The policy proposal for foreign direct investment (FDI) in food retail will be considered by the Union cabinet post Parliament’s Budget session. According to an official privy to the development, the note prepared by the department of industrial policy promotion (DIPP) for the cabinet is likely to be considered soon.
Thereafter norms would be notified by the government thereby officially opening the food retail sector for FDI investment, which the minister for food processing was actively pushing for.
Meanwhile, according to reports, under the proposed norms for FDI in food retail, the government might allow companies to import certain key ingredients and flavours that require food product preparation. Further, it may allow certain class preservatives. Besides, there is a strong possibility for these products to be sold online, through e-commerce.
However, there is no official confirmation about the likely scenario under the policy for FDI in food retail.The details of the norms will be apparent once the note comes for consideration for the cabinet that will decide on the rules and regulations for FDI in food retail. The norms will also clarify whether there is any requirement for the investor to invest in rural sector, cold chain sector or farm gate level.
The DIPP has proposed to allow 100 per cent FDI through government approval route in marketing and selling of food products produced and manufactured in India. This was announced by the finance minister, in the Budget speech.
