FNB News - Thiruvananthapuram hosts Agri & Food Processor Conclave, organised by ASSOCHAM

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Thiruvananthapuram hosts Agri & Food Processor Conclave, organised by ASSOCHAM

Saturday, 24 September, 2016, 08 : 00 AM [IST]

Our Bureau, New Delhi

The food processing sector is indispensable for the overall development of an economy as it provides a vital linkage and synergy between agriculture and industry. This was stated at the Agri & Food Processor Conclave, organised by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) in Thiruvananthapuram.

In India, the food sector has emerged as a high-growth and high-profit sector due to its immense potential for value addition, particularly the food processing industry.

E M Najeeb, chairman,ASSOCHAM Council of Kerala Development,welcomed PSathasivam, governor of Kerala; K V Shaji, chairman, Kerala Gramin Bank; Raja Sethunath, chairman, Kerala Chamber of Commerce and Industry (KCCI),Om S Tyagi, senior director, ASSOCHAM, delegates, press and media.

Delivering the welcome address, he said that the food processing sector accounted for 32 per cent of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth.

Kerala’s perspective on the processed food market is currently estimated to be of Rs305 crore and the potential of processed food industry is estimated to be Rs 30,000 crore. The state is the major producer of spices contributing to 97 per cent of the country’s pepper production.It also accounts for 70 per cent of cocoa production, 25 per cent of the country’s coffee,16 per cent of cashew production and 35 per cent of cashewnut processing units.

Sethunathsaidagriculture was the mainstay of Kerala’s economy. “The state has a well-developed agricultural network and attempts are being made to automate the agro development process by the state government.”

“The state is one of the leading producers of spices like ginger, cardamom and pepper in the country and also produces a considerable proportion of the nation’s cashewnuts. The state also has a rich plantation culture and is home to various tea and coffee plantations,” he added.

“A considerable proportion of the plantation produce is traded. Due to such a large number of high-value agricultural crops being produced in the state, the state forms an important part in the commodity trade of the nation,” Sethunath said.

Shajisaid that besides the industrial policy, the state agriculture department had adopted a proactive approach towards developing and modernising agriculture in the state and had come out with an exhaustive policy document to shape the future of agriculture in the state.

He also mentioned some of the initiatives taken by the bank, whose main focusis to initiate appropriate intervention for overall economic upliftment of the people of Kerala by giving financial assistance to the sectors like agriculture, micro, small andmedium enterprises (MSME), education, housing, micro-credit, weaker sections, SC/ST communities etc.

Sathasivamsaid that agriculture was one of the major sectors of Kerala’s economysince it contributed around 50 percent of the gross income of the state.Over the past few years, there has been an increase of nearly a hundred thousand hectares in the total cropped area of the state. Several crops are cultivated in Kerala. Rice is the main food crop.

In recent times, government agencies, social organisations, political parties, women's organisations and farmers' self-help groups are all participating in what is becoming an organic farming revolution in the state.

Kerala's food processing industry serves two markets - the fast emerging domestic market and the steady-growing export market. The government's industrial policy seeks to convert Kerala into a favoured destination for agro processing.

The availability of raw materials, especially spices and sea food; the availability of skilled and trained manpower; the availability of high quality water and power; a very active local market; a vibrant retail chain; the successful track record of existing players and a very large expatriate community, ensuring a captive market abroad areKerala’s advantages.

Tyagi delivered the vote of thanks, speaking about Kerala’s rich agricultural economy. The state is the land of coconutpalms. The cultivation of pepper, which dates back centuries to link Kerala with many far-flung lands, maintains those links even today. Pepper from Kerala is exported to more than 60 countries. Cashew is another most cultivated crop and a big earner of foreign exchange. Interestingly, nearly 80 per cent of the cashew factories in India are located in Kerala and provide employment to more than 125,000 workers.

Other speakers who addressed the conference includedRanjan S Karippai, managing director, Kerala State Horticultural Products Development Corporation Limited (HORTICORP); Baiju Kurup, deputy general manager, National Bank for Agriculture and Rural Development (NABAR), Kerala; Nitin Gupta, head, strategic initiatives, Ozone Group; Hargovind Sachdev, general manager (BS&RB), State Bank of Travancore; Geetha Philip, deputy director, agriculture, State Agricultural Management and Extension Training Institute (SAMETI) andK Divakaran, director, Vazhakulam Agro and Fruit Processing Company Limited.