Food sector set for quantum jump in India, says Harsimrat Kaur Badal

Harsimrat Kaur Badal, the Food Processing Minister, has said that the foreign direct investment (FDI) in the food processing sector has already touched the $1-billion mark so far this year.

Badal said, "When we took over the government in 2014, FDI in the food processing sector used to be USD 500 million every year. This year, we touched USD 1-billion mark. This is a tip of the iceberg, we have to go a long way."

In 2017-2018, FDI in the food processing sector was $904.9 million. While, in 2016-17, 2015-16 and 2014-15, it stood at $727.22 million, $505.88 million and $15.86 million, respectively.

The minister said that the FDI in multi-brand retail was allowed keeping in mind the need to boost food processing level and provide an alternative market to farmers to sell their produce.

"I am happy to see companies like Metro and Walmart are keen to tie up directly with farmers," she said.

Ashok Dalwai, CEO of National Rainfed Area Authority (NREA), said, "We have seen that the captive investment in agriculture, which is pre-requisite for any kind of accelerated growth, has not really happened through the corporate sector."

"Agriculture, which is the primary economic activity and in a way it is the economic sector which generates the demand for services and industry sectors, was not subjected to the liberalisation. But in the last four years, the emphasise has been on bringing in reforms in the sector and make it a private sector enterprise," Dalwai further added.

खाद्य प्रसंस्करण राज्य मंत्री साध्वी निरंजन ज्योति ने कहा कि भारत के खाद्य प्रसंस्करण क्षेत्र ने भारी निवेश को प्रभावित किया है और अमेरिका उद्योग की पहल में एक प्रमुख भूमिका निभा रहा है।

उन्होंने कहा, "वैश्विक मानकों पर खाद्य प्रसंस्करण लाने का भारत का लक्ष्य भारी निवेश लाया है और अमेरिका उद्योग की पहलों में महत्वपूर्ण भूमिका निभा रहा है।"

मंत्री ने कहा कि हाल के वर्षों में भारत और अमेरिका ने अपने संबंधों को मजबूत किया है। उन्होंने यह भी कहा कि सरकार 'सबका साथ, सबका विकास' के मिशन की दिशा में अथक रूप से काम कर रही है।

साध्वी ने आगे कहा, "समावेशी विकास की यह भावना न केवल भारतीय किसानों के लिए फायदेमंद है, जिनकी आय सरकार ने 2022 तक दोगुना करने की मांग की है, बल्कि अमेरिका जैसे अंतर्राष्ट्रीय भागीदारों के लिए भी और सभी के लिए आर्थिक समृद्धि पैदा कर सकते हैं।"

यस बैंक के वरिष्ठ प्रेसिडेंट और वैश्विक प्रमुख (खाद्य और कृषि सामरिक सलाहकार और रिसर्च), नितिन पुरी ने कहा, "भारत सरकार खाद्य प्रसंस्करण में अभूतपूर्व बदलाव ला रही है और इस माहौल ने भारत और अमेरिका के बीच सहयोग के लिए कई अवसर पैदा किए हैं। इस सहयोग के लिए मार्ग संपूर्ण मूल्य श्रृंखलाओं में निवेश हो सकता है। इससे फ़ूड वेस्टेज का नुकसान कम हो सकता है, वैश्विक सर्वोत्तम प्रथाओं और सुपीरियर कोल्ड चैन्स जैसी टेक्नोलॉजी भारत को मिल सकती हैं और भारतीय सामान को वैश्विक बाजारों में बेच सकते हैं।"

Sadhvi Niranjan Jyoti, Minister of State for Food Processing, said that India’s food processing sector has captivated heavy investment and the US is playing a major role in the industry's initiatives.

She said, "India's goal of bringing food processing to global standards has brought about heavy investment, and America is playing a significant role in the industry's initiatives."

The Minister stated that in recent years India and the US have strengthened their relations. She also said that the government is working tirelessly towards the mission of 'Sabka Saath, Sabka Vikas'. 

"This spirit of inclusive growth is not only beneficial for Indian farmers whose income the government has sought to double by 2022, but also for international partners like America, and can create economic prosperity for all," Sadhvi further added. 

Nitin Puri, Yes Bank’s Senior President and Global head (Food and Agri Strategic Advisory and Research), said, "Indian government is catalysing a revolution in food processing, and this environment has created many opportunities for collaboration between India and the US. A recommended pathway for this collaboration can be an investment in entire value chains. These can mitigate food wastage losses, bring global best practices and technologies like superior cold chains to India, and sell Indian goods in global markets."

India, projected to be the most populous country over the next decade, will be the world's largest milk producer by 2026 and will account for the biggest increase in wheat production globally, according to a report by the UN and OECD.

The OECD-FAO Agricultural Outlook 2017-2026 said the world's population will increase from 7.3 to 8.2 billion over the course of the next decade with India and Sub-Saharan Africa accounting for 56 per cent of total population growth.

India's population will grow from 1.3 billion to 1.5 billion, an increase of almost 150 million. India will overtake China and is projected to be the most populous country in the world by 2026.

The report said that given their strong population growth, India and Sub-Saharan Africa will also drive a large share of global demand.

It further said that over the first quarter of the 21st century, milk production in India will be nearly tripled.

According to the report by the UN and Organisation for Economic Cooperation and Development, "Over the course of the outlook period alone, milk production in India will grow 49 per cent; in 2026, India will be the world's largest milk producer, with an output one-third above that of the second largest producer, the European Union."

The report further stated, global production of wheat is projected to increase by 11 per cent over the outlook period of 2017-2026, while the wheat area increases by only 1.8 per cent.

The increase in wheat production is expected to occur through higher yields, most notably in Asia and Pacific, which will account for 46 per cent of additional wheat production.

Within the region and globally, India (15 Mt) will account for the biggest increase in production and Pakistan (6 Mt) and China (5.5 Mt) are also expected to have significant gains.

The European Union accounts for 13 per cent of the production increase. Rice production is expected to grow by 66 Mt and will be almost exclusively driven by yield growth, which accounts for 93 per cent of additional production.

The global area dedicated to rice is expected to increase by only a per cent from the base period, while global yields will increase by 12 per cent. Major production gains are projected for India, Indonesia, Myanmar, Thailand and Vietnam with yields in these countries are expected to increase by over 15 per cent.

The report said that global food commodity prices are projected to remain low over the next decade compared to previous peaks, as demand growth in a number of emerging economies is expected to slow down and biofuel policies have a diminished impact on markets. 

Yumist, a Delhi-based food tech start-up, which operates in the daily meals segment, is planning to raise 2 million USD to scale up operations, as per the sources (who do not want to named) reveal.

One of the sources also said that right now they are looking for investors, who can help them raise 2 million USD. The idea behind this is to scale up its operations on Delhi-NCR (national capital region).

It is known for serving home-style meals, prepared in its own kitchens. Recently it has opened a 12, 000 square feet kitchen to serve the Delhi-NCR market.

The food tech start-up is backed by Ronnie Screwvala's fund Unilazer Ventures and Rehan Yar Khan's Orios Venture Partners.

In December 2015, Yumist raised $2 million in a round led by Unilazer Ventures. Existing investor Orios Venture Partners also participated in the round.

As per the statements of the second source, even after shutting down its Bengaluru operations, the company is still planning to spread its arms in the other states and cities to serve its food.

He also added that the sector has gone through a lot in the last one year, which has reduced the competition in the food-tech space. Thus it hopes to get a scope for the surviving start-ups at expanding their operations.