Value addition in food processing will boost bullish market, says CFTRI chief

The bullish market is dominated by urban life. It reflects very little of the rural life and the agricultural sector. If IT and BT can achieve a benchmark with huge investments and global recognition, why not agriculture and value addition to its products?

Central Food Technological Research Institute (CFTRI) director V Prakash posed this question, reacting on Sensex scaling a record high with increasing foreign fund flows and firming up of markets.

Speaking to Business Standard, he said time has come for Indian food industry to take the cue from IT and BT sectors, invest more in food industry, traditional and healthy foods, and boost the country's economy further.

"IT is one area and it is a good example. We have to replicate it in other areas, more so in the food industry. We must replicate IT and BT in other sectors as well," he said.

"Sensex has surpassed the 8,000 mark. What is the signal food processing industry gets from it? This all-time high has an important message to the food sector. Can we use our bio-diversity to value add and process our foods and food products, fruits and vegetables, meat and fish, grains and pulses and create a brand equity at the global level? This is the message we have in the rising Sensex," Prakash said.

The country has around 3,600 traditional foods. Each has a health angle. How do we leverage this for the growth? This is possible only by harnessing value addition. The possibilities are at least 1:4.

Mint, for example, has herbal value. Besides marketing it as mint and mint powder, it can be an anti-oxidant capsule as well. This value addition can add another 3,000 to the Sensex mark. This is what is required to be done in the country today.

Industry should take up this kind of challenge and science should support it by providing required technology, Prakash explained. Prakash, who heads one of the world's best food research labs, cited the example of mango, the value addition of which can expand mango export market.

"The first mango appears in Trivandrum by December and the last in Gorakhpur. If we can keep the fruit for two more months, mangoes will be available throughout the year. Out of this, even if we can secure one per cent of the world market, it will be significant. If Kiwi fruit can be sold in India, why not Indian mangoes in New Zealand or Australia?" he questioned.

Today the world's neutraceutical market is more than $100 million. Health foods contribute another $250 million. Our own market potential is 1.2 billion, while the world's population is over six billion.

With growing health awareness and increasing demand for foods like diabetic-free and cholesterol-free, every one is looking at health foods and neutraceuticals. Therefore, the market is huge; the volume is enormous, he said.

"But we don't have a single product of our own at the global level," he said and added, "it is time for the industry, therefore, to come forward and invest, build an India brand. It is time for the industry to take advantage of this huge potential for investments in the two sectors, health foods and neutraceuticals. The present situation of exporting raw materials and getting back value added products should be reversed. Our attention should be more now on export of more and more value added products."

What is required at this stage is an integration of the agricultural policy for networking the operations. An appropriate regulatory mechanism has to be devised for neutraceuticals so that brand equity is promoted based on quality. "We can dominate the world by such an integrated approach," the director said

"As I said the share market is dominated by urban life. You have built that on one economy. At least now we must look at it differently, clearly. We have to build a new base, a broader base. Then the Sensex will be more meaningful. It will be more buoyant than it is today," Prakash said.