Showing posts with label productivity. Show all posts
Showing posts with label productivity. Show all posts

Tuesday, July 26, 2011

MAN VS MACHINE-DILEMMA OF DEVELOPING COUNTRIES

One distinguishing difference between rich and poor countries is the power of modern technology the former have which deploys energy intensive, largely automated machinery and high productivity techniques making human intervention redundant. Modern industrial economic principles call for high production volumes which brings down the cost of production and increase profitability. In contrast most developing countries, having abundant man power and large unemployment rate depend heavily on large number of small scale operators for industrial production. Dynamics of economic growth can uplift the economies of many developing countries as witnessed in China, India, Brazil, Malaysia etc and availability of manpower becomes more and more difficult. In this context is it possible for them to continue with small and micro-enterprises based economy? Do they have any option other than going in for large sized manufacturing operations involving mechanized processes and equipment and reduce human deployment to the minimum?

In a country like India many food processing operations evolved over the years and after the British era, the independent republic was left with a huge problem to provide employment to millions of people, not engaged in agriculture. Traditionally most food processing was done manually with very little use of machinery. A classical example is the grinding of grains into flours which is done even to day by stone mills or steel plate mills, the processing capacity not exceeding a few kilograms an hour. Advent of Roller Flour Mills with capacities ranging from 30 tons to 1000 tons a day did not change the landscape much since refined flours from grains like wheat have little culinary relevance. Same held good for all food processing sectors like fruit and vegetables, oil seeds, milk, poultry, meat and packed foods. Transformation from a predominantly manual mode of food processing to large scale mechanized mode has been very slow, though clearly perceptible.

The scenario started changing only when manpower availability became critical and the cost became exorbitant. Employment exchange centers where unemployed people are supposed to enroll are not able to provide required man power to the industry, forcing them to look for more and more mechanization. The trend towards increased mechanization became more perceptible after the economic liberalization process which started in early nineteen nineties and to day entrepreneurs can access the best machinery from across the world with minimum hassle. The days of Khadi and Village Industries Commission set up during the early years of independence to encourage and support micro-enterprises has largely become dysfunctional with practically no support from the government. Though there is much talk about unemployment in the country, the ground reality is that industry finds it hard to get unskilled personnel in required numbers at reasonable wages for employment. With many government employment schemes operating and paying high wages, the trend is for people to gravitate towards these schemes leaving the industry high and dry. What option does the industry have except going in for mechanized gadgets and implements for managing production?

What are the long term repercussions of such a change on the economic front of the country? There was a time when India had the cheapest labor and it was a strength on which exports were built. In the food area there are many operations that cannot be done using machines without compromising on their eating characteristics though continuous R & D may come up with more efficient equipment in response to emerging demand for such mechanical contraptions. Products like Papad, Roti, Chikki, most fried snack foods, traditional sweet meats, require deployment of artisans familiar with the unit operations involved and it is difficult to imagine that satisfactory machines will ever be evolved. If this is so how about using this situation to the advantage of the country? For this to happen the redundant and wasteful Government schemes must be replaced with imaginative productive schemes linked to industrial needs. In stead of distributing doles to people with no long term benefit, such funds must be channeled to industrial workers like artisans and unskilled labor force in cooperation with the industry.

If GOI can evolve a policy of encouraging these artisan based industries through a "special purpose vehicle" (SPV) with high priority to enable them to manufacture safe and high quality products with minimum use of power driven machinery, there will never be a challenge to the supremacy of the country from any quarters in the foreseeable future. India should learn a lesson from the experience in the cashew nut processing which was earlier a predominantly labor intensive operation, now being done with machinery. With individual skill for getting high quality nuts being marginalized, there are countries like China, Vietnam and those from some Africa which are challenging the Indian supremacy in this coveted area. What India needs is a series of functional industrial estates across the country that will specialize in some or the other food areas and if adequate technical and financial muscle is provided there is no reason why India cannot dominate the global food market with its enormous 'human muscle" and no other country on earth can pose any challenge in the foreseeable future. Where there is a vision and a will, there must be a way to accomplish the objective.
V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

Sunday, April 3, 2011

INDUSTRY-FARMER ALLIANCE-NEED OF THE HOUR

Why is that the very name Pepsi or Coke evokes adverse reaction amongst many people in India, especially the intellectuals? Is it because they are multinationals with excessive focus on profit, ignoring the welfare of the local communities where their manufacturing centers produce multitude of products targeted at the middle class? High fat, high calorie products from these food giants have already been indicted partly for the gigantic obesity epidemic in the US and other rich countries and can this be the reason?

Look at the decade old war of words and insinuations between the Kerala Government and the Coca Cola regarding the social, health and economic damage caused by one of the cola bottling plants in that state and how silly it can be for the government to claim damage for using under ground water without which the bottled beverage cannot be made! Why the hell Coke was given license knowing well such a thing could happen? Why not take action against those Babus who overlooked the social aspect of the project at the evaluation stage? In contrast here is a case of PepsiCo receiving accolades in Mexico for its close social liaison with the local population, especially the farmers.

PepsiCo, Inc. the global rival of Coke, seems to have consciously courted a course that would endear them to people in Mexico, especially the farming community and where they have considerable commercial interest. Their Sun Flower cultivation program encourages the local farmers to grow sustainable version of Sun Flower with a 100% buy back guarantee, reducing the risk to the growers to a considerable extent. In partnership with the lending institutions PepsiCo offers to provide technical support and training to 850 farmers who will be using sustainable agricultural practices to meet PepsiCo's contract, estimated at $52 million over the next seven years. The investment is indicative of the new trend and growing demand from the snack food industry for higher quality vegetable oils and probably may provide income and security to the farmers and their families. The world's number two seller of nuts and seeds will be processing a majority of the sunflowers into a high-oleic, heart healthy oil to be incorporated into product lines from many regional brands.

While one can ignore the "adorable" words like sustainable agriculture, nutrition, food security etc used by the MNC to highlight their involvement, the fact still remains that the this global giant is at least sensitive about the issues on which they have to live up to the expectations of the civil society. It is also true that they are producing same junk foods and beverages like in other countries for which they will be taken to task one day or the other. All said and done this new sensitivity as being shown in Mexico must be perceptible in other countries like India also. Looking at the development of MNC food companies in India during the last few years, there certainly exists an awareness about the local needs vis-a-vis taste and flavor as evidenced by range of new products in the market specially designed for local palate that never exist in any other part of the world. Probably this approach to serve the needs of the consumer rather than attempt to change their food habits can be expected to stand in good stead for these MNCs in the coming years.

Of course there is the famous ITC program being run in some states in the northern part of India under the e-Choupal project which covers millions of farmers engaged in growing wheat through technical and other supports that help them to maximize returns on their crop. Of course ITC has an abiding interest to securing adequate supplies of high performance wheat which go in the manufacture of their branded atta through out the country. There is nothing wrong for the commercial and farmer interests coinciding for mutual benefit and such role models need to be replicated several fold in areas like pulses and oil seed production in which India is still not self reliant. If GOI is pro-active to promote, encourage and incentivize such PPP projects, India may really become the super economic power for which right now there is only a yearning, no concrete action.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com