Prosperous Future for Food Processing Sector

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THE union minister of state for food processing industries Mr Subodh Kant Sahay who represents Ranchi in Zharkhand has given a new shape and direction to his ministry. Known for his dynamism, progressive outlook and quick decision-making style, the farmer and industries-friendly minister has generously bestowed on Goa a range of goodies, which were unheard of in recent history.Just short of special status, he is prepared to declare the whole state as a ‘mega food park’. Goa can get upto Rs 50 crore for a food park of international standards. A world-class food analysis laboratory could be established. Branded food streets would make South and North Goa internationally famous food joints. By ensuring participation of local educated unemployed youth, self help groups and unorganised food processing sector, the idea of ‘food streets’ can take off. Implementation of such ideas needs a practical and realistic action plan with specific timetable. If the state government plays its’ role sincerely, then the local food processing industry can open thousands of new employment opportunities. It would also attract tremendous investment in several areas of primary, secondary and tertiary processing.

Now the directorate of industries, trade and commerce has to seize the initiative and establish a special cell for promoting food-processing industries. This cell needs to maintain liaison with Goa Chamber of Commerce and Industries, Goa State Industries Association, investors, training institutions and food technologists. The CM needs to appoint a high-powered state level committee to promote food-processing industries. Goa can follow the model of Maharashtra, Tamil Nadu and Kerala in the food-processing sector. Goa has advantage of an excellent beverages industry. There is ample scope for fruit and vegetable processing. Goa could be a food processor’s paradise because there are no taboos here regarding eating and drinking. Besides Goa combines the best of the culinary streams of the West and the East.

The soil and climate of Goa is excellent for a horticultural revolution. All types of tropical fruits can be grown here. High tech horticulture makes it possible to grow exotic vegetables. Goa can exploit the natural strength in cashew and coconut processing. Twenty different types of spices (masalas) are made in Goa. There are hundreds of products made in traditional sector from mango, jackfruit and kokum. In the bakery and confectionary sector, Goa has unique advantage of a five centuries old culture, which just needs new inputs of knowledge, capital and technology to launch a ‘made in Goa’ brand of items.

Although in the unorganised and traditional sector people do some kind of primary and secondary processing, the economies of scale are too low to make any impact on the booming market. Therefore Goa needs to focus on two fronts – boosting the traditional sector of food preservation and processing and welcome new investments in value added food processing with preference for local produce. Goa is today a net importer of essential food items – cereals, lentils, milk, meat, eggs, fish, fruits and vegetables. The small size of the state and the dwindling number of farmers would not help in achieving ‘self reliance’ in production and supply of these items.

So Goa needs to select a basket of premium fruits, vegetables, fish, shellfish, mushrooms which other states find difficult to produce on a surplus scale. Just five thousand hectares of additional land under premium local varieties of mango would create an equal number of jobs over a period of ten years. The world’s best breadfruits –neerphanas are produced in Goa. In fact, Canadian anthropologist Dr Janet Rubinoff during her visits to Goa used to praise the local breadfruit preparations as ‘heavenly’. Why are Goans are hesitant to generate wealth from this breadfruit? Why we can’t have an aggressive strategy to promote local food products? Goa’s breadfruit products would have a readymade market in Europe and South East Asia. But where are dedicated commercial plantations of breadfruits? Or for that matter Kokum or the most pungent ‘tarvoti mirsang’?

Most of the fruit orchards except bananas and pineapples were planted as a hobby by the owners without any consideration of surplus production for processing. So the focus has to be on backward integration of the food processing industries. It is unfortunate that no progress was achieved by the state government after the Confederation of Indian food trade and industry submitted a report in May 1998 on ‘Goa food park’. Compiled by Mr Vijay Sardana, secretary, CIFTI and sponsored by GIDC, it was envisaged to establish a food park at Keri-Bhutkhamb at the cost of Rs 23 crore. A food technology and management center was recommended. The site of the food park shifted to Quitol-Quepem, a bauxite rich barren plateau in 2005-06 when Mr Chandrakant Kavalekar took over as chairman of GIDC.

Immediately controversies erupted over the food park proposal because people were concerned about real estate development and SEZ instead of promotion of food processing industries. The Quitol food park proposal could have been successful if farmers’ cooperatives were to be involved. The Goa Bagayatadar sanghatana is the largest co-operative marketing forum of the horticulturists in the state. They need to be roped in by the government for ensuring the success of the food park venture. If the state government gives a boost to food processing industries, then within five years the problem of rural educated unemployment can be solved.

The tourism based food market in Goa has already crossed Rs 1000 crore annually. The average urban consumer is spending heavily on bottled drinks, juices, ready-to-cook foods, bakery and confectionary products etc. Goa has not yet looked at export promotion opportunities in niche markets such as UAE, Japan, Korea, Australia, EU countries, Brazil, Mexico and Argentina. Goan exports need not be limited to only processed cashew nuts, feni, wines, pickles, sausages and seafood. There is ample scope for organically grown fresh and processed products, branded foods, health foods, convenience foods, nutraceuticals.

Ten years ago Goa could not have thought about exporting button mushrooms to other states. But a die hard local entrepreneur with tremendous knowledge of food processing industry – Dr Sangam Kurade showed to the world that nothing is impossible in Goa when he established Zuari foods and farms – a company which today produces and markets about 600 metric tones of the tastiest and high quality button mushrooms. The Goa government Goa needs to plan an intelligent and intellectually satisfying practical strategy based on market trends, demand-supply scenarios and the inherent strengths of Goa in food processing sector to create the necessary mechanisms, infrastructure, facilities and services for tapping the local potential. A grand food processing industries fair during the tourist season may help galvanise all the stakeholders in this sector and pave the way for a prosperous future in food processing sector. The people of Goa need to positively welcome Mr Sahay’s generosity.