NO THOUGHT FOR FOOD

India’s ambitious attempt to develop large food processing hubs across the country has not yielded the desired results. At the heart of the failure lies a tale of misguided policies, botched implementation and basic infrastructure issues

- SHWWETA PUNJ

When Varun Chaudhury, executive director of Nepal-based CG Corp Global, the makers of Wai Wai noodles, applied to build a food park in India, he expected the effort to be an extension of the work his company already does. A leader in the food processing industry, the Rs 13,000 crore conglomerate’s business in India spans several sectors, from FMCG (fast-moving consumer goods) to hospitality. Nonetheless, Chaudhury, who is steering the group’s FMCG arm, says he found the experience unexpectedly challenging, with what he describes as complicated and stringent regulations.

On the face of it, the government seems to be doing all it can to encourage the private sector to build and operate food parks—for instance, a Rs 50 crore cash subsidy is given as a grant to businesses that meet certain conditions, an incentive that Anand Jha, CEO of Pristine Foods, calls a “one-of-a-kind initiative”. What derails the effort is a host of nuts-and-bolts issues, from project allocations, land acquisitions, overcomplicated rules, poor marketing, and a lack of involvement by state governments.

FAST FOOD FACTS

• India is a global leader in food production

• Nonetheless, the country processes less than 10 per cent of the total output

• The food processing industry is valued at about Rs 85,000 crore

• It employs around 1.77 million people across 39,748 registered units