Indian Food Industry - Price sensitivity is a vital factor

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Published: 21st February 2011
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Indian market is quit price sensitive. Therefore, in many cases the imported machinery stands quit expensive for the entrepreneurs. There is the need to manufacture or assemble using foreign technology at local level also, which fit into the Indian atmosphere and budget, in collaboration with foreign manufacturers. Undoubtedly, the international standards are needed to be maintained in all the cases. That way, the total project cost becomes less, reduces the cost of maintenance and thus the price of final product for the consumers. The purchasers are also required to understand the actual necessities, the cost of maintenance and the high performance for the continuous out put, specifically in case of medium and small manufacturers. Many foreign machinery manufacturers are opting for tie up with local manufacturers to cut down the labour cost, as the labour cost in some of the developed countries is quit high, which affect the cost of machinery. The cost of machineries and equipments affect the total cost of the project. Off course, realizing the magnitude and potential of the equipments and machineries in India, for the industrial production of ethnic, regional and innovative food products, the foreign and Indian manufacturers of machines do regular analytical surveys of the industry. Also unorganised sector should regularly take benefits out of incentives provided by Government and utilize the technological developments in the form of modern equipments and machineries to compete with the quality, hygiene standards and retail boom etc.

As yet more things are to be considered and done to expand the use of latest machineries among industrial players and unorganised sector like the exposure of technologies and explanation about their advantages. It is quit vital to make people understand about economic benefits as per present marketing necessities and future aspects. In this direction, government, technology transfer agencies and machinery manufacturers need to make continuous efforts. The outputs like well defined ethnic and regional products, innovative products, more value additions, inventive packaging, completely hygienic production, production as per norms and issues maintained by the government and awareness among consumers regarding value added products are imperative factors, which would attract existing and new entrepreneurs towards latest machineries on larger scale. It is quit important that small and medium entrepreneurs should analyse the reasons behind the diversion of general consumers towards products of big players and organised retailing, which is somehow affecting the business of unorganised sector, specifically the units working without the help of latest technology.

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