The Hindu Business Line : US sees growth in processed food export to India

Mumbai, Feb. 16 Cereals and snack foods are the most lucrative processed food items for export to India from the US, according to Ms Teresa Miller, Program Manager – Generic, Food Export Association of the Midwest US.

Developing market

“For us, Mexico is number one in export of processed foods, followed by Korea, who have the Free Trade Agreement with the US. Right behind China and Japan, we foresee the growth in exports to India, which is a developing market and retailers are open and willing for tie-ups,” said Ms Miller. They plan to introduce branded US snack foods, cereals, ingredients, dressings and sauces to the Indian market, among other products.

Partnerships

The Food Export Association exports fruits, vegetables and convenience food items and helps promote US brands. They plan to forge long-term partnerships between US suppliers and Indian importers, mainly, independent retailers or retail chains. India has become an important export destination for the US in the convenience foods segment, due to the promised growth of the retail sector. The Food Export Association is in talks with Indian retail chains such as Spencer’s, Reliance and others to forge partnerships for US food brands, she said.

Under the partnership, the association would bear a part of the advertising expense incurred in brand promotion, said Ms Miller.

Price of imports

Delhi-based SCS Agribusiness Consultants Pvt Ltd together with the association, have helped import grapes, prunes, Washington apples and Turkish hazelnuts from the US. Mr Sumit Saran from the group said that the price of imports tends to be high initially, but as volumes increase, prices decrease. “Initially, five to six years ago, apples from abroad cost Rs 120 per kg and Indian apples cost Rs 40 per kg. But now, Indian apples have upgraded to Rs 60 per kg, while the foreign ones are at Rs 90 per kg.”

Mr R. Roger Romrell, senior adviser to various US and Asian food companies, said that there was huge scope for for private label food items as that contributes to a profitable portion of any retailer’s sales.

More Stories on : Exports & Imports | Foods & Food Processing | Foodgrains

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