processing sector badly in need of investments
6 July 2005
to a study by the Hyderabad-based, Administrative Staff
College of India (ASCI), the Indian food processing
industry requires investments to the tune of $40 billion
for upgrading technology and capital expenditure to
compete in global markets.
Indian food processing industry lacks economies of scale,
skilled manpower, top class research institutes like
the Central Food Technology Research Institute, Mysore
and shortage of regional training Centres to encourage
Foreign Direct Investment and other routes of investments
by multinational corporations pose a potential threat
to a large number of Indian players in the coming years.
main shortcomings include domination by small-scale
and cottage industry, dominance of middle men, which
increases the cost of produce, high packaging cost,
lack of storage facilities and absence of dependable
cold chain system, refrigerated transport and cabinets.
Food standards are also considered to be overlapping,
contradictory and highly prescriptive, making regulatory
compliance difficult the study said.
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