FICCI: about growth of F+B sector in India

New Delhi / IN. (ficci) Driven by robust growth in areas like semi-processed, ready-to-eat food and wine, India´s food and beverages (F+B) sector is expected to touch 466’000 INR crore mark by the year-end which is growing at nine percent rate, a FICCI survey reveals. «FICCI» means «Federation of Indian Chambers of Commerce and Industry», New Delhi. According to our dictionary «crore» means «ten millions». We think, that «RS 4.66.000 crore» could be «466’000 x 10.000.000 = 4.660.000.000.000 Rupees (INR)» – 82,1 billion Euro (exactly Euro).

However: The FICCI survey covering 300 sector-specific industry associations and companies projected that segments like semi processed / cooked ready-to-eat, ice-cream, wine and sugar would achieve 24 percent, 30 percent, 22 percent and 25 percent growth respectively.

The segments which are expected to record high growth between ten to 20 percent includes branded flour atta (16 percent), bakery items like bread, cakes (eleven percent), biscuits (16 percent), fruit juices, pulp and concentrates (18 percent) and sauces / ketchups (17 percent).

Apart from these, culinary products / snack food, milk products, butter, health beverages, malted food, chocolates, beer, country liquors and branded edible oil are also expected to register excellent growth.

However, items belonging to the unorganised sector which also includes processed food products, flour / atta, bread, milk and dairy products, ghee, sugar, tea, coffee and edible oil is likely to achieve moderate to single digit growth.

«Factors like treating the development of food processing industry as a priority area, changing strategies of companies, changing consumer life style would continue to encourage commercialisation and demand for value-added food and beverage products», FICCI says in a statement.

The survey has also highlighted some of the long-pending demand of the industry like income tax exemption of agriculture and farm produce, cold storage and processing of fruit and vegetables from April 2007 to March 2012. According to the statement «the setting up of cold chain and other modernised technology for upgrading of storage handling and transportation should be granted infrastructure status and a ten-year tax holiday should be provided to it».

Also, excise duty on all value-added food products like confectionery, innovative Indian ethnic products, high value ready to cook / serve products should be brought down to a maximum of eight percent from 16 percent.

The survey also suggested that «food processing machinery and refrigerated trucks used by processed food industry should be exempt from excise duty and excise on all machineries used for the processed food industry should be lowered to a maximum of eight percent».