Kerala's traditional snacks industry, dominated by banana and tapioca chips, is losing market share to the invasion by outside varieties, according to Mr Alex Thomas, Managing Director, Tierra Food India Pvt Ltd.
Multinational as well as large Indian companies have lured customers to the potato chips and corn-based extruded snacks sold by them, he said here on Thursday.
Banana and tapioca are two major crops cultivated in Kerala by small and medium farmers, and a fair share of the produce earlier went towards chips production. Owing to falling demand, the produce is now largely consumed as fresh fruit, which is subject to volatile prices compared to the fair and consistent prices fetched by the processed product.
Missing ‘cool' factor
Increasingly restricted to festivals such as Onam and other functions such as marriages, potato and tapioca chips are no longer seen as ‘cool' by the younger generation, which prefers the potato chips or extruded snacks available in small and trendy packages, he said.
The market for banana and tapioca chips in Kerala is valued at Rs 600 crore and Rs 150 crore, respectively. While demand was growing outside Kerala and in West Asia, the decline in the State called for corrective steps including encouraging new players in the organised sector, enhancing research and development to innovate new products, creating brands and building a cost-effective model to increase distribution and reach, Mr Thomas said. The industry should also seek government support for branded traditional food products to make them competitive, he added.
Tierra Food to open new unit
Mr Thomas said his company will open a new unit at the KINFRA park, Adoor, for the manufacture of banana and tapioca processed foods.
Supported by the Kerala State Industrial Development Corporation (KSIDC), the project will begin its trial run on February 20. Set up at a cost of Rs 15 crore, the unit can produce six tonnes of chips a day. The products will be available in attractive flavours and trendy packs.
Mr Thomas said the company would also associate with government initiatives such as the State Horticulture Mission and the Vegetable and Fruit Promotion Council for cultivating and procuring the right produce for chips manufacture. The raw material would be sourced from identified farmer groups, which will be trained to harvest at the right time.