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Case Report

Case Report

International Journal of Research Padagogy and Technology in Education and Movement Sciences

2023 Volume 12 Number 03 JUL-SEP
Publisherwww.theuniversityacademics.com

EMPOWERING SOCIETY THROUGH PROMOTIONAL EFFORTS FOR EXPORT ORIENTED FOOD PROCESSING UNITS (A CASE STUDY OF EXPORT CONCLAVE AT RADDISON BLUE HOTEL, NARWAL, JAMMU)

Chopra A.1, Chopra D.2*
DOI: https://doi.org/10.55968/ijems.v12i03.373

1 Aditi Chopra, Research Scholar, The Business School, University of Jammu, Jammu, J&K, India.

2* Dr. Neetu Chopra, Grading and Marketing Inspectot, Horticulture(P&M), , Jammu, J&K, India.

Food Processing Industry is globally known Sector. This sector, in Jammu and Kashmir is also known for its Horticultural background. There are various fruits like Apples, Walnuts, Pear, plums etc. These fruits can be processed into various products like, Jams, Jellies, Murrabas, chutnies, candies etc. The speech was given at Raddisson Blue Hotel by Sh. Atal Dulloo, the Hon’ble Commissioner of Horticulture, J&K about the new Holistic Agricultural Development Programme and New Export Policy 2023 in which the Government has initiated various schemes for the development of processed products companies in J&K also. The study tries to find out the level of exports from J&K to other cities, countries by the medium of interaction with the exporters and the small unit holders, SHGs from different villages of Jammu, FPOs from Jammu and outside participated in this conclave. The total number of exporters/ Unit holders present there are 44. Out of which 22 respondents are taken purposively for this study. The collected data is analysed with the help of %ages,regression equations and other statistical techniques. The study shows positive impact of promotional efforts by the Government in empowering society by establishment of more and more micro small-scale enterprises, SHGs. Again, the finding shows above average satisfaction level by different unit holders participate there regarding different marketing mix statement regarding 5 P’s Viz. Product, Price, people, promotion, and place. Finally, the study suggests strategies for efforts adopted by Government to overcome some difficulties in the present scenario.

Keywords: Food Processing Industry, APEDA, FPOs, SHGs, Horticulture, Export Policy

Corresponding Author How to Cite this Article To Browse
Dr. Neetu Chopra, Grading and Marketing Inspectot, Horticulture(P&M), , Jammu, J&K, India.
Email: 		Aditi Chopra, Dr. Neetu Chopra, EMPOWERING SOCIETY THROUGH PROMOTIONAL EFFORTS FOR EXPORT ORIENTED FOOD PROCESSING UNITS (A CASE STUDY OF EXPORT CONCLAVE AT RADDISON BLUE HOTEL, NARWAL, JAMMU). IJEMS. 2023;12(03):51-61.
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Manuscript Received Review Round 1 Review Round 2 Review Round 3 Accepted
2023-04-12 2023-05-17 2023-06-05 2023-06-22 2023-08-14
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© 2023by Aditi Chopra, Dr. Neetu Chopraand Published by The University Academics. This is an Open Access article licensed under a Creative Commons Attribution 4.0 International License https://creativecommons.org/licenses/by/4.0/ unported [CC BY 4.0].

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EMPOWERING SOCIETY THROUGH PROMOTIONAL EFFORTS FOR EXPORT ORIENTED FOOD PROCESSING UNITS (A CASE STUDY OF EXPORT CONCLAVE AT RADDISON BLUE HOTEL, NARWAL, JAMMU)

Introduction

Food is one of the most vital things in the world since no one can survive without it. As a result, there are several food processing enterprises around the world that serve consumers with high-quality, nutritious food. With $7 trillion in yearly production, food processing is one of the major worldwide industries (Handbook of Farm, Dairy and Food Processing Machinery engineering, 2019). We discovered companies that make cold drinks, wafer chips, juice, and restaurant chains across the world. Pasta, pizza, burgers, and sandwiches from Italy are now eaten in practically every country. Food processing enterprises serve customers all over the world by processing and delivering food. These companies are not only earning profit but also providing the livelihood to millions of people who are working as the employees of these firms.

The term food processing is quite a wide one consisting of all the edible items. lt covers a wide spectrum of products, of which the fruit and vegetable-based products cover a unique position. This industry plays a vital role in the effective utilization of horticultural products. Besides, reducing wastage and losses, the fruit and vegetable-based units helps in raising rural income by generating employment opportunities. The basic features of food processing units are that these units have seasonality in their production cycle. This is because supplies of their raw materials are characterized by seasonality. Another feature of these units is that they are engaged in the processing of highly perishable commodities, hence they require greater speed and care in handling, transportation, storage, and processing (David et al., 2001).The conversion of horticultural products into food, or one kind of food into another, is known as food processing. There are various sectors in Food Processing Industry like fruits and vegetables (horticulture) processing, milk processing, edible oil and fat processing, meat and poultry processing, marine processing, sugar and khandsari processing, consumer goods processing and cereal processing (MOFPI, 2023).

Modern food processing draws on scientific methods and is open to critical reviews and regulatory impositions. It assists in reducing negative food changes over time, pleasing customers with flavour, taste, and colour, catering to cultural beliefs, empowering women, and providing choice,

knowledge, and convenience to health-conscious consumers. It is often a potent tool to scale back food wastage. A strong and dynamic food processing sector plays an important role in diversification and commercialization of agriculture, enhancing time, ensuring value addition to agricultural produce, generation of employment, enhancing income of farmers and creating markets for export of agro foods (Bhatia et al., 2020). A well-developed food processing industry with a greater degree of processing reduces waste, enhances value addition, encourages crop variety, assures a better return to farmers, promotes employment, and boosts export revenues. This industry is also capable of tackling crucial concerns such as food security, inflation, and the provision of healthy, nutritious food to the public (Grankvist et al., 2001).

In India, the growth of a food processing sector can be a symbol of a strong linkage between industry and agriculture so that investment in the industry may result in improved production and returns from horticulture (Invest India, 2020). Currently, less than 10 percent of India’s vegetables and fruits production is processed. In comparison, the United States and China process 90% and 40% of their produce, respectively. Other emerging countries, such as Thailand, the Philippines, and Brazil, process up to 30%, 78 percent, and 70% of their product, respectively (Hailu, 2022). The top food processing companies in the world that are earning more than the entire earning of food processing companies in the world are Nestle, Pepsico, Kraft, Anheuser- Bosch In Bev, Cocacola, JBS S.A, Archer Daniels Midland company, Unilever etc. These companies are located in Switzerland, Newyork, U.S., Brazil, Atlanta, Sao Paulo, Decatur, London etc. Nestle company earns yearly the profit of CHF 10.61 billion, Pepsico gains the profit of US $ 6.462 billion and vice versa (India Brand Equity Foundation, 2020).

Classification of Areas in Food Processing Domain

The Food Processing sector can be classified under different areas: -

  • Manufacturing: - Food processing sector manufactures various products in various sub sectors like dairy products, fruits and vegetables processed products, cereals, meat, and poultry products etc.

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  • Packaging: - Packaging is the second important aspect revolves around food processing. There are various techniques include economic handling, biodegradable packaging, vacuumed packing, shelf-life enhancement packaging etc.
  • Technology: - In the present era of science and technology, the various simple techniques/ automation-based techniques are trending in the food processing industry.
  • Raw Materials or Inputs: - There is a lengthy process involved in supply chain of food processing sector. But now a days, the application of strong technology, warehousing of raw materials, this problem is day by day reducing.
  • Storage: - Storage is involved at every stage of food processing from warehousing of raw materials to marketing of the finished products (FICCI,2023), (Taherali, 2021)

Opportunities and Threats

The food processing sector the various opportunities in terms of primary, secondary, and tertiary processing of the raw products. Primary processing involves cleaning, grading, cutting, cold storage of fresh fruits and vegetables, grains, meat, milk etc to increase their shelf life. Secondary food Processing involves some modification in food to make it more user friendly.  E.g., Tomato puree from tomatoes. In tertiary processing, higher degree of value addition is used to make the processed food more user friendly like bread, biscuits, jams, jellies, namkeens etc. Food Processing sector faces a group of unique problems which have a pertaining to the strategy and required intervention for the development of the sector. The processors during this sector affect seasonal, perishable materials which require to be processed during a short period. As the sector mainly encompass of tiny, micro, and small units, neither they are ready to generate adequate surplus for their expansion nor invest in supporting infrastructure. Therefore, the sector needs support for creation of infrastructure and targeted incentives to draw in investment for creation of processing capacity(Economy Reading Time, 2021).

Export of FPI in India and Background scenario of FPI in India: -

In India, the food processing

sector needs to be taken into consideration at over all India. The produces from Horticulture sector are processed in the form of different products. These Products like Tomato Puree, Tomato Ketchup, Jams, Jellies etc. are very demanding products now a days.  India exported processed food worth Rs. 41,460.06 crores ($5,559.84 million) in 2021–2022; this figure includes the share of products like mango pulp (Rs. 924.54 crores/124.11 USD million), processed vegetables (Rs. 3986.45 crores/ 534.98 USD million), cucumber and gherkins (prepared & preserved) (Rs. 1487.30 crores/199.46 USD million) etc.(APEDA, 2023)

The Indian food processing industry is primarily export oriented. India's geographical situation gives it the unique advantage of connectivity to Europe, the Middle East, Japan, Singapore, Thailand, Malaysia and Korea. One such example indicating India's location advantage is the value of trade in agriculture and processed food between India the food processing industry is because of the cost and quality of marketing channels.

An Indian government agency known as APEDA or the Agricultural and Processed Food Products Export Development Authority, works under the Ministry of Commerce and Industry. Its main function is to encourage the export of processed food and agricultural goods from India.

APEDA has been actively involved in promoting the export of various agricultural goods from Jammu and Kashmir (J&K) in this context. Among other things, J&K is known for producing high-quality saffron, apples and walnuts and APEDA has been striving to make it easier for these items to be exported to other markets.

APEDA has contributed to the development of infrastructure and the delivery of technical support to farmers and producers in J&K in addition to encouraging exports. This include establishing cold storage facilities, offering instruction in packaging, and labelling etc.

Export Scenario in J&K:

J&K UT is fast becoming the export hub for agricultural and allied goods and the Trade and Export Policy along with various development schemes have given importance to efficient, production and marketing strategy for creating new benchmarks for J&K in the international 


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Market. In the last three years, UT has witnessed record breaking growth of 55 percent in export and a large share goes to agricultural processed goods. Many export success stories are from J&K. Agripreneurs have given birth to the unique products like cold saffron beverages, Kehwa dispersible tablets, apple chips, apple powder, walnut butter etc. Now the J&K is exporting the major products like apple, barley, cherries, corn, oranges, pears, plum, almonds, walnuts, saffron etc and exotic vegetables like broccoli, lettuce, red cabbage, Brussels, sprouts etc. The value addition to these J&K’s is exporting the major products like apple, barley, cherries, corn, oranges, pears, plum, almonds, walnuts, saffron etc and exotic vegetables like broccoli, lettuce, red cabbage, brussels sprouts etc. The value addition to these J&K’s Agri produce has an immense scope in processing, packaging, and marketing. (SKAUST-K) Sher-e- Kashmir University of Agricultural Sciences and Technology organised a four-day Agri-Export marketing training for FPO’s (Farmer- Producer organisation scheme), SHG’s and cooperatives. SKUAST also offers many short-term courses for skill development in Agri-processing sector (The Print, 2022).

The UT has an export value of $104 million majorly comprising of shelled walnuts fried or dried and fresh apples from J&K. The processing of fruits and making of Jams, Jellies, Juices etc. is an important industry in J&K UT. J&K is currently processing nearly one percent of apples and 25% of walnuts produced in India and has three food parks, 10 industrial parks , and 6 cold chain projects. The UT is a highest producer of temperate fruits offers an attractive opportunity for investors in food processing sector with the main objective of utilisation of agricultural products and reduction in wastage (TPCI, 2021). The J&K draft Agriculture, Horticulture and Food Processing Policy aims to attract investments for setting up units in agri-business, food processing and horticulture sector of J&K. The state government has envisaged a number of  policy interventions in this regard. It is planned to set up agri-export facilitation cell to handhold food processing and agri-business units for export of products from the state.

In J&K, for export promotion of processed products industries, the focus of the government is towards four parameters which are described as under:

  1. Scale of Production
  2. Aggregation
  1. Segregation
  2. Marketing of Products

In scale, the state govt. is focussing on how much produce is available in villages and other areas. In aggregation, the work of govt. is to identify marginal farmers to provide a market for their products and to aggregate them to form farmer Producer Organisation village wise. Again, Segregation means to provide value addition in processing and to provide cold stores for their produce so that they can procure the produce in cold stores and save them from wastage of produce.

  Last is to provide marketing facilities to the farmers for their products which also enhance variety development, quality improvement so that they can compete in national and international markets. Their branding, packaging should be available, regular buyer-seller meets should be conducted without more intervals etc.

Importance and Justification of Study

The topic Empowering Society Through Promotional Efforts for Export Oriented Food Processing Units (A case study of Export conclave at Raddison Blue Hotel, Narwal, Jammu) has not been studied extensively with scientific methodology having wider research dimensions and quality data. Moreover different research undertaken by different scholars could not properly cover the area of my research topic.

The Indian food industry is poised for huge growth, increasing its contribution to world food trade every year. In India, the food processing sector has emerged as a high growth and high profit sector due to its immense potential for value addition, particularly within food pr---- industry. The fruit and vegetable business has tremendous potential. Fruits/Vegetables are currently processed only at two stages (Drishti, the vision foundation, 2019). Frozen, caned, pulp, free, paste, snacks, dressings, dices, dehydration, juices, pickles, slices, chips, jams and jellies are all possibilities. To cater the increasing demand for healthy alternatives, some fruit-based components for condiments have a vast opportunity. India has only one % share in the global market and the acceptability of India horticulture products is rising due to the concurrent developments and huge opportunities for harnessing the export potential (MOFPI, 2023). So, we can say that the focussed policies/especially


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EMPOWERING SOCIETY THROUGH PROMOTIONAL EFFORTS FOR EXPORT ORIENTED FOOD PROCESSING UNITS (A CASE STUDY OF EXPORT CONCLAVE AT RADDISON BLUE HOTEL, NARWAL, JAMMU)

export oriented for horticulture based processed industries in India, promotional efforts by the agencies supporting these industries play a pivotal role in empowering the society at large and it also a dire need of the current scenario.

Research Methodology

  1. a) Objectives

          O(1)    To find out the number of export-oriented food processing units in India and their

growth level.

           O(2)   To study the extent to which promotional efforts by government plays role in

empowering society by establishing more units.

            O(3)    To measure the level of satisfaction among export-oriented units of processed

products.

             O(4)    To study problems in the marketing of processed/fresh products from sellers

perspective.

             O(5)   To examine the strategies to be adopted by the government and to suggest

measure to enhance the exports of food processing industries.

Hypotheses

H(0)     Government Promotional efforts stimulates the expansion of food processing industries.

H(1)     There is positive impact of promotional agencies on export of food processing units in India.

H(2)     Satisfaction regarding 5P’s of marketing mix influence the export oriented unit holders and their business performance.

Nature and sources of information

Data for the study would be collected from 25 export oriented micro and smallunitholders of J&K state. The selection of respondents would be based on profile list available of export-orientedunitholders participating in exporter’s conclave held at Radisson Blu Hotel, Jammu on 20.03.2023. The persons participated are viz, exporters of processed products of horticulture based, self-help groups of J&K, farmer producer organisations, government institutions etc. The total persons

participated in this conclave are forty-four (44). Among these 25 persons covering all categories were selected purposively for survey. Secondary sourceslike records, reports, books as line works of horticulture P&M department would also be used for study. The collected data would be analysed by using percentages, average mean scores and by applying regression and T-test.

Limitation of study

  • The study is limited only find out the growth level of export oriented processed with who participated in exports conclave only, others are ignored.
  • Due to time limitations, the study collected data from limited only (25) export orientedFPIs.
  • Due to low literacy rate among FPO and SHG, the level of satisfaction among 5Ps of marketing mix would result subjective responses. Objectivity cannot be ruled out.

Analysis

Objective 1- To find out the number of export oriented food processing units and their growth level.

By keeping in view the above objective, the secondary data about food processing unit is shown in table 1.

Table 1: Table showing number of export oriented food processing units in India and their growth (in %age)

Enclosed as Annexure 01

The above table shows year wise growth of food processing industries in India where, in the year 2017-18, the number of food processing units in India are 38600 with export of 3546.791 crores, which are increased in the year 2021-22 upto 40579 with export of 4611.330 crores respectively. Further the study by keeping in view the following objective, the proceedings are as under:

Objective 2:- To study the extent to which promotional efforts by government plays role in empowering society by establishing more FP (food processing) units.

From Table I, it is depicted that with the increase in the no. of units of food processing in India, the export are also increasing. It shows there is a strong relationship between no.


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of units andtheir export value (Rs. In Crores). Hence, the impact of increased promotional efforts in terms of growth of food processing with as their export level has been established with the help of regression equation which is as under: -

Enclosed as Annexure 02

Regression equation of Y and X

Y = -35945+1.0848X

The regression equation indicates that with the growth of number of food processing units the export of these units is also growing. This shows positive relationship between them and it is the ultimate result of promotional efforts done by government and other agencies for promotion of export oriented food processing units.

Exhibit-I

General profile of survey responding of export conclave at Radisson Blue, Narwal, Jammu

Enclosed as Annexure 03

ANALYSIS II

Exhibit I indicates the necessity of attracting young people for setting up the export oriented units so that maximum creative and young part of life of the entrepreneur is devoted for growth of the same. About 40% units surveyed have been set up by the entrepreneurs during the below 40 years of age followed by 60% above 40 years of age, thus indicating that people with experience have set up export-oriented food processing with in an state and outside.

The units so for set up concentrates among those having below graduate qualification background i.e about 52% showing more attraction of people with less qualification towards setting their own business even micro-settings for earning their livelihood in the early ages.

About 60% of the total with set up by male members of society indicate very high degree of gender bias against female members of the society or their indifferent attitude towards setting of export-oriented food processing units with in J&K state.

However, majority of survey respondents (68%) having established business with the earlier experience and maximums no. i.e.

15 (60%) have set up export oriented units related to fruit and vegetable processing only.

The proprietorship has appeared to be most popular (32%) followed by private company i.e. (24%) and FPO and SHG (16%), thus indicating the tendency of the entrepreneurs to be independent and self-controlled (exhibit I).

19 responding food processing unit holders in the survey were set up after 2000. As many as were set up with normal investment and annual production above one crore per annum i.e. (44%). All this indicates that the food processing sector has gained much  popularity in terms of production, investment, sole turnover required to make the units financially sound (Exhibit – I).

The units so far set up, do not indicate wider coverage of industrial activities in terms of variety of products being manufactured as per market requirements. Though the project proposals/DPR, for the establishment of units have been routed through the proper agencies responsible for examining feasibility reports etc., yet majority of these have been in f/v processing (60%),  followed by rice-milling (16%) and dairy processing (8%) respectively. Hence, still more units for manufacturing items of mass consumptions can be established subject to the promotional efforts by concerned agencies.

ANALYSIS III

Objectives 3 – To measure the level of satisfaction among export oriented units of processed products.

Satisfaction level of respondent regarding promotional efforts by APEDA & DGFT.

Though majority of respondents are quite aware about the various promotional agencies viz APEDA and DGFT and others but almost 50% of them have shows satisfaction from their effort in getting support from them indicating there by necessity of strengthening the more efforts so that the even-existing units holders not only know about these schemes of agencies and benefits but also avail the same for further growth and development of food processing units in the state. (Table 3).

Table 3: Table showing satisfactory response of respondents / export units of food processing towards promotional effort by APEDA and DGFT.

Enclosed as Annexure 04


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Here we take up the hypothesis:-

Ho:- There is no significant difference in the sample mean and that of population mean.

For this hypothesis, the study apply t-test of distribution by taking the sample mean of 20 respondents attending export conclave.

The formula for calculating the t-test is as under:

       T =

Where m = sample mean (20)

Table 4:-         Calculation of , S and t

Enclosed as Annexure 05

 =  = 18.3

S = = 4.94

 

For m = 20,

      t =

=                 = 1.91

For v = n – 1 = 12 -1 = 11, t0.05 = 1.796 (Table value) (1.191 < 1.796)

\ Calculated value of t is less than the table value, the hypothesis is accepted. Hence, the promotional agencies like APEDA and DGFT helps in increasing the exports of food processing units all over India. (HO$H1).

Analysis IV

Perception of export oriented food processing unit holders in export conclave at Radisson Blue Hotel Narwal, Jammu.

Food Processing unitholders perspective:- The perception of exporters / unit holder with regard to satisfaction towards the 5 marketing mix variables viz; product, price people of place and promotions are discussed by under:- (O3&H2)

The product availability is important for unit holders and same is true in this analysis. Mean response of food processors with regard to products in export conclave is (4.01), which shows above average satisfaction.

Table 5:- Mean response of wholesalers regarding product, price, place, promotion & people

Enclosed as Annexure 06

As compared to other statement, the first three statements viz; suitability of product by food processors, clear packaging of product and liking of product by the customer got higher response with mean values (4.80), (4.12) and (4.04) respectively (Table 5).

The study also reveals that food processing unit holders participated in expert conclave at Jammu are highly satisfied for all the four statements of price, i.e, product can be transported easily to buyer’s location (4.96), convenience of selling place (4.92), well-constructed and neat and clean place of selling (4.96), and well-equipped infrastructure and cold storage facility (4.92). The overall mean sure also shows about average satisfaction (4.94).

Export oriented unit holders assigned above average mean values to the statements regarding price of products which ranges between the maximum of (4.92) each for “genuineness of price charged by customers” and for “price negotiation and adjustments” to the minimum of (4.84) for suitability of price to maintain profits” (Table 5).

All the five statement have gained above average mean values from export oriented food processors at conclave which ranged between the maximum of 4.96 both for “customer satisfaction for their products” and for “less complaints by people for the products” to the minimum of 4.84 for “less disputes with people regarding different issues”. The overall result (4.91) reveals that food processing unit holders are more satisfied with the people purchasing products/ processed products (Table 5).

Table (5) shows the response of export based food processing unitholders for all the statements of promotion mix. The value ranged between the maximum of 4.88 for “promotion attracts more buyers” to the minimum of ‘4.80’ each for the two statements viz; promotion will create awareness among buyers and institution promotion will benefit you.

Conclusion and suggestions (O4 $ O5)

The study exhibits various strengths and weaknesses of promotional agencies in empowering society of development of more export oriented F.P industries. This can be strengthened with regular monitoring of problems which are discussed as under:-

Problems:-


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  • The survey of export oriented food processing unit holders showed the minimum response (3.08) with regard to superiority of competitor’s product in the market.
  • Insufficient demand of the processed product in the market as also highlighted by the unit holders as the major constraint.
  • Low and slow promotional activities related to research and technology, training and development was also highlighted as the major problem by food processors participated in export conclave.
  • Non-availability of primary processing centres with grading and sorting facilities also emerged as the major issue among SHG’s / FPO’s participated there.
  • Marginal farmers and micro unit holders were also highlighted market linkage for their products as the major constraint for marketing of their products.
  • Absence of cold storage facilities at village level and if available, it is of low capacity, which compels the farmers to sell their produce at low rate because of their perishable nature.
  • All the respondents revealed that there is lack of branding, packaging material for the processed products.

Strategic Measures

To strengthen the promotional efforts by the export oriented agencies, the following strategic measures are suggested: -

  • Products to be identified/analysed for processing at gross route levels so that it will help in strengthening of food processing units which will automatically result in upliftment of the society.
  • Identification of FPO’s / Cooperatives / SHG’s should be conducted at village level to make clusters, collection centres for the processed products which automatically result in marketing of their products.
  • A well-designed export policy where in special focus on quality controls, G.I Tagging, high quality labs, organic certification and capacity training should be developed for proper export of processed products.
  • There should be lot of scope for logistics where
  • in export oriented products should be segregated by adding value through branding and packaging of the under processed products.
  • Under Holistic Development Agriculture Programme, skill development and training courses for the development of food processing exporter should be conducted.
  • Buyer-Seller meets, Conclaves, Trade Fairs, Exhibitions etc. should be conducted after small intervals so that J&K should emerge as an export hub for the tourists and visitors.
  • There is a need for Bilateral Trade agreement with the products viz. Saffron, apple, basmati, pear, cherry etc from J&K with other countries like Iran, Arabia etc for improvement in the economy.

Annexure

Annexure 01

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Annexure 02

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Annexure 03


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Annexure 04

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Annexure 05

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Annexure 06

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