Government Can Behave Like Father In-law For Industry Needs: Suresh Prabhu At Foodworld 2018
Robust export strategy to professional targets allocation for APEDA had been key highlights to Foodworld 2018. Besides, technical dialogues Minister of Commerce & Industry, Suresh Prabhu had given hint to industry to do few things on its own rather than looking at the government for everything every time.
Industry must not expect the government to do everything. “It is a relation of a son-in-law and father-in-law, every time a new dimension will add to food processing sector and government cannot give gifts every time,” said Suresh Prabhu, Union Minister for Commerce & Industry. Prabhu had also announced that the government was working on an agriculture export strategy that would give primacy to value addition and job creation. He emphasised on the potential of marine products export, for which the Agricultural and Processed Food Products Export Development Authority (APEDA) had been given specific targets for value-added exports.
Prabhu had delivered his speech during the inauguration of the 11th edition of ‘Foodworld India 2018’ by Industry body FICCI. This year’s theme was ‘Capitalising Food Processing in the Digital Era,' Prabhu urged the food processing industry professionals to develop processed food items that appeal to the palates of the consumers in export markets. This segment needs to be exploited aggressively apart from exporting Indian food products for use by Indians overseas.
Processed, ready-to-eat food, produced under good regulation with regard to safety and standards, Mr. Prabhu said, was a great opportunity for the manufacturing sector with the attendant beneficial effect on downstream industries. Prabhu had also released a FICCI-YES BANK report with title ‘Start-Ups: Transforming India’s Food Processing Economy’.
J P Meena, Secretary, Ministry of Food Processing Industries, had pointed out that "while the availability of credit to food processing units was a challenge, the government was looking at the feasibility of having sector-specific financial institutions to take care of the credit requirements." The government would look for partnerships with the industry to resolve the issue, he added.
Meena said "indigenous production of machinery and equipment required by the industry has remained a grey area." In this regard, industry should provide relevant inputs to R&D institutions so that mechanisation was in tune with the requirements. In packaging, the excessive reliance on the use of plastics was an area of concern; he said and added that the time was ripe to develop bio-degradable alternatives to plastics.
Ashish Bahuguna, Chairman, Food Safety Standards Authority of India (FSSAI) assured industry that the spate of regulations on food standards and safety will abate in the next 6 to 12 months. Industry, he said, would be given ample time to align their products and processes seamlessly to the new standards.
He added the budget announcement on creating farmer producers’ organization would go a long way in connecting with the farmers. The government, he said, would facilitate the aggregation of farmers and their linkage with food standards and government schemes.
The day-long convention witnessed a CEOs’ panel discussion on the growth and opportunity in food processing, digitalization in food marketing, innovation and opportunities for food start-ups and building of consumer trust.
According to Rana Kapoor, MD & CEO, YES BANK & Chairman, YES Global Institute, “India has developed a vibrant entrepreneurial landscape and steadfastly strengthened its position as the third largest start-up ecosystem globally. This is visible in our Food Processing sector and associated ecosystem, which has witnessed a wave of entrepreneurship with disruptive and futuristic ideas, especially in the last five years. Collaborations, linkages and partnerships among key stakeholders including start-ups, will help develop scalable future-ready solutions, supported by conducive government policies. Progressive Government initiatives such as Startup India, Atal Innovation Mission, a dedicated Women Entrepreneurship Cell in NITI Aayog and numerous startup-dedicated investment funds, are playing a key role in fostering the culture of innovation and entrepreneurship in India.”
The FICCI-YES BANK report states that a robust regulatory environment can enable a favorable macro-economic environment to nurture the growth and development of technology-based startups. The government has also taken note of this trend and it is expected that ‘Startup India’ will facilitate this growth and development by putting in place the right steps towards creating a nurturing ecosystem for startups. Late stage startups – by virtue of their maturity and relatively proven business models have much easier access to funds.
However, the current uncertainty in the Indian market means that early stage startups are finding it difficult to raise funds at a stage where they need the maximum financial support. In this scenario, a government-backed fund such as SETU (Self Employment and Talent Utilization) Fund can prove to be a reliable resource, desperately needed for these startups to get started. Such a fund can make a real difference to the ecosystem and provide momentum to the wave of innovation that has begun in India.
