mobile
Food Processing
 
CII Media Releases
 
CII Welcomes the Government’s decision to permit 100% FDI for Trading, (including through e-commerce), in respect of Food Products Manufactured or Produced in India
Jun 21, 2016

The Government’s decision to permit 100% FDI under government approval route for trading, including through e-commerce, in respect of food products manufactured or produced in India will provide a major impetus to investments, employment and job creation in the Food processing industry in India, as per CII.

Welcoming the announcement, Mr Piruz Khambatta, Co-chairman of the CII National Committee on Food processing Industry, applauded the Hon’ble Minister for Food processing Industries, Ms Harsimrat Kaur Badal, and her team at the Ministry for having initiated this radical change for the development and growth of the Indian food processing industry.

According to Mr Khambatta, this policy announcement is aligned with the objective of the Government’s initiative on ’Make in India’ to facilitate ‘Ease of doing business’ with a thrust on ‘Minimum Government and Maximum Governance’.

India is the second largest producer of fruits and vegetables in the world. However, it has very limited integrated cold chain infrastructure and storage facilities, causing heavy losses to farmers in terms of wastage in quality and quantity of the fruits and vegetables. Along with it, this chain is highly fragmented, and thus, the perishable horticultural products find it difficult to link to far-away markets, including retail markets, round the year.

With 100 % FDI now to be allowed in marketing of food products produced and manufactured in India, it is expected that the farmers will also get better prices from the heavy reduction in post-harvest losses. It will also result in the strengthening of the backend infrastructure and lead to direct purchase by the retailers.

According to CII, the following positive outcomes are expected from the Government’s decision to permit 100% FDI under government approval route for trading, including through e-commerce, in respect of food products manufactured or produced in India : 

  •          First, FDI ushers in advanced technologies and expertise that augment the supply chain management of the recipient organisations.
  •          Second, the supply chain efficiencies will help reduce wastage, such as seen in fruits and vegetables production.
  •          Third, it will help government curb inflation and bring down the interest rates.
  •          Last, the farmer will be the main beneficiary of this initiative.

 

21 June 2016

New Delhi
Email to a friend   Print
Download CII App:
App Store Google Play