ASSOCHAM Food Processing Investment Summit

AGRICULTURAL PRODUCE PROCESSING AND VALUE ADDITION (SECONDARY AGRICULTURE) IN PRODUCTION CATCHMENTS
Director Central Institute of Agricultural Engineering Bhopal (MP) January 21, 2012

Pitam Chandra

PRESENT SCENARIO
Food production in the country is adequate but it is not accessible to all. Inadequate income earned by about 25% population High post harvest losses on farm and in the supply chain linking farmers to markets (estimated annual loss of Rs. 44,000 crore) Inadequate livelihood opportunities in the production catchments and rural sector

PRESENT SCENARIO
High level of women and child malnutrition Mismatch between agri-exports and agriimports Huge quantities of under-utilized crop residues and processing by-products leading to loss of income and environmental sustainability Low levels of agro-processing and value addition

POST HARVEST LOSS : SUMMARY

CROP CEREALS

% Loss, minimum

% Loss, maximum

3.9 (Sorghum) 4.3 (Chickpea) 2.8 (Cottonseed)

6.0 (Wheat) 6.1 (Blackgram) 10.1 (Groundnut)

PULSES

OILSEEDS

FRUITS

5.8 (Sapota)
6.8 (Cabbage)

18.0 (Guava)
12.5 (Tomato)

VEGETABLES

Loss (%) at National Level in different operations/channels

S. No Crop
Total Loss in Farm Opera tions

Farm Level Stora ge

PLANTATION & SPICES 32 33 34 35 36 37 38 39 Arecanut Cashew Coconut Sugarcane* Black Pepper Chilli Coriander Turmeric

Godo wn/ wareh ouse/ Cold Stora ge

Whol Retail Proce ssing esale er r Level Unit Level Level Stora Stora Stora ge ge ge 1.2 0.2 1.1 0.6 1.8 0.5 0.9 1.8 0.4 2.1 0.1 0.5 2.0 0.4 0.8 0.7 0.2 1.4 1.2 0.0 1.0 0.0 -

Total Wight ed Loss in Stora ge

OVERALL TOTAL LOSS

6.6 0.9 4.1 7.8 3.6 3.9 6.8 6.7

1.5 0.1 1.9 0.8 0.3 0.9 1.9 1.3

0.0 0.0 0.2 0.0 0.6 0.0 -

1.3 0.2 1.3 0.9 0.3 1.7 0.5 0.7

7.9 1.1 5.4 8.7 3.9 5.6 7.3 7.4

Loss (%) at National Level in different operations/channels

S. No Crop
Total Loss in Farm Opera -tions

Farm Level Storage

40 41 42

LIVESTOCK PRODUCE Egg

Inland Fish Marine Fish Meat Poultry Meat Milk

Godown/ Cold Storage -

Wholesaler Level Storage

Retail -er Level Storage 1.7 1.4 1.7

Proce ssing Unit Level Storage

Total Wighte d Loss in Storage

OVERALL TOTAL LOSS

4.9 5.2 1.8

0.8 1.0 -

1.7 2.4 0.6

2.1 1.7

1.7 1.7 1.0

6.6 6.9 2.8

43
44 45

1.4
2.7 0.7

0.1

1.0
0.6 -

0.8
1.5 -

0.1 0.2

0.9
1.0 0.1

2.3
3.7 0.8

Global Picture
High income countries add US$ 180 worth of value to one tonne of agricultural produce 98% of agricultural produce in high income countries undergoes industrial processing About 30% only is processed in developing countries Average value added per tonne in developing countries is only US$ 40

The level of processing was estimated to be about 40%

Value Addition in Agro-processing

value addition on gross output basis 10.96 %

CRITICAL GAPS
Agricultural produce processing and value addition technologies are financial resource and knowledge intensive leading to slow absorption of these technologies by the entrepreneurs and industries Agro-produce processing industry is insensitive to utilizing residues and byproducts for converting them into value added products

CRITICAL GAPS
Acute shortage of trained scientific and academic manpower to propel these programmes commensurate with the countrys needs. Agro-produce processing infrastructure needs considerable strengthening to meet the present and emerging challenges Lack of enabling policy framework for adoption of these technologies in production catchments

To Sum Up

Reduce post harvest losses Enhance income and employment generation in farm and rural sectors Make high quality raw material available to agro-processing industries Make food accessible to all Ensure environmental sustainability

Production to consumption chain of agro-processing activities

Priorities
expanding the level of processing in the food grains, fruits & vegetables and dairy sectors on priority, raising the level of processing from primary/ secondary to secondary/ tertiary for all commodities, modernizing the food processing sectors using the efficient equipment and processes for cost competitiveness and better quality products, ensuring adequate training of workers, supervisors and managers in food processing industries to ensure efficient operations and product quality, providing skills and knowledge to farmers for ensuring quality of produce through adoption of GAP, and promoting seamless value chain including post harvest management and value addition in production catchments to obviate the quantitative and qualitative losses.

Agenda of Agro-processing facilities in Production Catchments

Primary/ secondary processing of main produce By-products utilization Supply/cold chain management Custom hiring services Product quality and safety Marketing

Sourcing of Technologies
Home grown Post Harvest Technologies ICAR institutes/ AICRP on PHT CSIR Labs State Agricultural Universities

Value addition to Soy, sorghum, millets and their by- products

Establishment of Commercial plant
Primary produce/ product Soybean Sorghum and pearl millet Value added Product Defatted soymeal Stabilized sorghum and pearl millet flour Cost in lakh rupees 700 (120 TPD) 400 (50TPD)

Defatted soy-meal
Defatted soy-meal Defatted soy, sorghum and pearl millet flour Defatted soy, sorghum and pearl millet flour

Soy isolates and concentrates

Food grade defatted soy flour Dhal analogues/ Extruded snacks Bakery products

950 (30 TPD of SPI and 70 TPD of SPC )

1000 (50 TPD) 1000 (10 TPD) 200 (10 TPD)

TOTAL 4250

Soy-Foods in Mid-Day Meal (MDM) Programme

At present, the solvent extracted soy-meal is being exported. To ensure availability of defatted soy flour in enough quantity encouragement to producer/processor through financial incentives: 10% incentive to convert soy-meal into defatted soy-flour

CIAE

Soy-Foods in Mid-Day Meal (MDM) Programme

Decision to fortify the mid-day meals with soybean defatted flour, whole soybean and other products. Directive from the Central Ministry to State Govt. Ministry for incorporation of properly processed soybean in the mid-day-meal scheme operational in schools of different States.
CIAE