madhusudhana C.G

8/4/2019 madhusudhana C.G

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Madhusudhan C.G

MK.820

3rd BSc (AgMaco)



Factors to be consider to start small

scale processing industries in INDIA

1. Product-mix2. Availability of row material3. Manpower4. Capital5. Lack of awareness

6. Marketing facilities7. Transport facilities8. Availability of containers9. Publicity

10. Role of Government



1. Product-mix :-

The product profile of the fruit and vegetableprocessing industry has remained static and isdependent only on a few fruits vegetables like mango,pineapple, citrus, tomato and pea.

The product of new products besides being necessaryfor the survival and growth of the processing industry,would also meet new taste and demand in home aswell as export market.

The choice of products to be manufactured will dependon the readily availability of raw materials in the areaswhere the processing unit is proposed to be set up theconsumer preference in the neighbouring markets.



2. Availability of raw material :-

As stated earlier a wide variety of fruitsand vegetables are cultivated in India andare available in abundance in the season.

some of these fruits like mango, guava,

sapota, banana, Cashew nut, Jamun,pineapple, aonla and jackfruit do not growin many countries and their products arelikely to find a ready market in foreigncountries.

A country between growers and theprocessing units would ensure thecontinued availability of good quality row

materials, at predetermined rates, to theindustry.



3. Manpower :-

India is in an advantageous position, ascompared to developed countries, in having alarge reservoir of manpower, but skilled

manpower in some trades is in short supply andproductivity in general is low.

Proper training, in-factory or institutional, goodworking conditions and reasonable wages would

go a long way to increase productivity.



4. Capital :-

As in the case of any other industry,this is an important consideration forthe food processing industry also.

In recent years, with Governmentsupport, a number of big industrieshave diversified into the area of fruit

and vegetable processing.There is, however, scope for small-

scale units which require less

capitals.



5. Lack of awareness :-

Most commercial fruits and vegetablesgrowers are not aware of the market forpreserved products and do not have the

necessary technical knowledge toundertake processing themselves.

The central government have started a

number of projects to impart differentlevels of training in canning andpreservation, details of which are given

later.



6. Marketing facilities :-

Although there in is a demand forpreserved products, which is likely to growin future, these are not readily available in

small towns due to reluctance ofshopkeepers in stocking such items.

The establishment of growers’

cooperatives would help in the marketingof such products and it is the policy of thegovernment to encourage the

establishment of such cooperatives.



7. Transport facilities :-

Earlier, the rapid transportation of fruits andvegetables in good condition from one part ofthe country to another for processing was aserious problem because of paucity of roads,their bad condition and shortage of trucks andrail wagons.

there is now considerable important in bothroad and rail transport and the day is not far offwhen even remote rural fruit vegetableproducing areas will be connected to processingfactories in distant parts of the country.



8. Availability of containers :-

Bottle and cans are the two major types ofcontainers required by the food processingindustry.

Earlier these had to be entirely imported, but

now the manufacture of bottles of the requiredspecifications has been taken up by a number offactories.

At present there is a great difficulty in the

availability of cans since there are very fewfactories for their manufacture.

Metal box company of India is the premiermanufacturer, with factories in different parts of

the country.



9. Publicity :-

Proper publicity is the only way to attractthe consumer and give him informationabout the new products in the market.

Publicity of preserved food can create agood market even in backward areas as amajority of the population does not haveknowledge of these product.

these products can also be popularizedby displaying in exhibitions and fairs, bypractical demonstrations and distributing

samples to the public.



10. Role of government :-

Both the central and the state governmentare giving encouragement to the fruit andvegetable preservation industry.

In Uttar Pradesh, a directorate ofhorticulture and food processing has beenestablished to promote the industry.

madhusudhana C.G

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