India seeking foreign investment in processed-food industry

Oct 13, 2007, 23:27 GMT

Cologne, Germany - India is seeking outside investment in its food-processing industry, both to increase food supplies and boost exports, a government minister said Saturday at the Anuga trade fair in Germany.

Subodh Kant Sahai, minister of state for food-processing industries, noted that just 7 per cent of food in India was currently factory processed.

'Seventy per cent of our population is in the agribusiness,' said the minister in an interview.

Farm and shop produce is far more important than in Western countries.

India needs advanced food-processing technology, whether home- grown or from abroad, to produce 'more food to fill up stomachs,' he told Deutsche Presse-Agentur dpa at the start of the five-day food fair in the city of Cologne.

Developing the industry is so important that New Delhi allows foreign investors to set up wholly owned food-processing factories in India without any local business partner.

On Sunday, India was to invite business leaders at the fair to enjoy the tastes of India at a special event in Cologne.

They were to be served at the India Day party with such specialties as samosa pastries and the juice of mangoes and jamun berries, as well as platters of curries and other substantial fare.

Anuga, the world's top fair devoted to food and a meeting place for the world's food traders, is held every two years.