Food processing needs infra, comprehensive national policy

The food processing sector is plagued by inadequate infrastructure and lack of a comprehensive national policy, a FICCI survey reported today.

"Despite the Indian food industry's growth potential to touch $258 billion by 2015 from the current level of $181 billion...The industry is buffeted by 15 major challenges that have depressed its yield levels," a Ficci survey that comprised of 125 top industry officials' views across the country, said.

Inadequate infrastructure facilities and the need for a comprehensive national policy were the prime concerns voiced by the industry leaders. Availability of trained manpower, food safety laws and inconsistency in central and state policies are other areas of concern.

Shirjeet Mishra, Executive Director, HUL and also chairman of FICCI's Food Processing Committee, said processed food manufacturing firms were facing problems of inconsistent quality of raw materials and high levels of wastage, caused by a fragmented supply chain.

Quoting a KPMG report, he said the existing food cold storage facilities could accommodate 21.7 million tonnes of produce compared with the requirement of more than 31 million tonnes.

"A comprehensive national policy should incorporate tax breaks for the (food) processing (industry) and promote the development of valuable agri-business and agro-industry models, based on different agro-climates and regions," he said.

The government had recently pegged India's annual loss of agri products, fruits and vegetables at Rs one lakh crore and said that setting up of cold chains and back-end infrastructure could cut down losses by more than half.

Besides, rating agency Crisil had pointed out that almost 50 per cent of the annual wastages could be prevented if fruit and vegetable retailers had access to specialised cold storage facilities and refrigerated trucks.

The research firm estimates that the vegetable and fruit wastages in 2009-10 was at about Rs 63,000 crore.