cii technopak mfpi 12 june 2009

© Confederation of Indian Industry© Confederation of Indian Industry

Presentation toSri Subodh Kant Sahai

Hon’ble Minister for Food Processing Industries

12th June 2009New Delhi


Inclusive Growth The Need of the Hour

Food Processing is the Answer


Indian Food Processing Industry – The Fact File

•Food & Grocery retailing accounts for 62% of the total retail market and will be worth US$ 150billion by 2025

•India remains one of the fastest growing economies in the world, with a projected average GDP growth of 7.1% in 2009-10 fiscal year

•Foreign Direct Investment (FDI) increased by 137% March - November last year, to US$17.21 billion

•Food consumption has an annual growth rate of 4.1%, expected to reach US$344 billion by 2025

•New sectors which are showing a potential growth rate in the coming years are –

- Breakfast cereals - Bakery

- Baby Foods


Benefits of Food Processing

•Agricultural Developments

•Price of Agriculture

•Employment generation

•Higher standards of rural life style

•Prevents migration away from rural areas


Exponential - From the Grassroots


Integrated Infrastructure Blueprint


Manufacturing Impetus

• Accelerated depreciation to have new technologies and machines

– To help the industry to be more competitive and upgraded technology like in many other sectors depreciation should be increased from 15 to 25% on plant and machinery employed in the food processing industry.

• Rationalization of Import Duties

– How feasible is it to have 0% duties on edible oil, and 125% on wine.

• Rationalization of excise duties

–Is 12% VAT justified when the Excise duty is nil–Is Early GST justified at nil when the Excise is nil


Star Performer Modules


MFPI to Consider Initiating a Module on the Same Lines of APEDA


Promotion of Venture Capital Funds


Cold Storage: Capacity

• Total installed capacity of 22 million MT and additional capacity of 114 million MT is required by 2015

• Two states - Uttar Pradesh & West Bengal have 65% of total installed Capacity • Larger capacity per installed units are required (at production as well as consumption

centers)• Investment required of $ 5 billion over the next 5 years


Development of Cold Chain

Cold chain should be given an impetus –

• Current scheme for Integrated Cold Chain Development should be continued during the 11th five year plan period without any limits on number of units

• New schemes may be introduced by MFPI for assistance to food processing units on a need-based, open-ended viability gap funding mechanism.

• Provide 100 % depreciation for Cold chain equipments

• All government subsidies should be given only to units complying with minimum prescribed technical standards (CII has worked out a set of technical standards)


To Make India “Food Factory of the World”

…IBEF Could be A Partner


•Existing exemptions should continue•Excise duty on all similar food products should be brought at par to take care of anomalies

Steps to Catalyse Growth


Steps to Catalyse Growth


Key Challenges

Meeting Global Standards of Quality

Inadequate Infrastructure and Supply Chain

Technological Knowhow and Support

Food Regulations Lack of Processable Produce &

Irregular Supply


Training Infrastructure

• Provide Annual Grants for 10 years to Training Institutions covering the following areas:

– Building Awareness on Food Safety across the food Chain, regulatory authorities and

consumers– Providing training on new technologies and best practices in food processing, food safety

and quality

• Facilitate up-gradation of food factories in Cluster or individually through GHP, GMP,HACCP,ISO 22000, Manufacturing Excellence, TQM, TPM, ISO 14000 through funding assistance to experienced Consultancy bodies

• Create a National FSQ Fund for facilitating the above


Laboratory infrastructure

• Provide funding assistance for developing a network of at least 250 standards and certification laboratories to support the new law, at various levels i.e. Central, Regional, District, States and local through PPPs

• Upgrading the present laboratories through GLP compliance and Accreditation ,recommend laboratories required at various levels (Central, Regional District, States and local) and facilitate up-gradation through GLP compliance and accreditation. Recommend setting up of high-tech lab facilities for testing of pesticide residues, genetically modified food and chemical and microbiological contaminants and toxins

• Setting up a National Referral laboratory to be responsible for training of testing personnel, making available /validating test methods, making available proficiency testing programs/ making available Certified Reference Material and Samples

• Research and development activities although undertaken in the laboratories, have not been extended in the field level or adopted extensively.


Food Safety

• FSSA has been widely appreciated and accepted, thanks to Ministry of food Processing Industries

• However, there are yet a number of acts which are required to be repealed and enforced(The Prevention of Food Adulteration Act, 1954, The Fruit Products Order, 1955, The Meat

Food Products Order, 1973, The Vegetable Oil Products (Control) order, 1947, The Edible Oil Packaging (Regulation) Order, 1998, The Solvent Extracted Oil. De oiled Meal, and Edible Flour (Control) Order, 1967, The Milk and Milk Products Order, 1992, etc)

• It is desirable that there is a CODEX Cell within MFPI (Ministry of Food Processing).

• Ministry of Food Processing Industries (MFPI) continues to play a pioneering role in aliening India food standards with the world


“CII would like to work very closely under the leadership of Shri Subodh Kant Sahay, to make his

dreams for the sector a reality”

Thank – You

Presentation prepared by Sanjay Sethi, Vice President, Technopak [email protected]

+91 9810308309

cii technopak mfpi 12 june 2009

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