Beverages & Food Processing Times June 2017

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GST puzzles Indian

Vol. 10, Issue 01, June 2017,

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food processing industry

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ST is the most striving tax reform in the country and will include most of the indirect taxes. Goods and Services Tax (GST) scheduled to be implemented on 1st of July, has placed the entire food industry in a state of perplexity. Industry has expressed disappointment over several food items placed from zero to 28 per cent slab rates. Indian government is making a strategic mistake by mandating lower rates for basic fresh foods, exempting products such as fresh tomatoes, apples, bananas, and mango, while charging higher rates for processed foods.

High GST on several processed agro-food items will be a serious detriment for the growth

of the industry as food processing is an agrobased industry that makes its purchases in cash and directly from the farmers. Tax structure for processed food is not very encouraging as fruit and vegetables juices under GST taxed at 12 pc up from current 5 per cent; fruit jams, jellies, marmalades, fruit and vegetable purees, etc, is fixed at an even higher 18 pc from 5 per cent. This is surprising as it will discourage the development of food processing industry, especially for perishable fruits and vegetables. Biscuit industry players were surprised that bread has been exempted from GST and biscuits have come under 18 per cent tax slab.

Even the Indian Beverage Association (IBA) is disappointed over aerated beverages being placed in 28 per cent bracket along with a cess of 12 per cent under the GST rates. Increase in tax will further limit growth of the beverage industry and players like PepsiCo, Coca Cola and Red Bull said this increase will have a negative ripple effect and hurt the entire ecosystem of farmers, retailers, distributors, and bottlers in India.

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Vol. 10, Issue 01 - June - 2017

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Vol. 10, Issue 01 - June - 2017

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Vol. 10, Issue 01 - June - 2017

FOOD PROCESSING NEWS

At Save Food Congress, Kaul Food sector seeks investment in set for quantum jump: food processing sector of India Food Processing Minister

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nion Minister Harsimrat Kaur Badal said the food sector is set for a quantum jump in the country with the Union Cabinet allocating Rs 6,000 crore for restructuring Scheme for Agro-Marine Processing and Development of Agro-Processing clusters (SAMPADA). The food processing minister said that the huge and much-needed investment in the food sector would leverage an investment of Rs 31,400 crore.

Badal said, “It will also result in handling of 3.34 crore metric tonnes of agro-produce valued at more than one lakh crore and benefit 20 lakh farmers. It will also generate 5.30 lakh direct and indirect jobs in the country by 2019-20.” Rs 6,000 crore investment for the period 2016-20 was coterminous with the 14th Finance Commission cycle. SAMPADA would supplement agriculture, modernise processing and decrease agri-waste. "It will go a long way in doubling income of farmers and creating much-needed jobs in rural areas," she added.

She said, the implementation of SAMPADA would result in creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet."It will not only provide a big boost to the growth of food processing sector but will also help in reducing wastage of agricultural produce and enhance the export of processed foods.”

During 2015-16, the sector constituted as much as 9.1 and 8.6 per cent of gross value added (GVA) in the manufacturing and agriculture sectors respectively. Various measures taken by the NDA government led to seven per cent growth in the food processing sector, she said. This growth had been made possible by according approval to 42 mega food parks and 236 integrated cold chains for creation of modern infrastructure for food processing along the value chain from farm to market. Besides this, 100 per cent FDI in trading, including e-commerce, had been allowed with respect to food products manufactured in India.

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he joint secretary and financial adviser in the Indian Ministry of Food Processing Industries, Gargi Kaul attended the third edition of Save Food Congress 2017 held on 4 May 2017 as part of Interpack in Dusseldorf. She spoke about the low levels of food processing in the country provide big opportunities. India is the second largest producer of fish in the world as it recorded 10.07 MT production in 2015-16.

However, the processing of marine products was low at 25 per cent.

Regarding the meat and poultry sector, Kaul said even though India is one of the top producers in meat and poultry segment, the processing is limited to 21% and 6% respectively. There are benefits of investing in India’s food processing sector. “We are the fastest growing economy in the world and fourth largest in terms of purchasing power parity. There are 1.32 billion consumers with increasing demand for branded food. Plus, easy access to world class ports, logistics and supply chain infrastructure.”

About the government policies and incentives for the sector, she said “in terms of policies, there’s 100% FDI through automatic route in food processing. Also, 100% FDI is allowed under government approved route for trading, and ecommerce for food products manufactured in India. Going further ahead, we have harmonised the domestic food safety standards with the international standards thus providing supportive regulatory framework.” 42 mega food parks are being set up in the country with an investment of USD 750 mn of which eight mega food parks are already operational. “These food parks work on hub and spoke model. In addition to this, there are 236 integrated cold chain projects being set up of which 100 are already completed,” Kaul added.

India pitches for FDI in food processing industry

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high-powered team of Indian officials led by Jagdish Prasad Meena, Special Secretary in the Ministry of Food Processing on two-day trip to Midwest from Chicago held meetings with high-level officials from several Chicagoland food services, logistics and restaurant companies.

Pitching for foreign direct investment in the food processing sector, India has asked the US companies to take advantage of its liberalized foreign investment rules, readymade infrastructure and improving business environment.

Given its size and location in the Midwest, Chicago has been the hub of the US food and food processing industry and is home to many of the world's leading food and agriculture companies.

During the trip, Meena had scheduled to meet with Potbelly, headquartered in downtown Chicago, and Mondelez, which has a bakery in the Chicago Lawn neighborhood. Meetings were also scheduled with Sensient, Griffith Foods, and Ingredion among others.

The first-of-its-kind visit of US officials comes as the Narendra Modi government has significantly liberalized FDI regulations, and has allowed 100 per cent FDI in manufacturing of food products and 100 per cent FDI in trading including ecommerce in food products manufactured and produced in India.

India has undertaken several national and statelevel programmes to improve the nation's standing in the World Bank's annual Ease of Doing Business Index.

India's food processing industry is experiencing significant growth and boasts existing infrastructure in new Mega Food Parks around the country as well as state-of-the-art Cold Chain facilities, it said.

From November 3 to 5, New Delhi will host the World Food India 2017, a first-of-its-kind megascale event showcasing the large agricultural or horticultural produce base of India and its huge young population, providing a ready market providing immense investment opportunities for the entire food processing and food retail sector.

Leading US companies are invited to learn about India's proactive policies and profitable opportunities available across the entire food processing and food retail value chain.

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Vol. 10, Issue 01 - June - 2017

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Policy to ensure zero wastage IBA expressed disappointment with GST rates on aerated beverages of food products: Badal

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nion Food Processing Minister Harsimrat Kaur Badal said she has major plans for the sector in Narendra Modi government. She is working to establish a national food processing policy with a proper national food grid authority to enable seamless movement of food products from surplus to deficit areas and ensure zero wastage.

Badal has managed to bring up the previously neglected department to a pivotal one.

While she is trying for a further relaxation in rules for retailers and e-commerce companies interested in making use of the 100 per cent FDI in food retail business by allowing them to also sell FMCG products made in India, the food processing minister is working to change the entire gamut of the food economy to evolve a win-win situation for all— farmers, retailers and consumers.

Regarding the recently approved SAMPADA (Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters) scheme aimed at supplementing agriculture, modernising processing and decreasing agriwaste, Harsimrat outlined her plans for India’s very own international festival—World Food India fair this November.

It is an initiative which is close to her heart. “Its

soul will be business but with softer elements.

Apart from the business part there will be a lively food street where participants—states and foreign countries can showcase their cuisine. The aim is to also help countries which are interested in bringing their food to India,� she said about the event that will see participation from everyone who is involved with the food sector.

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ndian Beverage Association (IBA) is disappointed over aerated beverages being placed in 28 per cent bracket along with a cess of 12 per cent under the GST rates, saying it would hurt growth of the industry. IBA has members like PepsiCo, Coca Cola and Red Bull said this increase will have a negative ripple effect and hurt the entire ecosystem of farmers, retailers, distributors, and bottlers in India.

“Fresh is not necessarily the healthiest way.... especially with chemicals, colouring and everything. It is also about the time it takes for plucked fruits and vegetables to reach consumers.

In many countries, it takes just about eight hours to package fruits/vegetables with most nutrients intact. Here it takes anywhere between three to four days before they are consumed by when all nutrients are lost. Zero wastage from production to consumption and seamless transfer is the aim,�

Badal said.

Meanwhile to get MNCs interested in foreign direct investment (FDI) in the food retail business, the minister has written to the Prime Minister to allow foreign retailers and e-commerce companies to sell consumer products made in India. The PM and the Cabinet will take a call on it and a decision is expected before the World Food India in November, she informed.

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The association said in a statement, “The IBA is extremely disappointed with sweetened aerated water and flavoured water being placed in the highest tax slab rate of 28 per cent combined with

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an additional cess of 12 per cent.� It said that the move to impose such high rates ran contrary to the purpose of the GST regime, which is to bring about a taxation system that takes India’s growth story forward, makes products more affordable for consumers. “This increase in tax will further limit the growth of the beverage industry,� IBA said.

It further said the effective tax rate of 40 per cent on aerated drinks is also against the stated policy of maintaining parity with the existing weighted average tax which is significantly below 40 per cent. IBA said imposition of cess on non-aerated flavoured water and nutrition drinks is not in line with the stated intentions of levying cess only on aerated drinks.

The association expressed hopes that the government would reconsider the rates while also seeking a lower rate for nonsugar sweetened drinks, nutrition beverages and aerated beverages that contains fruit juice. Pepsico and Coca Cola declined to comment.

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Vol. 10, Issue 01 - June - 2017

FOOD PROCESSING NEWS

Food industry in ‘state of revolution’

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he global food industry is in a state of revolution, making it more challenging than ever before for retailers and manufacturers to stay one step ahead of shoppers’ changing needs.

This is a revolution in what products are sold, how they are sold and made, how shoppers choose and what society expects from a business and it is driven by technology, social and cultural change and the economy, all marching together. Shoppers and technology are moving so rapidly, many companies struggle to be one step ahead.

Yet this rapid pace of change also signals huge opportunities for industry. In future, shoppers will have a huge choice in what, where and how food can be bought. People will be more spontaneous but also better planned, experimental, eager for new products and experiences.

From a retailer perspective, the action centres on three big battles: food-to-go versus cook at home, online versus physical shopping and big versus small stores.

Big stores globally would be more inspirational and less clinical, featuring more fresh food and

new products, with more ways to taste, learn and discover, adding that retailers will be working extra hard to differentiate themselves.

The future will be radically different and shoppers will be in their element, with great choice, convenience and value. Retailers and manufacturers will be severely tested, but the best will really thrive. Right across the world, retailers know this is a time to be bold, and therefore manufacturers and suppliers need to be bold too.

The global food industry needs to be bolder, to take bigger but well-calculated risks and learn how to be more agile as managing through calm times is okay, but what’s really energising is delivering results during turbulence. There’s never been a greater time of opportunity.

ttar Pradesh government will bring a new industrial policy to boost investment in the state. This was announced by UP Chief Minister Yogi Adityanath at the first roadshow for the World Food India, which is a global food processing event organised by the Centre in first week of November this year. The Union Ministry of Food Processing Industries (MoFPI) is organising a global event ‘World Food India 2017’ from November 3-5, 2017 in the national capital.

food processing industry in UP will help enhance the income of farmers, he added.

Sadhvi Niranjan Jyoti, the minister of state for food processing, invited the UP government to be a key partner state for the World Food India event. “Uttar Pradesh offers immense potential for the food processing sector to flourish with easy availability of raw produce, untapped human resource and low production cost, making it an attractive destination,” she added.

“We are proud to host the inaugural roadshow of this key initiative in Uttar Pradesh and are committed towards supporting the main event World Food India 2017,” Adityanath said, adding the event will highlight investment opportunities in India's food processing sector. “We are keen to develop 4 Mega Food Parks in UP. The government of UP is coming out with a new industrial policy with a provision of single window clearance to facilitate investments,” Adityanath was quoted as saying by a CII statement. The development of

UP's Deputy Chief Minister Keshav Prasad Maurya said the state has full of opportunities in the food processing sector. He invited investors to set up projects in the state and assured all necessary support.

Union Food Processing Secretary Avinash Kumar Srivastava said World Food India will provide a platform for domestic and global players to explore the partnership and expand their business in the country.

16 food processing units to start in north Andhra Pradesh

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ndustries minister N Amarnath Reddy said that the government was determined to provide job opportunities to all the unemployed youth in a big way. It was thinking seriously of establishing one ‘MSME (Micro-Small & Medium Enterprises) Park’ in each constituency of the state soon. Besides, food processing units would be established in a big way to help the farmers. As part of his district tour, the minister visited the Atchutapuram Special Economic Zone (SEZ), Brandix India Apparel City (BIAC), Laurus Labs and APIIC one-stop service centre for industries.

He visited various sections of the BIAC and interacted with the officials and workers.

He queried about the wages and other facilities provided by the company and ordered the Brondix officials to take immediate action to solve the workers’ problems. The minister also participated

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ith a desire to promote start-ups in the food processing sector, CSIRCentral Food Technological Research Institute (CFTRI), Mysuru, will be launching entrepreneurship training programmes in association with the Kautilya Entrepreneurship and Management Institute, Bengaluru.

To help manufacturers and suppliers to prepare for the different future building around them, DenneyFinch outlined five key principles including the need to keep a steely focus on the changing needs of shoppers, pay more attention to technology, find common causes with retail customers, do the ordinary and extraordinary consistently well, and ensure you work with quality people.

UP govt. shall introduce new industrial policy to boost investment

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Central Food Technological Research Institute shall promote start-ups in food processing sector

in an interactive meeting organized by the CII. There he said, the government was giving priority to the industrialisation which provides job opportunities. There are still 59 MoUs worth Rs 93,000 crore related to the North Andhra region which were signed in the last two partner summits.

A total of 16 food processing units will be started on trial basis in the north Andhra region. To help the ferro-alloy units, the government released Rs 272 crore last year and another Rs 290 crore this year. To re-open the sugar factories in Chittoor district and at Tummapala in Visakhapatnam district, a ministerial team will take a decision soon, Reddy said. He also directed the officials to plan for the de-notification of 2,236 acres of the first phase allotted vacant/sick units land along with 1,280 acres of second phase lands as soon as possible.

Breakfast foods, ready-to-eat foods, natural beverages, superfoods, healthy snacks, minimally processed vegetables, food processing machineries, FSSAI regulations, among others will be the key focus areas during the programme titled “Entrepreneurial Opportunities in Food and Allied Sectors”, scheduled to be held from June 5 to 16. While the first week of the programme will be held on the CFTRI premises in Mysuru, the latter part of the programme will be organised at Jain University campus in Bengaluru. The programme has been designed to address both the technologies and entrepreneurship areas for enabling successful ventures in food processing.

The entrepreneurship part of the programme will

dwell on developing opportunities, customer value proposition, marketing, financing, and branding.

CFTRI, a premier food research laboratory under the Ministry of Science and Technology, Government of India has already been offering 5-day short-term training programmes throughout the year. The short-term training programmes focus on various aspects of food processing and technologies.

Director of CFTRI, Ram Rajasekharan said the upcoming programme titled “Entrepreneurial Opportunities in Food and Allied Sectors” is in line with the Startup India and Skill India missions of the Government of India and can cater to the needs of various stakeholders such as entrepreneurs, exporters, food parks, MSME, among others.

This collaboration of the technology leader with management experts will strengthen the entrepreneurial ecosystem in the sunrise sector contributing 14 per cent of the manufacturing GDP of the country. The programme is open for aspiring entrepreneurs and early stage entrepreneurs, focusing on opportunities in the food sector. More details of the programme are available on the CFTRI’s website: www.cftri.com

Badal asks CM to grant approvals for Punjab food park

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nion Food Processing Minister Harsimrat Kaur Badal asked Punjab Chief Minister Amarinder Singh to instruct authorities to grant necessary approvals to the Kapurthala mega food park. The food park is to come up in Kapurthala district for promoting maize processing to help farmers diversify from the wheat-paddy cycle.

In a letter to the chief minister, Badal said ‘delays’ in grant of approvals by the various state departments had delayed start of the project which was to be completed within 30 months of being approved by her ministry. The project was approved by the central ministry in November. She said in case concerned authorities did not expedite the necessary clearances the food ministry would be constrained to initiate action for cancellation of the project.

Badal said Sukhjit Mega Food Park at RehanaJattan village in Kapurthala was proposed to be set up with an investment of Rs 105 crore. The project included a maize processing anchor unit and was likely to attract other such units also. “This will act as an impetus to farmers to grow maize on a large scale in the district and will help them to diversify besides improving the water table in the area.” She said due to sustained efforts of the food processing ministry, the central ground water authority had granted

Beverages & Food Processing Times

exemption to food parks/agro-based industries, including the mega food park, from application of notifications regarding ground water extraction.

Union minister said during a recent review of the progress of implementation of the mega good park project, it was informed that the unit was held up for want of grant of statutory clearances by the concerned state authorities.

This included consent to establish by the Punjab Pollution Control Board (PPCB) and Punjab Bureau of Investment Promotion. Exemption by Punjab Apartment and Property Regulation Act, 1995 (PAPRA) as well as approval of lay out and zoning plan by the chief town planner, Punjab Urban Development Authority (PUDA) is also pending, she added.

Stating that mega parks were infrastructure projects which were capital intensive and had far reaching socio- economic impact in and around the area of their location, Badal said all efforts should be made to not lose such a prestigious project.

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Vol. 10, Issue 01 - June - 2017

NEWS

Ultimate corrosion resistance: A4 stainless steel

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hen it comes to corrosion resistance, stainless steel is the first choice.

Therefore Elesa+Ganter has for many years offered standard parts in A2 grade and most recently also in the even more resistant A4 stainless steel grade.

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he much-awaited Goods & Service Tax (GST) rates have been fixed. Several commodities have been placed under 18 per cent slab.

Food sector, Pharmaceutical and medical sector, Shipbuilding, and offshore constructions are the beneficiaries.

Enhanced corrosion resistance has become an ever more important requirement in many different industries – with stainless steel gaining in importance because the material not only safeguards hygiene standards, but also ensures a long service life, low or no maintenance and therefore makes for safe investments.

The Elesa+Ganter range of products has always featured many standard elements made of nonrusting steel. But stainless steel is not necessary the same as stainless steel: today’s material compendiums list around 120 grades with different alloy proportions. While Elesa+Ganter has so far focused on the use of A2 grade, one of the market leaders in standard parts now offers selected products in the even more corrosion-resistant A4 variant specially intended for use in chloride-rich environment, for instance within reach of the sea.

These include the matt shot-blasted handwheels GN 227.4, DIN 39 ball grips, drop-forged DIN 580 eyebolts and eye nuts DIN 582. The hinges GN 237, GN 128.2 and GN 129.2 are now available in A4 stainless steel, and so are cabinet „U“handles (GN 425), star knobs (GN 5334.4), three-star handles (GN 5345.4), and one and two-armed clamp nuts (GN 99.6 and GN 99.8) as well as slotted and split set collars (GN 706.2 and GN 707.2).

Higher GST for cashew may hit its domestic consumption

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GST hits the industry; Ice cream placed at 18% & frozen meat, namkeen at 12 %

It is mainly the chrome, nickel and molybdenum constituents which lend the A4 austenite steel its high resistance against chloride and acids. All this makes Elesa-Ganter‘s A4 standard parts the ideal choice not only for use in shipbuilding or in the offshore industry, but also for the food sector, for pharmaceutical and medical applications or for swimming pool construction with its chlorinated water or water rich in minerals. A wide field, in other words. One reason Elesa+Ganter will gradually enlarge and expand its offer of standard parts in A4 stainless steel.

The GST Council, the apex decision-making body for the new tax, has fixed the tax framework under the Goods and Services Tax (GST) which is to be rolled out this July 1. GST will surely have an impact on the country and the consumers as well.

Following are the list of products that are placed in four distinct categories pertaining to the food industry: Nil rate slab: The zero-rate slab includes items like fresh meat, fish chicken, eggs, milk, butter milk, curd, natural honey, fresh fruits and vegetables, flour, besan, bread.

5 per cent slab: The list of items that fall in five per cent slab are fish fillet, cream, skimmed milk powder, branded

paneer, frozen vegetables, coffee, tea, spices, pizza bread, rusk, sago.

12 per cent slab: Twelve per cent slab attracts Frozen meat products, butter, cheese, ghee, dry fruits in packaged form, fruit juices, namkeen.

18 per cent slab: 18 per cent slab has the following items listed flavoured refined sugar, pasta, cornflakes, pastries and cakes, preserved vegetables, jams, sauces, soups, ice cream, instant food mixes, mineral water.

28 per cent slab: And lastly twenty-eight per cent which is the highest tax under GST have these products which includes chewing gum, molasses, chocolate not containing cocoa, waffles and wafers coated with chocolate, pan masala, aerated water.

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he GST for cashew nut has been raised to 12 per cent from 5 per cent. For roasted cashew nuts, it is still higher at 18 per

cent.

Exports of local nuts is becoming increasingly economically unviable due to the inflated cost of imported raw nuts and added to it the implementation of a higher GST for cashew may hit its domestic consumption especially at a time when the processing companies are looking to boost local sales with.

Cashew unfortunately has been clubbed along with other tree nuts like almonds, pistachio etc., which are imported mostly.

India at the moment is the largest cashew consuming country with annual sales of 3 lakh tonnes that is growing annually at 5 per cent. In comparison, the exports are around 1 lakh tonnes.

Moreover, the price ranging from Rs 800 to 1000 per kg in the local market is higher than the export price.

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The Cashew Export Promotion Council of India has requested the Commerce Ministry as well as the GST council to maintain it at 5 per cent considering that it is a traditional industry employing around 10 lakh workers, the majority of them women, across the country. The cashew industry has a social commitment and over 60 per cent of the raw cashew for processing are imported into the country.

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Vol. 10, Issue 01 - June - 2017

BEVERAGES NEWS

PepsiCo targets the millennial generation with cinnamon-flavored soda

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epsi has been releasing limited edition sodas for years, and dozens have been introduced around the world to appeal to local tastes. U.S. consumers are particularly fond of cinnamon in beverages — from alcoholic drinks like mulled wine and cider to hot drinks like lattes and chai tea. It also has retro, artisanal appeal, according to flavor company Virginia Dare, which last year predicted a rise in the use of comforting flavors, including cinnamon.

Pepsi is launching its latest limitededition soda, a cinnamon-flavored cola called Pepsi Fire. The taste is reportedly borrowed from a soda that had been available in Thailand, Mexico, Singapore, the Philippines, Vietnam and other countries.

The soda is available for an eight-week period from May 22 to July 16. A limited-edition Pepsi Fire Slurpee drink also will be available at 7-Eleven stores until June-end.

As soda sales decline, PepsiCo has been trialing a range of strategies to attract new consumers,

including launching a line of fountain craft sodas and virtual reality-based content for Mountain Dew in 2015.

The company has also shifted much of its focus to better-for-you products in recent years, but with 15 per cent of its profits still coming from soft drinks, it has good reason to innovate in ways that appeal to its loyal customer base, while trying to attract younger demographics.

It will be interesting to see if this kind of marketing will become more popular with legacy brands, some of which are losing market share to smaller, trendier upstart brands that perform well with millennials.

Consumers' reaction to the cinnamon-flavored soda will also be telling. As soda sales struggle, many major manufacturers have begun to mimic the unique flavor profiles seen in the craft soda space to lure young people to their products, but only time will tell if this grows long-term interest and loyalty.

Yakult Danone India launched health drink in Goa

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robiotic health drink maker Yakult Danone India Pvt Ltd announced their expansion in Goa with launch of its popular milk product ‘Yakult’. In 2008, Yakult was launched in India and operates in Delhi NCR, Mumbai, Pune, Ahmedabad, Bangalore, Hyderabad, Kolkata, Lucknow, Jaipur, Chandigarh, and Punjab.

Managing Director, Yakult Danone India Pvt Ltd, Minoru Shimada said “we are happy to launch Yakult in Goa after receiving positive response from other major markets in India. In Japan, Yakult is a household name and people of all ages drink it as a part of their daily diet. Indian consumers are increasingly becoming conscious in the realm of health and fitness and opting for products that provide a health benefit. Our year to date sales in India has also seen a steady double digit growth.”

“It is an undisputed fact that consumers are struggling with lifestyle disorders due to erratic and sedentary lifestyle, poor nutrition, and lack

of adequate sleep. Therefore, there is an urgent need for finding solutions to counter this growing threat,” he added.

Launched in 1935, the company sells more than 35 million bottles every day in 38 countries and regions. Shimada said the company has roped in Bollywood star Shilpa Shetty Kundra as the brand ambassador to spread the concept of probiotic food for healthy living among the masses.

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As part of the initiative, the company has appointed Asim Parekh as Vice President Fruit Circular Economy INSWABU with immediate

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epsiCo India has decided to revive its citrus project in Punjab, after a gap of more than a decade. A PepsiCo delegation, led by its Chairman and CEO India Shiv Shivakumar and Vice President Global Procurement V D Sharma, met state Chief Minister Captain Amarinder Singh to discuss major expansion and investment plans in the state, an official spokesman said. The delegation showed interest in collaborating with the state government to revive the horticulture projects initiated during Captain Amarinder’s previous tenure, besides exploring the possibility of sourcing citrus fruits for their juices and concentrates from the state.

PepsiCo has also shown interest in investing Rs 500 crore through a partner to set up a juice concentrate and soft drink production plant in Pathankot, he said. The company, already has Asia’s largest potato minituber lab in Zahura in Hoshiarpur district and a state-of-the-art bulk storage in the state, has offered technical support to the Congress government to develop Punjab as a premium citrus fruit producing state to help the CM realise his vision of farm diversification to steer farmers from paddy cultivation to the cashrich citrus fruits.

In a presentation, James H Keithly, a horticulture specialist from the US who was also part of the PepsiCo delegation, unveiled a 5-year plan to produce high-yielding quality processing varieties of citrus plants at Jalowal nursery in Hoshiarpur district. The nursery was started during Captain

Amarinder’s previous term in the government but had been allowed to fall by the wayside by the previous Shiromani Akali Dal (SAD) government.

Keithly apprised the chief minister that 1,125 acres of area would be covered under the citrus plantation across the state.

During 2017, 55 acres shall be brought under plantation of Kinnow, Daisy and W Murcott.170 acres would be brought under Carrizo, JattiKhatti and Carrizo rootstock liners in 2018. Likewise, 300 acres of area would be brought under Carrizo, JattiKhatti and Volk liners during every year in 2019, 2020 and 2021 to expand the ambit of citrus cultivation to tap the land potential in the state and propagate cultivation of various varieties of fruits for sourcing of quality juicing. The CM while reiterating his government’s commitment to farm diversification to improve the state’s beleaguered farming community, immediately directed Additional Chief Secretary, Horticulture, Himmat Singh to work out the modalities for the citrus project in collaboration with PepsiCo. The chief minister urged the delegation to explore opportunities for the farmers of south Punjab to be a part of the project while directing the Horticulture department to give liberal subsidies for schemes like drip irrigation. He also asked the department to prepare a comprehensive action plan to adequately enhance the capacities of the two existing Punjab Agro juicing plants at Abohar and Hoshiarpur to meet the juicing demands of PepisCo.

Coca-Cola’s Ludhiana bottler unit to have 100 KW Solar powerplant

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Coca-Cola to raise fruit sourcing for juice, aerated drinks in India everages major Coca-Cola India is looking to enhance sourcing of fruits in India for its beverages under juice and aerated drinks categories. Presently the company procures about 2 lakh metric tonnes of fruits and now plans to increase it further as part of its ‘fruit circular economy’ initiative. The circular economy initiative is aimed at creating a virtuous economic cycle to positively impact Indian agriculture, Coca-Cola said in a statement. “We visualise that this initiative will create a spurt in our local procurement of fruit and farm level interventions to have a positive impact on the Indian horticulture ecosystem.”

PepsiCo India to revive Punjab citrus project

uthorized franchise bottler of Coca-Cola, Ludhiana Beverages Private Limited announced the commissioning of a 100 KW solar power plant. The plant with an annual power generation capability of 1,32,000 KW can reduce the carbon footprint by over 2 per cent.

This is a step towards environmental protection and sustainable manufacturing. Coca-Cola System and their bottling partners are working towards the objective to reduce the carbon footprint by 25 per cent by 2020 in its entire value chain of manufacturing, packaging, distribution, and sourcing. Ludhiana Beverages Pvt. Ltd. started operations under the name of Ludhiana Bottling Company in year 1967 and was bottling the products of Parle such as Gold Spot, Citra, Limca, Thums-Up, Maaza. In 1994, it became the first franchisee of Coca-Cola in Punjab.

Coca-Cola India & South West Asia, Director and Head CSR & sustainability, Shubha Sekhar said “at Coca-Cola India are working to reduce the greenhouse gas emissions across our entire value

chain by making comprehensive changes in our manufacturing processes. By using best-in-class technology and upgradation of infrastructure we have been able to reduce our Energy Use Ratio (EUR) - amount of energy used for producing a litre of beverage, by 18 per cent between 2012 and 2015. Commissioning of solar power plant at Ludhiana Beverages is a testament to our commitment of growing our business in India without increasing greenhouse gas emission.”

Managing Director, Ludhiana Beverages Private Limited, Kailash Kumar Goenka said “India has an immense potential for power generation from renewable energy sources, particularly solar. We wanted to leverage this at our manufacturing location and make it as energy self-reliant as possible. It is of a great satisfaction to us to add a new alternative energy platform at our manufacturing plant which will help us to further drive sustainable manufacturing. Through this initiative, we aim to reduce our CO2 emissions by 105.6 Ton.”

PepsiCo to bring out zero-sugar cola - Pepsi Black effect. INSWABU refers to India and South West Asia region. He was the vice president (strategy and planning), and will hold the position of the vice president (fruit circular economy) for CocaCola’s India and South West Asia business unit. In this role, Parekh will be driving the critical task of connecting the end-to-end value chain from farmer to grocer.

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epsiCo is in the process of rolling out Pepsi Black, a zero-sugar cola in cans, to counter Coke Zero, reflecting the shifting consumer preference towards less sugary drinks in India.

This is about consciously increasing the company’s play within the low-calorie segment. Pepsi is significantly accelerating its journey in ‘portfolio

Beverages & Food Processing Times

with purpose’ space and offering consumers multiple choices of beverages."

The company has already done a test run of Pepsi Black with Subway. Prakash said PepsiCo would introduce one product every quarter. Pepsi Black will come packaged only in cans as of now.

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Vol. 10, Issue 01 - June - 2017

EDIBLE OIL NEWS

GEAC gives clearance for commercial cultivation of genetically modified mustard

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he clearance given by Genetic Engineering Appraisal Committee (GEAC) for commercial cultivation of genetically modified mustard seeds has been welcomed by India's edible oil industry.

The Extractors Association (SEA) of India said, "India is producing about 7 million tonnes of mustard seeds and is working hard for achieving a target of 15 million tonnes of mustard seed production by 2025, with a sub target of 10 million tonnes by 2020, thereby doubling the income of the farmers to accomplish the vision of Prime Minister of India. And cultivation of GM mustard crop which can raise productivity by 20 to 30 per cent.”

In light of GEAC clearance for cultivation, India is one step away from commercial production of its first GM food crop and, hopefully, with all scientific evidence before it, the Supreme Court will lift the stay and pave way for commercial cultivation.

SEA said the decision will go a long way in increasing production and productivity of mustard seeds in India.

Marico enters premium edible oils category with the launch of Saffola Aura

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ith growing need for healthy options among the health conscious consumers and the lack of a clear market leader, Marico has launched Saffola Aura - a new sub brand under its marquee brand Saffola. This marks the entry of Marico in the Rs 600+ crore super premium edible oils category.

Saffola Aura – a unique new blend of 80 per cent Olive Oil and 20 per cent Flaxseed Oil, driving product differentiation by blending another oil to make olive oil even better. Saffola Aura is available in two variants – extra virgin for salads and dips, and refined for everyday cooking.

Olive oil does not contain Omega 3, a well-known heart-healthy ingredient. Saffola Aura is different from any other olive oil since it combines the benefits of Omega 3 from Flaxseed Oil along with the antioxidants of Olive Oil in one single oil. Hence, making it better than consuming only olive oil. It brings the familiarity of a trusted brand to the super premium oils category and offers additional health benefits through the addition of Omega 3-rich Flaxseed Oil to Olive Oil. There is a growing trend among Indian consumers who are looking to lead a healthier lifestyle proactively, which has led to a surge in the usage of olive oil because of the health benefits, exotic imagery and lifestyle codes associated with it.

Beverages & Food Processing Times

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Vol. 10, Issue 01 - June - 2017

AGRO NEWS

With quality domestic crops in market, India's wheat imports slows down

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s good quality domestic crops have come to the market, India's wheat imports have slowed in recent weeks, leaving traders burdened with unsold stockpiles in port silos and is a headache for traders who shipped cargoes anticipating strong demand. Unsold wheat at Indian ports highlights the plight faced by global grains trading companies amid a global supply glut.

government data.

World grain and oilseed stocks are up 48 per cent since 2012/13, compared with production growth of 18 per cent and consumption growth of 17 per cent over the same period.

Wheat inventories at ports have climbed to a record high of about 1.8 million tonnes, mainly cargoes shipped from Australia and the Black Sea region, trade and industry sources said.

Importers shipped in close to 5 million tonnes of wheat in the 10-months to end-April, the most in a decade. But in March, the country imposed a 10 per cent import tax on the grain to curb imports at a time when Indian farmers were starting to harvest their crops.

Bumper crops have flooded many markets, dragging on prices for grains and hitting profits at agribusiness giants including Cargill, Bunge Ltd (BG.N), Archer Daniels Midland (ADM.N) and Louis Dreyfus Co. Global corn, wheat and soybean inventories have risen for four straight years in the longest stretch of increases since the late 1990s, according to US

India, however, the world's second-biggest wheat producer, has suffered a supply shortfall after two years of lower production.

For the year to June 2018, traders expect India's demand for imported wheat to slow, but it will still need to buy about 2-3 million tonnes as local supplies dwindle towards the end of the year. It will take a few years of bumper production to rebuild stocks to comfortable levels, they say.

Agri commodities export drops sharply in FY17

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he weak global prices have impacted the export of major agri commodities from India. Except for non-basmati, the volume of exports of major commodities such as basmati, wheat, pulses, and other cereals has seen a substantial decline in 2016-17 compared to 2015-16. Basmati export fell by 4.90 per cent and basmati’s share in exports is about 20 per cent.

As per provisional data, in volume terms, basmati shipments were estimated at 40 lakh tonne against 40.46 lakh tonne in the previous year.

Sources in Agricultural and Processed Food Products Export Development Authority (APEDA) say, the lower price of basmati in export market and reduced offtake from Iran has not only resulted in lower realisation but also affected the volume.

Officials said since Iran had imposed a minimum export price of $850 per tonne, many exporters were not keen to ship at that price, which resulted in decline in volume. Likewise, other commodities

have been affected by weak global prices. Though exports in value and volume terms have fallen, the domestic prices of major agri commodities such as wheat and maize have remained higher than international market. This has also restricted the prospects of Indian commodity exports in the international market.

Investment Information and Credit Rating Agency (ICRA) expects increase in basmati exports in 2017-18. Supported by higher paddy prices and resumption of import by Iran, the basmati industry is looking ahead for attractive growth in 2017-18, aided by export volume growth. Assistant VicePresident of ICRA, Deepak Jotwani said “in fiscal 2017-18, the value of exports is expected to grow to Rs 22,000-22,500 crore, with export volumes growing to around 40.90 lakh tonne supported by an increase in average realisation. Resumption of import by Iran will be keenly watched by the industry as it has the potential to provide an impetus to exports.”

India needs to triple investment in agricultural research Evergreen revolution in Indian agriculture sector has began

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nion minister Venkaiah Naidu said the Centre and the state government are working towards doubling the farmers’ income by 2022, and focusing on four I’s i.e. irrigation, infrastructure, interest rates and insurance. The Union Urban Development, Housing & Urban Poverty Alleviation Minister said an evergreen revolution has started in the country under the able leadership of Prime Minister Narendra Modi and in Rajasthan under the leadership of Chief Minister Vasundhara Raje. Naidu along with Chief Minister Raje inaugurated GRAM- 2017 at RAC ground in Kota.

The organisation of divisional level Global Rajasthan Agritech Meet (GRAM-2017) in Kota is a step forward in this direction. Naidu said the country is making progress in every sector but there are more efforts needed in the agriculture sector. The minister further added that imparting latest technological knowledge, development of advanced markets, agro-processing facilities and development of basic infrastructure are necessary for farmers.

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instruments, crop cycles, agro processing methods and other innovations in agriculture sector, the Union minister said.

Naidu had all praise for Mukhyamantri Jal Swavlamban Abhiyan (MJSA). He said MJSA started in Rajasthan can be an example for other states. While addressing the gathering at GRAM2017, Raje called upon farmers to adopt organic farming and said crops produced using organic farming fetch higher prices and are also good for health.

She asked farmers to keep some part of their land separate for organic farming. To promote organic farming around 1150 clusters are being prepared. The Chief Minister said if any farmer is willing to set up agro-processing unit with the investment of Rs 40 lakh, the government will provide subsidy of up to Rs 20 lakh. It is the time when farmers get involved in agroprocessing and agroindustries to increase their income.

“We need to develop villages and cities simultaneously if we want to develop the nation.

Keeping this in view Smart City and Adarsh Gram schemes have been launched by the Centre.”

Crop loan of worth Rs 15,000 crore has been distributed in the state has benefited around 25 lakh farmers. Farmers are being given crop loan through co- operative banks at the interest rate of 7.1 per cent. Crop insurance portal, crop cutting experiment app and Girdavari app have been developed to provide facility to farmers, she said.

45 lakh soil health cards have been distributed to farmers in the last three years and it will reach around 70 lakh till the month of July. She appealed to the people of the state to plant five saplings on special occasions like birthday, marriage, and anniversary etc to make the state green.

Praising the Global Rajasthan Agritech Meet organised in Jaipur in November 2016, he said it was a unique event of its kind and was instrumental in extending benefits to thousands of farmers in the state. The GRAM-2017 of Kota will also help farmers to learn about new techniques,

State Agriculture Minister Prabhu Lal Saini and Ambassador of Malaysia in India Shri Hidayat Bin Abdul Hamid also addressed the gathering.

Principal Secretary, Agriculture, Neelkamla Darbari divulged the details about the GRAM2017 in the beginning.

ndia needs to triple the investment in agricultural research if it wants to reach to anywhere close to what China has achieved on the farm front, the head of an international food policy institute said. Director General of the Washington DC-based International Food Policy Research Institute (IFPRI), Shenggen Fan said “India’s investment in agricultural research is still very low. China spends three to four times more than India. India should invest more on research if it wants to catch up.” It is seen that for every dollar spend in agricultural research, there is a return of 10 dollars, he spoke on the sidelines of a two-day conference on achieving the Sustainable Development Goals (SDGs) through agriculture in India.

Regarding India’s efforts to double farmers’ income by 2022, the IFPRI Chief said, “this is not possible if we focus just on rice, wheat or maize. It should encourage farmers to grow more vegetables and fruits and diversify into areas like dairy farming for additional income generation.

Agriculture is key to meeting half of the 17 SDG targets set for 2030, which includes eliminating poverty and hunger and reducing inequalities.”

More than 300 million people in South Asia live in poverty, with up to 71 per cent of them living in India. Improving the country’s agricultural sector presents an opportunity to address both urban and rural development needs. IFPRI released

its 2017 Global Food Policy Research Report, which focused on food security and nutrition in an urbanising world. It highlights how cities are reshaping food systems across the world and new challenges are emerging from such a rapid urbanisation.

Rapid urbanisation is another major challenge to food and nutritional security in India. “The rate of malnutrition in Indian cities is outpacing urbanisation itself,” he said. Besides, India is among those countries where both malnutrition and overnutrition co-exist equally. Studies have shown that between 2008 and 2014, the number of obese and overweight people in India doubled to 22 per cent of the population. Ironically, the number of people living below the poverty line is also close to 20 per cent.

Fan also noted that to accomplish the SDGs, it is imperative that policymakers support transformations in the food system, and some of the greatest changes to India’s food system are coming from rapid urbanisation. Access to technology is already beginning to change the landscape of agriculture. Take cell phones for example. More than half of farmers who provide food to Delhi use cell phones to directly negotiate prices for crops.

Leveraging the power of technology can help connect farmers to markets, optimise agricultural output, and improve livelihoods.”

Patanjali to wipe out MNCs from Indian market in 5 years

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oga guru Ramdev said that Patanjali Ayurveda will steal the march over multinational firms manufacturing consumer products. Compared them to the East India Company that had entered the country with a purpose to ‘loot’, he aims to make India free from the MNCs. The MNCs were not working for the country’s development, rather their sole objective was to ‘loot’ India. “Patanjali agle panch varshon mein in videshi kampaniyon ko moksh de degi (Patanjali will finish the MNCs up from the Indian market in next five years),” he said.

Ramdev also hailed the Uttar Pradesh government under Yogi Adityanath for establishing a good connect with the public. The FMCG major is now eyeing to double its share in India’s overall food processing market by upto 20 per cent in the current fiscal. The company also plans to invest

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around Rs 500 cr for its expansion in different FMCG verticals and is looking to put more funds towards opening new units and ramping up capacity of the existing units.

MD Acharaya Balkrishna said, “The food processing industry is worth around Rs 85,000 crore and Patanjali has a share of around 10 per cent. We would like to double our contribution to 20 per cent this fiscal. In the coming years, we would try to maximum Patanjali’s contribution in the food processing industry.” The food processing industry would not only provide fair price to farmers but also help in providing quality food products in India, Balkrishna informed.

Patanjali has already surpassed the Rs 10,000 crore sales mark in the last fiscal and intends to go global.

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Vol. 10, Issue 01 - June - 2017

Beverages & Food Processing Times

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Vol. 10, Issue 01 - June - 2017

FOOD SAFETY NEWS

FSSAI to frame definition of junk food

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he Food Safety and Standards Authority of India (FSSAI) will soon frame a definition of junk food and will also implement new regulations relating to labelling of packaged food products and incorporate the expert panel's suggestions for reducing consumption of fat, sugar, and salt.

FSSAI CEO Pawan Kumar Agarwal said, “We are bringing change in labelling regulations.

We are making a substantial change”.

FSSAI would, for the time being, incorporate the panel's suggestions related to labelling of food products. An expert panel set up by FSSAI has recommended additional tax on highly processed food items and sugar-laced beverages as well as a ban on advertising of junk foods on children channels or during kids shows on TV. It has suggested that information’s like total calories, amount of carbohydrates, sugar, fat,

protein, sodium, dietary fibre, amount of trans-fat added in food should be mandatory for labelling in food products.

Government plans to make it mandatory for food business operators to have at least one trained food supervisors. The FSSAI is also launching food safety training and certificate programmes through both offline and online system.

It is looking for partners so that trainings could be provided across the country.

The food regulator is proud with its plan as with the scale this is a massive exercise in raising the food safety standards in the country. The FSSAI is focusing on increasing awareness about the consumer grievance redressal mechanism adopted by food businesses.

It is also taking initiative to provide safe, nutritious, and wholesome foods to citizens at home, schools, offices, public places, and place of worship.

Govt. permitted 5 % Vegetable fats in chocolates

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ood Safety and Standards Authority of India (FSSAI) has allowed the use of vegetable fats in chocolates according to Solvent Extractors Association. The association had been pursuing the authorities for over two decades to treat vegetable fats as coco butter equivalents for the purpose of making chocolates, arguing that it will boost local collection of tree borne oilseeds and support the livelihood of tribal.

FSSAI has allowed the addition of vegetable fats like sal, kokum, mango kernel, palm oil, mahua oil dhupa, phulwara, dharambe, etc, to a maximum 5% of the finished product.

These oils and fats are made from forest produce of India and will allow its use in the manufacture of chocolates in India, thus promoting ‘Make in India’.” Vegetable fats, which have physical

properties similar to coco butter and are widely used by chocolate makers in Europe, were not permitted for chocolate manufacturing in India till now.

Oilseeds from trees are forest produce and the government encourages its collection from the forest by tribal and the ministry of tribal welfare at the Centre is encouraging this activity by tribal by setting up collection centres and some states have even notified the minimum support price for the TBO to be paid by the industry to the tribal.

Until now, the fats from TBO were exported for use in the manufacture of chocolates. But now, the opening of its use in the manufacture of chocolates in India will give a boost to the production of vegetable oils and fats manufactured from tree borne oilseeds.

HC to Centre: Respond to petition on poor food on trains and other cooking units run by the railways.

The petitioner’s counsel K C Mittal, while submitting that 23 million people travelled by train in the country daily, focused on the sale and supply of adulterated food in the Indian Railways.

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he Delhi High Court asked the Centre to respond to a petition seeking hygienic and quality food at railway kitchens, eateries, and trains. A bench of Acting Chief Justice Gital Mittal and Justice Anu Malhotra issued a notice to the Railway Ministry, asking it to ensure that Food Safety and Standards Act regulations were met. It said the quality of food served on trains and at railway platforms had to be monitored.

The court heard a PIL filed by Sardar Jagjit Singh, a retired food inspector with the Railways, who said urgent measures were required to guarantee safe food in restaurants, food plazas, staff canteens

The lawyer had earlier submitted to the court a CD containing a news report from a television channel on the subject. “The worst is the insensitivity and the failure on the part of the respondents to take adequate steps to ensure sale and supply of unadulterated, wholesome and hygienic food to 23 million passengers who travel everyday by train (24X7) in various parts of the country,” it said.

The petition said food quality should be monitored on passenger and goods trains, pantry cars, other food outlets in railway areas operated by private contractors, Indian Railway Catering and Tourism Corporation Ltd (IRCTC) and food plazas, including unauthorised vendors and canteens run by the railways.

Popular artificial color additives-Tartrazine and Allura Red 4C found to be safe

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hree recent studies have restated the safety of the artificial colors Allura Red AC and Tartrazine, finding no health concerns at current levels of consumption and use.

The European Food Safety Authority (EFSA) had asked researchers to follow up on a 2002 study in mice that was not conducted according to OECD guidelines, which suggested several food additives may cause DNA damage in the gut. These latest studies, conducted by scientists at the International Association of Color Manufacturers that followed the guidelines — mimicked the conditions and quantities of the original study and found no such damage.

The European Food Safety Authority makes periodic requests to reassess the safety of food additives to ensure evidence is up to date and to guarantee that current consumption patterns and industrial use is considered. This recent research is a part of ongoing safety checks on additives the organization has already deemed safe — in agreement with the U.S. Food and Drug Administration and JECFA, the Joint FAO/WHO Expert Committee on Food Additives Apart from Tartrazine and Allura Red 4C, the researchers also found no safety issues with Ponceau 4R, which is used in Europe but is not permitted for use in the United States.

included in this latest safety assessment, two are not used in the United States, although they are permitted for use in the EU. The other, Sunset Yellow, is labeled as FD&C Yellow 6 when used in foods. No toxicity has been found for the amounts at which it is used. In fact, the European Food Safety Authority has even increased the acceptable daily intake for the coloring.

Whatever the studies say, the food and beverage industry has already made great strides in reformulating with natural colors, particularly in products consumed by children. The market has been growing at about 10 to 15 per cent per year.

Despite a large body of research confirming the safety of artificial colorings, consumers still want their food to be as natural as possible. When the Southampton study came out, many consumers were appalled to discover that manufacturers were using artificial colors even when natural alternatives were available to them.

Given the choice, most consumers will choose natural products over artificial, although if the difference is not highlighted, many will still gravitate toward more boldly colored items — something manufacturers should keep in mind.

More food manufacturers are removing artificial colors and flavors from their products.

The three food colors were included in the Southampton Six study, which linked six artificial food colors and a preservative, sodium benzoate, to hyperactivity in children in 2007. It sent shockwaves through the industry, and gave the natural colors industry a major boost. However, EFSA and other international experts found the study to be deeply flawed. EFSA found no reason to revise its opinion on the safety of the colors.

A 2014 study by Nielsen revealed more than 60 percent of U.S. consumers cited a lack of artificial colors and flavors as a crucial factor when making food purchases at the store. General Mills has removed artificial flavors and colors from some of its cereals and Campbell Soup has committed to remove artificial colors and flavors from its North American products by the end of 2018. Many more food manufacturers have announced similar efforts.

Still, European lawmakers took a precautionary approach and mandated a warning label. The FDA did not take a similar action despite pressure from the Center for Science in the Public Interest to ban the colors, or to at least add warning labels.

Of the three other Southampton Six colorings not

In a separate study, researchers also assessed how much of these ingredients manufacturers are currently using in products, and then estimated intakes among U.S. consumers. They found consumption for all groups of the population was at levels considered to be safe.

FSSAI and GFSP in collaboration for food safety in South Asia

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ood regulator FSSAI said has joined hands with the Global Food Safety Partnership (GFSP) to develop actions for raising investments to support food safety system in South Asia. The Food Safety and Standards Authority of India (FSSAI) and GFSP held a highlevel discussion in the national capital on food safety. The GFSP is an innovative, public-private initiative dedicated to supporting and promoting global cooperation for food safety capacity building.

FSSAI said in a statement, “as a part of this dialogue, nearly 100 participants came forward to indicate their intention to act in various areas including funding and investment, knowledge sharing, public/ private collaboration, and capacity building to manage and support the region s food safety systems.” GFSP's CEO Lystra N Antoine said that a collaborative approach would contribute to enhance global food security.

FSSAI Chairperson Ashish Bahuguna said the regulator wants to enhance its global outreach with a view to learn from experiences of other

Beverages & Food Processing Times

countries in food safety and build global trust in India s food sector. “We strongly believe in cocreating a sustainable architecture for building strong food safety systems across Asia. We believe that globally there is a need for more informed and cohesive arrangement on capacity building and knowledge sharing on food safety and nutrition.”

This calls for support from public and private organisations, partners and other international bodies, Bahuguna added.

FSSAI's CEO Pawan Agarwal said that it has made a substantial progress in terms of food safety capacity building efforts through launch of FosTaC portal that necessitates to have one trained and certified food safety supervisor in Indian food businesses.

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Vol. 10, Issue 01 - June - 2017

FOOD SAFETY NEWS

Corporate entities and academic institutions to work with FSSAI for FoSTaC program

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hief Executive Officer of FSSAI, Pawan Agarwal said the Food Safety and Standards Authority of India (FSSAI) is in the process to come up with new food labelling regulations related to packaged food products, based on the recommendations made by the expert group.

The regulator will also define 'junk food' before imposing further taxes on packaged food products with high fat, salt, and sugar content. “We are making substantial changes in labelling.”

An expert panel set up by FSSAI has recommended additional tax on highly processed food items and sugar-laced beverages as well as a ban on advertising of junk foods on children channels

Food regulator proposes blueprint for food smart cities

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egulator FSSAI has proposed widening the ambit of smart cities by incorporating food management system into it to ensure safe and nutritious food consumed by citizens.

The Food Safety and Standards Authority of India (FSSAI) and Urban Development Ministry on May 2 organised a workshop on Food Smart Cities to discuss its framework and methodology for rollout.

happen.”

or during kids shows on TV. Agarwal said that FSSAI is also looking to bring in regulation that will require every food business operator to have at least one trained and qualified food safety supervisor at its premise. He added, "Going forward we will amend the regulations where over a period every food business operator will require having one trained and qualified food handler at their disposal.”

Agarwal also said, “Obviously, there will be a time lag. We will give a couple of years’ time before the requirement that all food businesses should have one person who is trained and certified in food safety. And before we start amending our regulations we had already created an ecosystem where such large-scale training can begin to

FSSAI will collaborate with corporate entities and academic institutions for Food Safety Training and Certification (FoSTaC) program, where the regulator will be launching 19 short-term courses to train food handlers. They hope that the trained staff will in turn educate people working alongside him thus taking the food hygiene and safety standards in the country several notches up. The regulator also launched an interactive portal to educate consumers and help them with grievance redressal.

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Stating that rapid urbanisation has raised concerns about food quality, FSSAI said "One of the ways to address this is to integrate sustainable food safety and nutrition systems within the smart city design and create Food Smart Cities". FSSAI has proposed a four-pillar approach that cities could undertake at the local level to ensure safety and hygiene across the supply chain. The workshop concluded with a decision that a framework for food smart cities would be further refined and circulated to cities around the country, aspiring to be Food Smart Cities.

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French Beans

(An ISO 9001:2008 & ISO 22000:2005 Certified Company)

Senior representatives from Smart Cities including Ludhiana, Ajmer, Jaipur, Gurgaon, and Bhubaneswar participated in the meeting. FSSAI CEO Pawan Agarwal said that food has been largely ignored in city planning, despite it being the central piece around which life revolves.

“There is now an excellent opportunity to integrate food systems management into the smart city guidelines.” The Food Smart Cities would have end-to-end solutions for food systems in urban areas.

www.agronfoodprocessing.com

Shelled Corn

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Vol. 10, Issue 01 - June - 2017

HI-TECH

Quality assurance

India�s Only Monthly Newspaper for Food, Beverage & Allied Sectors

F www.agronfoodprocessing.com

Vol. 10, Issue 01, June 2017,

20/-

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ith an assurance be categorized in 12 per cent tax range, the entire agro-food processing industry is in a bit of shock and confusion….as they are held in from zero to 28 per cent categories. Well would I be wrong to say that happy days are here for the unorganised sector and small players? As an average price conscious Indian would be skewed towards cheaper products rather than a packaged food product with double the rate.

In fact as far as I can analyse the entire industry is confused and has no clue what to do? And I wonder why the government does not realise that a high GST on several processed food items will be a serious detriment for the growth of the industry as food processing is an agro-based industry which makes its purchases in cash and directly from the farmers. Thus if the food processing industry is pushed to the corner, it would adversely impact the farmers.

Let us take the instance of pickles, in India 26 states tax pickles at the rate of 5 per cent. Karnataka imposes none, while Rajasthan and Kerala impose VAT on pickles at a higher rate. Add 2 per cent Excise to it and 0.2 per cent Octroi on a weighted average basis. That totals to 7.2 per cent tax on pickles at present, which the GST Council intends to raise to a whopping 18 per cent.

Also the market is so brutally competitive and price sensitive that the industry operates with a trivial 2 per cent margin. If the proposed GST rate was implemented, the industry, unable to bear the burden, will be compelled to increase the prices of pickle in the range of 10-14 per cent.

Another big blow of GST has been slapped on the Indian biscuit industry, and the whole sector is baffled. Placing biscuits below Rs 100 a kg in the 18% GST slab might push price-sensitive consumers towards unbranded products and also will raise the chances of a price increase in the glucose category. The organised biscuit market in India is pegged at Rs 26,000 crore yearly and the unorganised one at Rs 13,000 crore. A GST of 18% could increase the size of the unorganised market by at least Rs 500 crore.

The Indian government’s decision to ban buffalo slaughtering has brought about upheavals in the Nation. Is the Govt realizing that how much this decision will adversely affect the local meat and leather industries, with accumulative exports of $10 billion?

Apart from that, millions of skilled and unskilled workers across the two industries are going to be jobless with just one regulation.

Even the prices of chicken and goat and sheep meat have also jumped in the domestic markets due to a sharp increase in their demand following shifting of consumers from buffalo meat to chicken and goat / sheep meat. To compensate lower supply, Indian exporters are seeking $50-75 a tonne higher from overseas buyers for spot booking.

Coca Cola was the only giant beverage company globally who had never diversified its portfolio till now. But changing trends and time has made this 130-year-old company to speed up the development of products beyond sodas, as consumers move away from fizzy drinks. India is not different either; it posted negative volume sales for at least four of the past nine quarters as consumers cut down on discretionary products.

Coca-Cola now plans to introduce frozen desserts in India as the beverages giant looks to expand its portfolio beyond carbonated drinks into fruit-based or other healthier choices. Hope Coca cola’s value will be enhanced by an upmarket shift in urban demand reinforced by rising consumer health-consciousness and an increasing emphasis on convenience.

Seems like food companies are in the disposition of diversification, well why? While Parle Products is foraying into pulses category, ITC is entering the frozen sea food market as well as gearing up to compete with grocery segment with fruit and veggies.

In a first instance of a global company buying a controlling stake in an Indian bread and bakery, Mexico’s largest food and bakery company Grupo Bimbo is buying a controlling stake in India’s bread and bakery products maker Harvest Gold. The Mexican group wants to expand its base in Asia, and as India offers a huge opportunity, the group has decided to grow inorganically here.

In the end I would like to acknowledge the farmers of India, who slog and slave to feed us. The farmer’s agitation in Maharashtra and Madhya Pradesh is a true example of how our producers are neglected. My sincere appeal to my “ Kisan Bhai” is to agitate but without violence or without wasting food materials or products, as this would lead to negative impact on their protest, and instead of reviewing their requirement the government would indulge in peace making.

The time has come to appreciate our farmers along our Jawan….

“Jai Jawan and Jai Kisan” #Jai Hind#

ood value equation in consumers’ mind is slowly changing from taste, price, and convenience to health, wellness, safety, social impact, and experience. Hygiene and right food items influences the consumer behaviour and they are increasingly looking for information such as food safety standards, and complete & accurate labelling, traceability of the food products they buy. In India, the ever-expanding consumer base is always concerned about food quality and safety.

Food industry including growers, processors, retailers, distributors, foodservice operators have become aware about their products and offerings.

Most consumers receive their food from retail and foodservice establishments, a significant share of the responsibility for providing safe food to the consumer rests with them. Close collaboration among the regulatory authorities, retail operators and foodservice establishments can make a significant impact on food safety aspects. At the Food Safety Conclave at India Food Forum 2017 attended by several top officials from the Central Government and Industry explored various aspects of food safety – the rapidly evolving scenario in the food industry, food quality and standards, best practices, and challenges and opportunities related to food safety.

Quality Assurance (QA) is defined as systematic actions taken to provide adequate confidence that a product, service, or result will satisfy given requirements for quality and fit for use.

When manufacturers can satisfy their clients with best-quality products, it means they have fulfilled all the criteria of QA. Quality assurance functions include establishing and management of company’s quality organisations, design operating procedures, discuss the quality direction with top management and so on to give clients the best results.

Dr. N Bhaskar, Advisor – Quality Assurance at FSSAI echoed the role of Government and support of regulators to ensure that safe food is provided to consumers. “Regulators have made a beginning with a multi-pronged strategy. What consumers want from the regulators and stakeholders is the 3Rs – Responsive, Responsible and Regulator.

We, as regulators, have similar expectations from the stakeholders to be responsive and be responsible retailers because these 3Rs are shared responsibilities.” Regarding the several initiatives taken by FSSAI, Bhaskar adds that, “we are also educating young minds on the hygiene and safety aspects of food through inclusion of awareness material in textbooks. FSSAI as a regulator has taken the responsibility of upgrading the notified laboratories and state food laboratories in terms of manpower training and equipment they require, and showing greater sensitivity to and acting on newer threats to food safety. As appellate authority, we are building testing laboratories in private space.”

Factors considered There are several factors that are considered to ensure that the product is of best quality and consumers are satisfied with what they receive.

Packaging also plays a vital role to ensure that products reach consumers in a safe condition.

Quality packaging keeps the food safe and contains all mandatory information – from ingredients, product formulation as well as any allergen risks – pre-printed on the label.

CEO of Equinox Labs, Ashish Satish Bhadri said “the quality of a product is dependent on numerous considerations. It would be otherwise wrong to not include most, if not all, elements in this.

The foundation of safety depends on the quality of raw materials used in the preparation. Selecting

Beverages & Food Processing Times

the best batch of ingredients saves a lot of energy and time into segregation of the manufactured lot in terms of quality. This in turn determines durability of product, which is the second point I want to draw attention towards. Sustainability of the product in changing atmosphere, environment (both internal, external and during transit) and hands is of utmost importance, since that is the kind of environment every product must undergo.

Those allotted for import-export should sustain more changes. At these junctures, the kind of preparation and ingredients incorporated into a product proves as a game changer.”

Another aspect of durability can be shelf life. A smaller aspect of the former and it signifies life of the product. This shelf life helps determine whether the product can be sent across a certain distance, whether it can handle the long-term transport, conditions that product needs while transportation or storage, duration of the product on the market shelves and more. Product reliability should be true to its word and claim. Local, National, or International transit of the product should cause no damage to quality and to nutrients contained.

The product should be reliable to be safe as and when manufactured/packed to provide best health for consumers.

To help a product sustain the ordeals it will, packaging must be full proof. This will avoid cross-contamination, preserve the freshness, and keeps the quality of product intact. Having said so, one must be careful about the kind of packaging material used. A recent article over packaging of junk food revealed that the raw material used in preparing the packing material was deemed carcinogenic by a team of renowned scientists.

Hence, utmost care must be taken to maintain a balance between the packaging efficiency and the use of good packing materials.

Bhadri also said that, “while making a food product purchase, we tend to pick up those which are not damaged or with good appearance. Either we smell the product, observe expiry date / best before date, observe the product through packaging for any cracks, pest infestation, curdling, etc. In short, we allow our senses to make a judgment of the product we might buy. This is called Sensory Evaluation of the product.” Many might not be aware of the fact, that sensory evaluation of a product is fast catching attention. Any FBO might be keen to know the kind of response his/ her product might receive after its launch in the market. To get a better understanding of mass perception, the product goes through a series of tests, conducted by highly trained panel. This also helps in bringing about innovation and improvisations in the product, should there be any changes that are needed to be inculcated.

Partner at Sweet Karachimart, Vijay Athwani said the factors that must be considered to ensure that the product is of excellent quality are firstly, raw materials - best quality and well picked raw materials are chosen. Secondly, it is the processing methods and temperatures that are maintained and lastly overall hygiene and sanitation.

Procedures followed Quality assurance procedures requires an objective review to assess quality of the product and to identify areas where improvements could be made. While one can take elaborate measures to make sure product that enters the market is safe and hygienic, enormous amount of effort is required during and post the launch.

Manufacturing of the product involves using the Good Hygiene / Manufacturing Practices (GHP/ GMP) which ensures that the product is safe for consumer deliverance.

There are procedures Bhadri divides into 5 types to ensure a FBO stays updated with the quality of the product even in the market. a) Plan - Once the

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Vol. 10, Issue 01 - June - 2017

HI- TECH

– an integral aspect of the food and beverage industry

product is launched, ensure that a good amount of consumer feedback is obtained. Exhibitions and workshops are effective ways of sampling your product pre-launch. The feedback obtained can provide great insights whether the product needs any modifications or innovations. b) Do - Once the feedback is obtained, prepare a product that is the need of market. Often, initial preparation might extend for months or even take a year. This period can help you develop a product that is largely accepted by the masses. c) Check - Keep a close check on the products manufactured from time to time. This check should be coordinated with regular feedbacks received from consumers regarding any changes they would like to incorporate in the product. This will help sustain the product and help FBO with assurance of the product’s quality. d) Act - In case you come across any discrepancies in the product quality, make sure you act on it immediately. Product recall can not only be tedious, but can also come along with some serious implications that can harm your company’s equity, not to forget the monetary penalties for adherence to non-compliance. Secondly, if you have a documented proof of the wellness of your product, make sure you market it. People look out for healthier and safer options. In this manner, your product will have a high chance standing out. e) Analyse - Not just quality, constantly analyze your product in terms of cost, taste, packaging, and other attributes which are mentioned earlier. This will give you a clear picture on your position in the market amidst your competitors.

Athwani states the procedures followed for quality assurance of the product are i) cleaning and sorting of raw materials ii) usage of best quality raw materials iii) maintaining material at required temperatures so that they do not lose their original state and quality is maintained iv) sanitising the equipment used for production.

Technological equipment used to meet food safety & norms Technological innovations in traceability have enabled quick and accurate identification of contamination, pesticide residue and other toxins and causes of food-borne illnesses. Traceability ensures monitored farming, an effective food supply chain, operational excellence, and transparency. This helps cut down inspection time and many challenges in exports, food safety, quality control and certification.

Bhadri articulates that technological equipment differs for each product. Milk and dairy products use quick freezing and pasteurization equipment, that is of no use for pickle manufacturers. They might use nitrogen gas sterilizers for elimination of harmful microbes. Similarly, beverage industries might use heating and chemical based methods or cold pressed methods for assuring the quality of the product. “As a testing lab, it is our sole responsibility to estimate how efficient these procedures have been in ensuring the quality of the product, and whether the procedures/ingredients used fall under the accepted category.” Athwani lists a few technological equipment used to gain products that meet safety and quality norms

are 1) pasteuriser 2) homogeniser 3) multiple effect evaporator 4) single effect evaporator 5) freeze dryer Analytical testing methods adopted at production Quality Assurance programme is built around three fundamental functions: Quality Control, Quality Evaluation, Quality Audit.

Food processors must adhere to good sanitation practices that include design and layout of the premises, provision of adequate facilities, and programmes for cleaning and sanitation (pest control), as mentioned in FSSAI rule book. Additional QA programmes such as Hazard Analysis and Critical Control Point (HACCP), audits of several areas of manufacturing, sanitation and product in market are the responsibilities of QA department. These programmes enable application and verification of control measures intended to assure the quality and safety of food.

Bhadri explains that, “our analytical testing procedures depend upon the standards specified by the ISO. Our testing laboratory is accredited with the NABL and ISO 9001:2015 Certified, ensuring that our testing and validated reports are accepted worldwide. These are the basic necessities for any testing laboratory for ensuring quality and safety of the product tested and that the report generated is authentic.

Athwani states the different analytical testing methods adopted at production stage and they are as follows a) Total Fat content: Gravimetric solvent extraction methods usually used for estimating the total fat. b) Adulteration of milk fat: Traditional chemical tests available to confirm authenticity of milk fat based on content of water soluble and insoluble fatty acids such as gas chomotography, infrared analysis. c) Microbiological quality: Pasteurisation at maintained temperatures 72-77 degree Celsius.

Promoting policies for cost-effective food quality control systems Food Safety and Standards Authority of India (FSSAI) has released benchmarks to fortify the nutritional quality of food items used in social sector programmes like ICDS, PDS and midday meals, such as rice, wheat flour, milk, edible oil, and salt. Food fortification helps to combat malnutrition through staple food items. FSSAI standards would ensure that essential nutrients are appropriately added to foods for preventing or reducing the risk of, or correcting, a demonstrated

deficiency of one or more essential nutrients in

population or a specific population group. The regulator has asked the manufacturers and packers of fortified food to give an undertaking on quality assurance, and submit evidence on steps taken regarding fortification.

There are numerous policies in place that are both cost-effective as well as help to improve quality standards of the product. In-house quality

document the noncompliance issues c) Implement CAPA (Corrective and Preventive Action) for the non-compliance found d) Monitor the process through internal or third party (consultancy) audits at regular intervals. Athwani claimed that all precautions are taken right from the processing of raw materials, if there are any faults in production then the batch is discarded. “Since we own a retail business we usually produce small batches.”

Contaminants and how they can be eliminated A contaminant is a foreign body that when mixed with the food product, harms the person consuming the same. It can be biological, chemical, or physical in nature, it can be micro or macro molecules, that can cause minor disorders or are be fatal in nature.

control, regular training of staff, standard SOPs in place with adherence to protocols mentioned, precautions against allergens and measures to prevent cross contamination in products with no allergic products are some of the many policies that can be implemented at any unit without the hassles of cost. Bhadri said, maintenance of adept environment, implementation of hygienic practices are keynotes in all the policies. The instruments used should be in good condition with their regular, documented calibrations. Certain cooking policies include not packing/serving raw or semi-cooked food to consumers, maintaining the adequate time and duration for heating any product, mentioning the presence of any allergens clearly, etc.

Many of these policies are practiced by FBOs. However, for ensuring all the units implement these in their premises, it is of utmost need for adequate awareness and training programs for the staff members. More policies do come in the picture as and when the need for it arises. Food Safety and Standards Authority of India (FSSAI) shoulders the responsibility of the same and brings in various amendments and norms that help in the betterment of the food industry and is aimed to safeguard the health of the people.

Athwani feels that due to increasing public demand, there is a need for new policies to be implemented for the betterment of public. Need for quality policy as in increase in public concern regarding food hazards and decline in public trust in food risk regulations suggest the need for policy.

Technology and Legislation driven policies is also another important aspect here.

Quality certified First, the audit committee does a check in the premise, making sure all the mandated policies are followed.

They look for loopholes, if there are any, and draw out a list of changes that need to be made in the premise.

A set period is allotted to close these non-compliances brought to notice. Once these are closed, after a reassessment, the unit is presented with the certificate. Bhadri stated that in case of a product, its QA is determined by a NABL Accredited lab and based on its results, it is advised to make the necessary changes and resubmit the sample for complete testing. Following are 4 steps that can help a FBO with the process of rectification – a) Evaluate performed processes b) Identify and

Beverages & Food Processing Times

There are several ways of product contamination if proper care isn’t taken.

Bhadri said however, having installed counteracting measures in the premises and with guidelines known to all concerned staff, prevention of product contamination can be minimized. These are some solutions through which the contaminants can be eliminated: Personnel - Adequate Trainings of Food Safety, GHP/GMP. Infrastructure - Proper Air Filtration instruments, Good Ventilation, Pest Control in place, Good Drainage systems, etc Equipments - Regular cleaning, calibration, and maintenance of the machines.

Raw materials - Contamination free area for storage, proper handling techniques and selection of only the best raw materials for the product preparation.

Process - Maintenance of sterile environment around food preparation area, following standard procedures as stated in the SOPs As per Athwani, there are three types of contamination in this industry. a) Chemical Contamination- Contamination by chemical substances e.g. fertilizers. b) Biological Contamination- Food that is contaminated by substances produced by living creatures such as human rodents, pests, and microorganisms. c) Physical ContaminationContamination by foreign object at some stage of production process.

These contaminants can be eliminated by adopting the following measures: 1. Implementing a personal hygiene programme 2.Reminding employees to wash their hands.

3.Usage of separate equipment.

4.Cleaning and sanitizing all work surfaces.

5.Purchasing prepared food.

Conclusion At every point in food supply chain, the food safety and quality testing procedures must aid in ensuring food safety through close monitoring of compositional, microbiological and government standards. The increase in government initiatives and regulations that emphasise the importance of quality assurance in the food industry.

Food and beverage industry players pay highest regard to food quality assurance teams that uphold safe quality of foods through each stage in the entire production process.

The road ahead for quality assurance is convergence of standards and developing an information system wherein consumers can examine quality and safety of any produce with reference to its origin.

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Vol. 10, Issue 01 - June - 2017

SNACKS & NAMKEEN NEWS

Mars, Nestle and other candy giants commit to cut calories in half of products by 2022

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n today’s world consumer demand for lowsugar candy or candy sweetened with natural alternatives like stevia and monkfruit is being taken seriously. A survey found that180, 000 products were reformulated last year — double the amount in 2015.

And therefore Candy giants Mars, Nestle, Lindt, Ferrero Candy and Ferrero have all committed to making 50% of their individually wrapped products 200 calories or less by 2022, and will label calories on the front of product packaging.

Mars has already invested $200 million in R&D and manufacturing as part of the initiative, and now has 100-calorie versions of Snickers, Milky Way, Twix, Skittles and Starburst candies.

The group of companies also said they would work to educate consumers on candy's role as a treat, rather than a snack or meal replacement.

This commitment to sugar reduction was the first-ever announcement the candy industry has collectively made on health and wellness. It’s wise move for the confection segment, as Mintel's 2017 Consumer Trend report listed "backlash against sugar" at the top of its list.

Consumer distrust of sugar hasn't soured appetites for candy, however. The category is still seeing sweet sales — approximately 5,000 new candy items were introduced in 2016 — ringing up to nearly an additional $1.5 billion.

By committing to making half of their individually wrapped products 200 calories or less by 2022 and labeling calories on the front of packaging, Mars, Nestle, Lindt, Ferrera Candy, and Ferrero are showing their customers that they care about their nutrition and want to help people make healthier choices. It will be interesting to see if other major candy companies’ maker similar commitments, or if these five producers undergo additional initiatives.

Nestle, for example, has developed a way to restructure the sugar molecule so that it can use up to 40% less sugar in its products without cutting sweetness. This technology could revolutionize the candy industry if adopted by other companies, and Nestle is planning to roll out products using this faster-dissolving sugar in 2018.

Nestle aims to bring some global products to India

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Tel: +91-22-28555069, +91-8108363258, 7400396671, 7303925104 info@foodprocessing-machinery.in, www.foodprocessing-machinery.in Beverages & Food Processing Times

estle India intends to bring some products from its 2,000 global brands to the country and reduce dependency on a single brand said a top company official. The company is strengthening the milk products and nutrition portfolio along with expansion of its coffee and beverages portfolio in the domestic market. They are also looking at more offerings in the chocolate and confectionery portfolio.

Chairman and Managing Director, Nestle India, Suresh Narayanan said “We have 2,000 brands globally and we will be exploring ways to bring some of them to this market. We are also looking at reducing the dependency on a single brand by ensuring all categories contribute to the overall growth.”

Nestle wants to a part of the consumer journey through life, by enhancing the nutrition credentials of its many brands, fortifying those that are relevant and addressing in a small yet significant way the health issues facing the society. "The year 2016 will always remain a very important in our history as we bounced back to business after the Maggi noodles incident. But the trust in our brand Maggi noodles enabled us to quickly regain leadership position with 60 per cent market share” he added.

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Vol. 10, Issue 01 - June - 2017

PACKAGING NEWS

Sidel's New Steadyedge Pet Container Base Combines Creative Opportunities With Optimum Performance

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teadyEDGE™ is a unique, patented base solution which offers Food, Home and Personal Care (FHPC) producers enhanced brand differentiation options together with maximum production efficiency.

The use of PET is steadily gaining market share in FHPC markets traditionally dominated by HDPE (High Density Polyethylene) and PP (Polypropylene). In 2016, PET packages accounted for 29 billion units for Food, 7 billion units for Personal Care and 8 billion units for Home Care.

These figures are expected to grow by an average of 3 per cent for all three sectors until 2020. Within these highly competitive markets, Sidel's new steadyEDGE base offers chances to accelerate the take-up of PET containers. Along with innovative and attractive PET package design variants it ensures stable and cost-efficient production.

ring' area of the base. “In this way, the package is much more stable, preventing unwanted rocking and reducing the possibility of containers being knocked over," adds Protais. "The application of Steady EDGE to any design can enhance the package's stability by as much as 35 per cent.”

This is beneficial on the supermarket shelf and in the home, as well as improving reliability on the production line. As packages are far less likely to fall while they are being conveyed between various machines, this results in fewer costly stoppages and greatly improved uptime.

Cost-efficient and sustainable production This innovative packaging solution optimises productivity and low total cost of ownership (TCO) while product quality and reliability are maintained to a high standard. Benefits include lightweighting possibilities of up to 10 pe cent through the improved material stretch on the base. A reduction in blowing pressure decreases energy consumption by up to 20 per cent during production when limitation is linked to base design. The solution has been achieving higher output rates which are also up to 10 per cent faster from 1,800 bottles per hour per mould for flat containers with a standard base to 2,000 bottles per hour per mould with SteadyEDGE. Such greatly improved line performance typically contributes to a return on investment (ROI) in less than a single year.

Smarter blowing and quick changeover The specific sharp base design is achieved using the new Sidel patented base mould system: Base OverStroke System (BOSS). BOSS is a piston activated in the blowing phase to stroke the base.

This mechanical element allows for the raising and lowering of the base during the bottle-forming process independent of the opening and closing of the two half-shells of the mould.

Creative and distinctive package With SteadyEDGE, brands will appear exactly as intended. The new base technology is designed to meet the challenge of producing flat, oval, and rectangular containers in PET, which all require a specific production process that delivers the optimum material distribution of PET to achieve a top-quality package. “It makes it possible to achieve premium-quality containers in PET, with sharper edges which have a radius as little as only 1mm, compared to a previous minimum of 2.5mm,” explains Pierrick Protais, Packaging Innovation Leader at Sidel. These sharper edges increase design freedom and facilitate the production of more elegant containers with bases which are less curved. Also, they open particular marketing opportunities for containers with complex shapes and large labelling surfaces.

The technology also ensures maximum container quality by way of accurate processing, optionally reinforced by a monitoring system of visual control of base movement on individual blowing stations.

More stable package for optimum uptime The sharper edges possible on the package are used to effectively flatten and increase the 'standing

BOSS provides flexible and versatile production with the option to implement quick mould changeovers and ensure maximum production uptime. A BOSS-to-BOSS changeover can be performed in just 3 minutes; BOSS-to-other can be performed in 11 minutes. Easy to implement and to retrofit, Sidel's new BOSS solution is fully compatible with Sidel Universal blowing machines.

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He said in the first phase, 10 different consolidated

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t Interpack 2017, the World Packaging Organisation honoured 140 winners from across the globe with the coveted WorldStar Award. From eight entries from the Indian packaging firms that qualified for the award after winning the IndiaStar award, four bagged the WorldStar. The proud winning companies are Huhtamaki PPL, JPS Plastics, and Vardhaman Plastochem. Mumbai-based Huhtamaki PPL won two WorldStar awards for Horlicks Gold pressure-sensitive labels and Tzinga profile pouch in Beverages category while JPS Plastics’ multi-layer woven sacks for Daawat brand of rice won a WorldStar in Food category. Vardhaman Plastochem bagged a WorldStar for introducing a Titan Bucket, a bucket pack in the Indian lubricant segment for GS Caltex and other clients. ITC’s Printing and Packaging Division was awarded a merit certificate for its Alpino gift pack. The judges from all over the world, elected: Anne Emblem (UK), Dharma Ratnayake (Sri Lanka), Sergio Haberfeld (Brazil) and Soren Ostergaard (Denmark).

WPO President, Thomas Schneider said “the Lifetime Achievement in Packaging Award was

established with the aim of acknowledging and rewarding excellence in all aspects of packaging science, technology, design and application across every country around the world. The discipline of packaging is one that is truly global. The World Packaging Organisation is in a unique position to identify leading practitioners from around the world who have consistently pushed the boundaries in advancing the art, science, and application of packaging to serve the needs of an ever more demanding society. These prestigious awards will celebrate and preserve in perpetuity the collective achievements of these innovators.”

In the new Save Food category, the Gold Star Award was given to Flexomed, from Spain for the Ethylene Absorber Bag, that reduces food loss by 3-9 per cent. The process of absorbing the ethylene, delays the ripening of the fruits. At the award event, 140 winners were bestowed from a total of 291 entries from 35 countries. Japan grabbed maximum number of awards, a total of 20 trophies, followed by Germany with 18 awards.

More than 400 delegates attended the presentation.

Sugar mills want complete exemption from jute bag packaging for 2017-18

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t the moment as per government rule, 20 per cent of the sugar has to be compulsorily packed in jute bags.

Against this, the sugar mills have asked for complete exemption from packing in jute sacking bags for 2017-18.

Sugar industry bears an additional burden of Rs 350 crore if the mandatory jute packaging order is continued for 2017-18. This concern is based on the premise that on an average, the price of jute sacks is up to 2.5 times more than high-density polyethylene (HDPE) bags. A 50-kg HDPE bag costs Rs 15-16 compared to Rs 50-51 of a jute sacking bag of the same capacity.

Also the industry argues that sugar as a commodity is unsuitable for packaging in jute bags and hence, should be relieved from the compulsory Jute Packaging Materials Act (JPMA), 1987, as has been done for cement and fertilisers in the past. Also jute bags are not suitable for packing sugar due to issues like moisture contact and

contamination by jute fibres. Customers like beverages and chocolate manufacturers do not want sugar packed in jute sacks.

Indian Sugar Mills' Association (ISMA) has appealed to the textiles ministry to remove sugar from the list of mandatory jute packaging. There is a scarcity of jute bags even for packing food grains, and the ministry has admitted it. According to ISMA, production of food grains and sugar has expanded but raw jute output has not grown commensurately to match the demand. Between 2004-05 and 2015-16, food grains and sugar production has risen by 33 per cent and 98 per cent, respectively. Raw jute production in the same period has tanked by 14 per cent. But the Indian Jute Mills' Association (IJMA) denies the case for the shortage in jute bags supplies. IJMA claims that the jute industry can consume eight million bales and has sufficient capacity to cater to the requirement of food grains, sugar and the private market. It has pitched for 100 per cent packaging of food grains and sugar in jute bags.

Jute industry faces threat of partial dilution for FY17-18 It is currently in use by customers in different parts of the world, with over 200 million containers already produced, and will shortly also be available for Sidel Matrix™ blowing machines.

Haryana to have 140 consolidated pack houses he Haryana government will set up 140 consolidated pack houses across the state for packing, storage, processing and marketing of vegetable and horticultural products on commercial and industrial level. The venture will be under the Rs 510.54-crore horticultural village project. Principal Secretary, Agriculture and Farmers Welfare Department, Abhilaksh Likhi said that 20,000 farmers of the state will be associated with the scheme.

Indian firms shine at WorldStar Awards at Interpack

pack houses will be established as pilot centres to ensure successful implementation of the scheme.

Union Food Processing Industries Department and National Institute of Food Technology Entrepreneurship and Management would serve as advisers, Likhi said. The horticultural village project had been formulated for three years from fiscal year 2017-18 to 2019-20, and would be financed by the Haryana government. In the first phase in 2017-18, Rs 100.41 crore would be spent under the scheme and 30 consolidated pack houses would be established, he added.

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he jute industry is under threat for partial dilution of the mandatory jute packaging order for 201718. “a Standing Advisory Committee (SAC) meeting will be held in this regard to discuss jute packaging for the 2017-18 crop year.

Along with food ministry even Jute Commissioner’s office has favoured dilution,” sources from the jute industry said.

The Jute commissioner’s office is likely to recommend dilution in the meeting for foodgrain packaging to 80 per cent against 90 per cent now. However, it favoured retaining sugar packaging at 20 per cent. Union Food Ministry

Beverages & Food Processing Times

has recommended 75 per cent for foodgrain and freeing sugar from jute packaging order, the sources said. In simple terms, the Jute Packaging Materials (Compulsory Use in Packaging Commodities) Act 1987 mandates governments to use jute sackings for mandatory foodgrain and sugar packaging.

Currently, minimum 90 per cent of the foodgrains and 20 per cent of sugar is required to be packed in jute bags.

The jute industry representatives said this year the production is adequate for smooth supply of jute packaging materials unlike last year when there were shortages. Any dilutions will put lakhs of jobs in West Bengal at stake both in at the farm and mill levels.

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Vol. 10, Issue 01 - June - 2017

COFFEE NEWS

M S Boje Gowda appointed as Coffee Board Chairman

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third-generation planter from the country's key coffee growing region of Chikmagalur, M S Boje Gowda has been appointed as the Coffee Board Chairman. He became the first grower to assume Chairmanship of the Coffee Board after a gap of almost 70 years.

Until recently, bureaucrats used to head the Coffee Board, the apex decision making body of the

coffee sector, under the Ministry of Commerce.

Gowda has taken over as the head of the board at a time when coffee growers are dealing with unpredictable prices, fluctuating output that is largely being influenced by a changing climatic pattern due to erratic rainfall and pest issues such as white stem borer.

addressed growers and said that boosting domestic consumption while increasing output would be his priority. He said the per capita coffee consumption in India is about 200 grams, while in the western world it is estimated to be between 7-8 kg, thereby leaving a tremendous scope to boost the domestic offtake.

After taking charge of the office, Gowda

Gowda said there is a need to boost consumption

beyond the traditional states of Karnataka, Tamil Nadu, Andhra Pradesh, and Kerala. “It would be a tricky situation for the growers unless the domestic consumption expands.” He added, Prime Minister Narendra Modi has set the target of doubling the coffee output from the current 3 lakh tonnes to 6 lakh tonnes.

India consumes merely a third of the coffee produced in the country as two-third of the output is exported mainly to Europe and Russia. The main coffee growing region, Karnataka accounts for about two thirds of the country's output, has been witnessing drought for the past three years.

Gowda said he would focus to improve the water storage facilities for the growers and would take up their demand for higher subsidy for increasing the coverage of drip irrigation in the coffee sector.

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Beverages & Food Processing Times

19

Vol. 10, Issue 01 - June - 2017

SEA FOOD NEWS

ASSOCHAM study says, India's total fisheries production could reach 16 MMT by 2019

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rging the government to double the outlay of Rs 3,000 crore for development and management of fisheries sector, apex industry body ASSOCHAM said that India could achieve about 16 million metric tonnes (MMT) of inland and marine fisheries' production by 201920 thereby adopting a target oriented approach to achieve eight per cent growth year-on-year.

& Food Processing Division of The Associated Chambers of Commerce and Industry of India (ASSOCHAM). National Secretary General of ASSOCHAM, D.S. Rawat said both direct and indirect employment in entire fisheries sector in India is likely to reach 15.25 million from an estimated 14 million in 2014-15. However, most of the incremental fish production will have to come from aquaculture and 'Blue Revolution' will provide necessary impetus in this direction. Achievement of ambitious targets in increasing fish production is possible only through harnessing potential in aquaculture, he added.

Aided by government's efforts to bring systemic changes in processing sector, the domestic segment in raw and processed fisheries sector in value terms is expected to touch Rs 1.5 lakh crore by 2020 and total domestic retail market is forecast to cross Rs 61 lakh crore or almost triple in next 4-5 years, noted a ASSOCHAM study titled 'Fisheries in India: Potential & prospects; Reference state West Bengal.'

The study further noted that since India is endowed with over 8,000 kilometres (kms) long coastline, exclusive economic zone of over two million square kms of continental shelf, there is scope to increase marine catch, which has turned sluggish lately. Global fish production is likely to grow by about 1.5 per cent during 2015-2020 and reach a total of about 183 MT (million tonnes), while with value added/ downstream products the trade in this sector could cross $200 billion by 2025, this despite the sluggish growth in exports, highlighted the ASSOCHAM study.

Coupled with exports, fisheries sector in India should aim at a target of Rs two lakh crore by 2020 in value terms, added the study conducted by Agri

Marine/capture fisheries is set to hover around 93 MT and aquaculture production (89 MT) could overtake by 2021-22, it said

Vietnam seafood firms urged to invest in India

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ekong delta An Giang province in Vietnam and India have good prospects for co-operation in aquaculture and processing, a meeting between business executives from the two sides heard in Ho Chi Minh City on May 12.Smita Pant, the Indian Consul General in HCM City, said An Giang and other provinces in the Mekong Delta region possess certain advantages in farming and processing, especially of basa.

offers good opportunities for An Giang firms to export basa products. Vietnamese basa fish fillet is already available at many five-star hotels in India.

The seafood demand is quite high in India, but businesses need to offer competitive prices.

Nguyen Thanh Binh, Deputy Chairman of the An Giang People’s Committee, said his province is strong in agriculture, with rice, fish, fruits, and vegetables being the key items.

The province would send a delegation to India to study the market and boost exports of basa and invest in aquaculture.

Besides its traditional markets, the province also seeks to boost basa exports to other markets with high demand, including India, he said.

She said, Vietnamese fisheries products are exported to several markets and India is a huge market with a population of 1.2 billion. Indian Government offers incentives to foreign investors in aquaculture and seafood processing, especially in Andhra Pradesh, Odisha, and Tamil Nadu states.

She called on An Giang to send a delegation of leading seafood firms to the three states to do market research and explore investment opportunities, especially in projects to produce basa brood stock.

Managing Director of Canopus Inter-Trade Pte Ltd, Ramesh Anand said the Indian market also

Both the sides also discussed co-operation in IT, agrochemicals, vegetables and fruits, human resource training, and tourism. The province sought Indian investment in tourism, especially in developing four- and five-star accommodation, theme parks, cuisine areas, and trade and convention centres.

Binh said trade between the province and India was worth nearly 8 million USD in 2016, with the province’s exports accounting for more than 2 million USD. The numbers are modest, and there is room for much greater trade ties. Such interactions are good prospect for trade between the two sides to exchange information and explore opportunities.

Shrimp production in India crosses 4 lakh tonnes

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arnataka Fisheries Minister Pramod Madhwaraj said, India's whiteleg shrimp or vannamei output is expected to cross 4.5 lakh tonnes in 2017, seeing an over 10 per cent hike over 2015-16. “Since 2009-10, vannamei (Pacific Whiteleg Shrimp) production has shown steady increase and reached the present peak of 4.06 lakh MT (metric tonnes) during 201516, increasing the overall shrimp production to about 5 lakh MT," Madhwaraj was present at the inauguration of the fourth edition of Aqua Aquaria India (AAI) expo in Mangalore.

"This year, vannamei production is expected to reach a new peak of over 4.5 lakh MT." Two varieties of shrimp dominate Indian shrimp industry, including Litopenaeus vannamei (Pacific Whiteleg Shrimp) and Penaeus monodon (Indian Black Tiger Shrimp).

Marine Products Export Development Authority (MPEDA) Chairman A. Jayathilak said the ‘record performance’ of the seafood sector in the last few years was built on the strong platform of the aquaculture sector. "The coastal shrimp aquaculture production has surged and crossed five lakh tonnes consistently during the last couple of years."

Indian seafood exports are growing significantly in the past five years with figures of $ 5.5 billion in 2014-15. Fiscal 2015-16 was the exception with

a reduction in value realization despite increased volumes of exports as the country exported 9,45,892 MT of seafood worth $4.7 billion.

Jayathilak added that it was the first time the Aqua Aquaria India Expo was being held on the west coast of India. The first three editions were held in Chennai and Vijayawada.

Visakhapatnam MP K. Hari Babu said aquaculture was no more restricted only to coastline states. "I recently heard that Haryana is also doing shrimp farming. I hope the next expo would be organised at one of the land-locked states.”

Madhwaraj said while coastal aquaculture made major progress in the socio-economic front at the west coast, infrastructure development was quite slow compared to the east coast. "Karnataka has ample potential for aquaculture, ornamental fish culture Aand overall fisheries development.

Apart from Karnataka, other west coast states like Gujarat, Maharashtra and Goa offer excellent scope for development of coastal aquaculture activities.”

India is the second largest aquaculture producer in the world, the second largest exporter of shrimps to Europe and the largest exporter of shrimps to the US. Aquaculture contributes around 70 per cent of the total marine products export earnings of India.

Anti-dumping duty on Indian shrimps for 5 years extended by US

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nited States International Trade Commission (USITC) has voted to extend the anti-dumping orders on imports of frozen warm water shrimp for five years.

United States is the largest market for Indian exporters. This is a major setback to $4.7 billion Indian seafood exports sector. Because of the Commission's determinations, the existing antidumping duty orders on imports of the perishable product from China, Thailand, and Vietnam will also remain in place. This action is part of the sunset review process mandated by the Uruguay Round Agreements Act. The Act requires the Department of Commerce (DoC) to revoke an antidumping or countervailing duty order, or terminate a suspension agreement, after five years unless the DoC and the USITC determine that revoking the order or termination of the suspension agreement might lead to continual dumping or subsidies (commerce) and of material injury (USITC) within a reasonably foreseeable time.

An official statement of the commission stated, “USITC determined that revoking the existing anti-dumping duty orders on imports of frozen warm water shrimp from China, India, Thailand, and Vietnam would likely lead to continuation or recurrence of material injury within a reasonably foreseeable time.”

Since 2004-2005, anti-dumping duty was imposed on Indian frozen warm water shrimps. US did not revoke the duty on Indian frozen water shrimps in the first 5 year that was later extended to another five years. Chair of Falcon Marine Exports Ltd, Tara Patnaik said “USITC voted 5-0 against us.

The USITC voted to remove the orders on Brazil.

For India, the anti-dumping duty will continue for another five years. The exporters should do the business without knowing the rate of duty in advance. We have to do the business amidst uncertainty.”

Executive Director of American Shrimp Processors Association (ASPA), David Veal said “We at ASPA are grateful that the USITC affirmed evidence of the risk that dumped shrimp imports from these five nations poses to the domestic shrimp industry. We in the domestic shrimp industry look forward to five additional years of relief from unfair foreign trade practices.” ASPA has welcomed the extension of the anti-dumping orders by USITC on shrimps.

USA is the largest importer of Indian seafood with a share of 28.46 per cent in terms of USD. The total exports to USA stood at $1,334.05 million in 2015-16.

Industrialists advised to invest in mariculture to enhance fish production

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meet on mariculture has urged industrialists to invest money in this sector to enhance fish production.

J. K. Jena, Deputy Director-General of the Indian Council of Agricultural Research (ICAR), New Delhi, asked industrialists to come forward and concentrate on mariculture besides their entrepreneurial initiatives in shrimp farming.

Since the Centre is deliberate on eradicating poverty by 2030, it will promote and encourage all initiatives to increase the production in food and nutrition sectors and mariculture is one of the best alternatives for ensuring food security in the country.

Beverages & Food Processing Times

Private-public partnership is the need of the hour to boost mariculture. There is a need to emulate successful mariculture models implemented by the South-East Asian countries where mariculture has grown significantly catering to the food and economic security of those countries. The Chinese model of developing seafood-based products from plant-origin materials such as seaweeds and micro algae can complement the country's requirements on growing demand for seafood.

Apart from the traditional monotonous single species-oriented culture systems, India should go for multiple species in mariculture.

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Vol. 10, Issue 01 - June - 2017

CHOCOLATE NEWS

India imports most of its Cocoa despite increased love for chocolates in Indians

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n 2015-16, India's total consumption of cocoa beans was around 30,000 mt, 57 per cent of which was imported. In the five years to 2015-16, India's cocoa bean production grew at a compound annual growth rate of just 3.6 per cent, according to data from the Directorate of Cashewnut and Cocoa Development (DCCD).

India's per capita chocolate consumption, on the other hand, is estimated to have grown at 7.8 per

cent between 2010 and 2015, according to Mintel, a market research firm. Between 2015 and 2016, India's growth, estimated at 13 per cent, was even more impressive.

India's per capita consumption is tiny compared to the world's most chocolate-crazy nation, the UK, whose citizens consumed a staggering 8.61 kg on average in 2016. However, in India, apart from the low base, "urbanisation has helped to make

it possible to grow the market as climate control makes it easier to display and hold chocolate confectionery in the marketplace.

The size of the Indian chocolate confectionary market in 2016 was around Rs 11,260 crore, according to Euromonitor International. The top three players are all multinationals, with Mondelez India (formerly Cadbury India), maker of the popular Cadbury Dairy Milk chocolates,

controlling nearly half the market, and Nestle accounting for 13 per cent.

Despite the demand for cocoa beans far exceeding its supply in India, the govt is not helping the farmers to grow cocoa and also there is no guidance from research institutes or the government. It's all farmer-to-farmer. Also there are some challenges in growing cocoa like lack of awareness about this crop, weather factors, competition from other crops, etc., that are true to any agriculture crops.

Cocoa, a tropical crop native to parts of South and Central America, is now also grown in West Africa, where Ghana is second to the Ivory Coast in production, and Southeast Asia, where Indonesia is the largest producer. The tree starts yielding pods from its fifth year and is productive for 25-30 years. South India's geographical proximity to the Equator means it has ideal climatic conditions suitable for cocoa cultivation.

With the availability of about 3 lakh hectares of irrigated coconut, Arecanut and oil palm areas in the southern states and with only a very small area of them being tapped so far, there exists a huge opportunity for cocoa planting in India.

But if demand from the local industry and a 30 per cent import duty on cocoa products might Help the farmers and give them protection from a steep fall in prices. Thus, the government should increase the import duty as it is important to incentivize local farmers so that they get a competitive price.

There are also attempts to look beyond the south, with cocoa being introduced in Assam and Nagaland a couple of years back. But as an indemand intercrop which does not usually see the kind of price volatility witnessed in other crops, cocoa is yet to get its due in India.

Beverages & Food Processing Times

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Vol. 10, Issue 01 - June - 2017

CORPORATE NEWS

GST likely to lower food inflation by 2 per cent

India's new GST tax regime comes in for criticism - analysis

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SSOCHAM has hailed the central government's new GST regime, a move to standardize goods and services tax rates in the country, as the biggest economic achievement in the three years since Prime Minister Narendra Modi took office. However, there is some concern about the new framework's potential impact on value-added products.

Food industry executives and experts in India have called for a simplification of the country's incoming goods and services tax (GST) regime as it applies to food, criticizing the levying of higher rates on value-added manufactured foods that can drive market growth.

With the nationwide tax being levied from 1 July, the announcement of a wide variety of rates by India's GST Council last week has caused concern, which is rather ironic given a key aim of the reform was to streamline sales taxes – until now a patchwork of national, state and municipal charges.

Rather than food being subjected to one or two rates – which is standard practice in most developed markets – the Indian system will see food products covered by zero, 5%, 12%, 18% and 28% tax rates.

To some extent, the logic behind the decision has been to lower GST for basic items bought by poor consumers but there are additional complexities throwing up some potentially market disrupting anomalies.

Piruz Khambatta, chairman at the Confederation of Indian Industries' national committee on food processing, has called for some major changes, arguing the GST regime should at least ensure all food products mentioned in chapter 20 of its schedule (which covers preparations of vegetables, fruits, nuts or other plant parts) and chapter 21 (so-called miscellaneous edible preparations) be included in the 5% and 12% bands only.

Instead, many preserved vegetables (such as tomatoes, mushrooms and nuts) are in the 18% bracket and mixed condiments and seasonings attract 28%, for instance. Meanwhile, Khambatta points out the rate for processed packed food products such as instant mixes for idlis, dhoklas, soups, Chilli sauce, garlic ginger mixes and more is 18%. The current combined rate of their sales taxes is usually 10% to 11% "and so the price of all these will go up substantially.

A similar sales tax hike can be expected for squashes, jam, mango chutney and button mushrooms, Khambatta says, pointing out they will attract 18% GST, compared to current combined sales tax rates of 10%-11%.

Actually India's government is making a strategic mistake by mandating lower rates for basic fresh foods, exempting products such as fresh tomatoes, apples, bananas and mango, while charging higher rates for processed foods.

Far from helping poorer consumers, the move will harm them. The government should encourage food processing as it adds value, which helps farmers, instead of taxing at a higher bracket of 18.

The Indian GDP growth in agriculture is dismally low and if food processing grows, agriculture GDP would also grow. Higher taxing will hamper the food processing industry, leading to a lowering of agriculture growth.

More food manufacturing would reduce agricultural waste, offer time savings to domestic

cooks, and provide standardised safe food that promotes good health, Khambatta argues and branded/packed products should be at lower tax wherein consumers get better quality, better packed, more nutritious food.

A lot of confusion will arise, like take for example, take paneer, the Indian cheese, , this is product is tax-free if sold without branding and without packing but if you put in a container and brand it, then 5% GST will be charged. Paneer manufactured informally "in unhygienic conditions" will be sold tax-free, while "the one being manufactured and packed hygienically is to be taxed.

A similar penalty appears set to apply to sales of sweetened flavoured milk. Generally, it will attract 5% category GST but if fruit pulp is added to the ingredient mix then the tax rate will rise to 28%.

The Indian Dairy Association's south zone, noted the complexity of the milk segment, where different kinds of milk can be zero, 5%, or 18% rated depending on the final product. There are different variants of milk, like double-toned milk, toned milk, standardised milk and full cream milk being sold in India. Clarification in this regard is needed. While the new GST regime would simplify taxes compared to the outgoing system, addressing this type of issue "would go a long way in augmenting the growth of the industry.

There are regressive elements to the new GST structure, like ghee, a clarified butter used widely in Indian cooking, while many basic products were zero-rated, ghee will attract a 12% tax. Ghee is one of the principal consumer products sold in India across all category of people irrespective of strata and such a levy, would primarily hurt the interest of poor consumers who may not be able to afford ghee any longer, with small-and-mediumsized entrepreneurs manufacturing and selling ghee suffering as a result.

Another apparent complexity in the new GST regime how tax classifications are based on how food is categorized for food safety controls. It might make sense for certain similar foods to have different safety controls because of how they are made but believes it does not make sense for them to have different GST rates, especially when that leaves an opening for different levels to be charged for similar or identical foodstuffs, differing only by packaging.

Work on rationalizing and harmonizing tax and food safety classifications within India could remove the potential for such variety in GST rates.

A lot of confusion in the minds of the stakeholders could be resolved. Without it, companies may start to finesse their packaging and formulations to ease their products into lower GST brackets, he warned, good news for consultants like him, but maybe not so good for free competition and innovation.

One other potential source of confusion is the authority allowed under the GST regulations for tax officials to value food sold for taxation purposes – maybe ignoring its actual price. If a retailer sells a dairy beverage for Rs 30 per bottle and charged 5% GST, a tax official might see the same product being sold elsewhere at Rs 50 per bottle and decide all such products be valued at INR50, even when sold for INR30. The official would be expecting 5% of INR50 GST to be handed over from the retailer selling at INR30, "and show outstanding tax" in tax assessments.

F

ederal Farm minister Radhamohan Singh said, “With the GST coming, inflation will come down by 2 per cent. There has been no major increase in tax slabs for agriculture produce, and it was beneficial for both farmers and consumers.” India has said that the implementation of the Goods and Services Tax (GST) will benefit farmers and reduce food inflation, as grain and milk would remain exempted under the new regime that would put in place a single levy instead of multiple taxes.

Currently, both the tax-payer and consumer are paying levies to both the state and the Centre on the sale of produce, leading to increase in the prices of commodities, Singh said. Under the GST, agriculture produce from foodgrains, oilseeds, fruits and vegetables, milk, spices, fish, meat, and sugarcane will attract zero duty. “In some commodities such as cream and flavoured yogurt, the tax has come down to 5 from 12.5 per cent.”

A member of the government's think tank NITI Aayog, Ramesh Chand said that GST was required to promote economic development and growth.

“GST is a step to make entire India one market.

There have been different tax structures in states on same commodities and it was difficult to integrate these markets. Now that there will be uniform taxation, we can promote the national agriculture market (eNAM).” At present, 417 mandis in 13 states have been integrated with eNAM. He further added that with a national agriculture market, competition will increase, ensuring better returns to farmers and thereby promote efficiency in transport, trade, and transactions.

Some state governments levy high taxes; for instance, wheat and paddy attracted about 14 per cent taxes in Punjab, discouraging private players from buying grains in the state. Wheat and paddy account for a major share of the commodity basket, attracts no tax under GST. “It will be cheaper for the consumer and will lead to an increase in demand from the producer.

Most of the agriculture commodities are in the zero-tax bracket, which is a positive point for the agriculture sector and farmers,” Chand said.

In FY18, economy to grow at 7.4 per cent in India

S

upported by the agriculture sector which is estimated to clock 3.5 per cent growth and improvement in the performance of the industry and services sector, India's economy is set to grow by a robust 7.4 per cent in the current fiscal, according to the Economic Outlook Survey brought out by industry body FICCI. The country's gross domestic product (GDP) growth for 2016-17 is expected to be between 6.6 per cent and 7.1 per cent, with some even anticipating the fourth quarter (January-March) economic growth to be lower than the previous quarter numbers. The third quarter GDP growth estimates released earlier by the Central Statistics Office had reported 7 per cent growth indicating a nominal impact of demonetisation and the estimate for the full 2016-17 fiscal was put at 7.1 per cent.

with a minimum and maximum range of 3.6 per cent and 5.9 per cent respectively.

Inflation, based on wholesale price index, slipped to a four-month low of 3.85 per cent in April as both food articles and manufactured items showed cooling in prices. Besides, the consumer price index-based retail inflation fell sharply to 2.99 per cent in April, from 3.89 per cent in March, due to lower cost of food items, including pulses and vegetables that showed a deflationary trend, as per data released.

FICCI fixed a median GDP growth forecast of 7.4 per cent for the fiscal year 2017-18, with a minimum and maximum level of 7 and 7.6 per cent respectively. The impressive performance expected in the current fiscal may help India retain the title of the fastest growing major economy in the world, ahead of China.

Many of the economists supported the idea of a Universal Basic Income (UBI) for guaranteeing minimum basic support to the Indian citizens which found a special mention in the Economic Survey 2016-17. The UBI can be an efficient framework which would help reduce poverty and transfer the choice to spend on the individual, while promoting labour market flexibility. However, implementing UBI in a highly diverse country like India will be a colossal task as several challenges could emanate right from picking the beneficiaries to deciding on an acceptable income level and its distribution, they opined.

The survey noted that India's economy could withstand the impact of the demonetisation move on the back of strong macroeconomic fundamentals. The setback was transient and the economy is gradually picking up momentum as the process of re-monetization gets complete.

Sharing their views on the tide of protectionism engulfing the global economy, the economists felt that India needs to focus on implementing reforms, improve the investment climate, enhance hard and soft infrastructure and continue the efforts on tackling the issue of non-performing assets.

The survey projected a median forecast of 4.8 per cent for the Consumer Price Index in 2017-18 with a minimum and maximum level of 4 and 5.3 per cent respectively. The wholesale price index based inflation rate is projected at 5 per cent in 2017-18,

The latest survey was conducted in March/April and drew responses from leading economists representing industry, banking, and financial services sector.

5 % GST on sugar makes it cheap in Tamil Nadu and Andhra Pradesh but no impact on other states

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he consumears from Tamil Nadu and Andhra Pradesh, the two states which currently have VAT on sugar, will have to pay less once GST is introduced. While, consumers from the rest of the country will not have to bear any extra as the current rate of taxation on sugar works out to be about 5.5% Indian Sugar Mills Association is quite happy with

Beverages & Food Processing Times

the decision to impost 5% GST on sugar and it was an expected decision. Presently, sugar mills pay Rs 71/quintal as excise duty on sugar and Rs 124/quintal as the sugar cess and education cess.

At Rs 3600/quintal sugar price, the current tax is about 5.5%.

However, though millers are happy, sugar traders wanted sugar to be included in 0% tax bracket.

22

Vol. 10, Issue 01 - June - 2017

Beverages & Food Processing Times

23

Vol. 10, Issue 01 - June - 2017

NEWS

Value to the farmers and quality to the consumers

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ovind Milk and Milk Products Pvt. Ltd.was set up by the erstwhile princely family of Naik Nimbalkars.

Sanjeev Naik Nimbalkar being acutely aware of the needs of the

Sanjeev Nimbalkar (Chairman Govind Milk ) people in Phaltan, near Pune, ensured that the growth of the company also led to the socio-economic development in the geographical area in and around the company, a radius of about 150 kilometers. Naik Nimbalkar’s concern for the farmers’ well-being and the partnership approach adopted by him in the first phase of growth have contributed in a large measure to the overall development of Phaltan.

Having established the production processes which gave quality products to the consumer, Govind which was largely an input driven company started its transformation towards becoming a pan India and global brand. This transformation is being led by Rajiv Mitra the Managing Director of the company. For the first time in twenty years of its existence an external expert professional was brought in to lead the company in its next phase of growth. Mitra is passionate about making Govind a market leader in the dairy industry. The vision of the organization was and continues to be, as Rajiv Mitra says, ‘Value to the farmers and quality to the consumers.’ It is this very vision that is providing the fodder for transformation into the next phase

of growth.

The new goals for growth of the company set by Mitra are non - linear.

He envisions a larger pan India and global presence and believes that the strategy for this Rajiv Mitra (MD Govind Milk) would be to create a Govind brand to reach an increased consumer base and for instant recall. He also believes that for the success of this approach, the employees would need to develop a different mindset; a new set of competencies need to be nurtured and a culture of meritocracy has to take over. Mitra is providing the leadership for this transformation by introducing and implementing several initiatives for organizational change such as induction of right talent, implementation of technology, introduction of focused consulting,strengthening a performance oriented culture and introduction of work processes that impacts the employees and their productivity.

At Govind, the best procurement and processing systems are employed to process milk and produce milk products. A fully integrated, state-of-the-art dairy processing unit at par with International standards, with the capacity to process in excess of 10 lac liters of milk every day, is currently in use in Phaltan. The other Govind milk processing and packing units are in Turbhe (near Mumbai), Ahmednagar and Yamkanmardi (Karnataka).

Govind helps dairy farmers to source funds from

financial institutions by standing guarantee to it. The wealth of knowledge developed by the research scientists and veterinarians at Govind is passed on to the dairy farmers that helps in improving quality and quantity of milk. The unique partnering model used by Govind, has benefited multiple stakeholders. The quality of life and economics of the dairy farmer has improved.

This has benefited banks as farmer is able to repay loans in time. Insurance companies stand to gain as cows are healthier and less prone to disease or death. The consumer gets better quality milk and milk products. The Dairy activities of Govind have generated substantial employment in the area of Phaltan.

Govind has launched a new brand campaign drawn on the line of a refreshed brand positioning, that is The Happy Makers. In the words of Mitra, “We as a brand spread the chain of happiness by taking responsibility of our farmers, partners and eventually our consumers. Our farmers are free and happy as we have taught them a new way of dairying and therefore a new way of living. We have introduced new techniques and processes that have made them self-reliant”.

Govind Milk and Milk Products Pvt. Ltd established two decades back, with an intention to help the farmers since the Milk Federation could not provide adequate support to the dairy farmers, has emerged as a renowned, quality conscious company for milk and milk products in the state of Maharashtra and adjoining states. Govind supplies skimmed milk powder, whole milk powder, ghee to whole of the country in the retail markets and also as an ingredient to major Indian and international manufacturer of milk products.

In the recent past they won contracts to supply ghee to Tirupati Balaji temple used for preparing prasadam for the devotees.

Rajiv Mitra and the leadership of the company sound extremely bullish and look well set to taking this major regional player to levels hitherto unknown in the pan Indian market. The dairy sector needs such committed, values based yet performance oriented players like Govind.

A farmer is happy only when his livestock is happy and contented. Govind’s team of dedicated and qualified veterinarians who monitor the health of the cows so that they are happy and free. Happy cows produce happy and stress-free milk that ultimately reaches the consumer as happy and healthy drink and eatables.

General Mills to patent its high protein oats

H

igh protein products with a longer shelf life are a clear winner for food manufacturers. The global market for protein-fortified products is growing rapidly. The protein ingredients market is projected to be worth nearly $41 billion by 2022, according to a Global Industry Analysts report.

products with a better flavor profile over a longer shelf life and reduce the use of antioxidants. The company incorporates oats in several high-profile brands, including Nature Valley, Lucky Charms and Cheerios.

General Mills is seeking to patent an oat variety that has more than double the protein of standard oats and is less prone to oxidation. The oats could be used to boost protein in a variety of baked goods – including gluten-free items – or in animal feed to increase the protein and iron content of milk, according to the patent application.

General Mills has been working to develop this high protein oat variety for several years of traditional breeding techniques, and the patent suggests it has had to overcome significant hurdles along the way. The resulting variety is based on a wild variety of oats called Avena magna, and contains up to 40% protein, compared to about 10-15% in conventionally cultivated Avena sativa oats.

The oats’ higher levels of monounsaturated oleic acid and lower levels of polyunsaturated linoleic acid mean General Mills could develop oat-based

Until now, the main problem with the naturally high protein Avena magna oats was the crop could not be mechanically harvested. The large, furry

grains also would clog traditional mechanical threshing and dehulling machines.

For General Mills, having sole access to a high protein oat variety at a time when consumers are hooked on protein-boosted products puts it at a distinct advantage. It could also attract shoppers back to cereals if the product is viewed as healthier or has better taste than prior versions or other brands currently on the market.

Competitors will have to either offer lower protein products, or continue to add high protein ingredients, with the taste, texture, processing, and shelf life challenges that those may entail. Such ingredients might include plant proteins based on soy or wheat, or animal proteins, based on egg or dairy. The new oat could be a major boon to General Mills if the grain can follow-through on

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its early promise.

Using a basic ingredient with higher protein content also will help General Mills shorten its ingredients list. The company has filed a wide range of patents, including a legume-based dairy substitute, a method for producing gluten-free oats, and a way to process pasta using low protein flour, among others.

Consuming cheese does not increase heart disease risk

A

diet rich in cheese and yoghurt may not increase the risk of heart disease and stroke, according to new research that challenges the widely-held belief that dairy products can damage health. Scientists at the University of Reading in the UK conducted the largest analysis of population cohort studies, representing almost a million participants and over 93,000 deaths, published in the European Journal of Epidemiology.

The meta-analysis of 29 prospective cohort studies found that overall, diets high in dairy products, did not lead to any increased occurrence of cardiovascular diseases (heart disease and stroke) or death. “This latest analysis provides further evidence that a diet that is high in dairy foods is not necessarily damaging to health,” said Jing Guo, a Nutrition Scientist at the University of Reading.

“The number of participants in particular gives us a really clear global picture of the neutral association of dairy on heart disease risk,” said Guo. It also provides some indications about the potentially beneficial effect of fermented dairy on heart health, although further studies are needed to confirm this. The research supports previous findings that dairy foods, such as milk, cheese, and yoghurts, can be part of a healthy, balanced diet.

“We will now be investigating the possible ways that dairy foods may impact health,” said Professor Julie Lovegrove, Head of the Hugh Sinclair Unit of Human Nutrition, University of Reading.

24

Vol. 10, Issue 01 - June - 2017

CHOCOLATE NEWS

Drink Technology India becomes an annual event as of 2017 Drink Technology India for the first time in New Delhi, October 26-28, 2017 Regional spin-offs of DTI will better address the potential that India's various regions have to offer DTI is the most rapidly growing trade show in India

D

rink Technology India, the leading trade fair for the beverage, dairy, and liquidfood industry in India is switching to an annual format and will be held at various locations in the future—every two years in Mumbai, and alternating between New Delhi and Bangalore in the years in between. The objective of these regional spin-offs is to address the beverage, dairy, liquid-food sectors, and their respective packaging industries in a more demand-oriented manner. Alternating between Delhi, Mumbai and Bangalore will make it possible to better address and support customers in specific target groups in the various regions of India. For the first time ever, Drink Technology India will be held at the Pragati Maidan in New Delhi on October 26–28, 2017 together with IndiaPack and pacprocess India, formerly International PackTech India.

Bhupinder Singh, CEO of Messe Muenchen India is looking forward to this new challenge. “The foundation of the beverage industry in India is Mumbai, which is why DTI will still be held here every two years. But in the years in between, we

want to strengthen the presence and the range of attractions for our customers in India. Having DTI alternate between New Delhi and Bangalore allows us to bring its knowledge to all of India and address specific needs in different regions.”

Markus Kosak, Exhibition Director of Drink Technology India feels that this new configuration has plenty of advantages. “Moving into northern and southern India satisfies the best prerequisites for serving India's entire beverage, dairy and liquid-food industry. By continuing to develop this platform, not only are we giving our customers access to new potential, we are also making new networking opportunities available. In doing so, we give the beverage, dairy and liquid-food industry in India added value.”

The Indian subcontinent is still a dynamic growth market for the beverage, dairy, and liquid-food industry. The sectors for soft drinks and alcoholic beverages such as beer, wine and spirits are seeing extraordinary growth. India is currently ranked 13th in soft-drink consumption, with a rapidly

increasing trend. According to Euromonitor International, volume in this sector will increase by more than 100 per cent by 2020. In the case of alcoholic beverages, India is currently in ninth place with a forecast growth rate of nearly 28 per cent between now and 2020 (Euromonitor International, VDMA). This growth is being driven by societal change and significant economic growth in India.

That is also how Richard Clemens, Managing Director of the VDMA Association for Food Packaging Machinery and Packaging sees things, “Prosperous growth on the Indian market will open up new prospects and possibilities for DTI in the years to come. Alternating between locations each year also plays a key role. The presence of each sector differs from region to region within India, so focusing on specific aspects that are significant to each region is helpful.”

Exhibition Excellence Awards 2017 Drink Technology India won first prize as the most rapidly growing exhibition in India in 2017.

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The award is presented each year by well-known trade associations such as the Global Association of the Exhibition Industry (UFI) and the Indian Exhibition and Industry Association, and it is considered a seal of quality for trade shows on the Indian market. Petra Westphal, Exhibition Group Director of the drinktec Cluster, sees the award as confirmation of the decision to switch to an annual format: “DTI is established at its location in Mumbai. Moving into other regions in India and switching to an annual format will allow us to address our customers' needs with even greater precision in the future and further strengthen our status as the number one platform for the beverage, dairy and liquid-food industry in India.”

Chocolates may lower heart flutter risk

A

new study states eating chocolates regularly may lower the risk of developing irregular heartbeats, a condition that affects over 33 million people worldwide. Previous research has linked eating chocolates, especially dark chocolate, to improvements in heart health. Scientists, including those from Harvard T H Chan School of Public Health in the US, wanted to see if it may be linked to lower rate of atrial fibrillation, also known as heart flutter.

It is not clear exactly what causes the condition, and there is currently no cure or contenders for its prevention. The associations seemed to be strongest for 1 weekly serving for women and between 2 and 6 weekly servings for men, according to the research published in the journal Heart.

Researchers collected data from 55,502 (26,400 men and 29,100 women) participants, aged between 50 and 64. Participants provided information on their usual weekly chocolate consumption, with one serving classified as 30 grammes. Information on heart disease risk factors, diet, and lifestyle was obtained when the participants were recruited to the study.

Their health was then tracked using episodes of hospital treatment and deaths. During the monitoring period, which averaged 13.5 years, 3,346 new cases of atrial fibrillation were diagnosed. After accounting for other factors related to heart disease, the newly diagnosed atrial fibrillation rate was 10 per cent lower for 1-3 servings of chocolate a month than it was for less than 1 serving a month. This difference was also apparent at other levels of consumption: 17 per cent lower for one weekly serving; 20 per cent lower for 2-6 weekly servings; and 14 per cent lower for one or more daily servings.

When the data were analysed by sex, the incidence of atrial fibrillation was lower among women than among men irrespective of intake, but the associations between higher chocolate intake and lower risk of heart flutter remained even after accounting for potentially influential factors. The strongest association for women seemed to be 1 weekly serving of chocolate (21 per cent lower risk), while for men, it was 2 to 6 weekly servings (23 per cent lower risk).

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25

Vol. 10, Issue 01 - June - 2017

‘Wonderfulls’ mid-premium cookie product launched by Britannia

BISCUITS NEWS

Parle Platina the new remium category of Parle biscuits and snacks

P

arle has created a new division Parle Platina, to create a distinctive identity for its premium products, and is eyeing a quarter of its revenue from this segment over the next two to three years.

the next two years.

The premium biscuit industry stands at Rs 6,500

B

iscuit maker Britannia Industries expanded its Good Day product portfolio with the launch of ‘Wonderfulls’ in the midpremium cookie category. Present at the launch in Chennai, Vice-President – Marketing, Ali Harris Shere said demand for mid-premium category, in the price range of Rs.200-Rs.400 a kg, grew 23 per cent last year. But there are not enough players to cater to the segment. The mid-premium segment accounts for about 17 per cent in Rs.4000 crore cookie market. “This presents a tremendous business opportunity for us.”

The state of Tamil Nadu contributes 20 per cent to the total Britannia Industries revenue of Rs. 8,500 crores and is an evolved market for premium biscuit categories. Good Day brand accounts for revenue of about Rs.2,600 crores. As per Shere, ‘Wonderfulls’ has the potential of fetching about 10 per cent of Good Day revenues. Good Day Wonderfulls will have three variants – Choco Nut, Butter Almond and Berries and Nuts that will be available at the price of Rs.10 for 30 gm and Rs.25 for 75 gm.

The biscuits are manufactured in Chennai facility, which was set up with investment of Rs.40 crores.

The capacity of the plant is 500 tonnes a month.

After Tamil Nadu, the product will be launched in Kerala, Karnataka, Andhra Pradesh, Maharashtra, and North and East markets in the next few months.

For Parle brands like Hide & Seek, Milano, Mexitos and Simply Good are more futuristic and aspirational and are very different from the mother brand, Parle. Hence, the company created a distinct identity for these set of brands, and Parle Platina came about, which will consolidate the premium brands under one division. The company's mass brands include flagship product Parle G, Parle Marie, KrackJack and Monaco, among others.

The biscuit major will invest substantially in Parle Platina and will unveil a new packaging and logo, which will feature prominently for all products under this division. The premium segment is growing at 15-20 per cent for the company and there is a huge growth potential for premium products over the next 2-3 years and we see this segment contributing to about a quarter of our revenue.

Parle Products enjoys a market share of 15 per cent in the premium biscuit industry and the city-based company is aiming to increase it to 25 per cent in

Beverages & Food Processing Times

crore growing at 14-15 per cent, according to Nielsen.

26

Vol. 10, Issue 01 - June - 2017

NEWS

India among world's fastest growing chocolate markets

A

s per research, India is a nation of chocoholics and the country has one of the world's fastest growing chocolate markets which posted a huge 13 per cent sales growth last year.

The research conducted by London-based global market firm Mintel states that while the chocolate sales in other nations have stagnated, India consumed 2,28,000 tonnes worth of chocolate in 2016.

Australia and Indonesia consumed 95,000 and 94,000 tonnes worth of chocolate respectively in 2016.India (13 per cent) and Poland (2 per cent) were the only two markets to see sales of chocolate

grow last year.

Director of Insight, Mintel Food and Drink, Marcia Mogelonsky, “chocolate confectionery had an uneven year in 2016. Volume sales in developed markets remained flat, while the picture was a bit brighter in emerging markets, like India, where sales generally fared better.

Our research indicates that consumers in India believe chocolate to be beneficial and convenient seemingly the key reasons behind the growth of the country's chocolate confectionery market both in value and volume.”

India's chocolate confectionery market had had a

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strong CAGR (compound annual growth rate) of 19.9 per cent, in retail market value between 2011 and 2015 and is expected to grow at a CAGR of 20.6 per cent from 2016 to 2020, the research said.

It said that over two in five Indian consumers (44 per cent) find sweet or sugary snacks like chocolates and cakes to be healthy, while over one in three (35 per cent) Indians believe these snacks provide them with energy.

According to the research, 43 per cent of Indians consume sweet or sugary snacks like chocolate

and cake between lunch and dinner, with over half (53 per cent) reporting that they tend to snack in between meals because they get hungry.19 per cent of Indian consumers would like to see a wider variety of natural snacks that have no additives or preservatives, it said.

Futuristic packaging to come out soon that changes colors when food spoils

O

ne of India’s leading consumer products manufacturer, Dabur India Ltd commissioned its new manufacturing facility in Tezpur, Assam. Set up with an investment of Rs 250 crore, the plant is the most modern and environment friendly manufacturing facility in the consumer goods industry in India.

It was inaugurated and commissioned by Dabur India Ltd Chairman, Dr Anand C Burman. Dabur India Ltd Vice Chairman, Amit Burman and Chief Executive Officer, Sunil Duggal were also present on the occasion.

Manufacturing facility located in Balipara Industrial area will manufacture the entire range of Dabur’s Ayurvedic Medicines, Health Supplements, Hair Oils, Shampoos, Toothpastes, Skincare, and Home Care products. The new facility has been constructed in a record time of eight months since its ground-breaking in July 2016 and will house the most modern production lines for consumer products in India.

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The state-of-the-art manufacturing facility is spread over 30 acres of land and is expected to give a quantum leap to the capacity of Dabur India

Ltd to meet the growing demand for its products.

The plant features fully automated processing lines and automated packing lines to optimize supply chain and quality management. With its stringent quality control mechanism and highly hygienic production environment in place, consumers can be sure that products coming out of this factory will offer best-in-class quality while adhering to world-class good manufacturing practice. Special focus has been given to the environment with an energy efficient building and state-of-the-art technology for effluent treatment.

Dr Anand C. Burman said “I am extremely proud to announce the commissioning of Dabur’s most-modern factory in Tezpur. This factory will become the largest manufacturing facility for Dabur worldwide and possesses state-of-the-art technology to make world class products.

The Tezpur plant reflects our confidence in the continuous growth and expansion of our FMCG business in India and our strong commitment to Assam as a strategic manufacturing hub.”

Sunil Duggal said “Northeast India is today one of the fastest growing markets for Dabur. With this new facility in place, Dabur is confident of further boosting its presence in the region and neighboring markets.

The new Tezpur facility is also committed to developing local talent, leading to economic development of the region.

We are already meeting some of our packaging needs through local suppliers and plan to use local materials and suppliers as much as possible.”

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A modern Effluent Treatment Plant (ETP) has also been set up at the factory and Dabur will recycle the entire treated waste water for use within the factory.

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28

Vol. 10, Issue 01 - June - 2017

EDIBLE OILNEWS

India and Turkey to strengthen economic ties

T

he President of Turkey, Recep Tayyip Erdogan will start talks on a Free Trade Agreement (FTA) with India and prepare the ground for eventually arriving at a Comprehensive Economic Partnership Agreement (CEPA) to deepen and diversify economic and business cooperation between the two countries.

Erdogan said the volume of trade between Turkey and India stood at USD 6.4 billion in 2016. This was way below the potential, he said and added that Turkey's exports to India were USD 652 million and imports from India stood at USD 5752 million. This imbalance in trade need to be rectified, he emphasized.

President Erdogan said that the Turkish economy grew at 7.1 percent between 2011 and 2015. This dipped to 2.9 percent in 2016, but this year growth was projected at 4.5 percent. The country offered a large domestic market, a disciplined work force, laws were enacted to promote investments and significant importance was being attached to structural economic reforms.

Turkey, he said, could partner India in its 100 smart cities project. At the same time, both countries could leverage the untapped potential in renewables, nuclear energy and tourism.

t is the first time that a global company is buying a controlling stake in an Indian bread and bakery manufacturer. As Mexico’s largest food and Bakery Company is buying a controlling stake in India’s bread and bakery products maker Harvest Gold.

India's Prime Minister, Narendra Modi, pointed out that India and Turkey were among the 20 largest economies of the world. Both nations had shown remarkable stability and their economies were based on sound economic fundamentals and immense goodwill between its people.

The deal, which values Harvest Gold at around Rs 340 crore ($50 million), will see the promoter Adil Hassan selling around 65% stake in the company.

Deloitte Touche Tohmatsu India has been authorized by the company to manage the deal.

PM Modi said there was great business opportunity for Turkish companies to collaborate with Indian companies in India's flagship programmes such as ‘Make in India’, ‘Digital India’ and ‘Start up India’. The focus of his government was on creating a business-friendly climate in India. The GST legislation was another milestone to create a uniform business environment.

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The Mexican group plans expand its base in Asia, and as India offers a huge opportunity, the group has decided to grow inorganically here.

Harvest Gold Foods. With an initial investment of just Rs 1 crore, Hassan set up the company’s first manufacturing plant in Rajasthan’s Bhiwadi. The plant started production in June 1993.

Harvest Gold Industries produces various brands such as Ready Roti India, Food Magic India, Rhodanthe Foods and Mindscape One Marketing.

These companies have a common management and are owned by the parent company.

The $13.5-billion Grupo Bimbo is present in 23 countries in America, Asia and Europe. With over 13,000 products such as fresh and frozen sliced bread, buns, cookies, cakes, bagels, pre-packaged foods and confectionery products among others, and over 100 brands.

Harvest Gold was founded in 1993 by Adil Hassan, a chemical engineer from IIT Delhi as

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Africa takes tips from India to be an agri exporter

A

I

Mexico’s Grupo Bimbo group to buy 65% stake in Harvest Gold

fter observing India’s self-sufficiency in foodgrain production, Africa has set a target to cut down its $35-billion food import bill. Present at the opening of 52nd annual meeting of African Development Bank Group (AfDB), the President of the bank, Akinwumi Adesina, said India has shown the world a roadmap to become self-sufficient in foodgrain production within a short span of three years.

Meetings Discussions Knowledge

Adesina said, “We are here to draw inspiration from India’s Green Revolution” adding that Africa spends about $35 billion on food imports is likely to rise and touch $110 billion by 2025. “In 10 years, Africa must feed itself and become net exporter of food.”

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Emphasizing on the cooperation between India and Africa, Union Finance Minister Arun Jaitley said it is not a one-off event but part of a strategic policy over the last several years. “India and Africa together can shape the future of the world.

The present government has provided fresh impetus to these efforts. India’s share of announced greenfield projects grew from 3.3 per cent in 200308 to 6.1 per cent in 2009-15.

India is among the most important emerging investors in Africa. In terms of greenfield projects, India was the fourth largest investor with 45 projects in 2015 after the US, the UK, and the UAE.”

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He also restated India’s commitment to support Africa in achieving their development agenda.

Adesina said, the meeting is aimed at boosting India-Africa bilateral trade further as well as India’s co-operation with AfDB in areas like solar power, food and agriculture and infrastructure such as railways.

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EDITOR Firoz H. Naqvi

CONSULTING EDITOR Basma Husain

MARKETING EXECUTIVE Dhiraj Dubey

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121, 1st Floor, Rassaz, Multiplex, Mira Road (E), Thane -401107. Tel: +91-22-28115068 /28555069. Email:info@agronfoodprocessing .com, Website :www.agronfoodprocessing.com Printed, Published By -Firoz Haider Naqvi, RNI no- MAHENG13830 Printed at: Roller Act Press Services, A-83 Ground Floor, Naraina Industrial Area, Phase -1, New Delhi -110028, Reg Office :103, Amar Jyot Apts, Pooja Nagar, Mira Rd (E) Thane-401107, Delhi Office: F-14/1, Shahin Baugh, Kalandi Kunj Rd, New Delhi -110025 The views expressed in this issue are those of the contributors and not necessarily those of the news paper though every care has been taken to ensure the accuracy and authenticity of information, "Beverages & Food Processing Times" is however not responsible for damages caused by misinterpretation of information expressed and implied with in the pages of this issue. All disputes are to be referred to Mumbai jurisdiction

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