Food
of the GODS
To
promote industrial growth, Kerala plans to set up self-contained industrial
hubs including some for food processing, finds Binny Sabharwal
Kerala,
regarded as ‘God’s own country’, celebrated for its backwaters, its
splendid spread of flora and fauna augmented by congenial climatic conditions
has always been an ideal destination for tourists from all over the
globe. But now the Government of Kerala has finally decided to look
beyond tourism and encompass other industrial units in the state too.
The state, tucked in the southern-most tip of India is now fast emerging
as a land of infinite opportunities and a popular destination for investors
from all over the country.
Its
strategic location on the trans-national trade corridor, world-wide
connectivity, rich resources, and highly skilled manpower all combine
to make Kerala one of the least cost production destinations of the
global economy.
All
this adds up to provide vast opportunities for the growth of various
industrial sectors, including Food Processing, in the state. According
to a spokesperson of Kerala Industrial Infrastructure Development Corporation
(Kinfra), the food-processing sector commands Rs 5,000 crore in exports
today and has a potential to become a Rs 30,000 crore industry in this
southern state.
According
to the latest statistical data presented at the recently held Global
Investor Meet (GIM) in Kochi from January 18-19, 2003; food forms 2/3rds
of the exports from Kerala, that is 1/5th of India’s total food exports.
Kerala is also home to 75 per cent of seafood units certified by the
European Union. Accessibility to sea routes has also made the state
a grand export hub that caters to the huge overseas market of ethnic
products. The exports in 2001-02 totalled Rs 7,038 crore; cashew export
alone amounted to Rs 965 crore.
Kerala
also has a big resource pool. Seventy-one per cent of the plantation
crops in the country are produced here. Raw materials for products related
to marine life, spices, cashew, herbals, fruits and vegetables, tea,
coffee, dairy, meat and poultry are in abundance.
The
state also benefits from its geographical location. Strategically situated
on the western coastline, provides it with a gateway to various Gulf
and European countries.
| Consumers
of confectionary items |
| |
Biscuits |
Chocolates |
Hardboiled
sweets |
Ice
cream |
Milk
food |
| Kerala |
13.4 |
4.0 |
10.0 |
4.4 |
5.0 |
| Mumbai |
9.7 |
3.2 |
2.7 |
3.8 |
1.9 |
| Delhi |
7.6 |
1.6 |
2.0 |
2.9 |
1.7 |
| Chennai |
3.9 |
1.3 |
2.1 |
1.6 |
2.3 |
| Bangalore |
2.2 |
0.8 |
1.1 |
1.0 |
1.5 |
| Figures
in millions, for January-June 2001 Source: IRS |
Besides a big export market base, Kerala also has a huge domestic consumer
base. According to an IRS 2001 survey Kerala has the highest consumption
of confectionery items as compared to other metropolitan cities in India.
To
exploit this potential, the State Government has come up with a plan
to set up food parks at Adoor and Palai, a herbal park at Wayanad, a
bio-technology park at Thiruvananthapuram and a seafood park at Aroor.
All these plans were presented to lure various potential investors during
seminars at the Global Investor Meet.
The
proposed parks include a 100-acre food processing park in Adoor and
a 60-acre one in Palai. The major thrust areas of these parks would
be soft drinks, fruit juice, fruit pulp, concentrates, dehydrated and
dried vegetables, spices, essential oil, noodles, vermicelli, tomato
sauce, jam, jelly, nutrition foods, breakfast cereals, ready to eat
snacks and meals. According to Kinfra, these parks have been planned
to incorporate all modern technological amenities and infrastructural
support. These food parks would also benefit from the ‘Kerala advantage’
of the availability of food crops such as rice, pulses, sugarcane and
black pepper. Adoor and Palai also have the location advantage, being
close to the markets of Thiruvananthapuram and Kochi. A quality control
laboratory would be set up at the food processing part in Ernakulam
that will cater to food processing units within as well as outside the
proposed parks.
Abundance
of coconut produce in the state can also translate into a major revenue
stream. To exploit this sector there is a proposed project for an integrated
coconut complex.
Opportunities
abound in biotechnology too. The proposed biotechnology park at Thumba
would focus on marine and agricultural biotechnology and traditional
medicine.
The
State Government has also announced various incentives to all investors
in these areas. The Kerala State Single Window Clearance Board chaired
by the Chief Secretary has constituted a committee to consider the special
package of incentives for the projects that have evolved as part of
GIM.
