Guwahati: Mobile processing units could address the logistic challenges in remote areas by bringing processing facilities closer to the source, ensuring the freshness and quality of the products, said, Subhas Bhattacharjee during an interview with Pankhi Sarma of Business North East.
He also said, "For the Northeast's Agro-horticulture sector to thrive, we need to develop consistent market access, not just occasional successes like exporting few consignments of Fruits &vegetables to Dubai etc. The lack of a robust market structure means that even in 2024, we still don't have a proper post-harvest facilities with in-built market structure for horticultural produces from the Northeast.”
Subhas Bhattacharjee is the Co-chairman of Agriculture, Horticulture & Food Processing of Indian Chamber of Commerce (ICC) for the North Eastern Region.
Bhattacharjee further asserts, “In the north east we have now more than 26 agro-horticulture produces with GI tag, but simply having a GI tag isn’t enough; we need to focus on increasing acreage and productivity to ensure that these tags translate into tangible benefits for farmers."
Here are the excerpts:
BNE: Given your wide experience in Agro-horiculturesector Mr. Bhattacharjee, I'd like to explore the challenges and developments that have taken place in Assam and the Northeast region as a whole?
Subhas Bhattacharjee: Agro-horticulture sector indeed faces significant challenges, especially when we differentiate between agriculture, which typically involves plain land cropping activities like rice, wheat, mustard etc. and horticulture, which is more associated with hilly regions and involves crops like fruits, vegetables& spices.
One of the prime issues in the plain lands of Assam and other northeastern states is the small landholdings. Most farmers in Assam, for instance, have very limited land, making commercial agriculture immensely difficult. The fragmented landholding prevents farmers from engaging in large-scale, commercially viable production.
In terms of horticulture, while the hilly districts are engaged in producing horticultural crops, they haven't yet been able to achieve significant breakthrough. Most important factor is nonavailability of value addition and processing units. There are hardly any tenable cold chain facilities; its shortage is very critical in this part of the land locked region. Without proper cold storage, horticultural produce often rots in the fields, and farmers sometimes find it economically unviable even to harvest their crops due to inadequate market access and processing facilities.
Marketing of horticultural crops remains a major issue. These are perishable goods that need to be harvested and go through precooling operations to preserve their quality before reaching the market as fresh produces or veven for marketing. Unfortunately, even in 2024, C. Look at the local markets at Guwahati, you will find Apples from J & K & Himachal Pradesh rather than our local produce from Arunachal Pradesh. Ongoing logistical challenges and the absence of a proper & competitive distribution network, shies away our farmers from making significant progress.
Addressing these challenges by improving logistic facilities, post-harvest operations including setting up primary and secondary processing units, and enhancing market accesscould help our farmers make significant strides in this sector.
BNE: Recently, there have been reports about the government establishing several cold storage facilities in the state. How are these facilities performing? Is there a need for more of them, or perhaps a different approach?
Subhas Bhattacharjee: Let me start with Assam and then expand to the rest of the northeastern states. I used to work with NERAMAC, a central public sector undertaking with Ministryof DoNER. We used to supply frozen pineapple juice concentrate from the hardest-to-reach areas of the Northeast to Dabur Nepal, which was then used to make Real Tetra Pak pineapple juice. Many of you must have tried this juice, and it was produced from the pineapples grown by the farmers from Northeast. We used to produce pineapple juice concentrate at - 24°C and supplied it to them in frozen condition, and they would pack and distribute across PAN India and even in other countries.
However, merely setting up a few cold storages at random locations isn’t enough to solve the broader issue of taking these products to market. A cold chain; an uninterrupted supply chain that maintains a product within a specific temperature rangeis very much essential without break. Moreover in PAN India you will find many walk-in cold storages which are not available in this region. In the farming areas such walk-in cold storages are needed most during the peak harvest seasons.
During the COVID-19 pandemic, I authored a book, which was launched by the Member of NITI Aayog and Secretary Ministry of Science & Technology, Govt of India. In the book, one among the few suggestions were to start with the idea of mobile processing units, especially for the hilly areas where production is often concentrated in pockets rather than spread across large areas. These mobile units could travel to these remote areas, process the surplus produce, and pack it at site, addressing both logistical challenges and the perishability of the products.
You are aware that NECTAR (North East Centre for Technology Application and Reach), Govt of India has taken this idea forward.
They’ve partnered with CFTRI Mysore and are planning to launch mobile processing units in Assam and Meghalaya to start with. This initiative will be a significant boost for farmers in difficult terrains, allowing them to process the fruits & vegetables closer to the source and improve the freshness and quality of their products.
In the horticulture sector, primary processing of fruits and vegetables promptly after harvest is critical. Unfortunately, many entrepreneurs in this region tend to focus on secondary processing, supported by small subsidies under some schemes, which doesn’t address the core issue. For our farmers to succeed, especially given the logistical challenges in the Northeast, primary processing needs to happen first at the farm gate level followed by secondary processing.
Logistic infrastructure is severely lacking, even in 2024 in the region. For example, Pineapple is a fruit perennial to all the states of Northeast, you’ll mostly find it in the summer during the rainy season when road conditions are poor, making it difficult to transport in good condition. In winter, while the roads might be comparatively better, the pineapples are more acidic and less marketable. This is why primary processing at the farm level is importantensuring fruits are as fresh and market-ready as possible.
I was instrumental in securing Geographical Indication (GI) tags for several produces from Northeast, viz. Karbi Anglong Ginger, Tezpur Litchi from Assam, Khasi Mandarin, MemangNerang from Meghalaya, Large Cardamom from Sikkim, Arunachal Orange from Arunachal Pradesh, Queen Pineapple from Tripura, Kachai Lemon and Black Rice from Manipur, Mizo Chilly from Mizoram and Tree tomato from Mizoram. This I am sure has helped farmers receive better prices for their produce by highlighting the unique origin of these products. For instance, Karbi Anglong Ginger is now recognized as a premium product from the region, and the farmers are getting delta benefit / added value while marketing. Similar is the case from other GI tag produces.
To answer your initial question about cold storage, the solution isn’t to have just more cold storages but a more integrated approach with mobile processing units and a continuous cold chain is recommended. While there have been some successful initiatives, such as exporting few fruits, vegetables and spices from Assam, Tripura, Arunachal Pradesh to Dubai etc. with the support of APEDA but these efforts need to become consistent and regular to truly motivate and support our farmers.
BNE: I have two questions. First, should entrepreneurs begin with a mini processing unit or the mobile processing unit you've mentioned? And second, how has obtaining GIs (Geographical Indications) helped the agricultural and horticultural products of Assam?
Subhas Bhattacharjee: If an entrepreneur wants to start an industry, they must focus on value addition at the primary level. The Ministry of Food Processing has introduced a scheme called PMFME (Prime Minister Formalization of Micro Enterprise), which is an excellent starting point. Under this scheme, budding entrepreneurs can receive a grant of up to 10 lakhs. This scheme allows setting up a micro / small plant, ideally located near the source of raw materials. It's also supported by the ODOP (One District, One Product) program, which helps identify a particular crop in each district that can be processed by local entrepreneurs. This initiative ensures a steady supply chain for the processing units.
As regard, Mobile processing units, they are specifically designed for hilly areas, in Assam districts like East & West Karbi Anglong, NC Hills, etc. where transportation of raw produces are challenging. For instance, the once-famous Orange Juice / Squash of Crunch brand from NC Hills of Assam is no more heard due to total stop of processing facilities. Mobile units could help revive such industries by allowing processing close to the source.
As for GI tags, they offer significant benefits. A GI tag associates a product with a specific location, which helps in marketing. For example, Tezpur Lichi, which is grown within a 15-25 km radius of Tezpur, has even been exported to Dubai, so also GI tag Khasi Mandarin from Meghalaya and Queen Pineapple from Tripura were exported from north east which are recognized for their unique qualities, reducing the need for extensive marketing.
However, it's important to note that simply having a GI tag isn't enough. There needs to be a focus on increasing productivity to make the GI tag commercially viable. Initiatives taken by Govt of Meghalaya for the GI tag Lakadong Turmeric in the name of Lakadong Mission is worth mentioning. Under the Mission Government has taken up increasing the cultivable area and even productivity. This is certainly an example of how GI tags can be effectively leveraged.
BNE: Has the GI tag significantly increased the prices of agricultural and horticultural products?
Subhas Bhattacharjee: I wouldn’t say that the GI tag has caused an immediate spike in prices. However, as awareness continues to grow, we’re likely to see a more noticeable impact. Take, for instance, the Khasi Mandarin, which was previously going to Bangladesh on unauthorised trade without going through the official Land Custom Stations. Now, with the GI tag, this product has gained export value, and we saw Khasi Mandarins being exported last winter. Products that were once undervalued are now earning our farmers at least more value; a clear example of how GI tag has benefited specific producer or their cluster.
As regard development of mega food parks in the Northeast, the situation is still evolving. We’ve advocated lot to the Ministry of Food Processing Industries, Govt of India to adapt their approach to the unique challenges of the region, such as low production levels and difficult terrains, which make large-scale investments too challenging. This has led to the introduction of Agro Processing Cluster Scheme. The transition from Mega Food Parks to Agro Processing Cluster Scheme came during the tenure of Sri Rameshwar Teli ji,MoS, MoFPI. We have several agro-processing clusters now in Tinsukia, Tezpur and Kamrupamong others. These Agro Processing Clusters are more adaptable, allowing farmers and local entrepreneurs to begin processing on a smaller scale, which is more suited to the Northeast's needs.
Meanwhile, most of the Mega Food Parks in the region, like those in Tripura, Mizoram, and Arunachal Pradesh, are yet to fully take off. The exception is the Northeast Mega Food Park at Tihuin Nalbari district of assam, which is operating smoothly. Focus need to be moving forward to be on these more flexible Agro Processing Clusters, which seem to be a more practical solution for the region.
BNE: The Northeastern states are known for their large-scale organic farming. How is the current situation with organic farming, and is the government still focusing on it?
Subhas Bhattacharjee: Organic farming involves more than just avoiding chemical fertilizers; it also requires that the land used for production is free from chemical inputs. Many areas in the Northeast naturally align with these organic principles. However, commercially, we refer to this as 'default organic,' even though the practices are genuinely organic.
The Government of India is indeed focusing on promoting organic farming. MOVCD-NER (Mission on Organic Value Chain Development for North Eastern Region) was launched a couple of years ago. This initiative aims to support and develop organic farming across all eight Northeastern states. Each state's Agriculture or Horticulture department has a dedicated Mission Director to oversee organic farming initiatives.
Sikkim stands out as a model for organic farming. It achieved 100% organic certification in 2016-17, becoming the first state in India to do so. The Sikkim Organic Certification Agency (SOCA) was established in 2016 to manage this process.
Other states in the Northeast are progressing but still lag behind compared to even some other parts of India. Certification in these states is handled by accredited agencies under APEDA (Agricultural and Processed Food Products Export Development Authority), which currently has 37 accredited agencies providing organic certification.
While the Northeast has a significant amount of organically farmed land, it is still catching up in terms of certification and commercial organic farming compared to other regions in India. Sikkim remains the benchmark for fully certified organic practices in the region.
BNE: Has technology played a significant role in the agriculture and horticulture sector in the Northeast?
Subhas Bhattacharjee: Yes, technology is crucial for advancing agriculture and horticulture. However, implementing effective technology in the Northeast is againchallenging. Over the past decade, the region has seen a rise in startups and incubation centers, which have introduced various technologies. Institutions like CFTRI, NIFTEM, and local universities such as AAU Jorhat, CAU Imphal and other Agriculture Universities have provided valuable technologies for food processing and other agricultural needs.
Despite this progress, there are challenges. Sometimes, individuals tasked with training and implementing these technologies lack a deep understanding, leading to gaps in effective adoption. This can hinder the region's development despite the availability of advanced technologies in the region.
On a positive note, recent advancements like using drone technology in pesticide spraying in different plantation programgreatly benefiting large-scale agricultural operations. Although AI is still in its emerging mode, drones are already being used in various Mission / Schemes of Govt of India in the Agriculture sector, including the newly introduced Atma-Nirbhar Mission viz.National Mission on Edible Oils and Oil Palm (NMEO-OP), to enhance efficiency.
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