The Hindu : Tamil Nadu News : “Indian food processing industry in a nascent stage”

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Saturday, Jun 14, 2008
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Tamil Nadu

Tamil Nadu

“Indian food processing industry in a nascent stage”

Special Correspondent

The Gross Domestic Product is low at 6.3 per cent

Food retail accounts for 26 per cent of India’s GDP
India in an ideal position to become a sourcing hub for food products

CHENNAI: The Indian food processing industry is still in a nascent stage and its contribution to the Gross Domestic Product (GDP) is low at 6.3 per cent.

The only way to move forward is to adopt cluster approach, said speakers at a seminar on “Prospects for Indian food processing industry” on Friday.

Tamil Nadu Small Industries Development Corporation (TANSIDCO) chairman and managing director D. Rajendran said that the share of India processed food in the international trade is only 1.6 per cent and concerted efforts should be made by the micro, small and medium enterprises (MSMEs) to achieve the growth target of 3 per cent by 2015.

When Mr. Rajendran urged TANSTIA-FNF Service Centre (TFSC) to form food clusters to take advantage of the retail boom in the country, TFSC officials suggested that it be set up at Thiruvarur and Mayiladuturai.

MVIRDC World Trade Centre, Mumbai, Deputy Director, Research, A.O. Kuruvilla said India’s food processing industry contribution to the GDP is low as against the U.K.’s at 8 per cent, Russia’s at 11-12 per cent, Iran’s at 14-16 per cent, Turkey’s at 18.5 per cent and Egypt’s at 18.6 per cent.

“Food retail accounts for 26 per cent of India’s GDP and is growing at a compounded annual growth rate of 7-8 per cent and is expected to touch 10 per cent in coming years. With a strong agricultural base, India is in an ideal position to take advantage of growing food trade business and become a sourcing hub for food products for other countries,” he added.

TANSTIA president A. Shanmugavelayuthan said that the Himachal Pradesh government concept should be adopted for preserving seasonal fruit like apple throughout the year.

Eye-opener

“It is an eye-opener and we should adopt such concepts to gain market share in the international market.”

Study released

Mr. Rajendran released a study on the present scenario of the processed food industry in India.

The study also deals with Agricultural Export Zones, Special Economic Zones, policy framework, export market, tariff structure, trade barriers, food and packaging regulations, competing nations and major importers.

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