09-08-2012, 10:34 AM
PERFORMANCE APPRAISAL
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FOOD PROCESSING INDUSTRY IN INDIA
The food processing industry in India is segmented into food grain /
pulse milling, fruit / vegetable processing, milk and milk products,
beverages, fish, poultry products, meat and meat products, aerated
water / soft drinks, beer / alcoholic beverages, breakfast cereals,
bread, biscuits, confectioneries, malt protein and edible oils / fats.
Like many other industries, the food processing industry also
comprises of both the organized and unorganized sector. Certain
branded and packed products such as butter, cheese, ghee, jams,
jellies, fruit / vegetable juices, sauces and ketchup, soups, broths,
fruit pulp and fruit juice based drinks are already exempted from
Excise Duty. This should be extended to all processed products made
from perishable goods such as poultry, meat, milk, fruits and
vegetables.
The industry is estimated to grow at 9-12 percent, on the basis of an
estimated GDP growth rate of 6-8 percent, during the Tenth Five
Year Plan period. Value addition of food products is expected to
increase from the current 8 percent to 35 percent by the end of 2025.
Fruit & vegetable processing, which is currently around 2 percent of
total production will increase to 10 percent by 2010 and to 25
percent by 2025. Given the size of the industry and the nascent
development stage, the food processing sector is a key focus area for
the Government of India. The importance of the sector is further
enhanced by the fact that over 70 percent of the population depends
upon agricultural activity for livelihood.
The big opportunity for India
As a food supplier, India with the second largest arable land in the
world, and with diverse agro-climatic zones across the country, has
tremendous production advantages in agriculture, with the potential
to cultivate a vast range of agricultural products. For example, India
produces 41% of the world’s mangoes, 30% of cauliflowers, 28% of
tea, 23% of bananas, 24% of cashew nuts, 36% of green peas and
10% of onions. This strong base in agriculture produces a large and
varied raw material base for food processing. These advantages if
leveraged optimally, can translate into India becoming a leading
food supplier to the world. As a consumer, India with a population of
1.08 billion, growing at about 1.6% per annum (Census Estimates) is
a large and growing market for food products.
SSI in Food Processing
The SSI sector accounts for 95% of industrial units in the country,
40% of value added in the manufacturing sector, 34% of national
exports and 7% of Gross Domestic Product (GDP). The SSI sector is
the largest employment generator next only to agriculture. It has
been estimated that an investment of INR 1 million in fixed assets in
the small-scale sector generates employment for forty persons and
produces more than four million rupees worth of foods or services.
The food sector is a leading employer within SSI, providing
employment to 480,000 persons (13% of SSI).
THE ORGANISATION:
The Federation is a State level apex co-operative organization owned
by its member unions each of which, in turn, is owned the dairy cooperative
societies in its area of operation which are themselves
owned by farmer members.
The Federation has a board of directors which has overall
responsibility for the planning policies, financial resource
mobilisation and management, member and public relations as well
as liaison with agencies of the state and central government,
financing institutions etc. The Federation has a chief executive
designated as Managing Director.