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“Suitable land availability, major constraint in Kerala”
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Monday, 04 May, 2015, 08 : 00 AM [IST]
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fiogf49gjkf0d The state of Kerala is bestowed with top quality resources in regards to food and agriculture industries. Also known to have 100% literacy record, the state has eminent breed of scientists, faculties, social scientists contributing immensely to the Kerala brand. Its natural resources are converted to value-added products. Boosting this food processing industry in the state is Kerala State Industrial Infrastructure Development Corporation (KINFRA). The organisation has been set up to unleash the industrial potential of Kerala. KINFRA is also a nodal agency in the ministry of food processing industries, Government of India, Assistance to States for Developing Export Infrastructure and Allied Activities (ASIDE) scheme and Kannur International Airport.
Thus to attract investments and motivate entrepreneurs to set up new businesses in food processing industry, the organisation is soon going to start its work for the new food park project at Palakkad. Dr G C Gopala Pillai, MD, KINFRA, in an email interaction with Harcha Bhaskar talks about Kerala’s food processing industry, scope for its development, infrastructure and new mega food park’s contribution to the food industry and state as a whole. Excerpts:
How big is the food processing industry in Kerala? How much is its contribution to Indian economy? Which are the major products processed? Food processing is a significant industrial sector in Kerala. Even in pre-Independence era, Kerala was dealing with substantial trading of spices to various parts of the world. This trend continues even today, and the major traditional industries of Kerala such as cashew, marine products etc. come under the food processing sector. Due to its significant contribution to exports, Kerala has gained the status of being a leading state in food processing for a long time.
No formal market research has been undertaken to ascertain the exact size of the food processing sector of the state, but it is roughly estimated to be around 3.5 to 5.0% of the national food processing sector. The share of food processing sector in the GDP in agriculture is 12.2% and in the GDP in manufacturing is 9.8% (2012-13).
The major products processed are spices, cashews, fishery products, tea, coffee, milk etc. Preparation of ethnic products, bakery and snack product preparation, fruit drinks and beverages, jams, rice-based products and rice bran oil, edible oils, spice mixes, ready-to-eat preparations etc. also are various processed products from the state catering to the local as well as export markets.
According to you, what are the foods native to Kerala that are yet to be tapped by food processors & exporters? There is huge potential for value addition in coconut, jackfruit, tapioca, fruits like banana and pineapple. Major coconut processing is still done in the traditional way, though in recent times innovative products like virgin coconut oil, coconut powder, coconut cream have been introduced in the market by the food processing sector of the state. Neera is one product having huge potential and being promoted by the state government. Kerala has the highest per capita meat consumption in the country and yet meat processing is done only to a very small extent. The quantity of milk generated within the state is not enough to meet the needs of the state. Hence there is good potential to increase milk production and its value addition. Processing of fruit and vegetables also holds promise as the state targets to increase production through polyhouse cultivation.
What are the concrete plans of KINFRA for the development of food processing and agriculture industry in Kerala? The ‘KINFRA Mega Food Park’ at Palakkad is a major project being planned by KINFRA for boosting the development of food processing and agriculture sectors in the state. However, the supports provided to food processing sector by KINFRA are not fully restricted to food parks alone. Depending on specific needs of entrepreneurs, KINFRA has been providing land for setting up food processing units in its other industrial parks across the state.
KINFRA has played a pioneer role in development of the food processing sector in Kerala. To its credit, there are five food parks exclusively for the food processing sector in Kerala i.e. Food Parks at Kakkancherry in Malappuram District, Mazhuvannoor in Ernakulum District, Adoor in Pathanamthitta District, Aroor in Alappuzha District and one exclusive Special Economic Zone (Agro Based Food Processing) at Kakkancherry. All these food parks are fully functional. Being the state nodal agency for MoFPI, Government of India, KINFRA has also extended various incentives for stakeholders of the food processing sector.
How is the recently launched food park at Kanjikode, Palakkad, developing? At what stage is the development going on? By when will be the food park be fully operational? The ‘KINFRA Mega Food Park’ at Palakkad was conceptualised by KINFRA and a proposal for financial assistance was submitted to MoFPI, Government of India, under the Mega Food Park Scheme. The MoFPI has recently approved the proposal and has issued ‘In-Principle Approval’ for the ‘KINFRA Mega Food Project.’ The developmental work at the site is expected to begin in October 2015 after completing documentary formalities as required by the ministry. The project is targeted to be operational by January 2018.
How big is the food park? How much is the total investment? How much is contribution of government in it in regards to subsidy, investment and so on? The ‘KINFRA Mega Food Park’ is coming up in an area of 73 acre in Palakkad (Elapully and Pudussery villages). The land is already in possession with KINFRA and hence there will not be any delay on account of any acquisition related matters. The total project cost is Rs 122.00 crore. The assistance from MoFPI, GoI, is Rs 50.00 crore.
What are the various modern technologies and facilities established in this food park for food processing? The developed land will be allotted to prospective entrepreneurs from the food processing sector for setting up units with modern technology and facilities. Apart from this, KINFRA proposes to set up common facilities with modern technology in the form of Quality Control Laboratories, Cold Storages, R&D Facilities, Packing Centres, Reefer Trucks, Water Treatment Plant, Effluent Treatment Plant etc. Other facilities include Standard Design Factory Buildings, Warehouses and support facilities like Rain Harvesting, Working Women’s Hostel etc.
How will farmers, retailers, food processors, exporters benefit from the food park? The project envisaged is a Mega Food Park and for this reason it would be servicing the entire region around the location. The farmers would be benefitted through a linkage by setting up Primary Processing Centres (for pre-processing activities) and Collection Centres (to facilitate collection of produce). This would reduce the role of middlemen, which is one of the important reasons for low farmgate prices. The retailers are benefitted as they can directly procure value-added products from the units in Mega Food Park and fresh produce from Primary Processing Centres/Collection Centres, without depending on middlemen. The exporters are benefitted as they can set up units in the park at Palakkad which has good connectivity with airports/seaport.
Which are the major food products that would be processed/manufactured in this park? Coconut-based products, tapioca-based products, fruit-based products, spices-based products, rice-based products, ready-to-cook and ready-to-eat products are potential products ideal for processing in the park.
How much employment will the park generate in the coming year? Projected employment is 4,550 direct employment and 12,880 indirect employment.
What are your future plans for the food processing industry in Kerala? There is tremendous scope for food processing sector in Kerala. KINFRA’s own experience in setting up five food parks is a proof of the potential in the sector. Suitable land availability is a major constraint in Kerala. KINFRA is keenly on the lookout for suitable land for the next project.
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