Survey Predicts Moderate To High Growth For the Food Processing Sector
18th November 2013 12:17 - FMCG
In a quarterly survey conducted by its manufacturing division, the Federation of Indian Chambers of Commerce and Industry (FICCI) predicted a moderate to high growth rate for the food processing sector. Survey findings suggest that three-quarters (75%) of respondents in the fast moving consumer goods (FMCG) and food sectors reported higher production levels in the quarter ended September 2013 (Q3), compared to the same quarter last year.
Among respondents, all expected to register higher production levels in the last quarter of the year (Q4). It was estimated that they would grow in the range of five and twenty percent, compared to the production levels of the corresponding period last year.
The survey also found that capacity utilisation stood at more than four-fifths (86%) in the FMCG sector and food sectors - more than that of last year for most firms. Among FMCG respondents, all planned to increase their capacity in the range of five and twenty-five percent over the next six months.
Three-quarters of respondents expected to see an increase in exports throughout the last quarter of 2013, compared to the corresponding period last year. Furthermore, about half of the FMCG and food processing respondents stated that they had larger than average inventories – a quarter (25%) cited that their inventories were lower than average.
D V Malhan, Executive Secretary At All India Food Processors’ Association (AIFPA), said:
“I expect the processing sector to grow even more in the coming days. We expect more steps from government for the further improvement in this sector.”
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