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Enormous potential to lead in non-meat & vegetable proteins
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Thursday, 02 January, 2025, 08 : 00 AM [IST]
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Piruz Khambatta
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The Indian food and beverage industry has evolved significantly, especially in the post-Covid era. A quick look at any supermarket will show how products like monk fruit, sweetened green tea, fruit-infused oats and instant bajri khichdi have become a part of our daily lives.
Today, Indians are more open than ever to trying new products. Traditional mindsets have shifted, and there is now a greater appetite for international flavours and convenience foods. Products like Korean kimchi, Italian risotto rice, and Japanese instant miso soup, which were once hard to find, are now readily available. Indian companies have also adapted to these trends, with many offering new ranges of health-focused and convenient products.
The Growth Drivers:
Exports to Untapped Markets:
India has significantly expanded its export markets. While we once focused primarily on GCC countries, SAARC nations, Europe, and the US, today our products are reaching South America, Africa, and many countries that previously had little to no Indian product presence.
Organic Foods:
I see a huge opportunity for India in the organic food sector. In developed countries, there is a growing demand for organic products, and India has the potential to become a powerhouse in this market. The government should encourage natural farming and organic products, and companies should innovate and launch new products in this space.
Non-Meat & Vegetable Protein:
Globally, people are moving toward non-meat and vegetable proteins, such as soy milk and mung dal. Given that India is predominantly vegetarian, we have enormous potential to lead in the development of such products and to export them globally.
Edible Oil:
India has a wealth of edible oils, but as we've seen with mobile phones and small cars, there is an opportunity to flip the script. I encourage the government to focus on policies that support the growth of edible oil plantations, leveraging our geographical and climatic advantages. By doing so, India can not only meet domestic demand but also become a leading exporter of edible oils.
Tapping Global E-Commerce Markets:
While foreign companies have successfully used platforms to enter the Indian market, Indian products are not as widely available on global e-commerce platforms. I believe the government should work to ensure that Indian products are promoted and actively sold on these platforms, both in international markets and globally. Subsidies and encouragement for Indian brands to use these platforms would further boost our reach.
The Support that Industry Needs:
As the food industry continues to grow, it is important that the government supports it by addressing key concerns. Some of the reforms we hope to see addressed include:
- PLI for MSMEs.
- GST rationalisation, to ensure that all food products that are basically perishables or essentials are totally exempted. And all others are either in the 5% or 12% tax bracket.
- Re-evaluation of FTAs/PTAs to ensure fair competition and protection for Indian food products.
- Addressing inverted duty structures, where raw materials are taxed while finished products are exempt.
- Long-awaited tax benefits for food processing units, including MSMEs and export-focused companies.
Regulation of Food Influencers:
I also believe it is important for food influencers to be regulated, similar to how financial influencers are now monitored by the RBI. This will ensure that consumers receive accurate and reliable information, ultimately benefiting both the industry and its customers.
FSSAI Standards:
The Food Safety and Standards Authority of India (FSSAI) has made great strides, but as India strives to become a global superpower, it is crucial that we continue to upgrade our regulations to match international standards. This will not only help Indian food exporters but also reduce non-tariff barriers in foreign markets.
(The author is chairman, Rasna Private Limited)
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