Dutch initiative takes on food prices in India

RNW, 7 May 2011, by Devi Boerema

(Photo: Devi Boerema)

Rising food prices are threatening South Asia’s economy. Families already living just above the poverty line are now struggling even more due to the recent explosion in vegetable prices. And a new report released by the Asian Development Bank predicts an even grimmer future if prices continue to rise.

Though Asian countries have made a steady recovery from the economic crisis, the poorest of society are not benefiting. ADB predicts that 64 million people will fall below the poverty line if food prices rise any further.

The images of grain rotting in ill-equipped storage spaces are still fresh on the minds of many Indians. At the end of last year, while the lower classes were starving, tonnes of grain were going to waste because crop surplus preservation is still difficult in India.

But, with the launch of a Dutch initiative last month in Mumbai, this could soon be a thing of the past.

Experienced farmers

During India's Food Forum, the Food Tech Holland initiative was launched. This is a consortium of Dutch companies specialising in food production and logistics.

The Dutch climate, with its four very different seasons, is not ideal for growing vegetables. So vegetable growers had to adapt. And in doing so, Dutch farmers learned how to overcome almost any food preservation challenge - positioning them perfectly to become leaders in the field of food processing.

Project manager Eric Oving: "All companies connected to the Food Tech Holland initiative offer an efficient way to produce and process food. Their solutions effectively reduce the cost of the end product. They have already proven themselves in Europe."

Room for improvement

Currently about 40% of Indian food goes to waste during storage or transport. In comparison to Europe, where waste is only a few percent, there is a lot of room for improvement.

The recent rise in the price of onions is a good example of the importance of proper vegetable storage. With well kept stocks, surplus onions could have been released onto the market when this year’s yield turned out to be disappointing, preventing tear-inducing price rises.

Traditional cooking

The Dutch company Tolsma especially focuses on storage of onions and potatoes, vegetables that are normally affordable and a staple in traditional Indian cooking.

Dim-Jan de Visser: "At the moment, onions are mostly stored in the open air in India. Due to the humid climate, almost 40 percent of the yield is lost every year. When the supply gets smaller at the end of the season, the prices rise."

Long road

Tolsma offers a wide range of solutions to warehouse owners. But Mr De Visser stresses that storage facilities are not the only hurdle on the road to better food production.

"The whole chain of food producers has to adapt to a new way of working in India. Everyone has to benefit. If people are left out because of more inefficient production techniques, it will cause unrest among the many farmers in this country."

As the gap between lower and middle class India grows, their food needs do too. Now that they can afford it, the middle class is becoming more critical about the quality of the food they buy. This new segment of the Indian market is interesting to Dutch vegetable seed breeding company Rijk Zwaan.

The latest thing

Mini cucumbers and tiny cherry tomatoes are the newest thing on the Indian market. High end restaurants and hotel chains love to serve their guests these healthy little snacks.

Hans Bouman of Rijk Zwaan says he's aware that only a small percentage of the Indian people will be able to afford the luxury vegetables. But, he says, that doesn’t mean Indian farmers won’t benefit from this new trend.

"If a farmer can deliver a better and more special product than his competition, he will be able to get a better price for his crops. He may not be able to afford the price of the end product, but he will earn more from his corps."

Cooperation

To improve food storage, the Indian government has announced the development of fifteen mega food parks. These parks will have to ensure a high quality of food production and storage. Food Tech Holland has already been invited by the ministry of food processing to discuss possibilities for cooperation.

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