Agro & Food Processing October 2017 by Advance Info Media & Events

India's Only Monthly News Magazine, Portal & App For Agro, Food & Allied Industries

Vol 12 Issue 12 October 2017 100/-

Robotics

New Frontiers in

Food Processing Increase in demand of Made In India

Food Processing Machinery Trends & Opportunities

Indian Packaging Industry in

The Nutty Affair

Cashew Industry in India

Food Safety A fundamental right

Analyzing the proactive role of Food Safety and Standards Authority of India (FSSAI)

Indian market

has huge potential

for branded food products Follow us on: www.facebook.com/foodprocessing.india

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CONTENTS 10

46 Food Safety a Fundamental right

The Iron Man of Indian Food Processing Industry

The Nutty Affair Cashew Industry in India

Increase in demand of Made In India Food Processing Machinery

Robotics New Frontiers in Food Processing

Nichrome now offers Secondary and Tertiary packaging solutions

Trends and opportunities in Indian packaging Industry

Indian market has huge-potential for branded food products

7th IICE witnessed unprecented footfall from ice-cream industry To ensure global market for farmersâ&#x20AC;&#x2122; commerce ministry to promote agri exports

EDITORIAL

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The views expressed in this issue are those of the contributors and are not necessarily those of the magazine. Though every care has been taken to ensure the accuracy and authenticity of the infomation,"Oil & Food Journal" is however not responsible for damages caused by misinterpretation of information expressed and implied within the pages of this issue. All disputes are to be referred to Mumbai Jurisdiction.

he food processing industry of India is all set to mark its authentic presence internationally. And why not?...This sector has achieved what seemed inconceivable at one time, it has created a niche for itself, and who are the backers, it’s the govt, the industry and the people or rather consumers. And today the Indian food industry is poised for huge growth, increasing its contribution to world food trade every year. The food sector has emerged as a high-growth and high-profit sector due to its immense potential for value addition, particularly within the food processing industry. World Food India (WFI), being held in partnership with Confederation of Indian Industry (CII), at New Delhi, India from 3-5 November, 2017, is the conduit which will place this industry at its helm. WFI is a global event, organized by the Ministry of Food Processing Industries, Government of India, that will facilitate partnerships between Indian and international businesses and investors. It would be a gateway to the Indian food economy and an opportunity to showcase, connect, and collaborate. The event will be creating a better sourcing environment, thereby enabling higher returns for farmers, creating employment, and fostering entrepreneurship. The Indian food processing industry accounts for 32 per cent of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth. Currently India's priority is to reduce its massive food waste and in this regard the Union minister for food processing, Harsimrat Kaur Badal has asked for American companies for help with their investment and technology. She aims to partner with US industry by borrowing best practices, technology, and innovation, in exchange for providing US companies with untapped investment opportunities that exist in India's enormous consumer base. Badal has also invited German companies to invest in India's food processing sector, claiming this segment has huge growth potential as only 10 per cent of food is being processed. The minister added that Germany is among India's most important partners bilaterally and in global context, and India is ready with open arms to welcome German companies. As the fastest growing major economy in the world, India possesses USD 600-billion retail sector, of which 70 per cent is food retail. This market is set to triple by 2020. In addition, an average Indian spends almost 40 per cent of income on food. Another milestone achieved this month is that India has asked for a permanent solution to the food security issue at the World Trade Organisation (WTO) ministerial gathering in Marrakesh, Morocco, as it assumes "tremendous importance" to the country and several other developing nations. This significant issue on food security was raised by the Commerce and Industry Minister Suresh Prabhu. The solution on this issue would give a strong signal of determination to end hunger and achieve food security, as mandated in the UN Sustainable Development Goal 2. Further emphasising on the importance of special and differential treatment given to developing countries in the WTO, the minister stated that India would be willing to engage on proposals that recognised this right for all developing countries without exception. He emphasized on this because of alleged cutting of "disproportionately" large subsidies given by developed countries to their farmers. India has about 600 million people who are dependent on agriculture and nearly 98 per cent of the farmers here are in low income or resource poor and mostly engaged in subsistence farming. So with such circumstances, it was vital for India to balance trade liberalization with the need to protect the livelihood of its farmers. Mini Food Park is a good idea! To raise the processing level the government plans to set up of mini food parks, and has appealed the industry to buy agri items directly from farmers to boost their income. The farmers' income will not be doubled unless their produce is procured directly. And this step will also help processing sector, which will also get its raw material at cheaper rates and better quality if they buy agri produce directly from farmers. The mini food park project will be done under the new Rs 6,000 crore SAMPADA scheme approved by the government recently, also the ministry provides subsidy of up to Rs 50 crore to set up a mega food park. Food processing industry has duties that are of great importance, and with festive season on, it’s important for all food companies in both organised and unorganised sector to practice food safety and hygiene. It is important to make festival rejoicing, and to avoid this adulteration has to be detected and perceived. FSSAI is keeping a close look on this issue and hopefully we all have safe Diwali this year. Let’s Fill Our Homes With Prayers, health & Light Not With Fumes & Crackers. With Gleam Of Diyas, And The Echo Of The Chants May Happiness And Contentment Fill Your Life Wishing You & Your Family Very Happy And Prosperous Diwali!

Agro & Food Processing October 2017

SPECIAL FEATURE

The Iron Man of

Indian Food

Processing Industry

The episode is real and so is the strength, here we are talking about Manoharlal Agrawal, CEO, Haldiram, whose biggest factory went down to ashes last month, amid Diwali preparation. But the strength and morality exhibited by this man was so applaudable that we salute him with the title of “The Iron Man”

aldiram, the biggest brand in the snacks and namkeen sector faced an unsolicited crisis when its largest factory located at Sec-68, Noida, was ruined by fire. This incident occurred in September just before the preparation for Diwali.

covering the entire multi-floor factory, and it took a good couple of hours to control the fire by 100 fire tenders and more than 200 firefighters. By the time the firefighters could cool it down almost every things was burned including machinery and steel in the factory.

Diwali is an auspicious occasion when most of the big manufacturers start stocking up, as the requirement and demands go up. Also post Diwali, the marriage season starts alongside winters and this is the time when consumption of snacks and Namkeens picks up and sale zooms up. This is the time when the companies keep maximum stocks, raw materials, packaging materials stocked in factories. Each one of these materials is highly inflammable.

This news was covered by almost all the national dailies and electronic media but today this magazine provides a different perspective of the entire episode. Because of this fire outbreak, Haldirams not only suffered a loss of Rs 350 cr in the factory which included materials and machinery but also market share due to no supply from this unit.

Undoubtedly this is the reason fire did not take much time to spread in the factory of Haldiram. The fire extended in minutes

Practically everything in the Haldiram’s factory was burnt down to ashes, but the positive part was that no one was hurt or killed during this enormous fire outbreak. After this incident, everyone believed that Haldiram’s Diwali preparations were

Agro & Food Processing October 2017

over and that the factory would take at least a year to rebuild everything and to reach full capacity. When the fire took place CMD of the group, Manoharlal Agarwal was in Europe, but returned immediately and took charge of the situation. And what he did was not less of a miracle; Manoharlal Agarwal evenhandedly started the work of reconstructing, rebuilding and reinstalling the factory immediately. He did not compromise on anything and reinstating the factory with state-of-art machinery to meet all the market demands. Manoharlalji’s command and expertise in the market, magnificent relations with business acquaintance and understanding of trade and industry helped him in to getting his factory back to work in a phenomenal time – A true modern factory, just like that of factories of his brothers in Bikaner and Nagpur, his close

SPECIAL FEATURE

friend from Indore and an unexpected so-called competitor from Rajkot, Balaji Namkeens, Chandubhai Virani, who is an equally compassionate and seasoned person in namkeen business. Mr Virani stood by Manoharlalji through this trying period, showing the food industry has healthy competitor but no rivals. The spirit of business stood alive during this trying period and when Manoharlalji was asked about this, his humble answer was, “I never saw Chandubhai as a competitor but rather as a friend who is always there when needed and vice versa. In fact, he is like my fifth brother and he also gives me the same regards.” Manoharlal Agarwal is an Iron Man, who has faced a lot of difficulties but has always stood strong. He is the man behind the growth of Haldiram from a traditional mithai and namkeen manufacturer to a

giant food processor in the country. He has faced many ups and down during his voyage. Decades back, he lost his shop during riots post Indira Gandhi’s assassination in Old Delhi, and had to restart his business from the scratch and created Haldiram. He is known to be a very compassionate person with immense knowledge about the industry and trade. He is also nicknamed as Babuji in the industry circles, as he is a philanthropist and one of the strongest humans who face trials with courage. It was a humungous challenge to reconstruct the entire multi-floor building as early as possible. Manoharlalji gave time till December 2017 to rebuild the factory as it does take time to bring stateof-art machinery and deliver it. It was impossible to build this without a genuine help of some eminent people, like his

close associate, Manoj Paul, Heat & Control, South Asia & Country Head. Paul made a commitment to deliver all that is needed for the factory by the time the civil work is over. This is only due to the simple and honest relationship Manoharlal Agarwal shares with his associates, vendors and suppliers. Manoj Paul has specified that it is his team’s responsibility to deliver machinery in record time as Manoharlal is a close customer and Heat and control all set to complete its commitment on time. Manoharlalji astonished his listeners at an association meeting last week, as the Iron Man showed no signs of any kind of loss on his face. Rather he was most optimistic about the whole issue and said, “We will re-create what we lost and entire Mithai and namkeen industry is a family that is standing with me and undoubtedly this trying period will pass in a jiffy”.

Agro & Food Processing October 2017

THE NUTTY AFFAIR

The Nutty Affair Cashew Industry in India

ashew (Anacardium occidentale L.), a tree native of Eastern Brazil, was introduced in India by the Portuguese nearly five centuries ago. In India, cashew was first introduced in Goa, from where it spread to other parts of the country. Initially, it found use in soil binding to check erosion.

nutrient features of cashew nuts like seeds are obtained from the bottom of the false fruit of this tree, which is termed as cashew apples. The Cashew nut can be seen sitting smugly under the soft belly of the cashew apple. Cashew seed is the food product. It is placed third among the largest consumed tree nuts in the world.

Commercial cultivation began in early 1960s and over the years, cashew became a crop with high economic value and attained the status of an export-oriented commodity, earning considerable foreign exchange for the country.

â&#x20AC;&#x153;The commercial production of cashew seed is done in more than 32 countries of the world, mostly in hot and dry agro climatic conditions suitable for cashew cultivationsâ&#x20AC;?

Cashew is a tropical evergreen tree known for its seed worldwide. It flowers once a year between the month of November and January. The sweet, flavored and

Now it has become the number one crop in the world. Cashew was introduced in Goa by Portuguese during 16th century. Today this crop is one of the major cash crops of Goa covering an area of 5, 12,000 hector.

Agro & Food Processing October 2017

Since its introduction, cashew has very well adapted to Indian climatic condition and it is grown in the east and west coastal region of India. Later it spread as popular crop to other parts of India. Indian cashew industry There are 32 countries that successfully cultivate cashews. Among these Vietnam, India and Brazil are the top three producers and processor of cashews. Cashew Kernels are facing stiff competition from other edible nuts like almonds, walnuts, pistachios, macadamia nuts and hazel nuts and India also facing competition from Vietnam and Brazil. India has 24% of the global area under cashew but contributes only 19% of global production of global production. Vietnam

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THE NUTTY AFFAIR

theoretical background on the problems and prospects of Indian cashew”

with 10% of the global area contributes an average yield of 2.8 tons per hectare, as against India’s around 800 kg. India was the first country that started exporting manually processed cashew nut. These processing operations were performed by experienced skilled workers. In general, Indian processing system involves lower investment and variable costs and achieves far efficiency in terms of kernel. However this system requires large number of experienced workers who work at unhealthy level of exposure to CNSL. ‘Cashew has the potential to increase the income of poor producers, to create employment opportunities during harvesting and processing and to increase exports” India is one among the largest producer, processor, consumer and exporter of cashew in the world. Over 31 per cent of the world export of cashew kernels is accounted by India. Cashew kernels from India are consumed by as many as 60 countries all over the world. The major markets being the United States, the United Kingdom, Japan, Netherlands, Australia, Canada, Germany, Hong Kong, Singapore, New Zealand and Middle East countries. The Indian cashew kernels are well acclaimed for its good quality, taste and appearance. This crop intended to check soil erosion has transformed into a major foreign exchange earner in the country. Cashew nut processing industry in India partly relies on the imported raw cashew nuts owing to inadequate production of the same within the country. “Since Indian cashew has reputation of superior quality in the international market, it is also desirable for the cashew exporters from India particularly from Kerala to develop

Domestic production of raw cashew nut India has always been a major player in the production of cashew. It is the largest producer of raw cashew in the world. The major states in India in which cashew have been cultivated are Kerala, Karnataka, Goa, Maharashtra, Tamil Nadu, Andhra Pradesh, Orissa and West Bengal. The production of cashew in India has been fluctuating during the recent years. “In India, Maharashtra produces more cashews compared to other states. Poor qualities of cashews are grown in some states, which is due to the wrong harvesting techniques” Maharashtra produces 31% of total production from India. Kerala has been standing at fourth position. They produce 11% of total production. The raw cashew nut requirement of cashew processing industry in India is estimated to be over 12 lacs per annum and the availability is about half of this. The balance is met by import from other producing countries. The Govt. is taking initiative in this direction by promoting re-plantation, expansion of new cultivation etc. The Kerala Govt. has set up a special agency (Kerala State Agency for Cashew Cultivation) for promoting cashew cultivation. The major trading centers in India are, Palasa, Cochin, Quilon, Mangalore, and Kollam. “The Government has contemplated various developmental measures to attain selfsufficiency in production of raw cashew nuts in the States” Import of raw cashew nut Due to the wrong harvesting technique and aging of cashew tree adversely affect the domestic production. Now India’s domestic production is around

Agro & Food Processing October 2017

7 lac tones while their processing capacity is about 14 lac tones. Hence India has to depend on imported raw cashew nut for more than half of the requirement. Four tons of raw cashew nut needs to be processed for producing one tone of cashew kernels. “Raw cashew nuts imports have increased significantly even as exports of cashew kernels continue to drop in the current financial year” A strong domestic demand for cashew kernels due to significant rise in consumption without corresponding growth in raw cashew nut production in the country is cited as the reason for rise in imports. At the same time, raw cashew nuts are also shipped out of the country, of late, to Vietnam. Indian cashew processors having processing facilities abroad might be shipping out from the imported raw nut stocks to their units in Vietnam. Imports of raw nuts during 2017 were 6, 86,765 tonnes valued at Rs. 4,547.74 crore. The unit value of the import was Rs. 66.22 a kg. As against this, imports in the corresponding period last fiscal were at 5, 61,971 tonnes valued at Rs. 3,051.72 crore at the unit value of Rs. 54.30 a kg. Whereas, the country has exported 1,999 tonnes of raw cashew nuts valued at Rs. 16.39 crore at the unit value of Rs. 81.99 a kg, according to Cashew Export Promotion Council sources. Domestic markets can absorb some 2.5 to 3 lakh tonnes of cashew kernels of various grades, while exports are around 1.25 lakh tonnes from the organised sector, which sells an equal quantity in the domestic market.

THE NUTTY AFFAIR

16 At the same time, 1.25-1.50 lakh tonnes of cashew kernels are marketed by the unorganised sector. Prices of wholes, currently, range between Rs.800 and Rs. 1,000 a kg and even at this rate there is a strong demand. In the international market, the average price is below Rs.450 a kg. Export market of Indian cashew Currently Vietnam is spoiling India’s plans to raise its cashew exports as it has cornered a large share of raw nuts from West Africa for processing. As a result India's cashew export has been falling in the last two years. From 1.2 lakh tonnes in 2014-15, it plummeted to 82,302 tonnes last year. ‘’Zooming price of imported raw nuts and dip in export prices have made export unviable for India’’ India imports over 60% of its raw nut requirement for processing. Vietnam has been buying raw nuts from requirement for processing and to meet its export requirement. As a result the raw nut price has escalated to $2450 per tonne. As its processing cost is lower, Vietnam has been selling below India’s rate. The US and Europe have started buying from Vietnam as its cashew is cheaper though ironically Indian cashew is superior in quality. Thus the Indian cashew industry need urgent support from the government through incentives for export. "Aggressive selling by Vietnam has pushed down the cashew prices in the export market. It has tumbled from over $ 5 per pound to $4.8" But India is hoping to buy more raw cashew of better quality from Indonesia and East Africa, also the Indian production is better than last year which may meet the needs of local manufacturers. Indian cashew industry is gearing up for good domestic season with the onset of festival season. Post GST the stock of most traders is empty and hence they are likely to buy to raise inventory. At present the price in the local market is around Rs 810 per kg compared with Rs 725 per kg in the export market. The prices may rise further when the festival season begins. “Export earnings from cashew and allied products during FY 2015-16 stood at US$ 765 million” Cashew Export Promotion Council of India

Key markets and export destinations • India is the largest cashew processor in the world (25 lt of raw cashew nut per annum) • Export of Cashewnut shell liquid/Cardanol from India stood at 3,394 tonnes, valued at Rs 13.01 crore (US$ 2.01 million) during April-July 2016, while exports of cashew kernels stood at 81,110 MT (provisional) in FY 2016-17, valued at Rs 5,077 crore (US$ 786.59 million). • Export earnings from cashew and allied products during FY 2015-16 stood at US$ 765 million. • India accounts for about 65 per cent of global cashew exports. • India exports cashew kernels to over 60 countries. Its major markets are the US, the Netherlands, Japan, Spain, France, Germany, the UK as well as Middle East countries such as the UAE and Saudi Arabia. • US is the largest market for Indian cashew kernels, followed by the UAE and the Netherlands, while Indian Cashewnut shell liquid is largely exported to South Korea, followed by China and the US. The Cashew Export Promotion Council of India (CEPCI) works to promote the export of cashew kernels and CNSL. The council serves as an intermediary between importers of cashew kernels and exporters who are members of the council. It also deals with disputes on exports/imports arising due to quality standards and breach of contractual obligations, among others. It undertakes numerous activities, such as organizing global buyer-seller meets as well as studies on nutritional aspects of cashew, and providing support to cashew processors and exporters for improving infrastructure. The Cashew Export Promotion Council of India (CEPCI) is preparing a strategic business plan ‘Mission 2020’ aimed at boosting the cashew industry and exports of cashew kernels in particular. CEPCI Chairman P. Sundran said that the suggestion for Mission 2020 from Suresh Prabhu, Union Minister of Commerce and Industry was one of the major achievements of the meet. The Minister said that the government would consider withdrawing the 5% duty on raw cashew imported outside the Advanced Authorization Scheme. The CEPCI members brought to the attention of the Minister the threat posed by the Indian cashew sector from kernel import from Vietnam. The Minister said the government would consider the suggestion to hike the import duty on kernels to 70%. Market leader In a steadily growing $30-billion global tree nut market, the cashew nut segment will continue to lead, and it is expected to account for 28.91 per cent of the

Agro & Food Processing October 2017

market by 2021. The walnut segment is anticipated to trail next. “Asia-Pacific is the clear leader in terms of geography, accounting for 92.62 per cent of the nuts market by 2021. However, North America is expected to lead in the seeds market, accounting for 35.15 per cent by 2021” World consumption of cashew, according to available data from the INC, was at 7,16,682 tonnes in 2014 as against 4, 69,241 tonnes in 2010. Of this, Indian consumption was at around 2.4 lakh tonnes, while the US absorbed around 1, 50,000 tonnes. Meanwhile, the declining trend continues in Indian cashew exports with AprilNovember 2016 shipments dropping 28.04 per cent to 50,267 tonnes valued at Rs. 2,982.72 crore, from 69,856 tonnes valued at Rs. 3,364.31 crore in the corresponding period last year. Exports in November 2016 fell 38.89 per cent to 6,500 tonnes from 10,637 tonnes in the same month last year. There has been a substantial increase of 49.36 per cent in the unit value, which shot up to Rs. 632.31/kg last month from Rs. 423.36/kg in November last year, according Cashew Export Promotion Council of India (CEPCI). The processors do not enjoy a level playing ground due to (i) high cost of production, (ii) inadequate support/ incentives from the State/Central governments, (iii) high cost of funds, (iv) stagnant overseas markets due to recession and (v) competition from Vietnam and other processing countries which were

THE NUTTY AFFAIR

Total imports dropped during the period by 30 per cent to 5,69,304 tonnes valued at Rs. 6,109.19 crore, from 8,11,007 tonnes valued at Rs. 6,954.02 crore. The average unit value has increased 25.61 per cent to Rs. 107.31 a kg from Rs. 85.75 a kg in AprilNovember 2015. traditionally suppliers of Raw Cashew Nuts to India.All these factors, coupled with high Raw Cashew Nuts prices and the unattainable Standard Input Output Norms (SION) fixed by the Directorate General of Foreign Trade for the cashew sector, have resulted in the continuous decline in exports and a corresponding fall in raw material imports. Imports of Raw Cashew Nuts have shown a sharp fall during the first eight months 19 x 15 of cm 2016-17.

Conclusion Plantation crops like Coconut, Cashew, Cocoa and Arecanut are emerging as important sector of horticultural crops. These crops including cashew nut being high and low in volume have provided opportunities to farmers in utilizing marginal land have added value to environment through diversification. The technologies developed based on new research strategies would help in enhancing the productivity of cashew resulting in increased production and

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lesser dependence on import of raw cashew nuts with self-reliance on indigenous raw nuts required for processing. Product diversification efforts have resulted into enhanced trading of cashew products and market for cashew product as health food is attracting the consumers across globe. India has succeeded in developing new cultivars, production system and also large number of products which require adopting and researching together in network mode. There is need to develop and disseminate technologies to help cashew farmers in terms of realization of higher returns. Further, large tracts of potential area need to be brought under cashew cultivation even in non-traditional areas. Increasing productivity and expansion of area under cashew through developmental agencies will have strong impact on cashew development, in general, and increased production of raw cashew nut in the country, in particular. Intensification of research will definitely add value for optimization and effective utilization of this crop.

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October2017 2017 Agro & Food Processing August

COVER STORY

Robotics: New Frontiers in Food Processing The use of robotics in modern food industry has increased over recent years because of many advantages. The challenge is to develop low-cost, flexible, hygienic and intelligent machines for the food industry. This is not tough as the technologies now exist to achieve it.

he food manufacturing industry has its origins in the household kitchen, as food is prepared in a factory that is essentially a larger version of the domestic environment. As production demand increased, larger companies saw the benefit of automation. This was particularly so for end-of-line packaging and palletizing. More recently, the availability of highly effective pick-

and-place robots allowed automation to move upstream and undertake operations with actual food products on production lines. However, these systems are currently only generally installed on the high-volume, long-life, and singleproduct lines. Smaller companies that constitute major per cent food manufacturers have been much slower to incorporate automation. The reasons for this include limited low-cost labour and

Agro & Food Processing October 2017

expertise, market volatility, a belief that automation is unsuitable for the assembly of soft, variable, fragile, slippery/sticky natural products and the predominance of short-term orders, which discourage capital investments in automation. The future of economies is dependent on Artificial Intelligence (AI) and it is billed as catalyst for developing and developed economies. The market for AI is expected

COVER STORY

to grow to $5.05 billion by 2020. While every industrial sector is taking note of this massive opportunity, the food industry is also playing catch up in this sphere. Food and beverage industries can leverage AI to improve offerings, optimize operations, and deliver a better customer experience. Reports suggest that 77 per cent of millennials dwelling in UK/US would want to use AI technology to obtain better assistance in planning and cooking healthy meals. Besides, the overall cost of implementing AI-based solutions is

lowering. Thus, brands can tap into a myriad of opportunities that AI presents. The above considerations have influenced the evolution of the industry, particularly in the predominant SME sector, resulting in a strong reliance on manual manufacturing procedures. But over the last decade or so, a number of market and other trends have emerged that seriously challenge the traditional manual-intensive manufacturing approach, including a decline in availability of suitable, lowcost casual labour globally, employment law and health and safety directives that

Agro & Food Processing October 2017

put pressure on labour costs, a demand for assured hygienic products, which can mean removing human operators from production processes, and higher commodity prices. The good news for industry and consumers alike is that robotics technology has been steadily advancing to meet these and other challenges. Modern automation is more versatile than ever, which makes it worth a look for food manufacturers of almost all sizes. Changing aspects The demand for high-quality product,

COVER STORY

the flexibility to share equipment to manufacture several products and other factors has moved the food industries towards increased automation. Control system vendors have responded to these needs by providing appropriate hardware and modular software capability so the process engineer can concentrate on the process control strategy rather than the control system design. Also, the development of sensors that measure product quality and subjective properties such as taste, smell, etc. is providing new vistas in automation. The advantages offered by the distributed control system (DCS) so far enjoyed by large, continuous process plants are now available to small users and to batch processing industries. Food processing equipment features some of the most sophisticated automation around. But, most machines are assembled manually. That’s because high-mix, lowvolume production is the rule rather than the exception. Food processing machinery comes in all shapes and sizes to meet the widespread demands of companies that produce beverages, bakery items, candy, dairy goods, frozen food, fruit, meat, poultry, seafood, snack food, vegetables and other edibles. Equipment categories include chillers, dryers, feeders, fryers, grinders, homogenizers, mixers, roasters, separators, slicers and ovens. Most food processing machines have similar automation and motion control needs, such as material conveying and positioning, heating, drying and cooling. They also require cleanliness, gentle handling and precise control of temperatures, pressures, treatment times and other process parameters. In addition, food processing machinery is often seamlessly integrated with high-speed packaging and labeling equipment.

Equipment and systems designed for the food processing industry share many of the same basic components used in discrete manufacturing, including compressors, electric motors, pumps and valves. But, the machines become even more complex once a labyrinth of digital sensors, pipes, transmitters, tanks, tubes, and other components are added into the mix. Food processing machinery must be capable of withstanding constant cleaning and disinfecting with all sorts of harsh agents, ranging from steam and water to alkaline solution, organic solvents, hypochlorite’s, iodine compounds and nitric acid. Above all, food processing equipment must meet strict regulations enforced by government agencies, such as FSSAI, FDA and others. There are two distinguishing features of food processing machinery. First, if the machinery comes in direct contact with the food product, it must be fabricated from stainless steel, and be free from cracks and crevices that might retain food particles. In those cases, stainless steel surfaces—particularly corners and joints must be ground to specific ‘smooth’ surface finishes to prevent the retaining of food. The second distinguishing feature of food equipment is very high processing and packaging speeds. This is particularly true of beverage and snack food processing lines. Snack foods are typically processed and packaged at speeds of more than 100 bags per minute, while beverages are processed at rates of more than 2,000 cans per minute. Those requirements make food processing equipment challenging to design and assemble. For instance, engineers must always consider ease of cleaning. There are standard tubing and connectors designed for quick cleaning

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and sanitation and the commercial, off-the-shelf-components are not the problem, however. All custom-designed features, structures and assemblies of food processing equipment must be designed for cleanability. The conventional name for this feature is clean-in-place or CIP. The most complex food machines tend to be the ones that have the highest need for clean design and largest risk for food bacteria growth. These are machines that serve the dairy, meat, poultry and fish markets and are governed by highest restrictions in equipment design, along with tighter limitations for selection of materials and material finishes. The food processing industry uses all types of conveyors, including traditional belted conveyors, modular belt conveyors, side flexing chain conveyors and positivedrive homogeneous belt conveyors. The type of conveyor technology used usually depends on where the [device] is being used in the food production process. The high investment rate, variable nature of food products, fragile and perishable characteristics of food items, hygienic and sterilization requirements, high production volume rates are making hindrance in usage of robotics in industry but the opportunity still exists to deliver significant benefits in terms of increased food shelf life, cost reductions and flexibility. AI Streamlining Food Industry 1) The Sorting system: Reports suggest that AI will introduce profound changes for the fast-moving consumer goods industry, which includes processed and fast food markets. These changes could mean improvements in the production line. AI shall incorporate the use of smarter machines, thus assisting towards minimizing or eliminating food waste.

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2) Fast food can be delivered swiftly using AI: The technology will put many lowskilled workers at food establishments out of work, as it can impressively automate simple cooking, for say, making a burger. US-based Momentum Machines is on the road to eliminate need for fast food burger cooks. The organization built a 24-square foot machine-powered burger assembly, capable of creating 400 burgers an hour. Moreover, speed is an essential element that fast food joints focus on improving. Such a solution not only saves hundreds of thousands in worker wages, but also ensures swiftness in delivery. 3) Addressing cleanliness using AI: All facets of the food industry can be improved using AI. This can be illustrated with University of Nottingham’s artificially intelligent sensor system, designed for cleaning of food manufacturing equipment, which currently accounts for 30% of energy and water use in the sector. AI can be utilized for optimizing the equipment cleaning, which will enable the university to save £100m a year. The university is assessing the potential of using an artificially intelligent inspection system, aiming to reduce cleaning times and resources by 20%-40%. Furthermore, this system will be equipped with ultrasonic and optical sensors.

wide range of potential applications for robotics in food processing from the meat industry, where robots are used for cutting, sorting and packaging applications. Working in a freezer or refrigerated storage boxes is not conducive to humans, but robots can work in such places without ever needing a break. Cutting and trimming carcasses can be very dangerous work, where a moment of distraction could cause severe injury; but robots can wield heavy and sharp knives with absolute precision. Human workers can taint foods with pathogens, whereas robots are considerably more sanitized, as they can be washed with high pressure water and solvents. Robots do not sneeze or get colds, reducing the propagation of germs and bacteria. Standard robots have been in use for many years in many industries. However, the meat sector has been reluctant to introduce standard industrial robots for a number of reasons including: • The harshness of environment in meat industry. • The speed, reliability and cost of robots • The complexity of processes involving handling biological materials the use of automatic equipment has therefore been the dominant feature for the meat sector. During the last few years’ industrial robots with names such as ‘Clean Room Robot’, ‘Envirobot’ and ‘Shiny Robot’ have been introduced to the meat industry. Industrial Research Ltd., New Zealand, has marketing the Envirobot for handling

Consumer goods and services was one of the initial areas of AI adoption in India and currently accounts for a significant share of private sector application. To enable consumers to find better products at low prices, machine learning algorithms are being deployed for better matching of supply with consumer demand. Increased yields and reduced wastage The food processing industry combines an extensive diversity of products, packaging types and handling variations than almost any other industrial sector. There is a

Agro & Food Processing October 2017

organic products in harsh environments such as the food industry. The Envirobot is made of stainless steel and resists harsh cleaning materials and the corrosive chilled environment in slaughterhouses. Both from a working environment, a cost and a hygiene point of view, the evisceration process is an obvious candidate for automation. This has been done successfully by the DMRI in cooperation with the Danish company SFKDanfotech. The automatic evisceration equipment is capable of handling 360 carcasses per hour including the necessary cleaning and disinfection. The pluck set and the intestinal tract are removed together by the robot, allowing separation to be done manually outside the carcass, thus improving hygiene compared with existing manual methods. The equipment also eliminates heavy work of lifting the intestinal tract and pluck set. Robotic system is used for the intelligent cutting and deboning of a chicken, as it prepares to slice through the shoulder joint of a chicken, cutting close to the bone to maximize breast meat yield and ensuring food safety by avoiding creation of bone chips. Reasons for automating process The largest trend defining the world food processing equipment market today is similar to many other industries: rapid sales growth in developing regions, particularly Asia. Rising personal incomes are driving increased overall demand for processed foods, along with dietary shifts toward more costly, non-staple items and increased meat consumption. As a result, producers are seeking to locate their production facilities closer to these

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rapidly expanding markets in order to cut costs and capitalize on this growth, which is driving sales of machinery in these areas. The market for food processing machinery in China, India, Indonesia and Turkey has grown to a great amount. Over the past 10 years, sales of machinery for processing meat, poultry and seafood have grown rapidly. Rising incomes in many developing nations are allowing diets to include more consumption of these items, which tend to be expensive relative to other food items. Technological advancements in cutting, slicing and grinding machinery have also led to increased sales of these units in the past 10 years, as manufacturers replace older machines with newer products that boost their bottom line through either higher throughput or more efficient processing. For example, several companies have developed cutters that, when the item to be processed is irregular in shape, scan the incoming product and adapt the cutting strategy to produce as many correctly sized portions as possible with the least waste. On the other hand, beverage machinery has lagged behind the rest of market in sales growth due to the relative technological maturity of these units. Compared to machinery used in processing other foods, there are fewer opportunities for technological advancements in these machines and as a result, there are fewer opportunities to generate replacement sales based on the availability of a more efficient unit. Due to the incredibly broad range of machinery types and specifications demanded by food processing companies, the industry tends to be quite fragmented. The seven largest companies have a combined market share of between 10

per cent and 20 per cent, which is a much smaller figure than for the top companies in most other industrial capital equipment markets. With thousands of different individual types of food processing machines produced worldwide, only the largest manufacturers can offer anything close to a complete range of products. Most companies typically focus on producing machines that perform one specific task for a wide variety of food products, such as slicers or mixers. Or, they offer a complete suite of equipment covering every stage of processing for a specific product, such as beef. One of the biggest trends affecting the food processing industry today is the Food Safety Act. As food safety is the most important in food processing and to ensure no calamities happened the food industry have to act aptly. And recognizing its importance, food and beverage manufacturers are now requesting and updating existing machinery that can be easily washed down. Most major food companies have been in compliance with food safety authority for years or are upgrading equipment as quickly as they can. It can be very expensive to buy new equipment, but a lot less expensive than ruining the reputation of a major brand if that product had a food safety issue. Robotics in food manufacturing In recent years, a combination of robotics and electromechanical systems has shown they can automate processing of most food products. Initially, automation in the food industry concentrated on end-of-line work (think computerized mechanical baggers). And robots excelled at it, but there was a demand for faster and more agile machines able to work further up the production line and provide rapid pickand-place operations on individual food

Agro & Food Processing October 2017 August 2017

products. Similarly, research from within both academia and industry has developed a broad range of end effectors able to grasp the vast majority of products found in the food industry. Robots Help Prevent Food Contamination: With the humongous stress on food safety on the food industry, the focus at present is to prevent contamination in the food supply. Modern robots feature improved sanitary designs making them ideal for work in this clean environment. Smooth surfaces that are not susceptible to the corrosive effect of cleaning chemicals, and tight seals that lock out contaminants are just a couple of the safety-minded design features. SCARA (Selective Compliance Assembly Robot Arm) robots are typically used for food processing. Their low cost, small footprint and high throughput rates make them attractive to manufacturers looking to increase their efficiency. Currently 48% of dairy processors indicate a need for processing equipment improvements. Look for increased numbers of robots to be implemented in food processing as manufacturers seek to eliminate contamination from human contact with food products. Picking and Packing Robots: As robots do not suffer fatigue from performing repetitive tasks, they are also an ideal solution for primary packaging tasks such as bottle handling, bin picking, and tray loading. The main driver behind the growing implementation of robots for primary packaging is the increasing demand for more varied packaging, pack counts and retail-ready packaging. Food packaging dominates global retail volumes with nearly 2 trillion units

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annually and beverage packaging ranks 2nd with just over 1 trillion units. By 2018, food and beverage manufacturers plan to increase their use of robots on the primary packaging line to 22%. This is due to the increased productivity, flexibility and efficiency that robots can provide on the primary packaging line. Robots in High Demand for Secondary Packaging: The greatest growth in food and beverage robotics, however, is expected to continue in the secondary stage of the packaging line. From case packing to bundling and bagging, there are a variety of tasks a robot can perform in this area. Beverage manufacturers plan

to increase usage of robots in secondary packaging lines to 22% by 2018. Food manufacturers are also expected to more than double their usage. These delta-style robots feature proven end of arm tools ranging from vacuum grippers to clamps that are integrated with sensors so a robot knows if it is safely gripping a product. Robotic Palletizing Systems: After packaging, robots are then used to make products ready for transport. According to PMMI report, 2 out of 3 manufacturing locations either have palletizing robots installed, plan to install more, or plan to add them into their palletizing operations in the future. A wide variety of end of arm tools are capable of handling anywhere from single products to full rows, and even entire layers of product depending on customer needs. The use of palletizing robots brings increased end-of-line efficiency as well as improved flexibility and cost savings.

Conclusion Robots are primarily used by the food industry for packaging and palletisation, but new applications are emerging. The future of robotics in food industry is both exciting and interesting. As computers and control systems are becoming more sophisticated, more intelligent and lower in cost, some of the more complex applications will become both possible and adorable. It will be interesting to see if the food industry will employ the same number of robots in the future as does the automotive industry at present. Technical and commercial difficulties blocking the use of robotic systems in food industry should be assessed. Perhaps the greatest challenge the food industry faces in implementing automation and robotics is finding enough engineers to underpin the adoption of advanced manufacturing techniques. Thus, schools, training centers and professional engineering institutions have an equally important role in creating a genuine 21st-century food manufacturing industry.

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Agro & Food Processing October 2017

ADVANCEMENTS

Trends and opportunities in Indian packaging Industry First impressions matter. Experts say we size up new things in somewhere between 30 seconds and two minutes. Brand Packaging is categorized in the same line- as visual manifestation is one of the most important aspect of brand packagings. Of course what’s on the inside counts on the same rate but somehow it’s the look that appeals the consumer first when it comes to packaging of food, the outer wrapper is so much more than mere aesthetic appeal- it appraises the product within. A soundly packaged edible product has a longer shelf life, is compact enough to find space in the consumer’s kitchen, and is easily maneuverable. Owing to rising urbanization and a quick-fix lifestyle, it is therefore of little surprise that the demand for packaged food is increasing.

he Indian food packaging Industry The packaging industry in India is a mix of both organised medium to large player’s as well very small players. Domestic demand for packaging is expected to grow rapidly in coming years. FMCG companies are now widely adopting sustainable packaging technologies to reduce the cost of packaging as well as taking steps to ensure recycling of packaging material which also protects the environment. India is the second largest producer of food in the world and one of the major consumers of packaged foods and beverages. Increased consumer awareness and growth of the processed food and beverages industry are the major factors for a major shift from unpackaged vending to packaged forms of sale. Some

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other factors like exposure to new and improved packaging methods, relaxation in food and beverage import norms, increasing modern retail outlets and changing consumer preferences have all resulted in brand owners recognizing the need for advanced packaging solutions at economical cost. Packaging has served the Indian economy by lengthening and also preserving the shelf life of products ranging from milk and biscuits, processes and semiprocessed foods, edible oil etc. Market watch At present, the Indian packaging industry is valued at 17 billion USD, constituting roughly 4 per cent of the global packaging industry. Of this, processed food packaging bags almost half of the market share. The Indian subcontinent has

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immense potential. It is the fifth largest market for packaged food in the world and the second largest in Asia, second only to China. To meet the growing demand, investments in food processing and packaging machinery has been rising steadily. In 2015 alone, imports of packaging machinery amounted to roughly 293.6 million Euros, a 30 per cent increase. Of this, over 60 per cent constituted food processing equipment for confectionery, bakery products, beverages, fruit and vegetable processing. By 2020, it is speculated that India will become the third largest market for packaged goods in the world, after China and the United States. Packaged food sales predicted growth is 47 million tonnes from the current 34 million tonnes. This opens up a world of avenues for the packaging, processing, and food equipment industries. The packaging industry has exhibited muted growth over the last year, with a slowdown in industrial growth and drop in consumer demand. However, industrial analysts are positive about growth in the next 12 months as they consider Indiaâ&#x20AC;&#x2122;s low per capita packaging consumption regarding that of developed economies, increasing disposable incomes, growth packaged food market and a shift towards organised markets as the key growth factors.

According to Research and Market report, during the period 2016-2021, the Soft Drinks and Food industries will be the highest packaging market share gainers (by units) with share growth of 3.4% and 1.3% respectively. The growing organized retail sector has been a significant driver of the growth of food and beverage industries, which in turn drives the growth of Indian packaging industry. In addition, innovations in the packaging industry, such as the development of lighter packaging with better barrier properties, add to the growth of packaging industry. In terms of packaging material, Glass and Rigid Plastics will be among the major share gainers, with share growth of 0.7% and 0.6% respectively during 2016-2021. Where Are the Opportunities? The Indian middle-class is an easy group to target, enticed by luxury food brands especially in confectionery products; think chocolates and biscuits. Demand is also catching on in fresh categories in the packaged food segment such as processed dairy products, frozen ready-to-eat foods, processed meat, and probiotic drinks. The latest health fad unfolding across the urban landscape also opens up avenues in health drinks, vegetarian and vegan proteins, diet snacks, protein powders, and the likes. However, the urban markets are relatively rife with saturation and face stiff competition from foreign entrants.

The outlook for new capital investment is also positive as most companies plan to invest in new manufacturing facilities to cater to increased demand. Going forward, packaging companies plan to focus on driving revenue and profitability through an emphasis on exports, improved customer service and increased production efficiencies. Further, with the implementation of GST from 1 July 2017, the packaging industry

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The rural markets on the other hand, housing almost 65% of the Indian populace, have room to grow for packaged food and beverages. Recent investments in rural areas have led to rising wages and exposure to urban trends. Smaller sized packages priced reasonably can attract more buyers for packaged goods. Given the tropical climate of the country and surmounting heat, beverages i.e. carbonated soft drinks are likely to be a special hit among the rurals. This will translate into demand for beverage packaging equipment as well. Demand for automatic form-filling and sealing machines, tetra pack aseptic packaging machines for sterilized filling and packing of liquids, and testing instruments are anticipated to be high and have enormous opportunities. Some of the other prospects lie in machines that clean and dry containers, automatic labeling and capping machines, sealing machines, filling machines, packing/wrapping machines, and moulding machines. Technology Adoption Innovation and rapid technological developments in food packaging have caught on like wild fire in other parts of the world. However, India has been slow to adopt some of these changes such as sustainable packaging, UV-ray protective packaging, antimicrobial packaging, oxygen and moisture scavenging, and the likes. Some Indian players have been venturing out to meet international packaging standards, but it has been infrequent given the unorganized nature of the sector. Additionally, the heavy capital requirements, poor credit facilities, and long gestation periods have been deterrents to quicker adoption of new

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technologies. Foreign Direct Investment (FDI) in this segment would be a major relief. At present, India imports most of its highly-automated machines and systems from Germany, Italy, Switzerland, and the United States. More capital could result in cheaper alternatives and better equipment due to shared interests. Emerging trends in packaging industry in 2017 The packaging industry took strides in more innovative, sustainable, holistic, technologically advanced and efficient directions. Realizing new opportunities in a variety of industries,

as well as uncovering new challenges, members of the packaging world and beyond turned their heads towards advancements that would not only generate greater potential in materials, design, manufacturing, sourcing and end-oflife opportunities, but leveraging that potential throughout the value chain and across practices. Among these new challenges, opportunities and innovations in the industry today, here are the key trends that the industry leaders agree will be dominating influencers in the coming year: • Establishing a “one size fits all” ecommerce model – Since ecommerce has taken a major share of the retail market, we have seen the wild west emerge with a variety of online retailers, aggregators and digital distributors that come and go, attempting to write and rewrite the rules of rapidly emerging industry. With Amazon proving to have

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33 the most authority on what needs to be shipped, when, how and in what quantity, brands are having a difficult time fitting into their ecommerce model. Traditional single SKU case shipments from brand owners are in quantities to stock shelves and sell through, but Amazon requires an “each” model as opposed to “stock,” which also increases complexity when cross-brand product bundles are required. This year we will see new packaging options and solutions to improve this important and growing drive to standardize packaging containers to handle shipping, as well processes to streamline distribution and enable crossbrand bundling. • Prioritizing food safety and reduction of food waste with new packaging technologies and processes – Global food waste is a growing concern among consumers which businesses continue to address, while cross-industry groups and influencers are leading initiatives across countries in order to improve food safety and reduce food waste. One critical area of focus is consumer education, and ensuring that those who sell and consume

ADVANCEMENTS

to see more application of holistic packaging design principles ensuring its consideration at the earliest product development stages rather than just concept discussion.

packaged food products understand their shelf life. In order to bridge the gap in communication, not only has new processing and packaging technology been developed to actually extend the shelf life of food, but technology built into packaging via freshness sensors will alert customers/ consumers regarding the shelf life of their food and when it is safe to consume in order to avoid early disposal and excessive purchasing. • Commercialization of packaging innovations – As new more advanced and sustainably sourced and processed materials emerge, more industries will have the opportunity to bring clean label packaging to market. Examples include high pressure packaging technology, more replacement material coming to the market, active/ digital packaging and 3D printing. We’ll see strides in pharmaceutical packaging by way of traceability and tamper-alerts, as well as monitoring capabilities to ensure patient accountability. Through 3D printing, we shall see increased commercialization in tooling and manufacturing, moving beyond the already present prototypes – significantly cutting cost and saving time. Brand owners will begin collaborating more with new technology providers to evaluate improvements to their bottom line. Organizations will practice a more flexible model use of resources, essentially not needing to have all of that technology in house, but collaborate with partners who own this area. • Holistic packaging becoming the “new normal” – Product and packaging integration has been at the forefront of many conceptual conversations in the industry for a few years now. As the holistic approach to packaging design becomes more and more relevant across different silos of a business, realizing its relevance from end-to-end, we will begin

New advances in packaging materials design as well as equipment and processing technologies has allowed more application to come to market, as well as a greater understanding of the need for fully integrated communication across value chain from marketing, branding, packaging, etc. to drive a singular goal. Indian packaging machinery sector as compared to international counterpart In Indian packaging industry, processed food packaging represents 48 per cent of the total. The per capita consumption of packaging in India is merely 4.3kg per person per annum. In comparison, Germany’s per capita packaging consumption is 42kg and that of Taiwan is 20kg. To meet the rising demand for processed and packaged food and beverages, companies have to expand their production, and as a result the demand for state-of-the art processing and packaging technology will grow. Export-oriented manufacturers, in particular, favour high-tech solutions in order to meet the international standards and to be competitive. More than 80 per cent of total packaging in India constitutes rigid packaging. The remaining 20 per cent comprises flexible packaging. There are about 600700 packaging machinery manufacturers, 95 per cent of which are in the small and medium sectors located all over India. The dynamic development of Indian food and beverage industry is an ongoing process accompanied by significant investments in food processing and packaging machinery over the last few years. In 2015, Indian imports of foreign food processing and packaging machinery reached a new peak.

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Investments in foreign machines and equipment increased by 30 per cent and amounted to €734 million. Around 40 per cent of these imports were packaging machines, which were mainly imported from Italy and Germany. Sixty per cent of the Indian imports were processing equipment for different foodstuffs, e.g. for production of confectionery and bakery products, for beverage production as well as machines for fruit and vegetable processing. The main supplying countries of food processing machines for Indian industry depending on the sub-sectors are Germany, Italy, Switzerland and China. Key market trends Number of methodologies of packaging technology for food has developed over the years. Active packaging, intelligent packaging and nanotechnology are some of the newly introduced concepts in the market. Packaging is the most important aspect of product design. There have been a lot of technological advancements in the industry but still innovation is the need of the hour. Active packaging It is an innovative packaging technology that involves incorporation of certain additives into packaging film or within packaging containers by which package, product and environment interact to prolong shelf life or enhance safety or sensory properties as well maintain the quality of the food product. Intelligent packaging This type of packaging is capable of carrying out intelligent functions (Sensing, detecting, tracing, recording

ADVANCEMENTS

36 and communicating) to facilitate decision making to extend shelf life, improve quality, enhance safety, provide information and warn about possible problems. Eco-friendly packaging The ideal packaging material should not possess any environmental issues and should have recycling potential. Ecofriendly packaging can play a key role in food waste avoidance to protect human health, environment and in preserving natural resources. Eco-friendly packaging materials have some extremely essential qualities like reduce, recycle, renew, reuse and repurpose. Flexible packaging Custom designed film, foil and paper based laminate for primary packaging of products in solid, liquid or powder form in consumer size packs comes under this category. From paper to cellophane plastic wrappers to aluminium foil to metalized and coextruded foils: the change has been quite rapid and new features are being built into the packaging material to add value for its customers. Advancement in technology has led to the propagation of metalized film (laminate and co-extrusion based) packaging material that combines the benefits of both metals and plastics. Apart from being more cost-effective, it offers versatility in the packaging material with improved protection against light, water, moisture and gases thereby increasing the aroma and shelf life of products. The metallic base allows for high gloss and eye-catching aesthetic packaging. The food sector uses a wide range of package material in various shapes and sizes. Flexible packaging accounted for 29% of the total food & beverage packaging sector, followed by rigid plastics at 26%. Globally, the industry has witnessed considerable new trends moving from simple pre-packaging to vacuumisation & gas-flushing, retort and aseptic systems, CAP/MAP, smart and intelligent packaging, and barcoding. However, in India value added packaging of food and beverage is relatively small and is yet to make deep inroads. Sustainable packaging Reduction in material usage without compromising on product protection

and re-use of packaging are the two main factors that are making sustainable packaging duly recognised among all stakeholders. FMCG companies are now widely adopting sustainable packaging technologies to reduce the cost of packaging as well as taking steps to ensure recycling of packaging material which also protects the environment. Some major initiatives in sustainable packaging taken by FMCG companies in India: Marico reduced its Parachute oil bottle to be 7% lighter and its cap to be 2% lighter compared to the nearest benchmark; Coco Cola has switched to 10% sugar-based ethanol to create plastic bottles which increases the use of renewable sources and reduces the carbon footprint. Some Innovative packaging by the Industry HUL has achieved 100% zero nonhazardous waste to landfill sites across 30 factories in India. HUL is also trying to create market value for discarded sachets and lighter plastic packaging so ragpickers find incentive to collect them off the streets. Hindustan Unilever and Bharti Retail have launched the Go Recycle initiative in NCR region which promotes plastic recycling among consumers. Dabur and Tetra-Pak India have come together to mobilize rag pickers to collect discarded packaging of food products. Nanotechnology is also gaining importance in the Indian food packaging industry. A Nano composite material not only improve the mechanical strength, reduces weight, increases resistance to heat and enhance barrier properties of the packaged product but also increases overall shelf life of product. Technology, price, delivery, and performance standards are some of the determining factors that for packaging equipment and decides whether it can be sold in the Indian market. There is an intense competition in the end-user market, the cost of equipment and low running cost remain one of the primary factors that influence the sale of the packaging equipment and thatâ&#x20AC;&#x2122;s why upgrading would be another extremely important factor in buying decision of Indian end-users. Encounters The challenges that industry is facing

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today include lack of regulatory clarity in packaging, insufficient consumer awareness of sustainable packaging and uncertainty about green packaging materials. For raw and processed foods, India needs packaging material which is suitable to the country's climatic variations. The country's heat and high humidity are two problems that can reduce the shelf life of packaged goods. It would be particularly important to focus on the seals and maintaining their integrity. But more important than the climate is perhaps the lack of a good supply chain or refrigeration in retail outlets and at home. This is a big barrier to many of the packaged food formats familiar to consumers in the West. At the same time, a heavy focus on cost means that cheaper flexible packaging formats are often chosen over rigid packs that may offer greater protection for the product but that would force a higher retail price. Analysis Although food packaging sector in India has emerged as a high growth and high profit sector due to its immense potential for value addition, still the industry is hugely dependent on imports. Also, initiatives have been taken by the government and food industry towards decreasing the wastage and increasing the shelf life of products, their proper implementation is still required. In the year 2020, packaged food sales will reach 47 million tonne. According to research forecasts, India will become the third-biggest market for packaged food in 2020, after China and the United States. The food packaging industry is Indiaâ&#x20AC;&#x2122;s fifth-largest sector with a current worth of nearly $40 billion. By 2020, it is expected to reach over $65 billion. With a per capita consumption of 24kg per year, the Indian packaged food market is still at an early age. Due to rising incomes, urban lifestyle changes and modern retail trade, the food packaging market will expand distinctly. As urban regions account for more than 80 per cent of the demand for packaged food, there is a huge growth potential in the semi-urban and rural regions.

BRAND'S MOTION

Indian market has huge potential for branded food products

Country’s ready-to-eat (RTE) food market is projected to grow at a CAGR of around 22% during 2014-19. The market is anticipated to grow on account of increasing working population, growing per capita disposable income, rising per capita expenditure on prepared food, increasing middle class and affluent consumers, etc.

ncreasing urbanization, lifestyle changes, greater affluence, and increased rates of women working outside home are driving demand for processed foods. According to the Ministry of Food Processing, food processing sector accounts for 1.7 per cent of gross domestic product and is valued at US $ 258 billion and expected to grow at a CGAR of 11 per cent to US $ 482 billion by 2020. According to the latest Annual Survey of Industries, there are 37,175 registered food processing units in the country that have employed approximately 1.7 million people.

With a population of over one billion, India is one of the largest economies in the world in terms of purchasing power and consumer spending. The International Monetary Fund has projected that India’s GDP will grow by 7.4% during 2016–17, making it the world’s fastest growing large economy. The fast-moving consumer goods (FMCG) sector is an important contributor to India’s GDP growth. The sector includes food & dairy products, packaged food products, household products, drinks and others. According to a report, the country’s ready-

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to-eat (RTE) food market is projected to grow at a CAGR of around 22% during 2014-19. The market is anticipated to grow on account of increasing working population, growing per capita disposable income, rising per capita expenditure on prepared food, increasing middle class and affluent consumers, etc. With the rising employment opportunities and changing lifestyle of consumers, the demand for ready-to-eat food products in the country is projected to grow during the forecast period as well. India has a large base of young consumers, who

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form majority of the countryâ&#x20AC;&#x2122;s workforce. These young consumers hardly find time for traditional cooking due to their busy life styles which further creates significant potential for ready-to-eat food products. Packaged/Convenience Food This segment mainly comprises of pasta, breads, cakes, pastries, rusks, buns, rolls, noodles, corn flakes, rice flakes, ready-to-eat and ready-to-cook products, biscuits etc. Bread and biscuits constitute the largest segment of consumer foods. The bakery manufacturers in India can be differentiated into the three broad segments of bread, biscuits and cake. About 1.3 millions tonnes of the bakery products industry in India is in the organized sector out of 3 millions

Indiaâ&#x20AC;&#x2122;s exports of processed food and related items rose at a CAGR of 21.5 per cent during FY11â&#x20AC;&#x201C;16, accounting for US$ 19,337.4 mn in FY16.

in recent years, more working women, urbanization, the nascent development of modern retail, emergence of foreign and international brands, significant improvements in packaging and quality and savvy marketing campaigns. Expansion is being driven by domestic and multinational companies.

Consumption Consumption in volume and value terms, sales of every category of processed foods increased significantly between 2011 and 2015. Industry sources estimate that over 400 million consumers consume some type of processed food regularly. A number of factors have combined to spur the increase in consumption of packaged foods such as strong economic growth

Urban areas account for over 75 per cent of sales as consumers seek convenience and quality in processed foods. For higher value frozen and refrigerated foods, sales are almost exclusively in urban areas. Rural areas tend to have lower incomes and a preference for fresh ingredients. Nevertheless, rural areas are emerging as a market for well-priced shelf-stable foods. Consumers in developed markets are

tonnes, while the balance comprises of unorganized, small-scale local manufacturers.

Agro & Food Processing October 2017

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more open to the idea of packaged food, which manufacturers often position on the basis of convenience, nutrition, ease of use and food safety. This is something they need to do more of to attract Indian consumers.

a CAGR of 12–14 per cent during the last decade. The market is estimated to cross Rs 8,00,000 crore by 2020. About 58 per cent of India’s dairy products market lies with rural consumers and remaining 42 per cent with urban consumers.

The Indian packaged processed foods industry is estimated at US$ 10.87 bn–US$ 13.05 bn, including biscuits, chocolates, ice-cream, confectionery, snacks, cheese and butter.

Spices category is another growth leader in the food industry. The current market for spices is estimated at Rs 1,50,000 crore and has grown at a CAGR of 13 per cent over the last decade. By 2020, the market is likely to grow twice as big as its present size with the same growth rate. In other words, about Rs 6,000 crore is estimated to be the branded market in spices. India is estimated to consume over 5 million tonnes of spices annually. This consumption is almost 90 per cent of all spices produced in the country. Gingergarlic, dry chillies and turmeric together contribute 44 per cent to 48 per cent of total spices in India. This consumption share is not much varied in rural and urban markets.

Market Size of Food Categories The Dry Food Grocery category as a whole contributes 34.7 per cent to the total food market in India. The category includes cereals, grains and related products; grams and its products; pulses and its products; sugar in all forms; edible oils; and dry fruits. The large market size of the category, highest among all food groups, is attributed to the fact that products that fall in this category are consumed in raw as well as semi-prepared form. India’s DFG market is worth Rs 8,00,000 crore (2014) and has grown at a CAGR of 11 per cent over the last decade. With this growth rate, the category is all set to touch the Rs 15,00,00 crore mark by 2020, thus becoming almost double of what it is today.

Fresh Produce market in India is about Rs 3,90,000 crore and has been growing

Milk and Dairy foods constitute the second-highest share, after Dry Food Grocery, among all the seven F&G categories. The segment holds about 16 per cent of the overall food market in India. The country is the largest producer of milk in the world and has a substantially large bovine population with about 118 million milk-producing animals. India contributes 16 per cent of the world’s milk production followed by USA with 12 per cent contribution. Milk and related dairy products are worth Rs 3,62,000 crore market and have grown at

Agro & Food Processing October 2017

at a CAGR of 14 per cent since the last 8–10 years. At the same growth rate, the category will be worth Rs 8,50,000 crore by 2020 riding on the wave of healthy food habits, which demands significant portion of fresh produce in daily diet. Fresh produce covers just two broad segments of fruits and vegetables. Among the two, 70 per cent is contributed by vegetables alone. Although fruits are a growing segment, they contribute a current share of just 30 per cent, which translates to Rs 1,17,000 crore worth of market. Out of the total fresh produce market of Rs 3,90,000 crore, 60 per cent is rural market. Again, this has three-fourths of the market occupied by vegetables. As mentioned earlier, fruits form the urbancentric market while vegetables are comparatively a national market. Perishables food market is worth Rs 2,00,000 crore, and has grown at a CAGR of close to 20 per cent. This growth rate is among the highest for all food groups. With the same growth rate, market is expected to treble by 2020, in which the segment for fish, seafood and meats will grow at a faster pace owing to growing demand for such food items. The four primary sub-segments of perishables include fish & seafood, meats including mutton, beef, pork, poultry and game birds, and eggs. About 45 per cent of the total market share is occupied by fish & seafood. The largest market segment of fish & seafood is thanks to a vast coastline and fishing inland waters, which a large country like India possesses. In addition, there is a sizeable share of imports of canned seafood and fisheries, which is growing in demand and size. The domestic consumption is no more confined to coastal areas but has penetrated deeper

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the western region with 14 per cent share. The monthly per capita consumption for coffee in the southern region is Rs 17 against the national average of Rs 5.

into the mainland markets also. Beverages category contributes 8–9 per cent to the total F&G market in India. By far, tea is the largest segment of beverages in India ruling over 79 per cent of the market. The market is growing at 20–23 per cent and will cross its present market size by more than three times by 2020. The average monthly per capita spend on tea is Rs 106 at present. Together with tea, coffee is another strong beverage market. The market for coffee is growing at 20 per cent and will be triple its present size in the next 4–5 years. There are various types of coffee in the market, which come at all relevant price-points. The overall coffee market, though, is very small in comparison to tea market but the southern region alone contributes 73 per cent of the total coffee market. This is followed by

Packaged drinking and flavoured water is the smallest segment in beverages market. The segment, which is growing at a healthy rate, will be worth Rs 6,000– 7,000 crore by 2020. The market is urban-centric with 85 per cent share. Within this market share, half of it lies in the eastern region of the country whereas western region has the lowest consumption.

and is expected to grow almost four times bigger in the next five years. Today, Indians are spending at an average just Rs 6 per month on juices, which is less than what they are spending on other beverages. The culture of eating out has given birth

The monthly per capita consumption is Rs 4 in the overall urban market but urban eastern region has a higher consumption figure, which is three times higher at Rs 12. About four per cent of the total beverages market is formed of the juices segment. The segment is growing at 20–25 per cent

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42 to meal and soft drink combos, which Indian consumers are savouring to the fullest. The segment has made some significant achievements and penetration in rural areas is definitely one of them. Rural areas account for 75 per cent sales of PET bottles. Public consumption accounts for almost 80 per cent of the total sale of soft drinks and household consumption accounts for remaining 20 per cent of sales.

Other Processed Foods category market is over Rs 2,00,000 crore and is strongly growing at a CAGR of over 20 per cent. Biscuits market is growing at 20-23 per cent and will eventually cross the current size of total OPF market by 2020. At present, 46 per cent of biscuits market lies with urban consumers using the products. In this urban market, the western region alone contributes 31 per cent. It is estimated that the ketchup market is worth Rs 220 crore in India. Namkeens & Snacks segment can be truly and aptly defined as ‘Indian’ OPF segment. The constituting products cover thousands of snack items manufactured in traditional as well as modern set up. Industry reports attribute the branded namkeen market segment to hold 40 per cent of total salted snacks market in India. Key Factors Driving Growth The industry is growing at a healthy 1415 per cent in the past two-three years. Rising Disposable Incomes Income growth has increased consumer appetites and discretionary spending. This shift in spending appears promising for manufacturers and service providers; especially, in hotel, leisure, healthcare and household goods and service categories. According to the Government of India, the per capita net national income during 2015-16 was $1,381 (INR 93,231); a rise of 7.3 per cent over the previous period.

Women in Workplace and Changing Lifestyles Increases in urbanization and the number of working women has pushed consumers to look for products offering convenience. This will lead to trading up from unpackaged to packaged and unbranded to branded products. Urbanization will continue driving consumers towards packaged foods, as well. Additionally, consumers have gained some health consciousness – a development which has led them to choose their packaged foods products more wisely. Given that the industry is underpenetrated, improved competition will create more awareness and better availability through stronger distribution and bolster volume growth. Demographic Changes India’s current population is nearly 1.25 billion, up from 670 million in 1980. The pace of growth is slowing but the country’s age structure promises continued gains for some time. The median age is rising over time but is still relatively low – just 27.6 years in 2015. About 415 million people (33 per cent) of India’s population is classified as urban and nearly 56 per cent is under the age of 30. The Indian government projects that there will be 400-500 million people in the workforce before 2025 but if female empowerment takes off that figure might increase to 600 or 700 million. Rising Organized Retail and E-retail outlets Although small, traditional outlets dominate the Indian food retail sector and account for 98 per cent of sales, modern retail chains offering a consumer-friendly shopping experience are emerging and stores now exceeded 3,200 in 2014. India remains a growing market for consumerready food products. With a sharp rise in mobile penetration across India, online and e-commerce retail opportunities have opened up and afforded options to consumers on payment mechanisms as well as conveniences for time and cost savings. Government Policy (Foreign Direct Investment Policy) A World Bank Report 2016, states that India ranks 130 out of 189 countries in

Agro & Food Processing October 2017

the ease of doing business, and has moved up four places from last year’s ranking of 134. The Government of India has simplified investment procedures in food processing sector in an effort to attract foreign investment and boost job creation. The number of food products reserved for small scale industries has been reduced; investments are permitted under the “automatic route” which simplifies capital reporting procedures; and up to 100 per cent foreign equity can be invested for most products as listed under the Consolidated FDI Policy. As per current policy, the government allows 100 per cent foreign direct investment (FDI) upon approval and for any foreign investment beyond 51 per cent, it is required that 30 per cent of the value of goods be sourced from India. The “controlled conditions” clause for 100 per cent FDI under “automatic route” for animal husbandry has been done away with. To encourage the development of food processing industries, the Government reduced excise duties on food processing and packaging machinery from 10 per cent to 6 per cent, allowed food processing units a 100 per cent income tax exemption on profits for the first five years of operation and a 25 per cent income tax exemption on profits for the next five years as well as other incentives. According to the Ministry of Commerce, the food processing industry has attracted investment valued at U.S. $7.3 billion during 2000-16 of which only 2.36 percent was in the sector. Wide array of products, coupled with increasing global connectivity, has led to a change in the tastes and preference of domestic consumers Major Food Processing Players in the Indian Market Amul India’s largest food products marketing organisation, Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF), which markets the Amul brand of milk and milk products, has been recognised as the country's best Fast-Moving Consumer Goods (FMCG) company in the food sector by the International Advertising Association (IAA). Amul is India's largest food brand with annual brand turnover of Rs. 38,000

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trillion revenue from non-cigarette packaged goods by that time.

crores. It is a cooperative milk federation of 36 lakh milk producers of Gujarat. The turnover of GCMMF has registered a quantum growth of 238 per cent in the last seven years, which implies an impressive cumulative average growth rate (CAGR) of 19 per cent during this period. GCMMF is currently procuring 180 lakhs litres of milk per day through 18,600 village dairy cooperative societies. ITC ITC Ltd, the Kolkata-based cigarette-tonoodles maker, has set an internal target of generating Rs65,000 crore from packaged foods by 2030 to reach its goal of Rs1-

“ITC’s foods division will be a significant contributor to our goal of achieving Rs1,00,000 crore turnover from the new FMCG businesses by 2030. Our vision is to contribute at least 65% of this turnover,” said Hemant Malik, divisional chief executive (foods), ITC. According to ITC, its branded packaged food business crossed Rs8,000 crore in the fiscal year ended 31 March 2017 (FY17).

43 17.49% (in food business) consistently over next 13 years. During the past 13 years, packaged food company Britannia Industries Ltd has grown at a CAGR of 17.48% and Nestle India Ltd has grown at 11.01%. ITC has grown faster at 17.97% during the past 13 years. TATA Global Beverages Ltd.With Rs.6,000 crores as its market capitalisation TATA beverages are No.2 in Tea worldwide. It is a part of the Tata Group. With the inception of TATA tea in 1983, there is no looking back. The company acquired the Tetley group UK in 2000 & in 2010 TATA global beverages corporate announced formation of Pepsi JV. Its famous brands are TATA tea, Tetley, Himalayan water, Good earth.

Now, it wants to garner Rs65,000 crore by selling branded packaged food—from Re1 candies to Rs1,000 chocolate boxes, in the next 13 years.

Nestle Ltd Nestle India is a subsidiary of Nestle S.A. of Switzerland. With a market cap of Rs.35, 000 crores it operates with seven factories and a large number of copackers.

While the number may seem ambitious, ITC’s target may be achievable if it grows at a compounded annual growth rate of

The main business includes manufacture of Milk products. It specializes in infant food, while the other products in this

Agro & Food Processing October 2017

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centres and 395 bulk coolers and over 2,400 distribution centres with cold chain infrastructure. Hatsun Agro collects about 27 lakh litres of milk daily and can handle up to 32 lakh litres and has one-third of the market share in Tamil Nadu where the estimated demand is about 62 lakh litres. range are ghee, dahi & dairy whitener. It also has a diversified product chain like prepared dishes & cooking aids – the major one being Maggi, others are sauces, pasta, beverages like coffee & iced and instant tea. Nestle is also known for its chocolate & confectionery range, the major brands being Kitkat, polo & bar-one. Company reported a 6.7% growth in profit for the quarter ended 31 March 2017, backed by higher sales in the domestic market.

Arokya Milk and Hatsun Curd are the largest brands in their segments and the company is also known for its flagship Arun Ice Creams, Hatsun branded dairy products and Santosa cattle feed. Hatsun Agro’s products are exported to over 40 countries globally. Observing the unprecented growth company has charted out Rs.850-crore expansion plan over the next two years through market penetration and exploring new horizons.

Profit for the period stood at Rs306.76 crore as compared with Rs287.32 crore reported in the year-ago quarter. Sales from domestic market increased by 9.7%

during the January-March quarter while total sales rose by 9.1% to Rs2,575.74 crore as compared with Rs2,360.80 crore in the year-ago quarter. Hatsun Agro Product Ltd With a market capital of more than Rs.10,000-crore Hatsun Agro Product Ltd is India’s largest private sector dairy company, has clarified that its products including Arokya, branded liquid milk, meet the highest quality standards. RG Chandramogan, Chairman and Managing Director, Hatsun Agro, said the company directly procures milk from over 4 lakh farmers spread across 10,500 villages across South India. The company has a modern infrastructure to chill and process the milk with over 10,150 collection centres, 98 chilling

Mondelez international In its 70 years of presence in the country, the U.S.-based company has grown to dominate the Rs 8,500-crore Indian chocolate market with a share of 65 per cent. Dairy Milk accounts for 41 per cent of the pie, the highest market share it has anywhere in the world. In the 12 months leading to August 2017, the industry grew at 12.4 per cent, Another factor that has prompted the company, which also produces Dairy Milk Silk Oreo, Cadbury Fuse, Cadbury Lickables and Monster Gems, to expand its reach is the spike in demand from rural areas, where the market is growing 1.5 times to 1.8 times that of cities and towns. Haldirams Haldiram’s, a business venture which started with a small shop in Rajasthan’s Bikaner, is now the biggest snacks maker in India, with an annual turnover of Rs 4,000 crore.

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Haldiram’s, said to be worth Rs 5000 crore, is the second largest Indian food brand after Parle and the leader in traditional snacks market, dominating five of its rivals — Balaji Wafers, Prataap Snacks, Bikanervala, Bikaji Foods and DFM Foods. The company sells its products through three branches, Haldiram Snacks and Ethnic Foods for the northern region, the Nagpur-based Haldiram Foods International for the western and southern markets, and Haldiram Bhujiawala for the eastern market. Challenges and Way Ahead Indian packaged food (snacks) industry still has untapped segments and an underpenetrated rural market. Furthermore, export opportunities are rising with India’s growing integration with the global economy, its proximity to key export destinations like Middle East and expected spike in global demand as emerging markets grow at a fast pace. Despite huge potential, Indian packaged food (snacks) industry faces challenge in terms of basic infrastructure, such as lack of adequate number of cold storage ware houses, efficient supply chain management for movement of perishable items etc. The industry is also prone to the vagaries of price fluctuations in the commodity that they utilize and is highly fragmented with presence of several regional players apart from few national level players. Recently, many small regional players have mushroomed across the country which has added to competitive intensity of the industry. Hence, the biggest challenge for the industry players would be scaling up their regional presence to a national level while maintaining highest quality standards.

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Food Safety a Fundamental right Analyzing the proactive role of Food Safety and Standards Authority of India (FSSAI)

he central food regulator has been very proactive with regard to issues like safety and standards, including labelling of packaged products and nutrient content, which has led to a sharp rise in the number of notices, orders and guidelines issued by it since 2015. A series of notifications and guidelines have been issued by the Food Safety and Standards Authority of India (FSSAI) to safeguard consumer interest as part of the health ministry's plan to strengthen the regulatory regime. Food regulation in India has mostly been a conflicting turf between the industry, regulator and consumer. However, packaged food industry is rapidly growing, making it all the more important for the government and regulator to set ground rules in the interest of the industry as well as consumers. Packaged food is the reality of the day but so is growing burden of disorders like obesity, diabetes and heart ailments. FSSAI and the ministry are trying to work with food companies to bring in provisions like nutrient profiling not just for packaged food but also in restaurants as this will allow consumers to make an informed choice.

India's diabetes burden and obesity problem have assumed serious levels. Experts blame these on the consumption of sugary beverages and junk food. The disease burden is also fast increasing among children. FSSAI plans to control sourcing of raw materials by restaurants and food manufacturers. So far, vendors of vegetables, spices and other raw materials are not required to have licences from the FSSAI. Creating an ecosystem for safe foods rests on three pillars - the responsible citizen, food businesses and the regulator. FSSAI has to go a long way in basically figuring out, educating consumers and citizens as to what food is safe and how to have it, these are issues it is working on with lot of stakeholders to create demand for safe food. The idea of the food regulator is to curb tendency of consuming undesirable food items, enable the industry to produce safe and wholesome food which is also expected of them and finally constant improvement in food standards. The Indian food regulator has worked relentlessly in the past three years to provide standards that are globally benchmarked and the good things is most of food standards have either been released or are in final stages of being released.

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Food safety – need of the hour Food safety has been a serious public health concern for India that also faces the challenge of feeding a large population spread over a vast geography. As per the United Nations, India has about 195 million undernourished people, and it shares a quarter of the global hunger burden. Nearly 4 out of 10 children in India are not meeting their full human potential because of chronic undernutrition or stunting, according to the UN. And added to all of this is the problem of food contamination. The struggle is to not just provide food to people, but to provide ‘safe food’. Food safety is not just for the rich but is a fundamental right for every individual in India. However, the country is also grappling with problems of compliance to food standards. In terms of implementation of law, compliance of food standards by the food businesses, understanding by the consumer, India is far behind, and a lot of work is required to be done. The supply chain infrastructure in India is also poor and causes the wastage of millions of tonnes of food every year. Take, for example—milk. India is the largest producer of milk in the world, but

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47 and can be used via hand-held devices like mobile phones and tablets.

a huge percentage of the milk is wasted due to lack of adequate storage. Also the big challenge in food safety is the lack of awareness among the masses about what they can call ‘safe food’ and how to ensure that their family only consumes safe food. So in bid to encourage States to have a robust food safety ecosystem, FSSAI has launched a food safety index to measure their performance on various parameters, which will include status of food safety infrastructure, manpower, enforcement, training capacity and steps to address consumer grievances, among others.

to attract young talent and plans to set up an international training centre in Mumbai in collaboration with the Export Inspection Council. Proactive role of FSSAI in attain food safety Till some time back, FSSAI has faced the brunt of being mismanaged and a body that had anti-industrial policy. It faced great opposition and their work method was even criticised by the big industrial bodies as well as the government. Even earlier this year, the parliament had asked it to gear up as the food safety in India seemed to be in havoc.

To strengthen the country’s food testing infrastructure, under the Food Safety on Wheels initiative, 62 mobile food lab units will be deployed across the country for food testing, public education and awareness and for conducting training and certification programmes.

But with time a hard word FSSAI, has repositioned itself as one of the best regulatory body that is proactively working to enhance he food safety standard of India and making food industry ready to face international challenges and tests.

The mobile labs will help officials of various States and Union Territories to enhance their surveillance activities and outreach even in far-flung areas.

Below are noticeable work done by the regulator this year that has been recognised as effective and innovative work; Food Safety Compliance through Regular Inspections and Sampling’ (FoSCoRIS) system Taking another step to ensure food safety, FSSAI has directed states to implement a web-based real-time inspection platform for food safety officers (FSOs).

The multi-purpose vehicles will have a fully functional laboratory equipped with basic infrastructure for quick testing for detection of common adulterants in various food commodities. The regulator has also launched a digital solution to connect all the government and private food labs to a centralized lab management system called InFolNet (Indian Food Laboratory Network). High-end testing The regulator is also working on further strengthening 45 State food labs by providing them high-end testing equipment. Other initiatives include conducting Junior Analyst Examination

The ‘Food Safety Compliance through Regular Inspections and Sampling’ (FoSCoRIS) system uses instant geotagging, time stamping, real-time data collection and multiple levels of verification

Agro & Food Processing October 2017

The technology will help ensure periodic inspections of food businesses are carried out by regulatory staff on a regular basis in an objective and transparent manner. Such inspections would use standard compliance matrices to ensure consistency in approach of inspections across the country. This would replace the current system of ad hoc and subjective inspections and sampling that are currently carried out by the regulatory staff. This would use a nationwide information technology (IT) platform to bring together all key stakeholders—the food businesses, FSOs, designated officers (DOs), state food safety commissioners (FSCs) so that such inspections and sampling is done by maintaining a high level of integrity of the process and the process itself is effectively monitored at various levels. Inspection, sampling and test result data will be shared seamlessly by all officials, right from field level to district, state and national level.. FSSAI will develop the FoSCoRIS system and put in place infrastructure required for its operation and maintenance at the national level. The food regulator will provide the devices and reimburse internet charges. During inspection, samples could also be picked and noted. The evidence and traceability will follow, based on the unique ID generated for the sample. Through FoSCoRIS, details of the food

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48 safety officerâ&#x20AC;&#x2122;s location and the area of FSO will be collected on a real-time basis. Every detail of log-in and log-out time and location will be collected on the central server of the system. Also interestingly, random four-to-five pictures will automatically be captured by the device using the front as well as the rear camera on a mobile phone or a tablet. The collected data in the system includes geo tags of location, time, date, inspection report and pictures of FSOs and his location. The FSSAI and State Food Safety Commissioners would be able to monitor each and every inspection on a real-time basis and afterwards as well. The data collected from inspection reports and samples will be analyzed to understand the areas and food products to be focused on identify hot-spots, trends and pattern in food safety to take corrective measures and for policy interventions. This will also help assess the performance of field level officers and help improve their efficiency. Food labelling The Food Safety and Standards Authority of India (FSSAI) is finalising new labelling norms for packaged food

companies, which is expected to include provisions to ensure more transparency on sodium, sugar and saturated fat content in processed food. The new norms will incorporate recommendations of an expert group which has proposed positive nutritional labelling and has proposed making it mandatory for packaged food companies to disclose total calories/energy value, amount of carbohydrates, sugar, fat, protein and sodium on their labels. The expert group was constituted by FSSAI in 2015 to provide recommendations on various issues, including labelling requirements for packaged food and regulatory limits for fat, sugar and salt in processed food among others. The group has made several recommendations such as banning advertising of food high in fat, salt and sugar on children television channels or during children shows. It has also suggested that celebrity endorsements of such foods should be discouraged. It has also recommended imposition of additional tax on packaged foods with high salt, high sugar and high fat content. The recommendations will be incorporated in new labelling regulations,

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which are in the process of finalising. On its website, FSSAI said the expert groupâ&#x20AC;&#x2122;s report serves as a guideline document for all the stakeholders, including the industry, the FSSAI and consumers, in reducing consumption of fat, sugar and salt through processed food products. After the report was approved by the scientific committee of FSSAI, it has been put in the public domain by the regulator. Other recommendations include encouraging industry for voluntary reformulation of food products to reduce the content of saturated fats, sugar and salt in packaged food. It has also recommended periodic monitoring of fat, salt and sugar intakes at national level. The Department of Health and Family Welfare is moving towards a regime to make the labelling of GM foods mandatory and declaring the threshold level of the genetically engineered ingredient on GM products. Indian Council for Medical Research (ICMR) is collecting evidence on the impact of GM food on humans and that ICMR is soon going to provide leads to the Health ministry. Any product which has 5 per cent or more of the genetically engineered ingredient shall be labeled.

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safety will improve. It (training) has already begun across the country and all food businesses are needed to have at least one person as food safety supervisor who has to be trained and certified as per FSSAI's curriculum.

Food fortification FSSAI is working with the industry to understand the challenges being faced in promoting fortification of wheat flour, rice and double fortification of salt.

suffice, state governments in many cases require hand-holding support in order to first be sensitized about why going for fortification and enable them to procure in various programs, fortified staples.

The regulator received fairly good amount of success in getting the freemarket availability of fortified oil and milk but in case of wheat flour, rice and double fortification of salts, the progress has been slow, though it is working with the food industry to nudge them, persuade them to understand what the challenges they are facing are.

In many of these programs, particularly where dependence is on local initiatives at the state government level are not easy to implement and they take their own time.

The FSSAI is also trying to figure out regulatory concerns the industry might have as they go in for fortification. Obviously in fortification as per standards, one has to continuously monitor and evaluate whether right result are being achieved, so for doing all of it establishment of Food Fortification Resource Centre with the support of Tata Trust at FSSAI has been started. The food regulator have a dedicated team working to promote large-scale fortification of these five staples in the country. Despite government policy for fortification, the progress has been somewhat limited, except a few areas where excellence has been achieved largely based on initiatives of individual officers who have felt and recognised the need for fortified staples to reach out the benefit of fortification to the poorest of the poor. But by and large, there had been a lukewarm response to it. In last one year significant progress in terms of standards have been made, giving some structure to the space, but going around the country, to educate and enlighten people is still on the way. Also when it comes to achieving food fortification of five staples across India, there is a long way to go as there are many challenges to make it happen. Merely issuing orders and notifications from Government of India will not

Tata Trusts has been partnering with the government in milk fortification programme, expects to cover the entire organised sector within the next 6-9 months, much ahead of schedule. The philanthropic bodies set up by Tata group founders had earlier set a target of fortifying 50 per cent of organised sector milk by 2019. The trusts have joined hands with central food safety regulator FSSAI, National Dairy Development Board (NDDB) and other co-operatives in many states to add micro-nutrients, especially Vitamin A and D in milk to address deficiency problems as part of its food fortification programme. Nationwide training programme for food safety FSSAI has taken up a nationwide training programme to increase the capacity of food businesses towards improving standards of food safety, as many small food businesses are not even aware what steps should be taken towards raising food safety standards. It has taken up a massive programme for training and capacity building in food businesses. Once that happens, the standards of food

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The training programme has begun across the country several months ago and the plan is to reach out to five to six lakh food businesses in about two years. The main focus will be medium and large businesses. The challenge is to reach out to several lakh food businesses, five-six lakh food businesses to begin with, which will be done in one-and-half to two years. The enforcement of food safety standards is done largely through the state food safety commissioners and FSSAI is trying to work with all states to improve the standards of food safety. Different states are in different stages of evolution. In some states, it is very good. In some states, there is a gap. The regulator is trying to work with all the states so that there will be improvement in quality of compliance by the food businesses. Food safety is a shared responsibility among food regulators and industry players, and taking this into context, KFC has entered in this initiative to help FSSAI to enhance capability among the unorganised sector. It will train 500 street Food vendors in India under the â&#x20AC;&#x2DC;Clean Street Foodâ&#x20AC;&#x2122; campaign of Food Safety and Standards Authority of India and be the first quick service restaurant to take up the initiative. In the first phase, KFC would train about 500 street Food vendors during the next five months. The training would focus on key aspects of hygiene, food handling, waste disposal

CHANGING ERA

51 in India in Manesar. NFSI will work closely with the Nestle R&D Centre India and Nestle Research Center in Lausanne, Switzerland. The institute is aimed at building and sharing knowledge through collaborative partnerships for strengthening the food safety environment in India. India is still at nascent age as far food safety and security is concerned and the biggest challenge is to create a demand for safe and hygienic food through awareness so that private organisations start delivering on the safety standards.

and pest control to help street food vendors adopt food safety practices while serving safe food to consumers. Upon completion of the training, the food vendors would receive a certification of completion of FoSTaC (Food Safety Training and Certification) training. FSSAI has asked all States and Union territories to initiate a special drive to implement its Food Safety and Certification Programme (FoSTaC) for all licensed food business operators. It has also asked them to appoint a nodal officer to implement this initiative. This FSSAI dictate to States comes after it had made training and certification mandatory for all food businesses that have Central or State licenses. It has been decided that all food businesses with Central and State license need to have at least one trained and certified food safety supervisor for every 25 food handlers or part thereof on all their premises. These food safety supervisors will need to carry out periodic on-site training of all food handlers on a quarterly basis and need to maintain a record for all food safety audit and inspections. State and UTs need to designate a senior officer as a nodal officer for FoSTaC to implement the policy. Besides appointing nodal officers, States will now need to develop an action plan for training of food safety supervisors and food handlers on a mandatory basis. They will also need to identify and facilitate empanelment of training partners to implement FoSTaC. Stopping sub-standard imports The government is working towards strengthening standards norms and certification for the shipments coming

into the country, as a part of its strategy to rein sub-standard imports from countries including China. This will not only result in exports promotion, but also curb cheap imports from countries. Any item that enters the Indian shores must adhere to certain quality and standards as FSSAI, Bureau of Indian Standards, Agricultural and Processed Food Products Export Development Authority (APEDA), among others would be working towards setting certain standards and technical regulations for imports. In fact, the commerce ministry has told other ministries to consistently monitor and review imports of goods pertaining to their industry. The development comes at a time when there has also been a growing clamour on for import restriction on items, especially related to renewable energy, electronics and information technology as inward shipments of these products has escalated from China. Institute for food safety Nestle India has started its first Nestle Food Safety Institute (NFSI)

Agro & Food Processing October 2017

The partnership between Nestle and FSSAI is very well thought strategy as FSSAI has been working with Nestle India for setting up the institute at Manesar, where Nestle has its research and development centre, for the past seven months. In turn, Nestle Food Safety Institute will conduct training programmes, on food safety management systems, testing methods and regulatory standards. Partnerships with private parties on food safety and standards are imperative for FSSAI. This is an effort to implement a first world regulatory ecosystem in India.

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CHANGING ERA

52 Nestle can also help with its global expertise in areas of food science, which will help FSSAI in taking informed decisions while formulating regulations While this is the first such institute in India, Nestle already runs a similar institute each in China and Lausanne, Switzerland. At the endâ&#x20AC;Ś.Why is food safety important? Food safety is everybodyâ&#x20AC;&#x2122;s concern, and it is difficult to find anyone who has not encountered an unpleasant moment of foodborne illness at least once in the past year. Foodborne illnesses may result from the consumption of food contaminated by microbial pathogens, toxic chemicals or radioactive materials. Food allergy is another emerging problem. While many foodborne diseases may be self-limiting, some can be very serious and even result in death. Ensuring food safety has become increasingly important in context of changing food habits, popularization of mass catering establishments and globalization of our food supply. As our food supply becomes increasingly globalized, the need to strengthen food safety systems in and between all countries is becoming more and more evident. The informal food production and marketing system is still strong in most countries, like India and many of the South-East Asia Region, which presents challenges for enforcement of food safety regulations. As a result, instances of food adulteration and contamination can occur. Traditionally, societal preferences call for hot and well-cooked food, and even milk is boiled (pasteurized). These habits

are partially responsible for preventing foodborne infections. Street food is popular in urban settings in many countries. Hygienic conditions are improving, provided that potable water supply and clean facilities are ensured by municipal authorities. The introduction of bottled drinking water and its popularity in urban areas has contributed to prevent waterborne and diarrhoea diseases in countries with inconsistent water treatment. Political awareness and consumer education on food safety will help strengthen enforcement of food standards, improve hygienic practices, and prevent foodborne illnesses. Ensuring food safety starts with production, at the farm level. In this regard, misuse of agro-chemicals, including pesticides, growth hormones and veterinary drugs may have harmful effects on human health. The microbial and chemical risks could be introduced at the farm-level (e.g. using water contaminated by industrial waste or poultry farm waste for irrigation of crops). Good agricultural practices should be applied to reduce microbial and chemical hazards. Organic farming (without the use of pesticides) has been promoted in many countries of the South-East Asia Region, as there is a significant segment of health-conscious people, particularly in urban settings. Although organic products are expensive as compared to commonly available food

Agro & Food Processing October 2017

items, there is a tendency among healthconscious consumers to eat less, but buy organic foods. Ensuring food safety requires due attention during harvest, transport, processing, storage and finally during food preparation and storage by consumers. Processed, frozen or ready-to-eat food is gaining popularity in recent years due to changing food habits, product diversification, and busy lifestyle and mass production practices. In urban settings, there is a growing tendency to buy meat, milk and vegetables on the weekend and store these items in the freezer or refrigerator. Microwave ovens are often used for reheating of food. However, while using a refrigerator and microwave are part of daily life in urban settings, most users and food handlers rarely have a chance to learn how to safely store and reheat food. Indian food safety standard is still to up to the mark as compared to the international standard. This has always been one reason that has hindered the Indian food export market, as the international rule for food safety is very stringent. Most recent example is the slowdown of Indian fruits and vegetables export as the regulation for exporting has become so strict that most of Indian products do not meet the requirements of safety. Earlier this year, the Parliament had already slammed the Health Ministry and FSSAI on negligence of food safety in the country.

HIGH HOPES

Increase in demand of Made In India Food Processing Machinery Food Processing Machinery Industry is expected to growth at 15-20% fueled by strong international and domestic demand for food products. Industry focuses on modernization, automation, and energy efficient process.

ood processing industry is one of the largest industries in India and ranked 5th in terms of production, consumption and export. Earlier, food processing was largely confined to the food preservation, packaging and transportation, which mainly involved salting, curdling, drying, pickling, etc. However, over the years, with emerging new markets and technologies, the sector has widened its scope. It has started producing many new items like readyto-eat food, beverages, processed and frozen fruit and vegetable products, marine and meat products, etc. It also includes establishment of post-harvest infrastructure for processing of various food items like cold storage facilities, food parks, packaging centres, value added centres, irradiation facilities and modernised abattoir.

size of the Indian food processing industry is expected to reach around USD 350.0 billion by 2018.

Asia Pacific is one of the fastest growing markets for food processing equipment. The market is driven by increasing demand of processed food products in emerging and developing countries including India, China, Indonesia and Thailand. In Asia Pacific region, China accounts for the largest market in food processing equipment. The total market

Technological Status The availability of raw materials, changing lifestyles, needs to offer broader selection of food products at lower costs and innovation in technology are some of key factors that drive the growth of food processing equipment market worldwide. Among various food processing equipment, bakery and pasta equipment

The food processing industry is dynamic and fast-paced and holds a unique position in Indian economy. The changing food habits, ready-to-eat and lifestyle have given new opportunities to food producers, machinery makers, technology and service providers. The food processing industry has taken a new direction and is growing steadily. Infrastructure development will take this industry to new heights in near future with the help of adequate investments and exports. With the food processing sector being identified as a high priority industry in India, the equipment sector is also gaining importance.

Agro & Food Processing October 2017

market is growing at faster rate. The growing income level of individual leads to more investment over food processing equipment. Large population base in Asia Pacific countries and frequent change in food preference among individuals lead to increasing demand for food products. This changing trend leads to investment more on food processing equipment. Due to advancements in technology related to cutting, slicing and grinding in food processing equipment, many manufacturers in food industry are replacing their older machines with newer ones that are more efficient and boost their bottom line through higher throughput. Equipment categories include chillers, dryers, feeders, fryers, grinders, homogenisers, mixers, roasters, separators, slicers and ovens. Most food processing machines have similar automation and motion control needs, such as material conveying and positioning, heating, drying and cooling. They also require cleanliness, gentle handling and precise control of temperatures, pressures, treatment times

and other process parameters. In addition, food processing machinery is often integrated with high-speed packaging and labelling equipment. The trends are more towards consumer goods like ready-to-eat food products, juices, quick consumption products, health food and drinks. Companies are looking to launch such products in the market and technology suppliers are working on this too. The total market size of food processing equipment industry in India is estimated at US$ 1,580 million. This estimate considers only the organised industry. There has been a steady increase in market and the overall growth of Indian market averaged at 15 per cent

HIGH HOPES

considering the next four years even the countryâ&#x20AC;&#x2122;s export rate of food processing machinery has also increased.

Ravi Mirchandani, Director-Dynamic Engineers-Most exports are to African and Asian countries, as India still lacks the high-quality machines similar to western countries.

We interviewed some of leading technology providers in this segment to understand where food processing & packaging machinery segment is going in next 5 years.

Dilip Wagh, Director-6 Sigma Foodtech India is way behind in food processing machines manufacturing. Manufacturers do not have any budget for R & D. Government of India is not at all supporting experts in industry to develop machines, but on other hand they support manufacturers to buy machines form US & Europe. As Indian ethnic food is so different than universal food, most of products we do not find any continuous machines, at our end we have started developing machines for processing Indian food. Market in India is so big & growing, needs full attention.

What is the current scenario of food processing, packaging, and allied machinery export of India? Sanjeev Gupta, Director-Kanchan Metals Pvt Ltd. India itself is a big market and growing in a healthy rate. In fact, all manufacturers from developed countries are looking at India as one of the major markets and many of them are setting up their manufacturing units in India. Hence exports from India in such a scenario are limited.

V. Gokul Das, MD - HRS Process Systems Limited Export of food processing, packaging and allied machinery from India has seen a modest growth in the past decade. However, this is limited to developing nations and predominantly the African continent. There is good export to Asian and Southeast Asian Countries, including bilateral trade. Recently companies like

121, 1st Floor, Rassaz Multiplex, Station Road, Mira Road (E), Dist Thane - 401 107, Maharashtra. Ph. : +91-22-28115068, 28555069, 8689979988 Email : info@agronfoodprocessing.com www.agronfoodprocessing.com

Agro & Food Processing October 2017

HIGH HOPES

HRS and others are engaged in export of high quality and capacity processing lines for various food processing applications. Indian food processing industry is one of the fastest growing segments in India and in the global arena. Growth will be higher in coming years due to higher disposable income of the population in urban areas. Similar growth has been witnessed from the rural areas as well. Considering these factors demand for latest technologies will grow rapidly and India is going to be the biggest buyer of these machineries both from local as well as foreign markets. What are the factors driving growth, at what CGAR you are expecting in upcoming years? Sanjeev Gupta-Increased spending power of the consumer is leading to growth in demand of food products in India. Better retailing set ups is increasing Food products sales. This is resulting in higher Capex for manufacturing of food items. This leads to higher demand for machinery sector. Ravi Mirchandani - People want more automation they want to reduce manpower from process & also they want to reduce fuel cost, CGAR is 30 per cent. Dilip WaghDriving growth is the food industry segment general consumers are aware on food convenience & new generation wants fast food even in house with minimum trouble they want to make food faster. There will be huge youth population growth in this segment & supporting machine manufacturers need to cope up the demand on food.

food products and the advantages and easy availability in local stores have been some of the big growth driving factors. Also, people have become more health conscious and are also looking at their convenience, to have time to peruse other things in life. We anticipate a modest over all CGAR of 20 per cent for the entire spectrum. Advancements Food processing equipment features some of the most sophisticated automation around. But, most machines are assembled manually. Thatâ&#x20AC;&#x2122;s because high-mix, lowvolume production is the rule rather than the exception. Food processing machinery comes in all shapes and sizes to meet the widespread demands of companies that produce beverages, bakery items, candy, dairy goods, frozen food, fruit, meat, poultry, seafood, snack food, vegetables, and other edibles. Equipment categories include chillers, dryers, feeders, fryers, grinders, homogenisers, mixers, roasters, separators, slicers and ovens. Most food processing machines have similar automation and motion control needs, such as material conveying and positioning, heating, drying and cooling. They also require cleanliness, gentle handling and precise control of temperatures, pressures, treatment times and other process parameters. In addition, food processing machinery is often integrated with high-speed packaging and labelling equipment

We expect 10 per cent CGAR for Indian machines manufacturers this year as with finance condition of manufacturer are not in great guns.

Equipment and systems designed for the food processing industry share many of the same basic components used in discrete manufacturing but, the machines become even more complex once a labyrinth of digital sensors, pipes, transmitters, tanks, tubes and other components are added into the mix.

V. Gokul Das - The food processing sector is expected to grow by leaps and bound. The key growth driver is consumer demand. Globalization, coupled with higher disposable income, nuclear families, awareness of processed

Technological advancements in cutting, slicing and grinding machinery have also led to increased sales of these units over the past 10 years. Due to incredibly broad range of machinery types and specifications demanded by food

Agro & Food Processing October 2017

processing companies, the industry tends to be quite fragmented. With thousands of individual types of food processing machines produced worldwide, only the largest manufacturers can offer anything close to complete range of products . What are the current technologies you are offering to the developing countries, what latest advancements you are providing to cater future demand of these nations? Dilip Wagh - We are proud to have started offering couple of machines to developed countries & getting response on same. At Advent Fundtech, we have developed machines which no one in developed countries tried to develop as in India customer wants machine to handle all types of product in same machine, which really helped our think tank to build machines to customer satisfaction. In very short span, we developed Pomegranate Aril extractor, new type of Versatile Combination Dual type of Blanching & Cooling. Special custom designed mixer & cookers for Indian products, pomegranate seed oil extraction, etc. Ravi Mirchandani - We are offering latest heating systems which can reduce dependence on fuel such as diesel & gas, instead we are offering wood based heating system which can reduce the fuel cost by 1/5th. We have developed range of multi snacks fryers enabling to make

Desert Range CUSTARD POWDER, INSTANT CHINA GRASS, VEG JELLY CASTER, SUGARFREE JELLY, KULFI MIX,ICE-CREAM MIX, CHOCOLATE MOUSSE, WHIPPED CREAM, DRINKING CHOCOLATE, INSTANT PUDDING & GULAB JAMUN MIX,

Food Additives BAKING POWDER, CITRIC ACID CTYSTALS, ACTIVE DRY YEAST, COCOA & TEST-MI-NOV

Sugar & Flours CASTER SUGAR, DEMERARA SUGAR, ICING SUGAR, SELF RAISING SUPERFINE FLOUR, CORN FLOUR & MAIDA ALL PURPOSE FLOUR

HIGH HOPES

with tailor made applications. How do you deal with this? Dilip Wagh - Customer wants to process food at minimum efforts & capital cost. It’s very difficult to meet their demand as we cannot mix two different applications & use one line. With vast country & thousands of food dishes in this country it is great opportunity to all machine manufacturers to develop machines with food hygiene & safety for diversified food stuff.

potato chips, Pellets, Indian ethnic snacks in the same machine.

market averaged at 25%, considering the next four years.

Sanjeev Gupta – Kanchan Metals is concentrating to offer latest technologies to the India market.

India exported food processing machines worth USD 249,029,808.12 with total quantity of 16073 in 2015-2016 while in 2016/2017 (April to June) USD 56,215,466.75.

V. Gokul Das - HRS offers range of customized heat exchangers and heat exchanger based systems for a wide spectrum of manufacturing and process industries. HRS products range includes ECOFLUX* Corrugated Tube Heat Exchangers, HRS Funke Plate Heat Exchangers and customized heat exchanger based systems. HRS adds value to food processing industry with advanced product range of HRS Monobloc* Aseptic Steriliser with Filler, evaporation systems, turnkey beverage processing solutions as well as Unicus® scrapped surface heat exchanger, Hygienic Piston Pump, HRS ParaDice dice pasteurizer and systems for special applications in dairy, nutraceuticals and infant food supplements. We provide all latest technology even to developing countries. However, we customize and engineer solutions suitable for their market in terms of available produce, manpower, technical capability and service availability for key components. HRS is providing process lines which can be upgraded in future based on growing demand in these nations. The total market size of food processing equipment industry in India is estimated at US$ 1,571 million. This estimate considers only the organised industry. There has been a steady increase in market and the overall growth of Indian

Kenya is the largest buyer of food processing machine accounting for exports worth USD 615,162 followed by Argentina and Mozambique which imported food processing machine worth USD 390,600 and USD 277,253 respectively. Among India's total machinery production only around 10% of food processing equipment are exported out of total domestic production. Which are the major markets you export your machines to? V. Gokul Das - HRS export market is global. We have been supplying food processing machinery to our neighbour countries Sri Lanka, Nepal, Bangladesh, African countries, Malaysia and SouthEast Asia and some to Europe, America and Australia. These range from heat transfer equipment to complete processing line. Ravi Mirchandani – Dynamic Engineers export its machinery to Asia, Africa, UK & the USA. Dilip Wagh - Our exports are mainly to African countries & some under developing countries in Asia. Present day customers’ demands different kind and capacity machines

Agro & Food Processing October 2017

Ravi Mirchandani – We are flexible company that believes in taking upon challenges, so we have developed some of the smallest and biggest fryers in the new line. We have range of micro fryers, extremely small fryers for multiple snacks. Sanjeev Gupta – This requires resources for R and D and an approach of working as a technology partner with the customers. V. Gokul Das - Food processing machinery/process lines have always been designed to customer requirements and in some cases tailor-made for their applications. This is because of availability of different raw material at different location, market potential, seasonal nature of business and the most crucial factor for this segment is consumer taste and preferences. Thus, customisation and application engineering is always required in food processing units. HRS has the necessary technology design and engineering capability to cater to this requirement. The Government of India has introduced a scheme for Technology Upgradation and Modernisation of Food Processing Industries during the 12th Plan (201317) under National Mission on Food Processing. The main objective of the scheme is to increase the level of processing, reduce wastage, ensure value addition, and enhance the income of farmers as well as increase exports, thereby resulting in overall development of food processing sector. However, processing equipment manufacturing technology is not developed in India in accordance with the food processing retailing opportunities. Still a large number of specialised

HIGH HOPES

mix of local and imported technology for agro-food processing. Local technology was used for very small capacities (small scale or cottage industry) and imported technology was used for high production capacities and for export of produce. Companies have tried to bridge the gap in the past two decades and today are also exporting home grown technology to other countries. India ofcourse needs a better R&D support environment to cater to the growing demands. We feel in the coming year’s government and industry will take a step further in this direction.

equipment such as those used in bakery, meat processing and packaging are imported. Technologies available in India in the agro-food processing equipment sector are at primitive stage compared to the developed countries. Your comments? Do you think India needs better R & D support environment to cater domestic & global demand? Dilip Wagh - Vey right, food processing machines manufacturing are in primitive stage & manufacturer who are small first generation in business need support from financing companies or government. We tied up with good companies globally & need support to put up a new big manufacturing facility to cope Indian demand & exports. Government is not taking any step to support Food Machine Manufacturers. R & D plays a very crucial role for Indian food as all machines manufacturers from US & Europe develop machines for their own country food & we accept and promote their food in our country. It is our turn to develop machines & export them so as this developed countries can taste our cuisine. Big industrial group from India are missing in this field. Sanjeev Gupta – The sector is growing very fast with development in resources. There is a big scope for foreign companies to invest with Indian companies to provide latest technologies. Yes, this is required to be able to meet domestic demand with state-of-art technologies.

Ravi Mirchandani – I would not say primitive but Indian technologies have adopted to the Indian conditions, however there is always scope for improvement to compete with the world. R&D is a must for product development as many food processing sectors require automation especially Indians make that are cost effective rather than western machines which are expensive, for machines to be 'Make in India' they must be 'R&D' in India also. V. Gokul Das - Technologies available in India in the agro-food processing equipment sector are not at primitive stage compared to the developed countries. The industry always had a

Challenges, Opportunities Shortage of skilled labour and food safety concerns were the key challenges for food processing industry and this was encouraging food processors to invest in automation. Many conventional processes for making Indian ethnic snacks are being converted to automated lines. Many companies, both Indian and foreign, are planning big investments in the food processing segment. While speaking on challenges, experts said that manufacturers look at optimum cost, developing good processing, skilled manpower. Market is growing as spending power of people has increased tremendously and so has the demand for quality products. There are new colleges with specialised courses to focus on new developments in this sector.

Drink Technology 26th- 28stOctober 2017 Praga? Maidan New Delhi GulFood Manufacturing 31-st 2 nd November 2017 UAE (Dubai) World Food India, 3rd– 5th November 2017 New Delhi

SWOP PACKAGING 7th – 10th November 2017 Shanghai New Interna?onal Expo Centre, China FI India 9th – 11th November 2017 Mumbai

Agro & Food Processing October 2017

Bakery Bizz 1-st 3 rd December 2017 Hong Kong Conven?on & Exhibi?on Centre, Hong Kong

Indian Cold Chain 12th – 14th December 2017 Bombay Exhibi?on center (NESCO) Mumbai Khadyakhurak, 2nd-5th Jan 2018 Ahmedabad Gulf Food Dubai th nd 18 – 22 Feburary 2018 Dubai

ANUGA FOOD TEC 20th – 23rd March 2018 Cologne, Germany

NEWS

Nichrome now offers Secondary and Tertiary packaging solutions

lexible packaging has come a long way since the old days when packaging was used only to protect or transport the product from place of manufacturing to consumer. Packaging today has become an integral part of a product and is considered as the 5th ‘P’ along with traditional 4 P’sProduct-Price-Place and Promotion. It has become imperative for brands to influence consumers through attractive packaging suitable for retail shelves and one time use smaller packaging with higher durability and shelf life to increase penetration to the rural and far away markets.

With growing market and increase in demand for production and limited availability of space, higher capacity packaging machines are in demand and this trend will increase multi- folds in coming times. Increasing speeds and capacities has made it necessary for bringing automation in secondary and tertiary packaging that match the higher production rates and enable protection of primary packs and easy storage and transfer of bulk quantities. Presently, the secondary and tertiary packaging is by and large a labor intensive activity. Automated secondary packaging enhances production capacity of plant contributing to increase in production capacities. It ensures correctness of no of packs in the secondary bag. It also arrests the adulteration to a large extent.

Secondary packaging projects can be installed online with the retail packaging to produce pick and go pack of customized quantity of primary pouches which can be then directly shifted to transportation for dispatch. Automation in Secondary packaging solutions can be designed for liquid, solid, viscous and powder products integrating into the processing line. The team of expert engineers from Nichrome works closely with the clients to offer customized solutions for their secondary and tertiary packaging needs. This involves designing the product flows and traffic control to match the current production capacity and the available space and offering the packaging equipment most suitable for the products. The equipment’s offered are Baling, overwrapping, Crating, Collating and stacking systems. For the product flow, different types of conveyors and turntables can be offered. Nichrome’s advanced technology for secondary packaging was exhibited at recently held Intelpack Exhibition in Mumbai. Nichrome Flexibale 450 offers packaging speed upto 120 primary pouches ( of 250 to 2000 gms.) per minute of 2 column

Agro & Food Processing October 2017

bale. Nichrome also displayed the Crating system for liquid milk that is integrated with the primary packing machines of speed 12000 packs per hour speeds. The system can detect leaked pouches via online leak detection mechanism, online check weighing and is equipped with “DOIT” – online data logging where user can analyze entire production saved on cloud or central server.

SHOW REPORT

IICE Ice Cream Expo 2017 Mumbai

7th IICE witnessed unprecented footfall from ice-cream industry

he seventh edition of South Asia’s only ice cream event ‘Indian Ice Cream Congress & Expo’ (IICE) kicked off at premises of Bombay Exhibition Center- NESCO, Goregaon (E) Mumbai on 15th & 16th September 2017. The event was inaugurated by Subhash Desai, Cabinet Minister of Industries, Maharashtra, along with national and international players of ice cream industry. Desai invited ice cream manufacturers to establish their factories in Maharashtra. “Maharashtra is already one of the leading manufacturing states in India for ice creams, ease of doing business in Maharashtra is best in the country and other states follow our policies”, he said.

automation, food safety and packaging. The chief guest for seminar was V.K Pancham, Deputy Director of FSSAI (Food and Safety standards Authority of India, Mumbai.

The two-day event is co-organised by IICMA (Indian Ice Cream Manufactures Association) & AIM Events with Bluestar India as its Title Sponsor witnessed the biggest footfall in the history of ice-cream event. IICE also organized 1-day international seminar that covered topics related to ice cream industry such as cold chain, ice-cream ingredients,

innovating new flavours and this event is a perfect platform to get innovative ideas.

Rajesh Gandhi, President of IICMA in his welcome note said that IICE is the only B2B show in South Asia that always provides hundreds of ice cream manufacturers from several parts of the country and world to exchange their views on this platform. He urged that it’s just not the per capita consumption of ice cream which is increasing but also consumers’ demand for the delicacy. Gandhi said that manufacturers are now investing on their capacity expansion as well

Sudhir Shah, Secretary of IICMA, Managing Director of Scoops Ice Cream stated that Indian ice cream industry is one of the fastest growing segments of the dairy or food processing industry. From Rs 9000 crore

Agro & Food Processing October 2017

in 2016, the ice-cream category has jumped to Rs 12,000 crore in 2017. Ice cream industry is growing at a rate of 15-20% year-on-year. India has a low per capita ice cream consumption of ice cream at 450 ml as compared with per capita consumption of ice cream of 22,000 ml in the United States and 3,000 ml in China. With the improving cold chain infrastructure in the country coupled with increasing disposable income and the changing lifestyle, the sector has great potential for growth. Shah duly acknowledges the role of ice cream parlors as they contribute to the companies’ growth and industry development as well. They become as focal points as ice cream

lovers associate with several popular brands through it. The growing number of parlors mushrooming everywhere in the country defines the growth of ice cream players as they gain wider reach and target audience. Srinivas Kamath- Natural Ice Creams, Chaitanya Rele- Havmor Ice Cream, Kiran

SHOW REPORT

Shah- Apsara Ice Cream, Anuvrat PabraiPabrai’s Ice Cream, Gunjain Jain-VKC Nuts, K.M.Sathyan- VKL, Prakash SanghviDelta Nutritive, Aditya Goyal-Mahaan International, Anurag Jain- Dupont, Ejvin F Lund- Tetrapak, Akshay Rastogi-HUL, Anders G Torbensen- Gram and Sergio BonoTeknoice and focused on the parlors-the real growth engine, ingredients’ role in ice cream segment, innovations and challenges of ice cream industry in a power-pack seminar held on day two. IICE second day began with a welcome note given by CMD of Havmor, Pradeep Chona who also felicitated V K Pancham, chief guest for the day. In his inaugural speech, Chona highlighted that the Indian ice cream industry is growing by 20-25 per cent every year. Chona said, “We appreciate the moderate of Prime Minister Modi of Make In India and support to ease of doing business. But the high-handedness of FSOs adds to

woes of manufacturers. Samples are failed on several grounds. Inefficient trainees FSOs are sent to collect samples, and the procedure of collecting samples is highly inept. A thorough system must be in place so that manufacturers should not suffer at the hands of these officers. The regulatory hindrances prevent smooth functioning & growth of the company. Food safety dept. officers must also be answerable.” Further he added that everyone in this industry must do their part for the benefit and growth of ice cream industry. IICE is the best platform to build network, gain knowledge about latest developments of different players in the industry. Thereafter, V K Pancham briefed about FSSAI regulations that are mandatory for any manufacturer/allied industry player for

the benefit of consumers. Ashraf Muhammad, Polar ice creams, South Africa, largest ice cream company value wise, another eminent personality who graced the occasion quoted a few words about this wonderful event. He said, “ice cream and happiness is synonymous and the same thing. It is very important for us to meet and speak collectively like in this Ice Cream Congress & Expo. We are the only independent manufactures in SA with largest percentage of total market share.” IICE with an aim to provide maximum service to its client is laddering growth by 100 per cent year-on-year. The show includes all activities which lead ice cream industries as well as manufacturers to their peak. Companies providing freezing and handling machines, packaging machines and materials, equipment and component suppliers, cone manufacturers, food ingredients companies, cold chain companies especially cold rooms and deep freezers, consultancy services, traders and

stockists, raw material suppliers, milk powder and chocolate suppliers, ice cream brands looking for expansions participated as exhibitors in the show. IICMA Joint Secretary, Ashish Nahar is leading the association on GST front. “Ice cream is no more considered as a seasonal or luxurious product, because consumers have made it an impulsive dessert and hence the ice cream industry was surprised when GST Council placed the product on 18 per cent tax slab. This high rate is likely to have an impact on the industry because we were anticipating 5 per cent GST rate”, he said. He gave vote of thanks at the end of seminar and expressed gratitude to everyone for their valuable time. Gandhi quoted that IICMA is continuously following government of India for lower GST

Agro & Food Processing October 2017

slab. He also added that “we are very positive for this reduction because GST council has kept all other dairy products in lower GST slabs”. This year, organizers of IICE and other event partners like Elanpro, 2M Cocoa, Morde, TetraPak, Calfornia Walnuts, DuPont, Mahaan-Ace International, VKC Nuts, Unique equipments were very glad with the response and footfall this event witnessed. Leading companies dealing in refrigeration industry like Western Equipments, Voltas, Haier, Bitzer, Tessol, Rinac, Ace Technologies, Consta, IC Ice Make and Frick India participated in the event. Likewise, companies into process machinery like Teknoice, Coldtech, Shruti Icemac Engineers, Goma, ISF, Harvest Engineers and those dealing in push-carts like Cart Studio, Bhogal Cycle, STM gained positive response this time. Moreover, raw material and packaging companies like VKL Flavors, OROR, Denali, Dukes, Kap

Group, The Cone Company, Ideal Baking Corporation, Print-n-Pack, Adani Wilmar, Delta Nutritives, Satnam Flexi-pac, Gujarat Enterprises, Lucid had on display their latest offerings for the ice cream industry. IICE 2017 seen more visitors and exhibitors from the previous edition. The number of visitors was about 4800 and with 200+ exhibitors, this event has seen another successful and enriching one. Firoz Naqvi, IICE organiser stated that leading companies dealing in refrigeration industry shown their interest in the event. This year, many cold chain companies participated in the event. He said the success of such events define industry growth rate. IICE 2018 will be taking place in South India’s heart that is ‘Chennai’.

NEWS

More Than A Brand Change

Minebea Intec is the new name for leading industrial measurement and inspection technology

Mohan Bhat Managing Director

artorius Intec has changed its name to Minebea Intec. This rebranding was the next logical step after having joined at that time the Minebea Group in the year 2015.

The Minebea Intec product portfolio includes industrial scales, process vessel and silo scales, checkweighers, metal detectors, X-ray inspection systems, process software solutions and aftersales-services. Via the company’s global presence, it stands beside its customers around the globe throughout the entire life cycle of its products and solutions, from assistance with selecting the right equipment, design-in support, installation and calibration, maintenance and repair services, through to embracing equipment upgrades and refurbishments and providing comprehensive user trainings. President of Sales, Marketing & Service, Peter Grimley, said: “We have used the rebranding exercise as an opportunity to make improvements – from major investment in the area of research and development to the expansion of the sales and service footprint combined with a completely new brand image

and intuitive product design. The company’s service commitment is unequivocal. ‘We make daily life safer’ is both a standard we Peter Grimley set for ourselves and a President Sales, Marketing & Service promise to customers and consumers around the world. Meanwhile the company slogan ‘The true measure’ underlines our position as a leading global supplier of products and solutions and the way in which we strive to set strong standards in all areas of the company.” The company has almost 70 years’ experience in supporting industry to ensure that manufactured goods have the right quality and do not contain any foreign bodies. The ability to do this is based on the ‘German Quality’ of its products and services combined with a continuous investment in developing leading technology. As a result, tens of thousands of customers put their trust in Minebea Intec having enabled them to supply millions of products and solutions during their long history. The Japanese parent group is a global manufacturer of precision electromechanical components,

supplying products to various industries. With the new brand Minebea Mitsumi, the company recently announced a new corporate logo following business integration between Minebea Co., Ltd. (Minebea) and Mitsumi Electric Co., Ltd. (Mitsumi). The continued objective of Minebea Mitsumi inc. is to introduce new value through Electro Mechanics Solutions™ in a society where everything will be connected via the Internet of Things (IoT). In India the company has recently expanded in new, spacious facilities in Bengaluru. Managing Director of Minebea Intec, Mohan Bhat underlines, “We have now additional space to assemble larger quantities of our Minebea Intec inspection products. Also, as per current planning, we will be starting production of Minebea Mitsumi products by Q3 of 2017, catering to the automotive sector.” Minebea Intec has around 1,000 employees as well as production and sales & service facilities in 17 countries around the globe. In India the company has 148 employees with a production facility measuring about 38,000 sq ft with 29,000 sq ft purely for manufacturing process.

Vitagreen excercies strict standards for best output

itagreen products Pvt. Ltd is a manufacturer and exporter of Spices, Instant mixes and food products. The company Bhavesh was established in 2009 with an aim to offer premium quality grounded, blended spices and instant mixes with natural taste at affordable prices. It has registered its presence across 15 states of India like Maharashtra, Kashmir, Delhi, Odisa, Rajasthan, Uttar Pradesh, Gujarat and Bihar to name a few. The products are available under the brand of 77GREEN in a variety of packaging from Rs. 5 sachet to 5 kg pack. The product line of the brand consists of ground and blended spices, instant ready-

to- cook snacks, Udad papad, hing and kasuri methi along with variety of Achar masalas. Vitagreen is also planning to launch readymade pickles and snacks in a short span of time. It has also been exporting its products to Australia, UAE, UK, Canada and South African countries. The instant mix recipes and blended spices with impeccable quality and consistency is major USP of the brand. Every ingredient and raw material has to qualify the lab testing standards before being eligible for processing. The brand exercises strict standards like HACCP for best outputs. Owing to its premium quality products, the brands secured various certifications such as ISO, Agmark and FSSAI along with spice board certification. For distribution outside Gujarat, stockist,

Agro & Food Processing October 2017

distributors and retailers do the needful while for Gujarat market apart from direct distributors. The brand works on a vision to be recognized in top 5 brands in industry along with selling the best of spices for promoting great health. With expanding markets and foray into new product categories, the company plans to strengthen the team of professionals. We also welcome the superstokiest & distributors to associate with the family of 77GREEN from each & every corner of the nation. They will be awarded with attractive commission margins, lucrative packing, and consistent quality with wide range of products.

NEWS

ANUTEC been the best sourcing platform for SAARC region

NUTEC- International FoodTec India and PackEx India concluded on a high note at Pragati Maidan, New Delhi and once again emerged as the Numero Uno supplier trade fair for food, drink, processing and packaging industry. Almost all the exhibitors from India and abroad were quite satisfied with the quality and quantity of the visitors who attended the Trade Fair. A total of 435 exhibitors, an increase of over 13 per cent as compared to its previous edition from over 30 countries presented their products and technologies during the three trade fair days over 50% of which were international brands. The exhibition once again confirmed its position as the best business platform that provides customized solutions for the Indian and neighboring markets. The exhibition witnessed around 10972 onetime registered visitors. Key visitors from different industry sectors were present during all the three days visiting the exhibition and constructively gathered insights into the technologies for the food and drink processing and packaging industries. The exhibition is growing year-on-year and has positioned itself as a global platform for the suppliers of food, drink, processing and packaging industry. The exhibition was completely busy with exhibitors making presentations about their product and technological offerings to the attendees at the fair. The presence of key decision makers from the food & drink industry was well appreciated by the exhibitors. ANUTEC-

International FoodTec India 2017 along with its concurrent trade fair PackEx India 2017 acted as a great platform for buyers and sellers of technology in food, drinks, dairy, confectionary, snacks, pharmaceuticals and cosmetics along with others to exchange dialogues to facilitate more business for future. It also gave the exhibitor’s existing clientele an insight into the latest manufacturing technology techniques. This has given the immense confidence to all participating companies from India & abroad to confirm their participation for the next edition of this exhibition. Some of the companies like, ABB, Bosch, Buhler, Mespack, Kanchan Metal, Heat & Control to name a few have used this platform to launch their latest machineries & innovations. The stream of visitors continued unabated till the last hour on the final trade fair day. The Feedback received from the key trade visitors from different sectors benchmarking ANUTEC – International FoodTec India & PackEx India as a truly international exhibition organised world over. The visitors have also expressed their satisfaction over the wide spectrum of technological solutions being showcased at the exhibition for their needs. The exhibition inauguration was held in the gracious presence of Michael Kessler, Counsellor, Food and Agriculture, Embassy of the Federal Republic of Germany, New Delhi, Sanjeev Gupta, President, Agro & Food Technology Providers Association of India, Manoj Paul, Heat and Control Pvt Ltd., Gokul Das, HRS Asia Pvt Ltd, and Ashwani

Pande, Managing Director, Koelnmesse YA Tradefair Pvt. Ltd. along with other dignitaries. All the dignitaries have shown their confidence and trust on these exhibitions and assure for more active participation from their respective countries in future editions. The exhibition had international group participations from China, France, Germany, Taiwan & Turkey apart from individual participation from over 30 countries showcasing the technological strength of their respective regions. The next edition of ANUTEC- will be organised once again at Hall No. 1, 5, 5A and 6, Bombay Exhibition Centre, Mumbai during September 27 - 29, 2017. Koelnmesse YA Tradefair Pvt Ltd, Indian subsidiary of Koelnmesse GmbH, has joined hands with The Institute of Packaging Machinery Manufacturers of India (IPMMI) and Indian Flexible Packaging & Folding Carton Manufacturers Association (IFCA) to promote PackEx India and ANUTEC – International FoodTec India. Starting from 2018, this conglomerate will lead in bringing together the vast expertise of Koelnmesse in field of organising trade fairs and IPMMI & IFCA, will promote the show amongst its members and will also be involved in organising a high technical seminar by bringing in experts from various fields of Packaging Industries and will help to share and find solutions for the technicalities and problems faced by packaging industries.

ACE Technologies manufactures Industrial purpose conveyor systems.

CE Technologies manufactures Industrial purpose conveyor systems. ACE breaks the paradigm associated with custom conveyors, conveyors made to order, and conveyors loaded with special features and options. Salient Features: We offer a full range of Rubber, Plastic, Slat, Wire Mesh, and Chain Belt Conveyors for unit handling and bulk handling in

both dry and wet environments Machines. They are available for moving material horizontally, and for elevating material. Applicable for all kind of industries like food, Beverage, Pharma, Automobile, warehouse, Logistics, Poultry, Dairy etc Types of Conveyors: • Incline conveyors • Flat Belt conveyors • Assembly line conveyors • Slat Belt Conveyors for bottling line

Agro & Food Processing October 2017

•In-process transfer conveyors • Z shaped Bucket Elevators • Roller Conveyor (Power & Gravity) •Spiral Conveyors & Over-head Conveyors • Screw Conveyors • Aero-Mechanical conveyors • Vibratory Feeders • Take-away conveyors for packing a wide range of Powder/Granules Food products

NEWS

Andina Pack 2017 - leading trade fair for attractive market in Andes region

he preparations for Andina Pack 2017 are running at full speed. Following the entrance of Koelnmesse into the event in 2015, the trade fair for processing and packaging technology has onceagain shifted up a gear: from 7 to 10 November, more exhibitors than ever before will present their technical solutions for the nutrition, pharmaceuticals and cosmetics industry in Bogota. The constant growth of Andina Pack continues for this 14th edition and underlines its outstanding position as the leading trade fair for the attractive market in the Andes region and Central America. With respect to internationality, the trade fair also made a clear jump with an increase in bookings of the international exhibition space by foreign exhibitors of 38 per cent. With a current number of around 500 exhibitors (431 in 2015) already, 55 per cent of these international, there has also been an increase in the number of exhibitors. In total, companies from currently 26 countries will exhibit at Andina Pack 2017, including top brands like BASF, Bosch Group, DuPont, Gerresheimer, Hewlett Packard,

Honeywell, Multivac, Owens Illinois, Sartorius, Smurfit Kappa. Andina-Pack will be organised for the first time jointly by Koelnmesse and Corferias de Bogotá. Another novelty of the event: exhibitors and trade visitors can look forward to an extensive event programme, which will be presented together with renowned partners. For the first time, the organisers are organising an “Innovation Capsule”, in which the 20 best innovations will be honoured and presented at the trade fair. A German pavilion with eleven participating companies is also celebrating a premiere, which was applied for by the German Mechanical Engineering Industry Association (VDMA) and is sponsored by the German Federal Ministry for Economic Affairs and Energy. Attractive platform for the market entry Denis Steker, Vice President International of Koelnmesse said “With the new event programme, we would also like to further increase the attractiveness and quality of the event as an industry meeting point and in this way significantly increase the number of visitors.” For companies from the processing and packaging technology segment, Andina Pack has long offered

the ideal entry point to the growing markets of the Andes region and Central America. Forecasts for the Colombian health market presume an average annual growth rate of 6.4 per cent until 2024. Due to the increasing per capita income, increasing demand for luxury goods like cosmetics is also anticipated. A significantly increasing need for modern process and packaging machinery and new technologies is expected in conjunction with these developments. Future-oriented event programme Trade visitors at Andina Pack 2017 can for the first time look forward to a comprehensive event and congress programme. Well-known experts will provide insights into themes involving the future of the processing and packaging industry on all days of the trade fair. The latest developments in the fields of production, processing and packaging will be illuminated in daily lectures. Other contributions will focus on global industry trends and their implications and possibilities for transfer to local and worldwide markets.

There is a need for integrated farming system in states

ammu and Kashmir Deputy Chief Minister Nirmal Singh appreciated integrated farming system as these types of models are need of the hour for the state where farmers are facing numerous challenges. The deputy chief minister said this during his visit to Sher-e-Kashmir University of Agricultural Sciences and Technology (SKUAST) Jammu to take stock of the Integrated Farming Model for Small and Marginal Farmers towards profitability, sustainability and livelihood security. The model has been developed and validated by SKUAST. Singh stressed to increase production of agriculture, poultry, meat, eggs and fish in the state thereby making Jammu and Kashmir self sufficient in food production. He encouraged scientists and technocrats to develop remunerative technologies for hilly and plain areas in JK. The minister appreciated the role of university for educating farmers

Jammu and went around each and every sections of the integrated farming system model developed by the institute.

and development of integrated farming system model to increase profitability of farmers and stressed upon the need to work for the poor farmers of the state, keeping in view their economic status and nutritional needs. Singh felt that farmers should adopt integrated farming system to increase per hectare net income to Rs 3 lakh compared to rice wheat cultivation that fetches a maximum of net profit of Rs 70,000 per hectare under irrigated conditions. Later, he visited the experimental farm established in the premises of SKUAST

Agro & Food Processing October 2017

Vice Chancellor of SKUAST Jammu briefed the deputy chief minister about various components of the integrated farming system model. He informed that the model is established in year 2011 and initially designed for 1.5 hectare was later reduced to only 1 hectare as majority of the small farmers fall under this category. This model initially started with a capital of Rs 3.50 lakh for infrastructure development like animal, shed, poultry unit and fish pond, which upon earning the profit added more components. IFS model at present comprises of crop unit, horticulture include fruit, vegetable and flower, animal unit, fish cum poultry, vermin compost, recycling of farm waste, mushroom unit, apiary unit, biogas, boundary plantation, etc.

NEWS

Pulses farmers income fell 16% in 2016-17: study

n a latest report titled Pulses & Rhythms: Analyzing volatility and cyclicality and the cobweb phenomenon in prices has reported that the profit margin of pulses farmers fell 16 per cent on average in 2016-17 due to record production. The report even added that if gram is excluded, margins have fallen by 30 per cent. While the selling price of pulses fell, the cost of cultivation continued to rise. "Cost of cultivation increased 3.7 per cent year-on-year in agriculture year (July to June) 2016-17, compared with 2.8 per cent in the previous year and hence increase in MSPs did little to stem the fall in their earnings", said the report. Fall in farmers' income is due to a record production of 22.95 million tonnes of pulses 2016-17, up 40 per cent over the previous year and 19 per cent higher than the previous record of 19 million tonnes in 2013-14. Addressing the pulses issue is very vital as they account for 5 per cent of the total household spending on food in India and during the past 12 years, pulses have seen an average inflation of 12 per cent. Though pulses take up a large chunk of households' food budget and are a major constituent in the inflation basket, the government has not been able to manage the cyclicality well so far. Between October 2016 and February 2017, modal prices of arhar and moong

were trading below MSP in major APMC mandis of Karnataka, Maharashtra and Telangana. During the past few months, the government fixed an import quota for tur, arhar or moong for AY 2017-18. However, the measure has come too late and has not helped farmers. Government sowing data as on September 1 shows area under pulses sowing has decreased from 14.30 million hectares to 13.76 million hectares. This drop seems to indicate that farmers were not inclined to grow more pulses. However, there is still some optimism as the fall in sowing is not sharp. India's pulses consumption has also grown with falling prices, as the commodity is largely price elastic. India's average import of pulses used to be 4 million tonnes and domestic production around 18 million tonnes. However, in 2016-17, with nearly 23 million tonnes and over 6 million tonnes of imports, India has built a huge surplus in the system. Despite creation of around 2 million tonnes of buffer stock in the year, the surplus is still high. The report notes, "In gram's case, the cobweb phenomenon appears to be more prominent for international prices than domestic prices. Since there is no restriction on the export of gram, profitability remained higher for gram farmers as the international market was ready to absorb the supply in excess of the domestic demand."

According to Pravin Dongre, Chairman, India pulses & Grains Association (IPGA) Pulses selling below MSP will also get support if exports are opened up. Such policies may also attract substantial FDI in this sector as India is the largest market for pulses It will give a much-needed boost to the dal processing industry and returns to the farmers will certainly improve." The large non-resident Indian population is paying huge premiums to procure processed pulses or dal in international market. Indian traders of premium pulses can gain substantially if exports are opened up. It has recommended a four-pronged action plan to overcome the problem face by pulse industry. 1. Raise procurement under the MSP scheme for pulses 2. Flexibility in export policy, in terms of permitting exports of the restricted pulses in times of excess production 3. Since 82 per cent of the area under pulses is irrigated, the government can invest more in expanding waterconservation techniques such as drip and ferti-irrigation to reduce the farmers' dependence on monsoon, and 4. Improve physical and market infrastructure by increasing storage and strengthening futures and forward markets.

To ensure global market for farmersâ&#x20AC;&#x2122; commerce ministry to promote agri exports

ew Commerce Minister Suresh Prabhu has outlined his priority by indulging on promoting agri exports and will ensure global market for farmers.

aims to double farmers' income by 2022. Crop diversification; focus on allied sectors and food processing and tapping global markets are among the steps the government is taking to meet the target.

The Minister pledged that he will see to the point that the farmers have all the right to access global markets and get better prices. He also added that his ministry will work on developing global supply chain for the agriculture sector. The Narendra Modi-led government

In 2016-17, export of agri products, such as cereals, processed fruit and vegetables, processed foods, and animal products, was around USD 16.27 billion, according to the data by APEDA. The commerce ministry, Prabhu said,

Agro & Food Processing October 2017

though there are many challenges like climate change and water shortage but still will make sure that "we will achieve this goal to ensure that India's agri sector will also be able to feed hundreds of others". He added that their agenda is going to be very aggressive and hence will like to make sure that Indian farmers get their due by getting better price from global markets.

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Contact��or��talls��artnersgi�� Indian Ice Cream Congress & Expo

Firoz H. Naqvi : +91-9867992299 Seema Shaikh : +91-7021555160 121, 1st Floor, Rassaz Multiplex, Mira Road (E), Thane - 401107. India. Tel: +91-22-28555069 / 28115068.Email: info@indianicecreamcongress.in Web: www.indianicecreamcongress.in

INDIAN ICE CREAM MANUFACTURERS ASSOCIATION Sudhir Shah-+91-9849025027 (Secretary IICMA) Samrat A. Upadhyay- +91-76988 69800 (Secretary General – IICMA) Regd. Ofce : A/801, 8th Floor, “Time Square” Building,C. G. Road, Nr. Lal Bunglow Char Rasta, Navrangpura, Ahmedabad - 380 009, Email: info@iicma.in Web: www.iicma.in

RNI No. MAHENG/2005/15987 POSTAL No. THW/50/2017-2019