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Food processing sector sees better prospects post Covid
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SME Times News Bureau | 29 Apr, 2021
The post Covid-19 world looks promising for India's food processing
industry as it recalibrates itself to capitalize on increased
opportunities in the industry and ears up to capture new markets, a
KPMG report on Indian food processing industry said on Thursday.
According
to the report, the optimism for the industry emanates from projection
of exponential growth in demand for processed food in rural areas and
countries Tier 2/3 cities. Moreover, a lot of untapped potential remains
to enhance India's export to the top 10 food importing countries of the
world where the country at present has a limited presence.
The
report had recommended that government can support the exporters by
negotiating Free Trade Agreements (FTAs), lowering Non-tariff barriers
(NTBs) and expeditious implementation of Remission of Duties and Taxes
on Exported Products (RoDTEP) scheme. This will help in larger
penetration of Indian value added food products in bigger global
markets.
According to the report, the food processing industry is
one of the mainstays of the global economy with a value addition of $
1.7 trillion. Also, thr Indian processed food market is expected to grow
to $ 470 billion by 2025 from $ 263 billion (2019-20).
The
report titled "Indian food processing industry - growth opportunities
post the Covid-19 pandemic", further said that the pandemic had provided
opportunity to the Indian industry to scale but the success would also
depend on the development of high quality food testing and
certification infrastructure in the country as hygiene needs grow in
post Covid world.
Innovative products focused on wellness, health
and nutrition are likely to see a huge opportunity in the domestic
market, the report said harping on the importance increasing cold
storage capacity in the absence of which scalability of perishable
products has been challenge. Moreover, Digitalised Supply chain, Smart
warehousing and logistics using industry 4.0 technologies can help India
reduce wastage during storage and transit, it said.
According to
KPMG, thr pandemic has given rise to a new normal with sustainable food
chains, growing preference for healthy food and localized food supply
with increased trade barriers.
"In the post Covid-19 era, there
is likely to be a surge in non - tariff measures including stringent
Sanitary and Phytosanitary Measures (SPSs) and Technical Barriers to
Trade (TBT) by major economies to ensure food safety against transmitted
chemicals and diseases," the report said.
It also recommended
government partnership with private players through appropriate PPP
models to ensure a faster scale up of quality infrastructure in line
with industry requirements.
Adopting a focused approach with
collaboration from diverse stakeholders is required for catalytic growth
of the industry. An inter-ministerial committee led by MOFPI and
consisting of various ministries may be constituted to bring various
stakeholders together in a coordinated manner, the report said.
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
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66.20
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64.50 |
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87.50
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84.65 |
Euro
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78.25
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75.65 |
Japanese
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56.85 |
As on 13 Aug, 2022 |
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