Food Processing Industry needs investment of Rs.1 lakh crore, Subodh Kant Sahai

Shri Subodh Kant Sahai, Hon’ble Minister of State for Food Processing Industries (Independent Charge) visited the USA during 31st May to 11th June, 2007. The Minister was accompanied by a delegation of ten members of Indo-American Chamber of Commerce, representing various sectors like food processing, packaging, organic foods, etc. The delegation members had business-to-business meetings at all the cities with potential US investors.

Food Processing Sector has been identified as the priority sector in India. The Vision Document adopted by the Government provides for an investment of about rupees one lakh crore, of which rupees ten thousand crore only is to come from the Government. There is, therefore, a need for larger private investment to establish adequate infrastructural facilities and supply chain for the food processing sector. The farmers are required to be linked to the market and they should start producing raw material for the use by the industry so that they are benefited with long term economic sustainability.

Keeping the above mission in view, the Minister had visited Washington, New York, Chicago, San Francisco and Los Angeles and interacted with the potential US investors for their investment in technology transfer, capacity building and creating infrastructural facilities / supply chain and quality control laboratories.

Shri Sahai met with the US Secretary for Agriculture Mr. Mike Johanns at Washington DC. Both the leaders discussed about the post-harvest and food processing initiatives in India and the India-US Agricultural Knowledge Initiative. Shri Sahai said that India is the largest producer of milk and second largest producer of fruits and vegetables. However, the food processing industry in India is at a nascent stage. Perishable food items in India have short shelf life and poor marketing facilities. The Honorable Minister said that the focus needed to be on areas of reducing post-harvest losses, building supply chain, cold chain, and developing linkages of farming to the processing industry. India-US Knowledge Initiative in Agriculture could play an important role in all these areas.

Shri Sahai suggested setting up a Joint Laboratory for SPS standards in India to facilitate trade in agricultural items as well as processed food. The Minister said that India would be interested in expanding trade and investment in those areas and would welcome technology transfer from US to India in the Food Processing sector. Shri Sahai further mentioned that Ministry of Food Processing Industry was in talks with Cornell University for providing technical support for setting up a National Institute of Food Technology, Entrepreneurship and Management (NIFTEM) in India.

As a goodwill gesture, the Minister presented a fresh consignment of Indian mangoes to the US secretary for Agriculture Mr. Mike Johanns.

A meeting was also held with senior officials of World Bank in Washington. The World Bank officials considered the food processing sector as one of their priority areas and expressed their willingness to extend their support for building up supply chain and other infrastructure projects in India.

Mr. Cal Dooley, President of the Association of Food Processing Companies has also met the Minister and discussed about investment of US companies in India. He is willing to visit India with a delegation consisting of representatives of US companies. Another large company in USA (M/s Tyson Company) dealing with poultry and meat processing has expressed keen interest to have joint venture with India for setting up / upgradation of abattoirs and poultry processing.

The Honorable Minister visited Chicago Board of Trade and addressed a series of Road Shows in New York, Chicago, San Francisco, and Los Angeles on the opportunities in the Food Processing Industry in India. The Road Shows were attended by US companies looking to invest in the sector in India. Representatives from companies like Pepsi, Hershey, Cargill, JP Morgan, P&G, Sara Lee etc. and many others participated in these meetings. In dairy sector, US investor has requested for specific requirement of supply of about one to two million litres of flavoured milk in tetra packs per month, for which availability of suitable Indian partners are being explored.

All the Investors’ Meet / Road Shows with US companies was organised by Mr.Ron Somers, President of US-India Business Council. Separately, meeting with Manhathan Chambers of Commerce was organised by Indo-American Chamber of Commerce.

The Minister had one-to-one meetings with major potential US investors seeking investment opportunities in the Food Processing Industries in India. Amy’s Foods, a San Francisco based organic and packaged food services company expressed intentions to set up and start operations in India. Melissa, a Los Angeles based company into food retailing and marketing in the US, which processes produce from the world over and is the principal supplier of Indian mangoes to US this year, is keen on entering India both for sourcing its supplies and to set up India operations. Mr.David Murdock, Chairman of Dole Company (operating in 19 countries), a Los Angeles based world leader in Food Processing Industry- building cold chain and supply chains and largest supplier of processed food, indicated their intent to enter India and start business operations. In Los Angeles, the owner of KENPO group of companies had met the Minister and expressed their intention to set up Mega Good Parks in India.

The Honorable Minister visited the WalMart distribution center at Pottsville, Pennsylvania, Robert Mondavi Winery at Napa Valley, California, the Culinary Institute of America at Helena, California, and Melissa’s World Variety Produce Inc.’s vegetables and fruits cold storage and distribution centre at Vernon, California and had discussions with the concerned professionals at these organizations regarding their participations and investment in India.

The visit of the Hon’ble Minister to USA has been successful in terms of generating interest amongst potential US companies for their investment in food processing sector in India. Further follow up action will be taken by the Ministry with the individual companies / investors to concretize their intent for investment in this sector in India.

Source : Press Information Bureau

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