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Maharashtra State food processing policy - Road ahead
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Tuesday, 29 June, 2021, 13 : 00 PM [IST]
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Shivranjani Gupta
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Maharashtra is one of the most industrialised States in the country. The two big cities, Mumbai and Pune are the major manufacturing hubs in India.
Apart from this Maharashtra is also one of the forerunners in terms of agricultural produce. The state is blessed with nine agro-climatic zones, typical monsoon climate and diverse weather conditions that facilitate the cultivation of different agriculture crops. Some of the major crops produced in the state include rice, pearl millet, pulses, jowar, soybean, groundnut, sugarcane, sunflower, cotton. Banana, mango, grapes, onion, tomato, citrus, pomegranate, papaya, orange, etc. are some of the major fruits and vegetables grown in Maharashtra. The grape capital of India, Nashik contributes to more than 50% of the grape exports of India. The state holds the top position in production of fisheries in the country.
Advantages of Maharashtra
Since the state has a strong presence in agriculture and abundant availability of raw materials prepare a ground for flourishing the food processing industry in the state. To the extent that the Maharashtra Industrial Policy-2019 has identified the food processing sector as one of the thrust sectors for the state.
Things that work in favour of the state are:
• World-class infrastructure, abundant availability of raw materials and human resources
• The capital city Mumbai has major corporate firms and financial institutions
• 2nd largest populated state with abundant workforce
• The state is the largest contributor to India’s economy
• 720 km of coastal line and 9 agro-climatic zones
• Robust logistic facilities, connectivity with all major cities in the country
In all there are four major factors that play a role in the growth of the food processing sector: A strong domestic demand due to changing lifestyle and food habits due to increased disposable income. Secondly, the high level of agricultural production-- wide variety of crops, large livestock base, inland water bodies and a long coastline aids in rise of marine production. Thirdly, proximity to key export destinations and greater integration with the global economy has increased the export opportunities. Lastly, there have been proactive government policy and support for the sector.
Government initiatives to push the sector
To promote the food processing industries in the state, Government of Maharashtra provides a lot of incentives to the food processing sector. Fruits and vegetables, dairy sector, fishery, meats, poultry, rice milling, pulse processing are the sectors eligible for the schemes.
• Electricity duty exemption
• 50% land-related concession
• Stamp duty and registration fee exemption
• 5% subsidy on capital equipment for technology upgradation
• 5% interest subsidy on loans for fixed capital investment for 5 years
• Financial assistance to setup for new plant
• Monetary aid for modernization and expansion of the food processing industries
Development of related infrastructure
Maharashtra has an immense opportunity for the food processing industry. It has eight food parks at Aurangabad, Nagur, Latur, Ahmednagar, Nasik, Osmanabad, Ratnagiri, and Nanded with world-class facilities for cold storage, test laboratory, warehousing, and advanced packaging. Maharashtra is also home to three wine parks and three floriculture parks.
In the NABARD status report for year 2015-16 it was stated that the food processing units would help Maharashtra to process 40 per cent vegetables and 30 per cent fruits, which are wasted due to lack of infrastructure. The inadequate food processing sector also is a primary reason for poor remunerations farmers get. They cannot bargain in absence of robust market linkages.
In 2016, with Centre’s decision to allow 100 per cent Foreign Direct Investment (FDI) in the food processing sector, the agro-industrial investments in Maharashtra got a big boost. Maharashtra has been listed by the Union Ministry of Food Processing among the states that have potential to derive maximum benefits from policy reforms in food processing. Among the four states, including Haryana, Punjab, and Andhra Pradesh, Maharashtra leads with 40 per cent produce in horticulture produce in the country.
In a recent move to provide more benefits to agro-based food processing units, Maharashtra Government took the decision to relax the eligibility criterion to help more firms to be considered as large and mega projects. The move was aimed at providing the benefit of industrial promotion subsidy scheme. Grading the criterion has been made based on the areas where the investment will be made; the government said has identified that maximum benefits to be given to units investing in districts such as Osmanabad, Nandurbar, Gadchiroli, and Hingoli.
Road Ahead
Recently Chief Minister Uddhav Thackeray announced setting up of a food processing industry on 500 acres of land and a skill development complex in Aurangabad district. To be set up in Bidkin (Delhi-Mumbai Industrial Corridor), about 100 acre will be reserved for women entrepreneurs. Such developments, not only strengthen the industrialists and farmers through development, but also the new industries open up more job opportunities. A skill development complex will also be set up in Shendra for local youth. As compared to other states, Maharashtra is among the major beneficiaries of Kisan SAMPADA (scheme for agro-marine processing and development of agro-processing clusters) introduced by Centre.
Going forward, there are several benefits of the adoption of food safety and quality assurance mechanisms such as Total Quality Management (TQM) including ISO 9000, ISO 22000, Hazard Analysis and Critical Control Points (HACCP), Good Manufacturing Practices (GMP) and Good Hygienic Practices (GHP) by the food processing industry. Such measures can enable the industry to adhere to stringent hygiene and quality norms to protect consumer health and prepare the industry to face global competition. These initiatives also enhance product acceptance by overseas buyers and keep the food processing industry technologically abreast of international best practices.
(The author is chief marketing officer at Conscious Food)
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