<p>The Modi government hopes that easing of FDI in the trading of food products could boost the country’s food processing sector. <br /><br />Prime Minister Narendra Modi on Monday allowed 100% Foreign Direct Investment in trading of food products, including through e-commerce, with regard to the products manufactured and produced in the country. <br /><br />The announcement is seen as a fine-tuning of the food processing ministry’s proposal to allow 100% FDI in food retail. It would insist on investments in farm infrastructure such as cold storage, refrigerator trucks and processing plants.<br /><br />According to a government study, 16% of the total fruits and vegetables produced in the country go waste every year due to a lack of food processing capacities. <br />It pegged the food wastage at Rs 92,000 crore annually.</p>.<p><br />“The changes in the FDI policy will ensure more investment in infrastructure creation and employment generation,” Food Processing Minister Harsimrat Kaur Badal said. <br />The minister had earlier mooted that at least 25% of the total FDI in food retail should be dedicated to the creation of infrastructure.<br /><br />More investments in food processing could also help rein in galloping prices of kitchen staples like tomatoes and onions and fruits. <br /><br />“If you want to enjoy vegetables during the off season as well, you should be ready for processed food. We need more investments in this sector,” Minister of State for Agriculture Sanjeev Balyan said.<br /><br /></p>
<p>The Modi government hopes that easing of FDI in the trading of food products could boost the country’s food processing sector. <br /><br />Prime Minister Narendra Modi on Monday allowed 100% Foreign Direct Investment in trading of food products, including through e-commerce, with regard to the products manufactured and produced in the country. <br /><br />The announcement is seen as a fine-tuning of the food processing ministry’s proposal to allow 100% FDI in food retail. It would insist on investments in farm infrastructure such as cold storage, refrigerator trucks and processing plants.<br /><br />According to a government study, 16% of the total fruits and vegetables produced in the country go waste every year due to a lack of food processing capacities. <br />It pegged the food wastage at Rs 92,000 crore annually.</p>.<p><br />“The changes in the FDI policy will ensure more investment in infrastructure creation and employment generation,” Food Processing Minister Harsimrat Kaur Badal said. <br />The minister had earlier mooted that at least 25% of the total FDI in food retail should be dedicated to the creation of infrastructure.<br /><br />More investments in food processing could also help rein in galloping prices of kitchen staples like tomatoes and onions and fruits. <br /><br />“If you want to enjoy vegetables during the off season as well, you should be ready for processed food. We need more investments in this sector,” Minister of State for Agriculture Sanjeev Balyan said.<br /><br /></p>
