Govt to soon announce detailed norms to operationalise 100% FDI in food processing sector

In order to help farmers in getting good prices of their produce besides eliminating wastage of food produce, the government will soon coming out with detailed norms to operationalise the decision to permit 100 percent foreign direct investment (FDI) in the food processing sector.

Commerce and industry minister Nirmala Sitharaman has said that there are a lot of people who are interested in putting funds for creating value addition in agricultural produce. Therefore if FDI is permitted, they can come, procure from the farmer, give him a fair price, do value addition and avoid wastage of produce. She said that government will soon come out with detailed guidelines on FDI in food processing. The department of industrial policy and promotion (DIPP) is in the process of finalising the cabinet note in this regard along with ministry of food processing.

The minister added that the FDI in food processing sector will also eliminate wastage of food produce, as there is a lot of food being wasted in the country because there are no storage capacities. Wastage is there because timely procurement does not happen.

The government in the latest Budget has proposed allowing 100 percent foreign direct investment in marketing and processing of food products. Recently Food Processing Minister Harsimrat Kaur Badal has pitched for investing 25% of the inflows for creating agriculture infrastructure at the farm level, directly benefiting the farmers and said that FDI in food processing would lead to creation of ‘swadeshi’ (local) infrastructure with ‘videshi’ money (foreign investment).