India invites investment in food processing

New Delhi, March 10: India Wednesday invited investment in the food processing industry to raise the processing levels of its agricultural produce from the current 10 percent to 20 percent.

"In the 11th Five-Year Plan (2007-12) period, we need investments of around Rs.1 lakh crore (Rs1,000 billion) to increase the processing level from the current 10 percent to 20 percent," said Minister for Food Proceesing Industries Subodh Kant Sahai.

Inaugurating an annual exhibition on food and hospitality, Aahar International 2010, here, he asked for investment in the supply chain and cold chain infrastructure, and technology to provide forward and backward linkages.

"This sector requires no licensing and allows 100 percent FDI (foreign direct investment)," he said.

"Investors in this sector are allowed to borrow money from foreign banks," he added.

Sahai said the food processing sector in India was the only sector that remained unaffected by the global financial crisis.

"Every year, the (food processing) industry has been growing. When the manufacturing sector was affected by the recession, this sector grew from 6 percent to 14.2 percent," he said.

This year, 426 companies are participating in the Aahar exhibition.