EXPLORING A GOLDMINE: AGRIBUSINESS

SEMINAR ON FOOD PROCESSING AND AGRIBUSINESS 27TH MARCH 2010

iNDEXTb

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CONTENTS
Introduction ............................................................................................................................................................ 3 Inaugural session .................................................................................................................................................... 3 Agri Inputs and Agri Technology ............................................................................................................................. 4 Agro and Food Processing ...................................................................................................................................... 5 Agri Infrastructure and Cold Chain ......................................................................................................................... 6 Learnings and Way Forward ................................................................................................................................... 6

INTRODUCTION
A seminar on Exploring A Goldmine Agribusiness was jointly organised by Gujarat Agro Industries Corporation Limited and Confederation of Indian Industry on 27th March 2010 at Ahmedabad Management Association Campus, Ahmedabad. The key areas discussed during the seminar included: Main trends and issues being faced by the industry Probable actions to address the issues Progress made by the Gujarat Food and Agro industry Strategies, priorities and specific interventions to accelerate agri-business development Actions for developing value chains to efficiently deliver high quality products while also contributing to broader rural development. Requirements and partnerships to convert strategies into action. Disseminate information about market opportunities both for local and international agribusiness markets to potential entrepreneurs and the public in general

INAUGURAL SESSION
The welcome address and introductory remarks were made by Ms. D Thara IAS, Managing Director, Gujarat Agro Industries Corporation Ltd. Mr. R K Tripathi, IAS, Principal Secretary, Agriculture & Cooperation Department, was the chief guest for the inaugural session. Mr. Piruz Khambatta, Managing Director, Rasna International limited gave the theme address on opportunities in food processing. A special address was given by Mr. S A Patil, Chairman, Karnataka Krishi Mission, to discuss learning and way forward for another green revolution in the country. Some key comments made by the eminent speakers during this session were Focus is required on value addition in this sector. The importance of modern management practices in agri business needs to be realized and evolved. Economies of scale in research and development and bio-technology needs to be achieved the successful example of Monsanto in Bt cotton needs to be emulated. Increased investments are required in agri business, especially in introducing high technology and innovations in all sections of the value chain.

The seminar was divided into 3 parallel sessions: 1. Agri inputs and Agri Technology 2. Agro and Food processing 3. Agri Infrastructure and Cold Chain

AGRI INPUTS AND AGRI TECHNOLOGY

This session discussed the seed requirement, seed quality, seed multiplication and opportunity for seed multiplication in the state. Other points of discussion were Latest technologies that will help in increasing the quality and productivity of seeds. Need for mechanized farming in the state, which is already doing wonders in the developed countries providing more output with less input.

Dr. B R Shah, Director of Agriculture, Gujarat State set the tone for the session by discussing land use pattern and value addition from agriculture sector in the state. District-wise list of major crops and production was discussed. The audience was informed regarding various agriculture related government schemes like Cotton Technology Mission, National Food Security Mission, Rashtriya Krushi Vikas Yojana, Agriculture Technology Management Agency etc. Dr. Shah informed that development in the following sectors and investments are envisaged this year corn-based products, value addition in wheat based products, cotton based products, seed development industries, Organic Production, Biomass based bio-energy etc. The presentation of Mr. K B Patil from Jain Irrigation Systems Ltd., Jalgaon discussed pre-harvest and post harvest management of banana for domestic and export market in terms of care to be undertaken, harvest methods, post harvest handling and transportation. He mentioned that a few companies (The Chiquita, Dole Food Company, Fresh Del Monte, Noboa & Fyffes) together control around 80% of the world banana export. The presentation by Mr. S V R Rao, Sr. Vice President, Nuziveedu Seeds (P) Ltd., Hyderabad focused on R&D and quality seeds. He mentioned that R&D in seeds consists of the following: breeding, biotechnology and seed technology. He mentioned some recent breakthroughs in seed technology like: H x H Cotton hybrids with high quality lint

Maize Single Cross Hybrids Rice Hybrids Hybrids in Many Vegetable Crops Bt Cotton Seed Treatments : Imida & Metalaxyl etc

He mentioned that India with diverse agro-climatic conditions, rich pool of agri-scientists, trained farmers & skilled manpower for seed production and availability of infrastructure for seed production, treatment and processing has the potential to become the seed hub for developing countries and can become a major exporter for agri products. A presentation was made by Mr. Susheel Sankhyan, GM, Agri, Pepsi Foods Pvt Ltd. on farming initiatives of the company. It was informed that PepsiCo partners with different state governments to provide access to latest varieties and agronomic practices for the farming community in multiple crops. Information on PepsiCos tomato initiative, vegetable nursery, chilli program, paddy program, potato program and direct seeding program was provided. It is to be noted that Pepsicos noncontract farming production in Gujarat has increased from 300 MT in 2007 to estimated 15,000 MT in 2010. Mr. Himanshu Trivedi from KF BIoplants Pvt Ltd. made a presentation on tissue culture methodology and floriculture. The following schemes for development and strengthening of infrastructure facilities for production and distribution of quality seeds were also discussed during the session: Assistance for boosting seed production in the private sector Seed Village Scheme Transport subsidy on movement of seeds Establishment and maintenance of seed bank Quality Control Arrangements on Seeds Assistance for creation / strengthening of infrastructure facilities for production and distribution of quality seeds Human Resource Development Boosting Seed Export Use of Bio-technology in Agriculture Promoting Hybrid Rice Seeds

AGRO AND FOOD PROCESSING

Presentations were made on value addition in wheat, peanuts and bananas by experts from Annapurna Foods, Rams Food and Urmin foods.

A very informative presentation on Drip/Micro irrigation was made by Mr. C K Patel, Agronomist from Netafim Irrigation.

AGRI INFRASTRUCTURE AND COLD CHAIN

The session highlighted the need for Agri Clusters, Contract Farming, Agri Export Zones, Pack Houses, Ripening Chambers etc. It was discussed that there is a need to adopt a common facility approach for infrastructure development and strengthening inter-linkages between key elements in the value chain. The session also discussed the challenges faced by the sector with respect to the agri infrastructure including the farmgate, warehousing, post harvest & cold chain infrastructure in the state. Mr. S R Chaudhary, Director, Horticulture, Government of Gujarat made an elaborate presentation on the National Horticulture Mission and agri infrastructure in the state. Mr. Venkatesh Valluri, President, Ingersoll Rand India made a presentation on importance of cold chains in India. Technology challenges with respect to retail, transport, warehousing, distribution center, pack house, integrated food parks and ripening were discussed. The expert informed solutions to these challenges through consulting and education, building local technologies, local manufacturing and supporting government in developing standards. Mr. Sanjay Agrawal, Managing Director, Devbhoomi Cold Chain Limited made a presentation on the profile of the company. He mentioned that the objective of the company is to enable seamless cold supply chain from farm to fork by introducing specialized infrastructure viz. state of the art Retail Distribution Centers and Strategic Distribution Centers.

Mr Sumeet Gupta, DGM (Commercial), Adani Agri Logistics Limited made a presentation on bulk food chain project of Food Corporation of India (FCI). Adani Exports Limited is executing the project. The project is based on BOO basis for a 20-year guaranteed period exclusively with FCI. It was informed that the system is planned to be a complete supply chain management solution. Dr. M K Dhingra, General Manager, NABARD made a presentation on agri-marketing and agroprocessing. He said that several investment opportunities exist in contract farming, warehousing for uninterrupted raw material supply, Common Facility Centers for processing and wholesale / retail market chains & exports.

LEARNINGS AND WAY FORWARD

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Despite excellent potential for growth, a critical constraint in development of agro and food processing industry in Gujarat is the lack of supply chain infrastructure across the entire food chain. It is therefore important that private sector is encouraged to set up complexes with specific extension measures to compliment the Government's efforts at increasing the agricultural yields. While Gujarat possesses competitive advantages in several crops like castor, cotton and horticultural crops such as bananas, mangoes, this advantage is often frittered away due to lack of farmer education in adopting best practices and technology. Therefore, it is important to educate the farmers on the latest technology available at its benefits. Adoption of technology and concomitant investments are required in various areas like cold storage, terminal markets, tissue culture, green house vegetables, floriculture and in cultivation and processing of castor, cumin, fennel, isabgul etc. Gujarat has vast untapped potential in agro industrial sector, which could be used advantageously to achieve multiple goals viz. increased income for farmers, rural industrialization, rural employment, better quality products to consumers. This can be achieved by new investments in agro industries by national / multinational companies. A lot of initiatives are being undertaken by the government to promote the agri sector in the state. 'Food and Agri business' is proposed to be one of the Focus Areas during the worlds biggest investor meet and networking event - Vibrant Gujarat 2011 to be organized by the Government of Gujarat. The event is scheduled to be held on 12th & 13th January 2011 at Mahatma Mandir, in Gandhinagar in Gujarat. Gujarat Agro Industries Corporation Ltd. (GAIC) is presently involved in developing various agri infrastructure projects as under: (1) Integrated Pack House facility at Naroda, Ahmedabad (2) Centre for Perishable Cargo at SVP International Airport, Ahmedabad (3) Banana Pack House at Jaghadia, Bharuch District and Two Collection Centres at Vavdi & Jaghadia. (4) Cold Storages in Tribal Areas at Barthad, Nana Pondha, Jetpur & Jaghadia (5) Gamma Irradiation Project at Bavla, Ahmedabad district for fresh & processed food products (6) Hi-tech Cold Storages for Potato at Deesa, Dist. Banaskantha and for Onion at Mahuva, Dist. Bhavnagar, (7) Tomato Cluster Development Project, Bavla, Dist. Ahmedabad. Several more such projects are in the pipeline. Strong institutional mechanisms, fillip to food parks and strong market linkages along with better infrastructure and use of technology are all important for promoting the industry and taking it to greater levels.