MoFPI’s Contribution

Towards Agriculture
Development

AVINASH K SRIVASTAVA
SECRETARY
GOVERNMENT OF INDIA
Ministry of Food Processing Industries
 Perishable Agri-Horti Produce – India vs. World
• India is world’s number one producer in milk, second in fruits
and vegetables, and third in fish.
(figures in million metric ton)
Produce India World India’s percentage share
Fruits 89 654 13.6 (next to China)
Vegetables 163 1,160 14 (second to China)
Milk 136 770 17.7 (1st rank)
Fish 9.58 196 4.9 (3rd rank)
Meat (including
poultry) 6.2 310 2 (6th rank)

India is world’s leading producer of Banana (30 million tons – 28%); Mango
& Guava (22 million tons – 45%); Papaya (5.6 million tons – 44%).
India is world’s leading producer of Okra (6.3 million tons – 73%); second to
China in Onion (19.4 million tons – 22.6%), Potato (41.5 million tons – 11.4%)
and Tomato (18.7% - 11.5%).
 What are perishable foods?
• Foods which are likely to spoil, decay or become unsafe to
consume if not kept within specific environmental
parameters.
• Achieved by refrigeration of storage space, alteration of
atmospheric gaseous contents, food irradiation, etc. to
slow/stop bacterial growth.
• Fresh fruits and vegetables, milk, meat, poultry, fish, many
processed food products like fresh milk and dairy
products, frozen meat and seafood products.
• Fruits & vegetables have high water content, around 70-
90%, which enables bacteria to multiply fast (unlike cereals,
water content 8 to 10%).
 What are perishable foods?
• At a temperature of 25-32C, rate of growth of bacteria is
very high which comes down considerably below 12C.
• The (spoilage) bacteria cause foods to deteriorate and
develop unpleasant odours, tastes and textures.
• About 5.8-18% valuing Rs.92,651 crore(about US$ 14
billion) of agri-horti produce is lost as post-harvest
wastage; inadequate preservation or processing.
 Food Preservation
• Shelf-life - length of time that a food may be stored without
being unfit for use, consumption or sale. Extended with
temperature control (refrigeration, insulated containers,
controlled cold chain, etc) creating more opportunities for
farmers/producers to access markets.
• Food preservation aims to increase life/shelf-life of food by
(a) modern methods - refrigeration, canning and irradiation,
(b) traditional methods - drying, salting, smoking and
fermentation.
• It targets to reduce spoilage.
• It is part of the entire procedure of processing foods.
 Food Processing
• Transforms the produce by physical or chemical means into food.
• Operation resulting in minor or major alterations in the natural shape,
size, form, sensory and chemical characteristics, and
• Adds value in terms of preserving or improving the quality of produce
and the convenience of its use.
• Includes transformation of food into other forms.
• Includes
• Pasteurisation (process to kill bacteria in liquid food especially milk,
wines, etc by heating),
• Mincing (cut or shred [meat] into very small pieces),
• Macerating (soften or break up food by soaking in liquid),
• Dicing (cut food into small cubes),
• Slicing,

Continued…….
 Food Processing

Includes
• Development of protein rich foods (from protein rich materials such
as whey, peanuts, coconut and leaf protein, etc),
• Use of food additives (anti-microbial and anti-oxidants).
• Individual Quick Freeze (IQF).
• Irradiation
• Blast Freeze including plate freeze
• Freeze-Drying
Tomato Processing Line

Milk Processing Plant

 Level of Food Preservation and Processing :
India vs. World
• India 10% (overall)
• Fruits and vegetables 2.1 %
• Milk and milk products 35 %
• Meat 21 %
• Poultry 6%
• Marine 23 %

• USA 80%
• Malaysia 80%
• France 70%
• Thailand 30%
Advantages of Food Preservation and
Processing

• Reduce wastage
• Increase income of Producers/Farmers
• Add value to agricultural produce
• Control inflation and Price fluctuation
• Ensure greater supply to consumers
Recent policy initiatives by Government
of India
• Production related
• Marketing related
• Processing related
 Marketing related initiatives
• Market procurement of price sensitive produce (onions) by
Government Agencies and offloading in market to contain
prices – Price Stabilization Fund (PSF)
• Reforms in marketing - denotify F&V from the APMC Acts by
States; farmers enabled to sell to processers directly
• National Agriculture Market (e-NAM) – online bidding by
traders for farmer produce across a State in first phase; better
price to farmers , increased availability to traders, reduction of
intermediaries
 Processing / value addition initiatives
• Mega Food Parks – processing units provided complete
infrastructure (cold storage, pulping line, etc.) with raw material
tie-up
• Cold Chain – 134 nos. under implementation; another 100 nos.
approved by MoFPI; DAC&FW, APEDA, MPEDA also run
schemes
• New Scheme for establishing new food processing units and
technology upgradation and expansion of existing units;
pasteurization, irradiation, IQF, cold storage units included
 Processing / value addition initiatives
• 100% FDI permitted in food processing
(cold chain included)
• 100% FDI in marketing of food products produced and
manufactured in India recently permitted
(lead to higher foreign investment in manufacturing and
food supply chains)
• Make in India – Ease of Doing Business
 Milk Silos

Ripening of Banana
 Food Irradiation
• Process in which perishable food is exposed to ionising
radiation which transmits energy without direct contact, and
frees electrons from their atomic bonds in the targeted food.
• This treatment delays / eliminates sprouting or ripening of fruit
and vegetables, and increases their shelf-life.
• Controls microbial growth in spices.
• Permitted in schemes of MoFPI.
 Blast Freezing
• Process of pushing cold air at high velocity across a food
product to freeze the product as quickly as possible to very low
temperature (-30 to -40 OC).
• Halts the activities of micro organisms to prevent decay
• Water inside living organisms, crystallize into ice. Quick
freezing reduces formation of large crystals which otherwise
damage food materials by cell bursting etc.
• The frozen items can then be moved to a normal freezer for long
term storage.
• Higher quality, better taste, health and safety benefits.
• Used for ice cream, ready meals, fish and vegetable products.
 Individual Quick Freezing (IQF)
• Each piece of food is frozen separately from all the others.
• Used to freeze small particles with potential for lumping during
the process, e.g. small vegetables like peas, prawns, shrimps,
French fried potatoes, diced meat,
• It has a conveyer belt with a perforated bottom on which individual
food items move in a tunnel freezer; cold air is blown vertically
upward, causing the products to suspend / float in the cold air
stream.
• A bag of IQF peas doesn't simply contain a solid block of frozen
peas, but rather, each of the individual frozen peas is loose inside the
bag
 Inside View of IQF

IQF Process Line

 Spiral freezer
• Used for products requiring a long freezing time
(generally 10 minutes to 2 hours) and for products that
require careful handling.
• The products move on a spiral conveyor in ultra cold
air chamber which freezes them to -30 to -40o C.
• The frozen items are locked in shape and quality.
• Suitable for ready meals, meat patties, samosas, cutlets,
pizza.
 Freeze Drying
• Is a dehydration process. Used to preserve perishable or make
the material more convenient for transport.
• Works by freezing the material and then reducing the
surrounding pressure to allow frozen water in the material to
sublimate directly from solid to gas phase.
• For vacuum freeze drying the food products are frozen at -40o
C, then dried under vacuum conditions and stored at ambient
temperature in air tight packaging (to avoid absorption of
moisture).
• Suitable for leafy vegetables like Basils, Coriander etc.
 Descaling of marine produce

Packing of Peas after IQF

 Cold Chain Projects of MoFPI
Sector Number of Number of
sanctioned projects
projects commissioned
Fruits & Vegetables 87 65
Dairy 26 13
Meat / Poultry / Fish 8 6
Irradiation 5 3
Mixed (Horti & Non-Horti) 7 3
Ready-to-eat 1 -
TOTAL 134 90
 Cold Chain Projects of MoFPI
Description of From 134 sanctioned From 90 completed
capacity projects projects
Cold storage / CA / 4.92 lakh metric tons 3.31 lakh metric tons
Deep Freezer
IQF 114 metric tons per hour 77.15 metric tons per
hour
Milk processing 55 lakh litres per day 35 lakh litres per day
capacity
Reefer vehicles 764 numbers 437 numbers

• Scheme has received good response from the investors in the past.
 Inside View

Frozen store
 Scheme of Mega Food Parks (MFPs)
• Launched in 2009; aims to provide modern infrastructure
facilities for food processing backed by an efficient supply chain.
• Av. project cost Rs.125 crore (US$ 19 million); 20 hectares land
for CPC.
• Up to 50%, Rs.50 crore (US$ 7.5 million) grant by Government.
• Collection centres, Primary Processing Centres (PPCs) near the
farm, transportation, logistics and Centralised Processing
Centres (CPCs).
• 30-35 f.p. units at CPC (Rs.250 crore investment) with common
infrastructure for processing, packaging, environmental
protection systems, quality control labs, etc.
 Scheme of Mega Food Parks (MFPs)
• Scheme permits cold storage including CA chambers, ripening
chambers, pre-cooling chambers, cold chain infrastructure incl.
reefer vans at CPC
• Pre-cooling chambers, reefer vans, grading, sorting facilities, at
the PPCs.
• 42 projects sanctioned; 34 under implementation.
• Cold storage incl. frozen 1,80,50 tons to be created; also 170
reefer vans of capacity 1,533 metric ton.
Scheme for Mega Food Parks : Present Status

 Total Nos. of Mega Food Parks Approved : 42

 Projects presently under implementation : 34

 Projects already functional : 08

 Projects likely to be operational this year : 04

 EoI for 6+ new projects floated on 31 July; last date for

submitting proposals extended to 07 October.
 Flour Packing

Patanjali MFP
 Cold Chain – New Initiatives

• 100 new cold chains approved.

• EoI floated on 31 August
• Last date for submission is 17 October
• Grant-in-aid at the rate of 35% of project cost in
general areas and 50% in North-East, Himalayan
States, island areas & ITDP areas
• Higher grant for processing activities
• Maximum subsidy Rs.10 crore per project
31
 Scheme of Abattoirs
• Launched in 2008-09; for scientific and hygienic slaughtering of
animal.
• Includes chilling facility to prevent microbial activity in
slaughtered animals and better hygiene, safety and retail cold
chain management.
• G-I-A given to local bodies / PSUs / Boards under govt. for
new abattoirs and modernization of existing abattoirs.; G-I-A
Rs.15 crore (US$ 2.25 million) as 50% of cost of P&M and TCW.
• Cold chain components supported include:
Carcass Chiller used to chill carcass to < 7°C after washing &
dressing, normally in about 6-12 hours
 Scheme of Abattoirs
Meat processing room where deboning takes place; many
workers; rooms are A.C. to 16°C; clean room technologies
also applied.
Packing section: Same as Meat processing room.
Blast freezer and/or Plate freezer and/or IQF where the
meat is quickly frozen to - 18°C.
Cold store where frozen meat in packs is stored before
dispatch; maintained at -20° C.
Refrigerated vehicles to transport the frozen meat to retail
outlets or ports for export at -18° C.
Modern meat shops advised to have chiller unit and freezer
unit to store the carcass and frozen packs respectively.
 Scheme for Modern Abattoirs:
Current Status

Projects approved : 40
Projects completed :7
Projects ongoing : 33

2 slots available for new projects.

Kolkata Municipal Abattoir
 FTL and R&D Projects:
Current Status
 Food Testing Labs
• Projects Approved - 90
 Projects completed - 53
 Projects under Implementation - 37

 R&D Projects
• Projects Approved - 200
 Projects completed - 101
 Projects under Implementation - 99
Factors Affecting Performance
 Inadequate infrastructure along the value chain-
electricity, storage, logistics etc.
 Restriction on inter-state movement of agricultural
commodities.
 Requirement of Multiple approvals from various
Government departments - Single window system
dysfunctional.
 Continuance of APMC restrictions in most States on
procurement of agricultural produce by processors
 Inadequate investment in organized retail
marketing.
 No Scheme to incentivize investment in Individual
Units
 Recent Initiatives
to Promote Food Processing
 Special fund of Rs. 2000 crore set up in NABARD to provide
affordable credit in designated Food Parks.
160 designated Food Parks notified by the Ministry
 100% FDI in marketing of Food Products, including through e-
commerce, produced or manufactured in India
 Primary processing of fruits and vegetables in Cold Chain
exempted from Service Tax
 Excise duty on food processing and packaging machinery reduced
from 10% to 6%.
 Basic Custom Duty on refrigerated containers reduced from 10% to
5%
 Excise Duty reduced on refrigerated containers from 12.5% to 6%
 Loan to Food and Agro based Processing Units classified for Priority
Sector Lending under Agriculture activities
 PPP Model for harnessing pvt. investment
• Model framework recently developed for integrated cold chain
projects on PPP mode.
• Viability Gap Funding (VGF) up to 20% of project cost available
as capital grant.
• Sponsoring Central Ministry / State Govt owning the project
may provide another 20%.
• Project owner to make available land or an existing asset to
concessionaire.
• Two options of bidding – quoting a grant from the project
owner or payment of premium to project owner.
• Concessionaire permitted to levy service fee from users.
 Capacity Building
• MoFPI has two institutions for capacity building in food
preservation and processing.
• National Institute of Food Technology Entrepreneurship &
Management (NIFTEM) – deemed university.
• Indian Institute of Crop Processing Technology (IICPT) –
affiliated to Tamil Nadu Agriculture University.
• Provide 4-year regular Engineering courses; 2-year M.Tech.
courses also.
• Several short duration trainings for capacity development of
cold store professionals, owners and operators also conducted.
Thank you