Lok Sabha Question No. 1950 (UNSTARRED), answered on 2017-03-14
Subject: FDI in Trading of Food Products
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: R. GOPALAKRISHNAN

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION No. 1950

ANSWERED ON 14 TH  MARCH, 2017

## FDI IN TRADING OF FOOD PRODUCTS

## 1950.   SHRI R GOPALAKRISHNAN:

Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:

- (a) whether the Government held any meetings with the ambassadors and high commissioners in the country  to  attract  FDI  in  trading  of  food  products,  if  so,  the  details  thereof  and  the  outcome thereof;
- (b) Whether the Government plans to attract latest technologies in the food processing sector,
- (c) if so, the details thereof; and
- (d) the steps taken by the Government to raise the farmers income and generate more employment through FDI in the food processing sector?

## ANSWER

## THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SADHVI NIRANJAN JYOTI)

(a): Yes  Madam,  Ministry  of  Food  Processing  Industries  has  held  three  meetings  on  17.03.2016, 03.08.2016  and  27.02.2017  with  Ambassadors  and  High  Commissioners  in  India  of  various  foreign countries namely Australia, China, Canada, France, Indonesia, Japan, Korea, Netherland, Poland, Russia, Singapore,  UK,  New  Zealand,  UAE,  Thailand,  Germany,  Belgium,  Brazil,  USA,  Malaysia,  Mexico, Switzerland,  Spain  and  Italy.    These  meetings  were  facilitated  by  the  Ministry  of  External  Affairs, Government  of  India  and  were  attended  by  Ambassadors/High  Commissioners/representatives  of Embassies/High Commissions in India, of these countries.

In  the  first  two  meetings,  the  foreign  Missions  were  apprised  about  the  recent  path  breaking policy initiatives  of  Government  of  India  allowing  100%  FDI  in  manufacturing  under  automatic  route and  100%  FDI  in  trading,  including  e-commerce,  in  respect  of  food  products  manufactured  and/or produced in India. The Ministry of Food Processing Industries further explained them the opportunities available  as  a  result  of  these  policies  for  the  investors  of  their  country  to  invest  in  India  in  the  Food Processing sector for exploring new food business tie-ups as well  as expansion of their food business already existing in India.   They were also asked to further disseminate the information in this regard to the investors of their country.

In the latest meeting held on 27.02.2017, Ministry of Food Processing Industries invited all the foreign Missions present in the meeting to participate in the mega international food event, World Food India 2017, to be held in New Delhi from 3 rd - 5 th November 2017 to showcase  the various investment opportunities in India in the food processing and food retail sector.

(b)&(c): Ministry  of  Food  Processing  Industries  has  already  sanctioned  new  Mega  Food  Parks, Cold  Chains  infrastructure  and  Food  Testing  Laboratories,  which  are  normally  equipped  with  latest technology and modern infrastructure in their units/plants.

The Ministry is also encouraging organization of seminars, workshops and conferences to exhibit opportunities  in  the  food  processing  sector  and  Make  in  India  initiative  in  all  fields  including  latest equipments and technologies.  New policy initiatives such as Ease of doing business, Make in India and 100% FDI policy in manufacturing of food products and trading of food products manufactured/produced in India, will also help to bring latest technologies to this sector.

Ministry of Food Processing Industries is attending various food related international events from time to time and also interacting with foreign investors, which would further facilitate transfer of latest technologies to food processing sector in India.

The  Ministry  is  organizing  mega  international  event,  World  Food  India  2017  from  3 rd to  5 th November 2017 which is also likely to attract latest technologies in Food Processing sector.

(d): The increase in FDI in the Food Processing sector and retailing of food products will encourage creation of more food processing infrastructure including backward and forward linkages, cold storages, etc.  which  will  in  turn  benefit  the  farmers  in  realizing  remunerative  prices  for  their  produce  and  will create opportunities for generating more employment.

*****