Crop Biotechnology News

Chennai -- India, the world's third largest food producer, has the potential to become the top-ranking country in food production ,Union Minister of State for Food Processing Industries (Independent Charge) Subodh Kant Sahai said today.

The total food production was likely to double in the next ten years, given that food and agriculture contributed 26 per cent of the country's GDP, he said, in his inaugural address at the four-day 'Foodpro 2005' CII seminar here.

Seeing an opportunity for large investment in technology, skills and equipment, he said there was scope for improving efficiency and reducing current wastage and losses in the complete food chain in every state.

The Ministry expected a significant increase in value-addition and processing levels in the Tenth Plan, he said.

Forseeing a great future for biotechnology application in the sector, he said the use of biotechnology was becoming more common in the food processing sector. It had succeeded in improving agriculture by increasing productivity, improving varieties of food and producing better breed by recombination of genes in the offspring.

''Biotechnology has now made it possible to make very precise changes to the genetic material for application of genetically modified organisms,'' Mr Sahai noted.

Mr Sahai said the vision document, for guiding the policy and programmes to strengthen the sector, was expected to help in realising the aim of increased food processing levels. This would also help learn from the experience of other countries that had done well in the sector, he said. The Indian food processing industry was all set for a major thrust, he said, citing the case of a rapid economic growth and the increased disposable income of the huge urban and rural middle class population.

An average Indian spent 52 per cent of his income on food.This meant that a larger proportion of the increased income would be set apart for consumption items.

There was a change in perception about the appropriate methods for ensuring ''healthy food'' for all, the world-over and technical barriers like difference in health and sanitary regulations could complicate or restrict bilateral trade in agricultural products, food and beverages.

So, attempts to ensure food safety had often served as trade barriers, both intended and unintended, he said.

Anticipating stringent food regulation in the international market, thrusting more challenges on the domestic industry, Mr Sahai said the responsibility and accountability of manufacturers would go up due to increasing consumer pressure groups.

The availability of processable raw material was a crucial issue, seriously affecting the health of the processing industry. As the processing industry was being dictated by the market situation of various agri-products, the sector suffered from the inability of having a planning for sustained production. ''This problem is very acute in the horticulture-based industry,'' he added.

Mr Sahai said to ensure that the right quality and quantity of raw material was available to the processors, the most suitable method in the Indian context appeared to be to procure the raw material directly through contract farming.

Observing that multiplicity of food law and agencies had been an impediment for the sector's growth, Mr Sahai said the Food Safety and Standards Bill 2005 was awaiting the Parliamentary Standing Committee recommendations before the bill was passed. Rationalisation of tax on processed food items was another thrust area for the Ministry, he said adding the issue would be taken up with the Finance department besides other state governments and agencies.

The industry must provide actual data and the real impact of these taxes on food items. Also, the possible benefit which would accrue to the farmers and the consumers if the taxes were reduced, he said.

Assuring that the recommendations of the conference would be considered for policy framing, Mr Sahai expressed confidence that the event would lead to a number of business tie-ups being forged.