Singapore-based companies today expressed their interest in setting up cold-chain logistics in business parks being set up for food processing industries in India.
Representatives from 70 companies expressed their interest at an investment promotion seminar organised here during Indian Food Processing Industries (FPI) minister Subodh Kant Sahai’s visit.
Sahai, who is leading a delegation of 14 senior officials and business leaders to Singapore, said that the response on investment in mega food processing parks has been encouraging.
The minister said Singapore was his main choice for attracting investment as it is a hub of international companies, including the food processors.
Singapore, he noted, was generating major investments in India, “but we want more. Singapore is ranked third FPI investor after Mauritius and the United States.”
Sahai explained that his government has made it easier for foreign direct investment in the food processing sector, with liberal taxing system, especially for importing processing machineries and incentives for exporting finished products.
Highlighting the potential of investment, he said that foreign direct investment in the FPI sector has reached Rs. 930 crore in the 2009-2010 fiscal, which up by a hefty 132 per cent.
Processed food export also grew to 13.6 million tonnes valued at Rs. 36,000 crore in FY’10 from 10.9 million tonnes worth Rs. 21,000 crore in the previous fiscal.
He said India’s target was to reduce the unprocessed food wastage, which averages around Rs. 50,000 crores a year.