Question

Food supply channel in india total eplain

Answer 1

India is one of the largest food and grocery markets in the world and a large consumer of food products. Despite having a rich raw material base for food products, high food price inflation is becoming a major challenge facing the country. There is a shortage of supply due to issues in the food supply chain. The food supply chain is fragmented and only seven per cent of the perishable products are being processed. To counter this, the Indian government is offering several incentives to private and foreign investors in the food processing sector reflecting the government’s intention to attract investment. The large and unsaturated Indian market has attracted a number of foreign companies yet the country has not been able to be a part of their global production networks. There is a need for reforms in the food supply chain to enable India to reach out to its unrealised potential.
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