ISSN.

0972 - 8406 37
The NEHU Journal, Vol XII, No. 1, January - June 2014, pp. 37-51

Food Processing Industry:

Opportunities in North East Region of India

MOHAMMAD RAIS, SHATROOPA ACHARYA AND GARY W. VANLOON*

Abstract
India’s north-eastern region (NER) is endowed with various sorts
of fruits, vegetables, and other agro-products, and has the potential
to be a sunrise zone for food processing and other agri-businesses.
The present paper deals with immense opportunities present in food
processing in the region. It is observed that simple value addition like
cleaning, sorting and packaging can increase income of farmers by
42.8% per kg. It is also observed that although Central Government
and various other state governments have come out with various
policies and schemes for the development of sector in the region, still
WKH VHFWRU LV KLJKO\ XQRUJDQL]HG DQG LQHI¿FLHQW ,W LV DOVR HVWDEOLVKHG
that the development of food processing sector in NER is hindered
due to lack of infrastructure facilities like poor connectivity with
national and international market, inadequate supply chain and poor
power supply.
Keywords: Food processing, agri-business, growth potential and
constraints, employment and income generation, government policy

Introduction

F
rom a nation dependent on food imports to feed its population,
,QGLD WRGD\ LV QRW RQO\ VHOIVXI¿FLHQW LQ JUDLQ SURGXFWLRQ EXW DOVR
has a substantial reserve. The progress made by agriculture in the
last four decades has been one of the biggest success stories of free India.
Agriculture contributes to about 14.1 percent to Gross Domestic Product
and provides livelihood to about 58 percent population. This increase in
agricultural production has been brought about by bringing additional area

* Mohammad Rais is a Senior Principal Scientist and Shatroopa Acharya is a Project Fellow,
CSIR-National Institute of Science, Technology & Development Studies (NISTADS), New
Delhi; and Gary W. Vanloon is a Professor of Chemistry, School of Environmental Studies,
Queen’s University, Canada.
38 FOOD PROCESSING INDUSTRY OPPORTUNITIES IN NORTH EAST

under cultivation, extension of irrigation facilities, the use of improved high

yielding variety of seeds, better techniques evolved through agricultural
research, water management, and plant protection through judicious use of
fertilizers, pesticides and cropping practices. India’s food grain production
has touched 252.56 MT in 2011-12 from a mere 51 MT in 1951-52
(Ministry of Agriculture, 2012a). In the present scenario, a continuing
problem in the country is storing the surplus produce and the percentage
of wastage is very high. Various studies have estimated that there are
post-production losses in food commodities to the tune of Rs. 75,000-
1,00,000 crore. Every year around 21 MT of wheat is wasted in India,
which is equivalent to Australia’s wheat production per year. To overcome
WKH SUREOHP RI ZDVWDJH WKHUH LV QHHG WR ¿QG RXW RWKHU VXVWDLQDEOH ZD\V
which will make proper use of the surplus produce, support the needs
of undernourished and also generate income and employment along the
process. The food processing industry provides a way out for this problem.
The Indian food processing industry is still in its nascent stage, but it is
poised for high growth in coming years. The total value of Indian food
processing industry is expected to touch US$ 194 billion by 2015 from
a value of US$ 121 billion in 2012, according to data released by Indian
Council of Agricultural Research (ICAR). The packaged food sector is
SUHVHQWO\ WKH ¿IWK ODUJHVW VHFWRU LQ ,QGLD DQG KDV JURZQ UDSLGO\ RYHU WKH
past few years (MOFPI, 2007). The industry registered a compound annual
growth rate (CAGR) of 15.6 per cent during FY07-FY12 (MOFPI, 2012).
In India, the industry is largely dominated by the ready-to-eat segment,
which contributed nearly 90 per cent of the total sales of packaged foods
in India FY12 (MOFPI, 2012).

The Indian food processing industry is primarily export oriented.

India’s agri and processed foods exports stood at Rs 116,331.68 crore (US$
18.65 billion) during April-March 2012-13, as compared to Rs 82,480.25
crore (US$ 13.22 billion) in the corresponding period last year, according
to data compiled by the Agricultural and Processed Food Products Export
Development Authority (APEDA) (Ministry of Commerce and Industry,
2013b). Investments in the Indian food processing sector grew at 20 per
FHQW SHU DQQXP LQ ¿YH \HDUV DQG WRWDO LQYHVWPHQW DW SUHVHQW LV HVWLPDWHG
at Rs 150,000 crore (US$ 24.04 billion), employing over 10 million.
Further, the Government of India expects US$ 21.9 billion of investments
in food processing infrastructure by 2015.
 MOHAMMAD RAIS, SHATROOPA ACHARYA AND GARY W. VANLOON 39

'HVSLWH DOO WKHVH ¿JXUHV LQGLFDWLQJ D KXJH JURZWK LQ WKH VHFWRU WKH
ground reality is that the processing activity is still at a premature stage
with low penetration. Even after India has become a key producer of
various food products, its productivity levels are very low and its share
in world food trade is 1.4% (National Manufacturing Competitiveness
Council, 2012). The factors responsible for the slow growth of sectors
range from lack of trained manpower, inadequate technologies, to
governance problems (FICCI, 2010).

Like other parts of India, the north-eastern part of India is also an

DJUDULDQ HFRQRP\ 7KH QRUWKHDVW UHJLRQ 1(5 LV D ODQG RI PDJQL¿FHQW
EHDXW\ SRVVHVVLQJ XQGXODWLQJ KLOOV DQG WKULOOLQJ ÀRUD DQG IDXQD 7KLV
picturesque scenario is contrasted by widespread poverty, low per capita
income, high unemployment and low agricultural productivity leading
to food-insecurity. With an extensive international border the region has
an extra advantage in international trade. Yet it has failed to convert its
strengths optimally into growth opportunities for the well-being of the
people. The region suffers from weaknesses such as subsistence agriculture
with poor roads, markets and other infrastructure. The high vulnerability
WRQDWXUDOFDODPLWLHVOLNHÀRRGVVXEPHUJHQFHODQGVOLGHVVRLOHURVLRQHWF
has resulted in low and uncertain agricultural productivity. The limited
utilization of modern inputs in agriculture has further reduced the ability
of the farm households to cope with high risks in production and income.

Agriculture is an important sector in the economy of the NER, with

its share in State Domestic Product ranging from 19 percent to 37 percent
in different states of the region, but the agro-based economy has failed
WR ÀRXULVK DV LW VKRXOG GXH WR OLPLWHG XWLOL]DWLRQ RI WHFKQRORJLFDO VXSSRUW
and innovation. The north-eastern states have observed high production
of fruits, spices and cashew in the recent past but could not fetch market
prices that are on par with markets in other states. The surplus produce
RIWHQ VSRLOV DQG LV ZDVWHG GXH WR ODFN RI WUDQVSRUWDWLRQ LQVXI¿FLHQW ZHOO
equipped cold storage facilities and processing of farm produce. In sum,
the food value chain is weak capital base, there is lack of market access,
ERWK GRPHVWLF DQG LQWHUQDWLRQDO OLPLWHG ÀRZ RI ODERXU DQG PDWHULDO
inadequate technological incentives, absence of agro-processing industries,
poor-post harvest technology facility. To some extent social and cultural
taboos are also responsible for not developing agro-industries that would
provide better value addition to the horticultural crops in the region.
40 FOOD PROCESSING INDUSTRY OPPORTUNITIES IN NORTH EAST

It is hence necessary to diagnose the problems in the NE region for

providing an improved production and marketing environment and value-
DGGHG HFRQRPLF EHQH¿WV WR WKH IDUPHUV WKURXJK DSSURSULDWH VFLHQFH DQG
technological policies for various post-harvest functions in food processing
industries. This is needed to address the problems of income generation
and poverty alleviation of the region.

The population of NER has quadrupled to about 45 million during

the past 50 years. The proportion of households living below the poverty
line is 35 percent (13.6 million) (Barah, 2006), a value that is exactly 10
percentage points higher than the national average. The lack of income
opportunities has perpetuated the worst form of poverty, the ‘hidden
poverty’ in the region. High growth of population (varying from 2.01% to
5.22% per annum, except in Assam and Tripura) with a large proportion of
small and marginal farm households, traditional and low-input agricultural
practices coupled with the problem of insurgency have affected the
economies adversely in the region. Our study is an attempt to highlight
the importance of the food processing industry in the NER as a means to
provide employment in the region. Due to its unique socio-economic and
demographic features the NER is different from other states of India, and
for its development, the government has come out with special policies.
We will also study these policies and identify gaps to address strategic
issues in NER.

Food Processing Industry in NER

The north-eastern region with its agro-friendly climate and agrarian

roots has the potential to be a sunrise zone for food processing and other
agri businesses. The weather and availability of water are conducive
for food cultivation and is especially suitable for growing horticultural
SURGXFH 7KH YDULRXV VXEVLGLHV DQG EHQH¿WV UHODWLQJ WR H[FLVH GXW\
transport, capital investment, interest on working capital and income tax
extended by the Government, already sets the stage for making food
processing a lucrative option in northeast.

In the present scenario, the food processing industry is mainly

operated on a small scale and in small numbers. In 2009, in north-east,
only 85 units received licenses under the FPO (Fruit Products Order) act
and out of these only 32 are functional units (MSME, 2009). The number
 MOHAMMAD RAIS, SHATROOPA ACHARYA AND GARY W. VANLOON 41

of food processing industry is highly erratic in different years for NER.

In 2001, the total number of applications for registered food processing
industries in NER was 21, and given the conditions in further years, the
QXPEHU VKRXOG KDYH LQFUHDVHG EXW LQ ¿UVW VL[ PRQWKV RI  WKH
QXPEHUZDV)LJXUH7KHQXPEHUFRPHDVDVKRFNLQJ¿JXUHDVDIWHU
the implementation of NEIPP in 2007, the number should have taken a
leap, but for both years after the implementation of NEIPP, the number
has been less than previous years.

Figure - 1
Year-wise Number of Food Processing Units Registered in North East
India

 



%(

%#

$(

$#

(

#

%##$
%##'#(
%##(#)
%##)#*
%##*#+
%##+#,

 



Source: Indiastat.com, Lok Sabha Starred Question No. 848, dated on

09.07.2009.





 



+'+


#,#*%##,

In tune with the rest of India, the food processing industry in the
NER is mainly unorganized and works on a smaller scale. Own-account
enterprises hold the highest share in the unorganized sector (Table 1). The
huge presence of the unorganized sector can be attributed to the fact that
most of the units in the unorganized sector are less capital intensive, and
the easy availability of raw materials makes it more attractive for small
entrepreneurs.
42 FOOD PROCESSING INDUSTRY OPPORTUNITIES IN NORTH EAST

TABLE 1
Number of unorganized manufacturing enterprises present in
Food processing industry in north-eastern states (2010-11)
States No. of Own Account No. of enterprises
Enterprises (OAE) (Establishment)
Arunachal Pradesh 186 197
Assam 22874 14310
Manipur 1093 516
Meghalaya 946 304
Mizoram 1224 96
Nagaland 804 262
Tripura 13782 4843
Sikkim 12 21
Source: NSSO 67th round, November 2012

The high presence of own account enterprises (OAE) does serve to

mitigate unemployment to a large extent, but this sector is also responsible
for the low level of income generation, and low level of productivity in
the region. Among all the sectors in food processing industry, the sector
which has an advantage in NER over the rest of India is the horticulture
industry. Diverse agro climatic conditions ranging from temperate to
tropical, fertile soils and abundance of rainfall offer immense scope for
development of this sector. The major horticulture crops of the region
are potato, onion, tapioca, sweet potato among vegetables and tuber
crops; ginger, turmeric and chilies among spices; banana, pineapple,
orange/other citrus fruits, mango, litchi, jackfruit among fruit crops
and coconut and areca nut among fruit-nuts. Other horticultural crops,
which are produced to a somewhat smaller extent, are cabbage, brinjal,
FDXOLÀRZHUDPRQJYHJHWDEOHVDQGDSSOHSHDUVSOXPVSHDFKDQGSDVVLRQ
fruit among fruit crops. The horticulture crops are found in surplus for
the local population.

The other factor which is hindering the growth of horticulture

industry in north-eastern states is the cultural and religious values of
people in the region. The rural community does not accept processing
of fruits in a very kind manner. They have their apprehensions about the
 MOHAMMAD RAIS, SHATROOPA ACHARYA AND GARY W. VANLOON 43

produce. For example, for them frozen is not fresh. They still throw their
weight against fresh products, and not processed one, as they have doubts
regarding the ingredients and procedure of value addition.

Figure -2
Number of Fruit and Vegetable Processing Units in
North-Eastern States (2007 and 2009)

(#





'#

&#

%#

$#

#
%##*

%##,



Source: Indiastat.com, Lok Sabha Unstarred Question No. 848, dated on

09.07.2009.







 



+'+


#,#*%##,
Even though the horticulture industry is not doing that well in the
NER, there are examples where value addition of horticultural crops has
clearly shown a contribution to income generation and poverty alleviation.
For example, ginger is grown in almost whole of the NER, and is one of
the most important cash crops of this region. When it undergoes primary
processing only, then the farmer’s income increases by 42.8% per kg
(Table 2).
44 FOOD PROCESSING INDUSTRY OPPORTUNITIES IN NORTH EAST

TABLE 2
INCREASE IN PRICES OF GINGER AFTER VALUE-ADDITION
Farm Local market Price after Increase in Selling
Produce Price (Rs./kg) for value addition income of Price of
fresh produce for fresh farmers (%) value-added
produce products (Rs./
kg)
Ginger 7 10 42.8 110
Source: CPHPR, 2008

The value addition for fresh produce is sorting, washing, cleaning,

drying and packaging and value added products can be ginger powder,
ginger oil, ginger candy, ginger extract and ginger garlic paste. Other than
ginger, other crops of NER also have a demand for themselves in the
market, and value addition to the crops will generate more employment,
increase income of self-employed people. Therefore, it is needed that state
governments recognize those crops and strive towards the development
of those produce. Of the fruit crops, banana, pineapple and orange are
the most important, covering about 60% of the area and accounting for
66% of the production. Other important crops include litchi in Tripura
and Assam, apple in Arunachal Pradesh, passion fruit in Nagaland,
Mizoram and Manipur, cashew nut in Assam and Tripura and coconut
in Assam, Tripura and Nagaland. In most cases, these states have missed
the opportunity of processing these crops even though there is surplus
production in each case (Table 3).

The presence of large amounts of surplus provides the NER with

two options - either to export this surplus in its raw state, or to process
the produce. The processing of produce still provides a much better
option and after processing the products can be exported, provides higher
gains to the producers and others along the value chain. The processing
VHFWRU QRW RQO\ EHQH¿WV WKH SHRSOH LQYROYHG LQ WKLV VHFWRU EXW DOVR SHRSOH
involved with service sectors like transportation, restaurants, packaging,
advertising and marketing. In all processing of surplus will create more
employment and income generation opportunities.

In the present scenario, all three sector of the NER are going
through an employment crisis. Similar to the rest of India, the NER
 TABLE 3

SURPLUS QUANTITIES OF MAJOR HORTICULTURE PRODUCE IN NORTH EASTERN STATES

Arunachal
Commodity Assam Manipur Meghalaya Mizoram Nagaland Sikkim Tripura Total
Pradesh
Citrus 18702 12000 1962 23000 5300 2000 1100 10500 74564
Banana 10168 85000 - - 1200 - - - 96368
Pineapple 24919 29000 24000 70000 - 5400 - 31000 184319
Papaya - 15000 5320 - - - - - 20320
Jackfruit - 25000 - - - - - 93000 118000
Ginger 25163 42000 7045 35048 16500 - 24300 960 151016
Turmeric - - - 6900 400 - 1300 1600 10200
Potato - - - 117500 - 1750 32612 - 151862
Chilies - - 22200 - 424 - - 11650 34274
Total 78952 208 000 60527 252448 23824 9150 59312 148710 840923
MOHAMMAD RAIS, SHATROOPA ACHARYA AND GARY W. VANLOON

Source: APEDA, 2004-05.

45
46 FOOD PROCESSING INDUSTRY OPPORTUNITIES IN NORTH EAST

primary sector is also struggling with disguised employment. The share

of primary sector has gone down in GDP of NER in the last two decades
but workforce involvement has not gone down in the similar pattern. The
secondary sector due to lack of investment has not been able to create
expected employment opportunities, and the tertiary sector is dominated
E\ SXEOLF VHFWRU RSSRUWXQLWLHV ZKLFK LV QRW VXI¿FLHQW IRU WKH ZRUNIRUFH
The severity of unemployment is worst in urban areas, and especially for
women. In this gruesome condition, the food processing industry can act
as a boon for the economy of NER. Therefore, the government needs to
come up with various policies which will provide a strong platform to the
industry to build upon, and promote private investment in NER.

Government Policies

Keeping in mind the growth prospects of the food processing industry

in the NER, the government instituting various policies to promote the
food processing industry:

1) Scheme for technology upgradation, establishment and

modernization of food processing industries: The scheme is
the signature initiative of the central Ministry of Food Processing
Industries. The food processing industry in India has traditionally
been a labour intensive and less technology driven sector, and
now the government is trying to modernize it. The scheme covers
setting up technology upgradation/Modernization/Establishment of
food processing industries in fruits and vegetables, milk products,
PHDW SRXOWU\ ¿VKHU\ RLO VHHGV DQG VXFK RWKHU DJULKRUWLFXOWXUDO
VHFWRUV LQFOXGLQJ IRRG ÀDYRXUV DQG FRORXUV ROHRUHVLQV VSLFHV
coconut, mushroom etc. Grain Market sector, namely rice milling,
ÀRXU PLOOLQJ SXOVH SURFHVVLQJ XQLWV DUH DOVR HOLJLEOH IRU DYDLOLQJ RI
grant under the scheme. The government of the NER is also trying
to implement this scheme, but the results have not been satisfactory
as implementation has been held up in red tapism, with very low
approval rates. Table 4 tabulates number of project proposals
received, approved, pending, closed and rejected in NER under
this scheme till 2006. Under the same scheme, there is subsidy for
setting up of food processing industries. Under the same scheme,
entrepreneurs from NER were also given grant.
 MOHAMMAD RAIS, SHATROOPA ACHARYA AND GARY W. VANLOON 47

TABLE 4
Number of project proposals received, approved, pending, closed and rejected
under Scheme for Technology upgradation, establishment, and modernization
of food processing industries in North-Eastern India (up to 2006)
States Received Approved Pending Closed Rejected
Arunachal
6 0 5 1 0
Pradesh
Assam 54 27 22 9 1
Manipur 13 3 5 4 0
Meghalaya 7 3 4 1 0
Mizoram 4 0 1 2 1
Nagaland 22 2 12 4 3
Sikkim 1 0 1 0 0
Tripura 2 3 0 1 0
Source: Indiastat.com, Rajya Sabha Unstarred Question No. 409, dated
27.11.2006.

FIGURE 3
STATE-WISE NUMBER OF PROJECT APPROVED UNDER FOOD PROCESSING SECTOR
IN NER FROM 2006-07 TO 2010-11

30
2006-07
2007-08
No. of Units

20 2008-09
2009-10
2010-11
10

0
Arunachal Pradesh
Assam Manipur MeghalayaMizoram Nagaland Tripura Sikkim
States

Source: Indiastat.com, Lok Sabha Unstarred Question No. 583, dated on

11.11.2010
48 FOOD PROCESSING INDUSTRY OPPORTUNITIES IN NORTH EAST

$FFRUGLQJ WR WKH ¿JXUHV JLYHQ WKH UHVSRQVH RI HQWUHSUHQHXUV LV
QRW YHU\ HQFRXUDJLQJ $VVDP KDV FRPH RXW DV ELJJHVW EHQH¿FLDU\ RI WKH
scheme, owing to its large size and population. However, most of the
small states almost have no share in the scheme.

2) Mega food park scheme: The scheme revised under 11th Five Year
Plan aims to provide adequate infrastructure for food processing
along the value chain from the farm to the market. The scheme
provides a grant of 50% of the capital cost excluding land cost,
subject to a ceiling of Rupees Fifty Crores; in case of NER the
grant is 75%. Under this scheme in NER, there will be a Central
Processing Centre at Nathkuchi, Tihu, Assam. The scheme will
cover 50 acres of land supported by a network of six Primary
Processing Centers (PPC) and 19 collection centers (CC) spread
across the entire NER. In order to develop the horticulture industry
in NER, an agro marketing hub has been set up near Guwahati,
which will be linked with a mega food park and a retail market
chain. A food processing park at Chaygaon, located at a distance of
40 km from Guwahati is also under implementation in the district of
Kamrup.

TABLE 5
MEGA FOOD PARK PROPOSALS FOR NORTH-EASTERN STATES (AS ON APRIL 2013)

States Proposals Received Remarks

Park not established.
Assam 3
( 1 Approved)
Mizoram 1 Park not established.
Parks not established.
Sikkim 2
(1 Approved)
Source: Indiastat.com, Lok Sabha Unstarred Question No. 1582, dated on
21.08.2012.

 ,W FDQ EH HDVLO\ VHHQ IURP WKHVH ¿JXUHV WKDW WKHUH LV D KXJH GHOD\
in deployment of this scheme in the NER (Table 5). Such delays in
implementation of the government scheme create doubt in hearts of people
associated with the sector, which is bad for the growth of any sector.
 MOHAMMAD RAIS, SHATROOPA ACHARYA AND GARY W. VANLOON 49

Policy Gaps and Recommendations

7KH IRRG SURFHVVLQJ LQGXVWU\ KDV PDGH VRPH VLJQL¿FDQW SURJUHVV LQ
the NER. Through arrival of MNC’s and locals realizing the potential,
the sector is all set to boom. Yet, the sector continues to face many
FKDOOHQJHV2ULJLQDWLQJZLWKLQDGLI¿FXOWJHRSK\VLFDOWHUUDLQYDULHGVRFLR
economic conditions, poor road connectivity and environment problems,
the sector is cluttered with complications. The geo-physical terrain of
the region with widely scattered diverse tribal communities is itself a
huge challenge in formation of a cohesive socio-economic policy for the
region. Hence, there is a need of special approaches to deal such issues.
The centralization of all policy making bodies has had a very bad effect
on the economic prospect of NER. In the process of coming out with
policy, the central government undermines the hidden truth that different
regions have different problems of their own, and a 5 per cent or 10 per
FHQW LQFUHDVH LQ WKH JUDQW ZLOO EH LQVXI¿FLHQW WR UHGXFH WKH GLI¿FXOWLHV
faced by people of that region.
The food processing industry has been recognized as a thrust area
by all state governments of NER; however there has been no proper
policy making body or department in any of the state which looks into
the prospect of this sector. All the states cover food processing policy in
their industrial policy segment, which leads to generalization of policies.
Therefore, in the way central government has a separate ministry for
food processing sector, the state government should also come up with
separate department or ministry for the food processing industry. There
are numerous players in this industry, from producers to entrepreneurs,
workers to sellers, and all of them need attention.

)URP WKH YLHZSRLQW RI SURGXFHUV WKH GLI¿FXOW WHUUDLQ RI UHJLRQ GRHV
not allow large scale farming, and the reliance on traditional methods
OHDGV WR ORZ SURGXFWLYLW\ 7KH JRYHUQPHQW QHHGV WR ¿QG DSSURSULDWH IDUP
management practices that will ensure high productivity while preserving
environmental services. Organic or low external input farming can be
a way out, and the large areas of fallow land can be used to increase
area under cultivation. The government also needs to promote business
development services in the region. There is huge presence of educated
unemployed youth in the north-east. To enable these youth to start their
RZQ YHQWXUHV WKH VWDWHV FDQ SURYLGH ¿QDQFLDO VXSSRUW DQG LQFXEDWLRQ
In this scheme, organizations like the FICCI, All India Food Processors
50 FOOD PROCESSING INDUSTRY OPPORTUNITIES IN NORTH EAST

Association, and CII can also play a major role. The ministry of food
processing industry in its scheme for human resource development
promotes skill development through various courses, training centers
DQG FHUWL¿FDWH SURJUDPPHV /LNHZLVH ,QGXVWULDO 7UDLQLQJ ,QVWLWXWHV LQ
the states can start diploma courses which entertain skills needed in this
VHFWRU )RU DQ\ SURJUDP WR EH ¿QDQFLDOO\ VXFFHVVIXO WKH IRRG SURFHVVLQJ
industry must emphasize issues of marketing. Therefore, the marketing
people should have proper knowledge about the product, the industry
and various other forces which guide the industry, and for this they need
to have training. Apart from these lacunas, the industry is crippled by
absence of adequate infrastructure facilities like road connectivity, power
VXSSO\ LQVXI¿FLHQW FROG VWRUDJH IDFLOLWLHV DQG WUDQVSRUWDWLRQ /DFN RI
these basic infrastructure facilities coupled with frequent insurgencies
have had a detrimental effect on the investment coming in the region.
Therefore, there is an urgency to improve the infrastructure facilities, a
necessity to establish collection centers to reduce the transaction costs
involved in sourcing from small scale farmers to small and medium food
processing enterprises. The increase in competition among enterprises for
the products will enhance farmer’s capacity to adopt improved production
and postharvest techniques to meet the required higher quality standards.
In the north-east states most of the small and medium enterprises are
unorganized, and technological obsolescence is high in. Therefore, to
improve conditions and upgrade technology for small industries as well as
for small farmers, the government of north-eastern states is joining hands
with private parties for infrastructure and technological development,
SURYLGLQJ KXJH WD[ LQFHQWLYHV DQG RWKHU EHQH¿WV XQGHU 1RUWK(DVW
Industrial and Investment Promotion Policy (NEIIPP, 2007).

References
1. Barah, B.C. (2006) Agriculture Development in North-East India Challenges
and Opportunities, NCAER, New Delhi
2. FICCI (2010) Survey on challenges in food processing sector, Mumbai
3. Government of India, Ministry of Agriculture (2012a), 3rd advance estimates
of Crop production for 2011-12; Press Information Bureau, New Delhi
4. Government of India, Ministry of Commerce and Industry (2007),
Department of Industrial Policy and Promotion, North East Industrial and
Investment Policy (NEIIPP), New Delhi
 MOHAMMAD RAIS, SHATROOPA ACHARYA AND GARY W. VANLOON 51

5. Government of India, Ministry of Commerce and Industry, APEDA (2013b),

Three Year export summary statements (2010-11 to 2012-13), New Delhi
6. Government of India, Ministry of Food Processing Industries, APEDA
(2005), Report on export potential of horticultural products from North-
Eastern states (2004-2005), New Delhi
7. Government of India, Ministry of Food Processing Industries (2006-07),
Annual Report on food processing industries in India, New Delhi
8. Government of India, Ministry of Food Processing Industries (2011-12),
Annual Report on Food processing industries in India, New Delhi
9. Government of India, Ministry of Small and Medium Industries (2009),
Annual report on Small and Medium Industries in India, New Delhi
10. Government of India, Ministry of Statistics and Programme Implementation
(2012), Key Results of Survey on Unincorporated Non-agricultural
Enterprises (excluding Construction) in India, 2010-11. New Delhi
11. Government of India, Ministry of Statistics and Programme Implementation
(2013a), Key Indicators of Employment and Unemployment in India, 2011-
12, New Delhi
12. Government of India, National Manufacturing Competitiveness Council
(2009), (QKDQFLQJ ¿UP OHYHO FRPSHWLWLYHQHVV ,QGLDQ IRRG DQG DJUR
processing industry: Strategies and road map development, New Delhi
13. Government of Mizoram (2009), Report on Centre for Post Harvest
Processing and Research (CPHPR), Mizoram
14. Agro-based Food Processing Industries, Indiastat.com, http://www.indiastat.
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