kamal nath calls for building indian food brands international seminar on processed food products

Friday, March 11, 2005

Shri Kamal Nath, Union Minister of Commerce & Industry, today called for the building of brands for Indian food items. Inaugurating an International Seminar on “Emergence of India as a Significant Global Player in Processed Food Products”, organised here by All India Food Processors’ Association, the Minister emphasised India’s potential to create brands for a variety of food categories just as successful food exporting countries have built-up brands for their specific products like Columbia Coffee, Dutch Tulips, New Zealand Kiwi and India’s own Darjeeling Tea. “Similar brands could be developed for other select products where the potential to create global differentiation is possible like Alphonso Mango and Shimla Golden Apple and Malabar Pepper”, he said.

Shri Kamal Nath said the aim should be to make India the “Food factory of the world” so as to generate income and employment in a big way. But for this, the farmer and his needs would have to be factored in since a major challenge was to provide remunerative prices to farmers for their produce without incurring the additional burden of subsidy through minimum support prices or other such measures. “This challenge could be addressed if cereals, fruits, vegetables, milk, fish, meat and poultry are processed for consumption in the domestic and international markets. The impact of increased economic growth in agri-business through food processing can play a significant role in reducing rural poverty and increasing rural income”, he stressed.

The international agricultural trade is about 600 billion dollars today. India’s export of agricultural and food products constitutes just about 1.4% of total global trade. Of this, food & agri-products constitute about 12%. While the magnitude of Indian exports is still small, India is establishing her presence in the export of specific food products such as grapes and mango pulp. Shri Kamal Nath pointed out that global consumer trends towards organic food and herbal products would open up export opportunities in areas where India was well positioned to compete.

Expressing concern over non-tariff barriers (NTBs) such as sanitary and phyto-sanitary (SPS) conditionalities based on real or imagined health and environment standards which could nullify the efforts at exports, Shri Kamal Nath said: “We are not unconcerned about health safety and environmental protection. Indeed, we are committed to support these. What we oppose is NTBs with commercial intent, masquerading in the guise of health & environment. This is what we have to guard against. India has included this as a major agenda item in the G-20 discussions we shall be having in a fortnight’s time, when Ministers from 20 countries will be gathering in New Delhi”.

SB/MRS