![]() Financial Daily from THE HINDU group of publications Friday, Dec 13, 2002 |
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Industry & Economy
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Foods & Food Processing Kerala Govt betting big on food processing Our Bureau
THIRUVANANTHAPURAM, Dec. 12 THE Minister for Industries, Mr P.K. Kunhalikutty, has said that the State Government will provide all support to promote food processing as a sunrise sector along the lines of tourism and IT. Addressing the inaugural function of a technical workshop on `Development of banana/plantain based food processing industry in Kerala', the Minister said that the State possessed all necessary attributes to becoming a major player in the food products sector. Besides, the acclaimed life expectancy levels in the State are now being traced to its good food habits. According to the Minister, food processing came in for special mention as holding tremendous potential for the State during a series of interactions in Mumbai with the country's leading industrialists. "The Government has woken up to this fact and will go the whole hog to promote the industry as a thrust area," Mr Kunhalikkutty said. Earlier, Mr Ajay Kumar, Secretary (Industries), said that the food processing sector held tremendous prospects for the State in the context of the WTO regime. The State could latch on to its tradition as a food products exporter and emerge as a leading player through recourse to value addition and diversification. Kerala's share in the country's total food products export is almost 20 per cent despite the fact it accounts for comparatively much lower land area. Additionally, food products constitute almost two-thirds of its entire export basket. The State also needs to look at the large domestic market available for food products. It provides the country's largest marketplace for a whole range of food products, including biscuits, chocolates, hardboiled sweets, ice-cream and milk products. For instance, the State consumed 1.34 crore units of biscuits annually while the respective figures for the country's metros are 97 lakh in Mumbai, 75 lakh in Delhi and 31 lakh in Chennai. In the case of chocolates, Kerala consumed 40 lakh units annually, while the respective figures were 32 lakh for Mumbai, 16 lakh for Delhi, 12 lakh for Chennai and 10 lakh for Bangalore. These figures were indicative of how, over the years, Kerala has proved a to be marketer's delight. While the population is rural by definition, the consumption pattern revealed that the State is an urbanised metro for purposes of marketing. For the food-processing sector, this huge market is merely waiting to be tapped. Mr Ajay Kumar also said that value addition, packaging and branding are the three important issues that the industry should be concerned with in the near-term. "Brands will have a significant role to play in the domestic market, especially given the exposure to a large number of international brands thanks to the presence of a sizable non-resident population." For instance, banana chips, a traditional culinary delight from the State, can be developed as a product geographically indicated in origin to Kerala provided appropriate technology is developed to deal with the problem of rancidity and the short shelf-life. The State Government plans to come out with an action plan for promoting investments in the food processing sector. It has received enthusiastic response from industrialists and entrepreneurs for investments in the sector, Mr Kumar said.
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