Aditya Bagri, Director of Bagrry’s Group, explained in a statement to KPMG that there is a high dependency on raw material imports for global products that are exported by Indian companies. With the right government intervention, this can become a great opportunity for MSMEs in the food processing ecosystem.
He said, „Recently proposed PLI schemes could also be re-introduced to involve more stakeholders. In order to increase exports and potentially make India a food factory for the world, the government needs to transition and incentivize exporters smoothly MEIS to support the RoDTEP program so that Indian companies can compete on a global screen. „
Yogesh Bellani, CEO of FieldFresh Foods, says the Indian food industry is gradually maturing due to rising incomes, increasing customer demand and globalization. The sector is currently characterized by limited value creation, with the use of technology with MSMEs making a significant contribution to the total.
However, the experts believe that exports were severely disrupted during the Covid-19 outbreak and the recovery is expected to take some time. And it’s also important to know that exporting presents a significant opportunity as India is well positioned to serve a larger plate of Indian and global diaspora.
Dr. med. Arjun Gadre of Gadre Marine Export Pvt Ltd told KPMG that India has tremendous leeway when it comes to exporting. In order to be able to compete with our global colleagues, it is important to review and revise the current free trade agreements. Major export processed foods also require the consumption of ingredients such as additives, colors, starches, etc., which are not readily available in India. There is great potential in India for the production of value added food ingredients.
Venkatesh Vijayaraghavan, Director & CEO of Cavinkare added that the sector was not badly affected during the Covid-19 outbreak as most of the consumption fell as a category into the essential. However, the magnitude of the impact will require at least two to three quarters for the sector to return to normal. The rural market, a value for money, was initially hampered by the limited geography but has since picked up demand as affordability is not an issue in rural areas.
Industry experts believe that non-home consumption has seen significant losses, while segments such as hygiene, health and wellness, and immunity-based products saw sales increase. Industry experts also say the government could encourage and subsidize 100% frozen retail stores. It could also be considered to incentivize cold chain structures for frozen retail (vegetable / non-vegetable) space as this will significantly increase domestic demand.
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