FDI in retail in food products would help SMEs become competitive: Experts

New Delhi, June 21 (KNN) Centre’s decision to allow e-commerce in food products, provided they are sourced/ processes here, would help the small entrepreneurs if big players like Walmart and Carrefour invest 30 per cent of the resources here, said experts adding that it would also help SMEs become more competitive.

Announcing the biggest reform in the FDI policy in India, Government on Monday decided to permit 100% FDI under government approval route for trading, including through e-commerce, in respect of food products manufactured or produced in India.

Talking on this, Firoz H Naqvi, Secretary Agro & Food Processing Equipment & Technology Providers Association of India, told KNN, “FDI in retail in food products will help only if players like Walmart and Carrefour  invest 30% of the resources in India  which will lead to backward and forward linkages thus creating ‘Farm  to Fork’ economy, leading to holistic development. This has already been proposed by Harsimrat Kaur Badal, Minister of Food Processing Industries”.

“R&D facility and cluster based approach is what needs to be the focus of after apart from FDI in retail,” he added.

Naqvi said there is a lack of research centres in India and there are hardly any research oriented work being done in the country in food sector.

FDI alone cannot boost the business in India unless it’s backed by investments in R&D centres, he added.

Meanwhile, Dr Sangam Kurade, a renowned food technologist and President, FISME, said, “FDI in retail will definitely benefit the consumer who gets access to quality products and would get ample choices to opt from.”

He said 100% FDI in food sector would also help SMEs to become more competitive and produce quality and competent products which help them upgrade themselves as per international standards.

He, however, said that the tiny and micro units would probably be left in lurch and efforts should be directed in a way that they should not suffer since they lack volume and funds to upgrade themselves. (KNN/ GK)