An
Introduction
The agro industry is regarded as an extended arm of agriculture. The
development of the agro industry can help stabilise and make agriculture
more lucrative and create employment opportunities both at the production and
marketing stages. The broad-based development of the agro-products industry
will improve both the social and physical infrastructure of India. Since it
would cause diversification and commercialization of agriculture, it will
thus enhance the incomes of farmers and create food surpluses.
The agro-industry mainly comprises of the post-harvest activities of
processing and preserving agricultural products for intermediate or final
consumption. It is a well-recognized fact across the world, particularly in
the context of industrial development, that the importance of
agro-industries is relative to agriculture increases as economies develop.
It should be emphasized that ‘food’ is not just produce. Food also
encompasses a wide variety of processed products. It is in this sense that
the agro-industry is an important and vital part of the manufacturing
sector in developing countries and the means for building industrial
capacities.
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The
agro Industry is broadly categorised in the following types:
(i) Village Industries owned and run by rural households with very little
capital investment and a high level of manual labour; products include
pickles, papad, etc.
(ii) Small scale industry characterized by medium investment and
semi-automation; products include edible oil, rice mills, etc.
(iii) Large scale industry involving large investment and a high level of
automation; products include sugar, jute, cotton mills, etc.
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The
development of agro-based industries commenced during pre-independence
days. Cotton mills, sugar mills, jute mills were fostered in the
corporate sector. During the post-Independence days, with a view to
rendering more employment and using local resources, small scale and
village industries were favored.
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The
increasing environmental concerns will give further stimulus to agro based
industries. Jute and cotton bags, which have begun to be replaced by
plastic bags, have made a comeback. It is the right time to engage in mass
production of low cost jute/cotton bags to replace plastic bags.
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The
agro industry helps in processing agricultural products such as field
crops, tree crops, livestock and fisheries and converting them to edible
and other usable forms. The private sector is yet to actualize the full
potential of the agro industry. The global market is mammoth for sugar,
coffee, tea and processed foods such as sauce, jelly, honey, etc. The
market for processed meat, spices and fruits is equally gigantic. Only with
mass production coupled with modern technology and intensive marketing can
the domestic market as well as the export market be exploited to the
fullest extent. It is therefore imperative that food manufacturers
understand changing consumer preferences, technology,With modernization,
innovation and incorporation of latest trends and
technology in the entire food chain as well as agro-production, the
total
production capacity of agro products in India and the world is likely
to
double by the next decade.
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India is the second largest producer of food in the world. Whether it is
canned food, processed food, food grains, dairy products, frozen food,
fish, meat, poultry, the Indian agro industry has a huge potential, the
significance and growth of which will never cease.
Sea fishing, aqua culture, milk and milk products, meat and poultry are
some of the agro sectors that have shown marked growth over the years.
linkages between members of the food supply chains and prevailing policies
and business environments to take advantage of the global market.
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Processed
Food Segment
The processing level of the agro industry may be at the primary, secondary
or tertiary stage. In the case of hides and skins, India exports largely
semi-processed items whereas in coffee/tea, the exports are mostly in
secondary stage by way of fully processed bulk shipments without
branding/packing. Exports at the tertiary stage mean branding and packaging
the product that are ready for use by the consumer.
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A few years ago, companies
struggled to sell packaged foods. But now it is much easier to break into
the Indian market because of a younger population, higher incomes, new
technologies and a growing middle class, estimated at 50 million
households. An average Indian spends around 53 per cent of his/her income
on food. The domestic market for processed foods is not only huge but is
growing fast in tandem with the economy. It is estimated to be worth $90
billion. Processed Food Manufacturing companies are required to be
persistent and must adapt products to the Indian cultural
preferences.
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Many
big companies like ITC, HLL, Nestle entered the Indian market a long time
ago and have made a deep penetration in the market. From these success
stories we can learn some lessons in order to capture the higher end of the
local market and get a fair share of the export market. The model is
structured around the following:-
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* Large scale investment and adoption of the latest technologies
* Intensive marketing efforts
* Perhaps, a foreign tie-up can be beneficial
* Brand name.
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The
levels of processing and manufacturing can be classified into three groups,
namely manual, mechanical and chemical or a combination thereof. In
choosing the process, the main considerations are the nature of the raw
materials, technology of processing, and packing.
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Other
Segments
Dairy product is another area where there is enormous potential. No doubt
the country has made tremendous strides in the last 20 years in
production and processing of milk and milk products. But the fact remains
that only 15 per cent of all the milk produced is processed. Today, a
large number of people suffer from diabetic or cardiac ailments and
availability of fat free milk, fat free curd and sugar free food is poor.
A simple product like soya milk is not produced in adequate quantity.
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Fish
and shrimp have good export potential but there is an immense lack of
cold storage and modern processing facilities. For instance fish
production is around six million tonnes a year and the frozen storage
capacity spread over 500 units is only one lakh tonnes.
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Another
area is herbal medicine. It is being increasingly realized the world over
that herbal drugs do not have any side effects. India has a good number of
tried and tested herbal products in use and what is required is rigorous
quality control, proper packaging and a brand name.
The government and modern retailers are addressing these issues with new
laws on packaging and labeling as well as greater investment in the supply
chain.
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The
Progress Ahead*
With modernization, innovation and incorporation of latest trends and
technology in the entire food chain as well as agro-production, the total
production capacity of agro products in India and the world is likely to
double by the next decade.
India is the second largest producer of food in the world. Whether it is
canned food, processed food,
food grains, dairy products, frozen food, fish, meat, poultry, the Indian
agro industry has a huge potential, the significance and growth of which
will never cease.
Sea fishing, aqua culture, milk and milk products, meat and poultry are
some of the agro sectors that have shown marked growth over the years.
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