eChapters

Introduction

India is the largest consumer and second largest producer of sugar in the world next to Brazil. Among the sugar yielding crops like sugarcane, sugar beet, palms and sorghum, sugarcane is the second most important agro-industrial crop of the country. It is the only raw material for nearly 538 sugar mills (2014-15), producing about 28 million mt of sugar annually from a sugarcane production of 366 million tons in an area of 5.307 mh. Apart from this, it is the predominant source of potable alcohol, industrial alcohol and fuel-ethanol. In India, 35 million farmers are engaged in sugarcane cultivation and another 50 million depend on employment generated by these 538 sugar factories and other related industries using sugar. Sugarcane occupies a very prominent position in the agricultural crops of India covering large areas in UP, Punjab, Haryana and Bihar (sub tropical) and Maharashtra, Karnataka, Gujarat and Tamil Nadu (tropical). On an average, white sugar production accounts for 74% of total cane produced, 14-15% is utilized for jaggery and khandsari production and the rest is utilized for other purposes including seed.

Jaggery and khandsari, the traditional Indian sweeteners are the natural mixture of sugar and molasses. If pure clarified sugarcane juice is boiled, what is left as solid is jaggery, which contains 65-85% sucrose. Khandsari sugar is a finely granulated and crystallized which contains 94 to 98% sucrose. In the early 1930’s, nearly 2/3rd of sugarcane production was utilized to manufacture these two alternate sweeteners. With the introduction of sugar mills and their multiple growth and better standard of living and higher per capita income, the demand for sweetener has shifted to white sugar which contains purely sucrose (99.7%).

Introduction

Groundnut (Arachis hypogaea L.) commonly called as Poor man’s cashew, is the 6^th most important oil seed crop in the world. It contains 48-50% oil, 26-28% protein and 11-27% carbohydrates. Groundnut is grown on 26.4 million hectare worldwide, with a total production of 37.1 million metric tons and an average productivity of 1.4 metric tons/ha. Developing countries constitute 97% of the global area and 94% of the global production of this crop (FAO, 2011). The production of groundnut is concentrated in Asia and Africa, where the crop is grown mostly by smallholder farmers under rain-fed conditions with limited inputs. Groundnuts (peanuts) are popularly used as seed oil in India. Since, they are obtained from the ground, they are called as groundnuts and also known as ‘Mungfali’ in Hindi, ‘Palleelu or Veru sanaga’ in Telugu, ‘Kadalai’ in Tamil, ‘Nilakkadala’ in Malayalam, ‘Kadale kaayi’ in Kannada, ‘Singdana’ in Gujarati and ‘Shengdaane’ in Marathi. Groundnuts are easily available round the year and almost everywhere in India. Groundnuts are also taken as snacks in many households especially in India. In reality, groundnuts are actually legumes. Since, they have all the properties of nuts like almonds, cashew nuts, etc., these are also included in the family of nuts.

Groundnut is the major oil seed of India. It accounts for 25% of total oil produced in India. Annual production of groundnut is around 9690 thousand tones. As the crop is grown in rainfed conditions, production and productivity are highly vulnerable to rainfall and exhibit huge fluctuation between the years. In India, groundnuts are produced both during Kharif (75%) and Rabi seasons (25%). Major production catchments of groundnut are located in Gujarat holding a share of 50.77% of total groundnut production, Andhra Pradesh holding a second place (12.69%) followed by Tamil Nadu (9.91%). Following are the top groundnut producing states of India (Table 1).

Introduction

Soybean (Glycine max) is also known as the wonder bean or miracle bean or “golden grain” due to its diversified applicability. Soybean has an important place in world’s oilseed cultivation scenario, due to its high productivity, profitability and vital contribution towards maintaining soil fertility. The crop also has a prominent place as the world’s most important seed legume, which contributes 25% to the global vegetable oil production, about two thirds of the world’s protein concentrate for livestock feeding and is a valuable ingredient in formulated feeds for poultry and fish. The major soybean producing nations are United States, Brazil and Argentina. These three countries dominate in global production, accounting for 80% of the world’s soybean supply. Global production of soybean has grown at a CAGR of 2.78% from 215.69 million metric tons in 2004-05 to 283.79 million metric tons in 2013-14.

India stands 5^th in global production of soybean. In India, soybean cultivation started in early 1970s, but it has emerged as number one among oilseed crops covering around 11 m ha area with total production of around 11.5 m tons. At present, the average productivity of soybean is about 1.3 tons/ha and it can be easily doubled in near future. Production of soybean in India is dominated by Maharashtra and Madhya Pradesh which contribute 89% of the total production. Rajasthan, Andhra Pradesh, Karnataka, Chhattisgarh and Gujarat contribute the remaining 11% production.

About 85% of world’s soybeans are processed annually into soybean meal and oil. Approximately 98% of soybean meal is crushed and further processed into animal feed with the balance used to make soy flour and proteins. Of the oil fraction, 95% is consumed as edible oil; the rest is used for industrial products such as fatty acids, soaps and biodiesel.

Introduction

Pulses are major and cheap sources of protein in Indian vegetarian diet, providing most of the essential amino acids. Pulses are mainly consumed in the form of dehusked split pulses (Dal); and have 15-24% proteins. Various types of pulses grown are pigeon pea, chickpea, black gram, green gram, lentil, etc. Pulses are consumed because of body building properties due to the presence of various amino acids. By-products of pulses like leaves, pod coats and bran are fed to animals in the form of dry fodder. Some pulse crops like gram, lobia, urd bean & moong bean are fed to animals as green fodder.

Introduction

21^st century challenges like climate change, water scarcity, increasing world population, rising food prices, and other socio-economic impacts are expected to generate a great threat to agriculture and food security worldwide, especially for the poorest people who live in arid and sub-arid regions. Millet is one of the oldest foods known to humans and possibly the first cereal grain to be used for domestic purposes. Millet has been used in Africa and India as a staple food for thousands of years. Typical grain texture and hard seed coat of millets increase their keeping quality but make them difficult to process as well as to cook in convenient form. Absence of appropriate primary processing technologies to prepare ready-to-use or ready-to-cook (RTC) products and also the secondary as well as tertiary processing technologies to prepare ready-to-eat value added products from millets are the major limiting factors for their diversified food uses.

Millets have relatively poor digestibility and low bio-availability of minerals due to the presence of inherent anti-nutritional factors. The difficulties in millet grain processing present a challenge but nutritional as well as health benefits and consumer demand for health foods provide opportunities in processing, develop suitable technology for newer products and process mechanization. This change in technology and consumer food preference would help in increasing the area under millets, maintaining ecological balance, ensuring food security, prevent malnutrition and increase the scope for utilization of millet grains on industrial scale.

Introduction

Rice is the major staple food for more than 70 percent of the Indian population. India cultivates more than 4,000 varieties and hybrids of rice to cater to varied consumer preferences. A portion of the total cultivated rice is also used for processed products like snacks, savouries and bakery items. India was the largest exporter of rice in 2015-16 followed by Thailand, Vietnam and Pakistan. Rice production forecast is higher at 105 MMT in 2016/17 compared to 2015/16 production of 103 MMT (India Grain and Feed Annual, 2016). Rice milling is the oldest and the leading agro processing industry of the country. Paddy grain is milled either in raw condition or after parboiling, mostly by single hullers of which over 82,000 are registered in the country. Further, over the years, there has been a steady growth of improved rice mills in the country. Most of these have capacities ranging from 2 tons /hr to 10 tons/ hour. At present, it has a turnover of more than 25,500 crore per annum. It processes about 85 million tons of paddy per year and provides staple food grain and other valuable products required by over 60% of the population. Though, rice milling is a wide spread business undertaken in India, commercializing value added products is now gaining customer attraction paving way to merge milling and value addition under a single roof. The desirability of the working population to get foods, particularly rice based products in RTE and RTC forms has thrown a positive approach to new and emerging entrepreneurs to take up a venture in commencing rice based food processing industry.

Introduction

Rice (Oryza sativa L.) is a staple food of over half the world’s people and is grown on approximately 146 million hectares, more than 10 per cent of total available land. Ninety seven per cent of the world’s rice is grown by less developed countries, mostly in Asia. Post harvest losses are considered to be contributed by storage alone, and not much attention was paid to losses occurring during harvesting, transport, threshing, drying, milling and pre-milling treatments. Quantitative loss of food grains was the main concern of the producers and the consumers. Qualitative losses at various stages were not fully recognized, but systematic studies by different organizations revealed that these losses are enormous and should be prevented. These losses cumulatively could be as high as 40 per cent and are normally accompanied by loss of quality also. Quality loss of products can take place at all stages but more particularly during drying or curing of harvested crops, storage, and milling and pre-milling treatments. Post-harvest attention is essential if the grains of higher production are to be fully exploited. Also the quality loss occurring in food grains can be extremely serious if the farming community is not aware of them.

Introduction

The food processing industry is a sunrise sector and contributes around 14% of Gross Domestic Product, 13% of India’s exports and 6% of total industrial investment. The Indian food retail market is expected to reach Rs 61 lakh crore by 2020 and the food processing industry accounts for 32% of the country’s total food market. This is considered as one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth.

The drift towards urbanisation and busier way of life, pave path to tremendous bounce in the food market. Nowadays consumer’s approach to being fit is not about going to gym, but also consulting dietitians and adopting an adjusted eating routine. Consumer’s behaviour concerning food consumption has undergone significant changes as a result of the increased awareness about different value added food products, brands, and cuisines, and also their greater willingness to experiment and ability to pay. It leads to the concept of food security in to nutritional security. Companies are offering a wider range of products to the consumers as a result of their investments into product innovation, research and development. At present, various value added products with versatile colour, shape, ingredients etc are available in worldwide market. Among this, some food items like processed fruits and vegetables and dairy products have witnessed a momentous growth in export also. Recent surveys indicated that for companies manufacturing processed foods and beverages, rise in the obesity rate is a great challenge. Hence, efforts were made to develop commercially viable, new process protocols to design healthy products from underutilised food commodities.

Introduction

Compared to the previous decades, the scope and power of intellectual property rights (IPRs) in agriculture and biotechnology has grown substantially and their international reach has expanded. The IP regime has set up the stage for healthy competition among research centres and industries for developing and seeking novel technologies. However, compared to developed countries, once the technology is created, not much attention is paid in the developing nations on their commercial, policy, environmental, ethical and societal implications. Hence, better techniques are needed for their management, to create policy and educate professionals to commercialize and govern them. Due to the critical role of technology in a competitive environment, strategic technology management is important for farmers and agri-enterprises too. The translation of nascent technologies into new products/ services and their commercialization requires some amount of hand-holding, mentoring and incubation support.

Introduction

It is common that after a rocket start, entrepreneur’s lack the motivation to scale up business and eventually fails to succeed in the market. There are many factors that may lead to such failures or even success stories, the most important being the entrepreneurial skills and traits that enable business to sustain in the competitive world.

What makes an entrepreneur competent in running a business? According to Fisher and Koch (2008), ‘Entrepreneurs are born; the advantage that they derive by birth being the natural advantage. However, we have changed our mindset now-a-days, that it is possible to nurture (make) an entrepreneur; the connotation points out that, right kind of education and training can inspire people with capacities to become motivated to be an entrepreneur.

In this chapter, our focus will be on identifying the entrepreneurial capacities in oneself, after reviewing the essential characteristics and traits that an entrepreneur should possess. Also we try to put forward a framework for entrepreneurship, fitting into the canvas of a food based entrepreneur.

Introduction

World’s population is continuously on the rise, triggering the demand for food. The Food and Agriculture Organization of the United Nations (FAO, 2011) observed that 70% increase in food production will be needed to sustain the globe’s population by 2050. Though, increase in agricultural production and productivity is said to be the panacea to solve food security issues, the greatest challenge that need to be addressed is the inefficiencies in the supply chain; instigated by insufficient storage capacities and perishability of food products. Food preservation and processing is highlighted in this context, as it serves to conserve/improve the quality and reduce food loss due to wastage as well as add nutritional security.

Introduction

Jackfruit (Artocarpus heterophyllus) is the largest edible fruit in the world. It is a seasonal fruit found in almost all the humid tropical regions of the world. It is very popular all over India and is believed to be of Indian origin. Flesh of jackfruit is starchy and fibrous and is a source of dietary fiber. Varieties are distinguished according to characteristics of the fruit’s flesh. In Kerala, two varieties of jackfruit predominate: varikka and koozha. Varikka has a slightly hard inner flesh when ripe, while the inner flesh of ripe koozha fruit is very soft and almost dissolving. Strong aroma of the fruit accounts popularity of its processed products. Each year, approximately 30-50% of the total harvested fruit is spoiled because of lack of post-harvest processing in India

Jackfruit has more protein, calcium, thiamine, riboflavin and carotene than banana. Edible bulbs of ripe jackfruit are consumed for their fine taste and pleasant aroma. The fibre content helps to protect the colon mucous membrane by decreasing exposure time as well as binding to cancer-causing chemicals in the colon. Fresh fruit has small amounts of carotenoid and flavonoid pigments such as ß carotene, xanthin, lutein and cryptoxanthin-ß. Together, these compounds play vital roles in antioxidant and vision functions.

Introduction

Traditionally, Indian economy was characterised as an agrarian economy for the reasons that majority of the population were dependant on agriculture and allied activities and more than fifty per cent of the Gross Domestic Product (GDP) was derived from agricultural sector. However, paradoxically, despite a drastic decline in the share of agricultural sector to GDP wherein it declined from 56.5 per cent in 1950-51 to 15.11 per cent in 2016-17 (Statisticstimes.com) Indian economy is still characterised as an agrarian economy. But, it would not be inappropriate to state that Indian agricultural sector is at crossroads, or it would be rather safe to comment that for any further advancement of the agricultural sector, value addition is imperative. During the post independence period, the sector had witnessed commendable progress attributing to a shift from an undesirable situation of ‘ship to mouth’ to ‘farm to mouth’. It is obvious that as a result of various programmes, projects and schemes tailored for development of agricultural sector, India had attained self sufficiency in food crops and other agricultural/horticultural products. However, the darker side is that the Indian peasants are still deprived of a remunerative price for their products as well as a respected status in the society which in turn is arresting further advancement and progress of the sector. Thus, it could be concluded that future of agricultural sector in India vests on the adoption of appropriate marketing strategies, supply chain management and value addition initiatives for the prosperity of our farming community in specific and agricultural sector in general. It is in this backdrop, the NITI Aayog has proposed various reforms in India’s agriculture sector, including liberal contract farming, direct purchase from farmers by private players, direct sale by farmers to consumers, and single trader license, among other measures, in order to double rural income in the next five years. Ministry of Agriculture, Government of India, has been conducting various consultations and seeking suggestions from numerous stakeholders in agriculture sector, in order to devise a strategy to double the income of farmers by 2022.

Introduction

Food safety and quality is the most important issue in the global food supply chain. Quality and safety of fresh as well as processed foods have an important role in the export of these commodities. Increasingly stringent food safety and agricultural health standards in industrialized countries pose major challenges for developing countries to establish in the international markets for high-value food products, such as fruits, vegetables, fish, meat, nuts and spices. Yet, in many cases, such standards have played a positive role, providing the catalyst and incentives for the modernization of export supply and regulatory systems and the adoption of safer and more sustainable production and processing practices. This has created an increased need for updated research and development to demonstrate and provide adequate evidences for their ability to identify and control food safety hazards, and deal specifically with food quality and safety.

Food quality is an increasingly important factor in the production and marketing of biological products. Consumers are becoming more discerning as their affluence increases, and hence the food industry/suppliers of products must meet these demands if they are to maintain or increase market share. The term ‘quality’ is one of the most defined terms used in food industry today. Quality may be defined as ‘the totality of features and characteristics of a product that bear on its ability to satisfy a given need’. The first part, ‘the totality of features and characteristics of a product…..’ concerns objective factors related to the product. The second part, ‘…… to satisfy a given need’, concerns subjective factors related to user or consumer of goods.

Introduction

Mushrooms are fleshy spore-bearing fruiting bodies of fungi, produced above ground on soil or on their food sources. Total number of useful fungi having edible and medicinal values is over 2,300 species. Like green plants, they do not contain chlorophyll and as a result cannot manufacture their own food. In this respect, they are like animals because; they feed themselves by digesting other organic matter. They are a large heterogeneous group having various shapes, size, appearance and edibility.

The use of mushrooms as food is very old. People harvested mushrooms from the wild for thousands of years for food and medicine. The Egyptians regarded mushrooms as food for pharaohs. The Greeks and Romans described them as food for God and served only on festive occasions. The first professional growers of mushrooms were the Chinese. China is the major producer and consumer of both edible and medicinal mushrooms. As early as 1313, a document was published which described the cultivation method for Shiitake on wood logs. Even older is the cultivation of the wood ear mushroom (Auricularia spp) of which sources indicates that it was cultivated from the year 600 A.D. onwards. The white button mushroom, Agaricus bisporus, was domesticated in France.

Introduction

India is one of the major producers and exporters of honey. Diversity of bee flora and varied agro-climatic conditions in the country offers enormous potential for the development and growth of apiculture. Honey is a supersaturated sugary material produced mainly by honey bees from the sweet substances of plants (floral or extra-floral nectaries) or insect. Honey bee forager (field bee/worker honey bee) collects the nectar and converts the same into honey by a process of regurgitation and evaporation and stores in the honey comb. The sweetness of the honey is largely by monosaccharide viz., fructose and glucose. Honey is either monofloral or polyfloral as it is collected by the bees. The physical properties of the harvested honey depend upon the source from it is derived, water content, temperature, proportion of the simple sugars present and the method of processing. At low temperature (below 17°C), honey gets crystallized. Honey is also hygroscopic, capable of absorbing water from the atmosphere. India produces approx. 65,000 mt of honey per year (Kejariwal, 2015).

Introduction

In an era of liberalization of world trade where there is a continuous inflow and outflow of goods into and from a country, the need for developing competitiveness to sustain in global markets is extremely important. Technological progress and scientific advancements go hand in hand for the economic growth of a country and the Global Competitiveness index (GCI) which was revised in 2006 includes several factors such as institutions, infrastructure, health, primary and higher education, business sophistication, innovation, training etc. of nations to categorize them on the basis of competitiveness (Baig, 2006). Successful entrepreneurship development is a primary driver for the sustainable economic progress of any nation. The term ‘entrepreneurship’ has been defined by Cole (1968) as ‘“Entrepreneurship is the purposeful activities of an individual or a group of associated individuals undertaken to initiate, maintain or organize a profit oriented business unit for the production or distribution of economic goods and services”. An entrepreneur is an enthusiastic individual committed to bring change in the society through the successful implementation of innovative ideas. However, bringing together a package of resources by an entrepreneur for effective transformation into a profitable venture may require inputs from several institutions such as research and development sectors, financing organizations, and training and education providers. The role of R & D institutions in providing innovative technologies having commercial value and the requisite capacity building for prospective entrepreneurs is of prime significance. In this context, ICAR-Central Tuber Crops Research Institute under the aegis of the Indian Council of Agricultural Research, New Delhi is a premier research organization dedicated to the research and development of tropical tuber crops and has developed a plethora of technologies for the processing and value addition of tuber crops.

Introduction

Coconut is a versatile crop with several uses to mankind. Apart from the main product, the by-products obtained from the coconut crop have many alternative uses, thus, adding to the total value of the crop (Popenoe, 1969). A tremendous scope exists for use of coconut in a variety of non-food products. The development of cottage industries to produce such products is recommended to increase income of coconut growers. For historical reasons, cultivation of coconut and value addition of non-food products from coconut have taken deep roots in the state of Kerala. The rapid expansion of coconut cultivation in non-traditional areas increased the production of coconut and the industry has also developed gradually in the states of Tamil Nadu, Karnataka, Andhra Pradesh and Orissa. Among the non-food products of coconut, charcoal, activated carbon, and shell powder and coir or coconut fibre assume commercial importance. Other parts of the palm especially coconut wood and leaves are recently gaining attention.

Introduction

Coconut palm (Cocos nucifera L.), a perennial horticultural crop, is a symbol of national and international integration involving more than 93 producing countries and more than 140 consuming countries. It is eulogised as ‘Kalpavriksha’- the ‘tree of heaven’ as each and every part of the palm is useful to mankind in one way or other. There are countless uses of this coconut palm. It is bestowed with multiple benefits like health, wealth and shelter to mankind. It is also denoted as “heavenly tree”, “tree of abundance” and “nature’s supermarket”. India is the largest producer of coconut followed by Indonesia and Philippines. In India, Tamil Nadu ranks first in production followed by Karnataka, Kerala and Andhra Pradesh. These states account for more than 90 per cent of the area and production of coconut in India. However, it is also cultivated with varying success in other states like Assam, Goa, Gujarat, Maharashtra, Nagaland, Orissa, Tripura, West Bengal, Andaman and Nicobar Islands, Lakshadweep and Puducherry.

Introduction

Spices are high value export oriented crops extensively used for flavouring food and beverages, medicines, cosmetics, perfumery etc. Spices constitute a significant and indispensable segment of culinary art and essentially add flavour, colour and taste to food preparations. Farm level processing operations are important for value addition and product diversification of spices. It is essential that various operations like washing, threshing, blanching, drying, cleaning, grading, storing and packaging ensure proper conservation of the basic qualities like aroma, flavour, pungency, colour etc. Each of these operations enhances the quality of the produce and the value of the spice.

India is the largest producer, consumer and exporter of spices in the world. India produces more than 65 spices in different varieties out of the 109 spices listed by International Standards Organisation (ISO). India produces around 5.8 million tons of spices annually (2012-13), of this about 10% of the total produce is exported to over 150 countries. The USA, Europe, Australia, Japan, the Middle East and Oceanic countries are the major importers of Indian spices. Estimated world trade in spices is 1.05 million tons valued at 2750 million US $, out of which India has a significant share of 48% in quantity and 43% in value.