Date:02/11/2009 URL: http://www.thehindubusinessline.com/2009/11/02/stories/2009110251701100.htm

Back A State with potential in food processing

FOCUS KERALA.

G. Chandrashekhar

Precipitation, sunshine, varying terrain/soil conditions and long coastline are major advantages that facilitate production of wide varieties of foodgrains and commercial crops in Kerala. Although, in volume terms, Kerala may not be a large producer of field crops, the variety is mind boggling. The State is home to hundreds of rice varieties. It grows tapioca, millets and pulses. Commercial crops include tea, coffee, and rubber, spices (pepper, ginger, nutmeg, cardamom), c ashew and coconut. In addition, there is a large fisheries sector.

COMMODITY BOWL

Many of the commodity boards and export promotion councils are located in the State. With such diverse production base and thriving trade, the State can truly be described as India’s commodity bowl.

Coconut provides a major source of income because of the large production base and the multifarious uses the tree and its parts (coir, shell) can be put to. Cashew is another crop with tremendous commercial opportunities.

Rubber has emerged as the most important plantation crop. The State produces 75 per cent of the national cardamom output and a fifth of national coffee output (mainly robusta). Cocoa and vanilla have also emerged as important crops with commercial value. Cocoa production is about 6,000 tonnes (half of national output).

Given large fresh water area, brackish water resources and long coastline, Kerala’s fisheries sector has assumed prominence. The State accounts for 20 per cent of marine fish landings in the country. .

The State is home to a large number of medicinal and aromatic plants that have pharmaceutical and nutraceutical uses.

Of the over 1,200 food processing units in the State, majority are small-scale. Many cater to the export market.

With a dose of investment in modernisation and scaling-up, the State’s food processing sector holds enormous potential for expanding domestic and export business, especially for value-added products.

According to reports, the State food processing sector’s current exportearning of Rs 5,000 crores has the potential to multiply six times to Rs 30,000 crores. A policy environment conducive to business promotion is necessary in order to attract investment. Encouragement to contract or cooperative farming, promotion of retails business and development of efficient terminal markets for produce can further transform the State’s economy.