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Debutant Snack-Beverage India among shows concurrent with India Foodex
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Wednesday, 16 August, 2017, 08 : 00 AM [IST]
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Nandita Vijay, Bengaluru
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A debutant, Snack-Beverage 2017, will join the line-up of events concurrent with the ninth essay of India Foodex (the international exhibition on food products, retailing, processing and packaging machinery and allied industries), which is slated to take place at Bangalore International Exhibition Centre (BICE), Bengaluru, between August 28 and 30, 2017. The other concurrent events are the seventh editions of GrainTech India and DairyTech India and the fourth edition of MeatTech Asia 2017.
Over 400 exhibitors from about 30 countries are expected to showcase their offerings at the event, which is supported by the Mission for Integrated Development of Horticulture under the Ministry of Agriculture and Farmers Welfare, the National Centre for Cold-chain Development (NCCD), the All India Food Processors’ Association (AIFPA), the Food Processing and Packaging Machinery Industry Association, the Coffee Board (Government of India) and the Federation of Karnataka Chamber of Industry and Commerce.
About 35,000 visitors are expected to attend the event and interact with professionals from the industry at the event, which will cover an area spanning 16,000sq m and, according to the organisers, highlight the best of Indian food talent in a host of segments, including canning, packaging, refrigeration for dairy, poultry, fisheries, meat, ready-to-eat products, cereals and grains, soft drinks, consumer product groups like confectionery, chocolates and cocoa products, soy-based products, mineral water, high-protein foods and nutraceuticals, apart from health food and health food supplements, a rapidly-rising segment of the food processing industry.
Bengaluru hub for agro-processing
Karnataka is recognised nationally for its industrial base and agro-climatic zones. Agro processing is a key activity in the southern state because it is one of the country’s largest producers of fruits and vegetables, and the largest producer of spices and aromatic and medicinal crops. It is also the second largest producer of milk and plantation crops.
“The state has access to qualified manpower, which is primarily possible only because of the presence of such institutions as the Universities of Agricultural Sciences (UAS) in Bengaluru and Dharwad, the Indian Institute of Horticulture Research, the Mysuru-based Central Food Technological Research Institute (CFTRI) and Defence Food Research Laboratory (DFRL),” said M Maheshwar Rao, principal secretary, agriculture, horticulture and sericulture, government of Karnataka.
Agro- and food processing is a sunrise sector, with its domestic as well as export opportunities addressing the demand and supply gap.
Key drivers for growth in the segment
The need to feed over a billion people in India, along with India’s active participation in the global economy is a key driver to growth in the sector.
Domestic food processing is on the cusp of explosive growth, fuelled by changing food habits and increasing consumption.
The increasing disposable incomes and changing socio-economic structures of families are expected to be other key growth drivers of the food processing industry, in addition to organised retailing and the availability of better processing technologies.
“The state government has dedicated nearly Rs 100 crore out of the Rs 6,505 crore it has allocated for agriculture and horticulture in its 2017-18 Budget for various activities related to organic farming,” said Krishna Byre Gowda, agriculture minister, Government of Karnataka.
“This will be increased if farmer interest increases. The state, which set aside Rs 845 crore for the Raitha Suraksha Pradhan Mantri Fasal Bima Yojna, has ensured that this insurance coverage is available to organic farmers as well,” he added.
In addition, the state’s Krishi Mission is pressing the state government to promote food processing industries, as that would help farmers get better prices for their produce.
India: Agri and food processing nucleus
India is the world’s second largest producer of food next to China, but accounts for less than 1.5 per cent of the International Food Trade.
The Indian food sector is poised for a rapid growth and has potential to become reliable outsourcing partner in the food industry, given its strength in the primary food sector.
Indian food brands are now rapidly increasingly finding prime shelf space in retail chains across the United States and Europe.
The Centre has ultimately decided to allow 51 per cent foreign direct investment (FDI) in multi-brand retail. This move is viewed as a step forward to open the retail sector to global brands’ entry into India.
The local industry hoped that the spate of economic reforms announced by the government will spur the much-needed growth prospects. They are also expected to enhance the international impressions about India.
Further, the government has also cleared proposals for joint ventures, foreign collaborations, industrial licenses and 100 per cent export-oriented units (EOUs) that could bring in an investment of Rs 19,100 crore ($4.80 billion). Out of this, foreign investment is estimated to be over Rs 9,100 crore ($2.2 billion).
Many established brands from overseas are now easily available in India. These include American Garden, Unilever food products from the United States, Agnesi Pasta from Italy, Dana regular and sugar-free jam, butter cookies from Denmark, Kikkoman sauces from Japan, Olicoop Spanish olives, Italian olive oil, Ong’s Oriental food and sauces from Singapore and China, beverages from the United Kingdom, chocolates and confectionery from Germany, butter toffees from Argentina, salad dressings, mayonnaise and mustard oil from Holland, canned seafood and vegetables from Australia, sparkling grape juice from France, a variety of mushrooms, Mexican food, Turkish delights, corn and Thai products.
“This will provide the industry an understanding of new products and technologies for manufacture, research and supply chain management,” said the organisers.
The agriculture ministry is aiming to double the production of all food crops through the National Food Security Mission, the National Horticulture Mission, the Horticulture Mission for the North-East and Himalayan States (HMNEH) and the National Horticulture Board, and disseminate the latest and modern practices of production and post-harvest care.
On the export front, the Agricultural and Processed Food Products Export Development Authority (APEDA) is targeting agricultural and processed food exports in the range of Rs 4,000-5,000 crore ($15 billion) in the coming years.
The need of the hour in India is increased productivity of grains and building of an effective supply chain to ensure that what is produced on the farm reaches the consumers in good shape.
The greater use of machinery has, therefore, become necessary in India, where plenty of produce is available for value addition and food processing, but there are technical constraints in enhancing the production and productivity because of inadequate exposure to high technology and inputs, coupled with advanced production practices, preservation, logistics and marketing.
As a result, India is emerging as one of the hottest destinations, not only for food processing and packaging machinery and equipment imports from European and South-East Asian countries, but also for agro-food products from international suppliers.
In order to introduce the latest technological innovations, this event has proved to be an ideal platform for the launch of an exclusive range of products and services in front of the thousands of food processors, machinery suppliers, importers and exporters that throng this expo.
“India Foodex 2016, which, besides India, attracted participation from 30 countries, was an excellent expo and received tremendous support from all quarters,” said the organisers.
Besides being the largest producer of milk and spices, the country is also the second largest producer of fruits, vegetables and food grains. Its food and grocery market is the world’s sixth largest.
This segment also constitutes the largest segment in the country’s retail sector. It is estimated that the food retail market is expected to touch $894.98 billion by 2020, and the snack market, which is currently the world’s fastest-growing at a rate of 16.6 per cent, is driven by the younger population, which is willing to splurge.
The setting up of food parks is another factor which will drive the growth of food processing in the country.
The Indian food industry is currently valued at $39.71 billion and expected to grow at a compound annual growth rate (CAGR) of 11 per cent. The sector is also projected to be $65.4 billion by 2018.
According to Gowda, Foodex 2017 helps to connect those with technologies to be linked with those who are looking at innovative solutions. It helps in raising the awareness level about the availability of technological solutions and knowledge.
Buhler, an agri-equipment manufacturer, has been a regular participant. Said B S Muralidhara, general manager, Buhler, “The company has been regularly getting a very good response here.”
“The display of machinery helps in facilitating meaningful discussions. It is a good platform for industry stakeholders to come and see the products of so many companies at one single point. It is an extremely good platform for the industry,” he added.
The All India Plastics Manufacturers’ Association (AIPMA) is very happy with the response it has received at the exhibition.
“We have seen an interest for the use of plastics in agriculture, so we too are trying our best to promote it. The visitors, who were not just from Karnataka but also from other Indian states, showed a keen interest in understanding the latest developments in plastics and how it can further help in agriculture,” said Rohit Kanuga, management committee member, AIPMA.
“We have been participating in this exposition for a few years now. We have received a very good response here. Even this year, we had visitors from the retail and distribution sectors and leading companies like ITC and Unilever,” said Bhakti Dakwale, assistant manager, marketing, Hassia Packaging Pvt Ltd.
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