In an effort to help the Indian food and beverage industry to become competitive in overseas markets, the Confederation of Indian Industry (CII) has sought setting up of a training fund for promoting food safety and quality standards and called for the phased regulation of the sector along with quicker implementation of the proposed Food Safety Act as well as outsourcing of technologies in the supply chain and cold chain verticals.
Taking a cue from the Business Monitor International forecast that says India is likely to see a huge 443% increase in mass grocery retail sales during 2007-12, the industry body is organising the fourth Food Safety and Quality Summit in the capital on July 2 and 3 that will focus on India?s access to global markets, food safety and quality through innovation and cost competitiveness of the Indian food processing sector. According to CII, the Indian food processing sector is being deprived of valuable export to various countries due to ?Technical Barriers to Trade?. As these restrictions are more in the EU, they are restricting Indian food products to enter and compete.
Though India?s food export under 33 different categories have registered a cumulative growth of 58% since 2005-06 at Rs 11,412 crore in 2007-08 as compared to Rs 7,233 crore in 2005-06, its share in export of processed food in global trade (pegged at $3.2 trillion) is only 1.5%, as per the 2007-08 annual report of the ministry of food processing industry. According to CII, relatively low levels of processing or value addition in most cases, low penetration levels and the largely unorganised behaviour of the sector are some of the key challenges faced by the Indian food processing industry. Hence, CII is seeking setting up of a training fund for promoting food safety and quality standards as well as far greater implementation of CODEX standards in India.
Since implementation of food safety and quality add to cost, CII?s upcoming session will dwell upon the need for food businesses to take the route of manufacturing excellence and mitigate the cost of food safety and quality. Further, it will discuss ways to come up with innovative products without compromising the safety and quality of food products. According to CII, food and grocery retailing accounts for 62% of the total retail market and will be worth $150 billion by 2025.
With breakfast cereals, bakery and baby food products emerging as growth sectors, CII estimates the food consumption in India will grow at an annual rate of 4.1% to touch $344 billion by 2025. Even the cold storage capacity, which stands at 5,101 mt, is expected to touch 24,323 mt by 2014-15, it said.