The Hindu Business Line : Setting store by food processing

Industry & Economy - Foods & Food Processing
Agri-Biz & Commodities - Horticulture/Fruits & Vegetables
States - West Bengal
Setting store by food processing

Badal Sanyal

State Govt identifies the sector as a thrust area for development

THANKS TO ITS diverse agro-climatic zones, Bengal produces a rich variety of fruits and vegetables. -- A. Roy Chowdhury

The food processing industry in the country is on track to ensure profitability in the coming decades. The sector is expected to attract phenomenal investments of about Rs 1,40,000 crore in the next decade.

Changing lifestyle with traditional joint family systems giving way to `nuclear families' where husbands and wives are both working, the demand for `packaged and preserved' food products is rising.

Very soon, fast foods, ready meals, snacks and processed foodstuff will hold the centre stage.

Opportunities

West Bengal has identified food processing as one of the thrust areas for the State's future industrial development.

In fact, West Bengal comprising six agro-climatic zones offers extensive and diversified variety of environs for the development of temperate, sub-tropical and tropical horticulture produce and therefore have the capacity to cater the market with various items round the seasons. Although horticultural cultivation has a long history in West Bengal, the establishment of a research station on a small 25-acre farm at Krishnanagar, Nadia, during 1934, which now covers around 198.09 acres, marked the beginning of horticultural activities in the State.

Horticulture, thereafter, grew up gradually through research and development programmes over the years.

More potential

The State has achieved significant growth in agricultural production over the past decade. It is now among the country's top two producers in a wide variety of agricultural produce and has attained self-sufficiency in most key crops. This self-sufficiency has resulted in reasonable amount of marketable surplus for most of the key crops. Moreover, the State has tremendous possibilities in medicinal plants and herbs. Out of the 145 different medicinal plants grown in the State, the State Medicinal Plant Board has stressed upon the cultivation of 32 medicinal plants, which are in demand in both the domestic and international market.

The State has significant production levels in some of the key crops on an all-India level. It is the largest producer of rice and the second largest producer of potato in the country. The average yield of potato in the State is not only higher than the India level but also higher than the world average yield. Grains produced in the State include cereals such as rice, wheat, maize, barley and a variety of pulses such as tur, masur, mung, gram and khesari. In rice, the State produces wide range of varieties, both scented and non-scented. It is also a significant producer of oilseeds where the main varieties are groundnut, linseed, mesta, nigerseed, rapeseed, mustard, sesamum and soyabean.

Meanwhile five agri export zones across the State for pineapple, lychee, mango, potato and vegetables where the investors could enjoy both Central and State Government incentives and benefits.

Major centre

The State is also a major centre for vegetable production, with good off-season production of temperate types. There is a lot of scope for fresh vegetable exports. There must be emphasis on premium quality and high yield to replace high priced supplies from Australia and the US.

The State has a good potential for exporting flowers such as gladioli, gerbera, tuberose, rose and orchids to countries such as the Netherlands, West Asia , the UK and Japan. Japan is a large consumption market for flowers. It is one of the largest importers of orchids. Other than export market, flowers can also be sold in the local and interstate markets.

The State also grows different varieties of medicinal plants and herbs, which have significant demand in the country as well as abroad. The World Health Organisation has predicted that by 2020, the total transaction in medicinal plants would amount to $3 trillion per year and by 2050, the market for medicinal plants and its derivatives would be valued at $5 trillion. The State also grows various aromatic plants and the State Medicinal Plant Board encourages farmers to cultivate different aromatic plants.

Natural advantage

West Bengal is a significant producer of many horticulture and agriculture items, which gives it a natural advantage to invest in fruit and vegetable processing, spices and grain processing industries. Besides this, the State also produces other food products such as fish, meat and poultry products in abundance, which also have enormous processing prospects.

Some of the leading investments in the food processing industry in the State:

Companies such as Dabur, Frito-Lay, Venkateshwara Hatcheries and Nestle have initiated projects in the food-processing sector or have started marketing products manufactured in the State.

* Frito-Lay India has set up a unit for manufacturing potato chips with a projected investment of around Rs 70 crore at Sankrail Food Park, Howrah. * Potato King Pvt Ltd has a world-class plant at Howrah for production of potato powder. Machinery was imported from Florigo, Holland and the US. The total production of the plant is fully automatic and the finished goods are untouched by hand. The company has cold storage facilities near the plant in order to supply raw materials at desired and regulated temperatures when there is no availability of fresh, raw potatoes. The company is currently going for further expansion and setting up another unit.

* Dabur Pvt Ltd has set up a fruit processing plant at Siliguri at an estimated cost of Rs 20 crore. The unit was inaugurated on August 16, 2004 by the Chief Minister , Mr Buddhadeb Bhattacharjee.

* Saj Industries Pvt. Ltd (Bisk Farm), already a leading player in biscuit manufacturing, is going for manufacturing Maggi Noodles for `Nestle' in their Uluberia factory.

* LMJ Group (Golden Trading Star Export House) has started exporting Golden Grain of rice, tea, coffee, wheat, sugar, spices, beans and pulses under the brand name of `Prime'.

* Bengal Nestor having a milk-processing unit in the State has started producing `Dahi' (curd) under the brand name of `Nestle'.

* Sukhjit Starch Industries (unit of The Sukhjit Starch & Chemicals Ltd) has invested Rs 14 crore for manufacturing maize starch, liquid glucose and its derivatives at Narayanpur Industrial Estate, Maldah, West Bengal.

* Pataka Food Products Pvt Ltd plans to set up a modern fruit and vegetable processing unit at Jangipur, Murshidabad. The company has already purchased about 50 acres and civil construction work is about to commence.

* Keventor Biotech Pvt Ltd signed a MoU with the Department of Food Processing Industries & Horticulture for setting up a unit for exporting fresh and frozen green vegetables. The unit has already come up near Barasat.

* Elque & Co had also signed a MoU with the Department of Food Processing Industries and Horticulture for exporting frozen vegetables. They have set up their unit at North 24-Parganas with an investment of around Rs 5 crore.

The agro and food processing industries sector is one of the largest in terms of production, consumption, export and growth prospects. This sector ranks fifth in the country in size, employs over 1.6 million workers (20 per cent of the nation's labour force) and accounts for 15.19 per cent of the total industry output with 5.5 per cent of the GDP. The country's growing domestic demand for value-added processed foods and its self-sufficiency in supply will help in the growth of this sector faster.

Food processing industry

The State is a leading producer of many horticulture and agriculture items. It is also a significant producer of freshwater fish, shrimp, eggs and meat. Good investment opportunities exist in the areas of food processing industries, the important ones being fruit and vegetable processing, meat, fish and poultry processing, confectionaries, beverages, fast foods and milk products. According to FAIDA report of McKinsey, West Bengal is one of the three leading States in India in the food and agro-processing sector.

Export market for shrimps and prawns have been growing exponentially, particularly in the Japanese, the US and European markets. The State enjoys second position in cattle and poultry population and production leadership across several items such as duck meat, and total meat production including poultry.

The State is considered to be one of the most attractive poultry markets in India accounting for 13 per cent of the country's consumption. It is the highest per capita consumer of eggs and a significant consumer of poultry meat. The State also consumes significant amount of sheep and goat meat. All these above features identify the potentials for investing in poultry and meat processing, which has both domestic and international market demand.