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Our Bureau

Chennai , Nov. 11

PACKAGING industry should be promoted first for food processing to progress. But, the Centre is talking of developing food processing without sufficient focus on packaging, which underpins processing and retailing, say experts.

Addressing newspersons on Packcon 2005, a conference on food packaging and innovations, Mr G. Shanker, President, Madras Consultancy Group, said developing a modern packaging industry was primary to promoting food processing.

However, the authorities were stressing on the benefits of food processing that required modern packaging materials.

Due to policies restricting sectors of packaging to small-scale industries, large players are hesitating to enter India. So technology infusion was not happening, he said.

India's packaging industry should consolidate to gain economies of scale to be a global player.

Policy makers should put packaging ahead of processing for the benefit of the agriculture sector.

This sector presents the largest potential for development of packaging and food processing.

With changes in lifestyles and increasing health awareness, growth in organised retailing processing was bound to grow, Mr Shanker said.

Globally packaging industry is estimated at about $480 billion of which over 24 per cent is in the US; 34 per cent in Europe; 6 per cent in Latin America; and 24 per cent in Asia - most of it in Japan and South-East Asia. India's share was inconspicuous, he said.

Mr Ajay Kumar, National Manager, Business Development and Projects, Tin Plate Company, said packaging plays multiple roles — not just holding the contents safely, but also in providing instructions on product use, brand building, convenience and attracting customers through its aesthetics.

Internationally, issues such as environment friendly packaging, innovation and WTO compliance are being addressed.

Tin plate packaging accounts for about 70 per cent of packaging material of processed foods. In India too, the trend is emerging.

The key to success is innovation, consumer care, efficiency and aesthetics.

Mr P.V. Narayanan, SIES School of Packaging, said the Government should help absorb technology and innovation through its policies.

Food safety and standards should be of international levels. Food marketing is poised to change with the developments in organised retailing.

India was emerging as one of the largest retailing destinations. But the industry was fragmented.

The retailing industry size was estimated at about $7.5 billion (Rs 35,000 crore) but it had 11 million players.

The US had just one tenth of the number of players in a market that was 13 times bigger, he said.

The two-day conference, organised by the Confederation of Indian Industry, is part of the Foodpro 2005 being inaugurated on Saturday.

Next big growth

Retailing was set to emerge the next big growth area with employment generation potential next only to that of agriculture, Mr Narayanan said.

There would be over 50 million sq ft of retail space with 300 shopping malls by 2007. The fast food processing industry is estimated at about Rs 650 crore and expected to grow with the boom in retail segment, he added.

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