MoFPI waits for nod on FDI in food retail paving way for $1 b investment
The ministry of food processing industries (MoFPI) is awaiting the cabinet nod for the note prepared…The ministry of food processing industries (MoFPI) is awaiting the cabinet nod for the note prepared by department of industrial policy & promotion (DIPP) to revive investment into the sector. According to sources in the ministry, the expected investment could reach $1billion in the next couple of years if the cabinet approves the decision.
“If the decision is implemented in next couple of months, it has the potential to reach $1billion in next couple of years that will change the whole dynamics of the food processing sector from farm to fork,” said a senior functionary of MoFPI.
The government has announced 100% FDI in marketing of food products produced and processed in India from current fiscal.
Further, besides FDI, the ministry is keeping a close watch on FSSAI, the apex food regulator, which in recent times has helped the food processing industry by several of its decisions like issuing the list of approved additives used in food processing sector after which the issue related to product approval has been solved more or less.
The ministry, meanwhile, in last two years, sanctioned 17 new food parks across the country and started the process to operationalise all 42 parks in the next two years. The aim was said to be doubling food processing in the country from the current level of 10%.
The ministry has also approved setting up of 30 new cold chains in the country. It is also learnt that the food processing sector has received $463 million worth of FDI during April-February of the last fiscal.
However, it would be interesting to see how the FDI policy sees the light of the day as the apex traders' body CAIT has opposed the proposal and threatened to agitate if the policy is adopted.