Giving a voice to investor concerns, the Food Processing Ministry is pitching for foreign direct investment (FDI) in non-food items, along with food products, under the multi-brand retail policy.

Food Processing Minister Harsimrat Badal told reporters here on Monday that the decision required Cabinet nod and she had forwarded suggestions in this regard to the Prime Minister’s Office.

“I have placed their (foreign investor) suggestions before the Prime Minister’s Office and a Cabinet decision is required,” she told reporters after a meeting with State Food Processing Ministers and representatives to discuss the three-day World Food India to be held in the Capital from November 3.

Asked by when the decision on FDI in the non-food segment could be taken, Badal said: “I think before the mega World Food India event in November, this will be done.” Badal, who has been meeting foreign investors from across the world, said several countries had demanded that they be allowed to sell non-food items along with food products processed and manufactured in India under the multi-brand FDI policy.

India allows 51 per cent foreign direct investment (FDI) in multi-brand retail while there is no cap in single brand retail.

As of now only imported food products manufactured in India can be sold here.

However, before getting into local manufacturing, many foreign companies had expressed concern about whether their products would be liked in India, the Minister said, adding that to give these companies a platform, the Ministry has decided to set up a ‘Food Street’ during the mega food event where foreign companies will showcase their products.

“If the products are liked, these will be manufactured in India,” she added.

The Minister also launched a draft model food processing policy, adopting ‘best practices’ from States. The draft norms will be put up for public comments and a final policy is expected to be unveiled before the November world food fair.