What are the economic challenges associated with starch industry in india.
Answers
Since antiquity starch has been used as an important commodity worldwide for various purposes that span as a source of food and nutrition for humans through the non-food areas such as in the production process of textiles, pharmaceuticals, construction materials, paper and pulps, glue and adhesive, packaging and printing, beverages, alternative energy sources and many others. Presently, corn, wheat, cassava and potato are the dominant crops widely in wider utility for the extraction of starches globally mostly based on the availability and economics in a given region. It is estimated that worldwide paper starch consumption consists of 67% corn, 15% potato, 8% tapioca, and 3% waxy maize. Agro-ecological suitability to either of these commodities specified the type of starch produced by the dominant starch producing countries. United State of America dominantly produces corn starch while European countries with very cool environment produce starch mainly from potatoes. Similarly Asians are the hub of tapioca starch. Ethiopia presents wider opportunity for cultivation of various starch source crops owing to its diverse agro-ecologies that permit the production of different crops. Potato starch will probably have the utmost prospect as over 70 percent of the country is situated at an elevation > 1500 meters above sea level. This has endowed the country with the highest potential for production of voluminous and quality potato among other African countries. This study is then aimed at investigating the current state of starch production in the country, supply and demand factors and growing demand owing to emerging concern for environmentally friendly and bio-degradable products as compared to plastic products, value chain based approach of agricultural development, and potential opportunity for potato starch production to amplify the role of potato industry to the country’s GDP. To this end a survey is carried and data were collected from discussion held with managers of different starch using factories and starch extracting firms. Analysis of supply and demand, available technological advances worldwide, potentials for domestic raw materials and starch production, and its sectoral linkage with the country’s development target and framework is done. The study result has revealed a rapid growth in starch utilizing factories in Ethiopia, wide gap between the domestic supply and demand for starch, a yearly outlay that worth over 2 million USD (44, 228, 066 birr) for its import, low but improving quality of domestic starch, ample potential for production of starching potato and starch as quantified from suitability map of potato production and therefore make a significant contribution to the horticulture industry strategy target of import substitution and export promotion. Potato starch appears to offer a new market for the potato industry.