Date: 05/10/2022

Relevance: GS-3: Food processing and related industries in India- scope and significance, location, upstream and downstream requirements, supply chain management, Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.

Key Phrases: Food Innovation Hubs (FIHs), World Economic Forum (WEF), Public Private Partnership (PPPs), Carbon Credits, Food Innovation Hubs and New age Agriculture

Context:

• The World Economic Forum (WEF) is bringing together a network called ‘Food Innovation Hubs’.

Background:

• The Food Innovation Hubs initiative aims to strengthen local innovation ecosystems and achieve self-sufficiency in food production through private-public partnerships (PPP).
• The ‘Food Innovation Hubs are coming up in Columbia, Vietnam, the United Arab Emirates and the European Union.
• Many others are also in the process of being set up in Kenya and Rwanda.

Promoting innovations

• The first hub in India is being set up in Madhya Pradesh under a collaboration agreement between the WEF and Madhya Pradesh government.
• The hub which is based on agricultural development will promote innovations in alignment with tenets of the AtmaNirbharata
• The Food Innovation Hub in India aspires to enable a mechanism that can strengthen local innovation ecosystems and address needs across the food value chains using technology and innovation

Setting up and operating FIHs

• Any hub is set up with close cooperation of local government and private sectors to meet its goals.
• There is no direct funding from the WEF for initiating projects under the hub.
• The hub enables the Public Private Partnership (PPPs) by roping in agtech companies and linking them with government agencies such as Krishi Vigyan Kendras etc.
• The innovation hubs depend on one another for knowledge exchange with a Global Coordinating Secretariat in Holland.
  • It ensures that every hub is functioning as per global objectives, besides acting as a stimulant.

Proof of concept is essential

• Any FIH will proceed only after the firms involved create a proof of concept with the government.
  • Madhya Pradesh was chosen for initiating the hub’s work as it was open to exploring opportunities transparently and collaboratively.
• Various agtech firms can be part of a project providing a variety of cutting-edge solutions
  • Pledge financing through fintech modalities
  • Using spectrometers to perform quality assaying
  • Using remote sensing to providing advisories
  • Facilitating efficient crop insurance.
• Besides agtech firms, not-for-profit companies are also involved to enhance the reach and credibility of digital innovations at the last mile.

What are the focus areas of the FIHs?

• The Food Innovation Hubs will focus on many facets of food processing and agriculture such as
  • New age digital agriculture
  • Innovations in regenerative farming
  • New age agro-ecological solutions.
• It will look at several modern and traditional models to address climate resilience.
• It looks at upcoming innovations in carbon offsets whose implementation is critical to providing financial incentives to the farmers to grow more sustainably.

Leveraging Carbon credits

• The carbon credit market is becoming big globally and India can benefit with a well thought out execution plan.
• There are existing firms and new ones who run business operations that aim to pass on the benefits of protecting ecosystem services to farmers
• Other new age innovations include the usage of targeted soil and crop management through drones.
  • Spraying of bio-chemicals on fresh produce that may enhance shelf life and thus arrest food loss.
• These are conducive to the environment and support nutrition and health in the long term.
• The initiative aims to facilitate pilot projects to validate and test innovations, particularly by agtech companies, and support them in achieving scale and amplification in the future.

Financing through unconventional means and Philanthropic funds is the way forward

• The FIHs require large scale capital investment before their direct benefits are reaped.
• The FIHs can be financed through unconventional sources such as philanthropic funds
• These funds are looking to unlock the PPPs by
  • Providing initial funding, particularly in achieving proof of concepts.
  • Philanthropic partners are an integral part of initiating and accelerating ecosystem transformation

Conclusion

• A growing set of global players from the private and public sector drive and support this exciting initiative.
• Once India’s Food Innovation Hub builds a solid ground in the targeted places it will be a game changer for leveraging agriculture sector
• Therefore its successful implementation presents opportunities which can be carried out in other states such as Odisha, Bihar and Meghalaya etc.

Source: The Hindu BL

Mains Question:

Q. The World Economic Forum backed Food Innovation Hubs have potential to achieve food self-sufficiency around the globe, Discuss. Also write on Food Innovation Hubs and their possible impact on the Indian agriculture sector. (250 words).