37 mega food parks and 297 integrated cold chain projects sanctioned under PMKSY

Source: The Economic Times, Mar 17, 2020

NEW DELHI: The Ministry of Food Processing Industries (MoFPI) has sanctioned 37 mega food parks and 298 integrated cold chain projects throughout the country to fill in the gaps across the value chain and establishing the cold chain grid, said Rameswar Teli, minister of state for Food Processing Industries, in a reply in the Lok Sabha today.

The MoFPI is focusing on building cold chain infrastructure across the country, for seamless transfer of perishables from production to consumption areas, through the Pradhan Mantri Kisan Sampada Yojana (PMKSY).

Apart from the mega food parks and integrated cold chain, 45 projects have been approved for agro processing clusters, 58 projects have been cleared for creation of backward and forward linkages, he said.

Further, 219 projects for creation and expansion of food processing and preservation capacities have been approved in the country he said.

Under operation greens, five projects have been approved and another 150 projects under food testing laboratories.

These schemes aim at arresting post-harvest losses of horticulture and non-horticulture produce by encouraging the creation of cold storages/ primary processing/ and transportation facilities across the country.
These schemes are demand-driven, mostly by the private investors, said Teli. Financial assistance to the eligible applicants is provided against the Expression of Interests (EoI) issued by the MoFPI from time to time, he said.

Mahindra Agri Solutions bets big on organic food

Source: ETRetail.com, Mar 12, 2020

Conglomerate Mahindra Group is studying the possibility of introducing its own brand of organic food to tap into the growing urban market of conscious eaters.

Mahindra Agri Solutions, a group company, may leverage the Mahindra brand to overcome the lack of consumer trust in the authenticity of organic food products.

Developing consumer trust in the authenticity of an organic product and the stark price difference between organic and regular food are the two barriers to the market in India today, said Ashok Sharma, managing director of Mahindra Agri Solutions. The entry of a brand like Mahindra can help develop that trust, he said, meanwhile the price differential will be narrowed as the business scales.

The company has already invested in Mera Kisan, an organic food manufacturing startup, to explore this business. It is aiming to scale to a supplier base of 25,000 farmers over the next three-four years to source at least 2 lakh tonnes of organic food. Presently, it has about 8,000 certified organic farmers in its fold, Sharma said.

“India itself is a big opportunity,” he said, pegging the domestic organic food market at Rs 1000 crore annually. “There is also demand in exports and there also we want to contribute.”

It presently sells its products through partners like Haiko Supermarket and online retailers like Big Basket, Amazon and Flipkart. Mera Kisan on Wednesday signed cricketer Ajinkya Rahane as its brand ambassador. The Indian test cricket team vice-captain also picked up a minority stake in the company.

The Mahindra-backed startup is looking at break-even by 2024 with revenue of Rs 150 crore. Its target is to be among the top three organic food brands in India, according to Sharma.

Mahindra Agri Solutions sells seeds, micro-irrigation systems, agricultural chemicals, and is also one of the leading exporters of fruits from India to European markets.

Food processing ministry grants aid for 10 projects

Source: The Hindu Business Line, Mar 05, 2020

New Delhi: The Food Processing Ministry said on Thursday that grant-in-aid of ₹67.29 crore has been sanctioned for 10 projects worth ₹301.54 crore under the “Agro Processing Cluster Scheme” of the Ministry’s Kisan SAMPADAYojana.

The decision was taken at a meeting of the Inter-Ministerial Approval Committee chaired by the Union Minister for Food Processing Industries, Harsimrat Kaur Badal. Read the rest of this entry »

Food processing ministry approves Rs 162 cr under Operation Greens scheme

Source: The Economic Times, Feb 26, 2020

The government has approved Rs 162 crore under Operation Green scheme which has an outlay of Rs 500 crore to stabilize the supply of tomato, onion and potato (TOP) crops and to ensure their availability round the year without price volatility.

The scheme announced in 2018-19 budget aims to enhance value realisation for farmers by targeted interventions to strengthen production clusters and the Farmer Producer Organisations (FPO) and linking them with the market.

Food Processing Minister Harsimrat Kaur Badal said five projects have been sanctioned in the country and more were in line for approvals. “The total cost of the projects is Rs 426 crore and the grant we will give is Rs 162 crore,” she said.

Badal added that infrastructure projects for the agro commodities will come in Chittoor district of Andhra Pradesh, Banaskantha in Gujarat and two in Ahmednagar in Maharashtra. “More than 50,000 farmers will benefit with these upcoming projects and it will create 10,000 jobs. Storage of over 90,000 tonnes and over 3.64 lakh tonne of daily processing capacity will be created,” she said.

National Agricultural Cooperative Marketing Federation of India (NAFED) will be the nodal agency to implement price stabilisation measures. The pattern of assistance will comprise grants-in-aid at the rate of 50% of the eligible project cost in all areas, subject to maximum Rs 50 crores per project. The ministry will provide 50% subsidy on transportation of the crops from production to storage and hiring of appropriate storage facilities.
As part of the long term integrated value chain development projects, the government will help in capacity building of FPOs, quality production, post-harvest processing facilities, agri-logistics, development of markets and creation and management of e-platform for demand and supply management of the crops.

‘Organic food market growing 17% annually’

Source: The Hindu Business Line, Feb 21, 2020

New Delhi: India’s organic food market is growing at 17 per cent annually and has the potential to grow at a faster pace on rising demand for health and wellness food products across the world, Union Food Processing Minister Harsimrat Kaur Badal said on Friday.

Badal and Minister for Women and Child Development (WCD) Smriti Irani jointly inaugurated an organic food festival for women entrepreneurs at Jawahar Lal Nehru Stadium here. Read the rest of this entry »

India’s Organic Food Business expected to reach; Rs75,000 Crores by 2025

Source: IBEF.org, Feb 14, 2019

With an aim to empower women and promote organic produce, Ministry of Food Processing Industries (MoFPI) is organizing a National Organic Festival with a special focus on women entrepreneurs, said Smt Harsimrat Kaur Badal, Union Minister for Food Processing Industries (FPI). Announcing the 3-day long Food festival, during a press meet in New Delhi today, FPI Minister shared that more than 150 women Entrepreneurs and Self Help groups (SHG’s) from all over the country will be exhibiting their organic products in various segments such as fruit & vegetables, ready to eat Products, Spices and condiments, Honey, cereals, dry fruits etc.  Smt Pushpa Subrahmanyam, Secretary in the Ministry was also present.

In order to boost the organic products and promote women entrepreneurship in the area of production and processing of organic products, the MoFPI and Ministry of Women and Child Development (Mo WCD) have joined hands for organising a three-day festival from February 21-23, 2020 at Jawaharlal Nehru Stadium, New Delhi.

The festival cum exhibition that is being held under the theme “Unleashing India’s Organic Market Potential” will be inaugurated by Smt Harsimrat Kaur Badal, Minister of Food Processing Industries. Women entrepreneurs and SHGs from all over the country will be exhibiting their organic products in various segments such as fruit & vegetable, ready-to-eat products, spices and condiments, honey, cereals, dry fruits, beverages, medicinal plants, oil and value-added products like jam, jelly, murabba, chutney etc. Entrepreneurs and SHGs from 24 states are participating in the festival.

Apart from showcasing the organic products, the event will focus on facilitating business linkages and empowering women entrepreneurs through pre-arranged B2B and B2G meetings. Other softer elements of the exhibition will include, organic food quiz, live culinary sessions, Chef speaks, cultural events, nukkad natak etc.

Smt Harsimrat Kaur Badal shared that the Ministry of Food Processing Industries (MoFPI) and Ministry of Women and Child Development (MoWCD) have recently signed an MoU to help women entrepreneurs get connected with Government financial schemes like MUDRA (Micro Units Development and Refinance Agency), Startup India and also meet the compliance needed for being competitive in the global market.

Skill development capacity building training programs for women entrepreneurs and SHGs will be organized to facilitate post-harvest management, value addition and new innovations towards enhancing production efficiency as well to impart comprehensive knowledge about various aspects of the supply chain of organic products. Training on packaging, marketing and innovations on renewable energy will also be imparted to help the producers cater to a broader consumer base. Training on organic certification and FSSAI regulations will be organized as well to familiarize producers with the regulatory processes.

Awareness sessions for consumers on benefits of incorporating organic in daily diet will be held. Also, success stories of entrepreneurs will be highlighted in an exclusive segment. For facilitating business linkages and empowering women entrepreneurs through financial inclusion pre-arranged B2B and B2G meeting will be organized during the exhibition, said the Union Minister.

Talking about the benefits of the Organic food, Smt Harsimrat Kaur Badal said: “How your food is grown or raised can have a major impact on your mental and emotional health as well as the environment. Organic foods often have much more beneficial nutrients, such as antioxidants, than their conventionally grown counterparts”

 India’s Organic Market Potential

With ninth largest World’s Organic Agricultural land and largest number of producers India is fast growing in the organic food segment. India produced around 1.70 million MT (2017-18) of certified organic products which includes all varieties of food products namely Oil Seeds, Sugar cane, Cereals & Millets, Cotton, Pulses, Medicinal Plants, Tea, Fruits, Spices, Dry Fruits, Vegetables, Coffee etc.

On the demand side, increasing disposable incomes, increasing awareness around health and wellness and increasing acceptability are driving the growth in the organic food segment which is expected to grow at a CAGR of 10 per cent during the period 2016-21.

At the same time the demand for Indian organic food products is on constant increase worldwide with India exporting organic products worth US$ 515 million in 2017-18 with organic products being exported to USA, European Union, Canada, Switzerland, Australia, Israel, South Korea, Vietnam, New Zealand, Japan etc. The major demands under the organic product category are for oil seeds, cereals & millets, sugar, fruit juice concentrates, tea, spices, pulses, dry fruits, medicinal plant products etc. As per the Indian Organic Sector – Vision 2025 report, India’s organic business has immense potential to reach the Rs 75,000 crore (US$ 10.73 billion) mark by 2025 from Rs 2,700 crore (US$ 386.32 million) (in 2015).

India’s food-tech industry to grow at 25 pc CAGR to USD 8 bn by 2022-end

Source: ETRetail.com, Jan 28, 2019

New Delhi : Rising internet penetration, increasing ordering frequency and favourable consumer disposition are some of the factors driving growth in the Indian food-tech industry that is poised to grow at a compound annual growth rate of 25-30 per cent to USD 8 billion by the end of 2022, a report by Google and Boston Consulting Group (BCG) said on Tuesday. “Riding on the wave of higher consumption in a growing market and maturing dynamics on the supply side, we expect the industry to grow from USD 4 billion to USD 8 billion in the next three years, a massive 25 per cent growth rate,” the report titled ‘Demystifying the Online Food Consumer’ said.

It added that funding in the food-tech space has grown by 35 times in the past five years.

Macro trends such as rising internet penetration, increasing ordering frequency, favourable consumer disposition, expanding reach in smaller tiers and expanding network of restaurants on food-tech platforms pan-India continue to drive momentum in the industry, the report said.

As a consequence, reach of food-tech aggregators has grown six times from 2017 to 2019. At the same time, consumers are spending more than double the time to explore and order online — from 32 minutes per month in 2017 to 72 minutes per month in 2019.

The study cited peer or network advocacy (52 per cent) plays a critical role in drawing people to try online food ordering for the first time. This was followed by advertisements (19 per cent) that emerged to be a strong driver in metros and among the higher income groups across the country.

“The food tech industry is nascent but one of the fastest growing in the country… Food tech has now made its presence in greater than 500 cities in India and with consumer confidence growing, there are new opportunities for the players to ‘win with the consumer’ in an evolving market,” Google Director (Travel, BFSI, Classifieds, Gaming, Telco and Payments) Roma Datta Chobey said.

Overall, online spending in India is expected to grow at 25 per cent over the next five years to cross USD 130 billion.

The report also flagged the impediments that hinder adoption by consumers.

A fifth of the respondents stated a lack of trust in the app as the main barrier to usage — they believe that the role and control of the aggregators in the actual food preparation is low.

Delivery charges (18 per cent), food quality concerns (13 per cent) and lack of customisation (10 per cent) were other reasons customers cited for not having experimented with online food ordering so far.

Interestingly, while delivery charge was the top reason for not ordering food online in metro cities; in tier-I cities, lack of trust in apps (29 per cent) emerged as the primary roadblock.

“Food tech start-ups have revolutionised the way Indians eat. There is now a greater demand for healthy, home-cooked meals leading to emergence of new business models like cloud kitchen and meal subscriptions. Ordering food online is now a habit,” BCG Senior Partner and Managing Director Abheek Singhi said.

There is large headroom to increase reach, engagement and usage frequency for food-tech apps, he added.