<strong>AgriManipur</strong> Volume 1, Issue 1HOTTOPIC“Many question remains:Will it crumble like anyother govt set up? Whygovt is hunting forpotential entrepreneurs?Will it provide thefacilities much needed byindustries?”Nilakuthi Food Park: Is it going to shape food industries?‗Food Park‘ was buzzing the circles of food entrepreneursfor quite a long time. Long wait is almost overnow. Highly publicized Food Park at Nilakuthi is crystallisingat last. Sigh of relief! Food park was poised as asuccour to the state much needed food processing infrastructure.Food processors/ entrepreneurs are invitedto assemble together and unleash their prowess. Lastminute high profile call for entrepreneurs in a glossyfront page of local newspapers either indicates its intentionto start with pomp or inability to attract entrepreneurs.Many question remains: Will it crumble like anyother govt set up? Why govt is hunting for potentialenterpreneurs? Will it provide the facilities muchneeded by industries? Will it propel food processingforward and, if yes, how? How will it integrate statefood resources? And many more…Concept of Food ParkFood park or any other park has a simple philosophy –aggregating business entities in a single roof by providing/sharing some facilities which are common to themthereby reducing fixed and running cost. A great idea –sharing for cost effectiveness. In food park, the foodprocessors are located close by so they can enjoy thecommon facility installed in the park. For example,running cold storage individually is an expensive exercisefor small and medium enterprises. Moreover, sometimes,single factory may not use its maximum capacityoptimally. These limitations can be countered by sharing.With proper synchronisation, this may work wonderfor SMEs. Some of the facilities which can beshared include weighing bridge, plastic blowing ma-chines, electric transmission, boiler, etc. Food parkalso help farmers by overriding the middlemenwhich they traditionally rely on and thus reducingthe cost of transaction. It also narrows down the notso-reliablemultiple channels to a few reliable, regulatedand transparent routes. It may be particularlyuseful for developing countries where SMEs aredominant and cost a critical factor.Food Parks in ManipurAs per MoFPI reports, there are two foods givenfinancial supports. First one is MATA Food processingpark. Though call Food Park, it doesn‘t have theattributes of food park since no other factories/ entrepreneursother than MATA itself are operated. Ithas two plants; ginger oil extraction plant designed byCSIR Lab, Trivandrum and multipurpose fruit processingplant designed by CFTRI. MATA fruit processingunit boasts of having non-thermal juice concentrationsystem, funded under PATSER scheme ofDSIR, but faced with problems and commercial productionhas not been started so far. But the goodnews is in 2009 it tie up with Shimla Hills OfferingPvt. Ltd. And since then started producing cannedpineapple slices on limited scale inspite of varioushurdles.Nilakuthi food park is another one funded and managedby state govt. under Manipur Food IndustryDevelopment corporation.CollectioncenterPrimary Procesing Centre (PPC)Sorting & GradingRefrigerated vansPulping & Juice extractionCollectioncenterCentral Processing CentreCommon technical infrastructureCommon facilitiesbasic infrastructure and utilitiesStandard Design facilitiesPage 4Mega food park concept
<strong>AgriManipur</strong> Volume 1, Issue 1Bridge connecting food park and NH37:When to complete?Nilakuthi Food ParkNilakathi Food Park was conceptualised byNABARD under Rural Infrastructure Dedelopmentfund. Food Park at Nilakuthi is a 30 acrefood processing facility located on the nationalhighway just 5 km from the Imphal centre. Itwill house numerous facilities like cold storage,ware house, quality control labs, packaging,tool room, power and water supply, sewagetreatment, etc. It can accommodate around 60units with area about 600 sq. M for each unit.The total project cost is estimated to be Rs3172.4 lakh out of which 13 crore is fromNABARD‘s RID fund and the remaining Rs.18 crore is provided by state govt under specialplan assistance. However, due to steep priceescalation the cost had to be re-evaluated andin doing so, state govt requested planning commissionof india to sanction another Rs. 3. 36crore. PCI generously accepted for utilisatiionduring 2009-10 fiscal year but unfortunatelythe fund was lapsed. Now the ball is the courtof ministry of food processing. The whole storyunderlines the delaying tactics of state govtresulting to suffer the completion of food park.Manipur Food Industry Development Corporation(MFIDC) under the department of commerceand industries is the nodal agency toimplement and operate the food park projectwhile UP based Construction and Design Services,Jal Nigam took up the constructionwork. However many state govt depts. like(PWD, electicity dept, IFCD) are involved inprimay and secondary part of the project likebridge construction, road construction, streetlight, electrification, etc. This is also one of thereasons completion is always a dream. Besides‗lack of urgency‘ by the state govt in release offund, various reasons are attributed to delay inPage 5the completion of food park. Delay inrelease of fund led to delay of completionand the price of the material wasescalated in the process. So, new fundhad to be poured which itself is theworst nightmare of MFIDC.Hurry in publicity in the excitement tocapture media was also seen. ExNABARD (Imphal centre) DGM Sonamanireported in November 2006(Sangai Express) that 33% was almostcompleted and expected to complete inMarch 2007. Quite contradictory, inanother news report , it was reportedthat construction started only in March2007 and target was kept in August2009. Again, govt promised to keep itin order by July 2011. That too failedand extended till December. Now wehave to hope for the best. Our fieldinvestigation revealed many improvementshave been made and there is agreat hope that December dateline maybe a reality.How it will worksCold storageThe present focus is certainly on completionof the contruction. So apparently,the modus operandi has so farnot been well thought; how the day today management will be accomplished?What is source of finance? If fee/ rentalhas to be collected, will it be sufficientto meet variable cost (like maintenance)and fixed cost (like salary)? Besides this,will units maximally use the facilities?If not, can fixed fee be demanded? Theshabby situation of the Takyel industrialestate is a glaring example (thoughstyle may be slightly different). Uniquemechanism may be necessary to usher the full advantageof the park. There is a need for proper synchronisationof facilities to avoid overlap or glut or underutilisation.This is particularly true for cold storagewhere maximum utilisation is necessary from technicaland financial point as well.Entrepreneurs mindWarehouseThe greatest crux so far with regard to the Nilakuthipark is on how to incorporate/ accommodate entrepreneursto the park and system. How many existing/potential food processors/ entrepreneurs have fall inline ? As per our record , only 1/2 entrepreneurshave deposited money to book their space. Thoughthe park looks attractive, few factors are likely to dragtheir interest. Deposit fee for the space is Rs. 5.2lakh. Given the condition that most of the entrepreneurs,excepting a few, are at the level of cottage andmicro level (not even small!), hefty sum of Rs. 5.2lakh is difficult to bite. On the other hand thosesuccessful small/ large scale food entrepreneurs, havetheir own factories and shifting place may not be socomfortable.The space they purchased will be their own; thatmeans mortgage-able. This is a good one but againnot friendly to entrepreneurs. Pakka construction is ahighly cost intensive exercise. So the need for loanmay arise. Can a land of Rs. 5.2 lakh be collateral ofRs. 20 lakh? Normally in most cases banks demandcollateral value much larger than loan amount thattoo land value evaluated by conservative valuers.Bank also normally demand third party security. Inthe essence, concept of the park in the existing formatmay not be lucrative for enterpreneurs.Given the size of the market , entrepreneurs may notbe so interested in gambling over the risky exercise offood business. Frankly speaking, most of the entre-Contd. on page 14