A Presentation By

Tarun Bajaj

AGRICULTURAL AND PROCESSED FOOD PRODUCTS EXPORTDEVELOPMENT AUTHORITY

NEW DELHI

INTRODUCTION

INDIA - A SNAP SHOT

INDIA’S AGRO EXPORTS

INDIA A GRAND PROCESSED FOOD

BAZAR

CONCLUSION

STRUCTURE OF THE PRESENTATION

– GDP Growth Rate 6 %– Inflation 6.0 %– Foreign Reserves 45 Billion USD– Agro sector contributes one third

of GDP

Overview of Indian Economy

Growing Economy

– GDP Growth Rate 6 %– Inflation 2.02%(Oct. 99)– Foreign Reserves 45 Billion USD– Export Growth 5% (Apr-Aug.)

INDIA - A Snapshot

• By far the most richly endowed agricultural nation in Asia

• Has more aerable land than China and almost as much as East & South Asia 169 million ha aerable land

• 12 month sunshine, variable soil texture & good irrigation system.

• 6 Agro climatic zones covering tropical, sub-temperate & temperate climates.

• Agro- Sector contributes one third of GDP.

INDIA - A Snapshot

Product World Position Production % World India Share

(In Mill. M.T)• Tea I 2.9 0.87 30.0• Milk I 546.00 68.00 12.5• Cattle Population* I 1318.00 209.00 15.8• Cashew II 0.9 0.40 44.4• Sugar II 124.00 14.23 11.4• Fruits II 434.70 043.00 9.8• Vegetables II 606.05 070.00 11.5• Rice (Paddy) II 563.00 122.00 21.6• Wheat II 588.84 66 .00 11.2• Emerging Products:

– Cut Flowers– Eggs & its Products– Alcoholic Beverages Source : Fao 98, NHB– Frozen / Freezed Dried Vegetable & fruits *(In Mill.nos.)

Production Of Major Items In India

Agro Sector• Qualified manpower• Excellent extension and R&D network

– 20 Agriculture University

– ICAR, IARI, IHRI, CFTRI

• Fruits & Vegetables production 116 million MTS:48 million MTs of Fruit and 68 milliom MtS of Vegetables

• 3rd largest producer of food grain production 191 million MTs million MTs of Rice and 65 million tonnes of Wheat

INDIA- A Snapshot

• India - one of the world’s largest food factories

• Produces as much as USA

• Crop out put China 856 MT

USA 608 MT

India 601 MT

Aspires to be number ONE

Food Industry In India

95-96 to 01-02

60276840

6400 61005404

5800

0

2000

4000

6000

8000

95-96 96-97 97-98 98-99 '00-01

'01-02

VALUE in Mill USD

India’s Agro Export Performance

01-02

VALUE 5800 Mill USD

India‘s Agro Export Basket

Slice 70%

Marine25%

Rw Cotton1%

APEDA33%

Tea8%

Cashew7%

Tobacoo3%

Spices6%

Coffee5%

O il meal12%

America USA, Canada

Europe UK, Germany, France, Switzerland, Spain, Netherlands, Belgium, Sweden

Middle East Saudi Arabia, UAE, Kuwait, Bahrain, Qatar, Oman, Yemen, Jordan, Lebanon

Asia Malaysia, Singapore, Maldives, Bangladesh,

Srilanka, Hong Kong, Indonesia, Nepal

Africa Mauritius, South Africa, Kenya, Egypt

Others Russia, CIS, Poland

DESTINATIONS

• Pickles

• chutneys

• Papads

• Curries

Spices Based Ethnic Products

Ethnic Snacks• Bhujia• Savouries• Vegetarian Instant Mixes• Sweets

Nuts• Pea nuts• Cashew nuts• Walnuts

Traditional Basket

• Integrated units

• Introduction of state of the art technology

• International packaging

• Quality Assurance System in place

Processed Foods a New Chapter

• USD 7,000 million industry• Accounts for 28% of GDP AND 61% of employment• Food processing is By far largest than the entire

manufacturing sector - is expected to grow from 21.4 Bn $ to 62.5 Bn $ by 2005

Food Industry In India

Blending of Continental flavours• IQF: fruits & vegetables - Baby corn , Bell pepper,Lettuce

• Alcoholic spirit & beverages -Wines, Beer

• European pickles– Gherkins in brine or vinegar

– Green peppers in brine

• Export destinations -Frozen & Preserved vegetables : UAE, Saudi Arabia Kuwait, Bahrain, Singapore,

Russia, Canada, UK, USA,Switzerland. Belgium, Singapore, Malaysia, Germany,

Netherland, UK, Spain, France, Denmark, USA

Processed Foods

• Pepsi Inc• Kellog Co.• Nestle Ltd.• Alfa Laval• Dalsem• Agrolimen• Ovobell Ltd.

• Mc Dowell Corp.• Coca Cola• Cadbury• Fosters Brewing• Cargil• Conagra

Food Industry In India

Foreign Direct Investments

Total Investments

(Jan.’91 - Apr. 99) 56.2 USD Billion

• Food Processing 2.4 USD Billion

• Agro Sector 0.77 USD Billion

Government policy

13 13.1 14.912.2

20.9

16.5

0

5

10

15

20

25

95-96 96-97 97-98

QTY 000 MtsVAL Mill $

Export Destinations : U.A.E.,U.K.,U.S.A.,SAU,Netherlands,Germany,

Canada,Russia,Kuwait,Australia,Singapore,Belgium

Export of Chutneys (95-96 To 97-98)

2.5 2.4

3.43.8

3.4 3.6

0

0.5

1

1.5

2

2.5

3

3.5

4

QTY 000 MtsVAL Mill $

Export Destinations : U.A.E.,U.K.,U.S.A.,SAU,Netherlands, Oman,

Canada,Kuwait

Export Of Pickles

(95-96 To 97-98)

7.4

11.5

7.7

12.6

6.4

10

0

2

4

6

8

10

12

14

95-96 96-97 97-98

QTY 000 Mts

VAL Mill $

Export Destinations : U.K.,Singapore,Malaysia,U.S.A.,SAU,

U.A.E.,Canada,Kuwait,Australia, South Africa,Germany,Oman Etc

Export Of Papads(95-96 TO 97-98)

Mangoes

Guavas

Lychees

Papaya

Banana

TROPICANA TROVE Fruit Pulps & Concentrates

Item Production Share of India India’s (in ‘000MT) in the world Position

India World

Mangoes 12,000 23,455 51.1 1 Bananas 10,200 58,618 17.4 1 Pineapples 1,100 12,100 9.0 3 Guava 620 7,786 3.0 4 Oranges 2,000 66,212 4.0 Apples 1,200 53,672 2.4 9 Grapes 700 57,397 1.2 15 All Fruits 43,000 4,13,932 9.8 2Source : FAO Total Fruit Production : 43Million MT,

NHB 99

Production of Major Fruits in India

PRODUCTION OF MAJOR

VEGETABLES IN INDIA Item Production Share of India India’s (in ‘000MT) in the world Position

India World

Potato 17,942 2,94,834 6.08 5 Onion 4,058 35,644 11.38 2 Tomato 4,800 84,873 5.65 5 Cauliflower 4,800 12,725 37.72 1 Cabbages 3,300 46,656 7.00 3 Green Peas 270 5,214 5.17 2 All Vegs. 64,672 5,65,523 11.43 2 Source FAO

• Export according to EU quality standards

• Diverse Variety of Bee Flora like organic,Lychee,Karanj and Orange Blossom

• No pesticide residue in Indian consignments

• Production / Packaging standards notified and sent to EU commission

• Procedures formulated to ensure any possible presence of pesticide residue.

Honey

19.522

29.5

0

5

10

15

20

25

30

Qunntity in Mill Tons

Spices Production

Chillies23%

Celery2%

Coriander5%

Spice oils25%

Curry Powder4%

Turmeric14%

Fennel2%

Cumin7%

Misc Spices8%

Pepper1%

Ginger5%

Fuengreek4%

Total Exports : 234 Mill USD

Spices Exports

“We believe in Quality and work for it”

Movement For Quality

Quality Building• Standardization of pre &

post harvest practices

• QM & QA for processed food sector (HACCP, ISO 9000 ISO 140000

• Information data bases

• Human resource development– Quality improvement

projets(VHT,X-Ray,CA Containers etc.)

Quality Assurance• Upgradation &

recognition of test labs

• Assisting Exporters establish In-House QC Labs

• Certifying Exporters as premium quality Exporters

• Suppliers QA Programme

Movement For Quality

• Extending the shelf life of mangoes, shipment of two consignments of mangoes - from India to U.K. using controlled atmosphere (CA Technology).

• Pre harvest management practices, followed in the orchards ,with modification to suit local conditions.

• Export products selected directly from selected orchards

• Trans shipment period - 23 days, total period from harvesting till it was sold, approximately 32-35 days.

• shelf life of mangoes from 30 to 40 days has been achieved in this year’s experiment .

• It is proposed to conduct further trials for both stationery and commercial consignments during the next mango season.

CA Container Experiment

• Production & Packaging standards already under application

• Bar code system followed

• Complete Labelling system describing all contents, nutritional value and additives

• Natural additives used in packaged foods

Packaging & Labelling

Organic Food Products - Advantage India

• Organic farming practiced since centuries

• Cattle fed on natural fodder

• Biomass & Cowdung applied as natural manure

Processed Foods a New Chapter

India : a large producer and exporter of agricultural and horticulture products both in fresh and processed forms.

Organic Foods Current Situation in India

(Figures in 000 MT)

Items Production Exports % age

Rice 81700 2511.97 3.07

Wheat 69400 1145.89 1.65

Coarse G. 18000 71.03 0.39

Pulses 14200 55.00 0.38

Fruits & V.116000 716.61 0.61

Honey N.A. 581.00 --

(Source : DGCIS, Economic survey)

Organic-Foods Production & Export From India

Organic Rice : Organic rice ,Sugarcane grown in a 3000-4000 hec Certified organic farms

• Other certified organic farms are small in size ranging from 100 to 150 ha.

• There are organic farms certified by Ecotropic of UK. The total area 2.8 hec. And production 19 MT.

STATUS OF ORGANIC CULTIVATION

• Organic Wheat : Small farms measuring total area of 2600 ha. Producing 645 MT of organic wheat annually.

• Organic Coarse Grains : Great international Demand for organic maize and millet

• Organic Pulses : Organic farms. The total area 302 ha. And production 2935 mts. Certification by Ecotropic.

• Organic oilseeds : Organic soya produced. The total area 444 ha. Certified by Ecotropic UK.

• Organic Fruits & Vegetables : Non-Certified organic farms producing fruit and vegetables exist all over the country. A farm was producing and exporting certified organic fruits and vegetables in dehyderated form.

Indian National Organic Standards based on IFOAM and EU Standards and operating Manuals drawn up for selected Agro Products

• “Indian Organic “ Logo developed for certified organic products from India.

• Proposal for assistance to set up Model Organic Farms for selected Agri-Horti Products in North Eastern part of the country

• assisting setting up of Organic Farm for production of peanuts in Western India

• Ethnic Products

• Exotic Fruits

• High Value Vegetables

• Organic Products

• Spices

CONCLUSION