Food processing in India gets a fillip with burgeoning exports, backed by her sound agricultural base. Also, increased investments will make India a global hub for food exports.
The food processing industry of India is registering high growth with its exports taking a leap from 4.7 Billion Euros (US$ 6.7 Billion) in 2002-03 to 13.8 Billion Euros (US$ 19.65 Billion) in 2006-07. The Ministry of Food Processing Industries (MOFPI) is working to boosting India's stake in the international processed food business to 3% by 2015 from the current 1.6%, as reported by Newindpress.
Thanks to its sound agricultural base, India is poised to benefit from the burgeoning food trade. There is high scope for consolidation in the fragmented market, with most businesses registering good and continued returns. In fact, companies from this sector are recording higher growth than the home and personal care segment.
Middle East countries form the primary importers of Indian food stuff because of cheaper prices. Thus, they are the targeted market for 75% of India's food exports, including vegetables and fruits, confectionery, meat and dairy items.
Many countries are increasingly eying upon India for food. Recently, India has determined to export 6000 Metric Tons of rice to Sri Lanka at the behest of President Mahindra Rajapakse. Sri Lanka is undergoing a phase of high inflation due to increasing food prices, according to the news published by Commodityonline.
Even multinational companies are banking on India to meet global food needs today. Corporations and large investors, both domestic and global, are cashing in on India’s agribusiness as a promising market with dual prospects - to provide for the swelling Indian middle- class and export-oriented premium quality processed food.
Various measures like food parks, government subsidies, tax breaks, public-private partnerships in investment, increased FDI, modern retail structure, and strengthening supply-chain infrastructure, along with worldwide road shows have thrust the industry's growth.
According to a recent report "Indian Food and Beverages Forecast (2007-2011)" published by RNCOS, India's food-processing sector has undergone significant changes over the last six to seven years (2001-2006). The types, variety, quality, and presentation of products have all improved, mainly as a result of economic liberalization. The report augurs that the Indian food processing industry would witness a CAGR growth of 15% for the period spanning from 2007 to 2011.
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