'FDI in retail will provide better price to farmers'
FDI in the retail sector will benefit the farmers in a big way by cutting down the supply chain, resulting in better price realisation and standardisation of products, said an industry expert.
By PTI |
MUMBAI: Foreign Direct Investment (FDI) in the retail sector will benefit the farmers in a big way by cutting down the supply chain, resulting in better price realisation and standardisation of products, said an industry expert.
"Chains like Wal-Mart and others will definitely not procure their raw material requirements from the intermediaries and will set up either their own collection centres or look for companies that will provide the facility," said Bharti-Rothschild Enterprise, Field Fresh President and Chief Executive Officer Ravi S Deol while talking to PTI on sidelines of a seminar here recently.
He said that his company can also think of providing the services to the retail chains in coming time.
Out of the total production of approximately 132 million tonnes of fruits and vegetables in the country around 35 per cent gets wasted because of dismal food chain integrity, poor shelf life and other infrastructure barriers, he said.
Despite being second largest producer of fruits and vegetables the country still constitutes only less then two per cent of of 520 billion dollar market worldwide that is very low, he said.
Pointing at an earlier study he said India needs a total investment of 32 billion dollar in the food chain to scale up the processing industry from the present low two per cent to ten per cent in the next ten years, he said.
In the line of agri business Field Fresh is also taking some measures and setting up a Research and Development facility at Ludhiana with an investment of 11 million dollar, perishable centres near Delhi and Amritsar airports along with post harvest centres, said Deol.
Company is also in talks with the government authorities for the purchase of DC-10 cargo planes and is hopeful that in an year three to four flights every week would deliver fresh fruits to the European markets, he added.
"Chains like Wal-Mart and others will definitely not procure their raw material requirements from the intermediaries and will set up either their own collection centres or look for companies that will provide the facility," said Bharti-Rothschild Enterprise, Field Fresh President and Chief Executive Officer Ravi S Deol while talking to PTI on sidelines of a seminar here recently.
He said that his company can also think of providing the services to the retail chains in coming time.
Out of the total production of approximately 132 million tonnes of fruits and vegetables in the country around 35 per cent gets wasted because of dismal food chain integrity, poor shelf life and other infrastructure barriers, he said.
Despite being second largest producer of fruits and vegetables the country still constitutes only less then two per cent of of 520 billion dollar market worldwide that is very low, he said.
Pointing at an earlier study he said India needs a total investment of 32 billion dollar in the food chain to scale up the processing industry from the present low two per cent to ten per cent in the next ten years, he said.
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In the line of agri business Field Fresh is also taking some measures and setting up a Research and Development facility at Ludhiana with an investment of 11 million dollar, perishable centres near Delhi and Amritsar airports along with post harvest centres, said Deol.
Company is also in talks with the government authorities for the purchase of DC-10 cargo planes and is hopeful that in an year three to four flights every week would deliver fresh fruits to the European markets, he added.
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