National Mission on Food Processing

The Cabinet Committee on Economic Affairs today approved a new Centrally Sponsored
Scheme titled "National Mission on Food Processing (NMFP). This scheme would start
in co-operation with the State Governments in 2012-13.

The NMFP scheme would help the States / UTs in maintaining requisite synergy
between agriculture plans of States and Development of food processing sector, which
in turn would help in Increase in farm productivity thereby increase in farmers' income
also. This would also help in ensuring efficient supply chain by bridging Infrastructural /
institutional gaps. A National Food Processing Development Council (NFPDC) has been
set up under the Chairmanship of Minister (Agri. & FPI) with representatives of State
Governments, Industry associations and related Govt. of India Departments. This will
provide guidance to all schemes of Ministry of Food Processing Industries (MOFPI)
including the NMFP.

The basic objective of NMFP is decentralization of implementation of Ministry's
schemes, which will lead to substantial participation of State Governments / UTs.
Beneficiaries of MOFPI schemes will also find it easier to deal with State Governments.
This would be a paradigm shift in the Ministry's approach and is driven by the need to
make food processing truly a national initiative.

Government has already accorded approval and communicated to all States for taking
up preparatory activities / advance action by States / UTs for implementation of NMFP
during 12th Plan and released Rs. 29.81 crore (as on 10.7.2012 to states / UTs for taking
up preparatory activities / advance action for implementation of NMFP.

The following schemes being implemented by Government of India directly will not be
implemented through State Governments under this scheme in 2012-13:

i. Scheme for Technology Up-gradation / Establishment / Modernization of Food
Processing Industries.

ii. Scheme for Cold Chain, Value Addition and Preservation Infrastructure for Non-
Horticultural Products.

iii. Scheme for Human Resource Development (HRD)

iv. Scheme for Promotional Activities

Subsequently more activity will be added during the 12th Plan. Flexibility will also be
given to States to add components and deviate from central guidelines subject to
approval from the National Food Processing Development Council (NFPDC).
The scheme aims to facilitate the establishment of a strong food processing
industry backed by an efficient supply chain, which includes collection centres,
Primary Processing Centers (PPC),Central Processing Center (CPC) and cold chain
infrastructure. The CPC have need based common infrastructure required for
processing, packaging, environmental protection systems, quality control labs,
trade facilitation centres, etc.
The extent of land required for establishing the CPC is estimated to be
between 50-100 acres, though the actual requirement of land would depend
upon the business plan, which may vary from region to region. CPC is supported
by farm proximate to Primary Processing Centers (PPC) and Collection Centres
(CCs) in identified locations based on a techno-feasibility study, adequate to meet
the requirements of the CPC. The land required for setting up of PPCs and CCs at
various locations is in addition to land required for setting up CPC.
It is expected that on an average, each project will have around 30-35 Food
Processing Units with a collective investment of Rs 250 crore that would
eventually lead to annual turnover of about Rs 450-500 crore and creation of
direct and indirect employment to about 30,000 persons. The aggregate
investment in CPC, PPCs and CCs should be proportionate and commensurate to
the size of the total project keeping in view the economies of scale.


LOCATION
Location wise: Maximum factories in (ie. more than 1000 in given state)
Coastal states: Andhra, Maharashtra, Karnataka, Kerala, Gujarat, Punjab, WB
Non-coastal States: UP, Punjab
Observe majorities of the food processing factories are concentrated in the coastal
states.

Dairy sector
Regional imbalance
Bulk of new capacity in the period in last decade, has been established in the
Northern states, Maharashtra and Tamil Nadu. Remaining states are lagging in
dairy growth.
Capacity utilization of dairy plants is about 60% (assuming 300 working days in a
year). Due to Lack of milk availability in the lean season.
For e.g. Rajasthan has 8% share in milk production and 11% share in
consumption of milk products, however the share in dairy processing capacity is
4%. Meaning much of the milk escapes from the value-addition in dairy supply
chain. A similar situation prevails in Bihar.
National Dairy Plan (NDP)
By National dairy development board (NDDB), with support from International Development
Association (IDA)
Phase-1 (2012-17) was launched at Anand, Gujarat.
Scheme will run in 14 states Uttar Pradesh, Punjab, Haryana, Gujarat, Rajasthan,
Madhya Pradesh, Bihar, West Bengal, Maharashtra, Karnataka, Tamil Nadu, Andhra
Pradesh, Orissa and Kerala.
^These states collectively account for over 90% of countrys milk production.
National Dairy plan will do following:
1. Breed improvement + animal nutrition=> increase milk production, reduce methane
emission.
2. Strengthen of village based milk procurement system= Rural milk producers to get
greater access to the organized dairy sector.
3. Use of ICT technology: Internet Based Dairy Information System (i-DIS), Data
warehousing System along with Business Intelligence tool etc.
4. HRD, management, knowledge sharing, R&D and other fancy stuff

## after chittor, mega food park to come up in Bhagalpur
Top 5 fish producers
Top-5 Countries (2009 data) Top-5 States (2012 data)
1. China
2. India
3. Peru
4. Indonesia
5. Vietnam
1. Andhra Pradesh
2. West Bengal
3. Gujarat
4. Kerala
5. Tamil Nadu





Saltwater@Upstream
1. Arabian sea=broader continental shelf=fish production higher than Eastern coast.
2. Despite government ban, fisherman use fine-sized net= even Juvenile fish are being
caught.
3. 30% to 40% of the catch is discarded by fishermen in high seas because juvenile fish who
dont fetch good prices in market= resource lost.
4. During breeding season, fishing is banned in coastal waters. But the authorities dont
enforce it strictly.
5. Lack of surveillance of territorial waters= even outsiders (Pakistani fishermen) do illegal
fishing in our area.
6. The EEZ around Andaman-Nicobar and Lakshadweep confluences with international
waters. This makes these Island territories vulnerable to illegal Fishing by foreign
vessels.
7. Most fishing vessels dont have facility to freeze the fish onboard immediately after
catching= quality deterioration before they reach the coast.
8. unregulated fishing of highly migratory species just outside the EEZ=negative impact on
Marine biodiversity.
9. Most vessel dont have special equipment to do deep water fishing beyond depth of
400m. Example yellow fin tuna found around Lakshadweep islands. Theyre almost
unexploited since the technology for deep long lining is not prevalent in the Islands.
Freshwater@Upstream
For inland fisheries, two big players= WB+Andhra.
But even those state governments not enforcing fishing net size in rivers, lakes and
reservoirs= juvenile fish caught and discarded.
Fishing ban during breeding season not strictly enforced.
Aquaculture@upstream
EMPIRES
National Fisheries Development Board vs. Department of Animal
Husbandry, Dairying and Fisheries.
Their jurisdictions/responsibilities are still not clearly defined
Result: overlapping, lack of synergy.
Freshwater aquaculture, contributed to the Blue Revolution in the
country in late 1970s. But not it is now almost stagnating in terms of
yield rates.
MNREGA
Fish production can be enhanced 2 to 4 times by creating more rainfed
water bodies via MNREGA labour. But this potential is largely ignored.
AQUACULTURE
Fish feed not available at reasonable prices.
Most farmers are small/marginal, dont know best practices in
cultivation, post-harvest management for fish farming.
waste disposal done in hygienic manner= environmental implications
Shrimp-farming@Upstream
Nellor District, AP= Shrimp Capital of India.
Pink revolution=Shrimp.
PARENTS
Disease free brooder stock (parent shrimps)= not available. Hence their
next generation is also diseased.
If you import the brooder stock=there are no regulation/quality checks
=infected stock=>the shrimps thus grown have variety of
disease=rejected in US/EU for export.
For aquaculture/shrimp culture, you need to get approval from State
fisheries Department. But Often, the state departments take 3-6 months
to scrutinize documents= project implementation delayed.
ANTIBIOTICS
Imported feed or antibiotics=>high custom duty=expensive.
Therefore lot of Chinese/counterfeit/spurious products in market.
Farmer unknowingly uses such input= antibiotic traces found in Indian
shrimps=>theyre rejected in US/EU market.
FEED COST
feed cost accounts for 50% of the total cost
Government investment in research for low cost feed and technology
required.
TRAINING
Need to educate farmers on modern techniques of shrimp farming so
they can enhance the quality and body weight of shrimps.
but there is shortage of extension staff for fisheries in state departments.
@Processing
NOTABLE
PLAYERS
Adani Exports, Hindustan Lever Ltd, Ruchi Worldwide, Vishal Exports,
Aditya Enterprises ,Liberty, Falcon Marine.
WATER
QUALITY
Potable water is not available at landing and cleaning sheds at the
ports.
EU specifies more than 50 parameters of water, If traces of these
chemicals are detected= product rejected. (and as you can guess, our
exports are often rejected.)
PACKAGING
Need Focused research to develop low-cost packaging for seafood
products, both for the export + domestic market.
LOW VALUE
ADDITION
Even for exports, our fish-processing is primary/basic level
We merely freeze/mince the fishes/shrimps and export them to
China/Thailand/Japan.
They do more value-addition and create variety of ready-to-eat fish
food (e.g. sushi shrimps) =>export to US/EU @higher prices.
INVESTMENT
To comply with US/EU/HACCP regulation, we need huge capital
investments to upgrade our processing units.
@Downstream
More than 1/3
rd
of Indians eat fish but demand for processed fish=limited because
Indian consumer prefer wet (fresh) fish rather than processed fish.
Cost of processed fish product= 20-25% higher than fresh fish.(due to indirect taxes)
Desi Consumers prefer to buy fresh fish from wet markets and process it at home
Therefore, Indian fish processing segment=entirely export-oriented, due to lack of
local/domestic demand
INFLATION
Fish prices more than doubled during the Eleventh Plan, a higher
inflation than either crops or any other livestock segment.
This is negatively affecting business and demand.
MARKETING
There is inadequate awareness about nutritional benefits of fish.
Need marketing campaign to increase desi-demand- showing
hygienic, healthy, consistent quality of branded, packaged fish
products over the unhygienic macchi-market.
RETAILERS
Large number of retailers are unable to sell processed fish products
because they dont have due to cooling storage facilities + electricity
problems.
MARKETING
RESEARCH
We dont export Ready to eat marine products in significant volumes,
because we are not aware of varied tastes and cuisines in different
regions of the world
need investment in marketing research in foreign consumers food
preferences.
DUMPING
US Department of Commerce has imposed an anti-dumping duty on
Indian Shrimp. more on dumping, already discussed click me
REJECTIONS
US/EU/foreign countries often reject our fish/shrimp cargos for traces
of antibiotics, heavy-metals, foul smell.
Government Policies/Schemes
Jurisdiction:
States Marine fisheries within the territorial waters are the subject of maritime states
Centre Fisheries beyond this limit within the EEZ fall in the jurisdiction of Central Government.
Comprehensive Marine Fishing Policy, 2004
By Department of Animal Husbandry & Dairying, Ministry of Agriculture
Three main objectives: 1) boost export 2)socio-economic welfare of fishermen 3) protect
marine ecology/biodiversity
ACTIVITY policy will address following:
1. SUBSISTENCE FISHING
protection + welfare
2. SMALL-SCALE FISHING
technology transfer to small scale sector
3. INDUSTRIAL FISHING
work out strategy for fishing in Antarctic waters by
Indian owned vessels
infrastructure support, Joint Venture for fish processing
and export
PPP: Build-Operate-Own and Build- Operate-Transfer
systems.
Salient Features of this policy
1. ATTENTION TO CONSUMERS
o increase per capita (fish) protein intake
o Attention to consumer rights. Ensuring food safety, mandatory bar coding and
packaging for sale of fish products.
o Ensure international quality and food safety in fish and fishery products.
o Ensure Hygiene in fishing harbor and processing centers.
o Protect consumers from fish contaminated with heavy metals and other
hazardous chemicals discharged from industrial establishments.
o eco labeling of marine products
2. ATTENTION TO FISHERMEN
o Each fisherman household would be given a card for easy identification.
o Strengthen Cooperative movement of fishermen
o Uniformity in central-state welfare schemes for fisherman.
o Greater participation of cooperatives, NGOs and local self-Governments
o Government to contribute towards Insurance scheme for only those fishermen
who do not own a boat.
o Fishermen Housing Schemes will unified and implemented as a master plan
through a national agency.
3. ATTENTION TO ENVIRONMENT
o responsible and sustainable fishing practices to Preserve environment and
biodiversity
o Strict ban on all types of destructive methods of fishing.
o Regulate Mesh sizes in different parts of the fishing gear. Penalties for violations
of mesh regulations.
o Prohibit Catching of juveniles and non- targeted species=prohibited
o greater liaison between Central and State Pollution Control Board to control all
industrial establishments discharging effluents in to the sea
o Hazard Analysis and Critical Control Points (HACCP) in effluent discharge systems
will be made mandatory.
o Mangrove plantation in Coastal areas.
4. ATTENTION TO FANCY THINGS:
o HRD, R&D, use of IT, strengthening marine database via satellites etc.
National Fisheries Development Board (NFDB)
HQ: Hyderabad. For both inland and marine fish. Promotes following
1. Accelerated development of the fisheries and aquaculture in a sustainablemanner
2. Hygienic development of wholesale and retail markets
3. Mariculture (cultivation of marine organized in enclosed section of ocean / pond / tank
etc. Example: prawn, pearls, agar etc)
4. Training to fishermen/fish farmers
Government Schemes
National Mission for Protein
Supplement (NMPS)
Component of Rashtriya Krishi Vikas Yojana.
to promote production of animal based protein
through livestock development, dairy farming, pig
and goat rearing and fisheries
Development of Inland fisheries &
Aquaculture
fish farmers were provided assistance for
freshwater aquaculture. ~30000 already benefitted
under 11
th
FYP.
Development of Marine Fisheries,
Infrastructure Post Harvest
Operations.
development of 13 fishing harbors and 4 fish
landing centres, 4 fishing harbors were repaired
and renovated. (11th FYP)
safety appliances provided
Strengthening of Database &
Geographic Information System
for Fisheries Sector.
Under the scheme, inland water bodies are
surveyed and mapped in the States.
Work already finished in W.Bengal.
Fishermen Welfare Scheme
In the 90s, there were multiple schemes for fishermen welfare but in mid-2000s, all of them
combined into single Centrally Sponsored National Scheme on Welfare of Fishermen (duh, no
catchy name/abbreviation, not named after you know who. but then again, scheme falls under
Department of Animal Husbandry & Dairying= under Sharad Pawar=not directly under you
know whos party.)
anyways, this scheme has:
Two pronged approach
PROTECTIVE
To prevent any short term decline in the standard of living. (via
insurance + savings)
PROMOTIONAL
To enhance the long term general living standard of the entire
community. (via model village + training)
four broad components
1. MODEL
FISHERMEN
VILLAGES
fishermen (both inland and marine) will be given basic civic
amenities like houses, drinking water, tube-well and
commonplace for recreation and work.
for housing- Preference will be given to fishermen below
poverty line and to landless fishermen.
2. INSURANCE
Group Accident Insurance for Active Fishermen.
Rs 50,000/- against death or permanent total disability and
Rs 25,000/- for partial permanent disability.
50:50 cost sharing by Center:state
3. SAVINGS CUM
RELIEF
during the fishing season (8 month), fisherman will give
Rs.600, + government will contribute another Rs. 600.
(total 1200)= this plus bank-interest will be given to
fisherman during lean season (remaining 4 months of the
year)
4. TRAINING
self explanatory
to update knowledge and improving skills of fishers in
regard to modern fishing technology.
Misc.
CIBA
IMMUNoDot
An immunodot blot test for early detection of WSS virus in shrimp. Patent
pending.
Silver
pompano
Successful breeding experiments carried out.
can be done in ponds, tanks and floating sea cages.
price of pompano is about Rs.200/-per kg, The species is able to
acclimatize and grow well in the vast low saline and brackish waters of
our country.
International Support
Several international organizations, including the World Bank, UNDP , DANIDA, NORAD,
ODA (UK and Japan) provide aid to India for the development of fisheries sector .
(UK) has provided technical aid for the prevention of post-harvest losses in marine
fisheries. Recently, FAO launched a scheme for providing technical assistance to
implement Hazard Analysis Critical Control Points (HACCP) in seafood processing
industries.
State governments
They need to do following:
1. Enforce fishing holidays during breeding season.
2. Awareness camps to educate the fishermen on importance of the breeding cycle of the
fish to replenish the stock.
3. Regulate fishing net size. 30 mm mesh size should be standardized for use.
4. Announce specific financing schemes for purchase of requisite vessels and equipment
5. Allow only a sustainable number of vessels to operate in the coastal waters. Dont give
license to everyone.
6. Leasing of coastal zones There is need to consider leasing of coastal zones on a long
term basis (30 years) to private sector players, for introduction of advanced mariculture
technologies such as cage culture, pen culture etc. for augmenting fish production.