Industry-government deliberate on challenges in food processing sector for MSMEs at World Food India 2017

New Delhi, Nov 6 (KNN) Eyeing at exploring the different complexities the Micro, Small and Medium Enterprises (MSMEs) face in the food processing sector, a session titled MSME Food Processing Sector: Global Opportunities was called at the World Food India event held in the national capital.

Various stakeholders including representatives from financial institutions, government as well as MSME units were part of the session.

Vikas Jain, Joint Managing Director, PMV Maltings Pvt Ltd during the session said that the MSMEs in India face challenges competing with their south Asian counterparts. He said that the Indian MSMEs still struggle to obtain raw material because of which the rival competing countries are able to overpower.

He further said that there is a need to improve the quality of farm produce in the country. Yield has to be increased with appropriate value addition.

Also the participating MSMEs raised concerns around the problem of obtaining finances. The sector is not able to avail quality finance because the rate of return is not considered viable enough for the banks, therefore the MSMEs in food processing sector face an array of problems.

Responding to the concerns, Sumit Gupta, Group President and National Head of Business and Rural Banking, YES Bank acknowledged that there are certain bottlenecks that need to be addressed.

Gupta said that there must be realigning of the definition of MSMEs. The sector possesses huge potential both in terms of its contribution to the economy as well towards generation of employment; hence the sector can’t be overlooked. (KNN/DA)