By Ankush Chibber, 21-Jul-2011
The food processing industry in India will be forced to adopt new technologies and improve their productivity if the foreign direct investment into multi-brand retail is allowed.
According to the Associated Chambers of Commerce and Industry of India (ASSOCHAM), such investments into multi-brand retail would push the local food processing industry to be globally competitive.
Factors like an increasing urbanisation, changing lifestyles, more working women and increasing nutritional needs is boosting the domestic food retail market, making it attractive for foreign investment.
The body also said that the local food processing industry is expected to grow at compounded annual growth rate of nine per cent from US$120 bn in 2011 to US$200 bn by 2015 on the back of this rising demand.
However, for that to be accomplished, more would need to be done in terms of improving the processes in the food processing industry, which is able to process only seven per cent of the total agriculture produce processed in India.
“There exists a huge gap in agriculture output, post-harvest produce and processing,” said D S Rawat, the ASSOCHAM secretary general.
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