Tami Nadu has various food export pockets
The food processing sector in India is growing rapidly and is projected to grow by over 47 per cent between 2022 and 2027, reaching USD 1274 billion. It accounted for 7.66 per cent of the gross value addition in manufacturing at 2011-12 prices. The sector employs close to 2 million. To capitalise on the opportunity and to connect the MSMEs to larger players and markets and to equip them with technology and policy support, the 15th edition of CII Food Pro 2024 is to be held at the Chennai Trade Centre from 09-11 August.
Cold storage is a major aspect of the food industry and has for long been a weak linkage in increasing the ability of storing and selling the product at optimal times. B Thiagarajan, MD, Blue Star Ltd and Chairman, CII Foodpro Expo 2024 pointed that the issue of cold storage varied across different stakeholders in the chain and continued, “cold chain solutions are suitable for commodities which are cropped one time in a year. Like apple is grown in Himachal, Jammu and Kashmir during August and September, but can be stored and sold throughout the year. It prevents unnecessary import from Washington, California, etc. In such cases cold storages are working fine but the issue is on price arbitrages.”
He pointed to other issues. One related to the linkages to the cold chain solution, as it is broken. Cold transportation solutions are limited and not economically viable at this point of time. He also pointed to outdated cold storage machinery that are power guzzlers.
“With milk, we have cracked the cold storage and transportation. The question is who will come to invest and take it forward. The investment usually happens when it is for exports, food processing when handled by large players, single harvest commodities like apple that are produced once in a year but consumed throughout,” highlighted Thiagarajan.
The CII had successfully intervened and taken the Theni bananas to a global stage. On similar lines they plan to focus on chillies from Andhra, jackfruit from Tamil Nadu that have potential. Thiagarajan pointed to certain food processing hubs across Tamil Nadu that were doing exceptionally well. They include baby corns in Salem, turmeric in Erode, flowers in Hosur,… Other promising items include cooking oil and spice powders where some big and established players already exist and have newly entered.
