The Hindu Business Line : `Big scope for processed food industry'

The park will offer innovative service to small-scale and women entrepreneurs in the food processing sector. Currently, we have about eight tiny sectors already in place that have invested close to Rs 25 lakh each and three medium units. The idea is to help the small entrepreneur to produce, distribute and market standard products to the consumers. The entrepreneurs can be from the field of production, marketing, logistics/distribution or innovative entrepreneurs with new food product concepts, as some of the units are manufacturing products based on regional recipes.

The first phase of the park, set up in Shirwal, about 55 km from Pune is in the completion stage and an investment of close to Rs 16 crore has already been pumped into it. Of this about Rs 8 crore has come from the internal accruals and Rs 4 crore as loan element from SIDBI. The Ministry of Food Processing has sanctioned Rs 4 crore to develop common facilities. Chordia Food Park will also initiate tie-ups with similar Government bodies for the benefit of constituent units.

The park has a full-fledged product development centre, an ultra-modern analytical and quality control lab, cold storage system with a capacity to store 3,000 tonnes of processed food and warehouse, effluent treatment plant and pilot plant which these entrepreneurs are utilising.

The common facilities have been in operation for some time now and depending on the requirements, the second phase would begin its development.

The park has about 110 acres and currently only about 20 acres have been developed. This is the first of its kind in the private sector. It is also creating a marketing network of cash-and-carry shops; the first shop is already operational in Pune city, while a launch of these shops is being planned at major towns in the State.

How many food parks are already in operation in India?

Currently, about 30 food parks have been identified of which about five of them are already in the commercial phase. The rest are in the implementation stage such as the wine park to be set up in Maharashtra and the seafood processing park to be set up in Kerala.

The rest of these food parks would be in their commercial phase within a couple of years.

What are the food processing segment value and its potential?

Currently, it is about Rs 600 crore, which includes both the organised and unorganised and the potential for this at least 10 times higher, it can touch up to Rs 6,000 crore if proper infrastructure and facilities are provided. This is from the units in and around Pune such as Gits, Weikfield (mushrooms, sauce and custard), Venky's (poultry products), Desai Brothers (Mother Recipe's pickles) and Chitale Bandhu (dairy products).

We also have to take into stock the amount of wastage that is seen, close to Rs 50,000 crore, which can be brought down with better economic returns to the farmers.

There is bright future for processed food, fruits and vegetables in the country. Currently, the processed fruits and vegetable production is less than one million tonnes as compared to the availability of 136 million tonnes.

What is the initiative SIDBI is coming up with??

SIDBI has decided to set up 10 such clusters in various segments and Pune has been chosen for the food cluster. The food cluster is the first of its kind from the Government sector and would be funded from the corpus of the World Bank-led Rs 450-crore credit assistance scheme.

A committee consisting of the industry people, members from SIDBI and from the Ministry of Food Processing has been set up and are evaluating the project report. We are pushing ahead for the project to be implemented soon and are looking at a timeframe of less than one year for the entire project to kick off.

The idea is to have the smaller units in the food processing sector to join the cluster and utilise the common infrastructure facilities. More than the credit facility, it would also allow the SSI units access to price information, market research inputs, technology upgradation besides testing facility.

What is the future of the food parks?

According to the five-year Plan that has been drawn, the Ministry of Food Processing is looking at contribution from this segment to touch 10 per cent by 2010 from the present two per cent. If this has to be achieved, a viable proposition like the setting up of food parks where the common infrastructure can be utilised have to be speeded up.

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