Excellencies,
Captains
of business and Industry,
Ladies
& Gentlemen,
I
am happy to be a part of this august gathering of global leaders and decision
makers of the Food Processing Sector. I welcome you all to World Food India
2017.
This event will provide you a glimpse of
the opportunities that await you, in India. It will showcase our potential in
the food processing value chain. It will provide a platform to connect with
various stakeholders, and collaborate for mutual prosperity.
And, it will present to you, some of our most
delightful cuisine, which
has stimulated taste buds across the world.
Ladies
and gentlemen.
India’s
strengths in agriculture, are many and diverse.
The second largest arable land area, and as many as 127
diverse agro-climatic zones, give us global Leadership in a number of crops
like bananas, mangoes, guavas, papayas, and okra. We are second, globally, in terms
of production of rice, wheat, fish, fruits and vegetables. India is also the
world’s biggest milk producer. Our horticulture Sector has shown an average
growth rate of 5.5 per cent annually over the last ten years.
For
centuries, India has welcomed traders from distant lands, who came in search of
our distinctive spices.
Their Travels to India, often shaped the course of history. Our trade synergies
with Europe and South East Asia through the Spice Route are well known. Even
Christopher Columbus was attracted to Indian spices, and reached America, as he
searched for an alternate sea route to India.
Food
processing is a way of life in India. It has been practiced for ages, even in
the humblest of households. Simple, home-based techniques, such as fermentation,
have resulted in the creation of our famous pickles,
papads, chutneys and murabbas that now excite both the elite and the masses,
across the world.
Ladies
and gentlemen.
Let
us turn, for a while, to the big picture.
India
is today one of the fastest growing economies of the world. The Goods and
Services Tax, or GST, has eliminated the multiplicity of taxes. India has
jumped thirty ranks this year, in the World Bank Doing Business rankings. This
is the highest ever improvement for India, and the highest jump for any country
this year. From a rank of 142 in 2014, we have now reached the top 100.
India
was ranked number one in the world in 2016 in greenfield Investment. India is
also rapidly progressing on the Global Innovation Index, Global Logistics Index
and Global Competitiveness Index.
Starting
a new business in India is now easier than ever before. Procedures for
obtaining clearances from various agencies have been simplified. Archaic laws
have been repealed, and
the burden of compliances has
been reduced.
I
now turn specifically, to
food processing.
The
Government has undertaken a range of transformational
Initiatives. India is now the most preferred investment
destination in this sector. It is a priority sector in our “Make In India”
programme. 100% FDI, is now permitted, for trading, including through
E-commerce, of Food Products manufactured or produced in India. A single-window
facilitation cell provides handholding for Foreign Investors. There are
attractive fiscal incentives from the Union and State Governments. Loans to
food and agro-based processing units, and cold chains, are classified under
priority sector lending, making them easier and cheaper to obtain.
The
unique portal – Nivesh Bandhu – or “investor’s friend” – that we have
just launched, brings together information on central and state government
Policies, and incentives provided for the food-processing sector. It maps
resources upto the local level, with processing requirements. It is also a
platform for business networking, for Farmers, processors, traders, and
logistics operators.
Friends.
Private
sector participation has been increasing in many segments of the value chain.
However, more investment is required in contract farming, raw material sourcing
and creating agri linkages. Many international companies in India have taken a
lead in contract farming initiatives. This is a clear opportunity for global
super-Market chains considering India as a major outsourcing hub.
On
one hand, there are opportunities in post-harvest Management, like primary
processing and storage, preservation Infrastructure, cold chain, and
refrigerated transportation. On the other hand, there is immense potential for
food processing and value addition, especially in niche areas such as organic
and fortified foods.
Increasing
urbanization, and a growing middle class, are resulting in an ever-growing
demand for wholesome, processed food. Let me Share just one statistic.
Over a million passengers have a meal on a train in
India, every single day. Each one of them, is a potential customer for the food
processing Industry. Such is the scale of opportunity that is waiting to be
tapped.
Ladies
and Gentlemen.
Lifestyle
disease is raising consciousness globally,
about the nature and quality of food consumption. There is a growing aversion
to the use of artificial colours, chemicals and preservatives.
India can provide solutions, and offer a win-win
partnership.
The
combination of traditional Indian food, with modern Technology, processing and
packaging, can help the world rediscover the health benefits, and refreshing
taste of Indian food ingredients such
as turmeric, ginger,
and tulsi, to name just a few. The perfect blend of hygienic, nutritious and
tasty processed food, with the added benefits of preventive Healthcare, can be
produced economically, here in India.
The
Food Safety and Standards Authority of India has been engaged in ensuring that
processed food made in India, matches global quality standards. The
harmonization of the food additives standards with Codex,
and the building of robust testing and laboratory
infrastructure, will go a long way in creating an enabling environment for food
businesses.
Ladies
and gentlemen.
The
farmers, whom we respectfully call our “Annadaata” or the providers
of food are central to our efforts in food processing. We have a stated target
of doubling farm incomes within five years. Recently, we launched a national
level programme, the Pradhan Mantri Kisan Sampada Yojana, to create world-class
food processing infrastructure. This is expected to leverage investment of five
billion US dollars, benefit two million farmers and generate more than half a
million jobs over the next three years.
The
creation of Mega Food Parks is a key component of this scheme. Through these
food parks, we aim to link agro-processing clusters with key production
centres. This will offer immense value proposition in crops such as potato,
pineApple, oranges and apples. Farmer groups are being encouraged to set up
units in these parks, thereby reducing wastage and transportation costs, and
creating new jobs. Nine such parks are already operational, and more than
thirty others are in the process of coming up across the country.
To
improve last mile delivery, we are improving governance, by increasing access
to digital technology. We plan to link our villages through broadband
connectivity, within a clear timeframe. We are digitising land records, and
providing various services to the people on mobile platforms. These steps are
building momentum towards real-time transfer of information, knowledge and
skills to farmers. The e-NAM, our national agricultural e-Market, is connecting
our agricultural markets nationwide, thereby giving our farmers the benefit of
competitive pricing, and freedom of choice.
In
the true spirit of cooperative and competitive federalism, our State
Governments have also aligned with the efforts of the Union Government to
simplify processes and procedures. Many States have come up with attractive
food processing policies to attract investment. I urge each State of India to
identify at least one food product for specialisation.
Similarly, each district can also select some food
items for production, and one item for specialisation.
Ladies
and Gentlemen.
Today,
our strong agricultural base provides us a solid launch pad to create a vibrant
food processing sector. Our vast Consumer base, rising incomes, favourable
investment climate and a Government dedicated to Ease of Doing Business, all
make India ‘the place to be’ for the global food processing fraternity.
Each
sub sector of the food industry in India offers immense opportunity. Let me
give you some illustrations.
The
dairy sector has emerged as a vital area for the rural Economy. We now aim to
take this to the next level by increasing production levels of multiple
products based on milk.
Honey
is nature’s gift to mankind. It offers several valuable by-products, such as
bee wax. It has the potential to increase farm incomes. Currently, we rank
sixth in the production and export of honey. India is now ripe, for a sweet
revolution.
India
contributes over six per cent of global fish production. We are the world’s
second largest exporter of shrimps. India
exports fish and fisheries products to about 95 countries. We aim to make a big
leap in the ocean economy through the blue revolution. Our focus is on
development of untapped areas, such as ornamental fisheries and trout farming.
We also wish to explore new areas, like pearl farming.
Our
commitment to sustainable development, is at the heart of our thrust for
organic farming. Sikkim, in north-eastern India, has become India’s first fully
organic state. The entire north-east offers opportunities to create functional
infrastructure for organic produce.
Friends.
In
order to be successful in Indian markets, understanding Indian food habits and
tastes is a key requirement. To give you just one example, milk based products
and fruit-juice based drinks are an intrinsic
part of Indian food habits. That is why, I have been
suggesting to manufacturers of aerated drinks, the potential of blending five
per cent fruit juice in their products.
Food
processing also holds solutions to nutrition security. For example, our coarse
grains and millets have high nutritional value. They can also withstand adverse
agro-climatic conditions. They can be called “nutrition rich and climate
smart” crops. Can we take up a venture based on these? This will raise
incomes of some of the poorest of our farmers, and also enhance our nutrition
levels. Such products, shall, of course, find resonance across the world.
Can
we link our potential, to the world’s requirements? Can we link Indian
traditions with the future of mankind? Can we connect India’s farmers with
markets around the world? These are some questions that I wish to leave you
with.
I
am confident that World Food India will help us take some concrete steps in
this direction. It will also provide valuable insights into our rich culinary
landscape, and
highlight our ancient wisdom of food processing.
I
am also happy to note that the Department of Post has released a set of twenty
four commemorative postage
stamps on this occasion, to illustrate the diversity of Indian cuisine.
Ladies
and Gentlemen,
I
invite each one of you to become a part of the exciting growth journey of
India’s food processing sector.
I assure you of my whole-hearted support, whenever required.
Come.
Invest in India.
The
place with unlimited opportunity from farm to fork.
The
place to produce, process,
and prosper.
For
India, and for the world.
Thank
You.
***
AKT/AK
