Dr. Rashmi H B, Assistant Professor, College of Horticulture, Mysore, Affilitated to University of Horticultural Sciences, Bagalkot, Karnataka, discusses the entrepreneurial opportunities in processing and value addition of horticulture crops.
It is necessary to understand where India stands in horticulture processing and value addition. With the population growing manifold, and dietary needs having changed, it is essential to provide them with nutritious food for health care as per their demand. Also the area of land and water is declining, climate changing, unseasonal rains, and raise in temperature are the challenges we need to tackle now apart from new pests and diseases affecting production of crops. But we have to feed the population, overcome the challenges, and provide the livelihood to the rural community. There are many options like optimum utilisation of resources, knowledge based enterprises, and farmer centric science led development. United Nations declared 2021 as year of fruits and vegetables to draw public attention to the role of the same in food security and health. All of us know fruits and vegetables are good source of all the nutrients we need. FAO and WHO recommend minimum of 400 gram of fruits and vegetables in our daily consumption to prevent any chronic diseases like cancer, heart diseases, and obesity.
India is second to China in production of fruits and vegetables. We contribute about 18 to 20% of gross value of horticulture crops. We are the highest producer of mango, banana, and lime. Our export market has lot of scope for exporting fruits and vegetables like mango, grape, apple, onion, okra, bitter gourd and green chillies apart from processed food like pulp, juice, concentrates, dehydrated and processed vegetables, pickles, and beverages. Post harvest loss has to be minimised as the fruits and vegetables are perishable due to the metabolic activityinside them such as respiration, transpiration, and ripening changes transpiring and respiring. So we should go for value additions and nutritional improvement of food and financial security for people in rural areas who mainly depend on horticulture and employment generation by increasing export potential of fresh and processed fruits and vegetables. For this we need to improve Indian food supply chains.
With families becoming nuclear and everybody going for jobs, there is very limited time for cooking and do preliminary preparations for the cooking. So people are looking for supporting system of post harvesting process, as they have disposable income, change of lifestyle, demand for functional food, and increased spend on healthy food. When compared to other countries like Malaysia, Saudi Arabia, USA, and UK, our processing of fruits and vegetables is very low (2 %). There are lots of government initiatives from Ministry of Food Processing Industries such as National Food Processing Policy, complete delicensing excluding alcoholic beverages, and declaring food processing sector as priority sector for lending, and excise duty waiving. There is an Income tax holiday for fruits and vegetables processing, customs duty reduction on freezer van. FSSAI has created rules and regulations pertaining to food such as fruit products and to prevent food adulteration. We also need to control postharvest loss by controlling the respiration rate of fresh crops and ethylene action to manipulate the metabolism of harvested products and extending the shelf life. We have entrepreneurial scope here to process, value add products, manage postharvest with physiological aspects, treatments likebleaching, blanching, pre-cooling, waxing, vacuum or hot water treatment. We can go for cold storage or optimum storage before sending the produce to market or export.
Packaging can be done in different material, and this by itself can be separate field of enterprise. We can open food safety wing and work on all processing labs to do quality assurance. We have forward and backward linkage where fruits and vegetables are taken from growers to consumers, and feedback and monetary returns are from customers to producers. In each sector we have scope for entrepreneurial opportunities. This can be an enterprise focusing on harvesting (mechanical or manual), dry or wet dumping into washing yard, drying, brushing, wax application which is applied more in fruits like apple and capsicum especially in export. Wax treatment is given to prevent the transpiration loss from the fruit and act as a barrier for this purpose. It is safe only with minimum concentration to the crops and need to use food grade waxes. Grading of products is very important for both local and export markets. Maturity index in selection of fruits and vegetables is the most important decision strategy in marketing. We pick red ripe tomatoes usually when we harvest for processing into ketch up or pulp, or if we are sending to distant places, we harvest fruits in green stage and for local market we can use pink ones. Both ripe tomatoes and green ones are in demand. Gherkins will also fetch best value in export market. We can take up manual or mechanical harvesting based on the land area.
We have to removepreheat field heat from the fruits and vegetables by using precooling methods such as forced air cooling, room cooling, commercial hydrocooling, package icing cooler, and vacuum cooler which can be run as a unit operation. When a farmer wants to export he can avail existing facilities of an enterprise to precooling. People need to have knowledge about the sensitivity of fruits and vegetables physiology. Grading is also very important as the value of the product depends on that. For fruits like strawberry we can go for manual grading, for onions, potatoes, and gherkins mechanical grading, and also we have weight sensitive trays now with AI supported sensor which grade the products. People prefer nuclear family now, and so they want units based packets that prevent abrasion and injuries. So there is scope for entrepreneurship in all these areas.
We can also go for scientific method of ripening. Due to heavy demand even if the inflow of the products is good, we can induce ripening. We can treat the fruits with naturally available hormone ethylene and sprayers used. It has to be done scientifically. In Mysore, HOPCOMS, procure fruits in the green and matured state, induce ripening, and sell in the market. If the price is low, we can store them in cold storages and wait for the demand or transport to other places where these products are not grown. The cold storages can become business opportunities. All farmers cannot afford the cold storge for their own purposes but on a community basis or FPO basis, and if they want to take it up as a good enterprise, they can take it up and store them.
Although Fresh fruits are most preferred one, and if it is a seasonal fruit, we can go for processing into multiple products. Products like coconut flour, coconut lemonade, Nata de coco product which is most preferred one in Philippines, coconut chips, and snow ball tender coconuts, apart from traditional products like chutney, chutney powder are in great demand. Similarly ginger is a good remedy for cough and cold, so products like syrups, ginger powders, pickles, candy, cookies, are most preferred. Mango jam is the most popular product along with many beverages. Cut slices, dehydrated ones using osmotic dehydration are also made. Fruits can be soaked in sugar syrup while vegetables in brine solution of 2 to 3% concentration. Fruit wines are becoming popular because of the taste and healthy. We can prepare amchur powder from raw mango as condiment for cooking. The sour mangoes can be used to prepare these amchur. Papaya tutti fruity or Papaya candies are very popular. The raw papaya is harvested, boiled, blanched, added colours, and dehydrated. Papaya leaf powders are considered good for dengue treatment. We can extract papain from raw papaya fruits intact in tree, which are used in industries and tenderisation of meat. We can also make dehydrated apple rings, broccoli, and mangoes. Minimal processing is becoming popular now. It is a support system for all the working people and has found place in shelves of shops.
Our college has a 4 years professional course in horticulture with 8 semesters. For 6 months students work in the lab or field to get complete idea of what is a enterprise and how to do business. We have taken FSSAI registration, branded our products as Nutrifresh and selling. Products such as wines, jams, candies, squashes, papaya leaf powder, are sold in large quantities. We have banana powder baby food, fortified chikkis, and mixed pulses chutney powders. The students have to do sales promotion too by interacting with customers and see how difficult it is to convince them and sell. Our students have taken up turmeric processing too apart from cashew apples wines. Students take up their own enterprise by getting trained in all aspects.
What are the current trends in consumer preferences for processed horticulture products? which horticulture crops have the highest demand for value added products in the market?
The most preferred product is herbal powders such as moringa leaf powder, curry leaf powder which help them in maintaining good health. People prefer jam with jaggery instead of sugar, they come with their own tailor-made demands. Growing moringa trees in our orchards, processing leaves is a highly profitable business. People want something innovative on their table. We have naturally processed turmeric powder, but we are unable to meet the demand. Processed products from turmeric, ginger, mangoes and grapes have good demand.
Are there opportunities to collaborate with local farmers or establish our own supply network?
As per the mandate University of Horticultural Sciences, Bagalkot, we have already collaborated with many self-help group and individuals. If people want to learn about the products, they can come to our lab, have induction type of training, hands-on training, and learn steps on how to start a business on their own. We teach them how to apply for FSSAI registration if their investment is below Rs. 12 lakhs and license if it is above Rs. 12 lakhs. We also offer telephonic guidance. Farming community and recently graduated youth approach us for guidance in processing the products and in handling the challenges in marketing. Many people visit us and get trained and follow our technical suggestions. Our students popularise the products they prepare. With our knowledge in technology and marketing, we can guide them.
What innovative techniques can be applied to extend the shelf life of horticultural crops, and what measures can be taken to mitigate potential supply chain disruptions? What is the initial investment needed for setting up a processing facility and launch the products?
We can take up non-thermal process and ultrasound processing when thermal processing is not preferred. 3 D printing can be done on the pulp of fruits and vegetables. We have to work out the cost effectiveness and go for innovative technologies which will get us profit. We should know our market before venturing. Do market survey, our potential, and how to face the challenges of other competitive companies. We have to have control over sales. Our students could sell their products during Covid times too. Minimum investment can be Rs. 50 thousand to 1 lakh at home scale level. We can take the support from MOFPI when we go for expansion up to Rs. 30 lakhs. Banks also give better loans. With bank loans also we can start the industry. People can visit our lab and verify. We have simplified form of our processing. We can start initially on a smaller scale, and then we can expand our business.
What regulatory approvals and certifications are needed for processing and selling horticulture products?
FSSAI registration is a must. Without their 14 digit registration number we cannot sell the products. We have to pay minimum fee of Rs. 500 to get prior permission. Online also we can register. When processing is done in a commercial level, FSSAI approval is needed. When we go for wine processing, excise certificate has to be taken. Below Rs. 12 lakhs it is registration, and above that it is licensing. We have to mention what processing we are going to do and which area we come under. We are not supposed to sell anything in open market without FSSAI registration. The minimum registration fee is Rs. 500, and if we go for wine the fee is Rs. 1000. Wine Board of Karnataka is encouraging farmers to take fruit wine processing as an enterprise.
It is necessary to understand where India stands in horticulture processing and value addition. With the population growing manifold, and dietary needs having changed, it is essential to provide them with nutritious food for health care as per their demand. Also the area of land and water is declining, climate changing, unseasonal rains, and raise in temperature are the challenges we need to tackle now apart from new pests and diseases affecting production of crops. But we have to feed the population, overcome the challenges, and provide the livelihood to the rural community. There are many options like optimum utilisation of resources, knowledge based enterprises, and farmer centric science led development. United Nations declared 2021 as year of fruits and vegetables to draw public attention to the role of the same in food security and health. All of us know fruits and vegetables are good source of all the nutrients we need. FAO and WHO recommend minimum of 400 gram of fruits and vegetables in our daily consumption to prevent any chronic diseases like cancer, heart diseases, and obesity.
India is second to China in production of fruits and vegetables. We contribute about 18 to 20% of gross value of horticulture crops. We are the highest producer of mango, banana, and lime. Our export market has lot of scope for exporting fruits and vegetables like mango, grape, apple, onion, okra, bitter gourd and green chillies apart from processed food like pulp, juice, concentrates, dehydrated and processed vegetables, pickles, and beverages. Post harvest loss has to be minimised as the fruits and vegetables are perishable due to the metabolic activity
With families becoming nuclear and everybody going for jobs, there is very limited time for cooking and do preliminary preparations for the cooking. So people are looking for supporting system of post harvesting process, as they have disposable income, change of lifestyle, demand for functional food, and increased spend on healthy food. When compared to other countries like Malaysia, Saudi Arabia, USA, and UK, our processing of fruits and vegetables is very low (2 %). There are lots of government initiatives from Ministry of Food Processing Industries such as National Food Processing Policy, complete delicensing excluding alcoholic beverages, and declaring food processing sector as priority sector for lending, and excise duty waiving. There is an Income tax holiday for fruits and vegetables processing, customs duty reduction on freezer van. FSSAI has created rules and regulations pertaining to food such as fruit products and to prevent food adulteration. We also need to control postharvest loss by controlling the respiration rate of fresh crops and ethylene action to manipulate the metabolism of harvested products and extending the shelf life. We have entrepreneurial scope here to process, value add products, manage postharvest with physiological aspects, treatments like
Packaging can be done in different material, and this by itself can be separate field of enterprise. We can open food safety wing and work on all processing labs to do quality assurance. We have forward and backward linkage where fruits and vegetables are taken from growers to consumers, and feedback and monetary returns are from customers to producers. In each sector we have scope for entrepreneurial opportunities. This can be an enterprise focusing on harvesting (mechanical or manual), dry or wet dumping into washing yard, drying, brushing, wax application which is applied more in fruits like apple and capsicum especially in export. Wax treatment is given to prevent the transpiration loss from the fruit and act as a barrier for this purpose. It is safe only with minimum concentration to the crops and need to use food grade waxes. Grading of products is very important for both local and export markets. Maturity index in selection of fruits and vegetables is the most important decision strategy in marketing. We pick red ripe tomatoes usually when we harvest for processing into ketch up or pulp, or if we are sending to distant places, we harvest fruits in green stage and for local market we can use pink ones. Both ripe tomatoes and green ones are in demand. Gherkins will also fetch best value in export market. We can take up manual or mechanical harvesting based on the land area.
We have to remove
We can also go for scientific method of ripening. Due to heavy demand even if the inflow of the products is good, we can induce ripening. We can treat the fruits with naturally available hormone ethylene and sprayers used. It has to be done scientifically. In Mysore, HOPCOMS, procure fruits in the green and matured state, induce ripening, and sell in the market. If the price is low, we can store them in cold storages and wait for the demand or transport to other places where these products are not grown. The cold storages can become business opportunities. All farmers cannot afford the cold storge for their own purposes but on a community basis or FPO basis, and if they want to take it up as a good enterprise, they can take it up and store them.
Although Fresh fruits are most preferred one, and if it is a seasonal fruit, we can go for processing into multiple products. Products like coconut flour, coconut lemonade, Nata de coco product which is most preferred one in Philippines, coconut chips, and snow ball tender coconuts, apart from traditional products like chutney, chutney powder are in great demand. Similarly ginger is a good remedy for cough and cold, so products like syrups, ginger powders, pickles, candy, cookies, are most preferred. Mango jam is the most popular product along with many beverages. Cut slices, dehydrated ones using osmotic dehydration are also made. Fruits can be soaked in sugar syrup while vegetables in brine solution of 2 to 3% concentration. Fruit wines are becoming popular because of the taste and healthy. We can prepare amchur powder from raw mango as condiment for cooking. The sour mangoes can be used to prepare these amchur. Papaya tutti fruity or Papaya candies are very popular. The raw papaya is harvested, boiled, blanched, added colours, and dehydrated. Papaya leaf powders are considered good for dengue treatment. We can extract papain from raw papaya fruits intact in tree, which are used in industries and tenderisation of meat. We can also make dehydrated apple rings, broccoli, and mangoes. Minimal processing is becoming popular now. It is a support system for all the working people and has found place in shelves of shops.
Our college has a 4 years professional course in horticulture with 8 semesters. For 6 months students work in the lab or field to get complete idea of what is a enterprise and how to do business. We have taken FSSAI registration, branded our products as Nutrifresh and selling. Products such as wines, jams, candies, squashes, papaya leaf powder, are sold in large quantities. We have banana powder baby food, fortified chikkis, and mixed pulses chutney powders. The students have to do sales promotion too by interacting with customers and see how difficult it is to convince them and sell. Our students have taken up turmeric processing too apart from cashew apples wines. Students take up their own enterprise by getting trained in all aspects.
What are the current trends in consumer preferences for processed horticulture products? which horticulture crops have the highest demand for value added products in the market?
The most preferred product is herbal powders such as moringa leaf powder, curry leaf powder which help them in maintaining good health. People prefer jam with jaggery instead of sugar, they come with their own tailor-made demands. Growing moringa trees in our orchards, processing leaves is a highly profitable business. People want something innovative on their table. We have naturally processed turmeric powder, but we are unable to meet the demand. Processed products from turmeric, ginger, mangoes and grapes have good demand.
Are there opportunities to collaborate with local farmers or establish our own supply network?
As per the mandate University of Horticultural Sciences, Bagalkot, we have already collaborated with many self-help group and individuals. If people want to learn about the products, they can come to our lab, have induction type of training, hands-on training, and learn steps on how to start a business on their own. We teach them how to apply for FSSAI registration if their investment is below Rs. 12 lakhs and license if it is above Rs. 12 lakhs. We also offer telephonic guidance. Farming community and recently graduated youth approach us for guidance in processing the products and in handling the challenges in marketing. Many people visit us and get trained and follow our technical suggestions. Our students popularise the products they prepare. With our knowledge in technology and marketing, we can guide them.
What innovative techniques can be applied to extend the shelf life of horticultural crops, and what measures can be taken to mitigate potential supply chain disruptions? What is the initial investment needed for setting up a processing facility and launch the products?
We can take up non-thermal process and ultrasound processing when thermal processing is not preferred. 3 D printing can be done on the pulp of fruits and vegetables. We have to work out the cost effectiveness and go for innovative technologies which will get us profit. We should know our market before venturing. Do market survey, our potential, and how to face the challenges of other competitive companies. We have to have control over sales. Our students could sell their products during Covid times too. Minimum investment can be Rs. 50 thousand to 1 lakh at home scale level. We can take the support from MOFPI when we go for expansion up to Rs. 30 lakhs. Banks also give better loans. With bank loans also we can start the industry. People can visit our lab and verify. We have simplified form of our processing. We can start initially on a smaller scale, and then we can expand our business.
What regulatory approvals and certifications are needed for processing and selling horticulture products?
FSSAI registration is a must. Without their 14 digit registration number we cannot sell the products. We have to pay minimum fee of Rs. 500 to get prior permission. Online also we can register. When processing is done in a commercial level, FSSAI approval is needed. When we go for wine processing, excise certificate has to be taken. Below Rs. 12 lakhs it is registration, and above that it is licensing. We have to mention what processing we are going to do and which area we come under. We are not supposed to sell anything in open market without FSSAI registration. The minimum registration fee is Rs. 500, and if we go for wine the fee is Rs. 1000. Wine Board of Karnataka is encouraging farmers to take fruit wine processing as an enterprise.
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