 "Allow FDI in multi-brand retail for food processed in India: Harsimrat Kaur Badal")
Harsimrat Kaur Badal, Minister for Food Processing Industries, has pitched for allowing FDI in multi-brand retail of food grown and processed in India to sell in the country and abroad. “Ministry has already written to Prime Minister for allowing 100-percent FDI in multi brand retail only for such food that is produced in India by the Indian farmers and food products that are manufactured by the manufacturers in India,” she said at a seminar on the food processing sector held in Mumbai on February 16, 2016 as a part on Make In India Week event.
India, which has the largest raw materials (agri-produce) base, has the potential to become the food factory for the world. However, food worth Rs 92,000 crore is wasted. “By allowing FDI, we can reduce food wastage. This will also help to modernise the Indian farmer with newer and efficient farming technologies. India can take its nascent levels of mere 10 percent in food processing to the next level of 30 percent,” said Harsimrat Kaur Badal.
She highlighted recent efforts by the government to encourage greater innovations and enable the ease of doing business through cheaper credit, identifying priority sector lending status for foods grown in India and others. According to her, the 42 proposed food parks will significantly impact food processing levels.
The food processing sector in India contributes as much as 11 per cent and 9 per cent of GDP in agriculture and manufacturing sector respectively. It is one of the largest industries in India, ranked fifth in terms of production, consumption, export and expected growth. Also, it is considered having huge potential for elevating agricultural economy, raising farmer’s income, generating employment and enhancing forex earnings.
Mentioning that there are great opportunities in online food retailing, Piruz Khambata, chairman, CII national committee on food processing & chairman & managing director, Rasna Private Limited, said, “There is vast untapped scope in organic foods and the need for terminal markets in food processing which will be key growth drivers of agricultural GDP.”
Rana Kapoor, MD & CEO, Yes Bank Ltd suggested developing brand India through foods that have specific geographic appellations which provide for traceability and trust factors that help identify foods belonging to particular countries, citing the recent popularity of the Kiwi fruit from New Zealand. According to him, India has untapped opportunities in horticulture and floriculture and leaves a lot to be done to effectively leverage its geographical and seasonal advantages.
India, which has the largest raw materials (agri-produce) base, has the potential to become the food factory for the world. However, food worth Rs 92,000 crore is wasted. “By allowing FDI, we can reduce food wastage. This will also help to modernise the Indian farmer with newer and efficient farming technologies. India can take its nascent levels of mere 10 percent in food processing to the next level of 30 percent,” said Harsimrat Kaur Badal.
She highlighted recent efforts by the government to encourage greater innovations and enable the ease of doing business through cheaper credit, identifying priority sector lending status for foods grown in India and others. According to her, the 42 proposed food parks will significantly impact food processing levels.
The food processing sector in India contributes as much as 11 per cent and 9 per cent of GDP in agriculture and manufacturing sector respectively. It is one of the largest industries in India, ranked fifth in terms of production, consumption, export and expected growth. Also, it is considered having huge potential for elevating agricultural economy, raising farmer’s income, generating employment and enhancing forex earnings.
Mentioning that there are great opportunities in online food retailing, Piruz Khambata, chairman, CII national committee on food processing & chairman & managing director, Rasna Private Limited, said, “There is vast untapped scope in organic foods and the need for terminal markets in food processing which will be key growth drivers of agricultural GDP.”
Rana Kapoor, MD & CEO, Yes Bank Ltd suggested developing brand India through foods that have specific geographic appellations which provide for traceability and trust factors that help identify foods belonging to particular countries, citing the recent popularity of the Kiwi fruit from New Zealand. According to him, India has untapped opportunities in horticulture and floriculture and leaves a lot to be done to effectively leverage its geographical and seasonal advantages.
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