KPMG-FICCI report gives agriculture the thumbs up

Mumbai, Oct 16 (UNI) Foreign Direct Investment (FDI) approvals in food processing doubled during the last fiscal, with the food sector alone poised to breach the Euro 2.1 billion market with Private Equity (PE) joining the action, according to a joint report released by KPMG and FICCI.

''India is making an important mark in the global food arena both as a producer, exporter of agricultural products and as a very large and growing market for processed foods. The favourable policy environment and increasing interest of corporates in agriculture and agri-food business augurs well for India,'' KPMG India Markets Head Pradeep Udhas said.

The revival of the agriculture sector is expected to open opportunities for players having strong linkages in the agro value chain with the food processing industry expected to be one of the biggest beneficiaries of this whole process and is estimated to grow at 9-12 per cent in the near future, stated a release today.

According to industry estimates, the processed food market accounts for 32 per cent of the total food market which is valued at Euro 67.9 billion.

Total exports of the food processing industry have jumped from Euro 4.7 billion in 2002-03 to Euro 13.8 billion in 2006-07, the release added.

UNI