THE "ACHIEVEMENTS" IN FOOD SECTOR PROGRAMS!-ANY TAKERS?

Glorious pictures about the achievements of Ministry of Food processing Industry are "painted and planted" among friendly media persons for country wide "splashing" and thereby get a good image in the minds of people about this highly bureaucratic set up at Delhi. Imagine what embarrassment it can cause to the Babus in MFPI when its own consultative committee has nothing but ridicule for the claims made by it every year at the budget time. Most heinous crime being perpetuated by MFPI is that in spite of its existence for almost two decades it did very little to create a reliable data base about the food industry and its figures are at best guesstimates based on heresay and unreliable sources. GOI must consider evaluation of the impact of MFPI on the performance and growth of the food industry by a blue ribbon committee of experts knowledgeable about all aspects of food processing and if its working in the past 22 years has been not satisfactory, it should have the courage to wind it up unceremoniously with no remorse! Here is a take on this issue.

"To which the committee reacted: "The committee cannot but, consider these achievements of the ministry with a pinch of salt, as their estimation is based merely on 'regular discussions' with stakeholders. Arriving at conclusions on such important matters on the basis of mere discussions throws a lot of light on the sanctity of the data flaunted in support and speaks volumes on the manner of working of the ministry in charge of the 'sunshine' sector of the Indian economy. The glaring absence of an information system for compiling data and indices pertaining to the food processing industry sector in the country, in spite of the ministry being in existence for two decades now, also reflects poorly on the planning and management capabilities of the ministry." Apart from lack of data, proper mechanism for systematic planning, and delay in execution have also been the concerns of the ministry."  

Of course many people unconnected with the food industry are benefited from the pedestrian existence of MFPI and these people are bound to protest. Even some industry players, cozy with the Babus in the MFPI may resist any attempt to close the ministry because of their vested interests. The still-born NIFTEM, touted to be a world class food technology institute is a classical example of the wrong priorities of MFPI and on top of this an undistinguished R & D set up in Tamil Nadu is being propped up as a high tech organization to solve all the problems of the industry. It is another thing that neither the food industry nor the food scientific community has any high opinion about the caliber of these organizations to deliver the required services to the proposed users.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

ANOTHER "MEGA" DREAM FOR FOOD PROCESSING- A GRANDIOSE "PLAN"

Ever since the Ministry of Food Processing Industry(MoFPI)was established as a Special Purpose Vehicle of Government of India two decades ago, like any other government agency, this set up has been producing reams of papers, often glossy, promising many things and raising visions of a vibrant food industry in the country. It is well known that on a per unit investment food processing sector create more employment provided it is dominated by small and medium scale enterprises. If large scale mechanization is deployed in the processing, the employment content comes down drastically. A look at the past developments, the Indian food industry is increasingly being controlled by Mega companies and MNCs with huge investment and capital intensive foreign originated technologies sidelining the small and tiny sector players. Frequent "declarations" that MoFPI would increase the value addition to agricultural produce, raise the GDP contribution and substantially increase exports is turning out to be mere sloganeering and whatever the country has been able to achieve so far is in spite of the government by the enterprising private players. The latest "Plan" to set up 10 Mega food parks can materialize only if adequate industry friendly environment is provided and just offering subsidies will end up in huge tracts of land being appropriated by big fishes under the garb of establishing food processing units. Here is the grand stand posturing of MoFPI on this grandiose plans.

"The food parks will be built in Andhra Pradesh, Punjab, Jharkhand, Assam, West Bengal, Uttarakhand, Tamil Nadu, Karnataka, Bihar and Tripura. Ministry has introduced Mega Food Parks Scheme (MFPS) to accelerate the growth of food processing industry in the country through facilitating establishment of strong food processing infrastructure backed by an efficient supply chain. Ministry informed that the scheme provides for a capital grant of 50 percent of the project cost in difficult and Institute for Transportation and Development Policy(ITDP) notified areas(with a ceiling of Rs 50 crores). The government is likely to be spent a sum of Rs.488 crore by March 2012 on the scheme for technology upgradation and modernization of food processing industries. A Mega Food Park takes about 30-36 months to be completed. The working group on food processing for the XII Plan has recommended a new centrally sponsored scheme in the form of National Mission on Food Processing (NMFP) proposed with seven components".

It is true that China has achieved lot using the strategy of Mega Food Parks which helped that country as a major exporter of processed foods of all hues at relatively low cost. But this has happened because of extraordinary facilities and support provided by the government there in stead of just "passing on" the money as it is happening in India. A Mega Food Park must be "mega" in size by bringing in many diverse processors from the small and medium scale sector in stead of a few mega companies with very little employment content. In stead of Mega Parks what the country needs is hundreds of functional industrial estates with superb infrastructure and a few common facilities including marketing help. Big companies have sufficient resources to set up their own facilities and do not need any prop from the government. One can only hope better sense will prevail eventually!

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

POST HARVEST FOOD LOSSES-ANOTHER "ESTIMATE"!

Figures for food losses in the country have been often used by many to push their own agenda. Research scientists very frequently highlight food losses to justify their research projects while government use the same figures to push for increased budgetary allocation for preventing the very losses it is supposed to prevent! Latest in this "game of numbers" comes from an "institute" whose credentials are not well known and its scientists put the annual loss figure at Rs 44000 crore! One difference between earlier "estimates" and the present one is that the latest figure is projected in terms of cost without indicating the quantum lost or percentage of production. Also not clear is whether this estimates refer to only horticulture produce or to the entire chain of foods produced and processed in the country. What is amusing to see is that the MoFPI of GOI has swallowed this figure as Gospel truth and promptly asked for a 4-fold increase in allocation of funds for its 12th 5-year Plan programs! It is to be remembered that losses do occur at various stages of the food chain starting from the field to the consumer table and estimating losses at each stage, especially in a country like India is not an easy task. To believe that an institute with its limited resources and lack of personnel with right expertise and experience can do justice to this topic, may be asking too much. Nonetheless one can get a better perspective by reading the report by this academic body.

The Food Processing Ministry has sought a nearly four-fold hike in its 12th Five-Year Plan outlay to Rs 15,000 crore to curb wastage of fruits and vegetables worth Rs 44,000 crore every year, which is more than the budgetary allocation for the MGNREGA scheme in FY'12. "The amount of food wasted every year due to lower food processing potential is Rs 44,000 crore, which is more than the budgetary allocation for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) of Rs 40,000 crore for the 2011-12 fiscal," a senior official with the Ministry of Food Processing Industries said. The Ministry has sought the allocation of Rs 15,000 crore from the Planning Commission for running different progressive schemes in the 12th Five-Year plan against Rs 4,000 crore in the current Plan (2007-12), the official added. The proposal was submitted in mid-September. The official noted that the fund hike has been demanded to strengthen infrastructure and cut down the level of food wastage. The latest yearly food wastage figure of Rs 44,000 crore that came in April 2010, is based on a random survey conducted by CIPHET in 106 districts across the country, he added. The Central Institute of Post-Harvest Engineering and Technology (CIPHET) was established in 1989 at the Punjab Agriculture University campus in Ludhiana, Punjab, as a nodal institute to undertake research in the area of post-harvest engineering and technology appropriate to agricultural production catchment and agro-industries.

What is intriguing is the basis on which MoFPI had sought such huge funds while its capacity to conceive programs and spend the budget is some what limited, if judged by past track records. There is this bland declaration that the funds would be utilized to "strengthen" infrastructure which could cut down losses. The activity that encompasses harvesting, post-harvest handling, storage, processing, distribution and consumer purchase is a complex one involving millions of players and unless the whole system is modernized there is not much GOI can do to cut down losses. For example take a simple case of controlling rodents in fields where, in spite, of enormous attempts of the past, the rodent population has been able to outsmart the farmers and field losses continue unhindered to this day! Another example is grain storage infrastructure for supplying food grains under PDS and though millions of tons of grains storage infrastructure is available in the country, supply of rotten grains continues through the PDS under the very nose of the government! Under a regime of corruption, political chicanery and babu-criminal nexus, it is well known that the country loses food grains worth Rs 40000 crore per year through pilferage and misappropriation of PDS grains. Is there a solution to this problem? No one knows. The losses were there 5 decades ago, losses are there to day and losses will continue unabated in future also, even if MoFPI receives the increased funding under the next Plan!

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

CONSORTIUM R & D-IS THIS A NEW CONCEPT?

It is rare any one in India speaks on R & D in the food field as this area is the most neglected one and to hear some one, especially with right credentials talk about is indeed welcome. Head of the S & T Department of GOI, a technocrat of some standing, recently stated that in order to make any meaningful impact private and public institutions must join hands pooling their resources and investing them in an optimal way. Probably the pitiable status of food research in the country must have prompted him to make such a statement. What is missing in his expose is how such a symbiosis can be achieved at the ground level with industry and the scientific community not trusting each other for various reasons. In contrast the discourse by the Babu from the MoFP is, as usual, is an exercise in verbosity meaning nothing and no amount of sermonizing can bring about desired results unless there is a commitment, focus and vision. Here is a take on the subject.

"A group of government and private institutions should join hands to provide research and development inputs to food processing enterprises as most firms in the sector don't have the capacity to invest in R&D activities, senior officials said Wednesday. "The bulk of the food processing units in the country do not have the capacity and the funds to undertake R&D activity. It is, therefore, important to create a system for absorption of technologies through models that are most suited to these enterprises," T. Ramasami, secretary in the ministry of science and technology, said at an event organised by the Federation of Indian Chambers of Commerce and Industry here. He said a group of institutions should form a consortium to undertake research and development activities in the food processing industry. "A group of institutions can come together through the public private partnership (PPP) model to provide R&D inputs to food processing enterprises," Ramasami said. He said research and development could bring about a 10-15 percent increase in value addition in agri-produce. A huge amount of agricultural produce is wasted every year in India due to lack of proper processing facilities. Wastage of perishable food products due to low level of processing is estimated at Rs.30,000 crore a year. The average processing level in India is a mere 10 percent of the total agri-produce, resulting in significant quality deterioration and wastage in the supply chain. Value addition of the total agri-produce is just 20 percent and India's share in global trade in processed food is a negligible 1.5 percent. Ashok Sinha, secretary in the ministry of food processing industries, said his ministry was preparing a "master plan" for the development of the sector. The ministry will soon submit its plan to the Planning Commission for its consideration. Sinha said apart from the low level of R&D, the food processing sector was also facing other challenges, including the issues of aggregation and quality of raw materials".

Is it not a tragedy that in spite of plenty of funds floating around in the country, there is a marked leadership vacuum for zeroing in on relevant and useful research areas? The bare cup board of accomplishments speaks for itself. Pedestrian quality of research activities in multitude of universities and half a dozen government-owned institutions does not make much of a sense as far as the common man of this country is concerned. As for the industry, large scale players look after themselves vis-a-vis their technical and technological needs, it is the micro enterprises and the small scale sector which are left in the lurch for want of technical help to manufacture quality foods with assured safety. Will the consortium approach overcome this lacunae in the present system? Still it is worth debating on this option to evolve a workable solution for the inadequacy of R & D in the country.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com