Commerce Ministry approves proposals for packaging sector

Hyderabad: The $23-billion Indian packaging industry is expected to get a significant boost, with the Ministry of Commerce and Industry giving an in-principle approval to take up the 10 proposals submitted by the Indian Institute of Packaging to enhance industry standards. The 10 proposals, entailing an investment of about Rs 60 crore, include setting up of food packaging laboratory, flexible intermediate bulk container testing laboratory at Chennai and an international packaging centre in Mumbai. The proposals will also involve construction of a new education complex in Mumbai for B.Tech course on packaging, besides establishment of new centres in Guwahati and Ahmedabad. “We have just given our (Ministry's) approval, which will be submitted to the Ministry of Finance to decide on funding patterns. All the proposals will be completed during the 12 {+t} {+h} Plan Period,” Mr J.K. Dadoo, Joint Secretary to the Ministry of Commerce and Industry, told media persons on the sidelines of the Indipack 2011 event here. The domestic packaging sector, which has registered a 15 per cent growth, is expected to grow at 18 per cent in the next few years to touch $40 billion by 2015. Currently, it accounts for 10 per cent of the global market, constituting nearly 400 billion containers in terms of unit volumes. India imports about $125 million worth packaging machinery from Germany, Italy, Korea and China, with some 600-700 machinery manufacturers operating locally. Mr Dadoo said food consumption in India was expected to touch $240 billion by 2013, necessitating innovative packaging solutions, especially in the area of “heat and eat” food products. India's per capita packaging consumption is less than $15, against the world average of $100, he added. On the wastage of perishable food items due to inadequate packaging and transportation, he said the proposal to allow 51 per cent FDI in multi-brand retailing may reduce this wastage, as the foreign retailers will largely depend on primary producers for farm produces. They are expected to bring in better packaging and supply chain solutions. The three-day Indipack, which includes technical conferences and an exhibition, was inaugurated by the AP Minister for Civil Supplies and Food, Mr Sridhar Babu.