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CHENNAI, Feb. 7

QUALITY in agro-products is a key issue that India will have to address to enhance exports to developed countries, according to Mr A.C. Muthiah, Senior Vice-President, Federation of Indian Chamber of Commerce and Industry.

While India was rapidly opening up its market and cutting down on quantitative restrictions in imports, other countries were not as vigorous in opening up their markets. For instance, a number of countries in the EU impose stringent quality standards that are a barrier to Indian products. Countries are finding means to restrict entry of other countries' products within the structure of the WTO, he said.

However, there could be an argument in favour of such restrictions, and we will have to improve technology and quality standards, he said. India was among the largest producers of fruits and vegetables and dairy products. But it was handicapped by bottlenecks in infrastructure establishment such as cold chain and an organised marketing structure. There were too many middlemen between the farm-gate and the retail markets. All these contribute to large wastages and add to cost, he said.

Mr Muthiah was addressing a press conference here on Thursday in connection with two international exhibitions and conferences on packaging and food technology. The IndPack 2002 International and the International FoodTec 2002 are to run concurrently between February 9 and 12 in Chennai.

Ms Parna Dasgupta, Secretary-General, Confederation of Indian Food Trade Industry, an affiliate of the federation, said that the results of a survey on consumer preferences in packaged and processed foods, conducted by the confederation and a Delhi-based consultant will be presented at the seminar.

The high cost of packaged foods is a major factor affecting consumer acceptance. About 25 per cent of the retail price could be attributed to local taxes. The confederation has taken up with the Government the issue of reducing excise on packaged food products, she said.

Organised by CIDEX Trade Fairs Pvt Ltd, both the exhibitions will provide an opportunity for the launch of new products, identifying marketing agents and joint venture partners and enhance public awareness. The Indian Institute of Packaging, under the Commerce Ministry, will organise the conference on packaging while the confederation will organise the food technology conference. Over 200 exhibitors will be showcasing their products and services.

CIDEX is a joint venture between the Germany-based Messe Dusseldorf GmbH and KolnMesse International GmbH, which organise international trade fairs on packaging and food technology such as Interpack and Anuga.

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