Foreign direct investment in food processing is likely to rise 27 per cent to Rs 1,200 crore this fiscal in light of immense untapped potential in the sector, Union Food Processing Minister said today.
"This year, foreign direct investment (FDI) is expected to cross Rs 1,000 crore and touch Rs 1,200 crore," Food Processing Minister Subodh Kant Sahai told PTI on the sidelines of the second national conference of the National Meat and Poultry Processing Board (NMPPB).
"The FDI is expected from many Mauritius-based companies, who are looking at tapping the Indian market," a senior ministry official said.
US-based producer and marketer of food Cargill is also expected to invest in the sector this fiscal, he added.
The government has allowed 100 per cent FDI in food processing.
Of the total FDI in food processing last fiscal, PepsiCo--a global player in convenient snacks, foods and beverages--constituted about 40 per cent, the official said.
In 2009-10 fiscal, FDI in food processing industry rose by over 200 per cent to Rs 945 crore, against Rs 400 crore in the previous year, he mentioned.
The official said that FDI from PepsiCo in the sector increased substantially during the last fiscal.
The company has invested in food segment and not beverages, he added.
Sahai further said that the government is soon expecting the detailed project reports (DPR) on four mega food parks in Karnataka, Punjab, Uttar Pradesh and Maharashtra.
He also said that the government will soon send the proposal to the Cabinet for approval of the rest of the 20 mega food parks.
The government has targeted to set up 30 mega food parks in the 11th Five-Year Plan (2007-12), of which 10 have already been approved.
The parks are being set up under the Mega Food Park Scheme of the government that aims to encourage Public-Private Partnership (PPP) for creating rural infrastructure in the food processing sector.
Of the total cost of over Rs 300 crore for each park, Rs 50 crore will be funded by the government.