Required Report - Public distribution

**Date:** 10/1/2007

**GAIN Report Number:** IN7095

IN7095

**India**

**Exporter Guide**

**Annual**

**2007**

**Approved by:**

![](media/image1.wmf)Holly Higgins

U.S. Embassy

**Prepared by:**

A. Govindan

**Report Highlights:**

Growth opportunities for U.S. high-value agricultural product exports to
India include a large and growing consumer middle class, the steady
transformation of the retail food sector, the entrance of large Indian
conglomerates in food retailing, the growing number of fast food chains
and luxury hotels, increasing exposure to American products and
lifestyle, increasing urbanization, and a growing food processing
industry looking for imported food ingredients. However, high tariffs,
dated food laws, unwarranted sanitary and phytosanitary restrictions,
combined with poor infrastructure and restrictions on foreign direct
investment in food retailing continue to temper prospects.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

New Delhi \[IN1\]

\[IN\]

**Table of Contents**

[**SECTION I: MARKET OVERVIEW 3**](#section-i-market-overview)

[SECTION II: EXPORTER BUSINESS TIPS
5](#section-ii-exporter-business-tips)

[A. Food Preferences 5](#a.-food-preferences)

[B. Shopping Habits 5](#b.-shopping-habits)

[C. Distribution Systems 6](#c.-distribution-systems)

[D. Infrastructure 6](#d.-infrastructure)

[E. Finding a Business Partner 6](#e.-finding-a-business-partner)

[F. Advertising and Sales Promotion
7](#f.-advertising-and-sales-promotion)

[G. Business Etiquette 7](#g.-business-etiquette)

[H. Import Duties 8](#h.-import-duties)

[I. Food Laws 9](#i.-food-laws)

[SECTION III: MARKET SECTORS: STRUCTURE AND TRENDS
9](#section-iii-market-sectors-structure-and-trends)

[A. Food Retail 9](#a.-food-retail)

[B. Food Service 10](#b.-food-service)

[C. Food Processing 11](#c.-food-processing)

[SECTION IV: BEST HIGH-VALUE PRODUCT PROSPECTS
13](#section-iv-best-high-value-product-prospects)

[SECTION V: KEY CONTACTS AND FURTHER INFORMATION
15](#section-v-key-contacts-and-further-information)

[APPENDIX I: STATISTICS 16](#appendix-i-statistics)

[Table A: Key Trade & Demographic Information
16](#table-a-key-trade-demographic-information)

[Table B: Consumer Food & Edible Fishery Product Imports to India
17](#table-b-consumer-food-edible-fishery-product-imports-to-india)

[Table C: Top 15 Suppliers to India of Consumer Food & Edible Fishery
Products
18](#table-c-top-15-suppliers-to-india-of-consumer-food-edible-fishery-products)

[SECTION VI: OTHER RELEVANT REPORTS
19](#section-vi-other-relevant-reports)

# SECTION I: MARKET OVERVIEW

India is a country of striking contrasts and enormous ethnic,
linguistic, and cultural diversity. Its landmass is roughly one-third
the size of the United States, it has a population of over 1.1 billion,
and it is comprised of 29 states and six Union Territories (under
federal government rule). The states differ vastly in resources,
culture, food habits, living standards, and languages. Vast disparities
in per-capita income levels exist between and within India's states.
About 75 percent of the country's people live in its 550,000 villages,
the rest in 200 towns and cities. There are 27 cities with a population
above one million people.

India has a large number of poor people, with 34.7 percent of the
population surviving on less than \$1 per day, and 79.9 percent of the
population surviving on less than \$2 per day[^1]. Nearly 51 percent of
Indians' consumption expenditures go for food (54 percent in rural areas
and 42 in urban areas)[^2]; mostly for basic items like grains,
vegetable oils, and sugar; very little goes for value added food items.
In recent years, however, there has been an increased shift towards
vegetables, eggs, fruits, meat, and beverages. Religion has a major
influence on eating habits and, along with low purchasing power,
supports a predominantly vegetarian diet.

Despite the many challenges, some observers of India's economic scene
are optimistic about consumption growth potential, and believe that
rising income levels, increasing urbanization, a changing age profile
(more young people), increasing consumerism, a significant rise in the
number of single men and women professionals, and the availability of
cheap credit will push India onto a new growth trajectory. These
segments of the population are aware of quality differences, insist on
world standards, and are willing to pay a premium for quality.
Nonetheless, a major share of Indian consumers has to sacrifice quality
for affordable prices. Potential U.S. exporters should also bear in mind
that India's diverse agro-industrial base already offers many items at
competitive prices.

A recent McKinsey Global Institute study[^3] shows that as Indian
incomes rise, the shape of the country's income pyramid will also
change. Average real household disposable income will grow from Rs.
113,744 in 2005 to Rs. 318,896 by 2025, creating a 583 million -- strong
middle class, which include both *seekers* (with real annual household
disposable income of \$4,380 to \$10,940 or \$23,530 to \$58,820 at
purchasing power parity (ppp) basis) and *strivers* (with real annual
household disposable income of \$10,940 to \$21,890 or \$58,820 to
\$117,650 on ppp basis. Households with real earnings of more than
\$21,890 (\$117,650 on ppp basis classified as *global*) will comprise
of two percent of the population. Furthermore, middle-class growth will
spread beyond top-tier cities to middle tier and smaller cities.
Although the share of food, beverages, and tobacco will still be the
highest category of Indian spending, its share will drop from the
present 42 percent to 25 percent by 2025. According to the study, the
upcoming changes in the Indian consumer market will cerate major
opportunities and challenges for Indian and multinational companies
doing business in India.

On the demographic front, sixty-five million people are expected to
enter the 20-34 year age group from 2001 to 2010. By 2025, 40 percent of
Indians are expected to be urban dwellers.

Structural reforms and stabilization programs during the 1990s have
contributed to India's sustained economic growth, which has been
relatively strong over the past five years, averaging 6.8 percent
annually. Since 1996, the Indian government has gradually lifted
import-licensing restrictions, which had effectively prohibited imports.
On April 1, 2001, all remaining quantitative restrictions were removed,
putting India in compliance with its WTO commitment. Nonetheless, the
government continues to discourage imports, particularly agricultural
products, with the use of high tariffs and non-tariff barriers. Import
tariffs on most consumer products, although declining, are still high,
ranging from 36.1 percent to 59.1 percent. Some sensitive items, such as
alcoholic beverages, poultry meat, raisins, vegetable oils, rice, etc.,
attract much higher duties. Non-tariff barriers include unwarranted
sanitary and phytosanitary restrictions and onerous labeling
requirements for pre-packaged foods. However, on a positive development,
the Ministry of Environment and Forests recently exempted production,
importation, and marketing of processed food products derived from
biotech products from seeking approval from the Genetic Engineering
Approval Committee, which could be beneficial to importers of processed
food products which may be derived from biotech products. Other factors
adversely affecting imports include a poorly developed infrastructure
(transportation and cold chain), a predominantly unorganized retail
sector, and outdated food laws. However, some positive factors are:

> ![](media/image2.png){width="0.15625in" height="0.15625in"} Rising
> disposable income levels
>
> ![](media/image2.png){width="0.15625in" height="0.15625in"} Increasing
> urbanization and exposure to Western culture
>
> ![](media/image2.png){width="0.15625in" height="0.15625in"} Growing
> health consciousness among the middle class
>
> ![](media/image2.png){width="0.15625in" height="0.15625in"}
> "Aspirational" lifestyles
>
> ![](media/image2.png){width="0.15625in" height="0.15625in"} Changing
> age profile
>
> ![](media/image2.png){width="0.15625in" height="0.15625in"} Increasing
> availability of cheap consumer credit
>
> ![](media/image2.png){width="0.15625in" height="0.15625in"} Enacting
> of an integrated food law
>
> ![](media/image2.png){width="0.15625in" height="0.15625in"} Increasing
> Indian conglomerates' interest in food retailing

+----------------------------------+-----------------------------------+
| **Advantages**                   | **Challenges**                    |
+----------------------------------+-----------------------------------+
| > ![](m                          | > ![](                            |
| edia/image3.png){width="0.125in" | media/image3.png){width="0.125in" |
| > height="0.125in"} Large and    | > height="0.125in"} Divergent     |
| > growing middle class           | > food habits                     |
+----------------------------------+-----------------------------------+
| > ![](m                          | > ![](                            |
| edia/image3.png){width="0.125in" | media/image3.png){width="0.125in" |
| > height="0.125in"} Increasing   | > height="0.125in"} Preference    |
| > exposure to American products  | > for fresh products and          |
| > and lifestyle                  | > traditional foods               |
+----------------------------------+-----------------------------------+
| > ![](m                          | > ![](                            |
| edia/image3.png){width="0.125in" | media/image3.png){width="0.125in" |
| > height="0.125in"} A slow but   | > height="0.125in"} Difficulties  |
| > steady transformation of the   | > in accessing vast untapped      |
| > retail food sector in cities   | > rural markets                   |
+----------------------------------+-----------------------------------+
| > ![](m                          | > ![](                            |
| edia/image3.png){width="0.125in" | media/image3.png){width="0.125in" |
| > height="0.125in"} Growing      | > height="0.125in"} Poor          |
| > number of fast food chains     | > infrastructure                  |
+----------------------------------+-----------------------------------+
| > ![](m                          | > ![](                            |
| edia/image3.png){width="0.125in" | media/image3.png){width="0.125in" |
| > height="0.125in"} Increasing   | > height="0.125in"} Diverse       |
| > urbanization and growing       | > agro-industrial base offering   |
| > number of working women        | > many products at competitive    |
|                                  | > prices                          |
+----------------------------------+-----------------------------------+
| > ![](m                          | > ![](                            |
| edia/image3.png){width="0.125in" | media/image3.png){width="0.125in" |
| > height="0.125in"} A growing    | > height="0.125in"} High tariffs, |
| > food processing industry       | > dated food laws, and            |
| > looking for imported food      | > unscientific sanitary and       |
| > ingredients                    | > phytosanitary restrictions      |
+----------------------------------+-----------------------------------+
| > ![](m                          | > ![](                            |
| edia/image3.png){width="0.125in" | media/image3.png){width="0.125in" |
| > height="0.125in"} Improved     | > height="0.125in"} Competition   |
| > Indo-U.S. political relations  | > from countries with better      |
|                                  | > geographic proximity            |
+----------------------------------+-----------------------------------+

# SECTION II: EXPORTER BUSINESS TIPS

## A. Food Preferences

India is well known for its tradition of vegetarianism. Among those who
are not vegetarians, beef is still generally taboo to most Hindus (80.5
percent of the population), Sikhs (1.9 percent of the population), and
Jains (0.4 percent of the population), all of whom consider cows sacred.
Many Indians are vegetarians because they cannot afford a non-vegetarian
diet. As India has been at the crossroads of many peoples and cultures
over the centuries, some foreign elements have invariably seeped into
the local culinary culture. Thus, India's culinary tradition is
constantly changing. Nonetheless, Indians have a strong preference for
fresh products and traditional spices and ingredients, which has
generally slowed the penetration of American and other Western-type
foods. However, with urbanization, rising incomes, more working women,
the arrival of some agribusiness multinationals, and a proliferation of
fast food outlets, the acceptance of packaged and ready-to-eat food
products is increasing, especially among the urban middle class. These
products, nonetheless, are usually tailored to Indian tastes. Many
Indians are quite willing to try new foods, but usually return to
traditional fare. While Western foods have a reasonably good chance of
succeeding in casual dining, integrating them into the main family meal
will be more difficult.

Demand for specialty and high-value food items, including those
imported, such as chocolates, dry fruits (almonds, cashews, pistachios,
etc.), cakes, pastries, exotic fruits, and fruit juices, typically peaks
during the fall festive season, especially at *Diwali* -- the Festival
of Lights. Hence, from October to December is the best time to introduce
new food products into the Indian market.

Typical imported food items that can be spotted in retail stores in
cities include chocolates and chocolate syrups, biscuits, cake mixes,
fruit juices, canned soups, pastas, popcorn, potato chips, canned fish
and vegetables, ketchup, breakfast cereals, and fresh fruits such as
apples, pears, grapes, and kiwis.

## B. Shopping Habits

Lacking home refrigeration and purchasing power, most Indians shop daily
at neighborhood *kirana* shops (small retail outlets) or roadside
vendors. Most consumers regard shopping as a chore, and few are familiar
with alternatives to traditional formats. Convenience to one's home is
important, since daily shopping and sensitivity to food freshness is an
integral part of shopping habits. Indians buy fruits and vegetables in
one shop, dairy products in another, groceries in a third, and meat and
fish in yet another. Quality is important, but there is a reluctance to
pay a premium. Trust in the retailer, especially with regard to quality
of food and replacement of defective goods, is important. Although added
services such as home delivery are welcome, consumers are unwilling to
(and do not have to) pay a premium for this service. Women do most of
the shopping and make most of the food purchasing decisions. Households
able to afford Western imports usually have servants who buy, clean, and
prepare foods. Availability of many fresh foods, particularly fruits and
vegetables, is seasonal, and people are accustomed to adjusting their
diet to the season.

Processed/packaged foods in great demand include ketchup and sauces,
jams and jellies, table butter and *ghee* (melted butter), cooking oils,
various *masalas* (spice mixes), pickles, wheat flour, noodles, snack
foods (mostly Indian types), and health drinks. Most packaged food items
are sold in small containers, due to customers' limited purchasing
power. Only in the past few years have Indians, mostly in cities, been
exposed to supermarkets in the Western sense. Semi-urban,
non-metropolitan, and rural areas have yet to feel the impact of
large-scale retailing. Most people, even in cities, still associate
supermarkets with "expensive" rather than "cost effective." However, in
recent years, the "Shopping Mall" culture has caught on in India, with
many large malls being built in large cities and suburbs. Modern
supermarkets are often anchor stores in large urban malls.

## C. Distribution Systems

Domestic consumer goods are distributed through a multi-level
distribution system. With the cost of establishing warehouses nearly
prohibitive, clearing and forwarding agents (CFAs) are fast becoming the
norm. Typically, the CFAs transport merchandise from the factory or
warehouse to "stockists" or distributors. While the CFAs do not take
title to the product, they receive 2 to 2.5 percent margins, then
invoice the stockists, and receive payment on behalf of the
manufacturer. The stockists have exclusive geographical territories and
a sales force that calls on both the wholesalers and on large retailers
in urban areas. They usually offer credit to their customers and receive
margins in the range of 3 to 9 percent. The wholesalers provide the
final link to those rural and smaller retailers who cannot purchase
directly from the distributors. Sales to these retailers are typically
in cash only and the wholesalers receive a margin of 2 to 3 percent.
Margins for retailers range from 5 to 15 percent, and the total cost of
the distribution network represents between 10 and 20 percent of the
final retail price.

Most imported food products are transshipped through regional hubs such
as Dubai and Singapore, due to their more liberal trade policies and
efficient handling facilities. Major importers are located in Mumbai,
Delhi, Bangalore, Kolkata, and Chennai. Although a large share of
imported foods enter India through illegal smuggling, regular imports
are also increasing in volume and value. Under-invoicing is a commonly
used practice to lessen the burden of high import tariffs.

## D. Infrastructure

With a coastline of nearly 4,000 miles, India has 11 international and
139 minor ports. The international ports are Kandla, Mumbai, Mundra,
Jawaharlal Nehru, Cochin, Murmagoa, and New Mangalore on the west coast,
and Chennai, Tuticorin, Vizagh, Paradeep, and Kolkata on the east coast.
Container handling facilities are available at most major ports and in
several major cities. India has a vast railway network connecting most
major cities and towns. Refrigerated warehousing and transportation
facilities are limited and costly, resulting in high storage losses in
perishable food items. An inadequate and erratic electric power supply
constrains cold chain development. Whereas infrastructure projects were
previously reserved for the public sector, private investors are now
being encouraged to participate in developing roads, markets and
transportation links. Telecommunications, in particular, is benefiting
from privatization and strong foreign investor interest. The pace is
much slower, however, for power generation, roads, and other
infrastructure needs, where the returns on investment take longer to
materialize.

## E. Finding a Business Partner

It is essential to survey existing and potential markets for products
before initiating export sales to India. Market research firms in India
can assist new exporters. If aspiring U.S. companies have products with
promising sales potential in India, they can either set up a base in
India or appoint a distributor or an agent. If possible, setting up a
base is preferable, because Indians like to see foreign companies
investing in their country rather than only selling from abroad.
Generally speaking, U.S. companies should avoid the temptation to
establish a relationship with an agent/distributor merely because he/she
is the most persistent suitor. Consider the following before selecting
an agent/distributor:

-   Determine who their potential customers are, and where in India
    these customers are located, through surveys.

-   Recognize that agents with fewer principals and smaller set-ups
    often are more adaptable and committed than those with a large
    infrastructure and established reputations.

-   There may be a conflict of interest where the potential agent
    handles similar product lines, as many agents do.

-   U.S. firms should examine all distributor prospects, and thoroughly
    research the more promising ones. Check the potential agent's
    reputation through local industry/trade associations, potential
    clients, bankers, and other foreign companies/missions.

Franchising is another way of introducing Western products. Companies
with franchises in the food sector in India include McDonalds, KFC,
Domino's Pizza, Baskin Robbins, Wimpy's, TGIF, Ruby Tuesday, and Pizza
Hut. Indian companies with strong brand recognition also franchise.
Direct marketing, although becoming more popular, is still limited.

## F. Advertising and Sales Promotion

Advertising and trade promotion are highly developed in India, and most
major U.S. advertising firms choose local partners, as they know India
and Indians well. In addition to government-controlled television in
various regional languages, there are several popular national,
international, and regional privately-owned channels. Most urban
households have televisions, and they are increasingly present in rural
areas.

India also has a diverse and growing number of newspapers and glossy
magazines appealing to various social, cultural, and gender groups.
According to the National Readership Survey 2006[^4], the reach of the
press medium (dailies and magazines combined) has increased to 222
million people in 2005 (110 million rural and 112 million urban) from
216 million a year ago. Satellite television has grown explosively to
reach 230 million people. Radio's reach has increased from 23 percent of
the population to 27 percent, with FM radio driving this growth. The
Internet as a medium grew from 7.2 million users who logged in every
week in 2005 to 9.4 million in 2006. Among the fast growing tribe of
mobile phone owners, 22 million people access value-added features like
downloads, news, SMS, etc.

Delhi's Annual Food Exposition
[AAHAR[^5]](http://www.aaharindia2006.com/), and smaller food shows in
Delhi and other cities (IFE India, Agro Tech) provide opportunities for
U.S. exporters to showcase their food products to potential clients.

## G. Business Etiquette

Although Hindi is India's leading national language, almost all Indian
officials and business people have an excellent command of English. Most
Indian businessmen have traveled abroad and are familiar with Western
culture. Indians appreciate punctuality, but don't always practice it
themselves. Keep your schedule flexible enough for last minute
rescheduling of meetings. Business is not conducted during the numerous
religious holidays that are observed throughout the many regions and
states of India. Verify this information with the Consulate or Embassy
before scheduling a visit. Indian executives prefer late morning or
afternoon appointments between 11:00 a.m. and 4:00 p.m. Indians often
have longer meetings, so be sure to leave plenty of time between
appointments.

The climate in India can be very hot, so it is advisable to wear
lightweight clothing to avoid discomfort. Men should wear a jacket and
tie (and women should wear corresponding attire) when making official
calls or attending formal occasions. Always present a business card when
introducing yourself. Refer to business contacts by their surname,
rather than by their given name. Use courtesy titles such as "Mr.",
"Mrs.", or "Miss." Talking about your family and friends is an important
part of establishing a relationship with those involved in the business
process. Hospitality is a key part of doing business in India; most
business discussions will not even begin until "chai" (tea), coffee, or
a soft drink is served and there has been some preliminary "small talk."
To refuse any beverage outright will likely be perceived as an insult.
While an exchange of gifts is not necessary, most businessmen appreciate
token momentos, particularly if they reflect the subject under
discussion. Business lunches are preferred to dinners. Try to avoid
business breakfasts, especially in Mumbai. The best time of year to
visit India is between October and March, so that the seasons of extreme
heat and rains can be avoided. Although Delhi (the capital) has a cool,
pleasant winter (November - February), summers (April --June) are fierce
with temperatures of up to 120 degrees Fahrenheit. Mumbai (the business
hub) and most other major cities have a subtropical climate -- hot and
humid year around. Most Indian cities have good hotels and are well
connected by domestic airlines.

The following websites were found to be informative and user-friendly in
providing information on Indian business culture and business
etiquettes. These websites are mentioned for readers' convenience;
USDA/FAS does **NOT** in any way endorse, guarantee the accuracy of, or
necessarily concur with the information contained in the below sites:

<http://stylusinc.com/business/india/cultural_tips.htm>

[www.executiveplanet.com/index.php?title=India](http://www.executiveplanet.com/index.php?title=India)

## H. Import Duties

Imports into India are subject to a high and confusing array of duties,
which include the following: a \"basic\" duty, an Additional Duty (AD),
also known as "Countervailing Duty (CVD)," and an Education Cess (a
special surcharge on all direct and indirect taxes at 2 percent
introduced in the July 8, 2004 Budget, which was increased to 3 percent
in the 2007 Budget). A special Countervailing duty (SCVD) of 4 percent
was introduced in the 2005 GOI Budget on all imports (agricultural and
non-agricultural) with a few exceptions. This was done to account for
the VAT and other taxes applicable only to domestic products.
Agricultural products exempted from the CVD include fresh vegetables and
fruits, seeds, raw wool, poultry and cattle feed, pulses, rice, wheat,
and coarse grains.

The basic duty on most processed food products is 30 percent. Exceptions
in the agriculture/food group include "sensitive" items such as wine,
liquor, poultry meat, wheat, rice, corn, coffee, tea, vegetable oils,
cigarettes and tobacco, and several dairy products, which attract much
higher basic duties. The CVD equals the excise duty on similar products
produced domestically (16 percent on most consumer food products), and
is levied on the total of the assessed value plus the basic duty. The
calculation of the CVD on packaged goods is based on the Maximum Retail
Price (MRP), minus the abatement notified for similar domestic goods in
India, which makes the calculation more difficult. Total import tariffs
on most consumer food products range from 36.1 percent to 59.1 percent.

## 

## I. Food Laws

Food exporters will have to grapple with India's varied and outdated
food sector laws, particularly those pertaining to the use of additives
and colors, labeling requirements, packaging, weights and measures,
shelf-life, and phytosanitary regulations. Following the removal of
quantitative restrictions on imports of food products in 2001, the GOI
issued several notifications to make imported food products comply with
domestic laws. Details on India's food laws are available in our ["Food
and Agricultural Import Regulations and Standards Country Report 2007"
(IN7068)](#IN7068), which can be accessed via the FAS/USDA website:
[www.fas.usda.gov](http://www.fas.usda.gov/). On August 24, 2006, the
GOI notified, in the official gazette, the Food Safety and Standards
Act, 2006 to bring about an integrated food law. The implementation of
the new Act is reportedly in progress although it is not yet clear
exactly when it would come into force.

Some of the major food laws affecting Indian food importers are:

> ![](media/image3.png){width="0.125in" height="0.125in"} **The
> Prevention of Food Adulteration (PFA) Act, 1954,** and **PFA Rules of
> 1955,** as amended. This is a basic statute established to protect
> consumers against adulterated foods, and it encompasses food colors
> and preservatives, pesticide residues, packaging, labeling, and
> regulation of sales. This is similar to the Federal Food, Drug, and
> Cosmetics Act of the United States' Food and Drug Administration.
> Standards and regulations of the PFA apply equally to domestic and
> imported products. The PFA Act and Rules, and recent notifications are
> available at: <http://mohfw.nic.in/pfa.htm>
>
> ![](media/image3.png){width="0.125in" height="0.125in"} **The
> Standards of Weights and Measures Act, 1976**, and the **Standards of
> Weights and Measures (Packaged Commodities) Rules, 1977**, as amended.
> This Act established standards for weights and measures to regulate
> interstate trade and commerce in goods that are sold or distributed by
> weight, measure, or number. The Rules formed under the Act require
> labeling regarding the nature of the commodity, the name and address
> of the manufacturer, quantity, date of manufacture, best-before date,
> and the MRP. These labeling requirements apply equally to imported and
> domestic packaged foods.
>
> ![](media/image3.png){width="0.125in" height="0.125in"} **The Plant
> Quarantine (Regulation of Import into India) Order, 2003, and
> amendments**. These legislative measures regulate imports of planting
> seeds and agricultural products into India. These can be accessed
> from:
> [www.plantquarantineindia.org/PQO_amendments.htm](http://www.plantquarantineindia.org/PQO_amendments.htm)

# 

# SECTION III: MARKET SECTORS: STRUCTURE AND TRENDS

## A. Food Retail

Food retailing in India is largely unorganized, mostly resulting from
the sheer size of the country, its regional diversity, and the fairly
limited infrastructure support. According to some experts, food and
beverage retailing in India has market sales of over \$168 billion
(Source: Technopak), of which the organized retail sector has been able
to capture only a fraction of a percent. India has very few hypermarkets
in the Western sense of the word, and few supermarkets. While several
larger stores and specialty shops in major cities cater to the less
price sensitive, wealthy segment of the population, virtually all other
retailers are small, independent, owner-managed grocery stops (mainly
"Mom & Pop" or, more accurately, "Pop & Son" stores). Most of these
outlets have very basic offerings, fixed prices, no information
technology, and a poor, crowded ambience.

Supermarkets are a recent phenomenon in India. Those in existence are
basically larger grocery and convenience stores located in and around
major cities. These "Indian supermarkets" are typically 3,000 to 5,000
square feet, and are self-service stores stocked with a wide range of
Indian and, more recently, imported groceries, snacks, processed food,
confectionary, personal hygiene, and cosmetic products. Imported items
in the supermarkets consist mainly of almonds and other dry fruits,
fruit juices, ketchup, chocolates, sauces, specialty cheese, potato
chips, canned fruits/vegetables, cookies, and cake mixes. These shops
generally are open from 9:30 a.m. to 7:30 p.m., six days a week. They
stock most national brands, regional and specialty brands, and sometimes
their own brand of packaged dry products, and some international brands.
Many have a small bakery/confectionary section, and some have fresh
produce and dairy products. A few sell small quantities of frozen foods,
as cold storage availability is limited and the electric power supply is
erratic. A typical supermarket carries about 6,000 stock-keeping units.
Most, however, have no item-based inventory control. Their margins
typically range from 14 to 16 percent. These higher margins are largely
due to the ability to get somewhat better prices from suppliers on bulk
purchases, and from the ability to generate income from selling
advertising space and special in-store promotions to manufacturers.

There are only a few multi-unit supermarket chains in India. Most Indian
supermarkets cater to the segment of the population that seeks wider
selection and has financial means, storage space (including
refrigerators), and their own transportation. Although the exact size of
this population segment is not available, roughly 20 percent of the
urban population is estimated to shop in these supermarkets, and this
percentage is growing.

In recent years, larger discount stores/hypermarkets (with floor area of
25,000 -- 100,000 square feet) are being set up in major metropolitan
cities, offering increased value to price-conscious middle income
consumers. Large Indian corporate groups such as Reliance, ITC, Birla,
Tata and Bharti have entered or are planning to enter into retailing.
The government has not yet made a decision on foreign direct investment
in the retail sector, but a lively debate rages within Indian political
and economic spheres.

The concept of shopping malls and hypermarkets are beginning to take
shape in India's major cities. Space and cost constraints are prompting
shopping areas to move to city suburbs. Proliferation of shopping malls
in the major cities is revolutionizing the way the Indian middle class
shop. For a detailed report on the [Indian retail sector, please see
Post's GAIN report IN6111](#IN6111). Also please refer - "India: Road to
Success" -- a report prepared by the Florida Department of Agriculture
(<http://app2.florida-agriculture.com/pubs/pubform/pdf/India_Road_To_Success.pdf>)

Convenience stores at petrol pumps (gas stations), which sell all sorts
of "impulse buys" like chocolates, soft drinks, cakes and cookies,
potato chips, etc., have made some inroads in major metropolitan areas.

## B. Food Service

India has some excellent hotel chains, including Indian Hotels Ltd. (Taj
Group); East India Hotels Company Ltd. (Oberoi Group); ITC Ltd. (Welcome
Group); Asian Hotel; and Leela Venture. Several international chains
such as Radisson, Best Western, Hilton, Marriott, Country Inn and Suites
By Carlson, and Quality Inn have also established a presence through
franchising. The premium segment (including 5 star deluxe and 5 star
hotels) dominates the hotel business in India and accounts for roughly
65 percent of total revenues to the industry. Hotels in this segment are
concentrated in major metropolitan cities such as New Delhi, Mumbai,
Chennai, Bangalore, Hyderabad, and Kolkata, and are now spreading to
middle-tier cities and along major tourist circuits. Most of the 5-star
business is generated from business travelers, and most of those are
international. The mid-market segment (comprised of 3 and 4 star hotels)
caters to a mix of business and leisure travelers and is mostly
concentrated in second-tier cities and in major tourist locations. The
budget segment (2 star ratings or below) is present in most towns and
cities and places of tourist interest.

Premium and mid-market hotels source their food and beverage imports
mostly through their agents who work with consolidators located in
Dubai, Amsterdam, Singapore, and Australia. Because of the high freight
costs and small quantities involved, very little is directly imported
from the United States. While leading hotels appreciate the excellent
reputation of U.S. food products, the higher cost is a constraint.
Nevertheless, the Indian hotel and tourism sector (which is booming)
provides opportunities for U.S. exporters to position themselves in the
market.

After a slow start, the fast food industry has shown impressive growth
in recent years. Most U.S. chains, such as McDonald's, Dominos, Pizza
Hut, TGIF, along with local chains, are doing well in the major urban
areas and are spreading into smaller cities. To "curry" favor with
Indian diners, pizza, burger, and other fast food makers have developed
a range of indianized products to suit local tastes. Some outlets serve
exclusively vegetarian food, catering to the country's large vegetarian
population. Although fast food chains source most of their raw materials
locally, several products, such as french fries, specialty cheeses, some
meat and fishery products, flavors, condiments, and ingredients, are
often imported. In the past few years, the "coffee shop" culture has
spread throughout major cities and seems poised for further growth,
which should provide an opportunity for U.S. companies to supply
products such as syrups, specialty coffees, etc. For a detailed report
on [HRI Food Service Sector, please see Post's GAIN report
IN5066](#IN5066).

The ready-to-eat (RTE) industry, while still nascent in India, is
growing fast. The growing number of nuclear families (where the family
group consists only of a father, mother, and children) vis-à-vis joint
families, an increase in household incomes, and a significant rise in
the number of single men and women professionals in recent years, have
opened opportunities in the RTE segment. Presently, there are only a few
Indian companies like ITC and MTR focusing on this segment.

## 

## C. Food Processing

India's food-processing sector, although still in a nascent stage, has
undergone important changes over the last six to seven years. The types,
variety, quality, and presentation of products have all improved, mainly
as a result of economic liberalization, which led to foreign direct
investment (FDI) in this sector. Several multinational companies,
including U.S. companies like Pepsi, Coca Cola, ConAgra, Cargill, Heinz,
ADM, and Kellogg's have invested in the Indian food-processing industry.

Much of India's food-processing industry is small-scale and involves
little value addition, although in recent years several multinational
food-processing companies have started operations in India. A plethora
of internal restrictions, including (a) prohibition on foreign direct
investment in retail, (b) small agricultural holdings and prohibitions
on contract farming, (c) barriers to interstate commerce based on
revenue and food security concerns, (d) some of the highest taxes on
processed foods in the world, and (e) inefficient infrastructure and
marketing networks seriously constrain growth of the sector.

The almost year-round availability of fresh products across the country,
combined with consumers' preference for fresh products and freshly
cooked foods, has dampened demand for processed food products. However,
with the changing lifestyle of consumers and rising disposable income of
the growing middle class, there is increasing demand for convenient and
hygienic foods. This is expected to increase demand for processed food
products, giving a boost to the domestic food-processing industry, and
providing opportunities for increased imports of processed foods and
food ingredients. The Indian food-processing industry has started
looking outward to acquire the latest food ingredients and technology.

The level of processing varies across segments: ranging from less than 2
percent of production in the case of fruits and vegetables to over 90
percent in non-perishable products such as cereals and pulses. In the
latter segment, however, processing involves very little value addition,
and is mostly confined to grading, cleaning, milling, and packing; with
negligible use of additives, preservatives, and flavors. Only about two
percent of India's fruits and vegetable production is further processed.
Although the quality tends not to be world class, domestic production is
the primary source of competition for foreign suppliers.

The Indian government is in the process of formulating a "processed food
development policy" which seeks to create an appropriate environment for
entrepreneurs to set up food processing operations to spur growth in the
food processing sector. It includes an Integrated Food Law, named the
Food Safety and Standards Act (See: <http://mofpi.nic.in/fsnstds.pdf>),
which is a far-reaching legislation that would provide a single window
providing guidance regarding marketing, processing, handling,
transportation, and sale of foods ([India\'s Food Safety Standards Act -
Status and Outlook - IN7033](#IN7033)). It also will establish food
safety standards applicable to domestic and imported food products. For
details about []{#IN5031 .anchor}India's Food Processing Industry, see
Post's GAIN report IN5031.

# SECTION IV: BEST HIGH-VALUE PRODUCT PROSPECTS

+----------+-------+--------+--------+-------+----------+-----------+
| **P      | **M   | **Imp  | **Ex   | **Imp | **Key    | **Market  |
| roduct** | arket | orts** | pected | ort** | Const    | Attra     |
|          | S     |        | Avg.** |       | raints** | ctiveness |
| **Ca     | ize** | **200  |        | **Tar |          | for USA** |
| tegory** |       | 5/06** | Annual | iff** |          |           |
|          | **2   |        |        |       |          |           |
|          | 005** | **\$   | **Im   | *     |          |           |
|          |       | mil    | port** | *1/** |          |           |
|          |       | lion** |        |       |          |           |
|          |       |        | **Gr   |       |          |           |
|          |       |        | owth** |       |          |           |
+----------+-------+--------+--------+-------+----------+-----------+
| Apples   | 1.6   | 20.5   | 20%    | 51.5% | Com      | Seasonal  |
|          | mmt   |        |        |       | petition | shortages |
| Grapes   |       | 1.8    | 25%    | 30.9% | from     | and high  |
|          | 1.3   |        |        |       | domestic | prices;   |
|          | mmt   |        |        |       | and      | i         |
|          |       |        |        |       | foreign  | ncreasing |
|          |       |        |        |       | s        | interest  |
|          |       |        |        |       | uppliers | in        |
|          |       |        |        |       | like     | quality   |
|          |       |        |        |       | China    | fruits    |
|          |       |        |        |       | and      | among     |
|          |       |        |        |       | A        | India's   |
|          |       |        |        |       | ustralia | elite     |
+----------+-------+--------+--------+-------+----------+-----------+
| Cho      | 150   | 14.0   | 10%    | 59.1% | Com      | Consumer  |
| colates, | tmt   |        |        |       | petition | p         |
| C        |       |        |        |       | from     | reference |
| hocolate |       |        |        |       | domestic | for       |
| syrups & |       |        |        |       | s        | imported  |
| other    |       |        |        |       | uppliers | produc    |
| cocoa    |       |        |        |       | and      | ts/brands |
| products |       |        |        |       | other    | and       |
|          |       |        |        |       | s        | shortage  |
|          |       |        |        |       | uppliers | of        |
|          |       |        |        |       | like     | quality   |
|          |       |        |        |       | E.U. and | domestic  |
|          |       |        |        |       | South    | product   |
|          |       |        |        |       | Asia     |           |
+----------+-------+--------+--------+-------+----------+-----------+
| Almonds  | 25    | 158.5  | 8%     | Rs.   | Com      | High      |
|          | tmt   |        |        | 35/kg | petition | seasonal  |
| Pi       |       | 25.3   | 8%     |       | from     | demand;   |
| stachios | 6 tmt |        |        | 30.9% | Iran and | i         |
|          |       |        |        |       | Afg      | ncreasing |
|          |       |        |        |       | hanistan | use;      |
|          |       |        |        |       |          | health    |
|          |       |        |        |       |          | cons      |
|          |       |        |        |       |          | ciousness |
+----------+-------+--------+--------+-------+----------+-----------+
| Fruit    | n.a.  | 8.7    | 10%    | 36.1  | Com      | I         |
| juices   |       |        |        | %     | petition | ncreasing |
|          |       |        |        |       | from     | health    |
|          |       |        |        |       | nearby   | awareness |
|          |       |        |        |       | s        | among     |
|          |       |        |        |       | uppliers | middle    |
|          |       |        |        |       | and      | class and |
|          |       |        |        |       | domestic | shortage  |
|          |       |        |        |       | pr       | of local  |
|          |       |        |        |       | oduction | quality   |
|          |       |        |        |       |          | products  |
+----------+-------+--------+--------+-------+----------+-----------+
| Wine,    | n.a.  | 45.7   | 15 %   | 1     | High     | Growing   |
| Whiskies |       |        |        | 62% + | import   | co        |
| and      |       |        |        | State | duty;    | nsumption |
| other    |       |        |        | taxes | com      | and poor  |
| a        |       |        |        |       | petition | quality   |
| lcoholic |       |        |        |       | from     | domestic  |
| b        |       |        |        |       | other    | products  |
| everages |       |        |        |       | s        |           |
|          |       |        |        |       | uppliers |           |
+----------+-------+--------+--------+-------+----------+-----------+
| Pasta    | n.a.  | 5.3    | 30%    | 36.1% | Com      | I         |
|          |       |        |        | to    | petition | ncreasing |
| Sauces,  | n.a.  | 4.4    | 10%    | 59.1% | from     | po        |
| spreads, |       |        |        |       | domestic | pularity; |
| salad    | n.a.  | 5.0    | 20%    | 36.1  | s        |           |
| dr       |       |        |        | % to  | uppliers | growing   |
| essings, |       |        |        | 59.1% |          | food      |
| co       |       |        |        |       |          | p         |
| ndiments |       |        |        | 36.1% |          | rocessing |
|          |       |        |        |       |          | sector    |
| Potato   |       |        |        |       |          | and fast  |
| products |       |        |        |       |          | food      |
| & other  |       |        |        |       |          | sector    |
| sn       |       |        |        |       |          |           |
| ackfoods |       |        |        |       |          | Expanding |
|          |       |        |        |       |          | fast food |
|          |       |        |        |       |          | industry  |
+----------+-------+--------+--------+-------+----------+-----------+

1/ Total import duty includes basic duty, countervailing duty, Special
Countervailing duty, and education cess.

Note: Post analysis based on trade data and information from market
sources.

# SECTION V: KEY CONTACTS AND FURTHER INFORMATION 

The following reports may be of interest to US exporters interested in
India. These, and related reports prepared by this office, can be
accessed via the FAS Home Page:
[www.fas.usda.gov](http://www.fas.usda.gov/) by clicking on "Attaché
Reports" and searching by the report number.

  ------------------- -----------------------------------------------------
  **Report Number**   **Subject**

  [IN7068](#IN7068)   [Food & Agricultural Import Regulations and Standards
                      Report](#IN7068)

  [IN7090](#IN7090)   [Export Certificate FAIRS Report](#IN7090)

  [IN6111](#IN6111)   [Retail Food Sector](#IN6111)

  [IN7033](#IN7033)   [Food Safety Standards Act](#IN7033)

  [IN5066](#IN5066)   [HRI Food Services Sector](#IN5066)

  [IN5031](#IN5031)   [Food Processing Ingredients Sector](#IN5031)
  ------------------- -----------------------------------------------------

The Country Commercial Guide prepared by the Commercial Section of the
US

Embassy will also be of interest to exporters. This can be accessed
through

<http://www.buyusa.gov/india/en/ccg.html>

For additional information and guidance please contact:

**Agricultural Counselor**

### Foreign Agricultural Service

**Embassy of the United States of America**

**Chanakyapuri**

**New Delhi -- 110 021**

**Phone: 91-11-24198000**

**Fax: 91-11-24198530**

**E-mail: <agnewdelhi@usda.gov>**

# APPENDIX I: STATISTICS

## Table A: Key Trade & Demographic Information

  ----------------------------------------------------------- -----------
  Agricultural Imports From All Countries (\$Mil)/U.S. Market 4,854 (5)
  Share (%) 1/                                                

  Consumer Food Imports From All Countries (\$Mil)/U.S.       710 (10)
  Market Share (%) 1/                                         

  Edible Fishery Imports from All Countries (\$Mil)/U.S.      11 (9)
  Share (%) 1/                                                

  Total Population (Millions)/Annual Growth Rate (%) 2/       1,124
                                                              (1.95)

  Urban Population (Million)/ Annual Growth Rate (%) 2/       300 (2.7)

  Number of Major Metropolitan Areas 3/                       27

  Size of Middle Class (Millions)/Growth Rate (%) 4/          50 (8)

  Per Capita Gross Domestic Product (U.S. \$) 5/              738

  Per Capita Annual Food Expenditure (U.S. \$) 6/             115

  Exchange Rate (US\$1 = Rupees)                              40.00
  ----------------------------------------------------------- -----------

1/ UN Trade Database for the year 2003

2/ 2006 projection (October 1) based on Census India 2001 & Census India
1991

3/ Population in excess of 1 million: Greater Mumbai, Kolkata, Delhi,
Chennai, Bangalore, Ahmedabad, Hyderabad, Pune, Kanpur, Surat, Jaipur,
Lucknow, Nagpur, Indore, Bhopal, Ludhiana, Patna, Varaodara, Thane,
Agra, Kalyan, Varanasi, Nashik, Meerut, Faridabad, Haora,
Pimprichinchwad. (Source: Census India 2001)

4/ People living in households with annual income of \> Rs. 200,000
(\$4380 = \$23,530 on ppp basis) per year. Source: The 'Bird of Gold':
The Rise of India's Consumer Market, May 2007, McKinsey Global Institute
.
[www.mckinsey.com/mgi/reports/pdfs/india_consumer_market/MGI_india_consumer_full_report.pdf](http://www.mckinsey.com/mgi/reports/pdfs/india_consumer_market/MGI_india_consumer_full_report.pdf)

5/ IFY 2006/07

6/ In urban areas. Source: Consumer Expenditure Survey Data --60^th^
Round, 2005

## Table B: Consumer Food & Edible Fishery Product Imports to India

+--------------------------------+------+------+-----+-----+---+----+
| ###### India Imports           | *    |      | **I |     | * |    |
|                                | *Imp |      | mpo |     | * |    |
|                                | orts |      | rts |     | U |    |
|                                | from |      | f   |     | . |    |
|                                | the  |      | rom |     | S |    |
|                                | Wor  |      | the |     | . |    |
|                                | ld** |      | U.S |     | M |    |
|                                |      |      | .** |     | a |    |
|                                |      |      |     |     | r |    |
|                                |      |      |     |     | k |    |
|                                |      |      |     |     | e |    |
|                                |      |      |     |     | t |    |
|                                |      |      |     |     | S |    |
|                                |      |      |     |     | h |    |
|                                |      |      |     |     | a |    |
|                                |      |      |     |     | r |    |
|                                |      |      |     |     | e |    |
|                                |      |      |     |     | ( |    |
|                                |      |      |     |     | % |    |
|                                |      |      |     |     | ) |    |
|                                |      |      |     |     | * |    |
|                                |      |      |     |     | * |    |
+--------------------------------+------+------+-----+-----+---+----+
| (in million dollars)           | **20 | **20 | **  | **  | * | ** |
|                                | 02** | 03** | 200 | 200 | * | 20 |
|                                |      |      | 2** | 3** | 2 | 03 |
|                                |      |      |     |     | 0 | ** |
|                                |      |      |     |     | 0 |    |
|                                |      |      |     |     | 2 |    |
|                                |      |      |     |     | * |    |
|                                |      |      |     |     | * |    |
+--------------------------------+------+------+-----+-----+---+----+
|                                |      |      |     |     |   |    |
+--------------------------------+------+------+-----+-----+---+----+
| CONSUMER-ORIENTED AGRICULTURAL | 627  | 710  | 95  | 74  | 1 | 10 |
| TOTAL                          |      |      |     |     | 5 |    |
+--------------------------------+------+------+-----+-----+---+----+
| Snack Food (excl nuts)         | 8    | 11   | 1   | 1   | 2 | 4  |
+--------------------------------+------+------+-----+-----+---+----+
| Breakfast Cereals & Pancake    | 14   | 7    | 14  | 7   | 9 | 95 |
| Mix                            |      |      |     |     | 9 |    |
+--------------------------------+------+------+-----+-----+---+----+
| Red Meats,                     | 1    | 1    | 0   | 0   | 0 | 0  |
| Fresh/Chilled/Frozen           |      |      |     |     |   |    |
+--------------------------------+------+------+-----+-----+---+----+
| Red Meats, Prepared/Preserved  | 1    | 1    | 1   | 1   | 0 | 1  |
+--------------------------------+------+------+-----+-----+---+----+
| Poultry Meat                   | 1    | 1    | 0   | 0   | 0 | 0  |
+--------------------------------+------+------+-----+-----+---+----+
| Dairy Products (excl. cheese)  | 12   | 27   | 1   | 1   | 3 | 4  |
+--------------------------------+------+------+-----+-----+---+----+
| Cheese                         | 2    | 2    | 1   | 1   | 1 | 0  |
|                                |      |      |     |     | 1 |    |
+--------------------------------+------+------+-----+-----+---+----+
| Eggs & Products                | 2    | 1    | 1   | 1   | 2 | 8  |
|                                |      |      |     |     | 8 |    |
+--------------------------------+------+------+-----+-----+---+----+
| Fresh Fruit                    | 43   | 51   | 4   | 3   | 9 | 6  |
+--------------------------------+------+------+-----+-----+---+----+
| Fresh Vegetables               | 18   | 7    | 1   | 0   | 0 | 0  |
+--------------------------------+------+------+-----+-----+---+----+
| Processed Fruit & Vegetables   | 16   | 26   | 1   | 2   | 6 | 7  |
+--------------------------------+------+------+-----+-----+---+----+
| Fruit & Vegetable Juices       | 9    | 7    | 1   | 1   | 0 | 4  |
+--------------------------------+------+------+-----+-----+---+----+
| Tree Nuts                      | 336  | 402  | 38  | 51  | 1 | 13 |
|                                |      |      |     |     | 1 |    |
+--------------------------------+------+------+-----+-----+---+----+
| Wine & Beer                    | 3    | 2    | 1   | 1   | 0 | 6  |
+--------------------------------+------+------+-----+-----+---+----+
| Nursery Products & Cut Flowers | 2    | 2    | 1   | 1   | 8 | 4  |
+--------------------------------+------+------+-----+-----+---+----+
| Pet Foods (Dog & Cat Food)     | 1    | 1    | 1   | 1   | 2 | 37 |
|                                |      |      |     |     | 6 |    |
+--------------------------------+------+------+-----+-----+---+----+
| Other Consumer-Oriented        | 162  | 162  | 36  | 9   | 2 | 6  |
| Products                       |      |      |     |     | 2 |    |
+--------------------------------+------+------+-----+-----+---+----+
|                                |      |      |     |     |   |    |
+--------------------------------+------+------+-----+-----+---+----+
| FISH & SEAFOOD PRODUCTS        | 8    | 11   | 1   | 1   | 8 | 9  |
+--------------------------------+------+------+-----+-----+---+----+
| Salmon                         | 1    | 1    | 1   | 0   | 1 | 0  |
|                                |      |      |     |     | 3 |    |
+--------------------------------+------+------+-----+-----+---+----+
| Surimi                         | 0    | 1    | 0   | 0   | 0 | 0  |
+--------------------------------+------+------+-----+-----+---+----+
| Crustaceans                    | 4    | 4    | 1   | 1   | 1 | 25 |
|                                |      |      |     |     | 8 |    |
+--------------------------------+------+------+-----+-----+---+----+
| Groundfish & Flatfish          | 1    | 1    | 0   | 0   | 0 | 0  |
+--------------------------------+------+------+-----+-----+---+----+
| Mollusks                       | 1    | 1    | 0   | 0   | 0 | 0  |
+--------------------------------+------+------+-----+-----+---+----+
| Other Fishery Products         | 4    | 6    | 1   | 0   | 0 | 0  |
+--------------------------------+------+------+-----+-----+---+----+
|                                |      |      |     |     |   |    |
+--------------------------------+------+------+-----+-----+---+----+
| AGRICULTURAL PRODUCTS TOTAL    | 3    | 4    | 256 | 265 | 6 | 5  |
|                                | ,993 | ,854 |     |     |   |    |
+--------------------------------+------+------+-----+-----+---+----+
|                                |      |      |     |     |   |    |
+--------------------------------+------+------+-----+-----+---+----+
| AGRICULTURAL, FISH & FORESTRY  | 4    | 5    | 259 | 269 | 6 | 5  |
| TOTAL                          | ,412 | ,580 |     |     |   |    |
+--------------------------------+------+------+-----+-----+---+----+

## Table C: Top 15 Suppliers to India of Consumer Food & Edible Fishery Products

+---------------+--------+--------+---+---------------+--------+-------+
| #### CONS     |        |        | * | ##            |        |       |
| UMER-ORIENTED |        |        | * | ## FISH & SEA |        |       |
|  AGRICULTURAL |        |        |   | FOOD PRODUCTS |        |       |
|               |        |        | * |               |        |       |
|               |        |        | * |               |        |       |
+---------------+--------+--------+---+---------------+--------+-------+
| (in thousand  |        |        |   | (in thousand  |        |       |
| dollars)      |        |        |   | dollars)      |        |       |
+---------------+--------+--------+---+---------------+--------+-------+
|               | 2002   | 2003   |   |               | 2002   | 2003  |
+---------------+--------+--------+---+---------------+--------+-------+
|               |        |        |   |               |        |       |
+---------------+--------+--------+---+---------------+--------+-------+
| United States | 94,991 | 73,991 |   | Bangladesh    | 3,913  | 5,351 |
+---------------+--------+--------+---+---------------+--------+-------+
| Indonesia     | 46,693 | 65,685 |   | Burma         | 148    | 1,004 |
+---------------+--------+--------+---+---------------+--------+-------+
| Tanzania      | 53,515 | 58,267 |   | United States | 635    | 1,004 |
+---------------+--------+--------+---+---------------+--------+-------+
| Guinea-Bissau | 46,972 | 51,538 |   | Malaysia      | 211    | 515   |
+---------------+--------+--------+---+---------------+--------+-------+
| Iran          | 40,761 | 50,585 |   | United        | 305    | 391   |
|               |        |        |   | Kingdom       |        |       |
+---------------+--------+--------+---+---------------+--------+-------+
| Cote          | 49,901 | 47,570 |   | Indonesia     | 1,066  | 325   |
| d\'Ivoire     |        |        |   |               |        |       |
+---------------+--------+--------+---+---------------+--------+-------+
| Afghanistan   | 17,057 | 32,370 |   | Germany       | 0      | 319   |
+---------------+--------+--------+---+---------------+--------+-------+
| Benin         | 22,089 | 30,362 |   | France        | 49     | 282   |
+---------------+--------+--------+---+---------------+--------+-------+
| Nepal         | 24,822 | 26,655 |   | Oman          | 6      | 280   |
+---------------+--------+--------+---+---------------+--------+-------+
| China         | 30,134 | 20,996 |   | China         | 19     | 279   |
+---------------+--------+--------+---+---------------+--------+-------+
| Mozambique    | 21,058 | 20,640 |   | New Zealand   | 0      | 202   |
+---------------+--------+--------+---+---------------+--------+-------+
| Ghana         | 3,059  | 20,006 |   | Italy         | 70     | 177   |
+---------------+--------+--------+---+---------------+--------+-------+
| Sri Lanka     | 28,900 | 18,754 |   | Thailand      | 31     | 160   |
+---------------+--------+--------+---+---------------+--------+-------+
| Netherlands   | 12,001 | 14,209 |   | Areas NES     | 132    | 147   |
+---------------+--------+--------+---+---------------+--------+-------+
| Australia     | 9,544  | 14,004 |   | Belgium       | 241    | 131   |
+---------------+--------+--------+---+---------------+--------+-------+
| Other         | 1      | 1      |   | Other         | 1,326  | 607   |
|               | 25,599 | 63,999 |   |               |        |       |
+---------------+--------+--------+---+---------------+--------+-------+
| World         | 6      | 7      |   | World         | 8,155  | 1     |
|               | 27,140 | 09,666 |   |               |        | 1,180 |
+---------------+--------+--------+---+---------------+--------+-------+

Source: FAS Global Agricultural Trade System
(<http://untrade.fas.usda.gov/untrade/>)

# SECTION VI: OTHER RELEVANT REPORTS

[[]{#IN7068 .anchor}Food and Agricultural Import Regulations and
Standards Country Report 2007
(IN7068)](http://www.fas.usda.gov/gainfiles/200708/146291915.pdf)

[[]{#IN6111 .anchor}Indian retail sector
(IN6111)](http://www.fas.usda.gov/gainfiles/200612/146269832.pdf)

[[]{#IN5066 .anchor}HRI Food Service Sector
(IN5066)](http://www.fas.usda.gov/gainfiles/200506/146129952.pdf)

[[]{#IN7033 .anchor}India\'s Food Safety Standards Act - Status and
Outlook (IN7033)](http://www.fas.usda.gov/gainfiles/200704/146280868.pdf)

[India's Food Processing Industry
(IN5031)](http://www.fas.usda.gov/gainfiles/200504/146119288.pdf)

[[]{#IN7090 .anchor}Export Certificate FAIRS Report
(IN7090)](../IN7090%20-%20FAIRS%20Export%20Certificate%20Report%20-%20Annual.doc)

[^1]: UNDP Human Development Report 2005
    (<http://hdr.undp.org/reports/global/2005/pdf/HDR05_HDI.pdf>)

[^2]: Consumer Household Expenditure Survey 60^th^ Round (January --
    June 2004), National Sample Survey

    Organization, GOI
    ([http://mospi.nic.in/rept%20\_%20pubn/ftest.asp?rept_id=505&type=nsso](http://mospi.nic.in/rept _ pubn/ftest.asp?rept_id=505&type=nsso))

[^3]: The 'Bird of Gold': The Rise of India's Consumer Market, May 2007,
    McKinsey Global Institute .
    <http://www.mckinsey.com/mgi/reports/pdfs/india_consumer_market/MGI_india_consumer_full_report.pdf>

[^4]: National Readership Studies Council --
    <http://www.auditbureau.org/nrspress06.htm>

[^5]: See: <http://www.aaharindia2007.com/>