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food-processing-equipments
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Govt. boost in Food processing industry
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FDI to boost growth of Indian food-processing industry
The Indian food processing
industry is growing at an annual rate of 8% since 2006. According to Mr.
Rakesh Kacker (The Secretary, MoFPI-Ministry of Food Processing
Industry), the industry is outpacing the manufacturing sector. Today,
the Indian food processing industry has a valuation of Rs. 675, 00,000
lakhs, which is estimated to grow with a Compound Annual Growth Rate
(CAGR) of 10% and reach Rs. 10, 00, 00,000 lakhs by the year 2015.
According to an estimation, the
Indian food processing industry will continue to grow & occupy more
than 35% of the Indian food market in the year 2013-14.The industry is
segmented into various sectors viz. packaged foods, dairy products and
milk processing equipments such as bulk milk cooler, milk cream
separator, silos, softy ice-cream machine, etc.
grain, fruit and
vegetables, seafood, bakery & confectionery equipments such as
planetary mixer, spiral mixer, etc. beverages products such as
visicooler, supermarket multi-deck chiller, pulses and oilseeds
products, and meat & poultry. The classification is not unique,
since several processed products overlap in different segments.
The Indian food-processing
industry is moving ahead on spiral growth path. Immense changes are been
made on the supply-side to meet the increase in demand from the
consumers. The retail sector is more organized today and is growing due
greater flow of FDI in food processing industry. Besides this customers
now have access to new products, which were not available to them in the
past.
The Government of India has also
given a priority to all agro-processing businesses and has offered
incentives to mega food parks and cold storage facilities. Exports
benefits offered are also playing a crucial role in development of the
food processing sector. All these steps taken have boosted the growth of
this industry. However, there are a few major challenges, viz.
investments required at various links of the supply chain, research, lab
& land availability, technology up-gradation, increase in
farm-holding, skill enhancement training and integration of the cold
chain facilities.
The growth opportunities in this
industry are inspiring though. However, there still seems to be a
burning need for technology and productivity improvisation to compete on
a global scale. With the growth of our economy, the food processing
sector will offer greater chances to the new entrants as well as the
existing ones.
The Indian Government has also
come up with the Foreign Direct Investment (FDI) policy for the food
processing industry. To raise the inflow of FDI in this sector, the
Government had now allowed 100% FDI in all processed food items through
the automatic route. Hence, no approval is required now, and companies
are free to decide on their own. Also, total FDI inflow in the last
three years reveals an uneven scenario in this sector. It was Rs. 858
crores in the year 2010-11, Rs. 1314 crores in 2009-10 and Rs. 456
crores in the year 2008-09. Dr. Charan Das Mahant, the Minister of State
for Agriculture and Food Processing Industries, has stated that the FDI
will do the following:
a. Complement and supplement the domestic investments
b. Bring state-of-art technology and best managerial practices
Hence, increase in FDI inflow will
make available foreign technology to our domestic players. Moreover it
will facilitate seamless integration of the food processing industry
with the global market and empower the domestic players to leave their
mark on world map.
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