APEDA-Undergoing a Paradigm Shift

APEDA-Undergoing A Paradigm ShiftBY: PURBA MUKHERJEE(137) SUCHANDA SOM(149) TRIPURA N.(151) MBA IB 2009-2011 SECTION-A

Overview of Food Processing Industry While India's food processing industry features an array of products like fruit and vegetables, meat and poultry, milk and milk products

The food processing industry plays a vital role in the diversification and commercialisation of agriculture by ensuring value addition to agricultural produce, generating employment, enhancing the income of farmers and creating markets for export of agro foods.

What is APEDA

The Agricultural and Processed Food Products Export Development Authority (APEDA)-established by the Govt of India Agricultural and Processed Food Products Export Development Authority Act was passed in December, 1985.

Goals & VisionGoals: To maximize foreign exchange earnings through increased agro exports To provide better income to the farmers through higher unit value realization To create employment opportunities in rural areas by encouraging value added exports of farm produce. Vision: To establish India as a consistent supplier of quality and price competitive agro products.

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APEDA -FUNCTIONS

Development of industries relating to the schedul products for export by way of providing financial assistan

Infrastructure for collection centers ,Transportation a Storage and centre for perishable cargo at Airports. Promotion of Export Oriented Production Market Development and Promotion

Market Intelligence Undertaking Surveys & Feasibil Studies6

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Fixing of Quality Standards and Specifications for the Scheduled Products. Inspection & Certification of Processing Plants, Storage & Transportation Points to ensure quality of the Products Improving Packaging of Products. Training in Various Aspects of the Scheduled Products Industries Support for R&D and Quality Assurance

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APEDAs NetworkHead Office : New Delhi Regional Offices (5) : Mumbai Hyderabad Bangalore Guwahati Kolkata Virtual Offices (13) Bihar Chhattisgarh Gujarat Jammu & Kashmir Kerala Madhya Pradesh Manipur

Nagaland Orissa Punjab Tamil Nadu Tripura Uttar Pradesh7

Features

Registered a 25% growth in 2008-09 Farming to export concept initiated - where farmers shift gea from livelihood farming to market-oriented agriculture and international trade Contract farming -altering the lives of small farmers with fragmented holdings APEDA got the various pesticide test subsidized for the farm Drive exports at competitive prices APEDA does not provide any funding for participation in international trade fairs.

Products Monitored Fruits, Vegetables And Their Products Meat And Meat Products Poultry And Poultry Products Dairy Products Confectionery, Biscuits And Bakery Products Honey, Jaggery And Sugar Products Cocoa And Its Products, Chocolates Of All Kinds Alcoholic And Non-alcoholic Beverages Cereal And Cereal Products Groundnuts, Peanuts And Walnuts Pickles, Papads And Chutneys Guar Gum Floriculture And Floriculture Products Herbal And Medicinal Plants Rice (Non-basmati) Basmati Rice, Wheat, Coarse Grains And Sugar.

Total Export of Export of Merchan- all agri. products dise Products monitored Exports By APEDA(US $ Billion) (US $ Billion) (US $ Billion)

Share in Share in total all agri. merchandise Exports Exports(%) (%)

2005-06 99.44 2006-07 127.35 2007-08 159.25 2008-09 169

9.15 11.6 16.83 ---

4.09 4.86 7.93 8.7 Source: DGCIS

4.12 3.81 4.98 5.15

44.74 41.86 47.11 --10

Exports by APEDAValue Rs. Crs.2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 10169 14184 13828 18146 16982 21150 24384

Source: DGCIS Annual Data

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APEDAs EFFORTSAPEDAs strategy for development of horticulture through Provision of infrastructure facilities., viz pack houses, cold storages, refrigerated transport units Educating the farmers through 1. Pre and post harvest training programmes 2. Quality awareness programmes 3. Preparation of pre and post harvest manuals in local languages and distribution among the farmers. Building external market linkage for food processing units with major players in food sectors like Hindustan Liver, Dabur, ITC and other companies.13

Established model organic farms Sanctioned a integrated pack house facility for handling perishable products . Training to Progressive Beekeepers Cold stores at Airports.

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Financial Assistance Schemes Scheme for Market Development Scheme for Infrastructure Development Scheme for Quality Development Scheme for Research and Development Scheme for Transport Assistance Scheme for Inland Transport Assistance for North Eastern Region

Setting up of pack house and collection centres for export of Ginger in Assam Walk in type cold storage at Guwahati Airport which is being upgraded into centre for Perishable Cargo Setting up of pack house for export of Flowers at Rangpo (Sikkim) Provided refrigerated vans to NERAMAC Ltd (2 Nos) and Department of Horticulture of Tripura (2 Nos) Provided Financial Assistance to Patkai Lab at Guwahati for setting up of testing facilities for export A cold storage is to be set up at Dimapur, Aizwal, Tripur Airport. MoU signed with M/s. CONCOR where APEDA would create infrastructure facilities, CONCOR to manage and M/s. Transworld to operate the facilities. Business plan submitted by M/s. CONCOR

Initiatives for N.E.R.

CPC being set up at Bagdogra (Rs.2.99 Crs.)

Latest Developments Restructuring of APEDA Act. Agri-export turnover is set to rise from $9 billion to nearly $18 billion by 2014. APEDA intends to set up a traceability system for all horticulture products exported from IndiaTRACENET Farming for Export

Deal with IPRs of special agricultural products including Basmati rice. Cluster-based approach Initiative to develop Floriculture Industry in Karnataka APEDA set target - farm products set to reach Rs 1 lakh cr in five years APEDA finalizing guidelines on good agri practices (GAP)

Achievements APEDA monitored processed food products including fresh and processed fruits and vegetables, livestock products, cereals etc. have grown exponentially by 24 per cent in rupees term (Rs 39,461 crore) and 10 per cent in dollar term ($8.67 billion) in 2008-09. Won the eAsia award for its Grape Net traceability project

ISSUES AND AREA OF CONCERNLack of awareness and infrastructure in all the States resulting in a very poor response from the exporters/farmers to take up new ventures. State Govts not responding to communications sent. Perceived lack of clear strategies in promotion of organic products by the States. Multiple Departments / agencies in the States on the subject (No Single window option for coordination with APEDA). Need for an effective coordination channel in all the States, A Nodal Officer may be identified for timely response and action on all matters.20

Conclusion The Path Forward Enhancement Of Quantum Of Exportable Surplus Conducive Environment For Attracting Investment Strengthening Of Infrastructure (Airport, Border Custom Points) APEDA Is Pursuing The Organic Initiative

THANK YOU

Sources www.apeda.com www.hinduonnet.com www.commodityonline.com www.agricultureinformation.com www.FnBnews.com www.freshplaza.com