India: 'Don’t free fruits, vegetables from APMC ambit' [ Transfreez Mobile Refrigeration - India's Most Effective Refrigerated Trucks ]

Farmers seem to be supporting the government’s decision on not implementing the Union government’s direction on the delinking of some vegetables and fruits from the Agriculture Produce Marketing Committee’s (APMC) ambit.

The farmers said the State government is right in organising ‘Raitha Angala’ (Farmers’ ground) events, instead of following the Union government’s directive, as they serve as an opportunity to sell their produce directly to customers at retail prices. The APMCs will only collect user fee for the facility, they added.

Karnataka Rajya Raitha Sangha working president K T Gangadhar said the Union government is planning to amend the APMC Act and this is not favourable to small-time producers and sellers.

“The produces, their weight and prices are all guaranteed at APMCs and secretaries appointed take responsibility. Delinking some vegetables and fruits from APMCs may have a negative impact on the market,” Gangadhar said.

Agreeing with Gangadhar, Organic Farming expert from Kolar K R Hullanachegowda said the State government is right in not delinking as it may result in loss to farmers. “The farmers bring their produces from different places and give them to APMC for a price. Middlemen will come in if intervention happens in this process. The farmers may gain little by selling their produce outside, but they can also be dumped,” he said.

Gangadhar said the idea of delinking some vegetables and fruits from APMCs will only benefit big sellers and ‘malls’.”From the beginning, APMCs have focused on production and the need for better marketing approach was never felt. Instead of amending the APMC act to delink farmers’ produces, the Central government should look at strengthening the Act which will benefit both big, small and marginal farmers,” he added.

Source: newindianexpress.com

Decoding India’s Persistent Food Inflation [ Transfreez Mobile Refrigeration - India's Most Effective Refrigerated Trucks ]

Rising living standards and inefficient agricultural policy are exacerbating India’s food problem.

In its ongoing effort to tame high food inflation in India, the central government recently decided to bring onions and potatoes under the purview of the Essential Commodities Act. The state governments will have to now act by fixing stock limits for these two items and penalising hoarding and black-marketing activities to keep prices in check. Other earlier measures, such as encouraging state governments to delist fruits and vegetables from the Agriculture Produce Marketing Committee (APMC) Act and fixing minimum export prices for onions and potatoes, were announced as part of the Modi government’s inflation control strategy. While this may bring some temporary relief, it will not tame inflation over the medium or long terms. India’s food economy is directly dependant on domestic production and agricultural output, monsoons, and domestic policies. The wholesale price index (WPI) and consumer price index (CPI) are regularly tracked to gauge the rise of prices in India. While food accounts for one-third of the WPI, its percentage of the CPI is almost 50 percent.Monsoons do have a significant impact on food inflation, but can’t solely be blamed for the persistent food inflation problem in India.

Food inflation averaged 3.8 percent year on year in the eight-year period from 2000 to 2008. However, in the five years following the financial crisis it rose substantially, averaging 10.3 percent year on year and has remained at these levels despite slow GDP growth. Persistent food inflation has been a concern for policymakers in India as good monsoons and softer global food prices haven’t had an impact on domestic food prices. For an average Indian household, food still accounts for almost 50 percent of total expenditure. At a broader level, both demand and supply side factors have played a role, however policy implications may vary depending on different drivers of inflation for various subcomponents of the food basket.

A closer look at the WPI food subcomponents and disaggregated data reveals that inflation has been broad-based across subcategories, affecting cereals, milk, eggs, fruits and vegetables, meat, pulses, edible oils, and other items. However, prices of protein items, fruits and vegetables have risen more than cereal prices. According to the Institute of Economic Growth, a 1 percent increase in per capita income leads to a 0.05 percent decline in demand for cereals and a 0.2 percent drop in demand for pulses. These goods are generally referred to as “inferior goods” in economic theory. For all other “normal goods,” however, consumption increases as per capita income rises. Thus a 1 percent increase in per capita income would increase the per capita consumption of vegetables, fruits, and milk by between 0.5 and 0.6 percent. Consequently, rising per capita incomes in India have led to diversification of the Indian diet towards high-value products such as milk, meat, and eggs, leading to “protein inflation.” The National Sample Survey Organization’s (NSSO) household consumption expenditure survey indicates that the share of protein-rich items in overall food consumption has increased from 27.1 percent in 2004-05 to 32.5 percent in 2011-12 in rural areas. In urban areas the share rose from 29.9 percent to 33.0 percent during the same period. Demand-pull inflation thus plays an important role in the case of high value-added items like fruits, vegetables, and dairy products.

On the supply side, agriculture wages account for almost 40 percent of the total cost of production. Since 2007, nominal rural wage growth has far outpaced overall inflation, resulting in higher real rural wages. Nominal wages increased 17.3 percent after 2008, compared to 6.2 percent in the period prior to it. The Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS), which offers one hundred days of guaranteed wage employment in a financial year to rural workers, has increased the bargaining power of laborers by setting a floor for rural wages. The government’s Commission for Agriculture Costs and Prices (CACP) estimates that a 1 percent rise in wage inflation translates into a 0.3 percent rise in food inflation. At the same time, persistent food inflation itself results in higher wage inflation, thereby creating a strong wage-price spiral in the agricultural sector. But higher rural wages have not been accompanied by productivity gains in the farm sector, further fueling inflation. Thus the solution is to move toward mechanization and better farm technology in order to improve labor productivity in line with higher rural wages.

Besides wages, other input costs have also risen substantially post 2008. The past five years have seen significant year-on-year increases in the price of key agriculture inputs like fertilizers (8 percent), fodder (20 percent), diesel (8 percent), electricity (8.7 percent), and tractors (5.4 percent). Moreover, India’s food price policy has the dual objective of providing minimum support prices (MSP) for the benefit of farmers, and subsidization of prices for the poor through a public distribution system (PDS). Currently MSP apply to 25 crops, which account for 30 percent of the WPI food basket. This is to incentivize farmers to produce some essential cereals. An increase in agricultural input costs post 2007-08 has resulted in higher support prices of cereals as MSP calculation follow a cost-plus approach.

This has had a double impact. Not only does it lead to higher food prices directly, it also increases the burden of the food, fuel and fertilizer subsidy bill on the government. This translates into a higher fiscal deficit which further increases prices. Thus monetary policy alone is not sufficient to tackle inflation, and an emphasis on better fiscal management is needed.

Lastly, India’s food supply chain is also fraught with inefficiencies, which result in artificial inflation. Malpractice and the monopoly of intermediaries under the APMC Act (under which farmers cannot sell produce direct to retailers) results in much higher margins (around 65 percent) over and above the primary producer’s price. Moreover, wastage due to underdeveloped agriculture infrastructure (lack of cold chains, transport facilities) is around 25 percent while an inefficient PDS has a leakage of around 40 percent.

Thus the key drivers of inflation may vary across different food categories. For example India imports most of its edible oil and pulses, hence domestic prices of these commodities respond quickly to global prices. Domestic policies like MSP, stocking decisions, and public distribution play an important role in the price of cereals like wheat and rice. Broken supply chains, inefficient marketing infrastructure, and malpractice inflate the prices of fruits and vegetables. A food supply shock is generally temporary but it does lead to a sustained increase in food inflation if not tackled effectively through monetary and fiscal policy. Thus a multi-pronged strategy involving better fiscal management, a tight monetary policy, efficient supply chains, and improvements in productivity is the cure for the high food inflation problem in India.

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India's organic farming industry to grow to Rs 10,000 cr by 2015 : Transfreez Mobile Refrigeration - India's most Effective Cold Plate Refrigerated Trucks

NEW DELHI (Commodity Online): With a steady annual growth of 40% on rising population, higher disposable incomes and rising health consciousness, India's organic farming industry is set to grow to Rs 10,000 cr, according to Associated Chambers of Commerce and Industry of India (ASSOCHAM). Presently, Indian organic farming market is estimated at Rs 2,500 cr.

Currently India has about 4.5 million hectares area under certified organic farms and the number is growing fast.

Private players including corporates irrespective of their market size are performing varied roles of producers, consolidators, processors, retailers and certification agents and employing innovative business models to succeed in this behalf, highlights an ASSOCHAM study on “Organic Products-The Way Ahead”.

“Private sector with facilitation from the government has played a pivotal role in driving organic movement in the country,” said Mr D S Rawat, secretary general of The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Organic farming can create millions of jobs in the agri sector as it can spur over 30 per cent of employment per hectare as against non-organic farming and this ratio can further increase if on-farm processing, value addition, packaging and direct marketing are considered, says an independent research of ASSOCHAM.

The global organic market currently stands at around 65 billion dollars and is growing at a robust annual rate of over 5 billion dollars.

Certified organic products including all varieties of food products namely basmati rice, pulses, honey, tea, spices, coffee, oil seeds, fruits, processed food, cereals, herbal medicines and their value added products are produced in India. Apart from edible sector organic cotton fiber, garments, cosmetics, functional food products, body care products etc. are also produced.

Although, organic farming is picking up pace in India but the sector has been jostling with lack of awareness, knowledge and confidence about organic farming, food products among both farmers and consumers.

ASSOCHAM suggests the government to promote training programs for farmers, producers and certification programs for agencies to enhance awareness about organic farming, food products and their health benefits.

Research and development is another significant area which requires serious attention and the same can be addressed by setting up research institutions aimed at improving different aspects of organic production across India, points out the study.

“Considering the questions being raised on quality of Chinese organic products, more emphasis must be laid on maintaining quality control while promoting exports of domestically produced organic products,” added Mr Rawat.

Besides, there is limited expertise in marketing of organic products and the chamber suggests that government should engage non-governmental organizations (NGOs) to establish close linkages with farmers and promote organic farming by providing training, extension services information and marketing services to farming communities.

Only educated and health conscious urban lot consumes organic food produced in the country as there is a price difference of about 30 per cent between organic and non-organic food.

ASSOCHAM has urged the ministry of agriculture to spread awareness about the benefits of organic farming to small farmers and bring down the certification costs for further growth and development of organic sector in the country.

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Fruit prices to rise due to Maharashtra rains; Veg prices to be stable [ Transfreez mobile refrigeration - India's most effective Cold Plate Reefers ]

Due to unseasonable rains and hailstorms in certain parts of Maharashtra, the prices of fruits would rise by 20 to 30 per cent, but those of vegetables would remain stable until June 2014.

Crops have got damaged in parts of the state, and that is the reason farmers are not able to supply their produce in the Agricultural Produce Market Committee (APMC) market in Navi Mumbai.

The worst-hit fruit include grapes, oranges and pomegranate. Over the next fifteen days, consumers could expect a rise in their wholesale and retail prices.

Sanjay Pansare, director, fruit market, APMC, informed FnB News the impact was already being felt on the fruit, whose prices have risen by 10%, and would increase by 20-30% fortnightly.

“On account of these unseasonal rains and hailstorms, grapes, bananas, pomegranate, oranges and other fruit have been affected adversely,” he added.

“Crops spread over hectares of land has been damaged. Traders are expecting the prices of most fruit to rise by at least 30%, but the exact prices would be known in the next 10 days,” Pansare said.

“As summer is around the corner, people crave fruit. But with the increase in the fruit prices, the common man will be a disappointed for the common man,” he added.

“Kesar mangoes would be badly affected. During the peak season, ten tonne kesar mangoes enter the APMC market from places like Latur and Aurangabad,” Pansare informed.

“Most of the damage was done by the hailstorm well before the ripe crop was ready to be plucked,” he added.

Sanjay Karande, trader, vegetable market, APMC, said, “Hailstorms and unseasonable rains in parts of Maharashtra have affected many crops.”

“However, only fruit would be affected badly, because vegetables are not grown in large quantities in the affected areas,” he added.

“The prices of vegetable prices would remain stable, but we expect them to rise in June,” Karande added.


Transfreez mobile refrigeration - India's most effective Cold Plate Reefers
Source: fnbNews.com

Kochi beats the heat with exotic fruits [Transfreez Mobile Refrigeration-India's Most Effective Cold Plate Reefers]

Soaring temperature in the city has seen the demand for fruits go up as citizens look for a way to beat the early onset of summer. The preference this year has veered towards the more exotic and imported variants of fruits, according to shopkeepers, who have lined their shops with grapes from Peru, Fuji apples from Japan, pears from the US, among others.

"There has been a big demand for exotic varieties such as Ecosac grapes, Lucky Boy and Pink Lady apples. People prefer different varieties of fruits, especially imported ones," said Mathew Joseph, accountant, IG International Fruit Dealers. "The Kiwi fruit shipped from New Zealand, Iran and Italy; guavas from Thailand; and even seedless grapes from Chile and the US are the most sought after fruits," he added.

The demand for melons such as Kiran, Zamam, muskmelon and the normal water melons have gone up. At Kadavanthra local market, apples from Washington are available from Rs 150 to Rs 180 per kg. The Kashmir and China apples range between Rs 150 and Rs 170 per kg, while rose and black grapes come in the Rs 25-30 range, and white Angoor at Rs 60 to 70 per kg.

"The apples were imported last month and stored in large freezer containers at Aroor. The fruits are then dispatched to the local market according to the demand. However, Srinagar and Nagercoil oranges are available in plenty at Rs 40 per kg," said K K Saji, fruit vendor.

But local fruit vendors are being upstaged by malls when it comes to business. All fruits are available at hypermarts which sell them at lower rates as they buy them at wholesale price.

"Seasonal fruits are available for 10 to 15% less as they are available in plenty. However, exotic fruits such as dragon fruit, mangosteen, rambutan, rose apple (jambakka), avocados and longan fruit, all from Thailand, are sold at a premium," said Umar Mustafa of Lulu Hypermart. Lulu alone buys eight tonnes of seasonal fruits from different parts of the country.

The local market is, meawhile, witnessing the arrival of mangoes with rates ranging from Rs 80 to Rs 130 a kg. "By April, the rate will come down," said Shihan, fruit merchant, Kadavanthara market.


Transfreez Mobile Refrigeration-India's Most Effective Cold Plate Reefers
Source: Times of India

India 30 percent rise in vegetable, fruit prices expected [Transfreez Mobile Refrigertion-India's Most Effective Cold Plate Reefers]

Traders say that all crops standing in the fields, whether fruits or vegetables, have been damaged by the unseasonable rainfall and hail, and prices could soar in a fortnight.

Traders in the APMC market say that all produce that grows above the ground has been affected, the effect of which will be perceptible in the markets within a fortnight from now. Fewer trucks laden with greens and fruits are expected to be driving into the city.

Vegetable and fruit
Sanjay Pansare, director of the Agriculture Produce Marketing Committee (APMC) in Vashi, said, “Grapes, bananas and pomegranate production has been hit badly on account of these unseasonable rains and hailstorms. Crops spread over hectares of land have been damaged.

Grapes, Pomegranate and Orange
We are anticipating a 30 per cent hike in prices, but the exact price rise would be gauged in 8-10 days. With summer round the corner, people crave fruits. But if prices increase, it could be a big disappointment for the common man.”

Apple, Watermelon and Sweet Lime
Kesar mangoes are said to have been affected badly. Usually, nine to 10 tonnes of this variety enter the wholesale markets during peak season, from places like Aurangabad and Latur.

The damage was mostly done by the hailstones that fell on the ripe crops, days before they were ready to be plucked. Shankar Pingale, director of the vegetable market, said, “The market receives tomatoes from Latur, cucumber from Solapur and leafy vegetables from Nashik, all of which have been affected by hailstones and untimely rains. The price rise would be understood in about 10 days, if there is a drop in the number of trucks and tempos carrying greens.”

Top traders fear that the quality of produce entering the market will also be affected. Ajit Bhorade, another trader from Vashi APMC, said, “Presently in the wholesale market, tomatoes are being sold at Rs 6 per kg, but with the damaged produce reaching the market, there is sure to be a shortage soon. In wholesale market, the price may go up to Rs 12 per kg. Pune zilla is a huge supplier of fresh greens, and therefore, the hailstones and rains are a cause of concern to everyone.”

Transfreez Mobile Refrigertion-India's Most Effective Cold Plate Reefers

Source: mid-day.com 

Rains spoil veggies, fruits, prices to soar [Transfreez Mobile Refrigeration-India's Most Effective Cold Plate Reefers]

Brace to pay more for vegetables and fruits as the spell of rain and hailstorm last week has hit the supply of major farm produce in the agricultural belt the city sources its stock from. Supplies of essential vegetables such as tomato and onion, besides several fruits have been affected. Traders anticipate prices in the retail market to escalate over the next couple of days.

While wholesale prices of vegetables and fruits have already shot up by 10-20% in the last one week, wholesale market rates may go up by at least 50% in the days ahead. "The rain and the hailstorm have affected crops which grow both above and below the ground. As a result, supply of practically all vegetables and fruits grown locally has been affected. We are expecting rates to go up even further," said Shivlal Bhosale, president of the Market Yard Commission Agents Association.

Heavy rains in the last couple of days in areas like Baramati, Junnar, Ambegaon and Shirur among others have severely damaged crops and the shortage in supply will soon reflect in the market, said Sanjiv Khadke, administrator of the city's Agricultural Produce Marketing Committee. "We are expecting a drop in the quantity of produce reaching the Pune market. With the marriage season also around the corner, buyers will begin to feel the price heat in the next 3-4 days," he said. The wheat crop in the Vidharba belt is also affected, Khadke added.

Bhosale said the entire crop of green leafy vegetables such as spinach, fenugreek and coriander have been spoilt in the rain. Cabbage crops too are at the risk of rotting. "Whatever little produce of these could be saved may now go at throwaway prices, that too if there are any buyers for that quality," he said.

Wholesale prices of onion have already gone up by Rs 2/kg over the last two days, traders said, indicating a further upward movement in the days ahead. "Wholesale prices have been rising steadily since last week. The cloudy weather conditions during November and December were bad for Rabi crop of onion. Rain in the last couple of days has only added to the farmers' misery. With large quantities of the crop being diverted for export and to northern states like Delhi, Haryana and Punjab, the supply of onion available for sale in Pune is down by almost half," said Ritesh Poman, wholesale trader of onion at Market Yard.

Retailers have already begun to increase the prices. "We have no other option but to increase prices. Wholesalers have already hiked their rates, so we can't afford to suffer a loss," said Bhaskar Mhesta, a retailer in Baner.

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Source: 

Imported fruit may have to pass pesticide test [Transfreez Mobile Refrigeration-India's most effective Cold Plate Reefer]

Are those beautifully packed and fresh looking exotic fruits displayed on the stands in posh markets really healthy?

We'll find it out very soon as for the first time, imported fruits and vegetables are set to come under pesticide watch following the recommendations from a courtappointed committee.

In the wake of the reports of rampant contamination of vegetables and fruits in Delhi's markets, the Supreme Court and Delhi High Court have initiated several steps to curb the use of pesticides and artificial colour for enhancing their size and appearance.

The amount of pesticides in fruits and vegetables in India, and especially those sold in Delhi markets, were as much as 750 times the European standards, NGOs Center for Public Interest Litigation and Consumer Voice claimed in the SC and HC, respectively. 

The NGOs claimed in their pleas that the fruits were a toxic cocktail of banned pesticides capable of causing headache, cancer, heart disease, infertility and pose a risk to the nervous system and liver. 

The banned pesticides included chlordane, a rat poison that affects the nervous system and endrin, an insecticide that causes headache. 

"Surprise checks will be conducted at major markets once in a month and there will not be any differentiation between local fruits and vegetables and those imported. 

The court panel's report says an eye has to be kept on them also as they too are susceptible to contamination because of lucrative business," Meera Bhatia, the lawyer for Delhi government said. 

Terming the situation as "alarming", the court said 1.7 crore Delhiites everyday consume fruits and vegetables unfit for human consumption. 

It had recently asked the Delhi government to publicise the short-term measures and Dos and Don'ts suggested by the expert committee to minimise the presence of pesticides residue. 

+2

Ordering intensification of the crackdown against the contamination, the court has sought a status report on April 15. 

"No such consignment should be allowed to enter the country without pre-dispatch pesticide testing report by the exporter.

Samples of imported fruits and vegetables should be drawn by plant quarantine stations at international arrival points and monitored for the presence of pesticide residues," said a report filed in the court by the panel headed by Sandhya Kulshreshta, additional deputy DG in the health ministry. 

"Surprise inspections were conducted in many markets like Azadpur Mandi, Kotla, Mayur Vihar, Sarojini Nagar, INA, Defence Colony, Vasant Vihar and Lodhi Estate in the last three years. We found that pesticides, toxic colours and hormones are being used by farmers and traders to speed up growth, ripen and improve colour," said Bhatia. 

The expert committee said results of tests should be posted on the website of the Delhi government's food department along with the name of the market. 

The SC said: "Right to life and human dignity encompasses, within its ambit availability of articles of food without insecticides or pesticides residues. 

But the fact remains that food available in the market contain insecticides or pesticides residues, beyond the tolerable limits, causing serious health hazards. 

Fruit-based soft drinks also contain pesticides in alarming proportion, but no attention is made to examine its contents. 

Harmful for kids 

"Children and infants are uniquely susceptible to the effects of pesticides because of their physiological immaturity and greater exposure to soft drinks". 

The SC directed Food and Safety Standards Authority of India to coordinate with counterparts in all the states and conduct periodical inspections and monitoring of major fruits and vegetable markets.

[Transfreez Mobile Refrigeration-India's most effective Cold Plate Reefer]

Source: MailonlineIndia

Delhi’s Fruit and Veggies Unfit for Humans, Says Court [Transfreez Mobile Refrigeration-India's Most Effective Cold Plate Refrigerated Trucks]

Some fruits and vegetables on sale in India’s capital are unfit for consumption because they contain alarming levels of pesticide residue, the Delhi High Court said Wednesday.

The court’s observation was based on a report that examined food samples in the capital and found a fraction of them to contain pesticide residues above the maximum residue limit.

India still uses pesticides that have been banned in several other countries, according to the World Health Organization.

The court ordered the government of New Delhi to set up a “Pesticide Residue Management Cell” within four weeks to address the issue. It also asked the city’s government and the Ministry of Agriculture to act quickly to make consumers and farmers aware of the presence of banned pesticides in their food.

As a short-term measure, the court ordered the state and national governments to translate into local languages, circulate and publicize information about pesticides at vegetable stands, railway stations and bus stops, as well as on their websites. It also ordered that fruits and vegetables be periodically tested for pesticide content.

Each year, a panel of experts submits a report to the Ministry of Agriculture that details the level of pesticides in food sold in the open market. This report, though, is not made public, said Ashok Kanchan, a technical advisor with New Delhi-based nonprofit, Consumer Voice.

In 2010, the nonprofit conducted its own study to assess pesticide levels in food. That study tested for 106 types of pesticides at a government-accredited laboratory, and found food samples from New Delhi, Bangalore, Kolkata and Mumbai, among other cities, to contain harmful levels of pesticides.

Consumer Voice found that mangoes, for example, contained DDT, a pesticide that was used to contain malaria, but has been banned since the 1970s in Western countries because it harms crops. Only India and China still produce the pesticide, mainly for domestic use.

Other foods contained pesticides which are believed to cause cancer, kidney and lung ailments, as well as other long-term illnesses, the nonprofit found.

Mr. Kanchan said they also discovered that cherries contained endosulfan, a highly poisonous insecticide that causes mental and physical disabilities. Last week, the government of the southern state of Karnataka decided to compensate 1,815 victims who fell sick after endosulfan was found to have been sprayed in plantations they consumed foods from, The Hindu reported.

After the nonprofit’s study was brought to its attention, the Delhi High Court ordered a probe into the safety of food items in the capital. Indian courts often launch “suo moto” probes in instances where the subject matter is of public interest. Wednesday’s hearing was based on findings of a court-sanctioned committee, which tested food items across the capital and concluded that much of it was unfit for consumption.

The court also opined that state-run bodies, including the Food Safety and Standards Authority of India, had failed in their duty to protect consumers against harmful pesticides. It ordered the Ministry of Agriculture and the government of Delhi to present long-term measures to address high-pesticide levels. The next hearing in the case is scheduled for April 15.

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- Source: India Real Time

NDDB may help market fruits, vegetables in Jharkhand

The national dairy development department board (NDDB) may help Jharkhand in marketing and product enhancement of vegetables and fruits in the state.

The state government on Saturday inked an agreement with the board for five years for dairy development in the state.

As the NDDB’s Mother Dairy will be sold with the tag of Medha milk in Jharkhand, the union minister Jairam Ramesh suggested the state government to use the brand of Mother Dairy even for marketing and product enhancement of vegetables and fruits.

“Mother Dairy is not a brand of milk products but it is also popular for fresh vegetables and fruits,” Ramesh said.

Under the brand name ‘Safal,’ the Mother Dairy Fruit & Vegetable Pvt Ltd has been undertaking integrated marketing of horticultural produce. An official of the state horticulture department said that they would soon prepare a strategy in this regard.

Jharkhand has been the surplus state in terms of vegetable production. However, owing to lack of marketing strategy, storage facility and processing plants, the state is yet to reap desired results from the vegetable productions. As per the Jharkhand economic survey 2013-14, vegetables’ production is 4325.38 million tons cultivated on 3.21 lakh hectare area in 2012-13. Jharkhand’s annual vegetable demand is just 3000 million ton.

Similarly, production of production of fruits has also increased many folds in last 13 years. The production of fruits was 265.1 million tons in 2000-01 that increased to 889.74 million ton. The area for fruits’ production has also increased by three fold in last 13 years. In 2000-01, areas for fruit cultivation were just 29,900 hectares that increased to 93,820 hectares in 2012-13.

HT Correspondent  Ranchi, March 03, 2014

India grows over 270 million tonne fruits & vegetables [Transfreez Mobile Refrigeration-Name stands for Refrigerated Trucks India]

With a production of 269 million tonnes in 2012-13, the horticulture sector has emerged as a major contributor to the food basket of the country.

Horticulture production grew by more than 8% during the last decade. As compared to the production of 257 million tonnes in the previous year and 215 million tonnes about five years ago, there has been significant jump in the horticulture production, thereby leading to higher per capita availability of horticulture produce like fruits and vegetables having high domestic consumption, besides other commodities like spices, cashew etc. having high export potential.

India is now the world's largest producer of mango, banana, papaya, pomegranate, sapota, Aonla and okra and has the second highest position in brinjal, cabbage, cauliflower, onion, potato and peas. Tomatoes are also produced in sizable quantity.

This has been possible on account of the Governmental interventions under the schemes of National Horticulture Mission (NHM), Horticulture Mission for North East and Himalayas States (HMNEH), National Mission on Micro Irrigation (NMMI), National Horticulture Board (NHB), Coconut Development Board (CDB) and Vegetable Initiative for Urban Clusters(VIUC). While the NHM covers 66 crop clusters in 383 districts in 18 States & 4 UTs, the coverage is in all the districts of HMNEH States. Under NMMI, about 4 million hectares have been brought under improved irrigation systems such as drip and sprinkler irrigation.

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Radheshyam Jadhav, TNN | Feb 26, 2014

Fruits-vegetables sector faces multiple challenges: Exim Bank [Transfreez Mobile Refrigeration-Name stands for Refrigerated Trucks of India]

The Indian fruits and vegetables production faces multiple challenges across the value chain from the supply side to the demand side, according to a study released by EXIM Bank of India. 

The study was conducted with an aim to examine the factors responsible for India's low share of in the world trade of fruits and vegetables. This is despite being the second biggest producer of fruits and vegetables.   

"At production level, the major challenge is low productivity, while at post production stage, the wastage rate is very high", it said. The study noted that average productivity of most domestic fruit and vegetable crops is low compared to international standards. 

There is a wide gap between existing and potential yields. This can be narrowed through improved varieties and technologies. Some areas of concern are water management, quality seed development, pest and diseases management and technology suitability for small and marginal land holdings.

While admitting that there are problems facing the Indian fruits and vegetables sector, Siraj Hussain, Secretary, Ministry of Food Processing Industries, said that India also has several success stories. "We have put up a reasonably good supply chain in grapes, apples and now bananas". But these successes have not been replicated in other fruits and vegetables, he said. 

According to the study, estimated wastage in India ranges from 11 per cent in mangoes to as high as 90 per cent in tomatoes. This has resulted in low marketable surplus and low trade in the sector. Some other contributors are slow development of post-harvest technologies and their dissemination. 

Total existing cold storage capacity in India is only 10.4 per cent of the total production of fruits and vegetables, it said. Of this total, 75 per cent caters to potatoes and around 24 per cent is used for meat and dairy, leaving only a miniscule capacity for fruits and vegetables. 

The study stressed the need for production and post production management, international quality compliance, and marketing strategies for development of the export market. The report said that the analyses of production, productivity and major fruit and vegetable trade reveal three areas that the country needs to work on - "productivity improvement through technological interventions, reduction of wastage through efficient post-harvest management and diversification of markets through development of customized products."

TCA Ranganathan, CMD of EXIM Bank said India is not realizing its potential in the fruits and vegetables space. "We need to go five steps forward to meet all the challenges," he said. 

[Transfreez Mobile Refrigeration-Name stands for Refrigerated Trucks of India]

- BusinessToday

Present and future scenario of food processing industry in Maharashtra [Transfreez Mobile Refrigeration-Name stands for Refrigerated Truck]

Introduction

India is the second-largest producer of food, and has the potential to be the largest on a global food and agriculture canvas, according to a Corporate Catalyst India (CCI) survey. The food industry in India comprises the food-producing and processing industries. The food processing industry is one of the largest in India – it is ranked fifth in terms of production, consumption, export and expected growth. Maharashtra is the leading state in India as far as food processing is concerned.

The agriculture sector is vital for any nation, and in India, it is the principal source of livelihood for more than 58 per cent of the population. It is the base for the majority of the food processing industry, and grew at the rate of 4.4 per cent in 2012-13. At a national level, the foodgrain production is close to 245 million tonne (MT). The food processing industry is growing at the rate of 13 per cent, and for the Indian economy and the overall growth of the nation, the growth of food processing industry is very important, as it takes care of farmers and employment for skilled and unskilled labour.

Food processing overview: Indian scenario

Annually, India produces 205 million tonne fruit and vegetables, and is the second-largest country in the world as far as farm production is concerned. However, it processes just 4.6 per cent of its output. In contrast, countries like the United States (65 per cent), China (23 per cent) and Philippines (78 per cent) are far ahead of India in reducing wastage and enhancing the value addition and shelf-life of the farm products. The fact that a large volume of India’s agricultural output is wasted is an alarming signal for the country. 

About 35 per cent of the fruit and vegetables is wasted annually, due to poor storage facility, amounting to a revenue loss of Rs 500 billion. Approximately 80 per cent of the vegetables rot due to their high water content and the lack of processing facility, resulting in  revenue loss of Rs 125 billion. India aims to increase the processing level to 20 per cent by 2015 [Ministry of Food Processing Industries (MoFPI), 2011].

I consider the food processing sector an extention of agriculture sector. Both are interdependent on each other for their progress. In developed countries, the developments in the food processing sector have created a demand in the agriculture sector. India will follow the same path.

Food processing is a process which results in the transformation of raw ingredients obtained from farmers into manufactured food products sold in the retail space. Depending on the level of processing and the degree of value addition, processed foods can be classified as primary, secondary or tertiary. 

Primary foods (such as packaged fruits and milled rice) undergo a quick and simple transformation. Secondary and tertiary processing (such as preparing bread from wheat, cheese from milk and pickles from vegetables) is a high value-add process involving complex and longer techniques, and result in a complete change in the raw materials.

Indian food industry

The Indian food industry is projected to grow from $100 billion to $300 billion by 2015, according to a report by a leading industry body and Technopak.[footnote]. During the period, the share of processed food in terms of value is expected to increase from 43 per cent to 50 per cent of the total food production.

The food processing industry is of enormous significance for India's development, as it has efficiently and effectively linked the nation’s economy, industry and agriculture. The linking of these three pillars has synergised the development process and promoted the growth of the nation to a great extent.

There are 25,367 registered food processing units in the country, with total invested capital of Rs 84,094 crore ($17.81 billion), as per a competitiveness report of the National Manufacturing Competitiveness Council. The food processing sector is presently growing at an average rate of 13.5 per cent per annum. The Vision Document 2015 envisages increasing the value addition from 20 per cent to 35 per cent by 2015. 

The food processing industry is one of the largest industries operating in India and is divided into several segments, including fruit and vegetables; meat and poultry; dairy; marine products, and grains and consumer foods (which includes packaged foods, beverages and packaged drinking water).

The fruit and vegetable processing industry is highly decentralised, but a large number of units are in the cottage, household and small-scale sectors, having small capacities of upto 250 tonne per annum. Since 2000, the food processing industry has seen large growth in ready-to-serve beverages, fruit juices and pulps, dehydrated and frozen fruit and vegetable products, pickles, mushrooms and ready-mix vegetables. These small-scale units engaged in these segments of processing are export-oriented. The value-addition of food products is expected to increase from  eight per cent to 35 per cent by 2025. Fruit and vegetable processing is also expected to increase from the current level of four per cent to 25 per cent of total production by 2025, as per the CCI report. 

The dairy sector, which has the highest share in processed food market, has large unexploited potential. The report revealed that 37 per cent of the total dairy produce is processed, of which only 15 per cent is done by the organised sector. Hence, there are abundant opportunities for investment and development. 

The food processing industry in India attracted foreign direct investment (FDI) worth $1,273.96 million between April 2000 and June 2011, according to data provided by the Department of Industrial Policy and Promotion (DIPP).

Food processing overview: Maharashtra scenario

Maharashtra covers an area of approximately three lakh sq km and its population exceeds 12 crore. The state’s contribution to the Indian food processing industry is about 13 per cent, and if proper focus is given, it can increase to 25 per cent. It produces various cereals, fruit, vegetables, dairy and fishery products. The following are the production figures for these sectors.

Cereals
Fruit
Vegetables
Maharashtra is the leading producers of onions in India.
Livestock and dairy 

Though Maharashtra is a leading producer of agricultural, horticultural and marine products, it is poor as far as their processing is concerned. 

As per my estimates, the state’s overall processing rate - excluding those  of dairy and foodgrains - is about seven per cent. It certainly can increase its value addition to 25 per cent over the next ten years with proper focus and implementation policies.

Major processing sectors in Maharashtra

Maharashtra accounts for about 90 per cent of India’s wine production, and is a leading processor of mangoes and onions. Oil is another commodity in which the state’s processing industry has a major share.

It is also known for the processing of grapes, bananas, oranges, pomegranate, cashewnuts, strawberries, tomatoes, sugarcane, milk and milk products and fish. There is a good scope for the processing of all the aforementioned commodities, as there is a huge production base.

I see huge potential in the post-harvest treatment of fruit and vegetables in the coming days. Due to the changes in lifestyles and urbanisation, the demand for quality fruit and vegetables is increasing. Even the demand for ready-to-use fruit and vegetables is increasing. The scope for cut vegetables is also high due to the growing demand.

Apart from traditional food processing (viz the processing of mangoes, bananas, grapes, sugarcane, dairy products, etc.), the sector needs value-addition to be able to pay back higher returns to the farming community and have inclusive growth.

Maharashtra is seeing a paradigm shift, and sectors such as nutraceuticals, wine processing, pre- and probiotics, packaged water, ready-to-eat foods, traditional foods, cut vegetables, fruit treated post-harvest, exports, food additives and manufactured food processing equipment could fuel the growth of food processing and be game-changers for the state.

Maharashtra’s advatages over other states

For the last 40 years, Maharashtra has been a leader in food processing, owing to many advantages, such as political stability; friendly government policies (particularly from MoFPI); good work in basic agricultural research and hybridisation; forward-thinking farmers and good production supply; a good industry base; closeness to the market (a result of growing urbanisation) and high export potential.

Challenges

For the growth of the food processing industry, many inputs (including raw material) are required.

The biggest challenge faced by the food processing sector is that it is dominated by unorganised players, who contribute to 80 per cent of the industry’s volume. There is a conversion of unorganised players to organised ones, but a fair distance still needs to be crossed. 

The main challenges are the unavailability of a processable quality and quantity of fruit and vegetables; the low productivity of agri products; the smallland holdings of farmers; the poor processing conversion; the low technology base and low automation; labour-intensive operations,  the high degree of seasonality and erratic input availability; the high operating costs due to small-scale operations; the fact that it is a less competitive sector, etc.

These challenges could be overcome by proper planning and focus if given to this sector.

Potential

The Indian food processing sector has been called a sunrise industry due to its inherent potential. Maharashtra’s food processing sector has such advantages as urbanisation; high consumer purchasing power; growing market potential; rising domestic demand; new food safety regulations (for instance, the clubbing of the nutraceutical sector with the food processing sector); high agricultural production, development of infrastructure and great investment potential.

Maharashtra has a family base of about three crore, taking into account an average family size of four. If each family spends Rs 2,500 on foods (such as milk, oil, grains, vegetables and fruit), the state’s monthly expenditure on food is Rs 7,500 crore. This works out to an annual food expenditure of Rs 90,000 crore.
Now the questions are: (a) Is the state able to cater to a market of that size; (b) Are its resources being utilised fully to cater this market; (c) Does it have adequate facilities to fulfill the demand, and (d) Is it dependent on imports from other states or countries?

Considering its adequacy of infrastructure and facilities and its closeness to big markets, Maharashtra has larger potential in value addition processing than traditional commodity base processing.

Maharashtra’s position on India’s food processing map

Maharashtra’s share in Indian food processing, as stated earlier, is about 13 per cent, and its overall growth is about 12 per cent. Its gross state domestic product (GSDP) is Rs 11,99,548 crore. Of this, only 15 per cent is contributed by the agricultuire and food processing sector. However, 55 per cent of the population is dependent on the agri and food processing sector. This is mainly due to the lack of value addition by the processing sector. This scenario needs to be changed and the money should be repaid to the farmers as per their value addition. The agri and food processng sectors should contribute equally to the GSDP, which is possible in Maharashtra because of the aforementioned advantages. However, proper focus is a must.

Way forward

Recently, the Centre announced the scrapping of the Agricultural Produce Marketing Committee (APMC) Act, thus fuelling direct trade between the farmers and the consumers. To boost exports, India must work on improving its supply quality.

The government and the industry should focus on market needs and try to meet the demand, rather than putting our own production in the market with low realisation.

The focus should be market-backward, and not production-forward.  If there is a demand for seedless guava or orange, we must supply the same instead of supplying the same fruit, thus fetching a lower price. Although it is a long process and will take time, the government, agricultural universities and companies should focus on this.

Success stories include grapes (from seeded to seedless) and banana (from normally-grown to grown by tissue culture). They have changed the economics of the trade. The same route must be followed in case of other fruit and vegetables. In short, the mantra is, ‘Meet the market demand’.

Conclusion
Maharashtra, being India’s leading state with respect to food processing, is the natural choice for investors. However, this sector has a huge scope for future growth. Various other sectors within the food processing industries (such as nutraceuticals, the post-harvest sector, traditional foods and convenience foods) are still in a nascent stage, and Maharashtra has the potential to be a hot destination in those as well. They can boost economic growth by bringing good value addition to the farmers, the processors and the consumers.

-FnBNews, Saturday, February 01, 2014

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ABCA, subsidiary of AB Agri, to focus on supplying feed producers in India-[Transfreez Mobile Refrigeration-The Name stands for Refrigerated Truck]

ABCA, a subsidiary of AB Agri, and part of Associated British Foods, has said it will focus on supplying poultry and feed producers in India. The company is aiming at introducing itself to the Indian market.

David Yiend, chief executive, AB Agri, commented: "AB Agri is a balanced diversified business operating in many parts of the food chain from plough to plate - supplying its products across 70 countries. ABCA’s entry into the Indian market is another great milestone for us providing feed manufacturers and livestock farmers with safe and sustainable solutions to enhance animal performance and produce safe and high quality food products." 

James Charteris-Hough, MD, ABCA, added: "ABCA aspires to become a preferred choice in the area of innovative yeast derivative products for Indian animal nutrition and health industries. We plan to build a high reputation within the industry in South Asia and help deliver long-term benefits through a personable approach to business." 

Dr Romila Iyer, business manager, South Asia, ABCA, said: "At ABCA, we plan to establish well-balanced portfolio of innovative products / solution and introducing value-added products to animal production and feed-market, coupled with our resolute focus on customer’s needs, will be the cornerstone for our marketing strategy. ABCA will associate closely with the entire media of India livestock industry."

In India, ABCA will initially focus on working with industry players to identify opportunities to supply new innovative products to the market on an import basis. This will involve working with existing ABF businesses in India such as AB Mauri who will help drive this development. The company said that there will be a need to invest in some India-based R&D as time goes on and in the future possibly more specialist production, warehousing and distribution networks locally.

-[Transfreez Mobile Refrigeration-The Name stands for Refrigerated Truck]

Friday, December 07, 2012 IST  Our Bureau, Mumbai

Iran keen to boost agri trade; Seeks Indian processed food investments -[Transfreez Mobile Refrigeration - Name that stands for Refrigerated Truck]

Gholam Reza Ansari, Iran’s ambassador to India, stated that the two countries are seeking trade opportunities in agriculture. In Bengaluru recently at the invitation at the Federation of Karnataka Chamber of Commerce (FKCCI), he added that the Indian food processing industry could invest in and enter joint ventures in Iran. The ambassador said that the diversification of trade was another measure to accelerate the growth of trade.

Agriculture 
Iran has been exporting dry fruit, fresh fruit and saffron to India, but would like to increase its agricultural produce exports to the country, which Ansari described as a huge market in terms of opportunities. He added, “We depend on India for basmati rice, wheat, sugar, processed meat, cattle feed and soya produce.”  

Trade between the two countries has increased substantially. In 2011-12, it was recorded at $13,421.17 million. Between April and December the following year, exports stood at $2,063 million and imports at $8,524.89 million. This year, is expected to cross the $20-billion-mark, up from last year’s $15 billion. 

Challenges
FKCCI officials stated that the fact that a number of industries from India exported to Iran, but added that there were logistic issues that were hindering trading. Another roadblock is the fact that just one bank (UCO Bank) facilitates all the monetary transactions. Opening multiple bank accounts to enable quicker transactions was the need of the hour.   

Oil
Ansari said that while imports from India continued to be dominated by oil, there were immense prospects to boost non-oil exports to India, and that was where fruit and other agricultural commodities were seen as potential trade areas. 

“However, the import of non-oil commodities is difficult. For instance, a courier service cannot be used for the exchange of all kinds of product samples exchange. But, now the governments of the two countries are in talks and will come to a practical and logical solution shortly,” he said.

-[Transfreez Mobile Refrigeration - Name that stands for Refrigerated Truck]

Wednesday, January 22, 2014 IST  Nandita Vijay, Bengaluru

Fruits, vegetables to get cheaper in Mumbai?

State likely to exclude them from APMCs' ambit so that farmers can sell directly to consumers.

Imagine getting fruits and vegetables like mangoes, oranges, tomatoes, onions, potatoes and leafy vegetables at lower rates in this era of inflation. This may turn into a reality with the state government due to exclude fruits, vegetables, condiments and processed items like pulses, dry fruits and edible oil from the ambit of the agricultural produce market committees (APMCs).

This will mean that farmers can sell to consumers directly, bypassing intermediaries, thus reducing rates, ensuring remunerative prices for farmers and lowering wastage in the distribution chain.

However, skeptics point to the sniping between the Congress and the NCP (which controls most of the significant 305 APMCs) as having the potential to delay these marketing reforms in an election year. Critics like traders say that while the state is seeking to bypass APMCs, no alternative distribution systems are available for agriculturists.

Congress vice-president Rahul Gandhi had asked Congress-ruled states to allow farmers to sell their produce to consumers bypassing APMCs to stem price rise. Despite the APMC act being amended in 2006 to allow direct and private marketing, contract farming, public private partnership (PPP) and single licence for the entire state, these reforms have been slow-starters.

State agriculture and marketing minister Radhakrishna Vikhe Patil told dna that they had finalised an order to delist around 43 commodities. He however added that it had been put on hold till a meeting was held with stakeholders like largely NCP-controlled mathadi (head load workers) unions and traders, who are objecting to the move. Another order to delist processed foods is expected with plans to cover other commodities soon.

“Inflation rises largely due to food prices. This will definitely help ensure that prices fall by around 20-25%,” said Vikhe, adding that small traders and institutions could purchase directly from farmers. The move will also reduce costs by doing away with charges levied by intermediaries.

Farmers claim traders’ rings and organised groups rig prices and levy charges. There is a minimum 30% difference between wholesale and retail prices.

“This will ensure an equal playing field for all,” Vikhe said, pointing to how farmers’ groups were banding together due to technology. This will boost direct purchase of agricultural commodities from farmers by consumers, wholesalers and processing industries.

NCP MLC and mathadi leader Narendra Patil said the plan would hurt interests of all stakeholders like consumers, farmers, traders and mathadis. “Farmers cannot offload produce on footpaths, they need proper markets,” he pointed out, adding that APMCs could recover money due to farmers from defaulting traders.

Patil admitted that despite the change in rules, there would be no curbs on farmers selling in APMCs. NCP leaders like Patil and minister Shashikant Shinde largely control mathadi unions in APMCs.

Mohan Gurnani of the Federation of Associations said this would replace the present hub and spoke system of APMCs with one where trucks could flock to Mumbai and congest it. He added that farmers had few options apart from APMCs to sell goods.

State officials said that while the APMCs’ monopoly over agriculture was being disbanded, farmers had no option when it came to selling their perishable goods.

Dr Giridhar Patil, a former associate of liberal farmer leader Sharad Joshi, who has now shifted to the Aam Aadmi Party (AAP), called the APMCs “the largest scam in India” but said the state government was likely to roll back the move as it feared offending powerful lobbies before the polls.

What all could cost lesser
Grapes, pomegranates, figs, melons, guavas, apples, peaches, pears, ginger, garlic, coriander, tomatoes, yam, chillies, jaggery, sugar, wheat flour, sugar, pulses.

Wednesday, Jan 8, 2014, 6:33 IST | Place: Mumbai | Agency: DNA