100= 4000 =4 KG @ 20 = Rs. 80 SPICES Rs. 500 MICELANEOUS Rs. 2000 Total cost Rs. 37,580(including fixed cost) Cost (excluding machine cost) Rs 12,580 Income @200/kg 200x40x25 =Rs. 20,000/month Net income Rs. 7,420
  21. Krishna Yadav : Traveling from road to road till becoming the owner of a four-storey factory SOURCE : IFFCO WEBSITE
  22. About Krishna Yadav  Mrs. Krishna Yadav is a successful food processing entrepreneur living in Najafgarh, Delhi. Krishna, a resident of Bulandshahr in Uttar Pradesh, had come to seek Delhi's livelihood with his three children when her husband's job was not in 1996. Promotional measures and advice from the scientists of the Indian Council of Agricultural Research enabled them to establish their famous food processing enterprise Krishna Pickle, which not only became a means of livelihood for his family, but also from the previous fourteen years (2002-16)
  23. CURRENT STATUS  After the start of Karoda's pickle and candy making, today they produce at least 87 different types of different types of chutney, pickle and marmalade. At present, his enterprise has about 500 quintals of fruits and vegetables processing, whose annual business is above one crore rupees which has provided employment to some others.  (SOURCE :IFFCO )
  24. Krishna : Role model for others  She regularly participates in exhibitions, fairs, seminars and conferences, so that their products are well demonstrated, and their recognition as an entrepreneur also strengthens. This innovative strategy is to establish a brand. IARI scientists have had a big role in motivating them as an entrepreneur
  25. ADVANTAGES  Regular income for farmers  Increase in self life  Widen the marketing availability  Increase the standard of living of farmers  Creates employebility
  26. References  NITI Aayog website :  Ministry of food processing website :  Department of Horticulture and Food Processing, Uttar Pradesh website :  IFFCO live :
  27. THANKS!!

Notas del editor

  1. In a short time span of 7 years, we need to find alternative to transgenic needs to be found.
  2. Policies affect farmers' income in a large number of ways. Particular attention needs to be paid to various types of reforms needed in agriculture sector. While reforms progressed in other sector of economy, absence of reforms in agriculture post 1991, resulted in lack of growth in agriculture.