Food retail reforms: Narendra Modi government mulls relaxing FDI rules

Source : .financialexpress

The government is considering a proposal to ease foreign direct investment (FDI) guidelines in the retailing of food products to allow a certain percentage of locally-produced non-food items along with the edible products. Food processing minister Harsimrat Kaur Badal told FE her ministry has suggested that a foreign retailer be allowed to sell locally-produced non-food items worth 25% of its investments at the farm-gate level. However, a final decision will likely be taken after comprehensive consultations among ministries, including commerce and industry, food processing, and finance.

The move to relax the rule comes after several global retailers such as Walmart, Tesco, Metro Cash and Carry and Auchan Group conveyed to the government their willingness to set up shops here, provided the rules are relaxed to add more items to the shelves, official sources had told FE early last month.

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FSSAI to bring new regulations for organic foods

indexSource: The Economic Times, Feb 09, 2017

NEW DELHI: The Food Safety and Standards Authority of India (FSSAI) will soon come out with a draft regulation fororganic foods to ensure safety across thevalue chain through proper certification of such products, a top official said today.

The food regulator also plans to make it mandatory for hotels and restaurants to keep one trained and certified food safety supervisor, FSSAI CEO Pawan Agarwalsaid.

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Calorie is new MRP for packaged food

Source: The Economic Times, Jan 03, 2017

MUMBAI: As consumers become more mindful about what they eat, ‘calorie’ count is the new ‘MRP’ for packaged food products. Traditionally, nutritional information is printed on the back of a product pack, while MRP (maximum retail price) is used as the unique selling proposition for the price-sensitive consumer.

Now, to engage with the new-age, calorie conscious consumer, marketers are turning conventional wisdom on its head and displaying nutritional information on front of the pack. Some players are highlighting low calorie count to promote products.

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Ramdev plans to set up mega food park in Rajasthan

index.jpgSource: The Economic Times, Nov 09, 2016

JAIPUR: Yoga guru Ramdev today announced plans to set up a mega food park in Rajasthan and said his Patanjali group, which is entering into dairy and spices segments, can buy farm produce worth Rs 5,000-10,000 crore from farmers in the state.

“I along with Patanjali will support Rajasthan Chief Minister in all her endeavours. The company is entering into milk industry and Patanjali would be keen to make Rajasthan a part of its journey,” Ramdev said at the Global Rajasthan Agritech Meet here.

“Patanjali is coming in large scale in spices. We will purchase them from Rajasthan and other states and process,” he said. He added that besides spices, the company will also make available cow milk.

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Government lines up Rs 324 crore to set up food parks in Andhra Pradesh, Maharashtra

indexSource: The Economic Times, Aug 04, 2016

NEW DELHI: Government today said it is setting up two mega food parks at a cost of Rs 324 crore in Andhra Pradesh and Maharashtra under its ambitious Sagarmala project.

“As part of the Sagarmala Programme of the Ministry of Shipping, two mega food parks projects are being implemented in Kakinada, Andhra Pradesh and southern Maharashtra by the Ministry of Food Processing,” Ministry of Shipping said in a statement.

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Global, Indian biggies keen on food retail, says minister

Source: Times of India, Apr 29, 2016

NEW DELHI: Food processing minister Harsimrat Kaur on Thursday said several players including Walmart, Tesco, Carrefour, Kishore Biyani’s Future Group, Bharti and ITC had shown interest in the food retail business but cautioned that part of the gains of allowing 100% FDI in domestically produced and manufactured food could be pocketed by middlemen if the government did not insist on mandatory investment in back-end infrastructure.

“We have consulted international players and our own people. It is a new avenue for them (to invest) and they are very positive,” she told TOI, listing out names of the companies. While Carrefour has already exited India, none of the other players have publicly stated any intent to enter food retail.

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FSSAI expansion plans shelved by government

download (1).jpgSource: Business Standard, Apr 27, 2016

New Delhi: The plan to expand the Food Safety and Standards Authority of India (FSSAI) is proposed to be shelved by the government. In 2014, the government had mooted a draft cabinet note for a Rs 1,750 crore-central scheme for  strengthening of FSSAI, e-governance, food safety surveillance and expansion of states’ capacity.

In contrast, a note written by the chairperson of FSSAI, Ashish Bahuguna on January 6, this year to his staff has suggested that the FSSAI would wind up its regional offices and leave enforcement of safety laws to state governments. With the Rs 800 crore support to states under the central scheme being shelved, Bahuguna has also recommended that regulations be amended, allowing state  officials to monitor food safety as an additional duty and not necessarily on a full-time basis. He has also recommended that instead of setting up government labs to test food samples, as was previously planned, FSSAI should depend on private labs.

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