Required Report - public distribution

**Date:** 9/29/2005

**GAIN Report Number:** IN5107

IN5107

**India**

**Exporter Guide**

**Annual**

**2005**

**Approved by:**

![](media/image1.wmf)Chad R. Russell

U.S. Embassy, New Delhi

**Prepared by:**

A. Govindan

**Report Highlights:**

Many factors provide growth opportunities for US high-value agricultural
product exports to India. Among them are: a large and growing middle
class, the slow but steady transformation of the retail food sector in
cities, the growing number of fast food chains and luxury hotels, an
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, 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 2**](#section-i-market-overview)

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

[A. Food Preferences 2](#a.-food-preferences)

[B. Shopping Habits 2](#b.-shopping-habits)

[C. Distribution Systems 2](#c.-distribution-systems)

[D. Infrastructure 2](#d.-infrastructure)

[E. Finding a Business Partner 2](#e.-finding-a-business-partner)

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

[G. Business Etiquette 2](#g.-business-etiquette)

[H. Import Duties 2](#h.-import-duties)

[I. Food Laws 2](#i.-food-laws)

[SECTION III: MARKET SECTORS: STRUCTURE AND TENDS
2](#section-iii-market-sectors-structure-and-tends)

[A. Food Retail 2](#a.-food-retail)

[B. Food Service 2](#b.-food-service)

[C. Food Processing 2](#c.-food-processing)

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

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

[APPENDIX I: STATISTICS 2](#appendix-i-statistics)

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

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

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

# 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 1.1 billion, and
it is comprised of 28 states and seven 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 the largest number of poor, with 35 percent of the population
surviving on less than \$1 per day, and 80 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 area 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.

Some observers of India's economic scene are, however, highly 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 US exporters should also bear in mind that India's diverse
agro-industrial base already offers many items at competitive prices.

Results of the "Market Information Survey of Households," conducted by
the National Council of Applied Economic Research, show that the share
of households in the upper middle/high income group (annual household
income \> rs. 90,000, or \$11,200 on purchasing power parity basis) has
grown from 14% in 1989-90 to 28% in 2001-02, and is projected at 48
percent in 2009-10. Correspondingly, there has been a decline in the
low-income group.

![](media/image2.jpeg){width="4.166666666666667in"
height="1.8701388888888888in"}

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 two decades, averaging 6 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 30.6 to 52.2 percent. Some sensitive items, such as
alcoholic beverages, poultry meat, raisins, vegetable oils, wheat, rice,
etc., attract much higher duties. Non-tariff barriers include
unwarranted sanitary and phytosanitary restrictions and onerous labeling
requirements for pre-packaged foods. 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/image3.png){width="0.15625in" height="0.15625in"} Rising
> disposable income levels
>
> ![](media/image3.png){width="0.15625in" height="0.15625in"} Increasing
> urbanization and exposure to Western culture
>
> ![](media/image3.png){width="0.15625in" height="0.15625in"} Growing
> health consciousness among the middle class
>
> ![](media/image3.png){width="0.15625in" height="0.15625in"} Growing
> consumerism
>
> ![](media/image3.png){width="0.15625in" height="0.15625in"} Changing
> age profile
>
> ![](media/image3.png){width="0.15625in" height="0.15625in"} Increasing
> availability of cheap consumer credit

+----------------------------------+-----------------------------------+
| **Advantages**                   | **Challenges**                    |
+----------------------------------+-----------------------------------+
| > ![](m                          | > ![](                            |
| edia/image4.png){width="0.125in" | media/image4.png){width="0.125in" |
| > height="0.125in"} Large and    | > height="0.125in"} Divergent     |
| > growing middle class           | > food habits                     |
+----------------------------------+-----------------------------------+
| > ![](m                          | > ![](                            |
| edia/image4.png){width="0.125in" | media/image4.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/image4.png){width="0.125in" | media/image4.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/image4.png){width="0.125in" | media/image4.png){width="0.125in" |
| > height="0.125in"} Growing      | > height="0.125in"} Poor          |
| > number of fast food chains     | > infrastructure                  |
+----------------------------------+-----------------------------------+
| > ![](m                          | > ![](                            |
| edia/image4.png){width="0.125in" | media/image4.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/image4.png){width="0.125in" | media/image4.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/image4.png){width="0.125in" | media/image4.png){width="0.125in" |
| > height="0.125in"} Improved     | > height="0.125in"} Competition   |
| > Indo-US 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 food 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 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, and fruits such as apples, 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 store 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 built in large cities and
suburbs.

## 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, 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 liberal trade policies and
efficient handling facilities. Major importers are located in Mumbai,
Kolkata, Delhi, and Chennai. Although a large share of imported foods
enter India through illegal smuggling, normal imports are also
increasing. Under-invoicing is a commonly used practice to lessen the
burden of 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, 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. 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 the aspiring US companies have products of
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 selling from abroad. US companies
should avoid the temptation to establish a relationship with an
agent/distributor merely because he 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 large
    infrastructure and big reputations.

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

-   US 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 US 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 2005[^3], the reach of the
press medium (dailies and magazines combined) has increased to 300
million people from 179 million three years ago. Satellite television
has grown explosively to reach 190 million people, whereas radio's reach
has stagnated at 23 percent of the population. The internet now reaches
more than 10 million people, with 34 percent of users surfing from home
and 32 percent from cyber cafés. Among the fast growing tribe of mobile
phone owners, 14 percent access value-added features like downloads,
news, SMS, etc.

Delhi's Annual Food Exposition
[AAHAR](http://www.aaharindia2005.com/index.htm), and smaller food shows
in Delhi and other cities (IFE India, Agro Tech, Am Fest) provide
opportunities for US 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 your 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 are famous for having longer-than-scheduled 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
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/business-etiquette/India.html](http://www.executiveplanet.com/business-etiquette/India.html)

## 

## H. Import Duties

Imports into India are subject to a high, 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 introduced in last
year's Budget on July 8, 2004).

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 31 percent to 52 percent.

For a product attracting a 30 percent basic duty, a 16 percent AD, and
the 2 percent EC, the total applied import tariff will not be 48 percent
as one might think (30+16+2), but rather 52.2 percent. The import duty
calculation is as follows:

CVD Rate = 16% on total import value

EC at 2% on 16% = 0.32%

Effective CVD rate = 16% + 0.32% = 16.32%

Basic Import duty = 30%

Applied CVD = 16.32% of 130% = 21.216%

Total import duty = 30% + 21.216% = 51.216%

EC on Import duty = 2% of 51.216% = 1.02432%

Applied import duty = 51.216% + 1.02432% = **52.24032%**

The following table provides a detailed calculation of the retail
pricing of imported food products in India.

**Cost Breakdown of Imported Processed Food Products**

+----------------------+----------------------------+----------+-------+
| #### Costs           | **Rate**                   | **       | **De  |
|                      |                            | Mumbai** | lhi** |
+----------------------+----------------------------+----------+-------+
| FOB Price at US Port | \$1 per unit               | \$1.00   |       |
|                      |                            |          |       |
| (New York)           |                            |          |       |
+----------------------+----------------------------+----------+-------+
| Ocean freight,       | 9% of FOB Invoice price 1/ | \$0.09   |       |
| insurance, etc.      |                            |          |       |
+----------------------+----------------------------+----------+-------+
| **CIF Value at       |                            | **       |       |
| Indian Port**        |                            | \$1.09** |       |
+----------------------+----------------------------+----------+-------+
| Basic Import Duty    | 30% of CIF value           | \$0.33   |       |
+----------------------+----------------------------+----------+-------+
| Additional Duty (AD) | 16.32% of 65% of MRP 2/    | \$0.40   |       |
+----------------------+----------------------------+----------+-------+
| Education Cess (EC)  | 2% on (Basic + AD)         | \$0.01   |       |
+----------------------+----------------------------+----------+-------+
| **Total Import       |                            | **       |       |
| Duty**               |                            | \$0.74** |       |
+----------------------+----------------------------+----------+-------+
| Clearing Charges     | 6% of CIF price 3/         | \$0.07   |       |
+----------------------+----------------------------+----------+-------+
| Domestic freight     | 4% of CIF value 4/         | N.A.     | \     |
| from Mumbai          |                            |          | $0.04 |
+----------------------+----------------------------+----------+-------+
| **Landed cost**      |                            | **       | **\$1 |
|                      |                            | \$1.89** | .92** |
+----------------------+----------------------------+----------+-------+
| Octroi               | 6% in Mumbai 5/; 0% in     | \$0.11   | 0.00  |
|                      | Delhi                      |          |       |
+----------------------+----------------------------+----------+-------+
| Importer Margin      | 18% on landed cost 6/      | \$0.34   | \     |
|                      |                            |          | $0.35 |
+----------------------+----------------------------+----------+-------+
| **Invoice Price**    |                            | **       | **\$2 |
|                      |                            | \$2.35** | .26** |
+----------------------+----------------------------+----------+-------+
| Central Sales Tax 7/ | 4% of the Invoice Price    | \$0.09   | \     |
|                      |                            |          | $0.09 |
+----------------------+----------------------------+----------+-------+
| **Distributor Cost   |                            | **       | **\$2 |
| Price**              |                            | \$2.44** | .35** |
+----------------------+----------------------------+----------+-------+
| Local sales tax      | 12.5% of distributor cost  | \$0.31   | \     |
| (VAT)                |                            |          | $0.29 |
+----------------------+----------------------------+----------+-------+
| Distributor Margin   | 10% of the distributor     | \$0.24   | \     |
|                      | cost                       |          | $0.24 |
+----------------------+----------------------------+----------+-------+
| **Retailer Cost      |                            | **       | **\$2 |
| Price**              |                            | \$2.99** | .88** |
+----------------------+----------------------------+----------+-------+
| Retailer Margin      | 25% of retailer cost (20%  | \$0.75   | \     |
|                      | of MRP)                    |          | $0.72 |
+----------------------+----------------------------+----------+-------+
| **RETAIL PRICE**     |                            | **       | **\$3 |
|                      |                            | \$3.74** | .61** |
+----------------------+----------------------------+----------+-------+

Note: Calculations based on an assumed FOB value of \$25,000 for a 20 ft
container

1/ Varies from 8 to 10%

2/ Maximum Retail Price (MRP) of \$3.74/unit declared by importer in
Mumbai

3/ Varies from 5 to 8%

4/ Varies from 3 to 5%

5/ Varies from 5 to 7% depending on the product

6/ Varies from 15 to 20%

7/ To be phased out in March 2006

#######  {#section-2 .unnumbered}

## 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 2005"
(IN5080), which can be accessed via the FAS/USDA website:
[www.fas.usda.gov](http://www.fas.usda.gov/)

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

> ![](media/image4.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. PFA
> standards and regulations 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/image4.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. This Act and Rules and recent notifications
> are available at: <http://fcamin.nic.in/wm_ind.htm>
>
> ![](media/image4.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: <http://agricoop.nic.in/gazette/gazette.htm>. Please also see
> Post's GAIN reports (IN3126; IN4012; IN4032; IN4066; IN4099)

# 

# SECTION III: MARKET SECTORS: STRUCTURE AND TENDS

## A. Food Retail

Food retailing in India is not yet an organized industry, 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 \$135
billion, of which the organized retail sector has been able to capture
only a fraction of a percent. India has no hypermarkets in the Western
sense of the word, and very 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 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. The
cost structure of a supermarket is typically 3 percent for property; 3.5
percent for labor; air conditioning and lighting utilities up to 3.5
percent; interest cost of 1.5 percent; leaving 3 to 5 percent of sales
as profit before tax.

There are only a few multi-unit supermarket chains in India, mostly in
the south. 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 15
to 20 percent of the urban population is estimated to shop mostly in
these supermarkets, and this percentage is growing. Large corporate
groups are becoming interested in diversifying into retailing. The
government has not yet made a decision on foreign direct investment in
the retail sector, but a lively debate rages within the Indian political
and economic spheres.

The 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.

The concepts 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. Over 200 such retail malls in 25
cities are under construction or in the active planning stage. Shopping
malls such as DLF City Center, The Metropolitan, Big Bazar, Center Stage
Mall, around Delhi; Crossroads and R-Mall in Mumbai; and Spencer's in
Chennai; are revolutionizing the way the Indian middle class shop. For a
detailed report on the Indian retail sector, please see Post's GAIN
report IN4126.

## B. Food Service

After a slump in 2002, the Indian hotel industry is getting back on the
global tourist map. 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 the total revenues to
the industry. Hotels in this segment are concentrated in major
metropolitan cities such as New Delhi, Mumbai, Chennai, Bangalore, and
Kolkata, and also have a moderate presence 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 US food products, the higher cost is a constraint.
Nevertheless, the Indian hotel and tourism sector (which is booming)
provides opportunities for US exporters to position themselves in the
market place.

After a slow start, the fast food industry has shown impressive growth
in recent years. Most US chains, such as McDonald's, Dominos, and 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 US 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.

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 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 US companies like Pepsi, Coca Cola, ConAgra, Cargill, Heinz,
and Kellogg's have invested in the Indian food-processing industry.

Much of India's food-processing industry is small-scale and involves
very 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) 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 the 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 agricultural output 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, which is
far-reaching legislation that would provide a single window providing
guidance regarding marketing, processing, handling, transportation, and
sale of foods. It also will establish food safety standards applicable
to domestic and imported food products. For details about India's Food
Processing Industry, see Post's GAIN report IN5031.

# SECTION IV: BEST HIGH-VALUE PRODUCT PROSPECTS

+----------+-------+-------+---------+------+----------+-------------+
| **P      | **M   | *     | **E     | **   | **Key    | **Market    |
| roduct** | arket | *Impo | xpected | Impo | Const    | Att         |
|          | S     | rts** | Avg.**  | rt** | raints** | ractiveness |
| **Ca     | ize** |       |         |      |          | for USA**   |
| tegory** |       | *     | Annual  | **   |          |             |
|          | **2   | *2003 |         | Tari |          |             |
|          | 004** | /04** | **I     | ff** |          |             |
|          |       |       | mport** |      |          |             |
|          |       | **\$  |         | **   |          |             |
|          |       | mill  | **G     | 1/** |          |             |
|          |       | ion** | rowth** |      |          |             |
+----------+-------+-------+---------+------+----------+-------------+
| Apples   | 1.5   | 11.7  | 20%     | 50%  | Com      | Seasonal    |
|          | mmt   |       |         |      | petition | shortages   |
| Grapes   |       | 0.6   | 25%     | 3    | from     | and high    |
|          | 1.2   |       |         | 0.6% | domestic | prices;     |
|          | mmt   |       |         |      | and key  | increasing  |
|          |       |       |         |      | est      | interest in |
|          |       |       |         |      | ablished | quality     |
|          |       |       |         |      | s        | fruits      |
|          |       |       |         |      | uppliers | among       |
|          |       |       |         |      | like     | India's     |
|          |       |       |         |      | China    | elite       |
|          |       |       |         |      | and      |             |
|          |       |       |         |      | A        |             |
|          |       |       |         |      | ustralia |             |
+----------+-------+-------+---------+------+----------+-------------+
| C        | n.a.  | 4.5   | 10%     | 5    | Com      | Import      |
| hocolate |       |       |         | 2.2% | petition | lib         |
|          | 1.3   | 2.3   | 10%     |      | from     | eralization |
| Biscuits | mmt   |       |         | 30%  | other    | and         |
|          |       |       |         | +AD  | s        | consumer    |
|          |       |       |         |      | uppliers | preference  |
|          |       |       |         |      | and      | for         |
|          |       |       |         |      | domestic | imported    |
|          |       |       |         |      | s        | products    |
|          |       |       |         |      | uppliers |             |
+----------+-------+-------+---------+------+----------+-------------+
| Almonds  | 25    | 68.0  | 5%      | Rs.3 | Com      | High        |
|          | tmt   |       |         | 5/kg | petition | seasonal    |
| Pi       |       | 29.0  | 8%      |      | from     | demand;     |
| stachios | 6 tmt |       |         | 3    | Iran and | increasing  |
|          |       |       |         | 0.6% | Afg      | use; health |
|          |       |       |         |      | hanistan | co          |
|          |       |       |         |      |          | nsciousness |
+----------+-------+-------+---------+------+----------+-------------+
| Fruit    | n.a.  | 10.0  | 10%     | 3    | Com      | Increasing  |
| juices   |       |       |         | 0.6% | petition | health      |
|          |       |       |         |      | from     | awareness   |
|          |       |       |         |      | nearby   | among       |
|          |       |       |         |      | s        | middle      |
|          |       |       |         |      | uppliers | class and   |
|          |       |       |         |      | and      | shortage of |
|          |       |       |         |      | domestic | local       |
|          |       |       |         |      | pr       | quality     |
|          |       |       |         |      | oduction | products    |
+----------+-------+-------+---------+------+----------+-------------+
| Whiskies | n.a.  | 12.0  | 15 %    | 18   | High     | Growing     |
| and      |       |       |         | 2% + | import   | c           |
| other    |       |       |         | AD   | duty;    | onsumption, |
| a        |       |       |         |      | com      | poor        |
| lcoholic |       |       |         |      | petition | quality     |
| b        |       |       |         |      | from     | domestic    |
| everages |       |       |         |      | other    | products    |
|          |       |       |         |      | s        |             |
|          |       |       |         |      | uppliers |             |
+----------+-------+-------+---------+------+----------+-------------+
| Pasta    | n.a.  | 4.0   | 30%     | 5    | Com      | Increasing  |
|          |       |       |         | 2.2% | petition | popularity; |
| Sauces,  | n.a.  | 8.0   | 10%     |      | from     |             |
| spreads, |       |       |         | 3    | domestic | growing     |
| salad    | n.a.  | 5.0   | 10%     | 0.6% | s        | food        |
| dr       |       |       |         |      | uppliers | processing  |
| essings, | n.a.  | 2.6   | 20%     | 5    |          | sector,     |
| co       |       |       |         | 2.2% |          | fast food   |
| ndiments | n.a.  | 1.5   | 20%     |      |          | sector      |
|          |       |       |         | 3    |          |             |
| Cocoa    |       |       |         | 0.6% |          |             |
| products |       |       |         |      |          |             |
|          |       |       |         | 3    |          |             |
| Potato   |       |       |         | 0.6% |          |             |
| products |       |       |         |      |          |             |
|          |       |       |         |      |          |             |
| Cheese   |       |       |         |      |          |             |
+----------+-------+-------+---------+------+----------+-------------+

1/ Total import duty includes basic duty, 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**

  IN5080            Food & Agricultural Import Regulations and Standards
                    Report

  IN5066            HRI Food Services Sector

  IN5031            Food Processing Ingredients Sector

  IN4126            Retail Food Sector

  IN4104            Promotion Opportunities
  ----------------- -----------------------------------------------------

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

[www.stat-usa.gov](http://www.stat-usa.gov/) or
[www.export.gov](http://www.export.gov/).

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/       1,111
                                                              (1.95)

  Urban Population (Million)/ Annual Growth Rate (%) 2/       297 (2.7)

  Number of Major Metropolitan Areas 3/                       27

  Size of Middle Class (Millions)/Growth Rate (%) 4/          280 (8)

  Per Capita Gross Domestic Product (U.S. \$)                 528

  Per Capita Food Expenditure (U.S. \$) 5/                    120

  Exchange Rate (US\$1 = Rupees)                              44.0
  ----------------------------------------------------------- -----------

1/ UN Trade Database for the year 2003

2/ 2005 projection 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.

4/ People living in households with annual income of rs. 90,000
(\$1,895) or above (2001/02 NCAER Data)

5/ In urban areas. Source: Consumer Expenditure Survey Data --59^th^
Round, 2003

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

+--------------------------------+------+------+-----+-----+---+----+
| ###### 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 |     |     |   |    |
+--------------------------------+------+------+-----+-----+---+----+

Source: FAS Global Agricultural Trade System
([**http://untrade.fas.usda.gov/untrade/**](http://untrade.fas.usda.gov/untrade/))

## Table C: Top 15 Suppliers 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/>)

[^1]: UNDP Human Development Report 2004

[^2]: Consumer Household Expenditure Survey 59^th^ Round (January --
    December 2003), National Sample Survey Organization, GOI

[^3]: National Readership Studies Council --
    [www.auditbureau.org](http://www.auditbureau.org/)