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Food processing sector badly in need of investments
6 July 2005

According 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.

The 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 entrepreneurs.

Also 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.

Other 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 send this article to a friend overlapping, contradictory and highly prescriptive, making regulatory compliance difficult the study said.

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Food processing sector badly in need of investments