Govt mulls permitting sale of non-food items under FDI policy

The focus is to supply-chain related infrastructure, such as cold storage, abattoirs and food parks

The government will consider the demands made by foreign retailers for allowing non-food items such as home care products under the FDI policy, Union Minister Harsimrat Kaur Badal today said.

Last year, the government had allowed 100 per cent foreign direct investment (FDI) in marketing of food products which are produced and manufactured in India.

"Many big global retailers are keen to set up their stores in India after we allowed 100 per cent FDI in food processing sector. But they are demanding they should be allowed to sell non-food items such as home care products," Badal told PTI.

The Minister today held a meeting with representatives of 22 countries for inviting them to participate in World Food Fair to be organised here in October this year.

In the meeting, she said the representatives also sought that foreign retailers should be allowed to import food products for initial 6-8 months to test these items in Indian market before establishing manufacturing facility here.

Badal said she will take up the concerns of foreign retailers and all other stakeholders with Prime Minister's Office and other departments including DIPP.

Speaking on the upcoming global food fair, Badal said that countries like UAE have expressed their desire to be part of this event.

The Minister further said that she is aiming to make this event a global platform for all stakeholders of food industry with special focus being given to India.

At the meeting with ambassadors and High Commissioners of leading food processing and food retailing countries, Badal said: "Recently, the Government of India has allowed 100 per cent FDI in marketing of food products produced and manufactured in India. This initiative has opened up vast opportunities for international companies to invest in India in the food processing manufacturing, supply and marketing."

The focus is also being given to supply-chain related infrastructure, such as cold storage, abattoirs and food parks.

"The whole idea is to spur greater growth in the food processing sector and transform Indian food economy as well as connect farmers with the value chain to increase their returns," she said in an official statement.

The Minister invited the countries to partner with World Food India 2017 — a three day flagship event being organised by the Ministry of Food Processing Industries at New Delhi.

The event will focus on showcasing achievements and opportunities of the Indian Food Processing Sector and fostering maximum investment commitments.

The event will also provide a platform for exhibiting innovative products and manufacturing processes, showcasing the entire value chain of food processing industry with a vision to leverage innovation, technology, development and sustainability of the sector.