Videshi fund for swadeshi infrastructure: Union Minister on FDI in food processing

Processing of fruit and vegetables will double with the expected rise in foreign fund inflows after government allowed 100% FDI in marketing of food products manufactured in India, Union Minister Harsimrat Kaur Badal said.

The foreign investment would help in creation of food processing infrastructure in the country, helping in raising the processing level of fruits and vegetables to 20% from the current 10%, she added.

Hailing the FDI announcement in the Budget, Badal said: "..this step will lead to creation of 'swadeshi' (local) infrastructure with 'videshi' money (foreign investment). The Food Processing Minister also added that this will help farmers get remunerative prices for their produce, and adoption of modern agricultural practices required for producing agricultural produce on a large scale to meet the requirements of organised marketing.

She added that at the same time FDI will bring in higher efficiencies in food processing industry and trade, and will make our food products more competitive in international markets.

"As of now only 10% of our total agri-produce is processed, I am confident after this move to allow 100% FDI in food processing this will double to 20%," Badal added. She also mentioned that as the wastage of agriculture produce will come down it could also help in checking the inflation.

"This step will also help in doubling the farmers income. Farmers produce is the raw material for food processing industry so if the processing industry grows than it will lead to rise in farmers income also. At the same time it will also create strong linkages from farm to folk,," she said.

While tabling the Union Budget on Monday, the Finance Minister Arun Jaitley had said that 100% FDI will be allowed through FIPB route in marketing of food products produced and manufactured in India. This will benefit farmers, give impetus to food processing industry and create vast employment opportunities.