The Government is expected to permit foreign companies to import certain key ingredients like flavours and preservatives under the proposal to allow 100 per cent FDI in the food processing sector.
The Centre may also permit players to retail their products online, sources were quoted by PTI as saying.
Sources were further quoted by PTI as saying that since some key ingredients of a product may not be available in India, the Government may permit companies that want to set up units in India to import those inputs.
The Department of Industrial Policy and Promotion (DIPP) has proposed to allow 100 per cent foreign direct investment (FDI) through government approval route in marketing and selling of food products produced and manufactured in India.
The DIPP, under the Commerce and Industry Ministry, deals with FDI related matters.
However, another source was quoted by PTI as saying said the Food Processing Ministry is insisting on making it mandatory for foreign players to invest a minimum of about 25 per cent of their total investments in rural ares to create infrastructure like cold chains to benefit farmers.
The Government has said FDI in food processing will help farmers, reduce wastage of fruits and vegetables, give impetus to the industry and create vast employment opportunities.
During April-December, FDI into the country grew by 40 per cent to $29.44 billion.