The Government is considering a proposal to make it mandatory for foreign players entering the food processing sector to invest part of their FDI in developing back-end agriculture infrastructure.
The food processing ministry has suggested that the Department of Industrial Policy and Promotion (DIPP) make it mandatory for the foreign investee company to invest a certain percentage of FDI in creating back-end infrastructure like transfer of modern farming technology, agri mechanisation, and marketing and cold chain infrastructure.
The ministry has also suggested for enhanced partnership between farmers and investee company for production and sourcing of improved varieties of agricultural produce, sources said. DIPP, which deals in FDI-related matters, is in the process of finalising a Cabinet note on the issue.