INTRODUCTION

Food processing sector is indispensable for the overall development of an economy as it provides a vital linkage and synergy between the agriculture and industry. It helps to diversify and commercialize farming; enhance income of farmers; create markets for export of agro foods as well as generate greater employment opportunities. Through the presence of such industries, a wider range of food products could be sold and distributed to the distant locations. The term food processing is mainly defined as a process of value addition to the agricultural or horticultural produce by various methods like grading, sorting and packaging. In other words, it is a techni!ue of manufacturing and preserving food substances in an effective manner with a view to enhance their shelf life; improve !uality as well as make them functionally more useful. It covers spectrum of products from sub" sectors comprising agriculture, horticulture, plantation, animal husbandry and fisheries. Food processing industry is one of the largest industry in India and is ranked #th in terms of production, consumption and export. $arlier, food processing was largely confined to the food preservation, packaging and transportation, which mainly involved salting, curdling, drying, pickling, etc. %owever, over the years, with emerging new markets and technologies, the sector has widened its scope. It has started producing many new items like ready to eat food, beverages, processed and frozen fruit and vegetable products, marine and meat products, etc. It also includes establishment of post harvest infrastructure for processing of various food in terms like cold storage facilities, food parks, packaging centers, value added centers, irradiation facilities and modernized abattoir.

The food processing sector comprises of two segments &rimary processed food and 'alue added food. &rimary segment comprises of packaged fruit and vegetables, milk, flour, rice, spices etc and constitutes around ()* in value terms of the processed foods. 'alue added segment includes processed fruits and vegetables, +uices, +am , +elly etc and holds around -. * share in the total processed food. In an emerging country like India, where growth with e!uity is a primary policy thrust, the optimum development of the food processing sector will contribute significantly in tackling several developmental concerns such as disguised unemployment in agriculture, rural poverty, food security, food inflation, improved nutrition, prevention of wastage of food etc. /y serving as a bridge between agriculture and manufacturing and by dealing with a basic need of all Indian citizens the assured supply of healthy and affordable food at all locations in the country, this sector has the potential to be a ma+or driver in India0s growth in the coming years. In fact the food processing sector has been growing faster than the agriculture sector .The food processing industry includes a diverse group of companies involved in the processing of products like fish, meat, milk, crops and water. It includes millions of 1mall , 2edium $nterprises 312$s4 worldwide and also some of the largest companies in the world. 2any of these companies deliver products directly to consumers, while others specialize in /usiness to"/usiness activities 3ingredients, commodity markets4. 1ome companies directly participate in all areas of food production, from farming activities through to final production and retail. 5thers are concentrated more at the top end of the production chain or buy through commodity markets. In fact, Food processing is one of the world0s largest industries from the perspective of the number of companies involved in the sector, as well as in terms of its total economic value .

The sector comprises of the following ma+or areas

Fruits & Vegetables /everages, 6uices, 7oncentrates, &ulps, 1lices, Frozen , 8ehydrated products, 9ine &otato 9afers:7hips etc. Fisheries Frozen , 7anned products mainly in fresh form Meat & Poultry Frozen and packed mainly in fresh form, $gg &owder Milk & Dairy 9hole 2ilk &owder, 1kimmed milk powder, 7ondensed milk, Ice cream, /utter and ;hee Grain and Cereals Flour, /akeries, /iscuits, 1tarch ;lucose, 7ornflakes, 2alted Foods, 'ermicelli, &asta Foods, /eer and 2alt extracts, ;rain based <lcohol. Consumer Industry 7hocolates, 7onfectionery, 1oft:<erated /everages:8rinks Plantation Tea, coffee, cashew, cocoa, coconut e

HISTO ! OF FOOD P OC"SSI#G

Food processing dates back to the prehistoric ages when crude processing incorporated slaughtering, fermenting, sun drying, preserving with salt, and various types of cooking 3such as roasting, smoking, steaming, and oven baking4. 1alt preservation was especially common for foods that constituted warrior and sailors diets, until the introduction of canning methods. $vidence for the existence of these methods can be found in the writings of the ancient ;reek, 7haldean, $gyptian and =oman civilizations as well as archaeological evidence from $urope, >orth and 1outh <merica and <sia. These tried and tested processing techni!ues remained essentially the same until the advent of the industrial revolution. $xamples of ready meals also exist from preindustrial revolution times such as the 7ornish pastyand %aggis. 8uring ancient times and today these are considered processing foods. Food processing has also helped create !uick, nutritious meals to give to busy families. 2odern food processing technology in the ?@th and )Ath century was largely developed to serve military needs. In ?.A@ >icolas <ppert invented a vacuum bottling techni!ue that would supply food for French troops, and this contributed to the development of tinning and then canning by &eter 8urand in ?.?A. <lthough initially expensive and somewhat hazardous due to the lead used in cans, canned goods would later become a staple around the world. &asteurization, discovered by Bouis &asteurin ?.(), was a significant advance in ensuring the micro biological safety of food. In the )Ath century, 9orld 9ar II, thes pace race and the rising consumer society in developed countries 3including the Cnited 1tates4 contributed to the growth of food processing with such advances as spray drying, +uice concentrates, freeze drying and the introduction of artificial sweeteners, colouring agents, and preservatives such as sodium benzoate. In the late )Ath century products such as dried instant soups, reconstituted fruits and +uices, and self cooking meals such as 2=$ food ration were developed.

In 9estern $urope and >orth <merica, the second half of the )Ath century witnessed a rise in the pursuit of convenience. Food processing companies marketed their products especially towards middle class working wives and mothers. Frozen foods 3often credited to 7larence /irdseye4 found their success in sales of +uice concentrates and DT' dinnersD.&rocessors utilised the perceived value of time to appeal to the postwar population, and this same appeal contributes to the success of convenience foods today.

History o$ Food la%s

Food laws were among the earliest of enactments known to man. ;overnments over many centuries have endeavored to provide for the safety and wholesomeness of man0s food by legal provisions and appropriate punitive action. 5ver the years also, rude forms of fraud, such as adding worthless substances to food or extracting valuable constituents from it, have been followed by sophisticated methods of adulteration more difficult to detect. The birth of modern chemistry in the early nineteenth century made possible the production of materials possessing properties similar to normal foods which, when fraudulently used, did not readily attract the attention of the unsuspecting purchaser. Bater, better analytical methods were used in food control work to detect adulterants. 9hen scientists demonstrated that some adulterants were dangerous to health, the aroused public demanded laws that would both protect their health and prevent fraud. Food Baws in one form or another, such as religious tenets or prohibitions, were inherent in all ancient civilizations and have come down to us from early times. It was not until the late nineteenth and early twentieth century with the urbanization of societies and the depopulation of rural areas that food laws, as understood today, were prepared. This process was hastened by pressure that developed as the public rebelled against the generally unhygienic conditions of the period. 1ince the end of 9orld 9ar II, there have been ma+or changes in the food industry, and this development continues today; at the same time, our knowledge of the risks, actual and potential, has considerably increased. =eorientation and further consolidation of food laws have therefore become necessary to protect the health of the consumer from the many new risks to which he has become exposed and over which he has little personal control.

FOOD P OC"SSI#G I#D&ST ! I# I#DI' The Indian food processing industry stands at E?-# billion and is estimated to grow with < 7<;= of ?A per cent to reach E)AA billion by )A?#. The food processing industry contributed F* to India0s ;8&. The industry employs around ?- million workers directly and about -# million indirectly . The industry is segmented into sectors namely, milk and allied products 3dairy4, meat and poultry, seafood, bakery and confectionery, fruit and vegetables, grain, pulses and oilseeds 3staple4 products alcoholic and non"alcoholic products 3beverages4, and packed foods. The classification is not distinct as many processed products overlap different segments. India ranks >o. ? in the world in production of 2ilk 3Fresh, whole, buffalo4, &ulses, ;inger, 7hick &eas, /ananas ;uavas, &apayas and 2angoes. Further, India ranks >o. ) in the world in production of =ic e, 9heat, &otatoes, ;arlic, 7ashew >uts, ;roundnuts, 8ry 5nion, ;reen &eas, &umpkins, ;ourds, and cauliflowers. 9ith the huge production base India can easily become the leading food supplier to the world and at the same time serving its vast growing domestic market with over a billion people. Investments in the registered food processing units have been growing in the recent years. In )AAF"A. the fixed capital of registered food processing units have increased by ?..@-* over the previous year. Food processing industry in India is increasingly seen as a potential source for driving rural economy as it brings synergy between industry and agriculture. < developed food processing industry is expected to lead increase in farm gate prices translating into increased rural incomes, reduce wastages, ensure value addition, promote crop diversification, generate employment opportunities as well as export earnings. 9ith such a large and diversified production base coupled with low manpower cost and modern technology, the Indian food processing sector is poised for growth, if the advantages are leveraged optimally.The growth is driven by the fact that the central government has given a priority status to all agro"processing businesses. ;overnment incentives in the field of mega food parks, cold chain and exports benefits are also playing an important role in promoting food processing. The ma+or challenges are investments at different points of the supply and value chain, proper research, farm

and lab connectivity, upgradetion of technology, increase in farm holding, skill and manpower training, backend and front"end integration and cold chain integration. The opportunities in the food processing industry are vast. %owever, there is a need to improve technology and productivity to be competitive globally. <s the economy grows, the food processing industry will offer bigger opportunities to the new as well as the existing players. India has the second largest arable land of ?(? million hectares and has the highest acreage under irrigation. >ext to 7hina, India ranks second largest food producer in the world and has the potential to immerge the biggest with its food and agricultural sector. India accounts for less than ?.#* of international food trade despite being one of the world0s ma+or food producers, which indicates huge potential for both investors and exporters.

'd(antage o$ India
India is one of the largest food producers in the world. India has diverse agro"climatic conditions and has a large and diverse raw material base suitable for food processing companies. India is looking for investment in infrastructure, packaging and marketing. India has huge scientific and research talent pool. 9ell developed infrastructure and distribution network. =apid urbanization, increased literacy, changing life style, increased number of women in workforce, rising per capita income leading to rapid growth and new opportunities in food and beverages sector. #A per cent of household expenditure by Indians is on food items.

)ey gro%th dri(ers o$ Food Pro*essing Se*tor in India Increasing spending on health and nutritional foods. Increasing number of nuclear families and working women 7hanging lifestyle Functional foods, fresh or processed foods 5rganized retail and private label penetration 7hanging demographics and rising disposable incomes Gey opportunities in Food &rocessing 1ector &rocessable varieties of crop 7ontract farming Investments in infrastructure through &ublic &rivate partnership 3&&& 2ega Food parks Bogistics and cold chain infrastructure Food safety 2anagement 1ystems 2achinery and packaging

Challenges $a*ed by the industry

%igh level of wastage of agricultural produces is primarily on account of the inherent disadvantages faced by the sector. This sector is characterized by preponderance of small farmers, small scale , tiny processors, outdated technology, poor infrastructure and a maze of middle men. Therefore, this sector needs support in terms of creation and strengthening of infrastructure which individual farmers and processors will not be in a position to create and sustain. Further, there is also a need for strengthening =,8 activities in food processing sector for innovation of technology which suits local needs, popularization of appropriate technology, skill development and creation of <> institutional framework supportive of the industry.

PO++&TIO# F OM FOOD P OC"SSI#G F'CTO I"S

The food industry is now facing increasing pressure to ensure that their company s activities are environmentally sensitive, but there is also increased internal pressure to maintain or increase profitability in the face of fierce competition. The food"processing industry has special concerns about the health and safety of the consumer. Gey resources used by the food"processing industry include the water, raw materials and energy. Traditionally, the food" processing industry has been a large water user. 9ater is used as an ingredient, an initial and intermediate cleaning source, an efficient transportation conveyor of raw materials, and the principal agent used in sanitizing plant machinery and areas. <lthough water use will always be a part of the food"processing industry, it has become the principal target for pollution prevention, source reduction practices. The key environmental issues for the food industry include the followingH

,aste%ater- &rimary issues of concern are biochemical oxygen demand 3/584; total
suspended solids 3T114; excessive nutrient loading, namely nitrogen and phosphorus compounds; pathogenic organisms, which are a result of animal processing; and residual chlorine and pesticide levels. Solid ,aste- &rimary issues of concern include both organic and packaging waste. 5rganic waste, that is, the rinds, seeds, skin, and bones from raw materials, results from processing operations. Inorganic wastes typically include excessive packaging items that are, plastic, glass, and metal. 5rganic wastes are finding ever"increasing markets for resale, and companies are slowly switching to more biodegradable and recyclable products for packaging. $xcessive packaging has been reduced and recyclable products such as aluminum, glass, and high"density polyethylene 3%8&$4 are being used where applicable. The food processing factories should follow the ma+or technological innovations in the industry, including those in clean technologies and processes.

7lean technologies includeH <. 'd(an*ed ,aste%ater Treatment Pra*ti*es- Cse of wastewater technologies beyond conventional secondary treatment. /. Im.ro(ed Pa*kaging- Cse of less excessive and more environmentally friendly packaging products. 7. Im.ro(ed Sensors and Pro*ess Control- Cse of advanced techni!ues to control specific portions of the manufacturing process to reduce wastes and increase productivity. 8. Food Irradiation- Cse of radiation to kill pathogenic microorganisms. $. ,ater and ,aste%ater edu*tion /Closed +oo.01ero "mission Systems2=eduction or total elimination of effluent from the manufacturing process

Fa*tors '$$e*ting Food Pro*essing Industry in India

The vision ")A?# prepared by the 2inistry of Food &rocessing Industries, ;overnment of India, envisages to increase processing level of perishables from ( to )A percent , increase value addition from )A to -I percent and increase share in global trade from ?.( percent to - percent, thus tripling the size of processing food industry by )A?#. 3=eport of the Task Force, )AA.4. %owever, before this can be achieved a number of constraints must be removed. In Table I, ma+or factors affecting beginning from production to distribution in the value chain are presented. These factors directly: indirectly affect the Indian processing industry

2a+or constraints for the growth of the Indian food processing industry include the absence of ade!uate infrastructure, particularly rural road connectivity, inade!uacy of information and marketing linkages, lack of electricity supply, and the absence of cold chain systems. The cold chain capacity caters to less than ?A percent of the produce and within that facilities are so rudi"mentary that over .A percent are only capable of handling potatoes. 2aintaining the standards of !uality is another ma+or constraint and there are two aspects to it. First, there is poor infrastructure for storing raw food materials. The two main types of storages J the %arehouses and the *old storages, lag in storage standards. The pests infest the grains sometimes due to lack of moni"toring, proper use of pesticides and proper ventilation. 1imilarly, the power outages result in suboptimal function of the cold storages and the !uality of food material in the cold storages becomes !uestionable. The second important aspect is having poor !uality standards and control methods for implementing the !uality standards for processing and packaging the processed foods. For example, vegetables may not be washed properly and processed into either 0ready to eat foodK or packaged as 0cut and ready to cookK vegetables. %igh costs and low availability of credit remain a problem because even within the priority sector, lending by banks for agriculture, food processing receives only I.# per cent of the ear marked credit. The regulatory framework preventing farmers from directly marketing their markets adds to cost and impairs produce, except through designated agricultural

flexibility. &ackaging is usually poor but its cost is high and become unbearable for small producers. <nother important constraint is the legal framework" currently; food laws span nine ministries, comprising ?- central orders alone. In addition, states have their own control orders.

Harm$ul Chemi*als in our "n(ironment

O(er the .ast *entury humans ha(e introdu*ed a large number o$ *hemi*al substan*es into the en(ironment- 1ome are the waste from industrial and agricultural processes. 1ome have been designed as structural materials and others have been designed to perform various functions such as healing the sick or killing pests and weeds. 5bviously some chemicals are useful but many are toxic and their harm to the environment and our health far outweighs their benefit to society. 9e need to manage the risks better by only using chemicals, which are safe. 7hemicals enter air as emissions and water as effluent. Industrial and motor vehicle emissions of nitrogen and sulphur oxides cause acid rain, which poisons fish and other a!uatic organisms in rivers and lakes and affects the ability of soil to support plants. 7arbon dioxide causes the greenhouse effect and climate change. 7hlorofluorocarbons 37F7s4 cause the destruction of ozone in the stratosphere and create the possibility of serious environmental damage from ultraviolet radiation. 7hemical fertilisers and nutrients run"off from farms and gardens cause the build up of toxic algae in rivers, making them uninhabitable to a!uatic organisms and unpleasant for humans. 1ome toxic chemicals find their way from landfill waste sites into our groundwater, rivers and oceans and induce genetic changes that compromise the ability of life to reproduce and survive. The impact of human activities on the environment is complex and affects a chain of interconnecting ecosystems. The extinction of species all along the chain may mean the loss of useful genetic material or life saving cancer drugs or safer alternatives to the dangerous chemicals in use at the moment.

,hat $a*tories should do to .re(ent .ollution Cse biodegradable products. 2ake your own cleaning agent using safe materials. 8ispose of chemical waste carefully. 8o not put them down the sink. /e wise with home maintenance and in the garden. 8o not burn plastics. <void all organic chemicals that have DchloroD as part of their names including wood preservatives, herbicides and insecticides. <void chlorine bleach 3sodium hypochlorite4 and products containing it. Cse oxygen bleach instead. Cse unbleached paper products.<void D&ermethrinD flea sprays for pets. <void products made of or packaged in polyvinyl chloride 3&'74. <void cling flim plastic wraps unless they are clearly identified as non"chlorinated plastic.To minimise your risk of dioxins accumulating in your body avoid all full"fat dairy products and fatty meats such as beef or pork. 9ash all fruits and vegetables to remove chlorophenol pesticide residue. <void grapes and raisins unless they are clearly labelled as organically grown. <void soaps, toothpaste and deodorants containing Dtriclosan,D a chlorophenol. 9e can reduce the dioxins if we stop producing &'7s and other chlorinated chemicals. If your local government sends its waste to an incinerator, re!uest that they stop burning plastics and introduce a comprehensive recycling service. 9rite to companies and ask them to use safe substitutes to chlorinated plastics. <sk your supermarket to sell Totally 7hlorine Free 3T7F4 products. 6oin or form a local environmental group campaigning against hazardous chemicals. &eople who work with cadmium should take care not to inhale cadmium" containing dust and should avoid carrying it home from work on their clothes, skin or hair. $at from a wide range of foods to prevent the risk of ingesting toxic levels of cadmium

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,'ST"

"D&CTIO#

TIPS

'#D

PO++&TIO#

P "V"#TIO# 'CTIVITI"S

7ommercial and institutional food"related facilities can save money and protect the environment by reducing waste and practicing pollution prevention. Facilities that may benefit from this information are restaurants, supermarkets, produce and concession stands, school cafeterias, hospitals, food processors, farmers, hotels, prisons, employee lunch rooms, parks and recreational facilities, and community events. 8iscretion should be used in determining the use of the contents of this document and compliance with local ordinances. 9hile there are many opportunities for reducing waste and preventing pollution, a few tried and true methods are presented here. Geep in mind that any waste or pollution created by your facility cuts into profits, reduces operation efficiency, may involve worker safety issues, and could re!uire regulatory involvement. &ollution prevention and waste reduction efforts can increase business profitability. <s you implement pollution prevention ideas, you and your employees will identify more ideas. Lour success is only limited by your willingness to try something different J and the payoff could be immense. =emember, participating in a pollution prevention program can create an improved public image for your business.

The Plan
o

$stablish a company"wide commitment to preventing pollution as part of doing business. 8evelop employee education programs on pollution prevention. $mployee participation is the key to success; make pollution prevention a way of life. $nsure that all employees understand the program. %ang eye"catching posters and other promotional material to stimulate interest in the program. Institute an incentive program, giving awards or

recognition to employees for their waste reduction:pollution prevention efforts.

o

$stablish a task force headed by an enthusiastic pollution prevention advocate. 8evelop a budget, making sure that needed resources will be available. $stablish a pollution prevention hierarchy for your company. Typically, source reduction is the highest priority, followed by reuse and recycling. 8esign a management strategy to reduce waste, prioritize waste reduction options, and then develop an implementation schedule. 8evelop goals with measurable ob+ectives. Identify when and where waste is generated.

o o

o o

"nergy and ,ater &se

7onduct an energy audit to help determine ways to conserve energy and cut energy expenditures. The following may reduce energy consumptionH install energy" efficient light bulbs; install motion"sensitive lights; turn off lights at the end of the evening; turn off machines not in use; install programmable, mercury"free thermostats; and replace outdated e!uipment and appliances with more energy"efficient models. 7onduct a water audit to determine if water use may be reduced and leaks minimized. =egularly check water faucets and other outlets to reduce the amount of water used at your facility. The following may reduce water consumptionH repair or replace leaky water faucets, turn off water faucets and hoses when not in use, install low"volume toilets, install low"flow faucets, and serve water to guests who re!uest it rather than as a standard service. Bimiting water service will also reduce the number of glasses that need to be washed.

To reduce costs of lawn care, water lightly and fre!uently to reduce the potential for disease and insect damage. 2ichigan grasses re!uire only A.# to ?.# inches of water per week. < ?#")A minute daily watering during dry weather is usually sufficient.

Solid ,aste

Identify and prioritize problem wastes; evaluate reduction potentials. Identify your target materials. Identify waste characteristics, including !uantities of each material and how they are handled and disposed. &rocure recycled and recyclable products instead of items composed of nonrecycled materials. 9ork with suppliers to reduce packaging, thereby reducing disposal costs. <sk suppliers to provide you with products that are packaged in materials such as recyclable or reusable paper, glass, steel, aluminum, or plastic. =eplace beverage bottles and cans. 2ost beer and soft drinks can be served on tap, reducing both the costs of buying beverages and disposing or recycling cans and bottles. Food service establishments that use disposable items such as napkins, utensils, placemats, cups, trays, and single"serving condiment packages can reduce waste volume by switching to reusable items. 1eparate newspaper, office paper, tin and bimetal cans, glass, plastics 3high"density polyethylene"%8&$, polyethylene terephthalate"&$T4, corrugated cardboard, wooden pallets, aluminum, kitchen grease, food waste, and other recyclables from solid waste and implement a recycling program. Cse color"coded collection bins in the kitchen and bar for easy identification.

7heck with container suppliers to determine if they participate in a recycle program for polystyrene. 7heck with your waste hauler and ask what types of recycling services are available. Book for haulers who are flexible and willing to work with you to design a recycling program based on your needs. <sk your waste hauler for advice about keeping recyclables and wet waste separate. =esearch the feasibility of investing in a mini"cardboard baler, can crusher, and glass pulverizer. This e!uipment will allow for efficient management of space and may increase the likelihood of favorable recycling service contracts. Bet your patrons know that you recycle. If your establishment is self" serve, post signs letting customers know that you are recycling and what they should do with their bottles and cans. $ither put out a bin for these items or have customers leave them on a designated counter for collection by your staff. /e sure that your grounds crew knows to keep yard waste separate from other waste so that the yard waste may be recycled as compost.

Ha3ardous ,aste

Institute a hazardous waste collection program. 2any commercial cleaning products contain hazardous materials such as caustics or strong acids. >ever pour hazardous wastes down the drain. >ever mix different wastes. If possible, consider using alternative materials. Book for Mnon" toxic,N Mnon"petroleum based,N Mfree of ammonia, phosphates, dye or perfume,N or Mreadily biodegradableN on the label. <void chlorinated compounds, petroleum distillates, phenols, and formaldehyde.

&hosphate is an a!uatic plant nutrient that can cause excessive growth of a!uatic algae and water !uality problems after the detergent is washed down the drain. <sk your supplier about the many phosphate"free, biodegradable detergents on the market. =efer to &art -@ of &ublic <ct I#? of ?@@I, as amended, for additional information regarding cleaning chemicals. Integrated &est 2anagement 3I&24 programs combine chemical, cultural, and biological practices into one program to manage pest populations. I&2 principles incorporate preventive practices, remedial practices, and economic thresholds, thus reducing the amount of chemicals used by applying pesticides only when necessary and at the minimum effective rate. Cse less" soluble, less"leachable, less"persistent, and less"toxic pesticides whenever possible. &ractice good housekeeping to reduce pest populations and the need for chemical controls. Geep doors shut when not in use; place weather stripping on doors; caulk and seal openings in walls; install or repair screens; install air curtains; keep vegetation, shrubs, and wood mulch at least one foot away from structures. 1tore food and waste in tightly sealed containers that are inaccessible to pests. Cse compost and:or mulching as an alternative to lawn fertilizers or use fertilizers sparingly. 5ver fertilizing can actually encourage certain insects and diseases. 1tore all fertilizer and pesticide containers safely to prevent spills, and dispose of the empty containers properly. >ever store these products with food products.

Food ,aste

Cse a Mfirst"in, first"outN inventory policy for raw materials to prevent them from exceeding their shelf life. =otate perishable stock at every delivery to minimize waste. 1trict inventory control is the most effective and cost efficient way to prevent usable materials from needlessly becoming waste. Improperly stored, labeled, or outdated food becomes waste. /uy in bulk to reduce container waste, but avoid buying too much of a product that might spoil. /uy locally to minimize transportation costs and to increase local economy. 1tore raw vegetables in appropriate reusable containers to prevent dehydration and spoilage. Food discard recovery methods include making donations, processing into animal feed, rendering, and composting. 8onate non"perishable and unspoiled perishable nutritious foods to food banks, soup kitchens, food pantries, charities, and shelters. Bocal and national programs fre!uently offer free pick"up and provide reusable containers to donors. Bocal charities, the 2ichigan Family Independence <gency, and local chapters of national charities can provide information on food donation. =ecover food discards as animal feed for operations such as hog farmers. Farmers may provide storage containers and free or low"cost pick"up service. 7offee grounds and foods with high salt content are not usually accepted as they can be harmful to livestock. 1tate veterinarians can provide information on diversion to animal feed. =ecycle or package for reuse any used cooking oil, grease, and meat fat. 1tore in tallow bins or sealed containers. 7ollect and send used grease to a renderer. /y avoiding disposal of kitchen grease down the drain, you will minimize clogging of pipes, use of

toxic chemicals used to clear drains, and unnecessary discharge to your sewer system resulting in wastewater treatment upsets. Bi!uefied fats and solid meat products can be used as raw materials in the rendering industry, which converts them into animal food, cosmetics, soap, and other products. Find an industry that will provide storage barrels and free pick" up service. Bocal chambers of commerce, county agricultural extension agencies, commercial food suppliers, or the telephone book 3under tallow or rendering companies4 can provide information on area rendering companies.

Inspect and clean grease traps and grease interceptors often enough to prevent clogs, spills, and overflows. >ever pour grease, oil, or large !uantities of oil li!uids such as sauces or salad dressings down a sink, floor drain, storm drain, or into a dumpster. Cse composting diversion to reduce your waste hauling and tipping costs. Book for a composting facility in your area that will take your food discards. 7omposting is the controlled, natural breakdown or degradation of organic material by microorganisms. 2ost organic materials are acceptable for composting, including egg shells, coffee grounds, paper, shredded brush, nonpesticide"treated grass clippings, fruit and vegetable scraps, garden waste, fireplace ashes, and leaves. Food scraps provide most of the nitrogen for composting. 5rganic materials that should not be composted include meat or bones; fatty foods such as cheese, oil and grease; diseased plants; plants treated with weed killer; and pet waste.

Storm%ater

8evelop a stormwater pollution prevention policy that is readily available for use by management, employees, and contractors. 2ake sure that all concerned are aware of your M8onKt pollute, drains to the surface waterN policy. Lou may be polluting the stormwater if you rinse washwater down a storm drain, spill materials or wastes in your parking lot without cleaning them up, or allow materials or wastes stored outside to leak. &revent these activities from occurring and stencil storm drains M8ump no waste"drains to riverN 3lake, stream, etc4. 8umpsters used for garbage should be protected from rainwater, and loading docks should be kept clean to avoid unwanted substances from entering storm drains. 1ome helpful hints for dumpster maintenance include keeping the dumpster lid closed to keep out rainwater, replacing damaged or missing lids as soon as possible, never placing li!uid waste or leaky garbage bags into a dumpster, keeping dumpsters or the dumpster enclosure locked to prevent illegal dumping, not hosing out the dumpster interior, applying absorbent over any fluids spilled in the dumpster, and sweeping up litter. Beaking dumpsters should be replaced by the dumpster leasing company. 1ome helpful hints for loading dock maintenance include keeping litter from accumulating around the dock by providing trash receptacles, sweeping up litter, and not hosing down the area.

GOV" #M"#T I#ITI'TIV"S FO S"CTO

TH" FOOD P OC"SSI#G

In order to ensure that the Food processing sector gets the stimulus it deserves, Ministry of Food Processing Industries (MOFPI) has been implementing a number of schemes for Infrastructure development, technology up-gradation & moderni ation, human resources development and !&"# $he follo%ing schemes are currently under implementation& A. Scheme for Infrastructure Development One of the ma'or factors hindering the progress of agro(food processing in the country is inade)uate infrastructure# In order to address the problems of infrastructural constraints in the food-processing sector, the Ministry of Food Processing Industries has been implementing a *cheme for Infrastructure "evelopment since ++th Plan %hich includes the follo%ing components& o Mega Food Par, - $he *cheme of Mega Food Par,s (MFP) aims at providing a mechanism to bring together farmers, processors and retailers and lin, agricultural production to the mar,et so as to ensure ma-imi ing value addition, minimi ing %astages, increasing farmers. income and creating employment opportunities in rural areas# Mega Food Par, envisages a %elldefined chain# o /old chain, 0alue addition and preservation infrastructure 1 $he scheme %as launched during ++th Plan to provide integrated and complete cold chain and preservation infrastructure facilities, %ithout any brea,, from the farm gate to the consumer# 2nder the scheme the Ministry of Food Processing Industries agri(horticultural-processing one containing state-of-the-art processing facilities %ith support infrastructure and %ell-established supply

e-tends financial assistance to pro'ect proposals received from public( private organi ations for integrated cold chain infrastructure development# Pre-cooling facilities at production sites, reefer vans, and mobile cooling units has been covered under the Integrated /old /hain pro'ects# /overs 3orticulture produces apart from non-horticultural products such as meat &, fish, dairy etc# 0alue addition /enters including processing( multi-line processing( collection centers, etc# for horticulture including organic produce, marine, dairy, meat and poultry, etc# are included under the scheme o Moderni ation of 4battoirs - 3ygienic and scientific slaughtering and

optimum utili ation of by-products are the most important issues in the Indian meat industry# 5uality and hygiene levels in the %et mar,et are lo% due to imperfect bleeding, primitive and crude slaughtering and defeathering techni)ues, lac, of infrastructure facilities li,e %ater, electricity and facilities for handing carcass( flaying, cross contamination in slaughter and improper handling during carriage# 4ll these result in tremendous %aste of meat, contamination( deterioration of meat and also avoidable cruelty to the animals during the %hole process# $he )ualitative and )uantitative capacities of the abattoirs need to be upgraded and these are re)uired to be lin,ed %ith commercial processing of meat, both for domestic consumption and e-ports besides discouraging unauthori ed slaughtering# 4ccordingly, a plan scheme for establishing ne% abattoirs & moderni ation of the old abattoirs %as started in 6778#

B .S*heme $or Te*hnology &.gradation4 "stablishment and

Modernisation o$ Food Pro*essing Industries

9overnment has been implementing a *cheme for technology upgradation( establishment( e-pansion( moderni ation of Food Processing Industries %ith a vie% to create demonstrative effect on potential entrepreneurs# $he main ob'ective of the scheme is to promote latest technology in the preservation of perishable commodities including processing of horticultural produce through setting up of ne% food processing units as %ell as technological upgradation and e-pansion of e-isting units# 2nder the scheme, assistance have been availed by entrepreneurs for moderni ation and setting up of processing units for fruits & vegetables, meat, mil,, fish, grain (oil mill: !ice, pulse & flour milling) alcoholic beverages, consumer products (including ba,ery units) etc# $he scheme envisages financial assistance in form of grants-in-aid to entrepreneurs ; 6<= of the cost of Plant & Machinery and $echnical /ivil >or,s sub'ect to a ma-imum of !s# <7 la,h in general areas and ??#??= in difficult areas sub'ect to ma-imum of !s# @< la,h# In order to ensure %ider coverage for food processing industries and decentralise the procedures for appraisal, grant of assistance & monitoring, the implementation of the scheme %as decentralised in the ++th Plan period %ith effect from 7+st 4pril, 7@ through the participation of ban,s(financial institutions# Further, in order to transfer funds to the beneficiaries and to generate an MI* relating to the scheme, an online interface e-portal designed and maintained by 3"F/ Aan, has been put in place# $his initiative is also aimed at bringing the services of the 9overnment closer to the citi ens and increasing the reach and the availability of assistance to larger sections of society# $he decentralisation of the disbursement procedure has speeded up the disposal of cases, facilitate better monitoring of implementation and improved the viability of food processing units# "uring ++th plan, ?6?8 units %ere assisted under the scheme#

C -S*heme $or Human esour*es De(elo.ment

"eveloping an entrepreneurial base %ith a variety of s,ills in the area of production, pac,aging and mar,eting is the ,ey to rapid gro%th of food processing industries in India# It is e-pected that the demand for trained manpo%er including entrepreneurs, managers, technologists, s,illed %or,ers to cater to the gro%ing needs of the food processing industry %ill surge# Aesides handling of latest technology and ne% %ays of management & mar,eting in food sector %ould necessitate s,illed manpo%er not only to cater the domestic mar,et but also to enable the sector to face global competition# $o augment the supply of trained manpo%er(personnel at all levels such as entrepreneurs, managers, sales persons, floor %or,ers etc#, the Ministry has been implementing a *cheme for 3uman !esource "evelopment in Food Processing Industries since the 8th Five year plan period# $he *cheme has the follo%ing components& o /reation of Infrastructure Facilities in academic institutions 1 $he ob'ective of this component is to strengthen capacity of academic institutions in terms of infrastructural facilities to enable these institutions to upgrade s,ills of personnel through training programme# 2nder this component, /entral(*tate 9overnments academic institutions, recogni ed /olleges( 2niversities, $echnical Institutions are eligible for financial assistance up to !s#@<#77 Ba,h (released in t%o e)ual instalments) for purchase of laboratory e)uipments, pilot plants for augmentation of infrastructure facilities and technical boo,s & 'ournals etc# for running Post 9raduate ( "egree ( "iploma courses in the food processing sector#

o Cntrepreneurship "evelopment Program (C"P) 1 $he Ministry has been providing Financial 4ssistance for conducting

Cntrepreneurship "evelopment Program (C"P) in food processing through /entral(*tate 9overnments Organi ations, ! & " Institutes, 2niversities, *D4s and D9Os# $he ob'ective of C"P is to enable trainees to establish commercially viable enterprises in food processing sector by providing them basic ,no%ledge of technology, pro'ect formulation, management, instilling confidence and motivating them to 'oin the sector as an entrepreneur# $he prospective entrepreneur are also made a%are of the opportunities, supported for availing credit facilities from organi ations# Cach group of trainees consist of not be less than 6< %ith ade)uate representation from the */(*$(%omen & minority communities# Ma-imum financial assistance of !s# 6#77 la,h per C"P is provided to the institutions# $he duration of the C"P is E %ee,s %ith a follo%-up phase of +6 months#

o Food Processing $raining /entres (FP$/) 1 $he *cheme of setting up of Food Processing $raining /entres (FP$/) is aimed at creating a base of rural entrepreneurs, transfer of technology for processing of food products by utili ing locally gro%n ra% materials and providing Fhands on e-perience. at production-cum-training centers# Persons belonging to */(*$(OA/ and %omen are accorded priority in coverage# FP$/s are sanctioned preferably in those clusters %hich have been selected for C"Ps# 2nder the *cheme, /entral( *tate 9overnment Organi ations, Cducational and $raining Institutions, I$Is, D9Os and /o-operatives are eligible for grant to the tune of !s# G#77 la,h for purchase of plant and machinery and !s# 6#77 la,h as revolving seed capital for setting up of single product line FP$/# For multi product line, the Ministry provides grant-in-aid of !s# ++#77 la,h for purchase of plant and machinery and !s# G#77 la,h for seed capital assistance#

"#VI OM"#T'+ +',S I# FOOD P OC"SSI#G I#D&ST !

Cnvironmental la% is a comple- and interloc,ing body of statutes, common la%, treaties, conventions, regulations and policies %hich, very broadly, operate to regulate the interaction of humanity and the rest of the biophysical or natural environment, to%ard the purpose of reducing or minimi ing the impacts of human activity, both on the natural environment for its o%n sa,e, and on humanity itself# $he Indian constitution is amongst the fe% in the %orld that contains specific provisions on environment protection# In the /onstitution of India it is clearly stated that it is the duty of the state to protect and improve the environment and to safeguard the forests and %ildlife of the country# $he Ministry of Cnvironment and Forests and the pollution control boards (/P/A i#e#/entral Pollution /ontrol Aoard and *P/As i#e# *tate Pollution /ontrol Aoards) together form the regulatory and administrative core of the sector#

I -The "n(ironment /Prote*tion2 '*t4 5678

$his 4ct is an umbrella legislation designed to provide a frame%or, for the coordination of central and state authorities established under the >ater (Prevention and /ontrol) 4ct, +8@G and 4ir (Prevention and /ontrol) 4ct, +8H+# 2nder this 4ct, the central government is empo%ered to ta,e measures necessary to protect and improve the )uality of the environment by setting standards for emissions and discharges: regulating the location of industries: management of ha ardous %astes, and protection of public health and %elfare# *everal notifications have been issued by the /entral 9overnment under this 4ct for protection of ecologically-sensitive areas or issues guidelines for matters under the 4ct# *ome of the important notifications issued under the Cnvironment Protection 4ct, +8HE are&

'- Coastal egulation 1one #oti$i*ation /9:5524 %hich regulates activities along coastal stretches# It replaced the earlier /oastal !egulation Ione (/!I) notification of +88+# It has provided clear procedures for obtaining /!I approval %ith time-lines have been stipulated along %ith post-clearance monitoring and enforcement mechanism# >ater area up to +6 nautical miles in the sea and the entire %ater area of a tidal %ater body such as cree,, river, estuary etc#, %ould no% be included in the /!I areas, %ithout imposing any restrictions of fishing activities# B. Island Protection Zone Notification 2011 for environmental management of the islands of 4ndaman and Dicobar and Ba,shad%eep# C. nvironmental Impact Assessment Notification!200" (in super session of the notification *#O# E7 (C) dated the 6@ th January, +88G# $his notification is under sub-rule (?) of !ule < of the Cnvironment (Protection) !ules, +8HE for imposing certain restrictions and prohibitions on ne% pro'ects or activities, or on the e-pansion or moderni ation of e-isting pro'ects or activities based on their potential environmental impacts# !ule < of the Cnvironment (Protection) !ules, +8HE deals %ith Prohibitions and restrictions on the location of industries and the carrying on processes and operations in different areas#

II. #a$ardous %aste &'ana(ement and #andlin() *ules+ 1,-, $his !ules provide the procedure to control the generation, collection, treatment, import, storage, and handling of ha ardous %astes# 2nder this !ule, any 2nit that generates, collects, treats, imports, stores or handles ha ardous %astes should obtain authori ation, maintain necessary records and submit returns# III- The Manu$a*ture4 &se4 Im.ort4 ";.ort4 and Storage o$ ha3ardous Mi*ro< organisms0 Geneti*ally "ngineered Organisms or Cells ules4 5676 $his !ule %as introduced %ith a vie% to protect the environment, nature, and health, in connection microorganisms# 4ny %ith person the application dealing %ith of gene technology and Micro-organisms, 9enetically

Cngineered Organisms or /ells should obtain permission from the "epartment of Aio-$echnology# IV- The "n(ironment /Siting $or Industrial Pro=e*ts2 ules4 5666 $his rule lays do%n detailed provisions relating to areas to be avoided for siting of industries, precautionary measures to be ta,en for site selecting as also the aspects of environmental protection %hich should have been incorporated during the implementation of the industrial development pro'ects# V-The >iologi*al Di(ersity '*t4 9::9 $his 4ct provides for the conservation of biological diversity, sustainable use of its components, and fair and e)uitable sharing of the benefits arising out of the use of biological resources and ,no%ledge associated %ith it#

VI-The Indian Fisheries '*t4 576? $his 4ct establishes t%o sets of penal offences %hereby the government can sue any person %ho uses dynamite or other e-plosive substance in any %ay

(%hether coastal or inland) %ith intent to catch or destroy any fish or poisonous fish in order to ,ill# VII-The ,ater /Pre(ention and Control o$ Pollution2 Cess '*t4 56?? $his 4ct provides for the levy and collection of cess or fees on %ater consuming industries and local authorities# VIII-The 'ir /Pre(ention and Control o$ Pollution2 '*t4 5675 $he 4ct provides means for the control and abatement of air pollution# $he 4ct see,s to combat air pollution by prohibiting the use of polluting fuels and substances, as %ell as by regulating appliances that give rise to air pollution# 2nder the 4ct establishment or operation of any industrial plant re)uires consent from state pollution control boards# $he pollution control boards are also e-pected to test the air in air pollution control areas, inspect pollution control e)uipment, and manufacturing processes# $o counter the problems associated %ith air pollution, ambient air )uality standards %ere established, under the 4ct# I@-The Indian Forest '*t4 569? It is one of the many surviving colonial statutes# It %as enacted to Fconsolidate the la% related to forest, the transit of forest produce, and the duty leviable on timber and other forest produce.# @- Forest /Conser(ation2 '*t4 567: and Forest /Conser(ation2 ules4 5675 It provides for the protection of and conservation of forests# $he 4ct restricts the po%ers of the state in respect of de-reservation of forests and use of forestland for non-forest purposes (the term Fnon-forest purpose. includes clearing any forestland for cultivation of cash crops, plantation crops, horticulture or any purpose other than re-afforestation)#

Recommendations
9hilst, the ;overnment initiatives aimed to bring about regulatory reforms and infrastructure development in agriculture marketing and private sector investment in infrastructure creation have created the much desired vibrancy in the sector in recent times, however, there is a paramount need to take big ticket measures to catapult the growth of food processing sector and take it to the high growth tra+ectory. 1ome of the measures that could be taken to spur the growth of the sector are as followsH O(er*oming long & $ragmented su..ly *hainA To overcome the long and fragmented supply chain, contract farming can emerge as a significant opportunity for companies whereby they can create direct farm linkages to source appropriate !uality, !uantity and varieties of inputs. 7urrently, contract farming is supported by the governments of few key producing states in India. < few companies have been successful in linking up with farmers, and some models of contract farming based on profit sharing or social investment may emerge in the future. Pro(iding im.etus to logisti*s & su..ly *hain se*torA ?. 8edicated freight corridors in rail supplemented by concretized dual carriageways for the 1tate , >ational highways, will directly reduce the cost of goods supplied. ). There is a need to develop a single entity of all multi"modal transportation, instead of splitting into rail, surface and air as separate 2inistries , entities. This entity needs to remain customer , industry centric rather than as the ;overnmental control mechanism. -. 1upport to private rail operators by providing access to infrastructure of Indian railways at concessional rates; tax holidays for purchase of wagons and creation of infrastructure, especially that of rail terminals for cargo consolidation and aggregation. I. &rovide further incentives to FT9Os, one of the ma+or drivers of warehousing business.

#. The ;overnment should provide industry status to this sector and formulate a separate 2inistry for 1upply 7hain , Bogistics sector. (. 1upport development of organized strategic logistics hubs by helping in land ac!uisition and by providing tax incentives: tax holidays. F. Tax incentives to 2ulti modal Bogistical 7entres which also have manufacturing:exporting capabilities. .. Incentivize -&B operators in setting up end"to"end logistics and warehousing set"up. @. Incentives for setting up warehousing:cold storage infrastructure and customized transportation network development. P Formulation o$ Com.rehensi(e #ational +e(el .oli*y on Food Pro*essing The comprehensive policy will ensure private sector investment in infrastructure development, increased farm productivity and up gradation of !uality and give further impetus to the food processing sector. The comprehensive national level food processing policy would also ensure institutional strengthening , capacity building across the value chain and would also seek to promote innovation in general and technological innovation in particular. P #eed $or Se*ond Green e(olution in 'gri*ulture The first ;reen =evolution has run its course. 7ereal yields are rising very slowly, water tables are plunging, and agricultural growth is also low. India needs a second ;reen =evolution in India which takes rice and wheat cultivators beyond the grain production stage to agro"food processing and gives value addition and would also solve the issue of constraints in raw material procurement. This high end initiative re!uires commitment from all the stakeholders in the food value chain. P Inter Ministerial ,orking Grou. to 'ddress the Issues The ;overnment should set up Inter 2inisterial 9orking ;roup 3I29;4 under the leadership of 2inistry of Food &rocessing to look at comprehensively addressing various issues that are holding this sector back.

. P &ndertake a..ro.riate measures to address the skill Ga. Issue in the se*torA a4 The government should allocate separate budget for human resource development for food processing sector for enhancing and up gradation of the skills and implementation of the various schemes for skill development. <ll the skills development cells and other organizations and ministries should work in tandem for effective implementation of the ob+ectives set. b4 There is a need for immediate adoption of ITIKs by the food processing industry in various clusters across the country to upgrade the lower end skills. The candidates after training couldbe directly employed by the industry; this model is already prevalent in some parts of the country at a small scale, but now it needs a big push from the industry. P Promote agri<$ood .arks by in(ol(ing industry .arti*i.ation $or better $un*tioning o$ these .arksP Make *on*erted e$$orts to enhan*e .ri(ate se*tor in(estment in in$rastru*ture de(elo.ment4 in*reasing $arm .rodu*ti(ity and u. gradation o$ BualityP 'll Industry in*enti(es under single %indo% *learan*e-

CO#C+&SIO#

The Indian food industry presents a very large opportunity to every stakeholder. This is primarily driven by a robust consumer demand, the changing nature of the Indian consumer, who is more informed and willing to try new products; and the strong production base of the country. >eedless to add, the several gaps in the current production and delivery systems actually present a huge opportunity for the growth of companies willing to bet long term in this sector. %owever, the growth of food processing companies has been sub"optimal because of high cost, low level of productivity, high wastage and lack of competitiveness of Indian food products in the global market. Therefore, to fully leverage the growth potential of the sector, current challenges that are being faced by the industry need to be properly addressed and steps need to be taken to remove the bottlenecks hampering the sectoral growth. FI77I survey has thus acted as a first step in identifying these challenges, thus providing a roadmap for all the stakeholders to work on, and thus contributing in realizing the immense potential of this industry.