Fears Of Mnc Domination In Food Sector Allayed

The study cited the experience in certain developed economies of the world to buttress the argument. However, it is necessary for the Indian government to come up with a set of fresh legislations and also reduce and rationalise the duty and taxation structure to invite more investment to the area, it added.

In his presentation at a meeting organised by CII on the progress made on the study so far, McKinsey & Co Inc principal Kito de Boer said there is a need to dispel the myth that MNCs tend to dominate the food processing industry.

In Europe, the top 10 companies in the field control only 16 per cent of revenue. In fact, Nestle controls only one per cent of revenue from the industry in Europe. In Indonesia, over 75 per cent of the market is controlled by the local players, he pointed out.

Charoen Popkhan, a leading domestic conglomerate of Thailand had made its start from chicken processing and is today a significant exporter to China. This indicates the tremendous scope that the industry offers to the local manufacturers.

He, however, expressed concern that most people in India do not find investments in the sector attractive and major business houses stayed away from it owing to the draconian legislations in place for this sector.

Clearly, the biggest burden on the food processing industry is on account of the level of excise duty and tax structure