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Letters: MNCs best suited for job

SMEs have inherent constraints of capital investment, quality assurance measures

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Business Standard
Last Updated : Mar 28 2017 | 11:38 PM IST
With regard to an excellent, well-researched editorial, “Promoting food processing” (March 28), allow me to differ on the suggestion that policy “focus should shift to micro- and middle-sized units”.
 
We are discussing an issue that concerns the country’s food security and the checking of the colossal waste of meagre crop production, especially that of perishable fruits and vegetables where losses are as high as 40 to 50 per cent. Ensuring quality and nutritional content of the final product are also concerns. With due respect to the vibrant small and medium industry sector, they can’t handle all these parameters and also ensure sizable outputs.
 
SMEs have inherent constraints of capital investment, quality assurance measures and marketing infrastructure. Despite good intentions the sector will not be able to improve the present situation. Conglomerates and MNCs are best suited to handle this by bringing in their expertise, large resources — financial and human capital and equipment — and international insights. Krishan Kalra   Gurgaon
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