NEW DELHI: Even as the Government looks to double India’s food processing exports over the next five years, a recent report by Dun and Bradstreet has suggested that the sector will register a subdued growth this fiscal due to a sluggish global demand.
According to the report, food exports are projected to remain subdued in 2017 due to slowdown in global demand, while the share of FPI related commodities to total exports could remain marginally moderate.
The exports of FPI and related commodities slumped by 18% y-o-y to $29.7 billion in FY16, in line with the falling trend in India’s overall outbound shipments.
Looking at the sector’s exponential growth prospects in future, the Government has set an ambitious target of doubling its processing levels to 20% by 2019 from its current 10%, D&B’s report said.
“While total cereal exports in FY17 would be close to last year's level due to tighter availabilities and moderation in demand, going forward we can expect a partial recovery as few countries have now opened their markets to Indian rice,” it added.