NEW DELHI: Union minister for food processing industries Harsimrat Kaur Badal mentioned the federal government continues to be taking into consideration the inclusion of 25% home care and private care products in multi-brand food retail outlets owned by overseas corporations. She mentioned global corporations have dedicated a $10 billion funding in food processing, technology, cold chain and retail in the subsequent two years in the run-up to the World Food India event, a mega show of the Indian government scheduled for November Three-5 to draw overseas funding and create 1million jobs.
Badal mentioned overseas corporations comparable to Metro, Mountain Trail and Amazon, amongst others, have dedicated funding in food retail and that 100% overseas direct funding (FDI) in multi-brand retail of nonfood items was once by no means into account.
"As a policy, the BJP has been against multi-brand retail. But when I asked them to allow FDI in food retail, they agreed," she mentioned. "There's a lot of global interest in India, in sourcing from here. There's been a 40% increase in FDI from last year to this year. There's already $200 million that has come in this year."
The government allowed overseas corporations to arrange made-in-India food stores to spice up the agro-processing business but maximum massive global corporations have mentioned that they would also wish to promote some non-food items to make the industry viable.
Badal mentioned one of the most reasons for the sluggish growth of the food business is that it is more capital extensive than many other sectors. "Farmers don't have storage facilities and on top of that this industry is seasonal," she mentioned.
Speaking in regards to the upcoming event, she mentioned, "I have envisioned the World Food India event to double farmers' income, among other objectives. They need to move from just farming towards agro-processing, which is where the real future lies. This sector happens to be one of the highest generators of employment... India had not realised to what extent the world was looking at this country. The market that we offer is not available anywhere else on the globe... (it) has a $600 billion retail sector, of which 70% is food retail, which is set to treble by 2020."
The government has taken various policy choices to create the infrastructure and the surroundings the place this would possibly flourish during the last 3 years, she mentioned, atmosphere the context for the development. India must spouse with the best in the world as its processing functions surge.
"No one can afford to ignore this market. After Amazon has taken the lead, there is so much market potential— the early bird will catch the worm," she mentioned.
On the response of food and beverage corporations to well being issues, she mentioned, "Globally, companies are being forced to move towards health. The market trends are moving that way, and almost all firms are stepping up in that direction."
The food processing ministry, which fits intently with the ministry of well being, has made a number of modern adjustments in the sector along side the Food Standards and Safety Authority of India (FSSAI), she mentioned. "What happened was unfortunate for Nestle (when Maggi noodles was banned two years back), but the episode served a larger purpose — it acted as a trigger to improve systems at large. Individual ingredient approval was choking the market, for example. It highlighted a lot of discrepancies. The FSSAI has harmonised itself to global standards and a lot of progress has been made."
Badal mentioned overseas corporations comparable to Metro, Mountain Trail and Amazon, amongst others, have dedicated funding in food retail and that 100% overseas direct funding (FDI) in multi-brand retail of nonfood items was once by no means into account.
"As a policy, the BJP has been against multi-brand retail. But when I asked them to allow FDI in food retail, they agreed," she mentioned. "There's a lot of global interest in India, in sourcing from here. There's been a 40% increase in FDI from last year to this year. There's already $200 million that has come in this year."
The government allowed overseas corporations to arrange made-in-India food stores to spice up the agro-processing business but maximum massive global corporations have mentioned that they would also wish to promote some non-food items to make the industry viable.
Badal mentioned one of the most reasons for the sluggish growth of the food business is that it is more capital extensive than many other sectors. "Farmers don't have storage facilities and on top of that this industry is seasonal," she mentioned.
Speaking in regards to the upcoming event, she mentioned, "I have envisioned the World Food India event to double farmers' income, among other objectives. They need to move from just farming towards agro-processing, which is where the real future lies. This sector happens to be one of the highest generators of employment... India had not realised to what extent the world was looking at this country. The market that we offer is not available anywhere else on the globe... (it) has a $600 billion retail sector, of which 70% is food retail, which is set to treble by 2020."
The government has taken various policy choices to create the infrastructure and the surroundings the place this would possibly flourish during the last 3 years, she mentioned, atmosphere the context for the development. India must spouse with the best in the world as its processing functions surge.
"No one can afford to ignore this market. After Amazon has taken the lead, there is so much market potential— the early bird will catch the worm," she mentioned.
On the response of food and beverage corporations to well being issues, she mentioned, "Globally, companies are being forced to move towards health. The market trends are moving that way, and almost all firms are stepping up in that direction."
The food processing ministry, which fits intently with the ministry of well being, has made a number of modern adjustments in the sector along side the Food Standards and Safety Authority of India (FSSAI), she mentioned. "What happened was unfortunate for Nestle (when Maggi noodles was banned two years back), but the episode served a larger purpose — it acted as a trigger to improve systems at large. Individual ingredient approval was choking the market, for example. It highlighted a lot of discrepancies. The FSSAI has harmonised itself to global standards and a lot of progress has been made."
Food processing, retail will get $10 billion in FDI: Harsimrat Kaur Badal
Reviewed by Kailash
on
October 27, 2017
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