Oil & Food Journal July 2015

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Vol 10 Issue 9 July 2015

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10th

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Doing away with arti�iicial additves Marketing nutraceuticals to rural India

M&M enters edible oil segment

Devil's Advocate FSSAI: A MENACE OR A MESSIAH

By Firoz H Naqvi


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NRI investors show keen interest in Bihar's Food processing sector

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Italian Parmesan cheese rescued by Dairy and Milk tradition of Punjab

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Parag grows business @ 35% CAGR focuses on dairy products Mahindra Group to stepwise roll out its Dairy business in coming months

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FSSAI comes heavy on food industry, rejects 500 applications product approval Pea protein picks up as Healthy alternative Food Ingredient Naturex supports its clients in the race for innovation Company supplying Spice for Maggi noodles sacks 300 employees Chr. Hansen develops gamechanging fermentation process for carminea

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Soyabean industry asks Jaitley to hike Edible Oils customs duty Agro Products are doing rather well in the Market today. Know why

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Bunge to close Bradley, Illinois oil packaging plant

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Govt allows bulk exports of rice bran oil

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To regulate sources to prevent Food contamination', check lead recycling

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FSSAI proposes fixing permissible limit for lead content in Fruits, Pulses, and Juices

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FSSAI famishes Market of Food launches

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Mother Dairy claim U.P. Food and Drug Administration tested on “loose Milk samples collected at village level”; resend Milk samples for tests

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FDA to cut Trans fats from processed Foods, gives three-year timetable

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New Interactive Process Diagrams Highlight SPX Expertise in the Food & Beverage Market

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Nitish Kumar demands for investment in Food Processing

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M&M enters Edible Oil segment

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CONTENTS

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Marketing nutraceuticals to rural India

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Before the Maggi Noodles Scare: Look at What the U.S. FDA Found in Indian Snacks

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Devil’s Advocate

FSSAI: A MENACE OR A MESSIAH

WTO CHALLENGES FOR INDIAN DAIRY FARMERS

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How raceuticals are

contributing to good health

Doing away

with artificial dditives 33

Why Punjab

is exporting wheat and importing flour

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Vol 10 Issue 9 July 2015

The views expressed in this issue are those of the contibutors are not necessarilly those of the magzine. though every care has been taken to ensure the accuaracy and authenticty in infomation, "Oil & Food Journal" is however not responsible fordamages caused by ministerpretation of infomation expressed and implied with in the pages of this issue. All disputes are not to be referred to Mumbai Jurisdiction

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EDITORIAL

have always been asupporter of women empowerment; of course I practice it at home too! And when I came to know that to promote and develop the country's food processing sector, the government will provide financial assistance in the form of grant-in-aid to eligible entrepreneurs, especially women entrepreneurs, it somewhat revived my cracked faith in the governments development policy. The ministry is implementing a Central Sector Scheme for Infrastructure Development for Food Processing having components of mega food parks and integrated cold chain, value addition and preservation infrastructure, and under this scheme women entrepreneur will definitely gain a lot, I think. So alas I can say that my food processing sector is growing in a wholesome positive way. This scheme will provide financial assistance in the form of grant-in-aid to eligible entrepreneurs, including women entrepreneurs, at the rate of 50 percent in general areas and 75 percent in northeastern Region and difficult areas, subject to a maximum of Rs.50 crore for establishment of mega Food Park and Rs.10 crore for establishment of cold chain infrastructure. For the information of my readers, around 103,067 small and micro food processing units are being managed by woman in rural areas of the country. Well coming to the most upheaved subject of the time-food safety- Agri-food major Cargill India and industry body CII today launched a nationwide campaign 'SurakshitKhadyaAbhiyan' (safe food campaign) to create awareness about safe and hygienic food among street vendors and others. A year-long campaign, which aims to build a culture of food safety in the country, would focus on sensitizing street vendors and other stakeholders on maintaining cleanliness hygiene and sanitation to ensure safe food. Under the campaign, safe food walkathons, interactive sessions and media dissemination programmes would be organized across metros and tier II cities. Food safety is important to promote the Indian food processing industry nationally and globally but the Maggi controversy has petrified the consumer and the FSSAI firm vigilance has scared the food processing industry. For this the country's food regulator, has come in for severe criticism. The most scathing assault came from the food processing minister, Harsimrat Kaur Badal, who charged the FSSAI with imposing an Inspector Raj, instilling a sense of fear among food processors, killing innovation and stalling potential foreign investment in this sector. Food industry bodies went a step further, and accused the regulator of overstepping the law to delay approval of new food products and of harassing processing units on trivial grounds. The state governments, too, stepped into this controversy when their food ministers passed a unanimous resolution in a conference in Delhi to demand that the administrative control of the FSSAI be shifted from the health ministry to the consumer affairs ministry. Some of the adverse fallout of the regulator's actions cannot be overlooked such as around 700 new food products are said to have been awaiting pre-launch approval from the FSSAI for over a year because of the cumbersome and lengthy approval procedures. This problem is rooted basically in the Food Safety and Standards Act, 2006, which neither defines "product approval" nor lays down any norms for this purpose - thus giving the FSSAI the freedom to evolve its own procedures. In addition, consignments of imported food products often remain stuck at the ports for long for want of clearance by the FSSAI. In many cases, permission is withheld on the flimsiest of grounds - because the labeling of the packages does not conform to arbitrary norms specified by the FSSAI, which differ from the widely accepted global standards. The differences between the food regulator and the food processing ministry, does not do well for a sector which, after prolonged infancy, has finally moved towards faster growth, clocking 8.4 per cent annual growth in recent years. But thankfully, there is a ray of hope that some of these contentious issues may soon be resolved. The FSSAI has reportedly finalized about 12,000 standards for food ingredients and additives which, it is claimed, are in line with the global safety and quality standards. If so, once enforced, food companies may not need to seek product approvals if they follow these standards. The option of random sampling for quality assessment of the packaged products would always be available to the FSSAI to ascertain compliance. Hopefully the principles of minimum interference and global benchmarking will be considered paramount. Well amid all the cat fight between the regulators, government and industrial bodies the Food safety regulators arenow planning to set new quality standards for ice-cream and flavored milk besides tightening the existing safety norms for milk and other dairy products. The proposal comes after ban on import of Chinese milk and milk products last month due to presence of melamine for one year till June, 2016, following a recommendation from FSSAI. At present, FSSAIhave norms for milk, paneer, ghee and butter, among others. In the latest proposal, the regulator is working on setting more specific and stringent standards for fat content in milk. If I become a devil’s advocate, I think that FSSAI has finally woken up after a long sleep to cater and regulate food safety but the watchdog has to be within limits and stop harassing the food industry and softly and slowly workout a middle path so that industry is not stressed and they oblige to the safety policy.


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NUTRA CALL

Marketing nutraceuticals to rural India

T

he Indian nutraceuticals industry is expected to grow at 20 per cent to USD 6.1 billion by 2019-2020 due to rising awareness about health and fitness and changing lifestyle.

one of the rapid growing markets in the Asia-Pacific region. Factors like rising awareness about health and fitness, ageing population, changing lifestyle are fostering this growth.

At present, the nutraceuticals industry in India is about USD 2.2 billion and is mainly focused in the southern region, followed by the eastern region with three major states of Andhra Pradesh, Tamil Nadu and West Bengal.

Nutraceuticals business is divided into three segments - functional food, functional beverages and dietary supplements.

The nutraceuticals industry in India is

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The nutraceuticals market penetration in urban India is at around 22.5 per cent, while it is comparatively low in


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rural India at 6.3 per cent. The urban penetration is more as demand for protein supplements is increasing among the urban youth due to rising desire towards maintaining fitness and building a strong physique. Oats, probiotics, nuts, tomato products, yogurt, sports and energy drinks, among others, fall under functional foods; vitamins, minerals, fibers and fatty acids, in the form of tablets and capsules, are part of dietary supplements. The report further said that even as nutraceuticals fall under the purview of Food Safety and Standards Act of India (FSSAI), 2006, it is not stringent enough to ensure safety for consumers. It regulates manufacturing, storage, distribution, sales and imports of nutraceuticals in the country.FSSAI should play a significant role in defining standards to streamline the nutraceuticals market in India, which must include quality raw materials, safe manufacturing of products, health claims, labeling and distribution, and storage. Entry of nutraceuticals in rural market In 2009, GlaxoSmithKline began test marketing an affordable brand of Horlicks its ubiquitous malt-based drink, to be sold in 2.5 rupee sachets in villages across Andhra Pradesh in South India. In marketing the product, which it called

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Asha, GlaxoSmithKline claimed it would provide poor rural consumers with an alternative to local cereal mixes of what they call ‘uncertain quality’, such as finger millet malt. In 2011, PepsiCo India launched a new salty biscuit product called Lehar Iron Chusti, which it rolled out across Andhra Pradesh in 2 rupee packets, alongside a major education campaign on iron deficiency for women and teenagers. At the same time, in neighboring Orissa, Coca-Cola was launching Vitingo, a new sachet-based orange-flavored drink fortified with 12 vitamins and minerals that it promoted as helping to combat blindness, anemia and other common diseases, in collaboration with a local NGO and self-help group.

NUTRA CALL These are all examples of what industry and marketing groups refer to as nutraceuticals: nutritionally fortified or engineered foods, beverages or supplements that are marketed for their health-giving properties. In recent years, Indian economists and market research agencies have championed the Indian nutraceuticals market as a potential engine of growth. With current growth rates exceeding 18% and market forecasts of a fivefold increase by 2020, nutraceuticals are celebrated as the most successful sector of the food and pharmaceuticals market. In 2010, revenues from the Indian nutraceuticals industry were estimated at US $ 2 Billion (Frost & Sullivan). By 2017, they are expected to reach US $ 4.2 billion. The potential for expansion is deemed to be vast, with ‘an envisaged latent market of 148 million customers (Ernst & Young). Until recently, the nutraceutical industry had concentrated on responding to the rise in obesity and lifestyle diseases in India by marketing more expensive, higher margin products to India’s aspirant middle class. Marketing consultants celebrate this population as having a growing awareness of health and lifestyle diseases, rising disposable incomes and, increasingly, a ‘self-care ethos’ that is associated with a demand for preventative healthcare products. To market analysts, food and beverage companies appear to be dividing their urban portfolio into complementary segments of health and


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NUTRA CALL global development community, is a clear case of ‘doing well by doing good’.

wellness on the one hand and indulgence on the other. Health and wellness products include sports beverages, diabetic foods and child health products. But with intense competition in the urban sector, the focus of both domestic and multinational companies is now moving to the design of affordable nutraceutical goods for consumers at the ‘bottom of the pyramid’; Indians who live on less than Rs 100 a day. This is a largely rural population whose anticipated purchasing power is based on an economy of speed and scale rather than the size of individual incomes. Where the penetration rate of nutraceuticals in urban areas is 22.51%, in rural areas it is currently only 6.32%. For the growing nutraceutical industry and those seeking to make new acquisitions in this area, this presents a huge ‘latent market’ that could ultimately account for a third of the market scope. The migration of the nutraceuticals industry into rural markets has seen the industry shift away from the claim that their products can prevent non-communicable diseases associated with urban working lifestyles, such as diabetes, cardiovascular disorders and cancers, and towards the claim that products specifically designed for the rural poor can tackle child malnutrition and save vulnerable lives. Such claims are couched in a language of humanitarianism and focused on a target that the food industry increasingly shares with the international development sector: micronutrient deficiency, its long-

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term health implications and its national and global economic cost. Today, India’s ‘double burden’ of obesity and malnutrition is a double opportunity. With the rise of micronutrient deficiency as a development problem, an international consensus has emerged around the corporate laboratory and marketing agency as the solution. Where government food programs in India have failed to address rural malnutrition, it is anticipated that Big Food, with its scientific, marketing and distribution capacities can succeed. Selling nutraceuticals to the rural poor, according to governments; the food industry, a global community of market consultancy agencies and accountancy firms; and the

Public-private partnership With the shift from poverty and hunger to hidden hunger and micronutrient deficiency, government responses to malnutrition have expanded from direct humanitarian action through food aid to the creation of an ‘enabling environment’, in which affordable fortified food markets can flourish. In India, the Integrated Child Development Scheme began in 1975 as a subsidized food program that distributes basic foods such as wheat and grain to poor families in anganwadi centres, village-level centres for governmentfunded social welfare programmes. Yet, 30 years after the establishment of the ICDS, the most recent National Family Health Survey reported that 48% of the country’s children under 5 are stunted, 20% are wasted and 43% are underweight. The state-sponsored food program has been widely criticized for its inefficiency and corruption. Developing ways to pack foods that people like to eat with additional nutrients, and coming up with new strains of nutritious and tasty crops that can be grown in a wider range of environments, need to become priorities for food technology, on an equal footing with raising productivity. Packing better-tasting food with micronutrients is where the private sector


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NUTRA CALL social conduits through whom companies can access wider social networks. When GlaxoSmithKline launched Asha, it added 4000 sub-distributors to its existing 500 distributors in small towns.

is seen to have skills and resources that are not always available to governments. While the state is still thought to have a role in regulation and facilitation, the private sector is increasingly considered to have the intellectual property, manufacturing capacities and marketing skills needed to take food fortification the last mile. Public–private partnership is now the favoured model for improving nutrition in developing countries for the World Bank, the WHO and the Millennium Project taskforce on Hunger. Today, Coca-Cola, PepsiCo and GlaxoSmithKline each distribute and market their bottom-of-the-pyramid nutraceutical products in partnership with local NGOs and microenterprise organizations. In many cases, these NGOs have received funding from global organizations like UNICEF; in some cases, mediated by GAIN, to provide educational programs on micronutrients in rural areas. Educational campaigns by NGOs and development agencies that are run in concert with the rollout of new fortified food products prime a market for corporate access. Such partnerships are indications of the ‘creeping privatization of health education’. For their Nutristar drink fortified with patented triplefortification technology for iron, vitamin A and iodine, for example, Proctor & Gamble partnered with UNICEF, who provided health education about

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micronutrients, at the same time as Proctor & Gamble distributed the product. These partnerships have also been crucial to ‘last-mile’ distribution strategies. In Orissa, Coca-Cola partnered with the NGO BISWA to distribute Vitingo through self-help groups; in Andhra Pradesh, GlaxoSmithKline developed a partnership with SKS Microfinance, a microcredit organisation, to distribute Asha. The distribution of nutraceutical products in rural areas is being tied into direct-selling employment opportunities, with rural distributors being both personal consumers of the product and

Harnessing Science Key to the added value that fortification lends food is its scientific evidence base. This is also where multinational corporations have a distinct advantage over local competitors. The acquisition of nutraceutical portfolios has become increasingly attractive to corporations already invested in pharmaceuticals, such as GlaxoSmithKline. According to market analysts, pharmaceuticals have increasingly narrow profit margins, especially in developing world contexts where generics are providing greater competition (e.g. Frost & Sullivan,). Over the past three years, following consultant advice, GlaxoSmithKline has begun to shed its pharmaceutical portfolio and expand its nutraceutical portfolio in the BRIC economies. Nutraceuticals have lower profit margins than pharmaceuticals but require a fraction of the outlay on research and development. At the same time, nutraceuticals are seen as an opportunity for India’s food industry and fast-moving consumer goods industry to increase revenues. Making claims about the health-giving qualities of particular products enables multi-nationals to sell more expensive products in a highly


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competitive, often locally dominated, marketplace. A clear sign of the pharmaceuticalisation of food is the establishment of scientific foundations and institutes by food and FMCG companies in India to generate the scientific evidence needed to market their products as nutraceuticals. For example, Coca-Cola established the Beverage Institute for Health & Wellness in 2004; Britannia established the Britannia Nutritional Foundation in 2009; and GlaxoSmithKline launched the Horlicks Nutrition Academy in 2011. These institutes conduct research to establish micronutrient deficiency in target populations and on the products developed to meet that deficiency. One effect of corporate-funded scientific research into micronutrient deficiency is that homemade food and established diets are considered inadequate and in need of fortification with commercial foods that can be better quantified and monitored in terms of their micronutrient content. Selling wellness How do you make a nutraceutical market for the rural poor? As the rising costs of health care put it beyond reach of much of this population, investment analysts anticipate that they will become increasingly susceptible to notions of wellness and its associated products. And

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yet the cornerstone of ‘wellness’, the micronutrient, is not a familiar concept for much of the Indian population: ‘The Indian consumer’s awareness about conventional nutraceutical ingredients such as omega-3 fatty acids or lutein is severely limited, and nutraceutical manufacturers need to take up the cause and spread awareness about their products to the Indian masses’ (Frost & Sullivan). The major challenge in this area is considered to be that of translating the established acceptance of alternative and herbal remedies and supplements in Indian ayurveda traditions into concepts of ‘wellness’ and ‘micro-nutrient deficiency’. The problem is how to make people think about their food and their bodies in terms of micronutrient content and the long-term health risks associated with micronutrient deficiency.

NUTRA CALL

One of the reasons why Horlicks and the fortified beverage market in general, do so well in India may be because the commodification of ayurveda tonics is already well established. Companies like Himalayan, for example, repackage ayurveda herbal preparations ‘in the symbolic forms of biomedical, “English”, medicine – brightly colored capsules, plastic bottles, English labels – and [distribute] it by prescription through biomedical physicians’. Indeed, companies like Horlicks achieve many of their sales through the prescription of their products by family physicians. As one marketing analyst report put it: ‘The existence of alternative medicine in India, and the Indian consumer’s belief in them, could provide a platform for the nutraceutical industry to capitalize on’ (Frost & Sullivan). Recent research on nutraceuticals in medical anthropology and sociology has concentrated on the ways in which the transformation of food into a micronutrient health product transforms people’s sense of self and their relationship to their body in ways that afford new techniques of health governance. It is suggested that the introduction of nutraceuticals is associated with a growing concern with the ‘risks’ of living and the fostering of individual responsibility for managing the risk of chronic disease. Food becomes another everyday space in which we monitor our health status and ‘a molecular understanding of foods … expands into the social realm’. Established supplementary food practices


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NUTRA CALL importance of living conditions and structural impediments that may prevent families from creating a balanced diet.

in rural India are seen by the nutraceutical industry as an opportunity to sell fortified foods. But how easily can one set of foods and practices be metaphorically extended to incorporate another? As education and marketing campaigns are rolled out alongside nutraceutical products, will women in rural Andhra Pradesh and Orissa internalize a notion of the molecular self? Will they see commercially produced nutraceuticals as better, more scientifically valid versions of the everyday foods that they give their children to promote vitality and growth? Or will nutraceuticals be received as overly expensive foods? The possibility that food marketing experiments, such as those of micropackaging or direct selling, that are explicitly designed to overcome obstacles associated with frontier markets in culturally unfamiliar and logistically difficult environments may be less successful than anticipated is suggested by the disappearance of Asha™ from the GlaxoSmithKline website and the absence of any publicly available information on the product since its test marketing stage in 2010. The hegemonic power exerted by multinational food companies through integrated marketing techniques used to promote unhealthy foods is well documented. How successful rural marketing techniques such as multilevel marketing are in promoting new concepts of health and wellness is, by comparison, relatively underexplored. This is where

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future in-depth, ethnographic research capable of detailing the rich worlds of food and health practices into which multinational companies seek entry for their nutraceutical products will be crucial. Conclusion On the one hand, new partnerships between international development organizations and the food industry and new strategies for accessing nutraceutical markets at ‘the bottom of the pyramid’ need to be approached critically. The increasingly dominant message that commercially fortified foods are the solution to hidden hunger obviates the

On the other hand, it is important to bear in mind the logistical, economic and cultural limitations that multinational food companies face when they seek to make new markets for nutraceutical products. It is tempting to emphasize the ‘smooth’ segue of corporate capitalism into the world of humanitarian food. But the amalgamation of the values of profit and humanitarianism in a single nutraceutical product is an achievement that must be actively and repeatedly brokered in the conference halls of the international development sector, the reports of marketing consultants and analysts, the pot-holed roads of India’s rural districts and the homes of rural distributors and Indian consumers. As research on analogous products, such as the selling of soap or solar lanterns as public health goods has indicated, multinationals often encounter rougher social and physical terrain in rural markets than they anticipate. Just how far the nutraceutical can travel remains an important question for capitalists, development specialists, consumers and social scientists alike.


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COVER STORY

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Devil’sAdvocate By Firoz H Naqvi

FSSAI: A MENACE

OR A MESSIAH

The food industry in India is said to be intimated by the Food Safety and Standards Authority of India (FSSAI). The Indian food safety regulator after the Maggi controversy is on constant scavenges causing quite a big unrest amongst the food industry people. Oil and Food Journal explores whether FSSAI is becoming menace for the industry or a messiah for the consumers. Outline It is being said that the Food Safety and Standards Authority of India (FSSAI) has created an environment of fear in the industry after the Maggi row. Maggi noodles, produced by the Indian subsidiary of the Swiss food giant Nestlé, were hugely popular across India and the three-decade old brand had an 80 per cent share of the country’s instant noodle market. A 70-gram packet of its masala noodles was priced at just 12 rupees.

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The Food Safety and Standards Authority of India described the noodles as “unsafe and hazardous” because of lead content and a breach of labeling standards on monosodium glutamate (or MSG) in the product. Nestlé recalled billions of rupees worth of noodles but insists that its Maggi noodles are safe and is challenging the ban in court. The Bombay High Court in the latest hearing on June 30 informed Nestlé that it was allowed to export its noodles – although the ban on sales within India

remained in place. Nestlé exports the noodles to countries including the United States and Britain. British and Canadian food regulators this month declared the noodles safe for consumption. Reports suggested that Nestlé is working on a strategy to relaunch its Maggi products in India. Nestlé will have to invest heavily to regain consumers’ trust in its product. MESSIAH Nestlé paid 200 million rupees to Ambuja


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COVER STORY

basically in the Food Safety and Standards Act, 2006, which neither defines "product approval" nor lays down any norms for this purpose - thus giving the FSSAI the freedom to evolve its own procedures. In addition, consignments of imported food products often remain stuck at the ports for long for want of clearance by the FSSAI. In many cases, permission is withheld on the flimsiest of grounds because the labeling of the packages does not conform to arbitrary norms specified by the FSSAI, which differ from the widely accepted global standards.

Cements to help destroy the recalled noodles at its cement plants. And the company is likely to lose $200m in brand value because of the situation.

from India safe to eat. Unfortunately, the issue isn't just about Maggi anymore. The controversy has had a global impact.

Many analysts say that the impact has gone much deeper, however.

Industrial fear The packaged food market in India has been hit in the wake of the ban, and theimplications of the Maggi case for India’s packaged food sector are negative and it will also have a negative impact on investment in the food sector.

The bigger challenge they have is not only for Maggi as a brand but for the instant snacking category as it has taken a big hit. The industry and Nestlé have to start rebuilding trust in instant food, that it’s safe for consumption. People are now actually looking at instant food with skepticism and their strategy or rebranding needs to start from there. In fact Nestle claims that FSSAI never shared the test report with the company before the ban was announced. And still till date it doesn't have some of the test reports based on which authorities took the action. The reports weren't shared with the company, but they have now started trickling in. The company claims it has not been given a chance to explain its position before FSSAI and state authorities banned the product alleging excessive levels of lead in it and mislabeling on the pack. Not sharing the test reports with the company before taking such an action was unfair, said industry experts. The delay in sharing the reports also raised questions on the test procedures, since the UK, Singapore and Canada have found Maggi imported

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FSSAI’s menace has brought upon some adverse fallout which cannot be ignored. About 700 new food products are said to have been awaiting pre-launch approval from the FSSAI for over a year because of the cumbersome and lengthy approval procedures. This problem is rooted

In this regard, the Union Food Processing Minister Harsimrat Kaur Badal has attacked the Food FSSAI for “creating an environment of fear” in the food industry. The minister thinks a lot needs to be done as FSSAI needs to streamline its regulations andits steps are stopping innovations in the processing sector. There is a fear psychosis in the industry and because of this, for the first time the FSSAI has been criticized by the government since its recent crackdown on food items. Harisimrat Badal to recuperate the industry has told the industrial bodyCII – that the government is keen and committed to the growth of the domestic food processing sector and wants to create an environment for its progress. She also said a task force had been formed by Prime Minister Narendra Modi on her


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  

Vol.10 Issue 09 JULY 2015


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COVER STORY

going at lower level. The industry is very scared of being subjected to more harassment. The central food regulator had ordered testing of instant noodles, pasta and macaroni brands of seven companies including ITC, GSK Consumer Healthcare (GSKCH) and Nestle India, and declared brands made by all other companies as illegal. The other company hit by FSSAI is Starbucks, after facing queries from theregulator; Tata Starbucks suspended the use of ingredients not approved by the former in certain products served at its Indian outlets. request to look into regulatory issues and ensure the growth of the sector. The minister has also promised the food industry that she is planning to even create a special committee within her ministry, with the representatives of the CII and the respective state heads in this task force as the members, in order to resolve the issues and help the food processing industry realize its desired potential. The food manufacturing companies are concerned about the impact of the Maggi case on their expansion plans and that they are facing “increased harassment” from safety inspectors. The companies said there had been a 90 per cent fall in instant noodle sales following the ban. As a matter of fact there is no standard protocol for testing in different states and manufacturers are not given enough time to take remedial measures. If there is a feeling that all food companies are rogue and consumers stay away from packaged food, who is going to invest?And think out the industry body. Harsimrat Kaur Badal has also stressed on transparency in implementation of food safety standard laws in the country while justifying her statement that 'food inspector raj' will impact "Make in India" campaign. Food safety measures can't be put at stake, but there is a need to have same yardstick for all food products irrespective of the manufacturer — be it multinational or local.

Vol.10 Issue 09 JULY 2015

Industries hit Instant noodles sales in India have crashed by over 90 per cent. According to the industrial estimates, the sales have shrunk to just about Rs 30 crore from a whopping Rs 350 crore a month. With the key category facing an uncertain future, the food processing industry is worried that this could have an impact on their overall investment plans. With FSSAI cracking the whip, HUL withdrew its Knorr Chinese noodles as well as Indo Nissin's Top Ramen noodles which were pending for approval with the food safety regulator. In the aftermath of Maggi controversy, there has been an "increased focus" on packaged food companies and there is a lot of harassment

It had reported that as many as 32 product applications of Tata Starbucks had been rejected in the first four months of 2015 out of a total of 217 struck down by the FSSAI. The rejected applications of Tata Starbucks included those for praline topping, bar mocha powder, raspberry flavored syrup, jelly base coffee, tiramisu sauce, mango passion fruit juice blend, French vanilla flavored sauce, raspberry blackcurrant juice, and decaf espresso whole bean roasted coffee and classic chai (tea) concentrate, international chocolate drink mix, among others. FSSAI has also ordered recall of four protein supplements — Mulmin Pro, Mulmin Syrup, MulminPlus Capsule and Mulmin Drops with immediate effect.


21 www.agronfoodprocessing.com

COVER STORY

and 22 members.The duty of FSSAI is to regulate and monitor the manufacture, processing, distribution, sale and import of food so as to ensure safe and wholesome food for public consumption. Under the FSS Act, FSSAI is, inter alia, empowered to make regulations prescribing standards for food items including limits on food additives, crop contaminants and pesticide residue. However, FSSAI can only come out with these regulations after receiving the approval of the Central Government and each house of parliament.

The decision to recall all these products has been taken on the basis of recommendations made by the scientific panel for functional foods, nutraceuticals, dietic products and other similar products. Also Hector Beverages, owner of the Tzinga energy drink, was asked to recall its energy beverages for using ingredients that are ‘not safe’. The Authority had sent notices to several companies, including Hector Beverages and Pushpam Foods and Beverages. It directed these companies to recall products from the market as they have been declared unsafe. The drinks include three flavours of the Tzinga and four products under brand Cloud 9 energy drink by Pushpam Foods and Beverages. Meanwhile, FSSAI also asked Chennaibased Akoaroma Co to recall its Akoaroma-M Flavour concentrate and AkoaromaFlavour Water. FSSAI is also planning to set new quality standards for ice-cream and flavored milk besides tightening the existing safety norms for milk and other dairy products. The proposal comes after ban on import of Chinese milk and milk products last month due to presence of melamine for one year till June, 2016, following a recommendation from FSSAI. At present, FSSAI has norms for milk, paneer, ghee and butter, among others. However, in the latest proposal, the

Vol.10 Issue 09 JULY 2015

regulator is working on setting more specific and stringent standards for fat content in milk. Alas! FSSAI Wakes up People now realize that a government organisation exists that is supposed to ensure the safety of the food we consume. FSSAI has been in the news for quite some time now in relation to imported food items, but its name has now reached the common man with the Maggi controversy. FSSAI was established under section 4 of the Food Safety and Standards Act, 2006 (FSS Act). It consists of a chairperson

FSSAI has been lethargic and inefficient in the past and it can be for many reasons including financial constraints and untrained manpower. Now they have started to pick up, however, they first need to put their house in order and then can expect everyone to follow them. In their overenthusiasm, they might harm the industry and may jeopardize the jobs of many. In the last 2 to 3 months, one can definitely see a change in the workings of FSSAI. Its website appears more active and seems to be giving more clarity to the industry and consumers. Despite this, there is lot more to improve. We hope that FSSAI soon starts quoting their own advisories in their orders rather than relying upon that of another country. FSSAI toil


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Vol.10 Issue 09 JULY 2015


23 www.agronfoodprocessing.com

COVER STORY

not exceed the acceptable daily intake. Similarly, it has set norms for use of ingredients in preparation of processed food items. After the Maggi controversy, the FSSAI has stepped up measures to strengthen the quality standards for food products. It is reviewing the existing standards set for caffeine content, metal and toxic contaminants and other residues in the food products. The regulator is also in the process of setting standards for imported food items to ensure safe products are sold in the domestic market.

After the Maggi fiasco, central food safety regulator FSSAI has proposed fixing limits of permissible lead content in a wide range of products including salt, fruits, juices, vegetables, pulses and meat products. The Food Safety and Standards Authority of India (FSSAI) have decided to amend the existing regulations and have come out with draft norms seeking public comments within 60 days. As per the draft norms, lead content for food items such as milk, salt, fruits and vegetables, including canned fruit juices, fish, poultry, meat and pulses, among others, has been specified. To ensure Arsenic content in food items is maintained within permissible limits, the regulator has brought mineral water, fish, salt, olive oil, edible fats and oils, under its ambit. Similarly, the maximum level of tin has been specified for cooked cured chopped meat products, including ham, pork shoulder and beef. In case of cadmium, the regulator has fixed the limit in potatoes, wheat, rice, cereal grains, pulses, salt and mineral water, among others. The FSSAI has also brought more food products to comply with permissible limits for mercury. As a matter of fact FSSAI has also finalized 12,000 standards for food additives and ingredients in line with global safety standards Codex, in order to do away with lengthy process of product approval.The move is expected to

Vol.10 Issue 09 JULY 2015

benefit food companies as they would not require seeking product approval from the Food Safety and Standards Authority of India (FSSAI) if they comply with these standards. At present, there are 375 FSSAI safety standards for food items but none for food additives and ingredients. The new FSSAI standards are in harmony with the global food standards of Codex Alimentarius Commission, established by the United Nations’ Food and Agriculture Organisation and World Health Organisation. FSSAI, under the aegis of Health Ministry, has fixed maximum limit for use of food additives in various food groups to ensure that the intake of additives does

Indian food safety all set for revision as per global standard Countries all over the world have come together to revise international standards for food safety and quality, even as concerns have grown in India in the past two months after the food regulator cracked down on major brands including Maggi, Top Ramen and some products of Tata Starbucks. As many as 185 countries, including India and the European Union, are likely to adopt new food safety and quality standards. The new norms will contain stringent benchmarks for various categories such as level of lead, standards for safe use of food additives and pesticides, new


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standards for ginseng products as well as guidelines on how food should be labeled according to the level of potassium consumption associated with a reduced risk of diet-related non-communicable diseases. This is significant because recently when a lot of products including Nestlé’s Maggi were recalled from the Indian market, the regulator here had raised concerns on many of these grounds. While some packaged food products in India were found containing harmful substances such as lead and monosodium glutamate (MSG), many companies were caught flouting labeling and packaging norms. The Codex Alimentarius Commission, a joint inter-governmental body of the Food and Agriculture Organization (FAO) of the United Nations and the World Health Organization (WHO), is being to hold a meeting in Geneva. The agenda is to review the existing standards for food safety and quality, while also revising and adopting new standards to upgrade the regulation to address the changes in the marketplace. The Food Safety and Standards Authority of Indian (FSSAI), which is the central enforcement agency for food regulation, also follows Codex standards to keep a check on products available in the Indian market. While the Indian regulator has already expanded its probe to milk, packaged drinking water, energy drinks and edible oil etc., the international meet will also witness discussions over prevention of residues of certain antibiotics in food of animal origin, control of parasites and levels of toxins in cereal grains, flours etc. Recently, the FSSAI also asked state food inspectors to keep a close watch on food products of mass consumption and

Vol.10 Issue 09 JULY 2015

increase the frequency of sampling and testing of such products. Altogether food safety is very important After the Maggi scandal, Indian consumers have become vigilant and skeptical about the food safety. Still how often do we ask ourselves if the food we are eating is safe? Do we know if it is free of bacteria, viruses, parasites, chemicals, other contaminates additives and adulterants which can cause over 200 diseases ranging from diarrhea to cancer? Every year, diarrhea caused by contaminated food and water kills 2.2 million people, including 1.9 million children, globally. Unsafe food and water kills an estimated 7,00,000 children in the World Health Organization’s South-East

Asia Region every year.. Food safety is critical for public health as food-borne diseases affect people’s health and well-being. Unsafe food creates a vicious cycle of disease and malnutrition, particularly affecting infants, young children, the elderly and the sick. Foodborne diseases impede socio-economic development by straining health care systems and adversely impacting national economies, tourism and trade. Since food passes through multiple hands from the farm to reach our plates, ensuring food safety requires multisectoral collaboration. The approach needs to be preventive — to improve food safety and quality through application of good farming practices by using agro chemicals

COVER STORY

or veterinary drugs only in the prescribed amount. Good storage, transportation, retail and restaurant practices are equally important to make food safe. Street foods are emerging as an important source of food for a large proportion of the population in urban and peri-urban settings. Street food as a source of foodborne diseases therefore assumes public health significance. Also, new threats to food safety are constantly emerging — the impact of climate change on food production, distribution and consumption; emerging biological and environmental contamination of the food chain, new technologies, new and emerging pathogens; antimicrobial resistance. Countries need to have a comprehensive food safety policy, legislation and national food safety programmes encompassing all the sectors and aspects for food safety. Though most countries in the region have food safety policies, enforcement remains a challenge. Food quality and safety standards are usually strictly followed for exportable food commodities, but not always enforced for food destined for the domestic market. Food safety and quality should be ensured through stringent control and inspection mechanisms for export as well as the domestic market. Adulteration of food is another problem as informal food production and distribution systems are deeply entrenched at the community level in the region. Contamination of mustard oil with argemone oil in 1998 and contamination of imported milk and infant formula with melamine in 2008 are among the few events that raised food safety concerns among consumers and policymakers in the region and globally.


NO MORE

27 www.agronfoodprocessing.com

Doing away

with artificial additives Artificial ingredient, flavor and color concern of the food processing industry

By Basma Husain

W

hat are we eating? Petroleum by products, bug parts wood shavings or duck feathers. If you can imagine it, you’re probably eating it every day as one of more than 3,000 natural and artificial chemicals that appear in our food supply. Hence, Meals are less fun for many people because they are concerned about the safety and quality of the ingredients. This apprehension has many consumers actively seeking stores that offer product alternatives. Pesticides,

fertilizers,

additives

and

Vol.10 Issue 09 JULY 2015

preservatives, and other ingredients that might cause cancer are the top worry. Other top-ranked concerns included high mercury levels, GMOs, and dangerous bacteria. Parents are particularly troubled about what they perceive as the possible harmful effects on their children’s development. Some large food companies, such as General Mills and Kellogg, are already adapting to some consumer anxieties by announcing new products, including ones with no artificial ingredients. Consumer concerns are driving the switch to natural sweeteners from high fructose corn syrup,

removal of partially hydrogenated oils, gluten, and other food allergy labeling, and the removal of artificial colors and flavors. The entire food industry, both restaurants and supermarkets, is very concerned about public perception of the


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NO MORE The country's biggest food makers are facing pressure from smaller rivals that position themselves as more wholesome alternatives. Chipotle in particular has found success in marketing itself as an antidote to traditional fast food. In April, Chipotle announced it had removed genetically modified organisms from its food, even though the Food and Drug Administration says GMOs are safe.

quality of the food they provide. However, overall large food manufacturers are slow to change. Most changes are coming from companies in smaller niche markets, especially in the use of leading edge natural preservatives. Large food companies that produce end consumer products tend to be set in their repeatable production methods, while flavor and ingredient manufacturers are leading the way in developing healthier alternatives. These ingredient companies are creating robust programs that hold suppliers to a high safety and quality standard. In turn, the healthier ingredients are pushing their way into the products of major food companies. What do people really want? While many sources indicate the trend is healthier eating, some studies have found that people don't necessarily put that desire into practice. Although people want to eat healthier, they often aren't willing to give up the taste and other characteristics of favorite childhood foods for healthier alternatives. Still ninety percent consumers choose food or snacks from their childhood over a healthier updated version of the snack. And because of this large food manufacturers will follow consumer dollars, whether those dollars buy old favorites or new healthier options. And 25% of consumers are willing to pay a 10% premium for healthier options, according to a report from Deloitte.

Vol.10 Issue 09 JULY 2015

Companies that are eliminating artificial ingredients, flavours and color Taco Bell and Pizza Hut Taco Bell and Pizza Hut are getting rid of artificial colors and flavors, making them the latest big food companies scrambling to distance themselves from ingredients people might find unappetizing. Instead of "black pepper flavor," for instance, Taco Bell will start using actual black pepper in its seasoned beef. The Mexican-style chain also says the artificial dye Yellow No. 6 will be removed from its nacho cheese, Blue No. 1 will be removed from its avocado ranch dressing and carmine, a bright pigment, will be removed from its red tortilla strips.

Critics say the purging of chemicals is a response to unfounded fears over ingredients, but companies are nevertheless rushing to ensure their recipes don't become disadvantages. In recent months, restaurant chains including McDonald's and Subway have said they're switching recipes for one or more products to use ingredients people can more easily recognize. Companies are realizing some ingredients may not be worth the potential harm they might cause to their images, given changing attitudes about additives. Additionally, the removal of artificial ingredients can be a way for companies to give their food a healthy glow without making meaningful changes to their nutritional profiles. For instance, reducing salt, sugar or portion sizes would have a far bigger impact on public health. Taco Bell and Pizza Hut are owned by Yum Brands Inc., which had hinted the changes would be on the way. As for KFC


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NO MORE

Nestle will also provide tips on healthy eating on the packaging on its products. Kraft Kraft Foods is revamping its familyfriendly macaroni and cheese meal, removing synthetic colors and preservatives from the popular boxed dinner.

whether the fried chicken chain would also be removing artificial ingredients is still a question. Pizza Hut says it will remove artificial flavors and colors by the end of July. It said it will start listing all it ingredients online once the changes are completed. Taco Bell says it will take out artificial colors, artificial flavors, high-fructose corn syrup and unsustainable palm oil from its food by the end of 2015. It says artificial preservatives will be removed "where possible" by 2017. Subway Subway removed a chemical used in yoga mats and shoe soles from the bread of it its popular sandwiches. "The complete conversion to have this product out of the bread will be done soon," Subway said in a statement. The company said it was already in the process of removing azodicarbonamide as part of our bread improvement efforts. The World Health Organization has linked this chemical additive to respiratory issues, allergies and asthma, and it is banned in Europe and Australia. Azodicarbonamide is legal in the United States and Canada. "It helps ... produce the air within the foam of a yoga mat and does the same thing for bread." Subway has pledged to spend $41 million over three years for its healthier

Vol.10 Issue 09 JULY 2015

kids menu with ads using the Muppets, according to Business Week. Its kids menu includes many healthy items, such as fruit, vegetables, non-sugary drinks and lean dairy products. Case reports and epidemiological studies by the World Health Organization say that azodicarbonamide can induce asthma, other respiratory symptoms, and skin sensitization in exposed workers. Nestle Nestle would remove artificial flavors and reduce salt by 10 percent in its frozen pizza and snack products by the end of this year.Nestle would remove artificial flavors and certified colors from its chocolate products, such as Butterfinger and Baby Ruth bars, by the end of the year.

The move comes at a time when Kraft is battling sluggish demand as consumers shift to brands that are perceived as healthier, including foods that are organic or less processed. The company has also been targeted by consumer advocacy groups, pressuring it to remove the artificial food dyes from its products. The changes will be effective by January 2016 for “Original Kraft Macaroni & Cheese� in the United States. The company is also removing synthetic colors by the end of 2016 in Canada for its Kraft Dinner Original. Kraft also said it is replacing synthetic colors with those derived from natural sources, like paprika, annatto and turmeric. General Mills General Mills, maker of Cinnamon Toast Crunch and Original Cheerios cereals, will stop using artificial flavors and colors in almost all of its cereals, joining the food industry's move towards products perceived as healthier. The packaged foods maker said it plans


32 www.agronfoodprocessing.com

NO MORE

citizens. They want to provide a healthy product, something that tastes good and something that they can make a profit with so the company survives. They’re juggling a lot of different components in this issue.

to have 90 percent of its cereals free of artificial flavors and colors by 2016, up from about 60 percent currently. The company's Trix and Reese's Puffs cereals will be among the first to use ingredients such as fruit and vegetable juices, peanut butter, cocoa and natural vanilla flavors, and will be soon available Decision to remove artificial ingredients a challenge Several major food companies have announced plans to remove artificial ingredients, such as color and flavor, from their products within the next few years. It’s a move driven by consumer demand and one that will be a challenge for the industry. The industry is going to react to what consumers want, because now the consumers have become aware thus creating a challenge for these companies as they switch from artificial colors is trying to find the right natural pigments that fit and withstand the process for making those products. For example, artificial colors are more heat stable and hold their color longer. Natural pigments are more sensitive to environmental conditions, such as heat, acid and oxygen levels or light. The switch may change the flavor, taste, color or texture of the product, as well as the price.

Vol.10 Issue 09 JULY 2015

Natural ingredients are often more expensive. Like the price difference for vanilla ice cream made with vanilla extract, compared to the artificial ingredient vanillin, which is much cheaper. Not only is there a difference in cost, but vanilla extract’s flavor is not as strong. This is just an example of the factors that companies must address in making this move. It also explains why the change won’t happen overnight. It’s going to take time for some of these companies to find all of the replacement ingredients that fit and in doing this; companies want to be viewed as good

Companies are making the change in response to sales and consumer feedback. Consumers want a “clean label” that’s easy to understand, not a lengthy list of unknown, hard-to-pronounce ingredients. It’s no different than the push for antibiotic-free poultry or the Food and Drug Administration’s recent ruling to remove partially hydrogenated oils from its “Generally Recognized as Safe” list. While many consumers may applaud the move, there is a risk for companies in making this change. If the natural ingredients dramatically change what consumers like most about the product, they’ll stop buying it. If a brand name is the gold standard leader and they start messing with it, often that can create problems, unless their product development people are really good and can keep the same color, taste, texture, and viscosity, whatever the sensory characteristics are for the consumer. Time and sales will determine how companies respond if consumers don’t like the new, natural ingredients. Similar to soft drink companies that have introduced new recipes, they may revert back to what is most popular.


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Why

Punjab

is exporting

wheat

and importing

flour

Vol.10 Issue 09 JULY 2015

Punjab, the food bowl of the country, is a net importer of atta. With wheat procurement touching 100 lakh tonnes this year, and with wheat stocks lying in the open for want of adequate covered storage, reports of atta being imported defy economic logic. Punjab is the biggest contributor of surplus food in the country to the Food Corporation of India (FCI). Reading a news report in the Hindustan Times, ‘Remove existing disconnect between farmers and markets’ (July 2), what caught my eye was a statement by financial commissioner development, Suresh Kumar, wherein he said that “despite being the food bowl of the country, we are a net importer of wheat flour (atta).” He was addressing an outreach programme for agro and food processing industry in Chandigarh. FLOUR FROM MP I had always feared this. Knowing that most urban households in Punjab opt for atta from Madhya Pradesh, which

STATE LOSS

is generally perceived to be devoid of chemical pesticides and fertilisers, there were enough reasons to believe that Punjabis were relying more on atta imports. The MP wheat at your nearest chakki is priced around Rs 32 a kg against Rs 23 a kg for the Punjab wheat and yet the market for MP’s Sharbati wheat is growing. There is also a huge demand for packaged and branded atta which, too, is largely coming from outside. Whatever the reasons, the fact that Punjab had relied more on import of atta to meet the basic food needs of its people points to a lopsided industrial development policy. Forty-five years have passed since Punjab took the lead to usher in the Green Revolution, and still failed to provide incentives to create adequate processing facilities. There used to be more than 400 flour mills, of which hardly 60 to 62 are operational now. If only Punjab had created adequate processing facilities, both in small


34 www.agronfoodprocessing.com

and large scale, it could have not only reduced the burden of carrying excess stocks year after year but also cut on resulting environmental costs besides generating employment. The unnecessary transportation of food adds on to food miles, a term that denotes the distance food travels before it reaches your table. Some years back, the FCI had estimated that food travels roughly 1,500 km before it reaches a distant household. By allowing wheat to unnecessarily criss-cross across borders only adds to unwanted food miles and thereby multiplies costs. Well-known economist Dr SS Johl had sometimes back calculated that the by exporting 18 million tonnes of wheat and rice from Punjab in 2003-04, the state actually exported 55.5 trillion litres of water. On an average 3,000 litres of water is required to produce 1 kilo of wheat. Localisation of environmental costs, therefore, is very important, especially at a time when all studies point to a bleak water future for the grain bowl. Also, food processing industry as a policy imperative must be set up in and around the production areas. At the national level, most of the wheatprocessing mills are situated in southern India whereas wheat cultivation is confined to northern and central regions.

Vol.10 Issue 09 JULY 2015

It is primarily for this reason that there is a growing demand from food processing industry to import wheat from Australia and Europe. The landed price of imported wheat in Chennai for instance is much cheaper than the wheat transported all the way from Punjab. This year, the food processing industry has already contracted for imports of 500,000 tonnes of wheat from abroad. The proposed ITC wheat processing unit in Punjab having a capacity of one million tonnes is, therefore, a welcome initiative. More such wheat processing units are required. REDIRECT POLICY FOCUS

STATE LOSS Since consumer demand is gradually shifting towards safe food, if the increasing demand for MP atta is any indication, Punjab also needs to redirect its policy focus. Not only urban consumers, even farmers are known to keep aside a patch of their land for their own consumption in which they don’t douse the standing crops with chemical pesticides and fertilisers. By encouraging people to buy chemicalfree wheat grown within the state, Punjab will considerably lessen its burden of carrying stocks. I have two suggestions. Punjab must identify and encourage farmers to shift to non-chemical farming. This should be considered as part of the crop diversification strategy. Like a compensatory package of Rs 4,000 per acre to those who volunteered to shift from paddy to maize, Punjab should provide Rs 4,000 per acre to those farmers who shift from chemical to non-chemical farming systems. Since it takes 3-4 years and even more for any chemically farmed land to get the status of organic, the need is to market the produce as pesticide-free in the initial years. Much of the MP wheat that is sold in Punjab is just on faith and goes by the claims of chakki owners. People are not looking for organic certificates. The task, therefore, is to begin rather than debate on how to provide for certification. Newspaper ads inviting consumers who want pesticidefree wheat to pay an advance fee is another way that has been successfully tried at a number of places. Source: HT


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INDIA CHECK

Before the Maggi Noodles Scare: Look at What the U.S. FDA

Found in Indian Snacks

I

ndian regulators’ findings that samples of Nestlé Maggi instant noodles contained impermissibly high levels of lead stunned middle-class consumers this month. But long before India yanked the product off store shelves, U.S. foodsafety inspectors had deemed hundreds of made-in-India snacks unfit for sale in America. Data on the website of the U.S. Food and Drug Administration show that it rejected more snack imports from India than from any other country in the first five months of 2015. In fact, more than half of all the snack products that were tested and then blocked from sale in the U.S. this year were from India. Indian products led the world in snack rejects last year as well.

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Mexico, a much larger trading partner of the U.S., was second in terms of rejections this year, followed by South Korea. China — whose exports to the U.S. are worth ten times as much as India’s — was a distant eighth. And it’s not just snack foods. The U.S. FDA has rejected all sorts of imports from India, including everything from cosmetics to drugs to ceramics. The Wall Street Journal made with

Datawrapper So why did the Indian snacks fail the U.S. FDA tests? The reasons vary from problems in


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INDIA CHECK

A.K. Tyagi, a senior-vice president at Haldiram’s, said its food “is 100% safe and complies with the law of the land.” Discrepancies, he said, arise because food-safety standards differ in India and the U.S. “A pesticide that is permitted in India may not be allowed there. And even if it is, they may not allow it in the same concentration as it is here,” he said.

packaging and labeling to alleged contamination. The FDA website says Indian products have been found to contain high levels of pesticides, mold and the bacteria salmonella. In one colorful description this February of a product from the western state of Gujarat, which the FDA identified only as “snack foods not elsewhere mentioned,” it said it blocked the import as it “appears to consist in whole or in part of a filthy, putrid, or decomposed substance or be otherwise unfit for food.” While India’s national food-safety watchdog doesn’t monitor exports, it has been rushing to test everything from soups to pastas to instant noodles sold domestically in the wake of the Nestlé findings. Sales of Nestlé’s Maggi noodles were officially blocked across the country last Friday, after the Food Safety and Standards Authority said it found them “unsafe and hazardous for human consumption.” Nestlé on Thursday challenged the ban in court and said its own tests hadn’t detected elevated levels of lead, as authorities alleged. Heightened concern over the safety of processed food in India has pushed the Indian authorities into a testing frenzy. But its chief says he doesn’t have the manpower or facilities to check the millions of packaged products that fill the kitchen cabinets in the world’s second-

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most populous nation. “Food-safety is a very sensitive thing in developed countries,” so countries like the U.S. have better food-safety infrastructure, said Yudhvir Singh Malik, the chief executive of the authority. “A lot of that sense is still to come in developing countries.” Most Indian snacks rejected by the FDA this year were from the Nagpur-based food company Haldiram’s. Among the rejected Haldiram’s products were some sugar candies and salty Indian snack mixes. The FDA said on its website that it rejected the Haldiram’s products because it found pesticides in them.

Indian baked snacks also had troubles getting into the States. Out of 217 imported baked products rejected by the U.S. FDA so far this year, more than half were made in India. One of them was a biscuit pack manufactured by India’s largest biscuitmaker, Britannia Industries Ltd. On its website, the FDA said the packaging of the product didn’t list all ingredients and failed provide consumers adequate nutrition information. Britannia, in response, said it didn’t authorize the shipment. “Britannia exports to the U.S. only out of U.S. FDA registered factories in India and meets product/labeling standards,” the company said in an email. “These may be instances of shipments made by independent exporters based out of India.” Source:WSJ


DUMPING GROUND

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WTO CHALLENGES FOR INDIAN DAIRY FARMERS Dr. N.G. Hegde BAIF Development Research Foundation Pune 411 052

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hile coping up with the problems of food insecurity, India is also facing a new challenge posed by the World Trade Organisation (WTO), which can turn our country into a dumping ground for all the commodities from the surplus nations, thereby ruining the economy of our local industries and agriculture. We have already started feeling the effect in the form of a variety of fruits and merchandised goods available in our retail outlets, causing tremendous confusion in the minds of the common customers. Blood red in colour, shiny apples from New Zealand or China, purchased by paying 100% more over the native varieties have disappointed many of us due to their poor taste. In this process, both the consumers and the native apple producers have suffered, while the

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benefits have gone to the farmers in other countries and a few importers who had their share of sales commission. The time has now come for us to act unitedly and efficiently to face the threats posed by the WTO and establish our supremacy in the International market. Way back in 1947-48, the developed

countries in the world had established a working understanding for export and import of various commodities through a common agreement called the General Agreement on Tariffs and Trade (GATT). Over the past 50 years, there have been eight round of talks to modify the agreement. The last agreement was in Uruguay in 1994. In 1995, a permanent trade organisation known as World Trade Organisation was established, represented by 124 countries to facilitate fair trade between the member countries. As India was a signatory of GATT, she automatically became a member of


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DUMPING GROUND

Our Concern What are our problems? Why are we threatened by the international dairy market? The main problems are high cost of milk production, high cost of milk processing and marketing and poor quality milk due to unhygienic milk handling. Hence we need to address these problems on priority.

WTO. Membership of WTO was unavoidable as our country had been depending on export and import for coping up with the domestic needs of technology, machinery and consumer goods. In the absence of the WTO membership, we had to negotiate separately with each and every country, which could have placed us at a disadvantageous position. Thus there was no harm in becoming a member of WTO, and it did provide us a strong base to participate in international trade. However our inability to put forth our demands strongly during the WTO negotiations worked against us. Impact of WTO on Dairy Sector Dairy is one of the sectors affected by WTO. During the negotiations in 1985, we failed to bargain and agreed to allow import of milk and milk products under zero percent bound duty. Subsequently, our new Exim Policy which brought some essential milk products under Open General Licence, further facilitated import. Initially, there was no threat from import, as the international price for milk and milk products was high compared to the prevailing price in India. Subsequently, many developed countries were able to exert pressure on their governments to provide subsidy to dairy farmers which helped them to lower their price of dairy products. Furthermore, new technological interventions and improved management practices helped the farmers in the Western Countries as well as in New Zealand to bring down the cost of milk production. Thus the price for dairy products in the international market fell

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far below the price paid by consumers in India. This provided good opportunities for the traders to import cheaper milk products and thereby earn high profits, at the cost of Indian Dairy Farmers. This is the background of WTO and its impact on our farmers. As long as we continue to remain a member of WTO, this threat will continue to bother us. In 1999, Indian traders imported 10,000 metric tons of milk powder and in 2000, we were threatened by the arrival of fresh milk from New Zealand at the landed cost of Rs.9 in Mumbai. Fortunately, the Government of India in its budget of 2001 has imposed heavy duty on milk and the problem has been halted temporarily. This duty will have to be abolished before the year 2006, as per the WTO agreement. Hence we have 5 years to gear ourselves for international competition. This is probably the last chance for our farmers to organise themselves and convert this challenge into an opportunity.

Reducing the Cost of Milk Production : The cost of milk production in India is high because the average milk yield of Indian cows is only 987 kg as compared to 6273 kg in Denmark, 5289 kg in France, 5462 kg in United Kingdom, 5938 kg in Canada, 7038 kg in USA and 11000 kg in Israel. Naturally, the European farmers do not have to spend five times more on their cattle just because they produce five times more milk over the cows in India. We often argue that it is easy for the European farmers to produce more milk because of cold weather which is conducive for the cattle. Israel has proved us wrong. The weather conditions in Israel are worse than India. The temperature in summer exceeds 470C-480C, while the temperature in winter is as low as 40C-50C. Inspite of such bad weather and severe water shortage, the average milk production of dairy cows is 11000 kg / lactation. This has been achieved through proper housing, feed and water management, apart from superior quality germplasm. The only disadvantage of Israeli cows is low butter fat. With increasing awareness on the health problems related to high fat diet, the


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western countries have started focussing on breeding cows for high milk protein. In this process, they have reduced the importance of butter fat. Israel has gone in for selection of cows for high milk and protein, while sacrificing butter fat. Today, the average fat content of milk in Israel is about 3.3 – 3.4%. The dairy farmers and consumers are happy that they get healthy milk at lower cost. Although fat content is low, the total butter production per cow per lactation is significantly higher than that of the cows in any other country in the world. India is still trailing behind in this area. We are still thinking of milk with 5% or 6% butter fat. We need to come up with a policy of encouraging low fat milk for general consumption and use buffalo milk only for a selected category of customers who insist on high butter fat. Then the cattle production can be specialised for healthy, high protein, low fat milk, at low cost through cross breeding of nondescript cattle owned by small farmers. Reducing the Cost on Milk Handling :

Presently, our dairy farmers get about Rs.7-8 per kg at their village cooperative. This milk is handled at several levels by co-operatives or private agencies till it reaches the mother dairy located in a large city for pasteurization. The milk is then sent to consumers through various outlets. In this process, the consumers have to pay almost twice the farmgate price i.e. around Rs.14-16. The present system is not only unhygienic but also expensive. There is good scope for reducing the number of agencies handling the milk to reduce the cost of handling.

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It is also necessary to look for an alternative model of milk processing by encouraging small dairies at taluka and district levels. Small dairies of 8000-10000 litres of milk capacity which can handle fresh milk distribution and processing for Indian and Western dairy products will reduce the cost of handling, maintain hygiene and add value to the product. Decentralised processing can create additional demand for the milk and generate employment at the grassroot level. A small dairy of this size should be able to generate year round employment for about 40 persons. A primary step in this direction is to set up a few such dairies on a pilot scale and study the advantages. With reduction in the cost of milk handling, the retail price of milk can be reduced significantly and this can help us to face the challenge of imported milk products. Clean milk production : Unhygienic conditions at the dairy farms are the reasons for poor quality milk in India. Such products cannot be exported even if there is good demand and surplus production in the country. Indian milk products have often been rejected in the export market due to unhygienic milking resulting in high microbial count. The quality of milk in India is affected by poor animal health, polluted food and water and unclean surroundings in the farm. It is therefore necessary to emphasize on all these aspects in the near future. Presently, most of the milch animals are not regularly screened for diseases and as a result, there is a great danger of some diseases being transmitted to human beings. Milking of cows and buffaloes which are often administered with antibiotics and chemical drugs will also affect the quality of milk. These problems can be prevented by taking up regular screening of livestock against

DUMPING GROUND various diseases. Emphasis should be given on preventive health care as well as curative aspects well in time using safer medicines. The quality of the feed should be checked regularly. Feed and water used in the dairy farms should be free from pollutants. This can be done through awareness and treatment of water wherever necessary. Keeping the animals clean, maintaining clean surroundings, use of clean vessels for milking and storage of milk are essential to maintain the quality of milk. There is also scope for introducing a small scale bucket type milking machine which is cost effective and helpful to produce clean milk without any direct contact with the farmers and the surroundings. Conclusion There is very little time for Indian dairy farmers to face the challenge of imported milk and milk products under WTO. Our farmers are not yet prepared to solve this problem. It is necessary to take immediate steps to reduce the cost of milk production by increasing the productivity of our animals. We also need to reduce the cost of transportation, storage and processing of milk by reducing intermediary agencies and by adding value to the produce at the block or district level. The quality of the milk should be of international standard which can be attained through screening of the livestock against important diseases and maintaining clean surroundings in the dairy farm. The policy of promoting the production of low fat milk for general consumption and high fat buffalo milk with high butter fat for selected purposes should also be considered in the general interest of the public, which will enable the farmers to improve their profitability. Finally, an effective Animal Husbandry Extension Service should be established to facilitate close dialogue with the farmers to understand their problems and solve them from time to time. Simultaneously, dairy farmers’ associations should be established and strengthened to acquire new technologies, understand the milk marketing scenario at the international level and find suitable solutions. Hopefully the task will be within our reach and so all we need is to work in this direction.


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I n d i a ’s O n l y M o n t h l y f o r A g r o & F o o d P r o c e s s i n g & A l l i e d S e g m e n t s

India’s First E Magazine log on to www.agronfoodprocessing.com

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

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How Nutraceuticals are contributing to good health Mrs. Gauri Iyer, “Head- Technical Services”, Kamani Oil Industries Pvt. Ltd.

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e are a

generation of health conscious individuals, ready to adopt any and all food cum dietary trends and fads - liquid diets, frozen yogurts, the baby food diet, and even Veganism are no strangers in India. With the instances of lifestyle diseases increasing every day, there is an increased awareness among the people about the link between health and nutrition, emphasis on the positive aspects of diet,obtaining optimum nutrition, and a growing desire for natural alternatives to traditional pharmaceutical and synthetic products. Owing to this, the latest craze to hit the health market in India is that of nutraceuticals – a kind of food supplement used to promote a healthy lifestyle and general well-being. Dr Stephen DeFelice coined the term "Nutraceutical" from "Nutrition" and "Pharmaceutical" in 1989. The term nutraceutical is being commonly used in marketing but has no regulatory definition. A nutraceutical item representsa food or part of a food that provides medicinal or health benefits, including the prevention and treatment of disease in addition to their innate nutritional and beneficial value. Isolated nutrients, dietary supplements, herbal products, may be referred as nutraceuticals. In India, the nutraceutical market is divided into functional food and functional beverages (68%) and dietary supplements (32%). Processed food products like oats, probiotics, nuts, tomato products, yogurt, sports and energy drinks fall under the

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functional foods label whereas vitamins, minerals, fibres and fatty acids, in the form of tablets and capsules make up the dietary supplements segment. Recent dietary trends in India hint at an increasing popularity of various nutraceuticals as part of a family’s daily diet to control symptoms of diseases and prevent them. The belief of ‘let your food be your medicine’ is catching up and urging consumers to switch to more natural and healthier dietary options. Nutraceuticals have been proved to help in boosting immune system, promoting healthy bones and teeth, preventing irregular bowel movements, providing energy, reducing the risk of cancer, cholesterol management, and increasing disease resistance. Nutraceuticalingredients like Omega-3 fatty acids (e.g. DHA), herbal extracts, certain vitamins, proteins and fibres can be targeted towards cardiovascular health or general cognitive health based on the formulation and the presence of other nutraceutical ingredients.

With public attention focussed on health, food manufacturers in India are looking for healthy alternatives. Keeping in mind these parameters, the research and development (R&D) team at Kamani Oils is working hard to manufacture healthier and more beneficial products and byproducts. Edible oils like the Riso Rice Bran Oil and trans free bakery fats like PuffLite,CakeLite and K-Lite enhance the nutritional value of food items, help to improve cholesterol levels and help keep heart diseases at bay. With responsible refining processes, these oils and fats retain their natural benefits and antioxidant – properties and fit perfectly into your daily diet routine.

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Vol.10 Issue 09 JULY 2015


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EXCLUSIVE INTERVIEW

We see

India as a very strategic market for us

- Goyal, Billerud Korsnäs BillerudKorsnäs is a leading provider of renewable packaging material and together with partners we create smarter packaging solutions that increase profits, excite millions of consumers and contribute to a sustainable future for generations to come. BillerudKorsnäs aims to be the challenger that delivers innovative and sustainable packaging solutions to a global market. The starting point is the pure, strong, light primary fibre from sustainable forestry in the north and considerable expertise in process and packaging technology, design and logistics. “Our offer is based on three important building blocks – firstclass packaging materials made from primary fibres, innovative packaging solutions and a global network of partners, who just like us, are driven by the passion to develop smarter packaging from renewable materials” says company. Of late we had a chance to interview Rajeev Goyal, Managing Director, Billerud Korsnäs (PUBL) (DMCC),

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ith an experience of 35 years in paper packaging and a master’s degree in paper technology where do you see global paper packaging industry stands today? I have enjoyed each and every day of my life that I have spent in the Paper & Packaging Industry and it has been a long journey of successes, challenges, optimizing on the opportunities that came my way and most importantly journey of learning. I have almost spent a lifetime in this Paper Industry. Globally, markets can be divided into 2 – Mature Markets & Growing Markets. Mature markets – investing heavily on Sustainable solutions and bio-degradable packaging solutions. Western Europe is a typical example of this market Growing markets – this market is in infant stage in terms of sustainable and bio-

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degradable packaging solutions but with a massively high potential market, growing at a very fast pace, and there is definite increase in awareness. I am particularly very optimistic on the growing market especially India. What are the solutions do you have to offer global food & beverage industry? We have 3 business areas , which have an offering for the Food & Beverage Industry. A. Packaging paper, under packaging papers we have four verticals mainly, scak solution, Bags solutions, Consumer laminates and Medical & specialities. B. Container board which is mainly for corrugated cartons for fruits and Vegetable exports and box solutions for heavy goods. C. Consumer board’s which is primarily Liquid packaging boards, cup stocks and

Rajeev Goyal, Managing Director, BillerudKorsnäs AB (Publ) DMCC Branch –Dubai & BillerudKorsnäs Packaging India Pvt. Ltd- Gurgaon, India is a man of great achievements. He spearheads all the four verticals within Packaging Papers Segment, in the entire Middle East, Indian sub-continent and one particular vertical in SEA and his responsibility includes Sales &Marketing, Business development, Financial Planning & Business Control, P&L and Administration of the two offices in these regions. This includes Planning and Execution of a segment based marketing strategies to sustain and develop the business profitably by way of more techno commercial emphasis & conceptual selling. Mr Goyal has a Masters Degree in Paper Science from Western Michigan University, USA, 1988 and has worked at Asia Pulp and Paper Company Ltd.,from 1995-99 on various senior level positions. Mr Goyal also worked in Ballarpur Industries limited for about 5 years in which he was Product Manager Corporate Marketing Division for more than 2 years. Mr Goyal started his carrier in Star Paper Mills Ltd in July 1980 as a Production Engineer.


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ith an experience of 35 years in paper packaging and a master’s degree in paper technology where do you see global paper packaging industry stands today? I have enjoyed each and every day of my life that I have spent in the Paper & Packaging Industry and it has been a long journey of successes, challenges, optimizing on the opportunities that came my way and most importantly journey of learning. I have almost spent a lifetime in this Paper Industry. Globally, markets can be divided into 2 – Mature Markets & Growing Markets. Mature markets – investing heavily on Sustainable solutions and bio-degradable packaging solutions. Western Europe is a typical example of this market Growing markets – this market is in infant stage in terms of sustainable and biodegradable packaging solutions but with a massively high potential market, growing at a very fast pace, and there is definite increase in awareness. I am particularly very optimistic on the growing market especially India. What are the solutions do you have to offer global food & beverage industry? We have 3 business areas , which have an offering for the Food & Beverage Industry. A. Packaging paper, under packaging papers we have four verticals mainly, scak solution, Bags solutions, Consumer laminates and Medical & specialities. B. Container board which is mainly for corrugated cartons for fruits and Vegetable exports and box solutions for heavy goods. C. Consumer board’s which is primarily Liquid packaging boards, cup stocks and folding box boards. Under packaging papers vertical we have the following offers: 1. Packaging Paper – for Food & Beverages Industry in terms of Yoghurt Lids solutions, Ice Cream Cone Sleeves Solutions, Butter packaging. Paper based flexible packaging solutions for products which needs a very strong paper and highest quality in terms of high puncture resistance and so on and so forth 2. Packaging Paper – Bags & Sacks solutions,

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which are green in nature, come from cultivated forests for products and applications such as – Flour, Sugar, Milk Powder, Tea, Chemicals, Cement, Mortar Carbon, Cocoa Powder, Rice and also Carrier Bags for the Retail Industry – all of which is sustainable solution and 100% recyclable as it is made of Paper from Virgin Pulp which comes from our own cultivated forests in Sweden and all with FDA Certifications. How do you look at Indian food & beverages sector for the growth of your company? India has a huge potential for growth and development. We see India as a very strategic market for us, both in terms of prospective growth and opportunities available for us but most importantly in terms of providing high quality Packaging grade paper which has not been available in this market. This is now the right time to be present in India and this is the reason why I did not decide to launch in India 5 or 10 years back and I launched this company in India in March 2015. I have very high hopes of this market and in the coming 10 years, India should be in the top 5 market for us as well. With the rise in Middle Income Group household, emergence of Nuclear Families, growing disposable income, rise in organized trade & very favourable and impactful government policies and legislation, India is all set to become a super power and will make way for massive growth and development and all companies will get to benefit from this. How would you assess the importance of food safety in food & beverage packaging? Food safety is of utmost importance in the Food & Beverage Industry. The packaging should make sure there is no migration of toxic material in the Food and that Paper is free from heavy metals and optical dyes (OBA) optical brightening agents to make paper look white. All these dyes are very toxic in nature and should not come in direct contact with food. Recycle paper being used in India is tough, because it is virtually impossible to control recycled materials in terms of inputs, given the conditions here.

EXCLUSIVE INTERVIEW

Prime objective of any packaging, which also includes Food & Beverages Packaging is A) to be safe for Human Consumption, B) has to come in direct Food contact hence should be of pure nature, for example in case of Papers, be made from virgin Pulp like ours rather than being made from recycled Paper / Pulp & C) be environmental friendly and sustainable. Food safety in Food & Beverages segment is of utmost important and we put all our priorities on the same and for us Sales, Numbers always come second after Environmental & People concerns. Is recycling always the most economically and environmentally sensible options for packaging materials or we have other ways as well? When it comes to Paper recycling, it is very easy and economical. For example – papers used for powdered products can be used for


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NEWS

Nitish Kumar demands for investment in Food Processing

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entioning his dream of "one food item from Bihar in every Indian's plate", Chief Minister Nitish Kumar exhorted entrepreneurs to establish food processing units in the state and promised all help, including subsidies to them. "My dream is to have one food item from Bihar in every Indian's plate. There are huge possibilities in food processing sector here. Entrepreneurs should consider setting up industries here. We will provide all help. We also have plans to provide subsidies in this sector," Kumar said. The Bihar chief minister was speaking

at 'Agriculture and Food Processing conclave' organised by ASSOCHAM and the state government. He rooted for food processing units saying better processing will cut down wastage of agricultural produce, add value to production, raise income of farmers and generate employment. He added that 76 per cent of Bihar's population was dependent on agriculture. The population is increasing, but on the other hand, agricultural productivity was also going up due to state government's policies, as well as, a 10-year agriculture road map. "In this scenario, food processing industries will also lead to better development of agriculture. The state is blessed with fertile soil, good climate, availability of water and hard working people. Food processing units will not have any shortage of primary products,"

he said. Kumar, however, said that food processing should be of "good quality" and efforts should be made to develop brands in this regard. Pointing out the need for food processing units, Kumar said all the maize from Bihar was going outside for processing and returning as poultry feed, which people buy here. He also said there were many possibilities with regard to food processing in litchi, mangoes, betel, rice and several other crops. The chief minister said seed replacement taken up by the state government has led to a big jump in productivity, as well as, overall production in various crops. The comprehensive agriculture roadmap was focusing on increasing the income of farmers, storage facilities, processing and marketing.

New Interactive Process Diagrams Highlight SPX Expertise in the Food & Beverage Market

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PX, a leading supplier of process technology for the dairy, food and beverage industries, has recently enhanced its web presence to better reflect its comprehensive product portfolio and help customers quickly find the product and technology information they need. CHARLOTTE, USA, June 10, 2015 – Incorporating brands such as Anhydro, APV, Bran+Luebbe, GerstenbergSchröder, Seital, e&e, Lightnin and Waukesha Cherry-Burrell;

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SPX has a long history in supplying leading processing solutions across dairy, food and beverage applications. Bringing its wide product portfolio together under the SPX brand, the business has recently enhanced its website to better reflect its total solutions capability and help customer’s more easily understand the scope and benefit of the technology it provides in several key applications. The new pages are divided into four main categories: Dairy Powder Nutrition, Liquid Dairy Nutrition, Processed Foods, and Dairy & Vegetable fats. Users can select their area of interest and quickly drill down through pictorial and written menus to find their area of interest. The pages show process diagrams to allow users to quickly select one area of the plant to find more information about specific equipment, systems, technologies and solutions. The new pages are intuitive to use

and clearly show the breadth of SPX’s technology for food and beverage processes. SPX’s large global presence is supported by a comprehensive service network and a continuous program of research and development that has delivered some game-changing technology to the food processing industry. Its technology and services focus on ensuring reduced waste, lower environmental impact, efficient and high quality processes, and food safety. SPX’s leading dairy and food technologists and state-of-the-art innovation and design centres provides proven pilot plant technology for process development, complete plant design and manufacturing capabilities. These help give its customers a competitive edge by optimizing processes, getting new products to the market quickly, ensuring flexible production and producing desired end product characteristics.


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NEWS

FDA to cut Trans fats from processed Foods, gives three-year timetable

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he U.S. Food and Drug Administration made good on its proposal to effectively ban artificial trans fats from a wide range of processed foods, from microwave popcorn to frozen pizza, saying they raise the risk of heart disease. Under new FDA regulations, partially hydrogenated oils, which have been shown to raise "bad" LDL cholesterol, will be considered food additives that cannot be used unless authorized by the FDA. The regulations take effect in three years, giving companies time to either reformulate products without partially hydrogenated oils or petition the FDA to permit specific uses of them. Following the compliance period, no partially hydrogenated oils can be added to human food unless they are otherwise approved by the FDA. The food industry has begun preparing a petition seeking approval for limited use of trans fats in certain products, such as decorative sprinkles, the industry's trade group, the Grocery Manufacturers Association, said. The group declined to give details about its petition and what other products were involved, but expressed satisfaction with the FDA's overall action and 3-year compliance period.

"(The) FDA has acted in a manner that both addresses FDA's concerns and minimizes unnecessary disruptions to commerce," it said in a statement. Efforts to remove almost all remaining traces of Trans fats from the food supply will be worthwhile, Michael Taylor, the FDA's deputy commissioner for Foods

and Veterinary Medicine, said in a media conference call. "The public benefits far outstrip costs of compliance." Under current law, food additives cannot be used unless they have been approved in advance by the FDA or are generally recognized as safe. Such substances do not have to be approved before being used. In 2013 the FDA made a preliminary determination that partially hydrogenated oils, the major dietary source of trans fat in processed foods, are no longer recognized as safe because they increase

the risk of heart disease. The oils are formed during food processing when hydrogen is added to vegetable oil to make it more solid. Reducing their use could prevent 20,000 heart attacks and 7,000 deaths, the agency said. Currently, foods are allowed to be labeled as having “0� grams trans-fat if they contain less than 0.5 grams of Trans fat per serving. The food industry has reduced its use of Trans fats by 86 percent since 2003, according to the grocer’s trade group. The reduction was spurred in part by the FDA's requirement, in 2006, that trans-fat levels be disclosed on package labels and by New York City's move to curtail trans fats from restaurant meals. The industry has reformulated many products using palm, sunflower, safflower and other oils. But there are some products that have relatively low levels of Trans fats and cannot easily be reformulated. Food companies are hoping to persuade the FDA that such products meet the agency's food additive safety standards. To do that, they must prove with reasonable certainty that the products cause no harm. Naturally occurring trans-fat found in milk and certain meet products would not be affected by the rules.

NRI investors show keen interest

in Bihar's food processing sector

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ndians living abroad have shown keen interest to invest in Bihar's food processing sector, state Industries Minister ShyamRajak said. Rajak, who led a delegation of Industry

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bodies from Bihar to Johannesburg to take part in SAITEX (South Africa International Trade Exhibition), said that people showed particular interest in processing of Litchi. Many showed keenness in maize too, he said adding that more than 900 companies from 45 countries participated in the exhibition.

The minister said that the delegation held meetings with investors in South Africa to whom they told about policies in the state and positive conditions for investment. Rajak said they assured potential investors that land would not be a problem if they come to the state to set up units.


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NEWS

Italian Parmesan cheese rescued by Dairy and Milk tradition of Punjab new heights. With the boom in the economy came a large number of Sikh immigrants. The local dairy farmers were impressed by the respect and skill with which immigrants handled their animals, while the workers who were moving to Italy were impressed by the handsome wages and free housing offered to them, reports the BBC.

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ith the Italian economy booming in the 1980s, the youngsters of Po Valley, which is home to its famous Parmesan cheese, started turning their backs on what they considered 'menial, unskilled' work, throwing the dairy industry in the region into serious jeopardy. However, when the Italians needed help the most, farmers from Punjab stepped in to revive the dairy sector and take it to

This new breed of farmers was not afraid of hard work or unsociable hours and did not need to speak Italian to milk and take care of cows. And with this, the Po Valley dairy industry was revived. Elena Carletti , who is the mayor of the town of Novellara, further felt that the large number of Sikhs who settled in the region were most attracted by the territory itself, with the BBC quoting her as saying that the Sikh farmers are reminded of

Punjab due to the area’s ‘flat-ness’, its heat, humidity and the kind of agriculture. Carletti further opines that the immigrant labour force was fundamental to maintaining and preserving traditional cheese production, adding that it would have been ‘impossible’ to preserve without the support of people from India. The Novellara municipality was also the first in Italy to grant permission to build a Gurdwara, which eventually opened in 2000. And thanks to their relief work after the 2012 earthquake that hit the region and their volunteering in Civil Protection programmes, Carletti is firmly of the opinion that the Sikhs are part of their community. “They are Italians,” the BBC quoted her as saying.

Parag grows business @ 35% CAGR focuses on dairy products "Last fiscal, the turnover from the cheese segment was Rs 340 crore and this business is growing 35% CAGR (compounded annual growth rate) for us," chairman of ParagDevendra Shah said.

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airy player Parag Milk is betting big on value added products such as cheese and ghee to fuel its growth.

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Ghee and cheese account for nearly half of the company's turnover and their contribution stood at Rs 750 crore last fiscal against the overall

turnover of Rs 1,500 crore. In addition, the company is also betting big on the beverages space. As per estimates, the dairy beverages market in India is estimated at three million litres a day with a market size of Rs 5,500 crore and is growing at 25% in volume terms every year. To capture a slice of this growing market, the company recently launched Go Buttermilk southern spice. Parag is planning to close its books with 2,400 crore in revenues this fiscal. The company has two plants one near Chittor in Andhra Pradesh and one near Pune in Maharashtra. The total daily capacity of both these plants 20 lakh per day.


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NEWS

Mahindra Group to stepwise roll out its Dairy business in coming months

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he auto-to-aerospace conglomerate Mahindra Group is all set to roll out its dairy business in the next few months, starting with milk and milk products, as it looks to expand its agribusiness and grab a slice of the 3-lakhcrore dairy industry. The company will not be buying cattle, but will source milk directly from the farmers. “We are starting our own setup in Indore, Madhya Pradesh, from where we will pickup milk. The initial plan is to look at outsourcing the processing part and once we are able to get our supply chain right, then we will do the next jump, that is investing in our own plant,” said Ashok

Sharma, president and chief executive, agri, Africa and South Asia operations, Mahindra & Mahindra. Apart from milk, it will also focus on value-added products like dahi (curd) and butter milk. Starting with Indore, the company plans to expand the business to other regions in phases. India’s dairy business is highly competitive with many well-entrenched national and regional players. Sharma believes its key to success will be to ensure good quality of supplies, which the company has ensured by directly working with farmers. M&M, the world’s largest tractor maker by volumes, is already a strong player in the agri-business, supplying seeds and technical inputs to farmers, through Mahindra Shubhlabh Services. It is also working directly with farmers to procure grapes and Mahindra Shubhlabh is the largest grapes exporter. In the domestic market, M&M has a branded fruits business under the brand Saboro. For starters though, the company will

sell milk through wholesale channel, before launching a retail brand. “In the beginning, we will do generic trade of milk. Once we have reached a certain scale, and then we will introduce a brand,” said PawanGoenka, executive director, M&M. Strong growth in the dairy business in the last few years, and huge future potential given a large-scale unorganized milk procurement chain, coupled with M&M’s already strong linkages with farmer, is driving the company’s expansion. M&M was earlier looking at acquisitions to enter the dairy space, but decided to go solo to start with. “We have our eyes open for M&A (mergers and acquisitions). But we didn’t find a suitable buy. So right now we are developing on our own. If we get a good opportunity we will be open to buying,” said Goenka. “The organized dairy sector in India has experienced strong value growth of 15% per annum over the last five years,” a report by Rabobank International had said.

Mother Dairy claim U.P. Food and Drug Administration tested on “loose Milk samples collected at village level”; resend Milk samples for tests

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other Dairy denied allegations that detergent was found in one of the samples of milk picked up from its collection centres, saying it has sent it for retesting in a lab in Kolkata. A day after the U.P. Food and Drug Administration said it had found detergent in one of the milk samples of Mother Dairy, the cooperative said the test was done on “loose milk samples collected at village level” which were yet to be accepted by it. “The first test was conducted in Meerut by U.P. FDA and it found solid not fat (SNF) and there was no adulteration. We questioned SNF and sent the same samples for retesting to a lab in Kolkata,

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we are still awaiting the results,” Mother Dairy managing director S. Nagarajan told reporters in New Delhi. Mother Dairy said the milk sample, which the U.P. FDA claimed to find presence of detergent, was drawn even before reaching the chilling centre where the first level of testing happens to ascertain the quality of milk for further processing. “It is unfortunate that loose milk samples collected at village level which are yet to be accepted for processing at our factory has been attributed to Mother Dairy brand,” he said, adding its milk was “safe for consumption”. Mr. Nagarajan said Mother Dairy has not yet got any official report of the tests from

the U.P. FDA and was awaiting for details on the same. He said Mother Dairy would take up the issue with central food safety regulator FSSAI. Mother Dairy said that it under goes four levels of testing at input, processing, dispatches and even at the market level. “Only after securing clearances from all quality measures, the milk is then accepted for processing and re-examined after processing, thus ensuring the product available is safe for consumption,” Mr. Nagarajan said. The U.P. Food and Drug Administration on Tuesday said it had found detergent in one of the samples of milk picked from Mother Dairy’s collection centres.


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NEWS

FSSAI famishes Market of Food launches

his festive season could see no new food and beverage products hitting the market. Pending product approvals to the tune of about 700 in the last year and a half by the Food Safety and Standards Authority of India (FSSAI), companies are left with no new products in the pipeline. The result is that food and beverage companies will have to count largely on old products for sales during the crucial festive season. “Nothing is moving in the market. Consignments that are being imported are held up at ports. If you apply for product approvals, that process, too, is getting delayed. A launch requires more than a product approval. It takes at least

six to eight months after the approval for a product to hit the market. A delay

products. He is also not the only one articulating these concerns.

there sets off a domino effect,” said AmitLohani, convener of the Forum of Indian Food Importers. Lohani is also managing director of Delhi-based Max Foods, which imports packaged food

A senior executive at a multinational food processing company confirmed the festive season this year would be dry for firms in the sector. “While launches vary from company to company, on an average at least three to four products are launched every year by the F&B players. During the festive season, the pace of launches goes up since the propensity to spend is high. This year, there is unlikely to be any action on that front since there is already an enormous backlog of approvals,” he said. He declined to specify which products from his firm were awaiting approval.

FSSAI proposes fixing

permissible limit for lead content

in Fruits, Pulses, and Juices

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water, fish, salt, olive oil, edible fats, and oils to ensure limited arsenic content. The agency has called for suggestions and objections on the proposals, that have to be submitted within 60 days before it finally notifies the norms for the mandatory implementation by all food operators.

he Indian food safety watchdog Food Safety and Standards Authority of India (FSSAI) has introduced a draft regulation that proposes a permissible limit of lead in a wide range of food products.

The move follows a crackdown on the popular Nestle noodle brand Maggi, which was found to contain more than seven times the permissible amount of lead, leading to a ban on the product across many Indian states. Under the latest notification, the agency said it would bring food items including mineral water, salt, jam, fish, and meat, among others, under mandatory compliance of maximum limits of heavy metals, such as tin, arsenic and cadmium.

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Meanwhile, the watchdog might soon bring alcoholic beverages under its observation, as it may come up with a draft notification on the standards of alcoholic beverages in the next two months. The FSSAI has specified the lead content for food items in milk, salt, fruits and vegetables, canned fruit juices, fish, poultry, meat, and pulses. The regulator will also look into mineral

Alcoholic drinks including whiskey, vodka, gin, beer and even brands of alcopop might come under the proposed regulation.


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NEWS

To regulate sources to prevent

Food contamination', check lead recycling

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he revelations of presence of higher-than-permissible levels of lead in certain batches of Maggi noodles is just the tip of the iceberg, said experts, highlighting the absence of stringent regulation of processes such as recycling of lead-based products as well as lack of public awareness for the snowballing effects on food contamination. Nestle India said it was withdrawing Maggi noodles in the country amid nation-wide scrutiny over more-thanpermissible limits of lead, but continued to maintain it was safe and that it would be back on store shelves soon. Some governments like in Gujarat, Delhi and Jammu and Kashmir had banned Maggi for 15-30 days and several others had called for tests on the popular noodles after a batch in a small town in Uttar Pradesh was allegedly found to contain higher-than-permissible levels of lead. Following the concerns, a host of retailers -- from neighborhood mom-and-pop shops to larger ones like Big Bazaar and WalMart -- withdrew it from their shelves. But is it enough? "It is a consumer-driven market. The demand for lead is so high in our country that the producer will use all sorts of unscrupulous method to supply," ThuppilVenkatesh, Chairman, Indian Society for Lead Awareness and Research (INSLAR) said. Venkatesh, Principal Advisor Quality

Council of India (QCI) and National Referral Centre for Lead Projects in India (NRCLPI) questioned the lack of inspection of recycling and disposal methods of lead-based products. "Today there is no check on handling of toxic materials. Where the inspection is when the neighbouring area is recycling lead and the environment gets polluted, Venkatesh asked. In fact, the major route through which lead, a heavy metal, finds its way into the food chain is via recycling of leadacid batteries which are commonly used in automobiles. Lead exposure not only damages the nervous system but also affects renal and reproductive systems and bones. "The main source of lead is through recycling of lead acid batteries, which can pollute air and water. From these two sources, lead can reach our food chain. The other sources of lead exposure are through oil paints, ceramic industry, toys and wrapping of food articles in newspaper," said Mukul Das, scientist and area coordinator, Food, Drug and Chemical Toxicology Group, Indian Institute of Toxicology Research, Lucknow. Apart from "strictly curtailing" the recycling of lead-acid batteries, Das said the waste material from oil paint, ceramic and toy industries should be treated before draining off. Another concern for states like Karnataka

and West Bengal is the use of lead-based paints on idols during religious festivities, which are then immersed in water bodies, pointed out Venkatesh. While the latest controversy has stirred the hornet's nest when it comes to food safety watch and regulations, experts on the subject like B. Dinesh Kumar from Hyderabad's National Institute of Nutrition said lead exposure does not discriminate between the rich and the poor. "In rural areas, children are exposed to duplicate samples of these packaged foods. How will you know where they come from? The machineries used in food processing and packaging, what about them? Also, they are, in comparison to the kids in urban landscape, malnourished," Dinesh Kumar said. "Besides, the backyard recycling of lead batteries and other products is commonplace in rural areas. This is just the tip of the ice-berg," he added. Dinesh Kumar, however, acknowledged that to keep pace with global progress, India has no way but to embrace modernization, including in food production. "But at the same time, it must like other countries adopt improved technologies. The procedures for monitoring must be made strict and methods should be updated," Kumar said, adding the same should apply to branding and labeling of products.

FSSAI comes heavy on food industry, rejects 500 applications product approval

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aggi controvery avalanching on others, the Food Safety and Standards Authority of India (FSSAI) has rejected the approval for about 500 products. The products, whose approval was denied by FSSAI include some of the majors in the field like Starbucks, Kellogg'andVenky's. Sources say that many of these products were found to have high levels heavy metals, caffeine and iron fillings.

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The list of the rejected products was handed over to the food safety commissioners attending the authority's central scientific advisory committee meeting. The info by FSAAI says, "The list of applications, which were received in FSSAI for product approvals, and where the proposals have been rejected on assessment of risk or safety of the proposed products by the Product

Approval & Screening Committee." Following the rejection of approval to their products, Starbuck management issued a statement. "Starbucks is committed to complying with the regulations in every market we operate in. Our products meet Starbucks own stringent global quality standards. we are diligently working with the FSSAI to provide the information relating to our pending applications they have asked for.'


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NEWS

Pea protein picks up as Healthy alternative Food Ingredient

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ea protein is on the rise as a healthful food ingredient for food companies looking to augment products with additional protein. Adding protein to foods has become more common as more companies respond to consumers' calls for healthier, more nutritious foods. Market consulting firm Frost & Sullivan estimates that from 2014 to 2020, pea protein’s revenue will see a compound annual growth rate of 11.3%. Between 2010 to 2014, pea protein was used in 2% of global food and beverage product launches with a plant-based protein, but from 2013 to 2014, that number of product launches jumped 49%. "Legumes, including peas, made up 34% of non-soy plant protein products globally in 2014," according to Frost & Sullivan. Another part of the appeal of pea protein

is the claims food companies can make when using it in their products, including gluten-free, no additives/preservatives,

non-bioengineered/non-GMO, kosher, and vegan. It is also not considered a major allergen, leading many product launches to make claims of being a low/ no/reduced-allergen food or beverage, popular in free-from focused consumer health circles.

These claims are vital for food companies looking to adapt to the renewed health focus consumers have for the foods they buy. This is particularly true for processed food companies which are trying to revitalize older brands deemed not as healthy or nutritious. Some studies have also shown pea protein to be comparable in some ways to whey protein, while being dairy-free and vegan-friendly. This would mean pea protein could find itself in the sports food and beverage industries too, such as protein bars and snacks as well as sports recovery drinks. Still another viable industry for pea protein is the cereal market. Being able to add more protein to cereal could be one way to lure consumers back, as some brands, like General Mills' Cheerios Protein, already have attempted.

packaged goods From idea generation to analytical and ageing testing, the network provides the seeds of innovation for finished products. Besides translating ideas into concrete prototypes, the team answers the technical challenges that can occur when switching from synthetic to natural ingredient solutions. In some cases, the applications can be tested by a panel of trained participants to confirm that the product meets market expectations. Answering global demand on a regional scale The SPRINGlab network consists of 7 regional application laboratories located around the world. The strength of this network relies on skill sharing and respect for regional specificities. “It is important for us to adapt our ingredients to local tastes and demands,” explained Roller. “If a company wants to launch a finished

product with only natural ingredients at an international level, we are able to help them navigate compliancy with local regulations and adapt their product to regional tastes”. The SPRINGlab network has already been implemented in China, Australia, France, the United Kingdom, Russia, Brazil and the United States with the objective to extend this network to other countries. A significant step in Naturex’s innovation process SPRINGlab is only one part of a comprehensive innovation strategy at Naturex. The company offers a full range of services to accelerate innovation. All new ingredients developed for the food and beverage industry are tested by the application laboratories. “It’s an additional proof of the ease of formulation of new ingredients designed by our research and development teams,” concluded Roller.

Naturex supports its clients in the race for innovation

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aturex has built a worldwide network of application laboratories known as SPRING labs to explore the endless possibilities for incorporating natural ingredients into food and beverage products. SPRINGlab stands for Sharing PRoductINGenuity laboratory. This unique network dedicated to natural products was designed to favor confidential projects to foster co-creation and address specific issues with tailormade solutions. “We think it is our role to help customers gain the race to innovation by bringing them a set of tools and services that shortens their time to market,” stated Marc Roller, Chief Science Officer at Naturex. “We are willing to share our expertise on natural ingredients and make our skills available to our clients’ brands,” he continued. SPRINGlAB: From nature to consumer

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NEWS

Company supplying Spice for Maggi noodles sacks 300 employees

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company in Punjab's Moga that supplied spices to Nestle India for Maggi noodles has retrenched nearly 300 temporary employees in the aftermath of the ban on the snack.

"Stopping of Maggi production at the Nestle plant has badly affected business of ancillaries in Moga area,'' said Paras Spices managing director Vinay Kumar. "We were supplying spices worth nearly Rs 50 crore annually but now we have to shut our unit for the time being.'' He said they have asked 300 temporary employees engaged in the production work to look for other jobs. "If the ban persists for long, it may affect our contract farming venture as well.''

Paras Spices Private Limited supplied nearly 200-250 tonne spices monthly to a Nestle unit in Moga for Maggi noodles and earned around half of its nearly Rs 120 crore revenue as a result.

Around 120 farmers are involved in contract farming for Paras Spices and grow aromatic, spice crops and chicory, a bushy herb used in preparing coffee, over nearly 500 acres. Kumar said the company processed and

roasted chicory for Nestle India along with spices. Farmer Gurbhajan Singh said they were earning Rs 50,000 per acre by producing spices. "We have been told that the contract with the spice producing company may be ended after the shutdown of Nestle units.'' Separately, a dozen flour mills in Moga and Jagraon were reeling under the impact of shutdown of the Nestle unit as well. After the Food Safety and Standards Authority of India (FSSAI) withdrew NOC (NonObjection Certificate) from four Indian companies who manufactured and sold beverages and energy drinks across India, Agra administration conducted a raid on Saturday at a wholesale supermarket based at NH-2 and seized more than 1600 Paper Boat range of juice and sent two samples of them for testing.

Chr. Hansen develops game-changing fermentation process for carminea

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armine is a long-established natural red pigment, used in a broad range of food and beverage applications. The production method relies on cultivation of the cochineal that lives on cactus plants. One kilo of carmine requires manual collection of 100,000 cochineals, which adds significantly to the cost of the natural color. Researchers from Chr Hansen, KU and DTU have now uncovered the complicated processes involved in the natural production of carmine. Using this insight and state of the art biotechnology the researchers have produced carmine by a modern fermentation process and Chr. Hansen is now filing patents to protect the

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technology. Cees de Jong, CEO of Chr. Hansen, says: “This is a potential game-changer for carmine production. The new technology is expected to make production of carmine more cost-efficient and thereby further lower the barriers for conversion to natural colors”. Excellent position to exploit technology

Fermented carmine is still some years away from commercialization, as the process needs further optimization. Cees de Jong, CEO comments: “When the technology is ready for use, Chr. Hansen has an excellent position to exploit it. Fermentation is our core competence and we are market leading within natural colors”.

For Updated News Everyday logon to

www.agronfoodprocessing.com


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NEWS

Govt allows bulk exports of rice bran oil

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he government allowed bulk exports of rice bran oil and removed quantitative restrictions on out-bound shipments of organic edible oils.

in India, without any restrictions of minimum export price or consumer packs, sources said, adding that this would not increase the cost of rice.

The Cabinet Committee on Economic Affairs (CCEA) has approved the Commerce Ministry's proposal to "allow unrestricted exports of rice bran oil in bulk", sources said.

Industry body Solvent Extractors Association Executive Director B V Mehta welcomed the move. He said, "This would help rice farmers as well as the country in realising full potential in this segment. India produces one million tonne (mt) of rice barn oil, but we have capacity to reach 1.6 mt."

It removed the "quantitative restrictions of 10,000 tonnes per annum on exports of organic edible oils", they added. Although India is a major importer of edible oils, the Centre has allowed bulk exports of rice bran oil to help small rice millers realise better price as demand of this cooking oil remains limited in the domestic market. India imports over 10 million tonnes of vegetable oil -- largely edible -- annually, which is some 60 per cent of the country's total demand.

On organic edible oils, the quantitative restrictions have been lifted to send a clear message to investors and the growers to invest in organic exports. Edible oil exports have been prohibited since March 17, 2008. Certain exemptions have been allowed from time to time. The government has now decided to allow bulk exports of rice bran oil, considered as premium edible oil with limited consumption

The exports will be subject to export contracts being registered and certified as 'organic' by the Agricultural & Processed Food Products Export Development Authority (APEDA).

Bunge to close Bradley, Illinois oil packaging plant

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unge North America, the North American operating arm of Bunge Limited (NYSE: BG), announced that it has decided to close its oil packaging plant in Bradley, Illinois. In addition, functions currently

Vol.10 Issue 09 JULY 2015

performed in the adjacent administrative building such as financial and customer services, regulatory and innovation, will be transferred to St. Louis, BNA's corporate headquarters. These changes are scheduled to occur in 18 to 24 months. "Our team in Bradley has worked hard to make the plant as efficient as possible, but it is more than a half century old and needs significant capital investment," said Tim Gallagher, executive vice president, Oilseed Value Chain. "As a result of our strong productivity initiatives, we found we can continue to provide our

customers with high quality products, reliable supply and strong customer service from our other U.S. packaging locations with less investment." Approximately 150 employees work in the oil packaging plant. The administrative office includes about 60 employees. Employees not being transferred to St. Louis will be able to apply for open positions at other Bunge facilities. Bunge's other U.S. oil packaging facilities are located in Decatur, Alabama; Decatur, Indiana; Ft. Worth, Texas; Kearny, New Jersey; Modesto, California; and Sandston, Virginia.


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NEWS

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Soyabean industry asks Jaitley to hike Edible Oils customs duty

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he Soybean Processors Association of India (SOPA) has requested Finance Minister Arun Jaitley to increase customs duty on edible oil imports to protect domestic interests, farmers, with global prices at five-year lows. The association pitched for an increase in customs duty to 25 per cent on crude edible oil and 30 per cent on refined varieties. “Soybean industry and trade is greatly concerned at the burgeoning edible oil imports of over 11 million tonnes (mt) annually with an import over Rs 65,000 crore … severely hurting the local producers and farmers,” said a note

addressed to Jaitley, dated July 8. Signed by the association’s Chairman Davish Jain, the note estimates soyabean imports to surge to 3 mt in the 2014-15 oil year, against domestic soya oil production of 1.6 mt. It urged the prioritisation of the sector in the ‘Make In India’ programme with edible oil consumption rising each year. “India has become a dumping ground for cheap palm and soybean oil. Even when the government increases duties marginally, the exporting countries reduce their export duties or their prices to offset the duty increase,” the note alleged. The Centre had raised import duty of crude and refined edible oil by 5 per cent each last December. However, price of soya oil slid 18.2 per cent between January and July. Soyabean meal exports fell 71.5 per cent this year, from 2.05 mt in 2013-14 to 0.58 mt between October and June. Indian soyameal is quoting $200/tonne higher than competitors, such as Argentina and Brazil. As of July 6, average local wholesale price

of crude soyabean oil was Rs 57,750/ tonne ($911.67/tonne), while globally the commodity was pegged at $730/tonne. “…this is directly affecting the farmers and industry who have to compete with cheap imported oil. Such low price of soybean oil is also hurting export of soybean meal, where India has become uncompetitive in the world market,” it added. The association had earlier estimated soyabean acreage to rise 7-10 per cent this Kharif season due to the timely monsoon onset and sufficient rain across Madhya Pradesh, which accounts for the bulk of soyabean production in the country. With most of the sowing completed in MP, there are concerns about rainfall, with parts of the State having gone dry over the last few weeks. As per the India Meteorological Department’s latest monsoon update, rain in the Central region is 8 per cent below normal. Parts of Eastern MP are likely to get heavy rainfall over the next two days with the rest of the State also likely receive more precipitation.

Agro Products are doing rather well in the Market today. Know why

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hares of milk producer Hatsun Agro Products hit fresh yearly highs after first quarter profit surged four-fold on the back of a jump in sales.

shares were traded before noon compared with a 5-day average of 16,300 shares.

Chennai-based Hatsun reported a PAT of `28.7 crore rupees for the April-June quarter compared with 7.3 crore rupees for the same quarter last year. Sales surged 20 percent to `867 crore rupees in the past three months compared with `703 crores in the year ago quarter.

Hatsun is India's largest dairy in the private sector. It makes ghee, paneer, ice creams and its products are exported to 38 countries across the globe. Hatsun's market capitalization has appreciated 55 percent over the last 1 year to 4,760

Hatsun surged 10.6 percent, or 41.6 rupees, at 433 rupees on the National

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Stock Exchange. More than 178,000

crore rupees.


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FSSAI enhances packaged water, Milk & Edible Oil surveillance

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mid rising concerns over safety of food items, central food regulator FSSAI has asked states to increase surveillance and act against entities selling contaminated packaged drinking water as well as adulterated milk and edible oils. Following the Maggi fiasco, the authorities have started clamping down on those entities which are found to be non-complaint with the food safety norms. "States have been asked to enhance the surveillance activities in respect of packaged drinking water, milk and milk products and edible oil. If required, the state food safety commissioners can also take action," a source said. Packaged water, milk and edible oils came under the lens of Food Safety and Standards Authority of India (FSSAI) after it decided to strengthen surveillance activities on such products. Earlier this year, in a meeting with state

food safety commissioners, the FSSAI CEO Yudhvir Singh Malik had shared concerns raised by the Parliamentary panel on consumer affairs regarding widespread incidences of milk adulteration. "The milk, water and edible-oils were three big ticket items which were consumed by almost all sections of consumers and there is a need for increased surveillance of the safety of these items across all the states/ UTs in the country," Malik had said. FSSAI has also asked the commissioners to create awareness among the consumers regarding the standards and labelling requirements for packaged drinking water. Earlier this month, the food safety watchdog has formed a 11-member panel for regulating salt, sugar and fat in food products sold or served at eating joints in the country.

On June 5, the FSSAI had banned Nestle's Maggi saying it was 'unsafe and hazardous' after tests found presence of lead and Monosodium glutamate above permissible limits. Nestle India had also withdrawn the instant noodles brand from the market. Later, FSSAI also ordered testing of noodles, pastas and macaroni brands such as Top Ramen, Foodles and Wai Wai sold and manufactured by seven companies, to check compliance with the norms.

oil business," Sharma said.

"The margin will be lower in the first two to three years as there will be heavy expenditure behind brand building, subsequently the company wants to maintain a margin of around 10 percent of the total turnover," he said. The company entered the agribusiness division in 2010. At present, M&M has a joint venture with Belgium-based Univeg to develop supply chain and sell fresh fruits in the domestic andinternational markets under the 'Saboro' brand. Besides, it has inked a JVwith Dutch firm HZPC to produce high quality seed potatoes for both domesticand export markets. It will also start trade with Kenya this year by importing pulses and exporting rice. Sharma says with the new areas thatthe company is venturing to he expects the agri-business division to clock aturnover of Rs 1000 crore by 2016.

M&M enters Edible Oil segment

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tility and farm equipment major Mahindra and Mahindra ( M&M) entered the branded food business category with the launch of its edible oil product through its agri-business division. The company launched the mustard oil product for the easternmarket and will expand it nationally. "Mustardoil is a big category in this part with an approximate size of Rs 7000 crore,we want to be in the top three in pecking order in three years time," said Ashok Sharma, CEO, agri and allied business, M&M. With a superior qualityproduct , the company intends to be a player in the premium category. This is the first product under the NuPro brand which the company will extend to otherbusiness "Under this brand, we look to sell soya oil, rice bran oil and pulses like arhar, chana, urad and masoor but first we want to consolidate the mustard

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At present, the company will do the production through contract manufacturing in Jaipur but intends to manufacturein future. According to analysts, the edible oil market,whose market size is estimated to be in the region of Rs one lakh crore,is fragmented with small players dotting the landscape. The unbranded segment constitutes 60 per cent of the market. For the branded oil market, thecompany has to compete with the likes of Ruchi Soya, Marico, Emami and Adani Wilmar. "Local brands have a benefitin this regard as their cost of operation is lower than the bigger players," ananalyst noted. Sharma though says that the company's strong network in the farm sector through will help it cut down logistics cost andsource better quality of materials.


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