FDI Relaxation in E-commerce Will Help Grocery Startups
The relaxation of FDI norms in e-commerce will help grocery startups access funds more easily, domestic ratings agency Icra said today.
"The move to open up the domestically manufactured food products sector to FDI will enable farmers to directly sell their produce to retailers, thereby reducing margins for middlemen," it said in a report.
"Further, potential investments by the investors in cold-storage and warehousing will ease supply-side pressures and arrest wastages, that have been driving inflation," it added.
In the present scenario, lack of investment in logistics and inadequate storage facilities have been creating inefficiencies in the food supply chain, leading to significant wastages.
Relaxation of local sourcing riders for single brand retail, which has been...