|
|
|
You can get e-magazine links on WhatsApp. Click here
|
|
|
|
|
|
Food Industry leaders hopeful of a good post-pandemic recovery
|
|
Wednesday, 05 May, 2021, 08 : 00 AM [IST]
|
|
Ashwani Maindola, New Delhi
|
Post the pandemic, significant opportunities exist for India in the food processing sector both in domestic market and exports market, feel industry leaders.
Aditya Bagri, director Bagrry’s Group, in a statement given to KPMG has said that there is a large dependence on imports for raw materials for global products being exported by Indian companies. With the right government interventions, this can be turned into a big opportunity for MSMEs in the food processing ecosystem.
He said, "Recently proposed PLI schemes may also be relooked to include more players. In a bid to augment exports and potentially make India a food factory for the world, the Government needs to support exporter companies by smooth transition and favourable incentives from MEIS to the RoDTEP scheme so that Indian companies can compete on a global canvas.”
Yogesh Bellani, CEO, FieldFresh Foods, says that the Indian food processing industry is gradually moving to maturity due to rising income prosperity, increasing customer aspirations and globalisation. The sector is currently characterised with limited value addition, with usage of technology with MSMEs forming a significant share in overall contribution.
The experts, however, feel that during Covid-19 outbreak, exports have been disrupted significantly and recovery is expected to take time. And, it is also important to know that there is a significant opportunity in exports as India is well-placed to serve a larger platter of Indian and global diaspora.
Arjun Gadre, MD, Gadre Marine Export Pvt Ltd, told KPMG that there is a huge scope for India to explore in terms of exports. In order to compete with our global counterparts, it is important to review and rework the current FTA arrangements. Major export processed food also requires consumption of ingredients like additives, colours, starches etc. which are not easily available in India. There is a huge potential for value added manufacturing of food ingredients in India.
Venkatesh Vijayaraghavan, director & CEO, Cavinkare, added that during Covid-19 outbreak, the sector wasn’t much impacted as most of the consumption fell into essentials as a category. However, the scale of impact will require at least 2-3 quarters for the sector to return to normalcy. Rural market, a value for money market, was initially hampered by limited geography but has since picked up demand as affordability in rural areas isn’t an issue.
Industry experts feel that out of home consumption has suffered significant losses, while segments such as hygiene, health & wellness, and immunity-based products have seen increasing sales. Industry experts also say that the Government may incentivise and subsidise 100% frozen retail stores. It could also consider incentivising cold chain set-ups for frozen retail space (veg/ non-veg) as this will enhance domestic demand significantly.
|
|
|
|
|
|
|
|
|
|