The food processing sector is poised to grow over the next three to five years. The “Compendium of Financing Options for the Food Processing Sector” aims to address the most critical aspects of the business and illustrates the financing options for the food processing sector.
The key highlights of the report are that while USD 53 billion credit limit was sanctioned by the commercial banking sector to the Food Processing Sector (as on December 31, 2016), it is not sufficient in helping the food processing in achieving its potential and is more skewed towards primary processing sub-sector (65% share) instead of the high value adding secondary processing sub-sector, which is the actual profit earner for the economy. The report also brings forth some of India’s unique initiatives in financing agriculture and agri value chain by showcasing financing options available from institutions like the National Bank for Rural and Agricultural Development (NABARD) offering about UBD 2.08 billion specifically for food processing and related projects, Small Farmers Agriculture- Business Consortium (SFAC), Small Industries Development Bank of India (SIDBI) etc.
It also provides detailed information on the initiatives and reforms being introduced by the Ministry of Food Processing Industries to boost the food processing in the country through Pradhan Mantri Kisan Sampada Yojna, with a budget of INR 6000 crores (USD 900 million).
It thus showcases the full range of financing options available and also captures weak areas. The report attempts to provide a context to stakeholders visiting World Food India for their discussions with financial institutions at the event.