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Proper infra backbone of thriving food processing sector
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Tuesday, 31 December, 2024, 12 : 00 PM [IST]
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Priyanka Kale & Dilip More
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Food infrastructure is the foundation required for the production, processing, storage, distribution, retailing, consumption and waste management of food within the local food system. Food infrastructure covers everything needed in the food supply chain of activity between the consumer and the producer. These supply chains include: Production (e.g. seeds, equipment) Processing (e.g. canning, washing, freezing food).
Food infrastructure covers everything needed in the food supply chain of activity between the consumer and the producer. These supply chains include:
- Production (e.g. seeds, equipment)
- Processing (e.g. canning, washing, freezing food)
- Aggregation and distribution (e.g. storage facilities and delivery trucks)
- Retailing (e.g. grocery stores, restaurants)
- Marketing (e.g. promotional materials including billboards and commercials)
- Capital (includes financial, natural, human and social capital)
Infrastructure in the food processing sector is essential for efficiently converting raw agricultural products into processed goods, ensuring minimal waste and maximum quality. The critical components of this infrastructure include:
1. Cold Chain Facilities - Cold Storages: Facilities to store perishable products like fruits, vegetables, dairy, and meat at optimal temperatures.
- Refrigerated Transportation: Vehicles designed to maintain controlled temperatures during the transport of perishable goods.
- Integrated Packhouses: Units combining storage, sorting, grading, and packaging under one roof.
2. Processing Units
- Factories for cleaning, drying, milling, and packaging raw products into processed or semi-processed forms, such as frozen vegetables or ready-to-eat meals.
- Specialised units for meat, dairy, beverages, and bakery items?
3. Storage Facilities
- Dry Storage: Warehouses for grains, pulses, and other non-perishable commodities.
- Controlled Atmosphere Storage: Facilities with regulated oxygen, carbon dioxide, and humidity levels for specific products like apples and nuts?.
4. Supply Chain Infrastructure
- Efficient logistics systems for moving products from farms to processing units and markets.
- Access to ports, highways, and railways for domestic and international trade?.
5. Research and Development Facilities
- Labs for testing food safety, quality control, and developing innovative products.
- Institutes for training workers and farmers on modern techniques?.
6. Utilities and Support Systems
- Reliable power supply and water systems for operations.
- IT-enabled infrastructure for tracking, monitoring and managing supply chains?.
7. Market and Export Infrastructure
- Food parks that centralise facilities for processing, storage, and marketing.
- Export hubs to support international trade?.
Investment and advancements in these areas are critical for enhancing efficiency, reducing food waste, and increasing the economic contribution of the food processing sector.
Why there is need of proper infrastructure in the food processing sector?
The need for proper infrastructure in the food processing sector is critical because it plays a pivotal role in ensuring food security, reducing waste, enhancing the economy, and promoting public health.
1. Reduction of Post-Harvest Losses
- Inadequate storage, transport, and processing facilities often lead to significant post-harvest losses.
- Proper infrastructure such as cold storage, warehouses, and logistics ensures that perishable items like fruits, vegetables, and dairy products do not spoil before reaching the market.
2. Value Addition to Agricultural Produce
- Food processing involves converting raw materials into higher-value products (e.g., turning wheat into bread or tomatoes into ketchup).
- Adequate infrastructure helps farmers and businesses maximise the economic value of agricultural output.
3. Boosting Farmer Income
- A well-developed food processing industry with access to infrastructure can help farmers get better prices by creating market linkages and reducing intermediaries.
- Infrastructure like processing plants and collection centres enables farmers to diversify into higher-value crops.
4. Job Creation and Economic Growth
- The food processing sector has the potential to generate significant employment opportunities.
- Well-planned infrastructure, including industrial zones and processing hubs, attracts investment and drives regional development.
5. Encouraging Export Potential
- Proper food processing infrastructure ensures that products meet international standards for quality and safety, making them suitable for export.
- It also allows for the production of packaged and branded goods, enhancing their competitiveness in global markets.
6. Ensuring Food Safety and Quality
- Infrastructure like modern processing units, laboratories for testing and facilities for proper packaging is vital for maintaining food hygiene and safety standards.
- This prevents contamination and reduces the risk of foodborne illnesses.
7. Promoting Sustainability
- Efficient processing reduces waste by utilising by-products (e.g., using orange peels for essential oils).
- Infrastructure for waste management and recycling further supports environmental sustainability.
8. Facilitating Supply Chain Efficiency
- An integrated supply chain with cold chains, transport, and distribution networks ensures timely delivery of processed food to markets, reducing delays and maintaining freshness.
9. Supporting Urbanisation and Changing Lifestyles
- With urbanisation and a shift towards convenience foods, the demand for processed and ready-to-eat food is rising.
- Infrastructure ensures that this demand is met efficiently without compromising quality.
10. Government and Policy Support
- Many governments, including India's, emphasise food processing as a priority sector.
- Proper infrastructure aligns with policy goals like Make in India, Atmanirbhar Bharat, and food security initiatives.
In conclusion, proper infrastructure is the backbone of a thriving food processing sector, driving efficiency, profitability, and sustainability while benefiting farmers, businesses, and consumers alike.
Challenges faced by food processing sector due to inadequate infrastructure
The food processing sector in 2030 faces significant challenges due to inadequate infrastructure, particularly in countries like India. Key issues include:
- Insufficient Cold Chain Infrastructure: A major gap exists in cold storage facilities, refrigerated transportation and integrated packhouses. This inadequacy leads to substantial post-harvest losses, particularly for perishable items like fruits, vegetables and dairy products. Current facilities often cater to single commodities, leading to inefficiencies during off-seasons?.
- Fragmented Supply Chains: The food supply chain, from farms to markets, is often inefficient. A lack of streamlined logistics and modern processing systems results in significant wastage of agricultural produce.?
- Uneven Regional Development: While regions like Maharashtra and Gujarat in India are leaders in food processing, other areas, especially in the east and northeast, lag due to a lack of infrastructure and investment.
- Technological Gaps: Compared to developed countries, the food processing industry in emerging economies relies on outdated methods. Modernisation and innovation are needed to boost efficiency and reduce losses?.
Efforts to address these challenges include government initiatives like the Pradhan Mantri Kisan Sampada Yojana in India, aimed at boosting infrastructure, reducing waste, and increasing the sector's contribution to GDP. The development of robust cold chains, policy reforms, and increased private investment are crucial for the sector to reach its full potential by 2030.?
Impact of Infrastructure Deficiencies
- Economic Losses: Wastage of produce results in lower income for farmers and reduced GDP contribution from agriculture and food processing.
- Food Insecurity: Loss of agricultural output due to poor processing leads to scarcity and higher food prices.
- Reduced Competitiveness: Countries with inadequate infrastructure struggle to compete with those having advanced processing facilities.
(Kale is research scholar, College of Food Technology, VNMKV, Parbhani; More is associate professor, College of Food Technology, VNMKV, Parbhani)
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