Respected Chair,other dignitaries on the dais, Ministers, official, media and dear Friends.
I am very honored and pleased to be attending this meeting of State Ministers. The Food processing Ministry has been very dynamic in recent times inspiring all of us to work harder and better. I wish and pray that this phase of dynamism results in tangible gains to the consumers, producers and farmers.
Food processing has to happen with the best technology in the grass root level. While larger concerns may be aggregating technology and bringing in high growth dividends, if must not be lost sight of that the sixty crore farmers at the bottom line of our economy forms our biggest concern.
We have had a set of indigenous food products which still remain dear, with a tinge of nostalgia to all of us. Some of these products have immense commercial potential too. Dairy products and fish pickles are examples. With a burgeoning expatriate population, the demand from Indian ethnic consumers located outside the country itself is a good demand to satisfy. If we could link a decentralized production process, Self Help Groups and women power at the bottom of the pyramid with suitable institutions which function as demand aggregators and forge links with foreign export targets, the market can be captured in India and abroad.
We need suitable investments in the backward states and districts in the sector linked to sites for agricultural and horticultural production. A good example is basing Mango based industries near the intensive Mango production belts in UP or down south. Kerala and Orissa may have huge potential for marine products. Meat products are already a huge export earner.
The agricultural research system needs to factor food processing as a large area needing more attention. Though many institutions are working in the sector, I believe better coordination is called for. States may be well advised to have food processing cells/desks in their Agricultural Ministries operationalized for focusing on the area. Whether our efforts will bear fruit lies what it holds for the farmer –producer. The large number of farmers accommodated in the primary sector with inadequate inputs is at the root of our problems in the farm sector. The micro food processing industry must now absorb many of them, if not a majority and take them out of farm distress in adverse weather etc by realizing market potential.
Employment in the rural sector also needs to be linked with the needs of the food processing enterprises which will both add value to nutrition and give valuable year round employment for the rural poor.
Developing such a micro view of the position of the food processing industries is as vital as promoting larger enterprises and commerce which only a few of us can participate fully now. I hope that the deliberations during the day and later develop on this and address larger issues which this sector is fully capable of tackling now.
I wish your later deliberations and efforts the very best.
Jai Hind.
Tuesday, October 6, 2009
69th AGM of the Roller Flour Millers Federation of India
Address of Hon’ble Minister of State for Consumer Affairs, Food & Public Distribution at the 69th AGM of the Roller Flour Millers Federation of India on current wheat Scenario on 06.10.2009. at Hotel Le Meridian, New Delhi.
I am very happy to preside over the 69th Annual General Meeting of Roller Flour Millers Federation of India.
The roller flour milling industry is a very important constituent of the food economy and plays a vital role in ensuring availability of wheat products in the country. I am glad to know that there are over 1100 members of the Roller Flour Millers Federation of India who are engaged in processing of wheat and production and marketing of atta, maida, suzi and bran.
Government is committed to ensure food security for the nation and a number of steps have been taken in the recent years to enhance production of foodgrains, especially wheat in the country. Efforts have been made by the Government to balance the interest of the farmers as well as the consumers of foodgrains. In order to provide remunerative prices to the farmers, handsome increases in Minimum Support Price of wheat have been announced by the Government. Further, a National Food Security Mission has been launched by the Government to increase production of wheat by 8 million tones. There has been a record production of 80.58 million tones during 2009-10. Further, record procurement of wheat of 226.9 lakh tones and 253.8 lakh tones has been achieved by Government during RMS 2008-09 and RMS 2009-10 respectively.
The world food economy passed through a difficult phase during 2007-08 and 2008-09 with the international food prices touching all time high. However, due to the policy initiative taken by the Government, we were able to relatively insulate food economy from the fluctuations of the international prices of foodgrains especially wheat.
Due to insufficient rainfall during the current monsoon season, drought like conditions are prevalent in large number of States due to which production of Kharif Crops is likely to be adversely affected. It is estimated that there may be a shortfall in the production of rice in Kharif Season 2009-10. The stocks of wheat and rice in the Central Pool with the Government are quite comfortable and additional allocations are being made to the drought affected States for meeting the situation arising out of the drought.
There is likelihood increased demand for wheat as an alternate grain resource because of reduction in availability of rice. In order to increase availability of wheat in the open market, the Government has formulated a Open Market Sale Scheme (OMSS) whereby allocations would be made to State Government for sale of wheat to bulk consumers while wheat would be sold to bulk consumers by FCI through tenders. It is proposed to release upto 30 lakh tones of wheat under OMSS during October 2009 – March 2010. In the past wheat under OMSS has been sold by FCI on first-come-first-served basis at a fixed State-wise price. However, it is felt that sale through tenders is a more transparent method of releasing wheat into the open market. Further, in order to check any speculation activities, only bonafide bulk consumers of wheat have been permitted to participate in the tenders under OMSS.
Government has removed restrictions like stock holding limits on wheat to facilitate purchase of wheat by private trade during the harvesting season. It is expected that the roller flour milling industry would source its raw material during the harvesting season. It is felt that the roller flour milling industry should not depend solely on open market sales by the Government for meeting its requirements of raw material. I would expect that roller flour milling industry would rise to the occasion and make all efforts towards ensuring availability of wheat products at affordable prices in the market.
Regarding relaxation in PPQ norms to facilitate import of wheat, it is felt that adequate stocks are available with the Government and, if required, additional quantities can be released under OMSS for meeting the requirements of the milling industry.
Government has allowed export upto 6.5 lakh tones of wheat products during 2009-10. However, keeping in view the likely reduced production of foodgrains in kharif 2009-10, there is a need to conserve stocks of foodgrains with the country. Therefore, it is not found feasible to permit export of wheat at this stage (apart from the export of wheat products) already allowed by the Government.
We have been requesting the State Governments to encourage distribution of atta through PDS. The initiative taken by fortification and distribution of atta under PDS in various States is a welcome step. I am sure that with wide dissemination of the benefits accruing from distribution of fortified atta, more and more State Governments would adopt the system.
The roller flour milling industry needs constantly upgradation so that the highest milling standards followed in the world are also available in India. A formal proposal regarding a scheme for upgradation and modernization of flour mills may be submitted by the Federation so that the issue can be taken up with Ministry of Food Processing Industry.
I thank you once again for having me here and wish you all the very best.
I am very happy to preside over the 69th Annual General Meeting of Roller Flour Millers Federation of India.
The roller flour milling industry is a very important constituent of the food economy and plays a vital role in ensuring availability of wheat products in the country. I am glad to know that there are over 1100 members of the Roller Flour Millers Federation of India who are engaged in processing of wheat and production and marketing of atta, maida, suzi and bran.
Government is committed to ensure food security for the nation and a number of steps have been taken in the recent years to enhance production of foodgrains, especially wheat in the country. Efforts have been made by the Government to balance the interest of the farmers as well as the consumers of foodgrains. In order to provide remunerative prices to the farmers, handsome increases in Minimum Support Price of wheat have been announced by the Government. Further, a National Food Security Mission has been launched by the Government to increase production of wheat by 8 million tones. There has been a record production of 80.58 million tones during 2009-10. Further, record procurement of wheat of 226.9 lakh tones and 253.8 lakh tones has been achieved by Government during RMS 2008-09 and RMS 2009-10 respectively.
The world food economy passed through a difficult phase during 2007-08 and 2008-09 with the international food prices touching all time high. However, due to the policy initiative taken by the Government, we were able to relatively insulate food economy from the fluctuations of the international prices of foodgrains especially wheat.
Due to insufficient rainfall during the current monsoon season, drought like conditions are prevalent in large number of States due to which production of Kharif Crops is likely to be adversely affected. It is estimated that there may be a shortfall in the production of rice in Kharif Season 2009-10. The stocks of wheat and rice in the Central Pool with the Government are quite comfortable and additional allocations are being made to the drought affected States for meeting the situation arising out of the drought.
There is likelihood increased demand for wheat as an alternate grain resource because of reduction in availability of rice. In order to increase availability of wheat in the open market, the Government has formulated a Open Market Sale Scheme (OMSS) whereby allocations would be made to State Government for sale of wheat to bulk consumers while wheat would be sold to bulk consumers by FCI through tenders. It is proposed to release upto 30 lakh tones of wheat under OMSS during October 2009 – March 2010. In the past wheat under OMSS has been sold by FCI on first-come-first-served basis at a fixed State-wise price. However, it is felt that sale through tenders is a more transparent method of releasing wheat into the open market. Further, in order to check any speculation activities, only bonafide bulk consumers of wheat have been permitted to participate in the tenders under OMSS.
Government has removed restrictions like stock holding limits on wheat to facilitate purchase of wheat by private trade during the harvesting season. It is expected that the roller flour milling industry would source its raw material during the harvesting season. It is felt that the roller flour milling industry should not depend solely on open market sales by the Government for meeting its requirements of raw material. I would expect that roller flour milling industry would rise to the occasion and make all efforts towards ensuring availability of wheat products at affordable prices in the market.
Regarding relaxation in PPQ norms to facilitate import of wheat, it is felt that adequate stocks are available with the Government and, if required, additional quantities can be released under OMSS for meeting the requirements of the milling industry.
Government has allowed export upto 6.5 lakh tones of wheat products during 2009-10. However, keeping in view the likely reduced production of foodgrains in kharif 2009-10, there is a need to conserve stocks of foodgrains with the country. Therefore, it is not found feasible to permit export of wheat at this stage (apart from the export of wheat products) already allowed by the Government.
We have been requesting the State Governments to encourage distribution of atta through PDS. The initiative taken by fortification and distribution of atta under PDS in various States is a welcome step. I am sure that with wide dissemination of the benefits accruing from distribution of fortified atta, more and more State Governments would adopt the system.
The roller flour milling industry needs constantly upgradation so that the highest milling standards followed in the world are also available in India. A formal proposal regarding a scheme for upgradation and modernization of flour mills may be submitted by the Federation so that the issue can be taken up with Ministry of Food Processing Industry.
I thank you once again for having me here and wish you all the very best.
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