Detailed norms on FDI in food processing soon: Nirmala Sitharaman

FDI into the country grew by 40 per cent to USD 29.44 billion.

New Delhi:

Government will soon come out with detailed norms to operationalise the decision to permit 100 per cent foreign direct investment (FDI) in the food processing sector. The FDI in food processing sector, Commerce and Industry Minister Nirmala Sitharaman said, will help farmers in getting good prices of their produce besides eliminating wastage of food produce.

"There is a lot of food being wasted in the country because there are no storage capacities. Wastage is there because timely procurement does not happen," she told PTI in an interview.

The minister said "there are a lot of people who are interested in putting funds for creating value addition in agricultural produce. Therefore if FDI is permitted, they can come, procure from the farmer, give him a fair price, do value addition and avoid wastage of produce".

On when the government will come out with detailed guidelines on FDI in food processing, the minister said: "It has to come out sooner". The Department of Industrial Policy and Promotion (DIPP) is in the process of finalising the cabinet note in this regard along with Ministry of Food Processing.

Recently, Finance Minister Arun Jaitley held a meeting with top officials of food processing, commerce and industry ministries to work out the modalities for allowing 100 per cent FDI in marketing and processing of foods products.

With a view to benefit farmers and reducing wastage of fruits and vegetables, the government in the Budget proposed allowing 100 per cent foreign direct investment in marketing and processing of food products.

In his Budget speech, Jaitley had said the move would benefit farmers, give an impetus to the food processing industry and create vast employment opportunities. During April-December, FDI into the country grew by 40 per cent to USD 29.44 billion.