the flow of presentation was the agro industries present status and the challenges behind this..

1. WELCOME

2. AGROINDUSTRIES PROSPECTS
AND CHALLENGES

3. Agro industry
 Industry dealing with the supply,
processing, and distribution of farm products.
 It mainly depends on agricultural products
as raw materials.

4. Importance
 Establishment of agro-based industries is based
on the availability of raw material.
 Provide rural population an opportunity for
employment.
 Generate income and thereby improve economic
condition of people.
 Avoid wastage of perishable agricultural
products.
 Help to develop backward areas based on their
suitability for setting up agro-industries.
 Prevent migration of people from rural to urban
areas.

5. Need for agro-based industries
For upliftment of rural economy.
To solve the problem of unemployment.
To generate income and increase standard of
living.
To encourage balanced growth between agriculture
and industry.
To solve the problem of exploitation of farming
community.
To avoid wastage of perishable agricultural
products.
To prevent migration of rural people.

6. Trends in agricultural production
 In the year 1950-51, India produced only 50
million tonnes of food grain and a variety of other
crops.
 By the year 2001-2014, India started
producing about 900 million tonnes (Mt) of
biological materials per year including food
grains, oilseeds, fruits,vegetables,
sugarcane, milk, eggs, meat,
fish, tea, coffee, fiber crops,
floricultural produce,
forest produce and so on.

7. Extent of post harvest losses
On account of poor post harvest
management, the losses in farm produce in India
have been assessed to be of a very high order.
Various studies have estimated post
production losses in food commodities of Rs.
75,000-1,00,000 crore per annum.

9. • Atta chakkis and small
hammer mills - 2,70,000,
• Rice hullers - 90,000,
• Rice shellers - 11,000,
• Huller-cumshellers - 12,000,
• Modern rice mills - 30,000,
• Bullock/electricity operated
oil ghannis - 2,00,000,
• Oil expellers-55,000,
• Dhal mills - 12,000
• Roller flour mills - 700,
• Rice flaking and puffing units
2,000,
• Bakery units -54,000,
• Solvent extraction plants -
700,
• Vanaspati plants- 100,
• Fruits and vegetables
processing plants - 5,000,
• Dairy plants - 450,
• Cold storage units - 3,000,
• Licensed units in organized
sector for meat processing
- 165,
• Processing units – 144,
• Fish processing units - 18
Growth of agro processing sector

10. Problems faced by processing industries
a)Low capacity utilization,
(b) Poor recovery of the finished product from
the raw materials,
(c) Problems of arranging adequate working
capital and its management,
(d) Low product quality ,
(e) Unreliable assured power supply.

11. Crop and commodity
wise status of
agro-processing
industries

12. Rice Processing Industry
 During 1950- 51 the production of rice -20.6 Mt ,
 But in 2013-2014 production ranges on 103 Mt .
 5,000 are large rice mills with parboiling facility .
 100 have colour sorters for removal of discoloured
rice for export market.
 Quick cooking rice developed by CFTRI, Mysore.
 The upcoming areas in rice processing R&D include high
capacity dehuskers and more efficient polishers improved technology
for storage of paddy and rice, onfarm/ community level drying of paddy,
mechanical handling systems for grain markets and millers, cold
storage of rice and down stream products, products diversification in the
form of flakes, puffed rice, snacks, bakery items, quick cooking and
ready-to-eat rice etc.

13. Wheat Processing Industry
 Before 1960 our country produced 6.5 Mt of wheat, that has
increased to 95 Mt by the year 2013-2014. India has emerged as the
second largest producer of this cereal in the world.
 It is mainly processed for flour (atta), maida.
 Use of self propelled harvester combines
used for harvesting and threshing of wheat.
• 20-30 combines during 1950-51 but now it comes
nearly 6,000 combines.
o Now, there were about 27 lakh
atta chakkis and 700 roller flour mills in the country. This number
has risen from 53,000 atta chakkis and 200 roller flour mills in 1971-72.
 Metal bins have gained popularity among farmers in the capacity
range of 0.2- 1.0 tonne of grain storage

14. Processing of Coarse Cereals
 Production of coarse cereals has risen from 15.4 to
39.0 Mt between 1950-51 and 2013-2014.
 The growth has not been as rapid as in case of
wheat and rice. It is because of low profitability of these
crops for farmers.
 Technology has also been developed for production
of value-added products from coarse cereals such as
extruded snacks developed from ragi and sorghum-
soybean fortified foods.
 Safe storage of the flour
produced from most of the coarse
cereals has been a problem due
to its high degree of perishability.

15. Processing of Pulses
India produced 8.4 Mt of pulses in the year but
the level comes to about 18.43 Mt by the year 2013-
2014. 500 dhal mills in the country in 1950-51, there
were about 15,000 dhal mills of 100-500 TPD capacity
in the year 2000-2001.

16.  In the area of milling of pulses, CFTRI
developed a dhal mill that has the advantage of
not being dependent on natural sun shine. It
involves subjecting the pulse grain to high
temperature (120 degree Celsius) for short time
and the dehusking by rollers resulting in higher
dhal recovery.
 In a number of dhal mills,
improved machinery including
cleaners, graders, magnetic
separators, washers, driers,
polishers, colour sorters and
packaging systems are being used.

17. Oilseeds Processing
In the year 1950-51, the country produced 5.2 Mt of oilseeds.
Production by the year 2013-2014 had increased to 29.5 Mt.
By the year 2000-2001, there were nearly 2.5 lakh oil ghanies, 60,000
oil expellers and 700 solvent extraction plants. Besides, there were 200
oil refining units in the country and 100 units for production of
hydrogenated oil (Vanaspati)
R&D Institutions in the country have been working on pre-
treatment of oilseeds for higher recovery of oil. Steaming has been
found as one of the most useful methods for pre-treatment. On
mechanical oil expellers, a number of Institutions including CFTRI,
Mysore

18. Processing of Fruits and Vegetables
 Production about 81 tonnes of fruits and 162 millions tonnes of
vegetables..
 However, the growth in post harvest sector has not kept pace
with the production.
 Even during the year 2000-2010, there were only 6,000 fruits
and vegetable units in the country that had grown from a figure of about
1,000 during 1950- 51.
o Less than one per cent of the total produce was process.
 The installed capacity of the processing industry has grown
steadily from 0.27 Mt in 1980 to about 3 Mt in 2000-2001
.

19.  Production of juices and value-added
products including jams, jellies, pickles, canned
products etc. has become a commercial success.
 Technology is still being imported for
establishment of large scale exported oriented
units for production of items like banana paste,
concentrates of various fruit juices, sorting,
cleaning, washing, waxing and packaging of raw
fruits and vegetables.

20. The industry has been facing problems of low
capacity utilization.
It has to work under the constraints of
1. high fluctuations in raw material quality and
fluctuating market price,
2. poor technology for handling and storage,
3. inadequate R&D support for product development,
high cost of energy and uncertainty in availability of
adequate quantity for processing purposes,
inadequate and expensive cold chain facilities and
varying requirement of processing conditions from
one material to another.

21. Processing of Animal Produce
 Meat and poultry production in India has
been about 4.6 Mt per year with goats and sheep
contributing 54%, buffalo and cattle 26%, poultry
13% and pig 7%. It is mostly used fresh.
 Efforts are on to develop infrastructure for
export of both fresh and processed meat and
poultry.
 Hygiene in slaughter houses and use of
blood, and other wastes is not satisfactory. The
meat from culled birds, goats and buffaloes is
tough textured, better suited for processed meat
products. However, there is no tradition of using
processed meat products in India, yet.

22. Fish & Fish Products Processing

In 2000, the country had an estimated 1,81,284 traditional fishing crafts;
44,578 motorized traditional crafts, 53,684 mechanized fishing boats and
about 200 deep-sea vessels in operation. Fish processing in India is done
almost entirely for export.
 Open sun dried fish and fish meal are the only major exceptions.
 At present India has – freezing units, - cold stores, - ice plants, -
canning units and – fish meal plants.
 Inland fisheries need low cost palletized feeds and special
containers to transport the fish. More rearing ponds are needed.. Extensive
network of refrigerated handling,
transport, storage and retailing has to be put
in place. Also, we have to make
better use of fish
waste and by-products.

23. Apiculture Produce Processing
 Bee-keeping i.e., rearing the bees in artificial hives to
produce honey and other products offers an immense potential
for providing employment to rural folk in India where many
evergreen and moist deciduous forests,
orchards etc.
 The equipment required, viz; bee boxes of standard
sizes,honey extractor smoker, hive tools etc. have been
researched and improved in design and these can be
manufactured even in small rural carpentry and black smithy
shops.

24.  .
Floriculture
 The area under floriculture in India has increased to nearly
40,000 ha, which constitutes around 17% of total global acreage. Inspite
of such a large area, production value is very low.
 Floriculture is largely an export oriented agroindustry.
There are 14 flowers in the world cut flower trade. The trade is growing at
the rate of 15% per annum namely, Gladiolus, Chrysanthemums, Jasmine
and Orchids.
 Cultivation of high quality varieties under protected conditions,
proper tools and equipment, appropriate packaging and storage can
create a niche for Indian flowers in the world market.

25. EXPORT TRENDS AND OPPORTUNITIES
 India has been a traditional exporter of raw
agricultural products like spices.
 Export of raw products has resulted in huge loss to
Indian economy.. India’s share in over US$ 300 billion world
trade in agricultural commodities is less than 1%.
 Agricultural exports used to be of the order of 30.6%
of the total exports during 1980-81, which came down to
19.4% by 1990-91. Currently, it is at about 16% due to
rapid growth in other sectors as well.
 Processed fruit and vegetable products have
considerable export potentials and if it is properly utilized,
growers, processors, traders as well as national economy will
benefit. It requires correct assessment of world market, high
quality of raw produce, high quality of processed product
and competitive production cost.

26. Quality control & standards
The activities of BIS are
a) Formulation of Indian standards
b)Their implementation through certification
system.
BIS has on its record over 700 Indian Standards
related to food-grains and their products, bakery and
confectionery items, sugar, edible starches and their
products, processed fruit and vegetable products,
protein rich foods, stimulant foods like tea, coffee and
coca, alcoholic beverages, spices and condiments and
food products of animal origin like milk and meat, fish,
poultry etc.
Bureau of Indian Standards (BIS)

27. GATT and Sanitary/Phytosanitary Measures
1. Requiring product to come from a disease
free area
2. Inspection of products
3. Specific treatment of processing of
products
4. Setting allowable maximum levels of
pesticide residues or permitting the uses
of only certain additives in food
Objectives of SPS

28. swot
Inadequately
developed linkages
between R&D
labs and industry.
*Low availability of
new reliable and
better accuracy
instruments and
equipments
Competition,
Availability of raw
materials
Manufacturing
facilities
Vast domestic market
1.Large crop and
material base
2. Integration of
developments in
contemporary
technologies
3. Opening of global
markets
o T
S
W

29.  The objectives of agro-processing programmes
in India should be to:
Plan and strategy
minimize product losses
add maximum value
achieve high quality
standards
keep processing cost low

30. Challenges…..

31. 1. Proper guidance is not available to
entrepreneurs.
2.Seasonality of crops
3.Poor quality of raw material supply and
high losses during transport from farm to
factory
5. Failure of monsoon may hit the raw material
supply.
6. Proper guidance, training for modern and
sophisticated agro-industries are not available.
Challenges of agro industry

32. • Poor and inconsistent quality of
processed products. It may also include
losses during storage, handling and
milling/processing.
• A lack of proper hygiene and sanitation
practices
• Uncertainty about future market
demands.
• Inappropriate packaging materials and
high packaging cost.

33. Thank u….
Presented by
S.Sabarinathan
2070515027