Regeional Cusinnes

I am posting here a map of India. Found it from somewhere over net. Expressing gratitude to the source, this is illustrated here that rural industralisation though Food Processing Technology can easily be adopted by packaging and marketing of the regional food cuisines.

S, C. Srivastava, dt Lucknow, 11 December' 2009.

Entrepreneurship Development Through Food Processing

Kindly refer to the following links, which are to my published articles in E-Zine in TIMES India
www.techno-preneur.net/information-desk/sciencetech.../OSMO.pdf
www.techno-preneur.net/information.../Product-Development.pdf

Project Concept for Regeneration of Agro-Processing Traditional Industries (RAPTI)

Objectives: –

1. Developing other regional fruit/vegetable and cereal based foods and cuisines into “marketable surplus"
2. To utilize rural non-workers and marginal workers (including women) man power towards economically productive activity
3. To provide hygienically prepared cut, peeled fresh vegetables to Urban families
4. To innovate and traditional foods using modern scientific techniques
5. To gain rural market share in food processing area
6. To promote traditional practices, dietary pattern and regional, nutritive food recepies.
7. To provide Post Harvest Facilities in rural area
Special Features of the Project
· High percentage of major “stakeholders” amongst the beneficiaries of the project
· Appropriate profit sharing
· Primary processing from Farm/Orchard to consumers' dining table (Harvesting, removal of field heat, sorting, grading, utilizing gluts, peeling etc.) has been identified as the area of opportunities. This fact ensures the profitability of the project.
· Handling large varieties of Fruits and Vegetable, condiments and spices, cereals & other food commodities offer all-year-round business.
· Scope for large scale public participation
· Simple technologies, which are largely traditional. These technologies are proposed to be innovated to meet international standards of health, hygiene and quality.
· Except Quality Control Lab in proposed CFC, nearly all capital investment is easy to liquidate.
· The project is being proposed to be launched in the area where sodaic land is very occident thus needing intervention at non-farm-sector.
Short Narrative
Fresh F & V. including their products are proposed at growing (Farm/Orchard) site. Primary treatments to maintain freshness and to prevent spoilage shall be given. The SHGs shall do these activities. A few SHGs may be involved to prepare specialized intermediate products or ready to serve products from cull grade of the crop. These SHGs may acquire premises for FPO licensing. That is why the SHGs have to be grouped according to their field of specialization. These groups may be mutual suppliers and processors. The end product shall be standardized for quality at a CFC (Common Facility Center). This CFC shall handle market distribution, while funds of each SHG shall be maintained and managed by them. The network proposed is for benefits, not for interdependence; hence every SHG shall be independent node in decision making and forming their own network.
`Thus, common threats and common goals for the SHGs of the network are expected to be cohesive.
This network, may in later phases, handle Organic Cultivation, exports and use most modern technology like IQF.
The tables and description given here are just illustrative, not comprehensive
Implementation Plan (Highlights only)
· The project shall be phased
· Establishment of CFC is proposed to be taken up in the second phase
· CFC shall be managed by a Governing body (District Level)
· Ownership holder of the CFC shall be treated as stakeholder and eligible for profit sharing
· Networking of about 2000 SHGs for group specific activities
· The funds shall be managed by each SHG independently. They shall be required to pay for the services of CFC availed by them
· Fresh frozen peeled, cut vegetables shall be made available at par price of unpeeled and unprepared vegetables sold in the market
· Focus shall be on rural market
· Intensive Training and crash course in Fruit and Vegetable Handling and Hygiene shall be imparted to all participant members of SHGs
Activity, and other salient aspects are briefed as under
Proposed Income generating Activities
The activities and the Product Range have been grouped according to various skill levels and according to the classified product range as follows: -

DESI FOODS & ENTREPRENEURIAL SCOPE

At the outset, let me narrate an event witnessed in the year 2006. Once I with my wife went to a remote village in Karnataka. On Bangaluru-Mysore rail route, there is a small station VIRDI. We went there by train, took an auto to about 7 kilometers south to village Byramangla. I am from Hindi speaking area, can communicate either in Hindi or English. We stayed at Byramangla for about a weak. Our hosts were an old couple of rural background. As there were no hotels, dhabas or any other option we took our meals with them cooked by their maid. Although the dishes were somewhat unusual from our north Indian rural area, yet we enjoyed it and my wife became fan of one particular cuisine, a type of tomato chutney, which was served to us during our every meal. Every time it was freshly prepared item and the main ingredients were tomatoes, garlic, turmeric pulp, salt, much of red chili powder and jaggary. The item was so appetizing that wife keenly trained herself to try it at her household at Lucknow (Uttar Pradesh), India. All grocery shopping was done at tiny bazaar situated near tiny township of Virdi at Mysore-Bangaluru highway, 7 kilometer away from Byramangla. I happened to go to the market for some errand. There were about 3 general merchant’s shops, 10 to 15 kiosks and vending thelas in all. During shopping for general merchandize I noticed a PCO and stood in a queue to make a few telephone calls because my mobile phone kept being out of network at Byramangla. While waiting in the queue inadvertently I made a minute inspection cum survey of the commodities being vended nearby. One vender seemed very popular. He had selling roasted cereals (Laiya-Bhuja) along with what seemed to me mouth freshener pouches with or without tobacco. This vender attracted crowd and was busy. I was happy to see the popularity of Desi Food (roasted cereals) in the southern part of the country. What an example of unity in diversity phenomenon of India. This food item was popular from north to south and east to west. As a Food Technologist I mused over the quality parameters, scope for diversification, and organised marketing strategy of Bhooja (we, in eastern part of Uttar Pradesh call roasted cereals and pulses as Bhooja). The thought was becoming pregnant with novel ideas. Engrosses in my line of thinking I suddenly noted that almost every buyer of roasted cereals bought one or two pouches of mouth fresheners. This was an unusual buying pattern. Why, at the first place a Bhooja vender should vend mouth fresheners and secondly even if it was available with the vender why, on earth, a Bhooja buyer would buy mouth freshener along with Bhooja? I am sure my readers must have tasted Bhooja and know that it needs or jaggary or just a pinch of salt as accompaniment plus plain water. After you finish the dish, clean your buccal cavity (mouth) only then, if you like, you may use tobacco or mouth freshener. Perplexed with the quiz (mouth freshener-Bhooja combine), I was reminded by the gentleman standing in the queue just behind me to use the PCO phone or leave the queue. The language problem restricted me to share my thoughts with anyone there. I hastily entered PCO cabin finished my calls and rushed to the particular vending shop to have a closer look.
First I bought Bhooja worth Rs. Ten, just to appear friendly with the vender because we both faced language barrier. Then I inspected the pouches displayed. As complete solution to my “accompaniments and garnishing” question quiz dawned upon me. The pouches were of Tomato Chutney – 50 paisa each. This appeared to be an ideal accompaniment of Bhooja. What I had contemplated to be mouth fresheners, turned out to be pouched hot chutney. Wasting no time I bought 20 pouches. My anxiety had pacified now. After a while, I returned back to Byramangla.
Here I narrated the story to my wife. She, out her fancy for newly acquired culinary skill of tomato chutney making (Byramangla-style), opened a pouch. We tasted it and found to almost exactly as we were being offered at the dining table of our hosts. Later after we retuned from our trip, I analyzed the Chutney and found 156 ppm Benzoic Acid and 0.047 % Acetic Acid. Microbial and tomato solid count was well within FPO limits. The pouches were tastefully designed to reveal FPO mark. It was manufactured at Chennai on the behalf of a marketing company based at Bangaluru.

After narrating this event I ask to my dear readers—“What an idea sir ji?”

The title of this bogged essay is targeted to point out Desi (regional) Foods like the Byramangla-style Tomato Chutney. In eastern Up & Bihar it could well me Chili-Garlic Chutney for the same “Bhooja”. Its target buyers would be about 5 lacs of labour force working in various parts of the country in Brick Kilns (Bhatha) and real estate construction work. It is Technologists and market appraisal personnel’s job to identify such opportunities and formulate the establishment of macro or micro enterprises. This is the area of product development for rural food processing units. My article (http://www.techno-preneur.net/information-desk/sciencetech-agazine/2009/June09/july-index.htm) may be referred to for more information and how-to-do-it solutions.

OSMO-AIR DRIED FRUIT PRODUCTS

OSMO-AIR DRIED FRUIT PRODUCTS
A novel approach towards dehydration
As we talk about processed foods, a few common products like Tomato Sauce, Squashes, Jams, and Jellies flash into our minds like catchwords or prompts. We apt to forget traditional and indigenous products like dried, and/or pickled foods. The reason is not without logic. Mind’s reaction and orientation is logically ‘natural’ because the inventor of the art of modern food preservation/ processing was a French backer, Nicholas Appert (1804). He ‘invented’ the ‘art’ which after another French scientist, Louise Pasteur’s (1826) invention of the world of micro-organisms, became a full fledged ‘science’. After Appert and Louise Pasteur scientists started pioneering works mainly in America. They methodologically revealed the “Principles of Food Preservation” and those were engaged in the applied aspect listed out the “Methods” of Food Preservation. Since the scientists of applied food science research were Europeans, therefore, they could concentrate over the products suitable for European dietary habits and patterns. The scenario is now changing. All developed and developing countries are now busy in examining the commercial potential of their respective regional food preparations and also evolving new cuisines, product mixes for better health and economic value. The list of such innovative yet traditional products is long and exhaustive. In present essay I shall limit myself in discussing about a technique which is a combination of two principles of food preservation namely the dehydration and preservation by sugar. To skip a long technical description of the technique, it is worthwhile to quote this from the researches conducted by Central Food Technological Reaseach Institute (CFTRI), Mysore as follows:
“Osmo-air dried fruits are the dehydrated fruit products based on the novel approach towards dehydration. Osmo-air dehydration involves dehydration of the fruit slices like pineapple, jackfruit, mango in two stages. The first phase is the removal of water using sugar syrup as an osmotic agent. The second phase of the dehydration is the air-drying where the moisture content is further reduced to about 15%. The product of the osmo-air-dehydrated product is found to be near to the fresh fruit in terms of colour, flavour and texture. It can be consumed as a snack. It can also find use in military rations in suitable packing. The osmo-air dried fruit products can be used in ready-to-eat type of foods, ice cream, fruit salad, kheer, cakes and bakery products. Such osmo-air-dried fruit product based units, can be set up in rural areas nearby fruit gardens, to the benefit of rural people. The process is simple and involves preparations like selection of fruits, cleaning, washing, peeling, curing and slicing/dicing. The prepared fruit slices are soaked in sugar solution to remove water by osmotic pressure. Then the slices are drained and dried in hot air drier. The dried fruit is packed in flexible pouches or in blister packs“ (Source-(A Compendium of Selected Technologies Food Processing in Rural Sectors )(CFTRI)
The Osmo-Air Drying technology has fruit specific advantages. A ripe Jackfruit eye (de-stoned) has shown marked increase in taste and aroma (CFRTI: Product development bulletin). This fruit has still not been able to occupy its due place on the dining tables of the effluent and urban societies, although it is consumed in its production area (mainly eastern Uttar Pradesh and parts of Madhya Pradesh & Jharkhand). Guva, which is well known for its nutritive value has been found more acceptable in Osmo-Air –Dried Slices and Leather (osmotic dehydration, guava slices, leather, drying, mass reduction, solid gain, water loss, NEB, ERH- V.R. Sagar, P. Suresh Kumar, International Society for Horticultural Sciences (ISHS) Acta Horticulturae 735: I International Guava Symposium ) is another example. Litchis, Figs, ripe mango slices, apricots etc, provide multiple times value addition when marketed in osmo-dried form because they are considered as delicacies.

Hottest of all, a product made from Amla (Indian gooseberry)-- Amla Laddu -- can be profit leader amongst all fruit & vegetable processed items, provided Its technology is adopted on Osmo-drying technology. Amla Laddu is becoming very popular due to several preferential factors than Amla Muabba. Firstly, it is cheaper than Amla Murabba; secondly, it doesn’t contain Amla kernel (as in Murabba) thus tastes less sweet; thirdly, one Amla Laddu contains more Amla pulp than one piece of Amla Murabba. Now let us list out the draw backs of Amla Laddu. Firstly, it is still a non standardized item. FPO 1955, which defines the product attributes, is silent about Laddu. This results in non conformity in size/weight per Laddu and variation in the colour. Osmo-drying process can be the correct answer for Amla Laddu’s shortcomings. When Osmo-drying technology is used, the product shall be more cheaper (because of low sugar content as compared to traditional Amla Laddu). It can be more colour consistent. The pieces of Osmo-dried Amla Laddu can be reconstituted in real Amla fruit image by using appropriate moulds, and they shall appear transluscent with real fruit shine and can be Blister packed.
1Amla Laddu (Traditional) in the market
If the traditional technology of Amla Laddu manufacturing is replaced by Osmo- drying technology, and they are moulded into real Amla shape and size before packing loose or in blisters strips, it may herald a new era in the world of Amla processing and trade. This revolution may equal to a similar revolution witnessed by us in Potato Chips area by the advent of Uncle Chips.
Equipments and further references
The project for Amla Laddu manufactures by OD method demands for fully automatic plant and adequate R&D support. Hence this project is capital intensive. Others need medium to low investment. A general estimation has been given by the CFTRI as follows:-
The equipment and gadgets required include fruit slicer/dicer, hot air drier, chula, SS vessels, sieves, handling gadgets and heat sealer.
Estimated project cost:
Capacity of the unit : 50 kg/day
Building : 50 M2
Equipment : Rs.1,00,000
Working Capital (1 month) : Rs.50,000
Utilities per day: -- Manpower : 6 Nos. --- Power : 8 KW -- Water : 3,000 litres -- Fuel – coal/firewood : 100 kg
For manufacturers/suppliers of relevant equipment an gadgets, refer to:-
1.Deccan Kampa Enterprises, 60, Central Bazar Road Bajajnagar, Nagpur-447 010
2.Arctic India Sales, 20, Rajpur Roads New Delhi.(Source-(A Compendium of Selected Technologies Food Processing in Rural Sectors) (CFTRI); The actual cost of projects may vary from place to place.

Food Processing vis-a-vis Rural India

Exploration of Entrepreneurial Scope in Ago-Based Food Processing Sector in India

“It is of vital importance to enrich low grade foods; develop new types of protective foods from indigenous food resources in conformity with the time honored taste and dietary patterns, apply traditional methods scientifically and adopt them to get food of better nutritional value”
----- Jawahawlal Nehru
The above quote might serve as a key-note in the search and exploration for the scope of Entrepreneurship Promotion and development of Food Processing Industries in India at large. The quote may be further expanded to give way to a thought process which is entirely new but crucial as well, for the promotion of ‘Food’ related subjects. Without entering into detailed debate over what the great man said, it is worth to highlight the “Food For Thought” contained in the saying with is pertinent to invoke a new vision for Food Processing Industries in India. It is represented below diagrammatically:
Food Processing Industries ---
1.Enrich low grade foods
2.Develope new types of foods. ----from Traditional Foods from Indigenous Food Resources , with emphasis on--1.Taste (TQualityM) & 2.Dietry Pattern
3.Apply traditional methods.
Continuing the above thought process, the exploration for the scope of Entrepreneurship Promotion and development of Food Processing Industries is narrated beginning with the Attitude during exploration, present Potentials, critical Discussion, examining the market scenario; some conclusions are drawn with a view that home and cottage scale FP Industries may turn towards highly potential Rural Market of India, before the shadow of towering MNCs, and corporate world.
This is the high time when the traditional food dishes should be examined with their regional variations to catch rural buyers who are though poor but form the majority.
The Attitude:
While exploring the scope for Entrepreneurship development in an area like Food and Drink, which bears not only commercial but also social and cultural values, a close analysis of the whole network – from production to consumption – is essential so that three basic strategies can be decided; viz:
1. For whom to produce (the end product of a value-addition process)? In other words, what/who would be the targeted market/buyers?
2 What to produce? In other words, what kind of Goods or Services? And
3. How to produce? In other words; whether a viable technology is available/accessible?
Nevertheless the Entrepreneurship is deemed as an endeavor to generate “goods” or “services” which can be exchanged as trading commodity. Thus, choosing the target group of consumer is of prime importance. Since the place where trade exchange takes place is termed as “Market”, therefore, allowing every possible speculation like export or bulk buying tie-ups, main focus has to be “Domestic Market”. Viability of the project or enterprise must be based on Local or Indigenous Market This statement does not undermine or underestimate the importance of 100% EOUs (Export Oriented Units) but rather substantiate it, because “Qualitatively standardized domestic surplus can be export commodity” (Indian Food Packer, vol XXXIII). It is, therefore, necessary to understand the domestic consumer groups; its needs, wants, liking and overall welfare too.
The success of any enterprise depends on its social acceptance, which is reciprocal to the benefits it (the enterprise) spills over amongst masses. Business and Welfare must be complementary to each other. A note of caution must be kept in mind that the society (mass) is rarely enthusiastic into long-term goals; instead it wants immediate and apparent benefits. Thus, the activities, which aim towards long-term goals, are often ignored or even opposed by the society at large. General populace is not at all concerned with the future gains from Sardar-Sarovar or Tehri-Dam projects, but their immediate worry is that of deportation and becoming homeless. Thus, the product should be utility based.
Let us now examine the potentials in the area of Agro-Based Foods
Potentials:
The following points are to be noted, because they shall appear later in the discussion:
It is, however, not a heavy weight industry but has the potential to develop into a Sunshine Industry of the country
India is the world's second largest producer of fruits & vegetables, but hardly 2% of the produce is processed. India is the land of spices producing all varieties worth over Rs. 3500 crores (US $ 900million) amounting to 25-30% of world production, which is processed for value-addition and export.
Primary food processing is a major industry with lakhs of rice-mills/hullers, flour mills, pulse mills and oil-seed mills. There are several thousands of bakeries, traditional food units and fruit/veg./spice processing units in unorganized sector.
Important sub sectors in food processing industries are:- Fruit & Vegetable Processing, Fish-processing, Milk Processing, Meat & Poultry Processing, Packaged/Convenience Foods, Alcoholic beverages & Soft drinks and Grain Processing etc
The industry has witnessed fast growth in most of the segments. As per a recent study on the food processing sector, the turnover of the total food market is approximately Rs.250,000 crores (US $ 69.4 billion) out of which value-added food products comprise Rs.80,000 crores (US $ 22.2 billion)
In the organized sector, there are over 820 flour mills, 418 fish processing units, 5198 fruit/veg processing units, 171 meat processing units.
Size of the semi-processed and ready to eat packaged food industry is over Rs. 4000 crores (US $ 1 billion) and is growing at over 20% Size of the semi-processed and ready to eat packaged food industry is over Rs. 4000 crores (US $ 1 billion) and is growing at over 20%
(Source- 1 APEDA Export Statistics and Annual Report 1999-2000,MFPI
2 From Ministry of Food Processing Industries, Govt of India web site)
Discussion
Under prevailing circumstances the policy makers are very pessimistic about the “domestic consumption/market” by stating that:
“…In spite of the fact that India is the second largest producer of fruit and also of vegetables in the world yet the commercial processing of fruit & vegetables is less than 2.0%. The main reason being that domestic consumption of processed items is quite meager because of economic reasons and also as a matter of habit. The Indian consumers by and large very much prefer fresh fruit & vegetables. The high cost of packaging pushes up the cost of the processed items and thereby makes them out of reach of the common man….” (Annual Report’2000, MFPI, Govt of India)
The fact is true, but the reason thereof is only partially true. Lower domestic consumption may not only be due to cost, affordability and food habit factors; other factors like “Presentation” and “Product Range” may equally be responsible for lower domestic consumption. Probably the error in investigation for the cause of lower domestic consumption lies in identifying domestic market with Urban Market only, completely ignoring Rural Market on the grounds of food habit or eating behavior. The potentials highlighted above indicate that Primary food processing is a major industry; Let us understand why? Most probably it is because, in quantitative terms, its share is more in Rural Market than in Urban Market; Also because the cereals form major portion of Indian diet. Thus, if rural market oriented “Presentation” (attractive pouch-packs) and the “Product Range” (ready to eat Traditional recipe products) may be encouraged in Food Processing sector, there are good chances that the industry would get may be meager share, but vast in size, of Rural Market of India. Then the term “domestic” market may signify real domestic market of India.
It is very pleasing to note that in speculating the Future of the Industry, the agencies and Govt departments of India have indirectly focused their attention to rural areas, though with a view not to explore rural market, but to harness the traditional Foods for urban and export markets. Their vision for future is:
“….Because of the liberal government and other developmental measures being taken the future of the Industry looks very bright. The production base is being enlarged, modern methods of cultivation are being adopted thus improving the productivity and cutting the per unit cost. To some extent cold chain is being provided, which will help in retaining quality, freshness and reduce post-harvest losses. With the new hybrid varieties being added the production season is also being extended. These developments shall result in the greater availability of quality raw materials to the industry thus resulting in better capacity utilisation and producing a wider range of products and of international quality. The quality is now the watchword for success. The multinationals now entering the food industry have an international marketing network and have their brand loyalties all over the world. This will enable the Indian products reaching all over the world in the form and packing required. With the rise in the per capita income particularly of the middle class a drastic change in the food habits has been noticed. This will lead to an increased domestic consumption of processed foodstuffs. India produces large variety of fruits & vegetables ---- tropical, sub-tropical or temperate. These include mango, banana, apple, orange, chikoo, ber, pomegranates, etc., and vegetables like potato, tomato, onion, cauliflower, cabbage etc. The total area under fruits and vegetables cultivation is estimated to be at 5.63 and 5.6 million hectares……”
(Source- Annual Report 1999-2000, MFPI/APEDA
Export Statistics & NHB Horticulture Statistics.
The future vision is clear but still it seems ignoring vast rural market of India. Quality is, of course, watchword and the concept of TQM (Total Quality management) is a must; on the other hand facilitating the unorganized sector of the Industry too is essential because precisely that is the sector which fits in properly in terms of utilization of man power and mobilizing the indigenous resources. The corporate world, MNCs and Joint Ventures would continue to be Major players in the Industry but small and cottage scale Entrepreneurs must not be ignored.
A possible way for absorbing the efforts of unorganized sector is to break-up the manufacturing process, and shift labour intensive processes like peeling, cutting/slicing/pulping etc to them, thus creating a network for procurement of raw materials (especially fresh fruits and vegetables). These processes may be called “Semi-Finished Processing” from Final product Manufacturers view, not from consumer point of view as the Ministry of Food Processing Industries; Govt of India has recognized the term “Semi-processed/Ready to eat food/ Convenience Packed Foods”.
This sector (Semi-processed/Ready to eat food/ Convenience Packed Foods) too has enormous potential to capture the attention of the consumers of rural area. The present status has been projected as under:
“….This segment comprises of bread, biscuits and other bakery products, confectionery, chocolates and cocoa products, soya-based products, ready to eat pasta products like noodles, cereal flakes etc., high protein foods and other processed foods/snack foods. Besides, items like starch, glucose etc, required for food products is also included. The Soya products industry, worth over Rs.80 crores (US $ 22.2 million) , has been growing at around 10% and includes products like soya milk, nuggets, flour and texturised soya foods & snacks. Several large units have come up due to their enormous export potential.
The size of the semi-processed/ready to eat food segment is over Rs.4000 crores (US $ 1.1 billion) with over 60,000 bakeries, 20,000 traditional food units and several pasta food units. Large biscuits & confectionery units, soyas processing units and starch/glucose/sorbitol producing units have also come up, catering to domestic and international markets. In confectionery & cocoa based products several MNCs have set up manufacturing units. Production of macroni/noodles is about 16500 tons, pearl barley at 1,240 tons and corn-flakes at about 600 tons. Annual Production of bread & biscuits and other bakery products in the country is estimated at 30 million tonnes.
(Source-Food Processing Industries in India)

Above discussion is based on two key terms ---- Market Size, and Market Portion or share. As regards Rural Market, its size is enormous (nearly 10 times compared to Urban), but processed foods have negligible share in this (rural) market. Let us now see what are characteristics and trends, and what is the situation of other consumer goods manufacturing companies including MNCs which have paved their way into the Rural Market
Rural Marketing
The rural India has a plethora of opportunities all waiting to be harnessed
Not surprisingly, it has become the latest marketing buzzword for most of the Market players. Many of the MNCs are busy formulating their rural marketing strategy to tap the chance .To name few companies showing deep interest in rural India are HLL, Marico industries, Colgate – Palmolive and Britannia Industries.
Why Rural India?
Almost 70 % of India’s population lives in 627000 villages in rural areas. 90 % of the rural population is concentrated in villages with a population of less than 2000, with agriculture being the main business. This simply shows the great potentiality rural India has to bring the much-needed volumes and help the companies to bank upon the volume –driven growth. This brings a boon in disguise for the MNCs who have already reached the plateau of their business curve in urban India.
As per the National Council for Applied Economic Research (NCAER) study, there are as many 'middle income and above' households in the rural areas as there are in the urban areas. There are almost twice as many 'lower middle income' households in rural areas as in the urban areas. At the highest income level there are 2.3 million urban households as against 1.6 million households in rural areas.
According to the NCAER projections, the number of middle and high-income households in rural India is expected to grow from 80 million to 111 million by 2007. In urban India, the same is expected to grow from 46 million to 59 million. Thus, the absolute size of rural India is expected to be double that of urban India.
MARKETING STRATEGY:
In-depth knowledge of the village psyche, strong distribution channels and awareness are the prerequisites for making a dent into the rural market.
Rural Market Psyche:
The price sensitivity of a consumer in a village is something the rural marketers should be aware of. In terms of Mr.Dalveer Singh –VP, Ogilvy Outreach, the strategy revolves around what attracts the rural customers to a product. For e.g. packaging. The rural customers are generally the daily wage earners and thus they don’t have the monthly incomes like their urban counterpart has .So it makes sense, packaging in smaller units and lesser-priced packs to increase their affordability. Colour that attracts them is also important. Convenience is the other key word. Here Colgate is the apt example. First of all it made sachets as was required by their income streams. Secondly –since many households don’t have proper bathroom and only have a window similar things so it made sense to cap these sachets for convenience of storage while use. Britannia with its Tiger brand of biscuits with its low priced and conveniently packaged products became some of the success story in rural marketing.
Distribution channel:
Study on buying behaviour of rural consumer indicates that the rural retailers influences 35% of purchase occasions. Therefore, sheer product availability can affect decision of brand choice, volumes and market share. Some of the MNCs giants like HLL took out project streamline to significantly enhance the control on the rural supply chain through a network of rural sub-stockists, who are based in the villages only. Apart from this to acquire further edge in distribution HLL started Project Shakti in partnership with Self Help groups of rural women.
Awareness:
Mass media is able to reach only to 57% of the rural population. Creating awareness then, means utilizing targeted, unconventional media including ambient media .For generating awareness, events like fairs and festivals, Haats etc. are used as occasions for brand communication. Cinema vans, shop-fronts, walls and wells are other media vehicles that have been utilized to increase brand and pack visibility. Ideas like putting stickers on the hand pumps, walls of the wells putting on tin plates on al the tree surrounding the pond are some of the innovative media used by personal wash like Lux and Lifebuoy and fabric wash items like Rin and Wheel. Idea was to advertise not only at the point of purchase but also at the time of consumption.
(Source: From “Rural marketing” to “Awareness” -- Shiromani Kant, India Infoline Newsletter.)

Conclusion:
The Food Processing Industry sector in India is one of the largest in terms of production, consumption, export and growth prospects. Packaged food products have been slow in penetrating the large potential presented by India's 250 million strong middle class. The growth of processed food product depends on the changes in the attitude, life style of the consumers and the promotional activities. The products should, therefore, be processed according to the tastes and preferences of the consumers to get their acceptance. In addition, the price, quality and the nature of packaging must also be appealing to the consumers.
It is important to note that the household consumers' market is rapidly changing in terms to taste and preferences of the consumers. This may be due to urbanisation, increase in working population, literacy level and increasing trend in the foreign travels. Thus, the scope of Entrepreneurial Development is enormous in this sector provided Domestic Rural Markets are focused as first target group for marketing
In addition, other changes like increase in size of household, family income and hence in the standard of living; change in food habits and increasing health consciousness etc., have also brought in the attitudinal changes among the consumers. It is , therefore, important that the enterprise should focus the Domestic via-a-vis Rural market. Definitely there is lot of money in rural India. But there are hindrances at the same time .The greatest hindrance is that the rural market is still evolving and there is no set format to understand consumer behaviour .Lot of study is still to be conducted in order to understand the rural consumer. Only Entrepreneur who can understand and evaluate the rural consumer groups; its needs, wants, liking and overall welfare, with unwavering rural commitment and staying power will be able to stay longer on this rural race.
Some Important Contacts for further Guidance:
1.Mr. A.M. Manektala, Coordinating Officer, Information and Facilitation Centre, MFPI, Panchsheel Bhawan, Khel Gaon Marg, New Delhi-1100049
2. Email to Joint Secretary, A N P Sinha
3. Public Relation Officer, CFTRI, Mysore
Acknowledgements:
1. Indian Food Packer, vol XXXIII
2. APEDA Export Statistics
3. Annual Report 1999-2000, MFPI
4. Ministry of Food Processing Industries, Govt of India web site
5. NHB Horticulture Statistics
6. Food Processing Industries in India.MFPI Publication
7. Shiromani Kant, India Infoline Newsletter


About the author:
S.C. Srivastava, Food Technologist. Worked nearly all areas varying from Technical research/study Projects and Managing Large Scale Factories to Rural Industrialization, Marketing, Product Development etc. related to Food, more specifically, Fruit and Vegetable Processing for about 40 years; now retired as Deputy Director (Extension).Department of Horticulture and Food Processing, Govt of Utter Pradesh. In his official capacity he had been a member of advisory committee on Food Standards, FAD-10 to Beuro of Standards (BIS). Govt of India. Presently he is working as Consultant and Advisor to many Food Processing Enterprises. His contact address is
C-2045/4, Indira Nagar, Lucknow, Pin-226016, Phone 0522-2340432

ED

Entrepreneurship Development for Semi-Finished Food Processing Units in Rural Areas
What are “Semi-Processed” Foods?
All handling activities of edible commodity after it is harvested but before it is finally consumed are termed as “Processing”. Processing is further classified into three main stages:
Primary Processing – thrashing, winnowing, cleaning, de-husking, peeling, cutting washing etc. generally these activities are done, in case of cereals and pulses, at field level and in case of other foods, in the household kitchen. Semi-Finished processing -- The term is used to signify the Foods which may be marketed in any intermediate stage of processing before it is consumed Except fresh Fruits, nearly all Foods need some processing (handling, cooking or making them consumable). Final or Finished Goods Processing ---- Making the food in ‘ready-to-eat’ condition
Semi-Finished Processing can be further classified into two, according to perspectives, viz.: 1st Consumer perspective, and 2nd Industrial perspective. For example packed nodules are Semi-Finished item from consumer point of view while it is a Finished Goods item from the point of view of its manufacturer. In other case, suppose some Pickle or Murabba industry need, say Mango and Amla, as a raw material. After procuring the fruit from the market, cleaning, washing, peeling and cutting (if necessary), blanching and pricking has to be done before the fruits are treated with sugar (in the case of Murabba), or with spices (in the case of Pickles). In this case Brined raw mango slices/ pricked Amla is Semi-Finished item from Industrial point of view. For the convenience of narration above two types of Semi-Finished goods shall be called category fist and category second unit. Either of the two instances described above fall within the scope of Rural Entrepreneurship.
Why in Rural Area?
In both the categories, the process from procurement of raw material up to Semi-Finishing is highly labour intensive. In rural areas labour cost is bound to be cheap because the process shall allow part time/ marginal/ household labour instead of full timers. Fresh Fruits and Vegetables can be made available at field level (for category 2nd )
The activity can be made complimentary to Post Harvest Management (for category 2nd )
Availability of female workers who are traditionally superior to men folk in food handling, cutting, peeling, priking etc.
It has been observed that Pickle and Murabba manufacturing units, being tiny in size, don’t have sufficient space to store and provide preliminary treatments to the procured Fruits & Vegetables thus limiting the bulk of production. Thus, Semi-Finished units in the growing areas i.e. villages shall provide an indirect boost to Pickle and Murabba manufacturing units.
Rural Woman welfare at large.
Traditional snack items like Vada, etc are very popular all over India and they are traditionally prepared at homes. However, the preparation of these items is laborious and consumes time. Housewife feels drudgery with the conventional procedures in preparing them. In order to introduce convenience into these items and lessen the drudgery and time, especially of the working women, CFTRI has developed ready mixes of the above traditional items; these snacks can be prepared easily and quickly. The Preparation of these mixes can be taken at cottage scale in rural areas and the investment is less and requires minimum utilities. It can provide employment also.
Source-(A Compendium of Selected Technologies. CFTRI)
Since these units shall have to depend upon the demand of the
specific industry, initially one product per unit may be stipulated till proper forward linkage is
established. Since these units shall have to depend upon the demand of the specific industry, initially one product per unit may be stipulated till proper forward linkage is established
Marketing Strategy:
The following projections are made assuming that all the produce shall be sold out within 3 months. This is only possible if the quality standardization is of high degree and the target market is local/regional. Various regional ready-mixes can be sold e.g. ‘Sattu’ based mixes in eastern UP, Mint/Green Coriander Chutney mix in MP and Mango Panna mix, tamarind chutney mix in several parts. Like wise, non-vegetarian cooking ‘stock’ mixes can be popularized in Eastern States. For this sufficient trials and scientific methods of Product Development would ensure 100% sales. Thus, short term skill training is essential. Govt. Food Science Training Centers at zonal level are there in the state of Utter Pradesh, and alike facility is available in other States also.
Summary and Conclusion
In 1988 one eminent business executive visited U.K. and was astonished when he was served reedy-to-eat naan & allumutter in the lunch. He investigated and concluded that. “There is, however, considerable scope for small scale units with their local flavours. In the matter of foods, standerdised products fall flat compared to products with varied taste and distinctive regional aromas.” (Indian Food Packer Vol XXXIII No4, page 21)
Mr. B.S. Rao, then MD, Markets India, New Delhi remarks, “I have often wondered why so much time and money is spent in designing and marketing the typical western-type breakfast cereals in India. We have such strong attachments and preferences to our “desi” breakfast foods like “puri-bhaji”, “paratha”. “dosa”, “idli” etc. that I can not imagine a large market developing for the western-style breakfast cereal in the country in foreseeable future.”( Indian Food Packer Vol XXXIII No4, page 70). Rao is very emphatic to develop small units for Parboiled Pulses/Channa/Rajma and Parboiled cut vegetables too.
Murabba and Pickle are typical Indian products. in the context of foreign trade and domestic consumption as well, they can’t be overlooked and every possible effort must be made to standerdisation, quality certification and consumer safety. Establishment of Tiny units for supplying farm0fresh/ garden-fresh semi-finished fruits and vegetables ready for final processing as Murabba and Pickle may be a profitable venture for the Entrepreneurs living in villages or small cities. Private sector initiative sees very promising in this area.