India produces over 600 million tonne of food products every year. The country is the second largest producer of rice and wheat and the largest producer of pulses. It is also the largest milk producer.
Though development of agri-based and food processing industries are top on the government agenda, for their capacity to generate jobs and rural income, only about 20% of India?s fruit & vegetable output is processed. This compares poorly with 30% in Thailand, 80% in Brazil and 60-70% in western countries like the UK and US.
In the food segment, processed foods account for a mere 2% of the total production, which is abysmally low. Farm produce of about 30% is being wasted every year for want of storage, transportation, cold chain and other infrastructure facilities.
Though a separate ministry of food processing was set up in July 1998 by the Rajiv Gandhi government, the segment still calls for better research & development activities in various areas.
The national food processing policy aims to increase the level of food processing to 10% by 2010 and 25% by 2025. But attaining these targets would be difficult, unless research & development programmes are upgraded to reduce costs, improve quality and performance and tap opportunities in the food & beverage sector.
This calls for a higher allocation for investment in R&D to develop new products?including process development and process validation?ensure technology improvement, enhance the shelf-life of perishable fruit and vegetables, set up state-of-the-art laboratories to meet the requirement of quality control and quality assurance, develop methods for estimation of various toxins and toxic substance present at residue levels and develop methods for determining nutrients.
Several technological innovations have been made in India in various areas to provide health foods, specialty foods, ready-to-serve foods, nutraceuticals and functional foods and enhance preservation, storage and shelf-life of food products. Several eco-friendly packaging materials and improved methods of food processing have been developed to ensure hygiene and consistency of food products in recent times. But there is room for greater improvement in all the control parameters in all the segments.
To realise the objectives in an integrated way, the government should create an independent separate cell or a central council for research & development in the ministry of food processing. This body can function as a coordinating agency for conducting research and surveys, including feasibility studies, and taking the multi-dimensional research findings to the intended constituents like farmers, processors and other functionaries in the food trade and industry. This will help food industry to tap unexplored potentials.
The council could also monitor and take stock of different research activities conducted by related research institutions for onward dissemination. In the changing global scenario of trade liberalisation, it is important for Indian products to meet certain minimum quality and safety conditions.
But many segments of the industry still have two standards of quality, that is, one for exports and another for local supplies. The food products meant for exports are evaluated according to stringent specifications, such as EU norms, but products for the local consumption are tested according to PFA specifications, which badly need revision.
In order to have quality products both for exports and the domestic market, we need a robust R&D sector to focus on quality aspects and provide inputs for quality standardisation and harmonisation. This is important. Because, in future, all WTO member countries will have to adopt codex standards to ensure that standards are harmonised.
The industry needs R&D support to counter certain restrictive practices of importing countries. The R&D sector is required to develop methods and cost-effective process technologies, including automation and computerisation in the manufacturing processes so that the industry can meet the most stringent specifications, while improving product quality with consistency. R&D should also ensure the commercial viability and cost-effectiveness of the product over a period. The government needs to give assistance for developing better food processing and post-harvest technologies as well as for establishing an efficient cold chain system.
Commercialisation can improve the performance of food & beverage companies. It can push researchers to work with their clients and cater to their needs. Research organisations should be empowered and encouraged to enter into partnerships with private clients. All these activities can be monitored and sponsored by the proposed research & development council in the ministry of food processing.
Today, the food-processing sector is faced with many constraints, such as unavailability of resources, lack of infrastructure, institutional lethargy, shortage of financial assistance, policy-induced limitations and poor marketing. The proposed R &D council could also analyse and assess the constraints and issues hurting the industry?s growth.
A more immediate issue is the harmonisation of multiple food laws. It has been observed that there are 13 laws enforced by nine ministries. These need to be integrated into one common food law. Prevention of food adulteration laws is not only stringent but also time-consuming in enforcement. There is a need to review the Agricultural Produce and Marketing Act to ensure freedom to farmers to sell agricultural produce to sellers of their choice at remunerative prices rather than selling them through regulated market committees or authorised agents.
Then there is also the issue of multiplicity of taxes and levies charged on different commodities. Different states have different sales tax rates, mandi taxes, inter-state charges and levies like chungi tax. Procedural complexities add to pressure on margins and hamper growth and development of the food processing sector.
?The writer is director, ABRecons, a research and consultancy
