Released on: September 28, 2007, 2:34 am

Press Release Author: Shushmul Maheshwari

Industry: Food & Beverage

Press Release Summary: The Indian govt. will go to public sector for investment in
agriculture sector to overcome infrastructure constraints. It will develop cold
chains, warehousing and transport facility, and centers and spice parks to handle
agro perishables' exports.

Press Release Body: According to the recent market research report "Indian Food and
Beverages Forecast (2007-2011)" by RNCOS, presently, India has around 7,2523
regulated agricultural markets and a majority of them are devoid of critical
infrastructure. As a result, huge investment is required to build critical
agricultural marketing infrastructure. A minimum of around Rs. 12,230 crore is
estimated for the regulated markets. The economic conditions in rural India and
private sector have no basic infrastructure essential to build up adequate buffer
stocks even and also, the country is not free of weather shocks.

So to remove infrastructure blockage, the Indian government is looking to private
sector for investments in the agricultural sector by developing transport
facilities, cold chains, and warehousing.

As per the news published by My Iris on July 17 2007, Kamal Nath, Commerce and
Industry Minister, in his meeting with the parliamentary consultative committee,
said that the private sector would support the public investment in agro-expert
sector. Nath admitted the major problem faced by the Indian agricultural in general
and agro exports in particular is the infrastructure. He further stressed the need
to bolster the transportation facilities, cold chain network, and warehousing
facilities to minimize the wastage and to ensure the good quality of the products.

Members at the meeting revealed the urgency to establish recognized laboratories in
India whose certifications are accepted worldwide for export purpose. In order to
handle agro-perishable exports, the Agricultural and Processed Food Products Exports
Developments Authority will set up total 12 centers are to be set up in the nation
at the cost of Rs. 25 Billion (Rs. 2, 500 crore). The Commerce Minister has also
announced to build 6 spice parks across the nation for various spices besides
setting up 12 centers to handle the exports of agro-perishables.

According to the statement made by APEDA Chairman KS Money, which was published in
RediffNews on July 17, 2007, the centers will be set up in Guwahati, Chandigarh,
Agra, Muzzafarpur, Nagpur, Kolkata, Nasik, Dharampuri, Pune and Rai Hyderabad.

In the five-year period from 2000-01 to 2005-06, Agro exports grew at a CAGR 9.4%.
In 2005-2006, total agro exports reached more than Rs. 42,360 crore. As per the
RNCOS report, spices, marine products, sugar, nuts, and grains account for a major
part of the agro exports.

About RNCOS E-Services Pvt Ltd.:

RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of
industry experts who analyze data collected from credible sources. They provide
industry insights and analysis that helps corporations to take timely and accurate
business decision in today\'s globally competitive environment.

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