The Indian dairy sector is poised for a giant leap forward with huge investment plans from domestic and multinational companies. The latest to join the list is world’s top retailer Wal-Mart, which plans to set up a dairy processing unit in India.
Walmart plans to source 15 lakh litres of milk per day directly from farmers in north Indian states at a premium to the prevailing prices. It would initial retail the dairy products in its international stores and later on in India when the Bharti retail stores start operations.
The regulations also favours entry of Wal-mart as in food processing sector, 100% FDI is allowed. Also, with the government expected to lift the ban on export of milk powder from September, it could mean better realisation for milk products.
Globally, the international milk prices have increased due to removal of subsidy in Europe and draught in Australia, so Wal-Mart needed to diversity its dairy products sourcing and India was natural option.
With international giants coming to Indian dairy sector, one could hope for a change in fortunes of Indian rural economy. Source
Find this article at:
http://www.labnol.org/india/corporate/wal-mart-plans-entry-into-indian-dairy-sector/1044/
web: http://www.labnol.org/
email: amit@labnol.org
Add a Comment