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Vol. 9, Issue 06 - November - 2016

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Vol. 9, Issue 06 - November - 2016

FOOD PROCESSING NEWS

With 16% CGAR Indiaâ&#x20AC;&#x2122;s packaged food market cross $ 50 million mark

n wake of increasing disposable incomes and a growing number of nuclear families, the share of packaged food in the processed food market is expected to increase marginally to around 29% in 2016 from around 28% in 2015 according to the study that was conducted by ASSOCHAM and a market research company, TechSci Research. With a annual growth rate (CAGR) of around 16%, the packaged food market in India is expected to have crossed the $51.5 million mark in 2015, said a joint study undertaken by the Associated Chambers of Commerce of India (ASSOCHAM).

The value of food and beverage packaging market in India is estimated to have risen to around $16 billion in 2015 from $12 billion in 2010, besides registering a CAGR of over 6%. The study, titled Dynamics involved in multilayered food packaging, also found that food packaging, with a size of over $4 billion had the biggest share in the plastic packaging market, where it accounted for around 63% of the total share. Market for multilayer plastic food packaging is currently estimated at about $1 billion, which is about 22% of India's total plastic food packaging industry. However, in the food and beverages packaging market, multilayer plastic food packaging accounts for over 6% share in value terms. "Growing usage of packaging material in various food service outlets together with increasing demand for packaged beverage and expanding working class population has given impetus to food packaging industry in India," said Mr D.S. Rawat, Secretary General of ASSOCHAM while releasing the findings of the study. In terms of share, metallic and other packaging material accounts for about half of India's overall food and beverages packaging market, followed by printed cartons and rigid packaging (24%), and flexible packaging material (24%) that includes like food packaging laminates and packaging foils.

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Beverages & Food Processing Times

Vol. 9, Issue 06 - November - 2016

GST may have minimal 42 mega food parks to be

operational in 2 years: Badal

effect on FMCG

anticipating 26 per cent. The 12 and 18 per cent tax rates have been declared as standard rates, which could see mid-priced products across the FMCG spectrum from soaps to detergents, hair oils to toothpastes fall in these brackets. Foodgrains and essential items such as milk will not attract a duty in the new regime, tax experts said.

MCG companies have begun assessing the impact of the rate structure under the Goods & Services Tax (GST). Finance Minister Arun Jaitley, who heads the GST Council, said a four-tier structure of 5%, 12%, 18% and 28% would be in place as part of the new tax regime that will kick in next year. While mass-market home, personal care and food products are expected to fall in the 5% bracket, premium products are expected to fall in the 28 per cent bracket, which could come as dampener for companies, who've been premiumising their portfolios. The rates are on expected lines except for 28 per cent, which came as a surprise. Most were

However, liquid detergents, hair conditioners, body wash, hair color, premium chocolates and processed foods might all attract a 28 per cent duty. Aerated drinks and pan masala will also attract a 28 per cent duty with an additional cess. The food processing industry is looking forward to rational tax rates for carbonated beverages, savories, fruit juices in the GST regime. But barring products in the demerit category (aerated drinks, pan masala, tobacco), most tax experts and CEOs say that price hikes will be minimal in FMCG. Harishanker Subramaniam, national leader, indirect tax, Ernst & Young, said, "The finalization of GST rate structure is a welcome move and brings us a step closer to GST implementation. The real action will now shift to which rate basket will goods and services fall and there lies the real game.

argeting the growth of food processing sector, the government claimed that all 42 sanctioned mega food parks would be operational within the next two years and announced plans to set up 500 cold chain projects to reduce post-harvest losses of fruits and vegetables.

centres. 138 cold chains were sanctioned earlier. Now, 100 new cold chains projects would be developed. We are seeking expression of interest till November 15 and then we will sanction it. These cold chains would come up in next 18 months", added the minister.

The mega food parks would help immensely in increasing the processing level of fruits and vegetables, which is currently at only 10 per cent, she said, adding that raising processing level and value addition would boost farmer’s income.

The government has decided to set up 500 cold chains across the country to boost food processing sector, which grew by more than 7 per cent last year, she said. A total of 138 integrated cold chain projects were sanctioned by the government till last year. Out of this, 91 are operational.

"Mega food parks are in all states barring few. They have been allocated on a transparent manner,” said Badal. Union Food Processing Industries Minister Harsimrat Kaur Badal said the government would soon sanction 100 new cold chain projects and has decided to set up 500 cold chain projects across the country and stressed on the need for establishing small agro- processing clusters at the producing

The ministry is implementing a Central Sector Scheme of Cold Chain, Value Addition and Preservation Infrastructure under which assistance is provided to set up integrated cold chain infrastructure for arresting post-harvest losses of horticulture & non-horticulture produce subject to a maximum grant-in-aid of Rs 10 crore per project.

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Vol. 9, Issue 06 - November - 2016

FOOD PROCESSING NEWS

Future Group launches its oats brand Kosh

MoFPI to host World Food Summit

he Food Processing Minister announced that the government is planning to hold the World Food Summit in New Delhi in March 2017. “With this summit, we intend to invite retailers, manufacturers, logistics to the progressive farmers

and the entire gamut which is in the food industry. The by-line is going to be transforming the India’s food economy.” The Government plans to call different countries to participate in the summit, where every state in India will showcase what all they have to offer in terms of infrastructure, investment opportunities and policy support. Badal also said that the Indian food was becoming very popular abroad. “Foreigners have taken a liking for Indian food the way we have adopted to pizzas and pastas. Indian food has moved ahead of chicken curry and tikka to include a wide range of offerings. The Minister also stressed on reducing food wastage by popularizing food processing. She said farmers toil very hard to grow their produce but are often forced to resort to distress selling and settling for paltry income. “While food wastage in the Western countries is on the plate, in India it is at the farm, storage and transportation levels. A better food processing infrastructure will address the issue of wastage and also help control inflation” Badal remarked.

uture Group has launched its oats brand Kosh, positioning it as a third grain and saying it should generate a Rs 200 crore revenue in two years. Kosh will be the second product from the group's food and FMCG stable which would be available in traditional trade in addition to Future Group's own stores.

potential to grow and should be a significant contributor to our food & FMCG business by 2021." The group's food & FMCG division Future Consumer is eyeing a 10-fold growth in five years. The plan is to take the top line to Rs 20,000 crore by 2021.

The idea behind Kosh is to make it the centre of the plate by moving it from being a breakfast product to an all-day meal. Their marketing and distribution will be focused on this and the group has set up an oats manufacturing unit in Sri Lanka with tea exporter SVA India.

In the past six months, Future Group has launched, frozen vegetables and branded staple and have entered categories such as dairy and personal care and would continue to be aggressive on that fronts.

Kishore Biyani, Chief Executive Officer, Future Group said, "So far, we have launched 21 products in food and FMCG and Kosh is one more in the list," and "People are looking at tasty and healthier options when it comes to food and we believe Kosh addresses it. While we are conservative as far as our (revenue) targets for this brand go, we believe it has the

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ite Bite Foods, a multi-cuisine restaurant chain with over 100 stores, runs the brands Punjab Grill, Zambar, FresCo and The Artful Baker, across the country and in some overseas markets such as Singapore, Bangkok and Washington. Lite Bite Foods will invest Rs 30 crore to expand operations of its Punjab Grill brand in India and overseas. The company Chairman Amit Burman said, as part of the expansion plans, the firm is launching a new format of Punjab Grill aimed at younger consumers looking for ‘healthier foods and smaller portion sizes.

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Rajasthan should provide special incentive package to the food processing units: Centre

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he Centre has asked the Rajasthan government to provide special incentive package to the food processing units being set up in the mega food park. During his visit to Jaipur and Ajmer, Food Processing Secretary Avinash K Srivastava met Rajasthan Chief Secretary and briefed him about the Greentech Mega Food Park being set up at Rupangarh in Ajmer district. Srivastava mentioned various schemes implemented by the Centre, including integrated cold chain, and suggested that the state entrepreneurs should take advantage of these schemes. In the meeting, Commissioner Industries, Additional Director Industries, SPV/promoters of Greentech Mega Food Park Pvt Ltd, representatives of Programme Management Agency (Grant Thornton India LLP) and PMC (IL&FS) were present. The Centre has sanctioned setting up of 42 mega food parks across the country.In March this year, Food Processing Minister Harsimrat Kaur Badal had said the government was keen to make all 42 mega food parks operational in the next 30 months with an investment of over Rs 12,000 crore.

Vol. 9, Issue 06 - November - 2016

Beverages & Food Processing Times

Vol. 9, Issue 06 - November - 2016

FOOD PROCESSING NEWS

Federation of Industries Jammu demanded food park

ederation of Industries Jammu (FoIJ) has demanded establishment of Food Park for the MSME sector in the State.

Chairman, of the Federation of Industries, Jammu Lalit Mahajan along with Ajay Langer, General Secretary, BBIA and Viraaj Malhotra Secretary/ Treasurer, BBIA attended one day Conclave on Agriculture & Food Processorsâ&#x20AC;? which was organized by Associate Chambers of Commerce & Industries of India (ASSOCHAM) at Sher-eKashmir University of Agricultural Sciences & Technology. It was pointed out that no Food Park has been established in Jammu province till date although Central Govt assistance through NABARD & MSME Ministry is available but due to casual approach of the Govt departments no action has been taken till date. (FoIJ) demanded for the setting up of Food Park in Jammu region for which land is already available in Ghati Industrial area in Kathua. He requested Industries and Commerce Minister ChanderParkash to intervene in to the matter and issue necessary instructions to J & K SIDCO who is also nodal agency for the promotion of Food

Processing Industry in the State. During his key, note address to the audience including farmers & students, Mr Mahajan highlighted the scope of Food Processing Industry in Jammu province for which it is the need of the hour to establish Mega Food Park in RS Pura, Kathua, Samba, Rajouri, Ramban, Doda & Udhampur districts to provide the opportunities for the setting up units to the local youths under MSME Sector on the basis of availability of raw materials available in these areas with the help of NABARD and Ministry of MSME, Govt of India. A power point presentation was also given by Lalit Mahajan in respect of ample scope for setting up Food Processing Industry in Jammu province by highlighting the road blocks for the growth of Food Processing Industry in the State which includes negative list for the Food Processing Industries which includes edible oil, roasted ground nuts & other industries as per the notification issued by J&K Finance Department keeping certain items of raw material & finished products of food processing industries, lack of marketing support, non-availability of requisite funds under credit guarantee scheme of Govt and other related factors.

Non-food products may enjoy 100 per cent FDI

fter a long discussion with the investors the Indian Government has decided to ease the FDI restrictions for the recently opened food retail by allowing stores to sell non-food products up to a certain value, besides tweaking rules for some segments of the real estate sector after a series of liberalisation efforts earlier this year. Although a formal review of the rules is yet to commence, initial discussion within the government has started, especially for the food retail segment, where the food processing ministry has been pushing hard to allow 15-20% sales to come from household products such as soaps, toothpaste or kitchenware. In June, the government had allowed foreign players to set up wholly owned ventures in the country to sell locally produced and Made-in-India food products through retail stores, a move that has generated little investor interest.

where she can buy goods that meet his/her daily requirement for all household items and not just food. Even at that time the food processing ministry had argued that these stores be allowed to sell personal care and non-food products required by households on a daily basis. Food processing minister Harsimrat Kaur Badal's proposal, however, did not find favour with others in the government. After blocking UPA's attempt to open multibrand retail, the Narendra Modi administration has moved cautiously on the front given that it considers traders as a prominent constituency and allowing FDI in this segment may not go down well with this segment. With elections in crucial states such as Uttar Pradesh, Punjab and Gujarat coming up over the next a few months, it is not clear if the government was willing to take a political gamble. Similarly, in case of real estate, the government is toying with the idea of tweaking rules to ensure that entities such as Chinese construction giant Dalian Wanda Group are able to move ahead with their proposed investment of nearly $10 billion. Under the current rules, development of townships is not allowed. Sources said restrictions on transfer of undeveloped land are being reviewed as there are takers for it. Even the Delhi-Mumbai Industrial Corridor Development Corporation is undertaking a similar job and the model which was formulated several years ago now appears outdated.

"We are examining the issues but there is no formal proposal yet," said a source. The move is not aimed at opening up multi-brand retail. Although companies such as Walmart are studying similar formats in Latin America, industry sources said, an Indian buyer would prefer going to a store

Sources indicated that there may be other rules that could be reviewed as part of a comprehensive exercise but the details are yet to be worked out. Since coming to power two-and-a-half years ago the government has repeatedly eased FDI rules in sectors such as insurance, railways and defence. This, along with other steps, helped attract record inflows of $55 billion during the last financial year.

Government to look into specific lingering policy despite easing of FDI norms

overnment is trying to address specific lingering policy issues in various sectors despite easing of foreign direct investment (FDI) norms and is also trying to address very specific policy issues in various sectors. The govt. has identified a number of them that remain despite liberalization in FDI (policy). Department of Industrial Policy and Promotion (DIPP) Secretary Ramesh Abhishek said that the government earlier this year approved changes in the FDI regime. The reforms included allowing 100 per cent inflow in civil aviation and food processing sectors while easing norms in defence and pharmaceuticals. It also permitted 100 per cent FDI under the automatic route in several wings of the broadcasting carriage services, which include teleports, direct-to-home, cable networks, mobile TV and headend-in-the sky broadcasting service. "We are aware that business climate had not been the best possible earlier, but now there is tremendous stress and thrust on improving it and in the last two years, the government has tried to create a very business-friendly climate. Ease of

doing business is a very critical part of Make in India.", Abhishek said. He gave an assurance that efforts to constantly improve the business climate and infrastructure will continue and the results will be visible. "We don't make promises and not implement them. Projects are being monitored at the highest level for timely implementation," the DIPP Secretary disclosed. Asserting that implementation of the goods and services tax (GST) will be a gamechanger for the country, Abhishek said the government is determined to implement the reform next year and all necessary steps are being taken in that direction. He observed that the impact of GST on Make in India will be "absolutely staggering" due to the level-playing field it will provide to our manufacturers. "Cost of domestic manufacturers and those manufacturing in India will come down and movement of goods and services across states will also be much easier," the secretary said further.

Fall in food tech and online grocery deal value during 2016

ccording to the VCCEdge Funding Insights presented by News Corp VCCircle, the year 2016 has so far registered 62 PE deals worth $ 250 million in the food and agri space, the lowest in terms of deal value over the last five years,. In comparison to the previous year of 2015, which saw a massive 153 deals worth $ 1154 million, 2016 YTD (year to date) has seen a fall of 78 per cent in deal value and 59 per cent in number of deals. While the number of deals in the sector at the going run rate is better than 2012 and 2013 which witnessed 45 and 64 deals respectively, the deal value is lower than half of 2014 -which had $ 523 million worth of deals. Since 2012, the sector has garnered investments to the tune of $ 2767 million from 406 deals. While agro businesses attracted $ 722 million from 40 deals, those in the food industry saw 366 deals amounting to $ 2045 million. The agri-farming and processing businesses attracted maximum investments in 2016. This segment saw 6 deals amounting to $ 79 million, greater than 2013 and 2014 ($ 30 million and $ 28

million) but down 58 percent compared to $ 191 million last year. Its share in overall deal value has spiked up from 17 percent in 2015 to 32 per cent in 2016. Food tech and online groceries, which saw a 358 per cent increase in deal value to $ 504 million in 2015 with 85 deals, registered only 33 deals worth $ 67 million in 2016. While its share in total number of deals has remained above 50 per cent, there has been a fall from 44 percent to 27 per cent in terms of deal value. Mirroring the trend in the food tech space is the restaurants segment. Against a four year trailing average of $ 148 million since 2012, this segment has recorded 9 deals to the tune of only $ 27 million so far in 2016. The packaged foods segment has been lackluster in 2016 with 9 deals worth $ 42 million. As against 2015, it is a fall of 55 per cent in number of deals and down 68 per cent in value terms. Dairy and poultry sector has been the only segment to witness a growth of 120 per cent with investments amounting to $ 33 million in 2016 spread across 2 deals.

MP to provide special package to food processing units

n a recent meeting headed by Chief Minister Shivraj Singh Chauhan the Madhya Pradesh government has decided to provide special package to major food processing industries under Madhya Pradesh Industries Promotion Policy 2014. The cabinet also decided to merge services of 41 employees of MP State Oil Seed Producer Cooperative Federation in the farmers welfare and agriculture development department. "Considering government's efforts to invite industries in the farm sector, the state cabinet decided to provide special package for availing benefits of specific facilities to major food processing industries, under its promotion policy," said state spokesperson Narottam Mishra. Under the provision, the government will provide

Beverages & Food Processing Times

jobs to farmers in major food processing units on a larger scale and they will also get better price and market for their agriculture produce, he said. The cabinet also decided to merge services of one mechanical assistance and 21 helpers of MP State Oil Seed Producer Cooperative Federation on cleaner post. Decision was taken to merge six employees of Oil Seed Federation to class III posts in farmers welfare and agriculture development department. Services of thirteen other employee of Oil Seed Federation were merged with farmers welfare and agriculture department on merit basis. The Cabinet also approved merger of six employees of Child Rights Protection Commission on vacant posts of direct recruitment in integrated child development service.

Vol. 9, Issue 06 - November - 2016

FOOD PROCESSING NEWS

Amul opened restaurant in India

o-op giant Amul has opened its first mall in India, Amul Green, as it begins experimenting with the modern retail format. The world’s 13th largest dairy organisation, Amul has opened the new venture in a 5,800 sqft area, which it previously rented to a restaurant. The mall centre will sell 6,500 items of food and other products, and the co-op is opening a restaurant, Amul Foodland, next to the mall. Gujarat Co-operative Milk Marketing Federation, which trades as Amul, reported a turnover of USD$3.5bn for the financial year 2015-2016, up 11% from the previous year. The federation includes 17 member unions and sells 12m litres of milk bags per day in India, which is the world’s biggest producer and consumer of milk. Amul is India’s largest food products marketing organisation. Managing Director Mr K Rathnam told that he expects a turnover of Rs 800,000 (£7,018) a day for the mall and restaurant. The co-operative is purchasing spices, grains, pulses, oil, nuts and sugar in bulk, which it will package and sell under the Amul Green brand. It plans to buy agricultural products directly from farmers to enable them to obtain better prices for their products.

Patanjali acquire RH Agro’s rice mill for Rs 70cr

amdev's Patanjali has acquired RH Agro's rice mill in Sonipat, Haryana, for Rs 70 crore and has taken four other rice mills across the country on exclusive lease, which will help it launch 18 packaged rice brands by the end of this month. "The acquisition will give us technical know-how in rice processing," said Acharya Balkrishna, MD of Patanjali Ayurved. "We have partnered with thousands of rice farmers in many regions of the country to produce traditional variants." At present, Patanjali sells three variants of packaged rice — silver, gold and diamond. It meets its procurement needs by buying finished rice and packaging it at its Haridwar facility. The new mills will not only give the FMCG company the capability of producing 3.2 lakh tonnes of finished rice a year from paddy but will also allow it to produce region-specific rice variants that it plans to sell locally and export as well. Other than the mill in Sonipat, which will process basmati, Patanjali has leased two mills in Madhya Pradesh to process the pusa variety. Another mill in Telangana will produce the lightweight aromatic sonamasuri to cater to markets in the south, while a mill in Fazilka, Punjab will process rice grains that are grown in the north. Around 150 varieties of rice are currently grown in the country, industry estimates showed. "The rice brands will be made available in 50 SKUs (stock keeping unit) of various sizes," said Balkrishna. Prices will range between Rs 67 for one kilo of Sona Masoori Steam and Rs 2,100 for 25kg of Lashkari (kolam), the company said. Senior executives at Patanjali said its new rice variants will have a shelf life of two years, which is double that of brands available in the market. "Some of our variants will also take less time to cook than competing brands," they said.

Beverages & Food Processing Times

Vol. 9, Issue 06 - November - 2016

FOOD SAFETY

FSSAI proposal: non-specified food & ingredients to be regulated

ood Safety and Standards Authority of India (FSSAI) has issued a draft regulation for non-specific food items and food ingredients. Also the manufacturers or importer will have to seek prior approval for manufacturing, sale and import of such products if they do not fall under any other rules stated in the Food Safety and Standards (FSS) Act, 2006.

Act (FSS) shall require prior approval for being manufactured, stored, sold, distributed or imported under the Food Safety and Standards (Approval for Non-Specified Food and Food Ingredients) Regulations, 2016." Such articles of foods and food ingredients shall include different and new foods or novel ingredients that have not been consumed in India; food ingredients with a history of human consumption but not specified in any other regulation under the Act; foods manufactured or processed using latest technology; new additives and processing aids. The manufacturer will have to seek approval from FSSAI by submitting the application along with mandatory documents and fee amount.

Within a stipulated period of 60 days, FSSAI has sought comments from stakeholders on the draft Food Safety and Standards (Approval for NonSpecified Food and Food Ingredients) Regulations, 2016. The draft states that "only such article of food or food ingredients which have not been permitted to be manufactured, stored, sold, distributed or imported under any other regulation under the

After thorough safety assessment of the product, FSSAI Chief Executive Officer is the authorized person who either approves or rejects the application. "Where approval is granted, the FBO shall submit certificate of analysis of the product on parameters relating to the chemical, nutritional, microbiological, heavy metals, pesticide residues and naturally occurring toxicants to FSSAI," the draft said.

Varsity canteens, messes should have license under Food Safety

The Food Safety and Standards Act provide the framework for regulating manufacture, storage, distribution and sale of food items so as to ensure its safety.

UGC Secretary Jaspal S Sandhu has written to vice chancellors of universities regarding the fact that canteens, messes and other food establishments located in various educational institutions have not been licensed under the Food Safety and Standards Act, 2006. "You are requested to kindly ensure the implementation of the FSS Act, 2006 in food establishments of your esteemed university and in all the affiliated colleges," he wrote.

" The Food Safety & Standards (Licensing & Registration of Food Businesses) Regulations, 2011 stipulates that no person shall commence any food business unless he possesses a valid licence," the senior UGC official said in his letter. The Food Safety and Standards Authority of India (FSSAI) would also organize training of food handlers working in food establishments of the educational institutions to provide safe and wholesome food to the students, Sandhu said.

he University Grants Commission (UGC) has asked varsities and colleges to ensure that canteens and messes in educational institutions should now be licensed under the Food Safety and Standards Act.

Food industry goes beyond looks to fight waste

illions of tonnes of food are thrown out or left to rot in fields every year in wealthy nations, simply because they do not meet cosmetic standards set by distributors or supermarkets. Under pressure from anti-waste advocates, the food industry has begun looking for ways to throw away less.

So now, in such cities as Pittsburgh and Paris, some of that imperfect produce has started to find its way into stores. And bargain-hunting consumers, who get a hefty discount for their willingness to munch on too-small apples and blemished oranges, seem to be buying it. With the water, fertilizer, energy and other resources used to grow crops that never make it to the table, food waste carries an environmental price. In the United States, 40 per cent of food,

$162 billion worth every year, is never eaten, according to the Natural Resources Defense Council, an advocacy group, and ReFED, an anti-waste coalition. Producing, processing and transporting uneaten food accounts for a quarter of America’s water use and four per cent of its oil consumption, the council says. Along with targeting waste, being able to sell food that once would have been tossed aside gives growers a new stream of income and offers consumers a way to save money without compromising on taste or nutrition. Often, the cosmetically challenged fruits and veggies are hardly distinguishable from ordinary ones — an orange with a bumpy scar on it, or a potato that is slightly smaller than its peers. Abundance allows retailers in wealthy countries to be particular about aesthetics, and consumers have grown used to choosing from uniform rows of shiny red apples and perfect pears. The industrial scale on which agriculture operates in many rich nations, and the long distances food often travels from farm to table, result in a great deal of waste. Retailers grade produce according to strict criteria to which farmers, fearful of shipping anything that might be rejected, must pay close attention.

Missing stock is harming India’s food security

he Reserve Bank of India (RBI) recently approved a proposal to restructure around Rs 30,000 crore of food credit given to Punjab state agencies, allowing for the conversion of cash credit into a 20-year loan at a lower interest rate. The central bank also sanctioned a cash credit limit of Rs 26,000 crore for this year’s procurement by state agencies. The fact that food security of the entire country is dependent on Punjab’s agricultural performance may have prompted the RBI to adopt this liberal stance. But it raises a crucial question—will window-dressing cash credit of missing stock set a bad precedent for other agrarian states that are heading towards a similar predicament? In the case of food credit, the procedure involves lending to the corporation, procurement of grains, storage in state godowns and monitoring of stocks by the state government. The cash credit given to procure grains should thus meet the amount of hypothecated stocks. When this does not happen, there is a clear case of discrepancy or missing stocks. During April, this year, missing stock worth around Rs 20,000 crore was discovered in Punjab’s food purchases, following which the RBI instructed the affected banks to make provisions for the potential losses. The instruction was despite the general rule that all state government borrowings are treated as sovereign debt—that is, the debt should be paid automatically when the Central government releases food subsidy. A 2014 investigation by the Comptroller and Auditor General uncovered the magnitude of the scam in Punjab. Of 3,319 trucks hired for paddy transport by the Food Corporation of India and four of Punjab’s nodal agencies, 3,232 were nonexistent and 15 were vehicles other than trucks. The report goes on to show that Rs 843 crore of losses was incurred due to the inefficiency of the Punjab State Warehousing Corporation because of delayed availing of loan from the National Bank for Agriculture and Rural Development, delayed handing over of godowns to the FCI, nonadoption of FCI’s storage and preservation norms, inadequate control over milling activities and failure to recover transportation charges. The issue is not restricted to the state of Punjab. The situation prevails across the country and requires redressal at a fundamental level—better supply management. This is as essential for controlling inflation as it is for food security. Although India’s productivity is not optimal, over the years the country has achieved enough, even surplus, production levels. The problem, therefore, lies in preserving this output for future use. According to the Food and Agriculture

Organization, around 40% of the food produced in India is wasted and this includes vegetables, fruits, meat, milk, cereals and pulses. Wastage from the public distribution system, which is meant for ensuring food security in the country, makes up almost half of the total. Considering that India ranked a lowly 97th of 118 nations in the recently released Global Hunger Index, spoilage and pilferage are not things the country can afford. The unified National Agriculture Market launched this year will go a long way towards settling transaction costs and information asymmetry problems by integrating the market and facilitating price discovery. But warehousing and storage problems will need to be addressed separately. The concept of a Negotiable Warehouse Receipts system, as proposed by the Shanta Kumar Committee for restructuring FCI, is one way to break the monopoly of state agencies and incentivize farmers. It allows farmers to deposit their produce in registered warehouses for an advance and sell it later when market prices are high. Per the 70th round of National Sample Survey Office data, currently only 13.5% and 16.2% of the paddy and wheat farmers, respectively have sold their produce to procurement agencies. Strict adherence to quality standards and norms should be made mandatory for the registered warehouses, private or otherwise. A combination of private and public agencies is essential to handle the vast and diverse agricultural output in the country. Meanwhile, the FCI, which has been failing repeatedly in its initial objectives, should be streamlined and allowed to focus on states’ surplus produce meant for distribution in other states. Most of the produce meant for a state’s own consumption should be left to the state agencies. Provisions must also be made to liquidate stocks as and when they exceed buffer stocks to minimize wastage. Efforts should be made to revamp the food processing sector in India to reduce the perishability of food items. The setting up of mega food parks and cold storage chains as part of the Make In India project, and 100% foreign direct investment through the Foreign Investment Promotion Board (FIPB) route in the marketing of food produced and manufactured in India is welcome in this context. A robust food-supply chain, which can make value additions through better storage, distribution and processing, will ensure that the agricultural sector remains competitive, transparent and profitable. This may perhaps also change banks’ negative perceptions of the sector.

India, NZ concludes food safety cooperation arrangement

or better trade prospects in food products, India and New Zealand announced conclusion of food safety cooperation arrangement to encourage greater coordination between food authorities of the two countries. The announcement was made in the joint statement of India and New Zealand. John Key Prime Minister of New Zealand, was on a two-day state visit to India from October 25-27. Prime Minister Narendra Modi and New Zealand Prime Minister John Key expressed their wish for greater bilateral trade and investment. They announced the "conclusion of a Food Safety Cooperation Arrangement to encourage greater

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coordination between New Zealand and Indian food safety authorities, and supporting more efficient trade in food products." The arrangement was made between the Food Safety and Standards Authority of India (FSSAI) and the Ministry for Primary Industries of New Zealand regarding Food Safety Cooperation, according to the list of outcomes. FSSAI has been established under the Food Safety and Standards Act, 2006 as a statutory body for laying down standards for food articles and regulating manufacturing, processing, distribution, sale and import of food to ensure safe and wholesome food for human consumption.

Vol. 9, Issue 06 - November - 2016

Why Mars hired meteorologists to get ahead of climate change's impact on chocolate

ecause of the nature of chocolate and its ingredients, weather patterns and climate change impact not only ingredient sourcing, but also shipment and transportation of the finished product to retailers and consumers. Chocolate is more likely to melt when shipped in warm weather, and refrigerated shipping can be prohibitively expensive. That's particularly true for smaller e-commerce sales shipped directly to consumers versus bulk orders from retailers. Mars hired a team of meteorologists to find solutions to the impact of weather and climate change on the chocolate industry. The meteorologists analyze global weather plans to inspire more informed decisions about the company's supply chain and ingredient sourcing, Katie Johnson, a senior manager on the commercial applied research team, told. Mars' meteorologist team focuses on both nearterm weather forecasting, such as how El Nino or La Nina might impact California's almond crops, and weather patterns months and years down the line, such as the potential impact of global warming. What Mars is doing with its meteorologist team could be helpful for both the company and the entire industry if the insights are actionable on a larger scale. Mars has already proven its commitment to sustainability initiatives internally, and this could be the next step toward having a broader impact on sustainability in the food industry.

CHOCOLATE NEWS

Mondelez launches Cadbury Fuse

ondelez India, the market leader in the Rs 7,500-crore chocolate market in India, announced the launch of its new brand Cadbury Fuse, a premium offering in the company’s countline category which includes 5 Star, Perk and the recently launched Marvellous Creations.

the size of impulse tablets market. Our Cadbury Dairy Milk Silk revolutionized tablets which is defined for “For Us” need state. With a growing consumer trend of individualistic consumption and indulgence, we are now ready with a mix that will change the countline category in the “For Me” need state.”

priced at Rs 20 for a 25-gm bar and Rs 35 for a 45-gm bar, Fuse is available for sale on Snapdeal, followed by 100,000 traditional trade and modern trade stores in three months.

Fuse will compete head on with Snickers, a popular peanut and chocolate bar from Mars Inc and the more recently launched Munch Nuts peanut and chocolate bar from Nestle.

Fuse has been developed by the company’s global teams based on deep insights on the changing needs of the Indian consumer, made using extrusion technology, a first in India, according to Peres. Extrusion is a process by which a set of mixed ingredients are forced through an opening in a perforated plate or die with a design specific to the food and is then cut to a specified size by blades.

However, Peres said, while the name Fuse existed in the company’s product portfolio some time ago, the Fuse launched is not the same product, but a new chocolate made with extrusion technology.

Describing Cadbury Fuse as a fusion of crunchy peanuts, smooth caramel with a creamy centre, all coated in rich Cadbury milk chocolate, Prashant Peres, Director Marketing (Chocolates), Mondelez India, said: “The launch of Fuse, will mark our journey of premiumisation in the countline space. “Globally, the impulse purchase countline market is 9 times

The company’s recent successes in India include the first centre-filled chocolate, the Cadbury Dairy Milk Silk Caramello and the first aerated chocolate, the Cadbury Dairy Milk Silk Bubbly.

Parle enters luxury chocolate segment

iscuits and confectionery manufacturer Parle Products has forayed into luxury chocolate segment with the launch of Friberg a super-premium chocolate brand imported from Belgium and Switzerland. The launch of the new chocolate brand is inspired by the growing demand for luxury chocolate offerings and changing consumer preferences from traditional sweets to premium chocolates as gifting options during the festive season. "Chocolate consumption in India is gaining popularity and we at Parle are always looking to innovate as we understand the evolving palate and tastes of the Indian consumers who are now looking for unique, self-indulgent food products," Parle Products Brand Manager Kaizeen Writer said in a statement. The company has also launched Belgian wafer thins which are a first of its kind for the Indian market. The bar format comes in three different Swiss chocolate flavours which include Lait Suisse Chocolate, Noir Suisse Chocolate and Lait Caramel Chocolate. Priced at Rs 350 for 125 gms in the wafer format and 90 gms in the bar format, Friberg has been launched in Mumbai, Delhi, Bengaluru, Ahmedabad, Chennai and Hyderabad in select stores. According to industry estimates, the chocolate market in India is projected to surpass USD 17 billion by 2020. Rising disposable incomes, changing lifestyles and a young population growing penchant for indulgence has transformed India into one of the world’s fastest growing chocolate markets. Parle Products has presence in biscuits, confectionery and snacks segments with brands like Monaco, Krack Jack, Hide & Seek, Milano, Mango Bite and Melody and is now looking to capture the premium chocolate category with the launch of Friberg.

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Fuse was first launched in the UK in 1996 and discontinued a decade ago.

He said, the name Fuse came up from consumer feedback during trials, that it is a great fusion of tastes and textures. The chocolate + peanut segment constitutes less than 2 per cent of the overall chocolate market. Mondelez India has 65 per cent share of the chocolate market, that is growing at 9 per cent YoY.

Vol. 9, Issue 06 - November - 2016

BEVERAGE NEWS

Parle Agro brings ‘the Frooti life’ to billboards

o make the consumers Live The Frooti Life Parle Agro India has come out with a massive out of home campaign of its flagship brand Frooti introduced by the company in 1985.

The objective of the campaign was to create a high visibility and impact for Frooti in the OOH space. Targeted at audience aged between 15-35 years, the campaign is centre on a deep understanding of the consumers, derived from primary research (OCS), patented analytical tools (PRISM) and accumulated knowledge. Posterscope zeroed in on strategic locations to reach the core TG and create maximum impact. Building on the brief, Posterscope India crafted a campaign that resulted in a media mix, delivering both impact and reach. The media formats used for impact were billboards, bus shelters, mall media, gantries, unipoles, bus wraps, utilities,

pillars, mobile vans and so on. In an attempt to create impact, multiple creatives are being used across cities. Every creative invariably has been highlighting the ‘live the Frooti life’ concept. The campaign has been executed in 160 plus cities that include the top eight metros, tier one and two cities. Nadia Chauhan, JMD and CMO, Parle Agro, said, “OOH has played an important role in delivering the communication objectives of the Live The Frooti Life campaign. The medium enabled us to leverage the strongest part of our creative assets; the brand’s visual identity. Posterscope has aligned with our brand strategy ensuring our campaigns achieve maximum impact.” Haresh Nayak, Regional Director, Posterscope, APAC, said, “The Frooti story is built on an enormous legacy. And therefore, the crafting of any campaign for this product has to match up to that legacy that Frooti brings along. We have been servicing this client since 2013 and every campaign that we have built for them has led us to rethink each and every tested strategy and create something novel, new and authentic. Frooti challenges us at every step and the struggle that we go through to live up to that challenge only helps us create a better version of Posterscope through every new campaign.”

PepsiCo on path for better-foryou drinks by acquiring KeVit

epsiCo has been diversifying beyond soda in recent years, including expanding its Naked line into the fast-growing coldpressed juices category. PepsiCo also already expressed interest in probiotics with the debut of Tropicana Essentials Probiotics, which the company announced last month. Healthy foods and beverages have been key to growth for PepsiCo in its most recent earnings report. KeVita's portfolio of sparkling probiotics, master brew kombucha and vinegar tonics center on the purported health benefits of probiotics. Probiotics have been a key trend in functional food and beverages in recent years because of their potential impact on digestive and immune health, though some experts question those health benefits. PepsiCo will move forward with a deal to acquire probiotics beverage manufacturer KeVita, in which PepsiCo already owns a minority stake and distribution deal. This deal would be the first acquisition under PepsiCo's venture arm Naked Emerging Brands, which is tasked with

diversifying the large corporation's beverages portfolio with better-for-you options for healthconscious consumers. PepsiCo could complete the acquisition as early as this month with an expected value of less than $500 million, the sources said. However, negotiations could delay or stop the deal. This deal could show how PepsiCo made use of an exit strategy to make a venture capital investments in a startup. By investing early, major manufacturers can learn the inner workings of a startup's operations and portfolio, while positioning themselves to acquire the company outright for a lower price tag down the line. Without an early investment and minority stake, an acquiring company could end up paying a much higher price for the startup after it grows and proves its market potential. Consequently, more manufacturers are launching venture arms, like PepsiCo's Naked Emerging Brands or Coca-Cola's Venturing and Emerging Brands.

Sugary drinks sales may slump down due to tax hike

ccording to a report by World Health Organisation (WHO), if there is a hike in the retail price of sugary drinks by 20 per cent, then it will affect the consumption pattern. WHO has joined a long list of countries who support the sugar tax, with its latest report campaigning for improved nutrition.

beverages by 5% in 2014. Manu Raj Mathur, Research Scientist and Assistant Professor, Public Health Foundation of India said, “Higher tax is definitely one of the strongest interventions to reduce consumption, but it should be accompanied with robust behavioural interventions to change social norms and perceptions.”

The report said that reduced consumption of these products will improve the health status of people as they will have less intake of free sugar and calories. Better nutrition and there will be less cases of obesity, diabetes, overweight, tooth decay. One in 200 deaths has been accounted to sweetened beverages, which has increased the ratio of cardiovascular diseases, obesity and diabetes in India. In order to curb consumption, the Indian government had increased the tax on such

People don’t need sugar in their diet, as the ideal intake should be below 10% of the total calorie intake of the person. WHO in its report has urged governments to subsidise fruits and vegetables which will encourage people to eat more. Such taxation should be limited to items "for which healthier alternatives are available". In various countries, the sugar products are priced at high rate and the health group suggests that the similar steps can be taken for other foods items that are rich in trans-fat, salt and saturated fats.

Coke’s growth in India loses fizz

oca-Cola's growth plans in India have hit a bottleneck as sales of its beverages in the third quarter (July-September) have been dragged down by rising health concerns over sugary drinks and wary consumer spending.

month, PepsiCo's Chairman and CEO Indra Nooyi unveiled ambitious plans to reduce the amount of sugar in its beverages, signalling a larger global trend that shows a slowdown in sales of sugarsweetened beverages.

The Atlanta-based company, maker of drinks such as Thums Up, Sprite, Maaza and Minute Maid, said its sales volume in India declined by 4% in Q3. In the same period last year, Coca-Cola's sales in India grew by 4%.

In India, while Coca-Cola and PepsiCo control around 80% of the soft drink market, the carbonated category, (worth Rs 14,000 crore) consisting of colas and lemony drinks such as Pepsi and Sprite, accounts for more than 70% of the overall market, according to Nielsen. However, the widespread availability of health-based drinks such as packaged lassi, aam panna and soya milk among others have dented the growth of fizzy beverages in India. Coke re-entered the dairy category in January with its flavoured milk brand Vio.

"The company needs to diversify into more categories here other than sugary carbonated beverages, as sales of soft drinks in India is following a different trajectory than in other markets," said Arvind Singhal, Founder and Chairman of retail consultancy Technopak. "Coke's rival PepsiCo has done reasonably well by building a successful food business." At present, fizzy drinks account for less than 25% of PepsiCo's global revenues. Earlier this

"While Indians in their thirties and above are shifting to healthier beverages, children are still consuming soft drinks," said nutritionist and author Pooja Makhija. "However, as they are wellexposed to what's happening around them, they will also realize the health concerns of consuming colas soon." Apart from a growing negative perception of sweetened beverages, increased taxation of sugary drinks in many markets, including India, have led beverage companies to pass on the extra cost to consumers, making their products dearer in pricesensitive markets.

‘Ojasvita’ -health drink launched by Sri Sri Ayurveda

he health drink – Ojasvita is a consumer product launched by spiritual guru Sri Sri Ravishankar company, Sri Sri Ayurveda. The brand ambassadors of this health drink are Olympic silver medallist PV Sindhu and the Indian Badminton team, Chief National Coach – P Gopichand. Ojasvita is available in different flavours namely vanilla, strawberry, mango, chocolate, and Ragi was unveiled by PV Sindhu recently. In the year 2003, Sri Sri Ravishankar stepped into the FMCG market with his company by the name of SriSri Ayurveda (SSA) which mainly focuses on Ayurvedic products. SSA has various categories of products which caters to the market target audience. Breakfast cereals, spices, oil, personal and dental care, health drinks, oil, cookies and ready-to-cook items, are some of the products in the market. The company plans to launch products for personal care and home care segments in this

financial year. The FMCG sector in India is dominated by few Indian and multinational companies, but the industry is now witnessing entry of entrepreneurs of the spiritual ranks – the Indian baba (spiritual preacher). These latest entrants like Baba Ramdev and Baba Gurmeet Ram Rahim Singh have successfully managed to build strong consumer base and market share. With the added advantage of being spiritual preachers, they use the ‘Make In India’ concept to the fullest and other marketing strategies have enabled them to achieve a successful run in their venture. Patanjali – Baba Ramdev’s company is leading with a strong market presence by its tie-ups with several departmental stores. Sri Sri Ayurveda (SSA) has yet to establish their network for growth and sales of their products. By 2017, SSA plans to open 2,500 outlets and at present sells its products through 600 authorized stores.

PepsiCo sued over Naked juice claims again

he Center for Science in the Public Interest (CSPI) has sued PepsiCo for misleading marketing messages made by its Naked Juice brand. CSPI is concerned that the brand is duping consumers into believing they are primarily drinking "the healthful and expensive ingredients advertised on Naked labels, such as berries, cherries, kale and other greens, and mango The claims of misleading messages surround Naked's positioning as a healthy, "no sugar added" beverage while containing more sugar than a

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can of Pepsi. CSPI also said Naked's marketing was misleading because it emphasized certain ingredients on its packaging while the main ingredients were "cheap, nutrient-poor" juices. But as the FDA reconsiders its definition of "healthy", particularly taking into account high sugar levels of food and beverage products, more labels could be considered misleading. Taglines for the Naked Juice brand include "just the healthiest fruits and vegetables." If the product's sugar levels exceeds a certain level, that could negate those health claims and force PepsiCo to rethink its marketing strategy for the brand. PepsiCo has already been through litigation with this premium juice brand. In 2013, the company settled a class action lawsuit for $9 million after prosecutors accused the Naked Juice brand of falsely advertising some of its products as "all natural" and non-genetically modified.

Vol. 9, Issue 06 - November - 2016

Beverages & Food Processing Times

Vol. 9, Issue 06 - November - 2016

COVER STORY

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

Horticulture boon for

mall farmers across India reaped a bumper crop of fruits and vegetables in 2015-16 defying a widespread drought. India’s horticulture output crossed a record 283 million tonnes, shows the third advance estimate recently released by the agriculture ministry.

www.agronfoodprocessing.com

hange your thoughts and you change your world……….’’ So Trump….defies all the exit polls and becomes the President of America. Many are happy but a lot are wondering what has happened. Coming to our country, we cannot use our Rs. 500 and Rs. 1000 anymore, leaving so many people in brink that they do not know what to do…lines in the banks are overwhelming, queues in post office is knee-breaking…..Common man is in anguish. But no doubt this step at the same time is important to keep tabs on the black money circulating within the country. Aiming to boost growth of food processing sector, the government has claimed that all 42 sanctioned mega food parks would be operational within the next two years and announced plans to set up 500 cold chain projects to reduce post-harvest losses of fruits and vegetables. Union Food Processing Industries Minister Harsimrat Kaur Badal said the government would soon sanction 100 new cold chain projects and has decided to set up 500 cold chain projects across the country and also stressed on the need for establishing small agro- processing clusters at the producing centres. After Pepsi going the healthy way and introducing stevia based Colas and drinks, Coca Cola is following its footsteps; Coca-Cola is moving swiftly to cut sugar levels in its soft drinks, hoping to bring back consumers who are spending less on impulse purchases and turning to healthier diets. Also sales at the world’s largest beverage maker slumped in the July-September quarter in India and were a drag on the company’s better-performing markets in the Asia Pacific region. The Indian Beverage Association (IBA), which represents PepsiCo and Coca-Cola, are 'disappointed' at the re-categorization of aerated drinks in the luxury category under the GST rate slabs announced by the GST Council. Although the colas are going the healthy way but still this tagging could bring the beverage industry in grave danger because of such an adversarial tax approach. Existing applicable tax rates on fizzy drinks average 30-31 per cent. If there is an additional cess on the category over and above the 28 per cent GST rate, it's going to have a severe impact, as that will lead to consumer price hikes of as much as 20 per cent and kill the industry. The GST has a four-tier structure of 5%, 12%, 18% and 28% now, which would be in place as part of the new tax regime that will kick in next year. While massmarket home, personal care and food products are expected to fall in the 5% bracket, premium products are expected to fall in the 28 per cent bracket, which could come as dampener for companies, who've been premiumising their portfolios. The 12 and 18 per cent tax rates have been declared as standard rates, which could see mid-priced products across the FMCG spectrum from soaps to detergents, hair oils to toothpastes fall in these brackets. Foodgrains and essential items such as milk will not attract a duty in the new regime. In order to reduce rejections faced by exporters of products made from fruits and vegetables, India has put in place a set of quality control rules in cases where importing countries ask for such kind of a certification. Exports of processed food items such as jams, chutneys, pickles, canned and frozen fruit and vegetables, fruit cereal, squashes and synthetic beverages will soon be subject to quality checks and inspection by the government before they leave the country. Hygiene and quality is increasingly becoming a common concern for milk and milk products which is consumed by all age groups. 70% of the milk production pertains to unorganized sector. India being the largest producer of Milk at 146.3 million tonnes/ day demands specified guidelines for the segment when it comes to health. Stainless Steel has emerged as an alternate material for various usages in the dairy sector and approximately 8000-10,000MT of Stainless Steel is used for storage, processing and transportation equipment’s every year in India. CODEX, the international food standards under WHO, has also recommended stainless steel as a preferred material for storage of food and transportation. Indian Dairy Association (IDA), the apex body of the dairy industry in the country, stressed on the need to enhance the usage of stainless steel. India has mixed expectations on trade with a Donald Trump presidency. He has a clear position on existing and proposed multilateral trade agreements. After loudly denouncing the ambitious Trans Pacific Partnership between the US and 11 other Pacific Rim nations, chances of the mega trade deal being ratified now look slim. The US might also renegotiate the North American Free Trade Agreement, which Trump claims has cost the country hundreds of billions of dollars’ worth of investment and took away millions of jobs. Most of these jobs were in the manufacturing sector, which Trump is electorally committed to strengthening.However, US is also expected to actively bring down its trade deficit, which would have its own impact on India. America is our second largest trading partner and largest export destination, with total bilateral trade at $109 billion a year; both sides are committed to increase this to $500 billion. Of this, merchandise trade was $62 billion in 2015-16, with exports to the US at $4.3 billion and imports $21.8 billion. Let’s see what the 45th American President’s plan is for India, in terms of trade…..till then we can only anticipate.

However, the story is not just about a record harvest during a drought year—primarily due to better access to irrigation—but also a structural change underway in Indian agriculture where farmers are moving toward high-value horticulture crops. Being short-duration crops, and as they can be grown in very small plots of land—say one-tenth of an acre—farmers now prefer to grow more vegetables. These crops ensure a quicker cash flow, unlike say, pulses, which may take more than six months from sowing to marketing. While 2015-16 marks the fourth straight year of horticulture production outstripping foodgrains output, the other story is that the horticulture boom is spread across the country, and not limited to the erstwhile foodgrains-based green revolution states like Punjab, Haryana and western Uttar Pradesh. States like Tamil Nadu, Telangana, Maharashtra, Madhya Pradesh, Karnataka, Gujarat, Bihar and Andhra Pradesh are among leading fruit growers in the country. For vegetables, states in the top 10 list include West Bengal, Bihar, Gujarat, Karnataka, Madhya Pradesh and Odisha. The Real Revolution in Agriculture Two contentious issues always crop whenever there is an attempt to discuss the state of the Indian economy. The first is about the crisis confronting Indian agriculture. The more impassioned liberals point out how thousands upon thousands of farmer suicides reveal the rot within and how the benefits of liberal economic policies have never reached farmers. The more reasoned economists talk of low productivity, lack of market access and low returns hurting Indian farmers. The second contentious point is about the poor getting a raw deal. Much data is bandied about to "prove" how malnutrition is rising amongst the poor. Falling per capita availability of food grains and pulses is shown as decisive proof of this scourge. There is a bit of truth in all this. But there is also a lot that presents a slightly contrarian view. For the fourth consecutive year, production of horticulture outstripped production of food grains in the country in 2015-16: 280 plus million tons compared to 250 plus million tons. The message is very simple: farmers seem to be growing more fruits and vegetables and possibly using better technology that has improved yields. Of course, the problem of access to markets remains as intractable. Lack of cold storages and a direct interface with urban consumers means farmers rarely get the returns they should via horticulture. Two other "agricultural activities-dairy and poultry farming- too have registered phenomenal growth rates in the 21st century. Dairy farming is a testimony to the success of the cooperative movement in India while the growth in poultry is due to the increased appetite of ordinary Indians to eat chicken and eggs. Without a shadow of doubt, this represents a quiet revolution in Indian agriculture that is not often talked about or debated. The Indian farmer has been smart enough to both expand and diversify his sources of income. It is the state that has failed the farmer by not providing the right infrastructure and market access. This phenomenal growth in horticulture, dairy and poultry farming also has deep implications on the diet of the ordinary Indians, and the debate about persistent malnutrition. If you go by per capita consumption of food grains and pulses, it would be easy to reach a conclusion that poor Indians are suffering from more malnutrition than before. But that is simply not true. It is just that rising incomes

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ha e helped even poor families to change their diets and perhaps imbibe more nutrition than before. Look at horticulture. Between 1991 and 2014, the population of India grew by more than 30%. Horticulture output in the same period grew by more than 200%. Surely it would be physically impossible for only rich and middle class Indians to consume so much more of vegetables and fruits? The fact is, poor families have been moving from almost pure food grains diet to a more varied one that includes vegetables and fruits. Not to forget milk, chicken and eggs. Per capita availability of milk has increased by more than 100% in the last two decades. Per capita consumption of eggs has grown from 5 a year in the early 1950s to about 60 a year now. Something similar has happened with broiler chicken. Unless you are a diehard pessimist, it is difficult to ignore this revolution in agriculture as well as diets of ordinary Indians. Of course, despite their willingness to experiment, expand and diversify, farmers in India continue to be let down by governments. The phenomenal growth in horticulture, dairy and poultry farming has deep implications on the diet of the ordinary Indians, and the debate about persistent malnutrition Is horticulture Indian farming’s bright spot? Where is the growth coming from, or where are the horticulture hotspots in India? An analysis of statewise production figures shows that three statesMaharashtra, Andhra Pradesh and Uttar Pradeshgrew nearly a third of all fruits in India. For vegetables, Uttar Pradesh, West Bengal and Bihar contributed nearly 40% to India’s production. Where is India’s flower basket? Tamil Nadu, Kerala, West Bengal, Madhya Pradesh and the tiny state of Mizoram. The story in all of this is that Indian agriculture has moved beyond the green revolution states of Punjab, Haryana and western Uttar Pradesh— India’s foodgrain basket. Also, horticulture production is spread out across states, except for, among others, apples in Jammu & Kashmir and grapes and in Maharashtra. This means that small farmers across the country are sharing the gains of horticulture’s success. Consecutive droughts and freak weather in 2014 and 2015 dented India’s foodgrain production and worsened rural distress. For farmers, the weather woes came on top of a drop in prices of key crops like rice, wheat, cotton and sugar. But one sector that escaped the weather shocks--if not the price drops--is horticulture. Production of fruits and vegetables overtook India’s foodgrain production by a whopping 31 million tonnes in 2014-15 (284 million tonnes against 253 million tonnes). This was the third straight year when horticulture output outstripped

Vol. 9, Issue 06 - November - 2016

COVER STORY

UP, Maha, Bengal, Bihar & Rest of India that of foodgrains. As the graph below shows, foodgrain production dropped in drought years (2002, 2004, 2009, 2014), while horticulture production was either unaffected or stayed on its upward growth trajectory.

How did the sector manage this feat? Are fruits and vegetables more resilient to drought than say rice and wheat? A recent report, Horticultural Statistics at a Glance, 2015, released by the agriculture ministry (on 31 December), and previous reports from the ministry shows the structural change under way in India’s farm sector. These numbers show that most horticulture crops are grown with assured irrigation and, therefore, are more immune to monsoon deficits. This varies from 71% of area irrigated for tomatoes to 86% for potatoes. Eight vegetables that make up 74% of the total vegetable production in the country have 73% access to irrigation. In comparison, only 50% of the area under foodgrains has access to irrigation. Barring wheat, which is an irrigated crop, irrigation access varies from 16% for pulses to 59% for rice.

There is no denying that higher incomes have led to a diversification of diet from cereals to fruits, vegetables, meat and eggs and this seems to be driving demand, but data on horticulture production needs to be on a firmer footing, said Himanshu, Associate Professor of economics at Jawaharlal Nehru University, Delhi. “The data is suspect as crop cutting experiments (for estimating production) are only done for field crops like potato and onion, while the rest of the production is poorly estimated,” he adds. The agriculture ministry admits the challenges. Since vegetables are grown in small plots, or in the back of houses, they do not have a single point of harvesting, making assessment difficult, noted the Horticultural Statistics report. In 2013-14, the ministry discontinued the earlier methodology and replaced it with what is known as CHAMAN (coordinated programme on horticulture assessment and management using geoinformatics). This uses a combination of remote sensing technology, sample surveys and market arrivals to estimate horticulture output and area. Hopefully, the new estimation methodology which is piloted in six states now, will help better understand the changes under way in Indian agriculture and how the farmer undertook that journey. But estimates apart, the flip slide to the success story of horticulture is that farmers have been regularly affected by price dips, especially during the harvest season of onions and potatoes. For instance, onion prices plummeted to Rs.7.5 a kg earlier this year in the wholesale market in Lasalgaon, Maharashtra, due to higher arrivals of the late Kharif crop. In August last year, well after the harvest season, prices shot up to Rs.60 a kg in wholesale markets on fear of drought and lower supplies.

Another positive for horticulture is that fruits and vegetables are mostly grown by marginal and small farmers (with less than 2 hectare of land). This means that resource-poor farmers are likely to have benefitted most from the growth in horticulture sector. More so, because the value of the horticulture output grew more than double compared with all other crops put together in the four years between 2008-09 and 2012-13. Fruits and vegetables are grown in less than 5% of the country’s gross cropped area, compared to over 63% of the area used to grow food grains. What drove the growth of horticulture sector in India? Better incomes, urbanization and higher consumption of fruits and vegetable seem to be driving the demand which is addressed by small farms. Consumption data from the National Sample Survey Organisation (NSSO) shows that while monthly consumption of cereals per person

pack houses—for grading, sorting, pre-cooling and packaging the produce extending its shelf life— against a requirement of about 70,000.

in rural areas declined from 13.4 kg in 1993-94 to 11.2 kg in 2011-12, consumption of vegetables went up from 2.7 kg to 4.3 kg during this period.

The drought is still there and so being the fear of a lower harvest, but the price dips and hikes imply that farmers are selling it dirt cheap after harvest, and traders are reaping benefits during the lean months. It happened with potatoes, when in April last year farmers in northern India left their crop to rot in the field as prices dipped to a measly Rs.2 per kg after a bumper harvest. This means horticulture farmers need better access to markets, facilities like warehouses and cold storages, and credit to help them better manage price risks and avoid distress sales. Just drought proofing often through private investments by farmers themselves isn’t enough. Horticulture hotspots of India Horticulture has emerged as a bright spot in Indian agriculture by defying consecutive years of crippling drought and registering record production last year. Better access to irrigation and higher demand from consumers pushed small farmers to grow more fruits and vegetables. Production of horticulture crops overtook that of foodgrains for the fourth

At present, there are less than 10,000 reefer (refrigerated) vehicles, while the country requires more than 62,000.

straight year in 2015-16—282 million tonnes compared to 252 million tonnes. Vegetable prices spike, despite bumper harvest Two successive years of drought had spiked food inflation in India, with pulses and vegetables contributing largely to higher retail prices. While production of pulses dipped by 14% between 2013-14 and 2015-16 leading to higher prices, the rise in vegetable prices comes as a surprise. A bright spot in Indian farming was production of horticulture crops such as fruits and vegetables, which rose consistently over the past few years. Small farmers reaped a bumper harvest of 282.8 million tonnes in 2015-16, despite a crippling drought primarily due to better access to irrigation. Also, 2015-16 was the fourth straight year of horticulture production outstripping output of foodgrains. Despite the higher production of vegetables, which rose from 162.9 million tonnes in 201314 to 166.5 million tonnes in 2015-16 the highest Indian farmers ever produced vegetables prices rose by over 14% during June and July this year. The problem is that the bumper harvest is not reaching the end consumer due to lack of efficient supply mechanism, said Pawan Kohli, Chief Advisor at the National Centre for Cold Chain Development (NCCD), a think-tank under the agriculture ministry. “Think of the problem this way, we are capable of handling only 60% of the produce. The rest is going waste,” Kohli said. The images of an inefficient supply chain are stark. A month ago, farmers in Maharashtra were forced to sell onions at Rs.1 per kg when consumers in Delhi were paying over Rs.25 per kg. Desperate farmers in Karnataka had to abandon their tomatoes by roadside earlier this year as wholesale prices tanked. There’s more. Last year potato farmers in Uttar Pradesh, the largest producer of the tuber, left the harvested crop to rot as prices crashed. According to Kohli, the solution is to create more near-farm integrated pack houses and induct refrigerated vehicles to transport the produce to the consumer. “Instead, what we have been doing is constructing warehouses mindlessly without thinking that tomatoes cannot be stored and must reach the consumer within three weeks of harvest,” Kohli said. For instance, India has just 250

Beverages & Food Processing Times

“Our focus should be on creation of pack houses, refrigerated transport and ripening chambers instead of large cold storage and warehousing projects,” Kohli said, adding, “Creation of a cold chain with post-harvest management infrastructure will empower farmers to spread their sales to new geographies.” This will have multiple benefits: Bring better value to farmers and reduce food loss, besides lowering inflation. “Efficient post-harvest management, while extending the marketable life of fresh produce, can have a transformational impact on how farmers access and interact with markets,” Kohli said. Pravesh Sharma, a former top official with the agriculture ministry, who runs a start-up called Sabziwala that supplies fresh produce from farmers to consumers, agreed that the supply chain is inefficient and fragmented. “Traders often play the market by creating artificial shortages. This could be as simple as stopping four trucks of onions outside Delhi can drive prices up,” Sharma said. “The government has failed to create a competition to these informal cartels who trade in cash without any traceability.” Sharma added that India needs to recreate the Amul experience (with milk co-operatives) for fruits and vegetables. “So far cold storages have only benefitted potato traders. The government needs to incentivize aggregators and reduce mandi (wholesale market) transaction charges that go as high as 12%.” Conclusion However, increased production of vegetables has failed to cool down prices in June and July, retail prices rose by over 14% year-on-year. This is due to inefficiencies in the supply chain and a lack of post-harvest management. India has built cold storages for potato but not a network of pack houses and refrigerated vehicles to transport the harvest quickly to markets. The result is that while farmers in Karnataka were abandoning tomatoes by the roadside as prices crashed, consumers in Delhi were paying more than Rs.25 per kg. The story of Maharashtra’s onion growers is no different. Price risks are only a part of the problem faced by horticulture farmers. The new breed of highvalue crops are also leading to newer pests like Tutaabsolutaa fingernail sized pest which travelled all the way from Latin America—forcing farmers from five states to destroy their crops last year. Despite these risks, horticulture has emerged as a bright spot of Indian agriculture. Fruits and vegetables are mostly grown by marginal and small farmers (with less than 2 hectares of land). This means that resource-poor farmers are likely to have benefitted most from the growth in horticulture sector. More so, because the value of the horticulture output grew more than double compared with all other crops put together in the four years between 2008-09 and 2012-13.

Vol. 9, Issue 06 - November - 2016

CHOCOLATE NEWS

Mondelez employees visit Ghana to learn more from cocoa communities

rom eleven countries of the world, 15 employees of Mondelez International are ready to participate in “Joy Ambassadors Programme” to learn and serve in cocoa-farming communities in Ghana. In the two-week duration programme, the employees will share their diverse business skills with the farmers, who in turn will speak to them about the challenges and opportunities for securing a sustainable cocoa supply. Mondelēz International’s Cocoa Life Programme, Country Lead, Mrs Yaa Peprah Amekudzi, spoke to the volunteers at the orientation session in Accra. The Ambassadors would visit three communities in Sekyere-East District of the Ashanti Region. She said volunteers will be working along with cocoa farmers to understand the challenges faced by them. “And through their service, they will help accelerate the impact Cocoa Life is making,” The programme in its third year would boost the Cocoa Life communities, as many bright and zealous employees of the company explore their untapped talents. This programme is essential, as it focuses on growth, well-being, and create a positive impact on the future generations. The Ambassadors are expected to train the cooperative and community leaders to develop their business management skills which will

further enhance cooperatives’ engagement, participation, collaboration. The Country Lead said the programme is being funded by Mondelēz International with Volunteer Service Overseas (VSO) as an implementing partner. The company has distributed 500 spraying equipment to households and yet there are many more to be distributed. Mrs Yaa Peprah Amekudzi said households are being provided with enhanced food security and nutrition through the cultivation of food crops. “We have also established a 100 plus women-led enterprise groups in the communities we operate.” There are plans to launch mobile clinic in these communities in the next year that will provide right health care delivery to the people. 2016 Joy Ambassadors offers wide range of skills, from research and development, marketing, manufacturing to finance and law. The Country Director, VSO, Mr. Sanjay Awasthi praised the management of Mondelēz International for their cooperation and support in this programme which creates a huge impact on the communities. He said VSO brand has been organising activities in the areas of governance, active citizenship and secured livelihoods. The Ambassadors were oriented on the Ghanaian culture, values, and belief systems, health, safety and security in the communities, they would engage with.

Nestle to Launch premium chocolate Alpino

estle India, is readying its foray into premium chocolates with the launch of Alpino bonbons, an international brand in the company’s portfolio since the 1950s. The chocolates will hit the market shortly, just ahead of the festival and gifting season, says Nikhil Chand, General Manager, Chocolates and Confectionery, Nestle India. “We want to be a significant player in premium chocolates,” says Chand. Nestle is against formidable competition with Mondelez, with its Cadbury brand, controlling a major chunk of the market, and also against premium imported brands such as Lindt. Nestle claims a 15 per cent share of the Rs7,500-crore market for chocolates, though in wafers and white chocolate it commands a 64 per cent share. Chand, who joined the chocolate business straight out of IIM-A in the late 1990s, and jokes that he has chocolate in his veins, says Nestle will be innovative in its marketing of its premium range. There won’t be mass media advertising for the initial 40-city launch, but it will rely heavily on digital media. “We will work with chocolate bloggers, do personalised marketing with premium consumers, have experiential sessions this festive season and offer something unique and different from competition than just do classical marketing,” says a cherubic Chand to media visiting Nestle’s largest chocolate making facility in Ponda, Goa. Chand says Nestle has spent time in crafting the right product for the Indian market. While the

Beverages & Food Processing Times

brand will be the global Alpino, there will be local innovations. “We have expertise in three things: chocolate, wafer baking and the ability to combine both of these. So, we gave it to the tech team to see if they could combine our over 100 years of chocolate making into something unique.” More launches with imports will follow under Alpino, he promises. Bitter chocolates bars, 70 per cent dark chocolates et al will be among the launches. Chand avers even in the mass end of the market; Nestle does have premium offerings. He points to Munch Nuts, a Rs 20 bar which it launched earlier this year. “We put too many labels as marketers. Putting on a consumer’s lens, for somebody who buys a Rs5 Munch regularly, a Munch Nuts is also premium. It’s not premium in the classical sense.” As a market challenger, Chand says Nestle will continue to leverage unconventional strategies. It recently released a two-minute Munch Macha music video with Shruti Haasan and Shankar Mahadevan, which has already seen two-million hits. It has a tie-up with Paytm where young buyers of KitKat receive mobile money on a purchase and a tie-up with Amazon for this festival season where KitKat buyers scratch a card and receive Rs25 in their Amazon account. “Chocolates penetration is very low, about 12-13 per cent. We see a lot of scope for growth. We would like to invest in the right brands, leverage innovation and be unique.

Vol. 9, Issue 06 - November - 2016

FOOD PROCESSING NEWS

Dispute between McCormick and To boost supply chain Kohinoor to be fought in London food processing sector, need

more investment

ohinoor Foods (KFL) and McCormick formed a joint venture in 2011 called Kohinoor Speciality Foods (KSF). The venture, majority owned by the $4.5-billion McCormick, would sell Kohinoor-branded products with supplies procured exclusively from Kohinoor Foods. The agreement was for seven years with a locking period of five years.

to McCormick in India. A plant for packaged foods and more than 250 KFL employees were transferred to the new entity. Kohinoor Foods has said neither side can terminate their agreement during the five-year lock-in without a cause, after which it can be ended by either party with a notice of at least 180 days.

ood processing sector need more investment for creating adequate infrastructure and removing inefficiencies in supply chain to boost growth in the sector, industry body ASSOCHAM said.

But now a dispute between a unit of US spices and seasonings maker McCormick& Co and Indian rice miller and processed foods maker Kohinoor Food alleged breaches of a rice supply contract has moved to arbitration in London.

McCormick regards India as a compelling longterm growth market where it expects to accelerate the growth of its Kohinoor business and, with its other joint ventures, more fully participate in the enormous growth potential in this market. The company has invested more than $150 million in India.

The association said that inefficiencies in supply chain, absence of economies of scale, technology up-gradation and quality issues are certain key challenges dogging India's Rs 6 lakh crore worth food processing industry. It demanded that the government should fill prevailing gaps in infrastructure availability.

McCormick is the world’s largest maker of spices, seasonings and flavours, while Kohinoor Foods is among India’s biggest rice trading and packaged foods companies.

"There is a need to lure more investments in infrastructure to bring in more organized sector investments into food processing as currently unorganised sector forms major part with a share of about 42 per cent," ASSOCHAM Secretary General DS Rawat said in a statement.

Kohinoor Foods has alleged that McCormick breached the contract by buying rice from elsewhere, while McCormick contends that Kohinoor Foods is selling rice in the domestic market on its own,. Kohinoor Speciality Foods has entered into arbitration proceedings against Kohinoor Foods (and its promoters) before the London Court of International Arbitration, London. The arbitration proceedings relate to ongoing inter se disputes between Kohinoor Speciality Foods India Pvt Ltd and Kohinoor Foods Ltd. McCormick agreed to invest $115 million for an 85% equity stake in KSF. The agreement included transfer of certain trademarks and a noncompeting undertaking. KFL would sell the brand and the sales and distribution rights of the Kohinoor brand

The US Company “decided to proceed unilaterally to procure rice from some other organisations. This clearly violates the rice-supply agreement as well as business transfer agreement and both have been breached. KFL alleged “huge losses” on account of the joint venture procuring rice from other mills that resulted in its own milling capacity being unutilized and incurring fixed costs. The JV Company had at that time denied that it had “violated any contractual or any statutory obligations with Kohinoor Foods”.

North-eastern states fail to take advantage of food schemes

he Centre has asked the states in the northeast to make use of the various food processing schemes as well as encourage FDI in this sector. Speaking at the ‘Cold Chain Summit-North Eastern Region, 2016’ organised by ASSOCHAM, Special Secretary in the Ministry of Food Processing Industries J.P Meena said while Mizoram, Tripura, Arunachal Pradesh and Nagaland have some proposals for cold chain or food parks Meghalaya so far has not been able to take up any big project and this is the reason why the Ministry has intensified its awareness programmes in the State. The Ministry wants to create processing and preservation facilities in the North East which has a massive product base but lacks greatly in infrastructure for post-harvesting management. Special Secretary, J.P Meena said the Northeastern states, including Meghalaya, can take advantage of the mega food park scheme under which the Centre is providing grants up to 75 per cent of the total project cost. There is also a scheme for creating small processing clusters for which only 10 acres of land is required”. Also commenting on the State’s move to go for organic

farming, he said Meghalaya will have to spend lot of money if it wants to be as successful as Sikkim and the State government has to take care of the market aspect from the beginning if it wants to be a successful organic state”. Union Minister of State for Food Processing Industries Sadhvi Niranjan Jyoti called for introduction of foreign direct investment (FDI) that will prove to be very beneficial for farmers and the agriculture sector in the North East. The NDA government at the Centre has initiated several projects in the region, and hence there is a need to set up more processing units so that agricultural produce is not spoiled. “The Centre wants to create a situation in the country where the produce of farmers should be processed here and later exported to different countries,” she said. Rajya Sabha MP from Shillong Wansuk Syiem also spoke on the occasion and urged the State Government to take advantage of all the schemes. P.W Ingty, Additional Chief Secretary, Department of Commerce and Industries, said Meghalaya is a hub of various agricultural products and it has the potential to be a food hub.

Government secures 3740.47 metric tonne pulses

he government agencies have procured 3740.47 metric tonne pulses as on October 2 during ongoing Kharif Marketing Season (KMS). The Central government has directed FCI and NAFED to procure kharif pulses from the farmers to ensure MSP for their crops. The agencies have set up 417 procurement centres in pulses producing states to ensure their reach to the farm gates for procurement of Moong and Urad. More centres will be set up if required on the arrival of Tur crop. So far, FCI has procured 1075.34 metric tonne and NAFED 2665.13 metric tonne pulses since the

arrival of kharif pulses during ongoing KMS 201617. The government has set up the procurement target of 50,000 metric tonne kharif pulses during current KMS for its buffer stock.

He pointed out that just over two per cent of annual production is processed in India, an abysmally low figure when compared to countries like Malaysia,

US and China, where around 83 per cent, 65 perc ent and 23 per cent of produce is processed, respectively. "Ensuring a more efficient supply-chain network to boost linkages between food processing industries and farmers, promoting crop planning, extending advisory to farmers to produce top quality processed food, promoting agricultural export zones, encouraging contract farming, developing robust cold storage infrastructure and other related factors can help drive growth and development of food processing industry," the association said. On challenges faced by the industry, ASSOCHAM said that achieving economies of scale to increase output is constrained due to proliferation of unorganised players in the processed food segment. "Small scale of most food processors in India prevents any timely up-gradation of technology, which is vital to improve quality of product," it said.

India entices French food companies

ood Processing Minister Harsimrat Kaur Badal has asked French food companies to invest in India and said 100 per cent FDI in marketing of food products offers vast opportunities for the global firms.

has taken a number of policy decisions to spur vibrant growth in the food processing segment. With such a progressive policy outlook, we will offer full support towards new collaborations and greater investment," she said.

During her visit, she met key industry players in France to discuss investment and collaboration opportunities between India and France in food processing, food technology and retail industries, industry body CII said in a statement.

"The French food companies expressed interest in doing business in Indian during the interaction with the Minister of Food Processing," CII said.

Speaking at the Fourth Edition of 'France-India Agribusiness and Food Processing Industries', Badal stressed on the need for enhanced cooperation between India and France in this sector, as with increasing disposable income and changing consumer preferences in India, retail and e-commerce are booming in the food segment and this is where the opportunity lies. "Over the past two years the Government of India

Badal interacted with top food companies in France, sharing with them the huge business potential in India's food processing sector and encouraging the French companies to explore India as an investment destination. Badal has also invited the companies and various associations to participate with their delegation on the occasion of the World Food 2017 - a three day flagship event being organized by the food processing ministry.

Minister urges to provide resources to farmers and retailers

hy is the government opposed to FDI in the multi-brand segment of the retail sector? Commerce and Industry Minister Nirmala Sitharaman replied, “My answer is not yet,”

foreign investment in this segment in its election manifesto.

Foreign direct investment (FDI) in multi-brand retail trading cannot happen before farmers and retailers are provided enough resources to face market competition.

In June this year, the government had allowed 100 per cent FDI under government approval route for trading, including through e-commerce, with respect to food products manufactured in the country.

The previous government had cleared UK-based Tesco's proposal in multi-brand retail.

Issues of last-mile connectivity such as lack of back-end infrastructural support, adequate credit and financial inclusion of farmers and traders remain, Sitharaman said.

On India’s existing free trade agreements (FTAs), Sitharaman said the government had initiated the process of reviewing them.

If those conditions were fulfilled, then Indian companies would perform well, creating ‘several Walmarts of its own’.

A large section of domestic industry had suggested the trade pacts did not help boost India’s exports, but rather, they led to increasing imports.

India’s current FDI policy permits foreign players to hold 51 per cent stake in an Indian company, subject to government approval.

India has implemented these agreements with Asean, Japan, South Korea and Singapore, among others. It is also negotiating similar pacts with several regions, including the European Union, Australia, New Zealand and Canada.

However, the Bharatiya Janata Party had opposed

Beverages & Food Processing Times

Vol. 9, Issue 06 - November - 2016

TRADE NEWS

Brand love is a concept that Indian grape exporters happy extends across demographics as EU agrees to retain residue levels for 2 years

rand love is a concept that extends across demographics, with similar portions of consumers in various groups reporting "loving" â&#x20AC;&#x201D; rather than simply "liking" â&#x20AC;&#x201D; their favorite food and beverage brands. All manufacturers, regardless of their target customer, have the ability to evoke a sense of "love" as a group's "favorite" brand.

these large legacy brands among their favorite products, according to the Foodmix 2016 Brand Love Survey.

Legacy brands offer a level of familiarity and comfort that startups often can't rival, including among younger consumers. But startups and smaller brands that focus on health-related benefits also made their way into respondents' favorite brands.

ndian grape exporters can now heave a sigh of relief. The European Union (EU) has agreed to retain the residue levels of chlormequat chloride (CCL), a plant growth regulator at 0.05 ppm (papers per million), for a period of two years. In August this year, EU had proposed to change the pesticide residue levels in grapes to 0.01 ppm causing unrest among Indian exporters.

The survey identified three tiers of qualities that make food brands consumers' favorites: price/value, taste, freshness, convenience and consistency in the first tier; personality traits like "authentic," "fun" and "exciting" in the second tier; and health-related claims like high-protein, low-fat and eco-friendly in the third tier.

It simply needs to embody the right characteristics that the target demographic associates with products they "love." The difference between "loving" and "liking" a brand often comes down to high-quality products and positioning and the emotional qualities a brand evokes in consumers, such as "authentic" and "fun." While health-related claims continue to be important to many groups of consumers, in general, these and other functional qualities are more likely to appear across both "liked" and "loved" brands. While many experts and consumers have predicted the downfall of major food and beverage brands as startups take over more of the total market share, an overwhelming number of consumers still name

If a manufacturer wants its brand to be a beloved favorite, the company will have to do more than pursue health claims and functionality. It should also consider establishing the brand's personality and emotional connectedness to consumers to achieve "brand love" status. The power of brand love is visible in both good and bad times, the latter arguably being more important. Blue Bell has developed a loyal following over the years. These consumers are so loving that despite two recalls in the past couple of years, including one that shut down production for months, many still demanded the brand's return to stores and returned to regular purchasing once Blue Bell resumed distribution. Often this kind of massive recall can be destabilizing for a food or beverage brand, especially when food safety and public health are involved

According to Jagannath Khapre, President, All India Grape Exporters Association, both the exporters association and the Maharashtra State Grape Growers Association had followed up the issue with APEDA on a regular basis and APEDA took up the issue with the Union commerce ministry. Subhash Arve, President, Maharashtra Grape Growers Association, said that EU has agreed to retain the levels for a period of two years and the attempt from India would be to retain these CCL levels for a period of at least 5 years.

Beverages & Food Processing Times

In 2010, Indian grape exports had faced a setback, with EU reluctant to accept Indian table grape consignments as chlormequat chloride â&#x20AC;&#x201D; a plant growth regulator was detected in excess of the prescribed maximum residue level (MRL). In 2009, EU had come up with new regulations on pesticides, raising the chemicals to be monitored from 98 to 167. Unaware of the changed rules, Indian exporters who did not meet the new standards faced had rejection. Indian grapes began to find favour after 2014 when a 1.92 lakh tonne of grapes were exported by Indian traders to around 94 countries. Of this Europe and the UK together accounted for the largest share of 65,000 tonne-75,000 tonne. According to Khapre, Indian exporters are seeking a five-year period from EU to ensure that the existing residue levels in the soil completely go down. CCL as a chemical is not hazardous and is used by grape farmers as a plant growth regulator, he explained. The European Food Safety Authority has also prescribed 1.06 ppm as a safe level and the existing European regulations state that the residue levels should be around 0.05 ppm, he explained. The detection machines with EU until now have been able to detect pesticides to the level of 0.05 ppm and with advanced technology can now detect up to 0.01 ppm, he said.

Vol. 9, Issue 06 - November - 2016

AGRO PROCESSING NEWS

Post Offices to sell pulses at subsidy rates

inding a solution to the lukewarm response of states in picking up pulses from the central buffer stock, the Centre has decided the selling of pulses at subsidies rates to customers through post offices. The scheme may roll out in the next couple of weeks.

"We have already talked to the postal department and they are keen to start this. To make a beginning, we will start selling chana dal at subsidised prices at some of the post offices since it's still selling at relatively high price," Consumer Affairs Secretary Hem Pande said. An official release of consumer affairs ministry said the inter-ministerial panel while reviewing the availability and prices of essential commodities had suggested that in the absence of government

outlets in states, postal networks should be tapped for distribution. Pande said in the next few days they will work out how pulses in packets can be made available at post offices. "We will see whether our entities can do this. Already one agency, NCCF (National Cooperative Consumers Federation of India), is selling pulses in Delhi through mobile vans," he added. Early this year, the Centre had struggled to dispose of imported pulses since states did not come forward to take them despite government offering the stock at subsidised prices. This year, the buffer stock created with import and domestic procurement of pulses is more than 1.5 lakh tonnes and the Centre is in a comfortable position to start their sale through different government outlets. This is also being an interim arrangement till the time government engages a professional agency to manage the entire buffer stock and its disposal. The government has approved creating 20 lakh tonne buffer stock of pulses.

India- Russia join hands to reduce food loss

howing serious concern over the huge preand post-harvest losses India and Russia are collaborating to set up integrated irradiation centres in India to reduce agricultural losses. A bilateral agreement for cooperation in the development of a network of integrated infrastructure irradiation centres was signed between the Indian Agricultural Association, Hindustan Agro Co-Op Ltd (HACL) and United Innovation Corporation (UIC), a subsidiary of ROSATOM State Atomic Energy Corporation of Russia, on the side-lines of the BRICS Business Forum in the national capital. The agreement is to be implemented through a Joint Venture and aims to set up 25 integrated irradiation centres. It was signed by Bharat Dhokane Pandurang, Chairman of HACL, and Denis Cherednichenko, CEO of UIC. In irradiation, food products are subjected to a low dosage of radiation to treat them for germs and insects, increasing their longevity and shelf life. In India, per estimates, post-harvest losses in food and food grains are around 40-50 per cent, primarily due to insect infestation, microbiological

The state government had approved the bill in April after severe criticism for failing to control the prices of tur dal. "The Centre has raised objections about setting up a special court and the period of punishment.

oland sought partnership with India in agriculture and food processing sectors and offered its expertise in these areas.

"During 2015, bilateral trade between India and Poland amounted to USD 2.2 billion. We have the expertise to handle 95 per cent of our food processing requirements, while India only handles 10 per cent, which holds scope for Polish collaboration in this area," Poland's Deputy President of Agricultural Market Agency Jaroslaw Olowski said. "Polish apples are world famous and we supply one crore apples every year to India, while India can consider increasing mango exports," he said. "We are here to understand the Indian markets, its distribution channels, products and policies of India to strengthen trade which will be combined with sales, besides, exchange of culture activities between Poland and India." Speaking about the strengths of agriculture, dairy and animal husbandry sectors in the European country, Olowski said Poland is among top producers in

he commercial cultivation of Genetically Modified (GM) mustard would be “disastrous” as it would eventually open the doors for multinational corporations to control India’s agriculture, according to noted Molecular Biologist Pushpa M Bhargava. Even environmentalists say allowing the development of GM Mustard will eventually open doors for MNCs to control India's agriculture.

“The wastage of fruits and vegetables alone is about Rs. 60,000 crores annually. Including cereals, meat, pulses and flowers, the annual loss is estimated to be Rs. 2,50,000 crores,” Mr. Pandurang added. He said that there were a few low-level irradiation plants in the country, which are not adequate. “The use of irradiation will make it possible to reduce the loss of onions in India, which currently go bad because of germination and inadequate storage, by 42,000 tonnes per year on average, as well as to reduce grain losses from [the current] 15 per cent to 3-5 per cent per year,” Mr. Cherednichenko said after the signing. In the first phase, seven centres will be set up in Maharashtra, which will begin with the upgradation of the current centre at Rahuri in Ahmednagar district. They added that the irradiation doses are recommended by the International Atomic Energy Agency (IAEA) and the final product is safe.

The Essential Commodities Act to curb hoarding practices and ensure delivery of commodities suggests imprisonment of seven years as the maximum punishment which the Centre wanted to keep. We have agreed to this suggestion," Bapat told.

poultry, fruit, vegetables and honey and can cater to Indian tastes. Tomasz Lubaszuk, Ambassador of Poland, said his country looks forward to augment ties with India, especially in agriculture and food processing sectors. The Embassy lends support to Indian businesses to set up base in Poland and vice-versa. There is great potential for culture and touristic exchanges which is proven from the fact that in the last five years, eight Bollywood films were shot in Poland, opening further scope, Lubaszuk said. India's bilateral trade with Poland has grown almost 7-fold over the last 10 years. India has invested USD 3 billion in Poland, making it one of the most important countries to engage in business, he said. The Maharashtra government is also keen to invite Polish investments and acquire technology from it in the dairy sector, Minister of Animal Husbandry, Dairy Development and Fisheries Department Mahadev Jankar said.

GM mustard will negatively impact the Indian agriculture

contamination, physiological changes due to sprouting and ripening, and poor shelf life.

Maharashtra Pulses bill amended for Centre's approval

aharashtra government is ready with an amended draft of the Maharashtra Pulses Price Control (MPPC) bill for the Centre's approval, minister of civil supplies and consumer protection Girish Bapat said.

Poland seeks partnership with India in agri, food processing

“Our agriculture will be in the hands of multinational corporations like Bayer. We will lose our independence. I think civil society must protest as much as they can,” Bhargava added. GM mustard, if it doesn’t face any public resistance, could become India’s first GM food crop released for cultivation by regulator Genetic Engineering Appraisal Committee (GEAC). An Environment Ministry sub-committee report declared the GM mustard technology safe for

consumption and environment, saying that it does not raise any public health concerns for human beings and animals, but environmentalists are not satisfied and have been demanding that the ministry should make all the documents on the study available. The ministry has put the sub-committee’s 133page “Assessment of Food and Environmental Safety of GE mustard” (AFES) online and invited public comments before the GEAC takes the final decision on GM mustard. Comments can be submitted till October 5. “My general impression, therefore, of this AFES report is that most of the important conclusions that have been drawn, have been arrived at on the basis of insufficient data and inadequate experimentation,” said Bhargava, former and founding Director of the Centre for Cellular and Molecular Biology (CCMB), Hyderabad. The transgenic crop, Dhara Mustard Hybrid-11 (DMH-11) has been developed by the Centre for Genetic Manipulation of Crop Plants (CGMCP), University of Delhi. Currently, GM cotton is the only transgenic crop commercially available in fields. Scientists who were involved in the engineering of the mustard claim it is “benign” and also beneficial for farmers as it is more high-yielding.

Facebook adds food ordering feature

acebook said users in the United States would be able to order food through the Facebook pages of restaurants started recently as part of its efforts to connect users and businesses. Users will also be able to get quotes from businesses,

All suggestions made by the Centre were acceptable to the state, he added. "We will send the draft without any delay. There is no need to worry about high rates pulses during Diwali," Minister said.

Beverages & Food Processing Times

buy movie tickets and book appointments at spas and salons, Facebook said in a blog post. Earlier this month, Facebook launched "Marketplace", a platform that allows people to buy and sell items locally. Facebook, which has about 1.7 billion monthly active users, also said it would add a "recommendations" feature that will allow users to share recommendations on such things as places to eat. Facebook shares were up 0.8 per cent at $129.58 in early trading. Shares of GrubHub Inc, which offers a food ordering service similar to that announced by Facebook, were down 2.4 per cent at $41.07.

Vol. 9, Issue 06 - November - 2016

POULTRY NEWS

Genuine Broaster Chicken enters Surat, Gujarat market

n India-based Food and Beverages franchise management company, Yellow Tie Hospitality Management has introduced the legendary American Heritage Brand Genuine Broaster Chicken (GBC) to the city of Surat, Gujarat. This is the brand’s third outlet in the country, GBC in Surat will one of the international brands to introduce Jain dishes on its menu cards. There is a variety of tasty dishes that the patrons can try like Jain Burger and etc, the brand will soon launch

Banana Burgers as many Gujaratis eat it as an alternative to potato in their food. Founder and CEO, Yellow Tie Hospitality Entrepreneur Karan Tanna, said, “Ever since GBC was launched in India earlier this year, we have managed to garner positive reviews from customers from all walks of life. Our success in Mumbai and Raipur has made the brand a name to be reckoned with in the Indian QSR sector. As part of our brand’s expansion plan, we had already decided to launch one of GBC’s exclusive outlets

in Gujarat, as this state is a prominent food lover’s paradise, and after extensive deliberation, we decided to launch the brand’s 3rd outlet in the city of Surat.” Entrepreneur Karan Tanna, Founder and CEO, Yellow Tie Hospitality and Territory partners – Abhishek Kheni and Satyapal Jhala, Directors Sevan Enterprise Pvt. Ltd., who also happen to be the outlet owners inaugurated the Surat outlet. India is leading in poultry development: Eknath

India is leading in poultry development: Eknath

ith a growth of almost 8 per cent per annum, India is among the leading countries of modern poultry development, Eknath B. Chakurkar, Director, ICAR-Central Coastal Agricultural Research Institute (CCARI) said. “The poultry industry is thinking about welfare of the birds to ensure hygienic food-concepts on par with the industry in the Western world," Dr. Sanjay Gavkare, General Manager (Technical) of Punebased Venkateshwara Hatcheries said. Focusing on the sidelines of the third Association of Avian Health Professionals (AAHP) convention and national symposium on “Poultry Health and Welfare”, both Mr. Chakurkar and Dr. Gavkare said that even though nearly 22 per cent of the country’s poultry industry is still disorganized, it has reached a level-playing field with advanced countries in terms of nutrition and health of birds. To a question about bird flu, Dr. Gavkare replied saying it is a hype that is often blown out of proportion. “The government has taken all the precautions to help the industry; like the temporary ban on birds from Karnataka by the Goa government,” Dr. Gavkare said.

Beverages & Food Processing Times

Vol. 9, Issue 06 - November - 2016

DAIRY NEWS

Motilal Oswal invested 110 cr in Dairy Classic ice creams

arking its second investment in the dairy and milk products space Motilal Oswal Private Equity Investment Advisor (MOPE) has invested Rs 110 crore in Bengalurubased Dairy Classic Ice Creams for a minority stake. It previously invested Rs 50 crore in Parag Milk Foods that went public in May this year. The investment will be made through its India Business Excellence Fund-II and India Business Excellence Fund-IIA. Dairy Classic has a strong foothold in South India through its brand Dairy Day and manufactures 125 variants of ice cream and frozen desserts. Founded in 2003 by a team of professionals who quit their MNC jobs to pursue their passion of making ice creams, Dairy Classic operates through a network of over 15,000 retailers and 5,000 dealers in major cities in South India. It has a state-of-theart production facility in the city with a capacity to produce 30,000 litres per day. The company is planning a production unit over 1 lakh sqft on the outskirts of the city. "With the rise in disposable incomes and improved infrastructure, we see the dairy space has a long tailwind. Consumption of these products is bound to increase with higher incomes. But apart from the space, we also focused on the high-quality management that the Dairy Day team has. The co-founders have worked in large corporates

and are a competent team. This is a value add for us," said Vishal Tulsyan, CEO of MOPE. Recently, the company developed NutriIce Creams — an ice-cream/frozen dessert, rich in Omega-3 fat (vegetarian source), which it says is the first of its kind the country has done in collaboration with Central Food Technological Research Institute (CFTRI) and Oleome Biosolutions. The company offers a complete product basket consisting of cups, cones, sticks, candies, sundaes, take-home packs. Tulsyan said Dairy Day has been growing at a scorching pace of 15% year-on-year over the last few years and has a strong presence in Karnataka and Tamil Nadu. The company is expanding its store footprint in tier-2 and tier-3 cities. "We are growth capital investors. We identify companies in this sector for the long term, not for the next 5-6 years, but for the next 15-20 years," he said. "We want them to double their capacity and reach a revenue of Rs 500 crore by the next 5 years. Their current revenue is over Rs 150 crore." Jagannath M N and A Balaraju, Directors of Dairy Classic, said, "Partnering with Motilal Oswal Private Equity will help Dairy Day to achieve its multi-pronged goals of becoming one of the leading ice cream brands in the Southern India." Ernst & Young acted as the financial advisor to Dairy Classic for the transaction.

Mother Dairy to sell only fortified milk in NCR by year-end

other Dairy will only sell milk fortified with Vitamin 'A' and 'D' in the national capital region as part of its effort to address malnutrition. Mother Dairy sells about 30 lakh litres of milk per day, including token and poly-packed, in the Delhi-NCR and this entire quantity would be now fortified with Vitamin A&D. The company has about 800 milk booths and 400 'Safal' retail stores in the NCR.

be selling only fortified milk in Delhi-NCR," he added. ‘’ The company is taking this initiative as a large part of population is having deficiency of micronutrients, added Nagarajan. The fortification of milk with Vitamin A&D will cost around 25 paise per litre and the same would be absorbed by the company. Also the company would follow the standards fixed by the Food Safety and Standards Authority of India (FSSAI) on fortification of food. FSSAI has developed comprehensive standards for fortification in wheat flour, rice, edible oil, salt and milk. The regulator has made these standards operational at the draft stage only and would issue final notification after making changes based on suggestions from stakeholders.

Mother Dairy Managing Director S Nagarajan said, ‘’we are already adding Vitamin A in our token milk sold at milk booths. Now, We have decided to add Vitamin A & D in both token milk and poly-packed and by end of this year, we will

As per this standards, fortification of salt can be done with iodine and iron, while vegetable oil and milk can be fortified with Vitamin A & D; wheat flour and rice with iron, folic acid, zinc, vitamin B12, vitamin A and some other micronutrients.

Rath highlighted major challenges of Dairy Sector

Parag plans to open 120 to 150 Gowardhan shopees by March 2017

arag Milk Foods plans to open 120 to 150 Gowardhan shopees by March 2017 and has started its pilot in Hyderabad. This Pune-based company has second largest share of India's cheese market, is present in both packaged milk and milk products. Mahesh Israni, Chief Marketing Officer, Parag Milk Foods Ltd stated that Parag plans to transform its existing shops in Maharashtra to the uniform format to be designed under Gowardhan Shoppe on franchise basis and also plans to expand the number of brands it owns from existing four to

total of seven by the end of next year. 'Milk Rich' will be the fifth brand of the company in dairy whitener category. "It will not be just rebranding of the existing Gowardhan dairy whitener. We will be launching an entirely new product of a better quality than the existing one," said Israni. It will be launching its sixth brand in the category of whey products and are about the complete the setting up of a separate factory for whey consumer products like protein mix powder," said Devendra Shah, Chairman, Parag Milk Foods.

New plant to come up in Vizag by Creamline Dairy

top official from Creamline Dairy products, a subsidiary of Godrej Agrovet Ltd, stated that a new plant will be set up in Andhra Pradesh at the cost of Rs 30 crore.

Hyderabad, one each in Madanapalli, Vijayawada, Mandya district (Karnataka) and in Nagpur. We also have a powder plant in Ongole (Andhra Pradesh),"

Godrej Agrovet claimed a majority stake in Creamline Dairy products for Rs 150 crore in December 2015.

After the launch of fortified milk Enrich D – under the Jersey brand which is especially targeted at the health-conscious patrons, he said "We are a strong player in South India. With the new plant we will be able to serve in Odisha too."

The processing capacity of Cream Dairy Products Ltd. is 10 lakh litres milk per day and has market presence in Andhra Pradesh, Tamil Nadu, Karnataka, and parts of Maharashtra. Chief Executive Officer of Creamline Dairy Products, P Gopalakrishnan said, "We are setting up a new dairy plant at Vishakapatnam with one lakh litre capacity. The investment is about Rs 30 crore." Already we have seven factories, two in

"The marketing campaign will begin from October 7 onwards," he said, adding the company was in the process of scaling up its business across various categories as the industry was growing 2530 per cent annually. Creamline Dairy has about 5,000 outlets in South and has about 800 agents in Tamil Nadu alone`.

200 crore investment by Mother Dairy in Maharashtra

other Dairy, the leading milk supplier brand has set aside an investment plan for Rs 200 crore in Maharashtra.

The company will start a new unit in Bhivandi, revamp Nagpur unit and begin the procurement of milk in Marathwada and Vidharbha regions. "We are investing Rs 160 crore in setting up a new unit for milk and value added milk products at Bhivandi near Mumbai. It will have a facility to process 3 lakh litres of milk per day, which can be increased to eight lakh litres per day when fully operational," Mother Dairy Fruit & Vegetable Pvt Ltd (MDFVPL) MD S. Nagarajan told. "We are also renovating Nagpur dairy and setting up network to procure milk from farmers in

Marathwada and Vidharbha regions," he added. The Nagpur unit will soon have a milk processing facility which is likely to be operational by 2017. Nagarajan added that the initiation of milk procurement from farmers has begun in around 50 villages and should cross over to 2,000 villages in Marathwada and Vidharbha in the next three years. Mother Dairy also obtains milk from Gujarat and Punjab regions to fulfil its requirement. It has also launched a premium product – high cream milk that will be available in 500 ml and 1 litre packs, at the prize of Rs. 27 and Rs. 53 respectively.

Government investment to increase livestock production in India

he Indian government set aside over 1000 crore (10 billion) to fund different projects under various programmes run by the union government. This move will provide income opportunities to farmers as well as increase the livestock and fishery production in the country.

ddressing the delegates at the IDF World Dairy Summit in Rotterdam, the Netherlands held between October 17 and October 21 Chairman of theNational Dairy Development Board (NDDB) Dilip Rath highlighted major challenges for the dairy sector and ways to help nourish a growing population in a sustainable way.

experiences relevant to the global dairy sector. There were about 30 participants from India. Rath was invited to address the global dairy community at the prestigious summit. He suggested that the way forward for India's dairy sector includes focus on productivity, livelihoods and sustainability.

Under the blue revolution programme, proposals at the value of INR 436.52 crore (4.4 billion) have been approved, which will bring forth a growth in the production of fisheries and aquaculture.

The summit with the theme, 'Dare to Dairy' kicked off with the key question: how will dairy sustainably contribute to feeding 9 billion people in 2050? Delegates from all over the world met to get familiar with the latest research findings and

The summit ended with the Declaration of Rotterdam which is a comprehensive statement on how the dairy sector is going to respond to the various challenges as set by the SDGs of the United Nations.

For the implementation of various poultry and livestock development programmes, Central government has released 129.82 crore (1.3 billion) rupees to nine states. An amount of 164.88 crore (1.6 billion) rupees has been released for

Beverages & Food Processing Times

vaccination under the Livestock Health and Disease Control programme. For approved projects under the National Programme for Dairy Development, centre has released 239.95 crore (2.4 billion) rupees to 17 States. Under the dairy projects, facilities for processing of 278.6 thousand litres per day (TLPD) and chilling of 93.5 TPLD of milk will be created and 977 Dairy Cooperative Societies formed, said a release issued by the Ministry of Agriculture. All these programmes are intended to double farmers’ incomes and generate employment opportunities.

Vol. 9, Issue 06 - November - 2016

TEA & COFFEE NEWS

Harley foods eyeing to become a Pan-India Snack Company by 2017

aving tasted success in Gujarat, Chairman and Managing Director of Harley Foods Soumiik Mitra is planning for a Pan-India launch of his Harley brand of chips and namkeens (salted snacks). "We are planning to have a Pan-India launch by

professional in the fast-moving consumer goods (FMCG) segment. His Surat, Gujarat-based company has established strong footprints across 12 States in the western, southern and northern parts of the country. Harley's more than 23 variants of chips and salted snacks, which have materialized after extensive re-search on regional tastes and popular flavours, are finding their way across these markets. The snack-maker is now focusing on building markets in West Bengal and eastern India to attain nationwide presence.

2017 and will cover 60 per cent of the domestic market by the next financial year," discloses Mitraa. The Harley Foods chief is counting on his over two-and-a-half decades of rich experience as a

Last September, Harley Foods shot into the limelight with the big-bang launch of its products in Mumbai. Mitraa had roped in top celebrities from the world of film and television to unveil Harley Products in the country's commercial capital.

Maggi reports sustained recovery thereby regaining market share

estlé’s Maggi noodles in India has reported sustained recovery, regaining market share in the country almost a year after it was relaunched following a five-month ban in 2015. "India grew strongly as the Maggi noodles business continued to gain back market share and comparatives turned favourable. The sustained recovery of Maggi noodles in India was also encouraging...Chocolates, driven by KitKat, also did well," Nestle said in a statement. At present, Nestle enjoys 57 per cent market share in the instant noodles market in India as against 75 per cent before the crisis had hit the company. The instant noodles market in the country is estimated at Rs 2,000 crore with ITC's Yippee, Nepal-based

Chaudhary group's Wai Wai and Patanjali Noodles among major players besides Maggi. After a 5-month ban, in November last year, Nestle India relaunched the instant noodles in the market. Earlier this year, Nestle India launched up to 25 products across various categories in a day to fend off competition. The company reported total sales of CHF (Swiss Franc) 65.5 billion for the nine month period ended September 2016. It also cut its outlook for 2016, saying it expects organic growth of around 3.5 per cent for the year, which was earlier pegged at 4.2 per cent.

Global baked snacks to grow at 4.15% CGAR

he global baked savory snacks market is expected to grow at a compound annual growth rate of 4.15% between 2016-

20, driven by stepped-up demand from healthconscious consumers. “The growing popularity of breakfast savory biscuits coupled with promotional activity, distribution and marketing is translating into sales,” said Manjunath Reddy, a lead food research analyst. “Baked savory biscuits are the perfect substitutes for chips, as baked products are considered healthier than fried products.” Researchers said innovations by two of India’s largest biscuit manufacturers — Britannia and Parle — in the savory biscuits category will fuel growth in India during the forecast period. India is the largest biscuit consuming country in the world. The global baked extruded snacks market is expected to grow at a CAGR of 4.26% during the forecast period, researchers believe. Available in different sizes, shapes and colours, baked extruded snacks’ appearance, flavours and packaging are key differentiators for consumers. The availability and low cost of ingredients have helped baked extruded corn snacks manufacturers to invest heavily in expanding the product segment. As an example, the research firm pointed to Puffcorn, a corn meal-based extruded snack that has performed well in the market and is made by companies such as Frito-Lay, Inc. Indulgence in baked extruded rice snacks also is high, Reddy said. He said that nutrition is the key reason behind the consumption of baked extruded rice snacks, as the snacks are made with natural ingredients and do not contain artificial flavours. “The increasing availability of small stocking units in the developing countries in the extruded snacks category will fuel the growth during the forecast period,” Reddy said. “The lower priced packs are consumed as impulse products and widely available in traditional grocery outlets and kiosks. grow at a CAGR of 4.32% between 2016-20.

www.agronfoodprocessing.com

Beverages & Food Processing Times

Vol. 9, Issue 06 - November - 2016

NEWS

Droughts to success story of Phaltan farmers-Govind Milk

ot many brands have a glorious back-story that eventually evolves into their business philosophy. This is the story of Govind Milk & Milk products – The Rajiv Mitra happy makers. (MD Govind Milk) Many years ago, there was a drought-stricken village in Maharashtra called Phaltan. Consecutive droughts had left the farmlands arid and the farmers helpless.

The farmers resorted to dairy farming to make ends meet. But the dairy market in Phaltan was dominated by middlemen which left the farmers with meagre earnings.

free grazing practice to its farmers. Soon the cows wandered freely in open fields, breathing clean air, eating fresh & healthy fodder Govind’s team Sanjeev Nimbalkar Chairman Govind Milk of veterinarians and agro-specialists researched an ingenious fodder technique called ‘Hydroponic Farming’. This technique required minimum water and limited space for producing fodder and involved very low setup cost too. This nutrient-rich hydroponic fodder increased the cows’ milk yield and kept them healthy. The farmers were happy because this technique freed the part of their farmland that they used to grow fodder for their cattle. A milk revolution had begun in and around Phaltan. Govind’s team of veterinary doctors and agriculturists visited nearby villages to educate farmers regarding the various cost-effective ways to breed their cattle. Govind’s symbiotic association with cattle farmers reciprocated in every upgrade of technology or process benefiting the community at large. More and more farmers recognised these benefits and joined Govind’s

The distraught farmers took their plea to Sanjeev Raje Naik-Nimbalkar – heir to the royal NaikNimbalkar family that once ruled Phaltan. He instantly took up their cause and asked the farmers to source their milk directly to him. And thus in 1995 began the happy journey of Govind Milk.

regions. By September 2009, Govind milk & milk products were being sold in the state of Karnataka and by March 2010 in the state of Goa. The sales are rising steadily in these states across various product verticals.

cause. What started as a movement with just a few hundred dairy farmers grew manifold into a revolution of nearly 40 thousand dairy farmers. Govind practices the best procurement and processing systems for milk processing and production of milk products. They have developed a well-planned system that functions perfectly in tandem with cattle farmers for fresh milk procurement. Govind’s manufacturing facility sprawls across a massive 15 acres and is equipped with the latest dairy processing technology.

At Govind we have been witnessing the same for nearly 2 decades. Now it has become a way of life for us. We’re the happy makers. And the chain of happiness is getting bigger and stronger every day.”

The state of the art machinery requires minimum human intervention and helps process a variety of quality milk products like ghee, butter, shrikhand, amrakhand, lassi, skimmed milk powder, etc. Everyday nearly 5.5 lac litres of milked is sourced to this facility of which nearly 2.30 lac litres is sold in pouches while rest is used to make various milk products. In just 20 years Govind Milk & Milk Products has grown leaps and bounds. The sale of milk pouches started in the year 1999 with just 2000 litres of milk being sold per day. The same has risen to over xx lac litres per day by 2016. Govind began its sales operations in Maharashtra by steadily expanding its distribution channels across various

It’s known that happy cows yield happy milk. So it all started at the farms, when Govind taught the

What began as a simple act of kindness turned out to be a revolution that changed the lives of farmers and the face of Phaltan. It’s the chain of happiness that began at the farms and continued to the customers. And that’s what has evolved to become their brand philosophy of ‘The Happy Makers’. When asked about this unique brand philosophy, Mr. Mitra, MD of Govind Milk & Milk Products said, “I believe that when you begin a good deed with all your honesty, it travels ahead with greater intensity.

With steadily rising sales and newer markets in prospect, the journey ahead for Govind is bound to be happier than ever.

Indian FMCG seems bright, to reach $104 billion by 2020

he countries where FMCG markets is wide are China, USA, Japan, European Union and hence the global FMCG market is likely to grow at a CAGR of 4.4 %. Assocham-TechSci Research report has anticipated doubling of India's market for the FMCG sector to $104 billion by 2020 from the current level of $49 billion, growing at an impressive compounded annual growth rate of 20.6 per cent. Adding to the festive sale that leads to an increase in the sales chart. India’s current share in the Global FMCG market is 0.68 % which is set to rise in the next few years

because of various factors like rising purchasing power, high income, change in demographics, changing consumer habits and preferences, expansion of organised retail in tier II & III cities in India, and so on, as per the study in ‘Indian FMCG Market 2020’. ASSOCHAM Secretary General, Mr D S Rawat said, “It is certainly good news for giving a muchneeded consumption boost to the economy". The positive signs of the expected rise are due to increase in share of organised retail, better awareness about health and ethnic products being launched by the likes of Patanjali and lastly steady

economic growth. The global economic growth is facing a slowdown and this offers India the best chance because of better economic conditions. The strong competition between the organised and unorganised players in the market as well as the excellent distribution system are the hallmark of this sector. FMCG in India will grow in the next 5 years because the entire value chain is supported by a strong distribution network. Fast-moving consumer goods is a major contributor to the GDP growth of India. These goods include dairy and food product, household items, drinks,

packaged food products and others. In both rural and urban segments, the growth in FMCG sector can be attributed to the consumption of the various products like personal care, food & beverages, and the rest. The rural consumption growth has surpassed the urban consumption because there has been an increase in the per-capita expenditure in the rural markets. The various government measures such as GST Bill, Food Security Bill and FDI in retail sector will probably have a significant positive impact on the country’s FMCG sector in the years to come.

Govt to further relax FDI

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epartment of Industrial Policy and Promotion (DIPP) Secretary Ramesh Abhishek said huge potential exists in India to attract FDI. The commerce ministry is further relaxing the FDI regime for better investment and over 90 per cent of foreign direct investment in the country is coming through automatic route. The government is implementing a series of transformative actions and policies which are required to realise this potential. Like FDI policies, they were restrictive, but due to FDI India is now one of the most open economies. Even in very sensitive sectors 100 per cent FDI is allowed and under automatic route in most cases. 92 per cent of FDI comes under automatic route now and we are further relaxing the FDI regime," said Ramesh Abhishek. In June, FDI policy in as many as nine sectors was relaxed and that include defence, aviation and food processing. In November last year also, government had opened up 15 sectors including real estate, defence, civil aviation and news broadcasting in a bid to push up reforms. In 2015-16, India has attracted USD 40 d billion foreign inflows. On e-commerce, the DIPP Secretary said that a committee was set up to see ways to promote ecommerce in India.

Vol. 9, Issue 06 - November - 2016

TEA & COFFEE NEWS

Typhoo Tea to launch coffee, drinking chocolate in India

yphoo tea and coffee brand of UK is planning to enter the coffee and drinking chocolate market of India. Apeejay Surrendra Group, with successful tea businesses in India and the UK, now plans to enter the coffee and drinking chocolate market in the country. The company owns Typhoo tea brand in the UK and is already into coffee business there. Karan Paul, the group's chairman, is keen to leverage his

experience in these categories in the UK to foray into India. Typhoo Tea UK owns the 30-year-old Red Mountain coffee brand. The brand extends to drinking chocolate, instant hot chocolate and coffee whitener as well. “We intend to enter into the coffee and drinking chocolate business in India. We are currently

ITC to launch new Coffee flavours

ajor FMCG player ITC has announced to launch two flavours of Gourmet Coffee offering made of Indian and Latin American beans. said Divisional Chief Executive, ITC Foods, V L Rajesh on. “Our aim is to create a premium gourmet coffee experience for discerning consumers. We have achieved this by blending chosen beans from across the world with the best in our country,” added Rajesh.

and Arabica beans from Baba Budangiri hills in Karnataka’s Chikkamagaluru district. Baba Budangiri is popularly considered to be the birthplace of coffee in India where Baba Budan, a legendary holy saint, planted the first coffee seeds that he had brought from Yemen.

carrying out a market survey to gauge the demand for the products among Indians. Our experience with the UK business is expected to help us in India as well. However, we do not plan to extend the Typhoo brand for coffee and drinking chocolate in the Indian market,”said Paul. Typhoo is the second-largest tea packer and the fourth largest tea brand in the UK. Paul said the black tea market was declining while demand for green tea and coffee was increasing in the UK. Black tea consumption has fallen by 8.2% in the UK since 2011, he said. To promote the brand, Typhoo UK has roped in celebrity chef Nigella Lawson as its brand ambassador and will

“We will launch the special coffee beverage in our other luxury hotels across the country during this month,” said Rajesh. Consumers can also buy roasted coffee beans at Rs 800 for 200 grams packet from the company’s food and beverages outlets in its hotels.

Tensions between the two nations have risen after India's recent surgical strike on terror camps in Pakistan Occupied Kashmir.

Tea lattes of the popular coffee brand Starbucks are highly calorific!

While there has been a slow trickle of tea shipments, the tea route to Pakistan is currently via Dubai. "Tea is not being shipped through Wagah border. Merchant exporters have started shipping tea to Dubai wholesale merchants. From there, tea is being shipped to Pakistan, enormously increasing costs at the retail consumer end," said a member of the Tea Board of India.

tarbucks which recently launched their new beverage Citrus Mint Green Tea Latte is found to be highly calorific than bar of Mars chocolate or two cans of Coca-Cola. This is served in a large sized cup; each serving is equal to 470ml and contains 321 calories. The calorie count is extremely high as compared to 2 cans of Coke which is equal to 355ml or a bar of Mars which weighs 58gm. With such high calorie content in this popular beverage consumed by many, health activists fear that it may trigger obesity and other aliments in UK. Kawther Hashem, a nutritionist from health pressure group described the amount of calories in the tea as ‘shocking’. "Coffee shop chains must immediately reduce the amount of sugar in these hot drinks, improve their labelling and stop selling the extra-large serving

sizes." Hashem also added, “The huge quantities of sugar in hot drinks, such as these, can contribute to the onset of obesity, type 2 diabetes and tooth decay and immediate action and responsibility needs to be taken by these companies in reducing sugar levels and introduce healthier alternatives." Starbucks have mentioned the nutritional info about the high-cal tea lattes. A spokesperson from the leading coffee brand Starbucks stated that, “We are committed to helping our customers make balanced and informed choices by displaying nutritional information and providing a wide range of drinks options. Semi-skimmed milk is served as standard in our stores, but our drinks can be customised to reduce calories, including choosing skimmed, soya or coconut milk."

“Our tea bag business had been growing by 25% in the last five years. But in the first half of 2016, business slowed down to 15%-20% due to a number reasons. A long summer, discretionary spending and credit crunch affected sales. But the second half of the year will be better and we will be able to achieve 25% growth,” Paul said.

Rising tension with Pak reduced tea exports from India

s the tension between India and Pakistan has gone up, exports of tea from India to the neighbouring country have witnessed a fall. Tea exports to Pakistan fell 36% to 7.46 million kg for the period January-August 2016.

The Nicamalai flavour is a fruity sweet aromatic blend of beans from Nicaragua and Anamalai hills in Tamil Nadu, while Panagari flavour is a fragrant variety with strong aroma from Panamanian beans

launch a Rs. 20 crore campaign on TV and other collateral marketing channels in January 2017. Paul said he is also expanding Typhoo India's business through new product launches and increasing the retail footprint. The size of the tea bag market in India is Rs 500 crore and is growing at an annual rate of 14%-15%.

Pakistan has reportedly stepped up tea purchases in Kenya and Sri Lanka. "While our teas roughly sell between Rs 110 - Rs 95 per kg, Kenyan teas are priced 30% cheaper. Foreign buyers are not allowed to directly participate in our e-auctions, so merchants have to bid on their behalf," said the

official. "Our teas are rich in flavour and colouring with beautiful reddish-copper tones. So while Pakistan buys cheap teas from Kenya, the corporate and smaller tea retailers there blend/mix our teas for improving the tone and quality of the tea," said the official. For the period from January-August 2016, total tea exports from India rose 0.87% to 135.57 million kg from the year-ago period. On an annual basis, tea exports from India are expected to be around 220 million kg, flat or slightly up from 2015 exports. "Exports across sectors have been falling in the last 18 months, but tea exports have generally remained insulated. We continue to export to Russia, Poland, England, Egypt and even China. China, which produces a lot of green tea, is now purchasing black tea from India as the base for specialty teas," said the official. Tea exports to China grew 60% to 3.13 million kg in January-August 2016 from 1.95 million kg for the same period last year.

Nestle India launched Nescafe ready to drink

estle India Ltd, said it has launched readyto-drink variants of its popular coffee brand Nescafe. Nestle has already started selling the ready-to-drink coffee for Rs 30 a pack of 180ml across retail outlets and through

e-commerce channel. Extension of Nescafe is part of the company’s plan to expand its product offering across dairy, chocolate and confectionery categories in a bid to reduce dependence on Maggi instant noodles that accounted for 30% of the company’s revenue in 2014.

The company has launched Nescafe ready-todrink in three flavours–chilled latte, hazelnut and intense cafe. Nescafe “has always been at the forefront of coffee innovation. We continue our journey as pioneers by customizing not just the taste, but also the mode of consumption to deliver ‘Anytime Coffee’ for today’s active lifestyle,” Arvind Bhandari, General Manager (dairy), Nestlé India, said in a statement.

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Beverages & Food Processing Times

Vol. 9, Issue 06 - November - 2016

Edible oil companies support the commercial release of the genetically modified mustard

he demand for edible oil in the country is intensifying and edible oil companies from Adani, Cargill to Noble Agri feel the commercial release of the genetically modified mustard will reduce edible oil import. The edible oil rise in per capita consumption is pegged at 21-22 million tonnes with imports at 14 million tonnes. Siraj Chaudhry, Chairman of Cargill India said, â&#x20AC;&#x2DC;â&#x20AC;&#x2122;with India importing 60-70% of its edible oil requirement (palm and soybean oil), an increase in domestic production of mustard through genetically modified technology will slightly ease our import dependence. Cargill sells edible oil under the Nature Fresh, Gemini, Sweekar and Leonardo olive oil brands. Atul Chaturvedi, CEO of edible oil company Adani Wilmar stated that India annually spends Rs 65,000 crore to import edible oil. The annual production of mustard oil in the country is 2-2.5 million tonnes, out of the total domestic edible oil production of 7-8 million tonnes, making it a major contributor after soyabean oils, said, which sells edible oil under the brand name Fortune. The mustard crop, grown on around 6-7 million hectares of land during the rabi season (October to March) in the north west part of the country, gives a total production of 6-6.5 million tonnes. Scientists feel that the yield of mustard must be raised from current national average of 1.2 tonne per hectare to at least 2 tonne per hectare in the next 10 years. This will require productive hybrids, yield stabilization through developing disease-resistant varieties and hybrids, they say. The increase in crop yield will benefit farmers and boost domestic oil production.

EDIBLE OIL NEWS

Adani Wilmar to invest Rs 600 cr in Odisha

dani Wilmar Ltd, has planned to set up a large scale edible oil refinery at Dhamra in Odisha's Bhadrak district. The company intends to invest Rs 600 crore on the refinery with an envisaged capacity of 1600 tonne per day. Adani Wilmar, a Rs 17,000-crore company known for its Fortune brand of vegetable oils, engaged in processing of oilseeds and vegetable oils, is a joint venture between Adani Group and Singaporebased Wilmar Group. The company owns portbased refineries and hinterland plants in various states to cater to the market needs of its products across the country. The edible oil major has sought 100 acres for its unit proposed in Odisha. It has also called for fiscal incentives and allotment of land at a concessional rate to counter competition from neighbouring states of Bihar and West Bengal where the food processing units enjoy state incentives. Presently, edible oil refineries in Odisha are not eligible to avail themselves of fiscal incentives nor can they get land at concessional prices under Annexure II of Industrial Policy Resolution (IPR), 2015. In a letter to the Odisha industries department, KripakarVarshney, voice president of Adani Wilmar said, "You will kindly appreciate that our project of modern edible refineries are catalyst for industrial and economic growth of the state, generation of direct employment of more than 1,000 employees and large number of indirect employment in the state and development of ancillary and supporting industries like packaging, transport and logistics. Such refineries also lead to spurt in the growth of oil seed cultivation in the hinterland, thus helping the farmers." Adani Wilmar has urged the industries department to modify the list of industries listed in AnnexureII of IPR to enable modern edible oil refineries with investments exceeding Rs 100 crore to avail the incentives. Fortune brand marketed by Adani Wilmar is a market leader in the vegetable oils segment with about 100 depots and a retail network of over one million. In value terms, the global edible oils market is projected to register a CAGR (compounded annual

growth rate) of 5.1 per cent during 2016-24. As a fall out of increasing demand from developing regions and rising competition in the developed

Indian scientist developed high yielding variety turmeric

his news may be a Diwali bonus for turmeric farmers as the scientists at the Lucknow-based Central Institute for Medicinal and Aromatic Plants, CSIR-CIMAP conducted extensive research for eight years to identify and finally develop the high yielding variety. A new variety named CIM-Pitamber is available for commercial cultivation.

finally develop super clones. The CIM-Pitamber is tolerant to the common leaf botch disease, affecting the turmeric crop.

An average yield of 50 tonnes of rhizomes/ha, containing more than 10 per cent curcuminoids has been demonstrated in multi-centre field trials. It holds much promise for many traditional Indian homes where turmeric (curcuma longa) is not just one of the popular spices, but also a valuable first aid-cum medical ingredient to tackle a range of anti-inflammatory problems.

This will enable the farmers to double their yields and also significantly raise their income, the Institute said. The variety was unveiled by Prime Minister Narendra Modi on the 75th foundation Day of CSIR, which has 38 national labs, on September 26.

One of the super yielding varieties with expected production of 60-65 tonnes of rhizomes/ha also contains more than 12.5 per cent curcuminoids. The general duration of the crop is 180-190 days, scientists said. The active ingredient curcumin has a wide spectrum of medicinal properties. These include anti-inflammatory, wound healing, anti-cancer, antioxidants, anti-microbial as well as anti-aging properties. The scientists used genetic techniques on 130 germplasms collected from different places to select, cultivate, differentiate characteristics and

The variety will be able to produce rhizomes, with 90 per cent more curcuminoids and yields, more than double the existing varieties, and IISR Pratibha, now grown in North Indian plains.

Andhra Pradesh, Telangana, Tamil Nadu and the South generally account for 70 per cent of turmeric production. Trading happens in the major markets in Erode (TN), Duggirala (AP) and Nizamabad in Telangana said Kotesh Kumar, in-charge, at CIMAPâ&#x20AC;&#x2122;s Centre in Hyderabad. India is the largest producer and exporter of turmeric and accounts for nearly 80 per cent of the global production. The spice is cultivated on over 150,000 ha in at least eight large States. The estimated consumption of the spice domestically is about 100 mg per capita, amounting to around 480,000 tonnes per annum. However, turmeric farmers have been facing trouble with stagnation in yields and inadequate market price.

Beverages & Food Processing Times

markets, major players are shifting focus towards markets with low per capita edible oil consumption like India, China, Brazil and Mexico.

Vol. 9, Issue 06 - November - 2016

Beverages & Food Processing Times

Vol. 9, Issue 06 - November - 2016

EDIBLE NEWS

Central cut taxes on import of Wheat and edible oil

entral Cabinet lowered the wheat import tax to 10 per cent from 25 per cent and cut the import duty on both crude palm oil and refined edible oils by five percentage points to 7.5 and 15 per cent respectively, the order on a government website, showed. Wheat output in India, the world's second-biggest producer, has fallen well below the peak of 2014/15, reducing stocks to the lowest level in nearly a decade and pushing domestic prices close to record highs. Private trade in India has already imported about 600,000 tonnes of wheat in 2016, the most in nine years. Traders had expected the government to reduce or even abolish the 25 per cent import tariff to make imports cheaper and ease a domestic supply squeeze. "It's a good sign. Lower import tax will step up the availability of wheat in the local market," said Veena Sharma, Secretary of the Roller Flour Millers Federation of India, the country's main wheat industry body. Vegetable oil industry officials in India, the world's biggest edible oil importer, were disappointed about the cut in taxes on the import of crude palm oil and refined edible oils. "This is not the right time to cut the import duty. We're a bit disappointed as we're on the verge of harvesting a new oilseed crop. The reduction in the duty

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will put pressure on local oilseed prices," Atul Chaturvedi, President of industry body Solvent Extractors Association of India said. Local vegetable oil prices have surged a fifth in the past three months. "The government should have rather raised the differential between the duties of crude and refined oils to support the domestic refining industry," Chaturvedi said.

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Vol. 9, Issue 06 - November - 2016

SEA FOOD NEWS

America’s move may boost India’s seafood exports

fter United States removal of antidumping duty on Indian shrimp India, a major exporter of shrimp, is now taking steps to substantially boost its output through Black Tiger shrimp, or Asian Shrimpmuch soughtafter delicacy in most parts of the world. The US Commerce Department rolled back the duty in early September this year during its final review. “This will be beneficial to the farmers and help in the growth of the marine products industry in India,” K Shivakumar, Consultant with the Seafood Exporters Association of India (SEAI), said. Indian marine export organisations are now aiming for a seafood export target of $10 billion by 2020, more than double the $4.68 billion worth exported in 2015-16. Shrimp made up the lion’s share of these exports at $3.09 billion or Rs 20,045 crore. Among shrimp, Black Tiger (Penaeus Monodon) is the crustacean of choice.

demand. To meet the enhanced demand, and boost exports, more broodstock multiplication centres are likely to be set up in the country, particularly for Monodon production. “Setting up of a nucleus breeding centre in India, like the one in Hawaii in the US, is seriously being looked at and is likely to come about in a year or two,” A. Jayathilak, Chairman, Marine Products Exports Development Authority (MPEDA), a statutory body under the Ministry of Commerce and Industry, said. Jayathilak, who was talking on the sidelines of the recently-held India International Seafood Show, said MPEDA’s role was not only to boost production and exports but to ensure that shrimp are farmed or trawled in a sustainable manner,

keeping in mind the environment needs. Also, called Giant Tiger Prawns, their peak season is from November to May. They are native to the coasts of the Arabian Peninsula, Australia, Indonesia, south and Southeast Asia and South Africa. They are also abundantly available or cultured on the West Bengal and Orissa coasts. For years, Thailand dominated the shrimp export market to the US — the largest consumer of such marine products. But in 2009, a disease called NecrotisingHepatopancreatitis, or early mortality syndrome, proved to be a major problem for Thai exporters. The sharp fall in production opened the door for India to become dominant and it has never looked back. The other variety of prawn which is widely trawled

or produced in India is LitopenaeusVannamei, or the Pacific White shrimp — also known as the White-Legged shrimp. In 1996, MPEDA, in collaboration with the Oceanic Institute of Hawaii in the US, began the first — and so far the only — Broodstock Multiplication Centre for L Vannamei in Andhra Pradesh, which sells broodstock to hatcheries across the country. Now MPEDA is looking to expand the regions where hatcheries for L Vannamei could be set up. “We are examining the scope of production of Pacific White in naturally saline areas within the country such as those found in Haryana and Punjab,” Jayathilak said. According to SEAI, the Pacific White had been successfully cultured in Rohtak, Haryana, showing that a huge untapped potential for the species could emerge.

The export of Black Tiger shrimp last year improved by 6.56 per cent in quantity but decreased by 30.35 per cent in US dollar earnings owing to the depressed global economic scenario. Total production was 71,400 tonnes. Monodons dominate the export market because of their fast growth, large harvest size and attractive price. In the US and Southeast Asia, it’s much in

Compulsory health certificate for poultry transportation in Delhi

o check the spread of bird flu in Delhi, the state government Animal Husbandry Minister Gopal Rai visited the Ghazipur poultry market. Minister said that the government has made health certificate mandatory for the poultry transported to Ghazipur market. Rai visited the market take stock of the situation after several migratory birds were found dead in various parts of Delhi over the last week. A 15-member committee comprising poultry traders, doctors and market association officials has been constituted for enforcement of the provision in the market. On 14 October, the death of two migratory birds was reported in the zoo followed by six birds on 15 October and one on 17 October. Samples of eight birds were sent to a lab in Jalandhar and later to Bhopal, which confirmed the presence of H5 influenza virus. Delhi development minister Gopal Rai said that the government is taking all necessary measures to check the threat of bird flu in the city even though there is "no immediate danger". "There have been some deaths of migratory birds reported due to H5 virus in Delhi Zoo. But there is no alarming situation. Government is taking immediate preemptive actions," Rai said. His remarks came after he visited the Delhi Zoo recently to review the situation after nine migratory birds were found dead in New Delhi over the last one week due to H5 virus, which causes avian influenza, or bird flu.

EDITOR Firoz H. Naqvi

CONSULTING EDITOR Basma Husain

MARKETING EXECUTIVE Dhiraj Dubey

PRODUCTION MANAGER Syed Shahnawaz

GENERAL MANAGER Gyanandra Trivedi

CIRCULATION MANAGER Seema Shaikh

GRAPHIC DESIGNER Naved H.Kazmi

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