Agro & Food Processing June 2017

Vol 12 Issue 08 June 2017 100/-

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An overview

Shrimp industry in India

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2

Agro & Food Processing June 2017

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Agro & Food Processing June 2017

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Agro & Food Processing June 2017

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Agro & Food Processing June 2017

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CONTENTS 9

Tax discrepancy causes confusion among Agri-food Industry 16

India's agrarian predicament

Time to tap the consumer co-operative 42 movement in India Behavioural Economics is the Future of Packaging

Shirish Adi Appointed Vice President & 46 Managing Director, India, For Emerson’s Commercial & Residential Solutions Innovative and attractive packaging plays a key role to achieve productivity

20

Future of Logistics

Keeping pace with rapidly evolving global markets means reimagining supply chains entirely

28

An overview of the Shrimp industry in India

44

Odisha state aims for growth in seafood exports

47

48

Conveyor Belts are the heart of a conveying system With quality domestic crops in market, India's wheat imports slows down Global food trends: Enjoyment with 50 individual added value Record power capacity of 161 GW added, for 23% less investment 52 (USD 241.6 billion) The Technofour story 53

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12 per cent GST on Frozen Foods , meat is gratuitousindustry in puzzled state 39

How Internet based Electronic Commodity Markets can bring revolution for Farmers’ Income?

Kerala state is selfsufficient in poultry meat sector

56

ACE Frigoline with its wide range of Commercial Refrigeration service

57

Portugal shows keen interest to invest in Haryana

Agro & Food Processing June 2017

EDITORIAL

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T Editor Manzar Aftab Naqvi Group Editor Firoz H. Naqvi firoz@advanceinfomedia.com Consulting Editor Basma Hussain Graphic Designer Naved H. Kazmi naved@advanceinfomedia.com Associate Editor Glenes Bothelo Glenes@advanceinfomedia.com Advertisement Executive Anjali Mane anjali@advanceinfomedia.com Circulation Seema Hayat Shaikh seema@advanceinfomedia.com Delhi Syed Shahnawaz Sayyed Shahnawaz +91-8375034558 Gujarat Brijesh Mathuria +91-99245466999 Genreal Manager Gyanendra Trivedi Marketing & Circulation Office 121,1st floor, Rassaz Multiplex, Station Road, Mira Road (E), Dist. Thane- 401107 Telefax : +91-22-28555069, Tell.: +91-22-28115068 Mob.: +91-9867992299 E-mail: info@agronfoodprocessing.com sub@advanceinfomedia.com Vol 12 Issue 08 June 2017 Annual Subscription Rs.950/By Normal Post Add Rs. 400/-For Courier Charges Add Rs. 50/- For Outstation Charges Overseas $80 By Air Mail Email:sub@advanveinfomedia.com Single Copy Cost Rs. 100/Printed, Published & Owned By Manzar Aftab Naqvi RNI No. MAHENG /2005/15987 Postal Regd. No. THW /50/2017-2019 Regd. Office Advance Info Media & Event 103,AmarJyot Apartments, Pooja Nagar, Mira Road (E) Dist Thane-401107(Mumbai) Printed At Rolleract Press Services A-83,Ground Floor, Naraina Industrial Area Phase-1, New Delhi -110028

The views expressed in this issue are those of the contributors and are not necessarily those of the magazine.

Though every care has been taken to ensure the accuracy and authenticity of the infomation,"Oil & Food Journal" is however not responsible for damages caused by misinterpretation of information expressed and implied within the pages of this issue.

All disputes are to be referred to Mumbai Jurisdiction.

he Centre proposed to double the income of farmers by 2022, thereby setting a total of 17 new mega food parks India under the “Make in India” programme.

Also Rs 6,000 crore has been sanctioned under the Kisan SAMPADA (Scheme for Agro Marine Processing and Development of Agro processing clusters ) which will provide grants and subsidies to entrepreneurs willing to set up agro-based food industries.

India is the world’s largest milk producer and occupied the second and third spot in the production of cereals, fruits, vegetables and marine production respectively, but unfortunately only 10 per cent of the domestic production is processed and provides value addition. In contrast even small countries like Thailand and Malaysia provide more value addition to their produce than India.

Value addition is most important aspect of Indian agro-food processing industry. Then why has the government ignored it and rather food being subjected to one or two rates – which is standard practice in most developed markets – the Indian system will see food products covered by zero, 5%, 12%, 18% and 28% tax rates.

For instance, many preserved vegetables are in the 18% bracket, and mixed condiments and seasonings attract 28% Meanwhile, the rate for processed packed food products such as instant mixes for idlis, dhoklas, soups, chilli sauce, garlic ginger mixes and more is 18%. The current combined rate of their sales taxes is usually 10% to 11% "and so the price of all these will go up substantially. A similar sales tax hike can be expected for pickles, papad, squashes, jam, mango chutney and button mushrooms, will attract 18% GST, compared to current combined sales tax rates of 10-11%.

The government is making a strategic mistake by mandating lower rates for basic fresh foods, exempting products such as fresh tomatoes, apples, bananas and mango, while charging higher rates for processed foods. And this far from helping poorer consumers will move to harm them.

It was highly expected that the government would have encouraged food processing as it adds value, which helps farmers, instead of taxing these products at a higher bracket of 18%. The GDP growth in agriculture is grimly low and if food processing grows, agriculture GDP would also grow. Higher taxing will hamper the food processing industry, leading to a lowering of agriculture growth.

Coca-Cola along with its partners will contribute over USD 1.7 billion in next five years to the Indian agriculture ecosystem. The amount will be for the entire supply chain from "grove to glass through a concept called 'Fruit Circular Economy. About $800 million of this contribution would be towards procurement of processed fruit pulp and fruit concentrate for the Coca-Cola Company's ever increasing portfolio of juice and juice drinks and carbonated drinks with juice products in India.

Also Coca-Cola is expanding its portfolio beyond carbonated drinks and will introduce frozen desserts in India. And it will also put fruit chunks in Maaza and Minute Maid to make the drinks healthier.

Some said it is an assault on people's eating habits, while some termed the move as an effort to impose the RSS agenda over the country. Amid all the controversy, criticism and pressure, the Central government is going to make major alterations to the controversial rules under the Prevention of Cruelty to Animals Act, which bans animal markets from selling cattle for slaughter. The changes could clear the confusion on several issues including the possible exclusion of Buffalo from the ban.

Though the BJP clan says that the ban on sale of cattle for slaughter is being politicized and the notification has been misrepresented, misinterpreted and misunderstood, and that they had no intention to directly or indirectly hurt the slaughtering business, or harm farmers or even influence the food habits of the people.

If so how come did it then wobble the cattle and livestock market drastically? More than 90 per cent of the buffaloes traded in the country are bought by slaughter houses from cattle markets, for their meat and for use in the leather industry.

Another slip-up of the government is the late assigning of Ministries and department for approval of FDI after dissolution of The Foreign Investment Promotion Board (FIPB) on 1st February. FIBP was dissolved to accelerate approvals for foreign direct investment (FDI) proposals, but, it seems to have had the exact reverse effect for food retail. As Amazon, Big Basket and Grofers, collectively planning to invest $1 billion in food-only retail in the country, had filed applications to do so in January.

Last but not least, an undue salute to all the farmers who have lost their lives fighting for their rights, for their families, for their children and for feeding us. I think the Government has to go beyond the loan waiver and provide new and better policies for small and landless farmers. India needs to develop its insight for our producers and make them secure and prospered.

Agro & Food Processing June 2017

TAX FUSION

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Tax discrepancy causes confusion among Agri-food Industry

Basma Hussain

G

ST: A view as whole Understanding the tax that we pay is very important and it is seen as a referendum of a country’s growth.

Indeed how businesses operate and grow in any given economy is an outcome of the tax regime followed there. The more complex the system is, the more it impacts the efficiency and operations of these businesses. India for eons has followed one of the most complex and elaborate tax structures globally. The indirect tax system in India, including customs and excise, has navigated several businesses into remodelling their approach, owing to multiplicity of taxes collected at both state and central level. This in turn impacts

the overall development of business enterprises of varied scales and stature.

The implementation of GST is perhaps one of the most important economic reforms in the country. GST will provide a prospective opportunity for India to redesign and restructure its corporate landscape in more ways than one. GST will bring about a paradigm-shift in India's global perception and operations as it is an economy emerging at a high velocity, competing and leading on a global level,.

While harmonizing the current tax structure and uniformity, simplification and transparency in processes remains the core intent of the bill, the impact reaches far beyond.

“If executed in the right way, GST is likely to revolutionize the way India does business, setting it on a path to become one of world's most evolved and business-friendly countries�

Analysts say that though initially the GST will have a impediment effect but will be very beneficial in the long term. This tax system has proven to be an effective method across countries such as France, Canada, UK etc. contributing significantly to the growth of these nations. The Goods and Service Tax is premised on the agenda of creating a unified economy that facilitates seamless movement of goods throughout. It promises to remove the

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TAX FUSION

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farmers reduce market risk, augment incomes, and create new jobs in rural areas?

existing barriers around investment and entrepreneurship, where decisions can be made purely on economic concerns, independent of tax considerations and process hassles. Reduction in tax burden, logistics and inventory costs, and distribution of goods in reduced time will have a positive, lasting impact on the sales and profitability of companies operating in diverse industries.

GST has been generally accepted by over 140 countries in the world. The magnitude of this reform will impact all sections of the society - from small time businessmen to huge conglomerates and from a developing state to a developed state in this country.

“The implementation of GST will give immense boost to the growth engine pursued by the government” Right now in India after more than a decade of intense discussion and debate, finally, GST is becoming a reality.

Although, in its current form, it is not the perfect GST as originally envisaged, it is being lauded as one of the most transformational reforms since 1991.

Finance Minister Arun Jaitley was humble and right in saying that the credit for this goes not just to this government but also to previous ones that conceived and steered it from time to time.

To know the facts it is important to analyse the tax rate given by the government. Like, Fertilisers, which currently attract VAT varying between 0% and 8% (in several states), will now attract 12% tax under GST. That means the prices of fertilisers are likely to go up by 5-7%, unless the government decides to absorb this by increasing subsidy.

Pesticides are put in the 18% slab, up from the 12% excise they attract today and VAT of 4-5% in some states. Tractor rates are tricky. Several components and accessories of it are put in the 28% slab, while tractors themselves are in the 12% slab, up from zero excise and VAT of 4-5%. It is not very clear yet whether the input credit claims to cover taxes already paid on components and accessories will exceed the final tax rate of 12% on tractors, and therefore there could be a scope for reduction in tractor prices; or the tax on components may be rationalized and the applicable rate brought down from 28% to 12%. There is quite a bit of confusion here.

“Largely, it seems, from the inputs side, that the cost of cultivation for farmers may increase marginally, which in turn may put mild pressure on agri-prices”

Impact on Agriculture The impact of the news tax regime on agriculture and farmers can be viewed from three different angles. First, is GST going to be inflation-neutral, given that food has 45% weight in the consumer price index (CPI);Secondly will GST be revenue-neutral, especially which states may lose revenue and how they will be compensated? And thirdly will it give some incentives to link farmers with food processing industry, which may help

Agro & Food Processing June 2017

But the story is not complete unless we see the taxation structure on agri-output prices. Most of raw agri-commodities including rice, wheat, milk, fresh fruits and vegetables, etc., are in the zero-tax slab and rightly so as they are consumed by masses. However, it may be interesting to note that a state like Punjab which contributes maximum grains to the central pool, imposes taxes and various cesses to the extent of 12% on wheat and rice. And on top of that, there is the arhatiya commission of 2.5% making the transactions cost of these basic staples in Punjab mandis as high as 14.5%.

In a country still ridden with poverty, imposing such high levels of taxation on wheat and rice was nothing short of rentseeking from the Centre and distorting the markets. Now, with new GST regime, even if commission of 2.5% stays, one hopes that all other taxes and cesses would go away. As a result, the purchase cost of wheat and paddy (rice) from Punjab mandis will go down by 12%.

This would be a major gain with several ripple effects.

One, the prices of these basic staples in open market should come down by say 5-7%, as most grain-surplus states impose at least that much tax. This was a major distortion in mandis driving the private sector away from Punjab. Now, with zero taxes, the private sector may come back to buy wheat and rice from surplus states, giving a boost to grain-milling.

At an all India level, FCI may save anywhere from Rs.6,000-8,000 crore, which may show up in a smaller food

TAX FUSION

subsidy bill. But then, surplus states like Punjab, Haryana, Andhra Pradesh, Madhya Pradesh and Chhattisgarh may lose this tax revenue which they are getting from FCI or GoI under the current system. How would they be compensated is not yet very clear even to FCI, although there is a provision for compensating losing states for five years by the Centre. Rationalization of mandi taxes and associated cess and levies will be the biggest gain from GST as far as agriculture is concerned.

However, the taxation structure for processed food is not very encouraging.

For example, fruit and vegetables juices under GST will be taxed at 12%, up from current 5%; fruit jams, jellies, marmalades, fruit and vegetable purees, etc., will be taxed at an even higher 18%, up from 5%. This is surprising as it will discourage the development of food processing industry, especially for perishable fruits and vegetables. Even aloo tikki will attract an 18% tax, if it is in the frozen form!

“This is contrary to the wishes of even the prime minister who wanted fruit juices to be put in even aerated drinks to ensure good market for farmers” Foodgrains, cereals and milk will cost less from July 1 when the Goods and Services Tax (GST) is rolled out as the GST Council has decided to exempt these daily-use commodities from the levy.

Milk and curd will continue to be exempt from taxation when the Goods and Service Tax (GST) replaced current indirect taxes. ‘Mithai’ or sweets will attract 5 per cent levy. Daily-use items like sugar, tea, coffee (barring instant coffee) and edible oil will attract the lowest tax rate of 5 per

11

cent, almost the same as current incidence.

It may be worth reconsidering these rates and bringing them into to the 5% slab for stronger linkages between farmers and the food processing industry and creating jobs in rural areas. Since the raw material could be sourced directly from farmers instead of entirely depending on middlemen in mandis, e-NAM provides an opportunity to graduate to a real pan-India market for agricultural products. A smooth GST regime can break inter-state barriers on movement and facilitate direct linkage between processors and farmers. This can transform the operations of mandis too if other necessary reforms to free up agricultural markets are undertaken. If it happens, farmers would also welcome GST the way organised industry seems to be celebrating.

Overall, it seems, from the inputs side, that the cost of cultivation for farmers may increase marginally, which in turn may put mild pressure on agri-prices. But the story is not complete unless we see the taxation structure on agri-output prices.

“Prices of foodgrains, especially wheat and rice, will come down as they will be exempt from GST. Currently, some states levy Value Added Tax (VAT) on them” Unruly implementation of tax in food processing Industry ASSOCHAM has hailed the central government's new GST regime, as the biggest economic achievement in the three years since Prime Minister Narendra Modi took office.

“However, there is some apprehension in the food industry about the new framework's potential impact on value-added products” Though the GST is all set to roll out

on 1st July, but Indian Food processing industry executives and experts in India still has appealed for a simplification of GST in regards to the food industry regime as it applies to food, criticizing the levying of higher rates on value-added manufactured foods that can drive market growth.

Actually the announcement of a wide variety of rates by India's GST Council has caused concern, which is rather ironic given a key aim of the reform was to streamline sales taxes – until now a patchwork of national, state and municipal charges.

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

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

“In GST food products will variably be covered by zero, 5%, 12%, 18% and 28% tax rates” Many top notch food stalwarts say that the GST regime should at least ensure all food products mentioned in chapter 20 of its schedule (which covers preparations of vegetables, fruits, nuts or other plant parts) and chapter 21 (so-called miscellaneous edible preparations) be included in the 5% and 12% bands only.

Instead, many preserved vegetables (such as tomatoes, mushrooms and nuts) are in the 18% bracket and mixed condiments and seasonings attract 28%, for instance.

Meanwhile, the rate for processed packed

Agro & Food Processing June 2017

TAX FUSION

12 food products such as instant mixes for idlis (rice cakes), dhoklas (a batter snack), soups, chilli sauce, garlic ginger mixes and more is 18%. The current combined rate of their sales taxes is usually 10% to 11% "and so the price of all these will go up substantially.

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

India's government is making a strategic mistake by mandating lower rates for basic fresh foods, exempting products such as fresh tomatoes, apples, bananas and mango, while charging higher rates for processed foods. And this far from helping poorer consumers will move to harm them.

“It was highly expected that the government would have encouraged food processing as it adds value, which helps farmers, instead of taxing these products at a higher bracket of 18%” The GDP growth in agriculture is dismally low and if food processing grows, agriculture GDP would also grow. Higher taxing will hamper the food processing industry, leading to a lowering of agriculture growth.

Moreover food manufacturing would reduce agricultural waste, offer time savings to domestic cooks, and provide standardised safe food that promotes good health, thus branded/packed products should be at lower tax wherein consumers get better quality, better packed, more nutritious food. Even the dairy industry is the bounded in the confusing complexity of this schedule, for example take paneer.

The product is tax-free if sold without branding and without packing but if you put in a container and brand it, then 5% GST will be charged. As a result paneer manufactured informally "in unhygienic conditions" will be sold tax-free, while "the one being manufactured and packed hygienically is to be taxed.

A similar penalty appears set to apply to sales of sweetened flavoured milk.

Generally, it will attract 5% category GST but if fruit pulp is added to the ingredient mix then the tax rate will rise to 28%.

It is important to note the complexity of the milk segment, where different kinds of milk can be zero, 5%, or 18% rated depending on the final product. There are different variants of milk, like doubletoned milk, toned milk, standardised milk and full cream milk being sold in India.

Clarification in this regard is needed.

While the new GST regime would simplify taxes compared to the outgoing system, addressing this type of issue "would go a long way in augmenting the growth of the industry.

Furthermore, there are more regressive elements to the new GST structure. Like ghee, while many basic products were zero-rated, ghee will attract a 12% tax.

Ghee is one of the principal consumer products sold in India across all category of people irrespective of strata and such a levy, taxing it would primarily hurt the interest of poor consumers who may not be able to afford ghee any longer, with small-and-medium-sized entrepreneurs manufacturing and selling ghee suffering as a result.

Even food items like Papad and pickles will be taxed 18 per cent, but the industry believes it is going to be adversely affect the sale and push the price conscious Indian to the unorganised market. In fact the Union Food Processing Minister Harisimrat Kaur Badal had taken up the matter to the council and had also

Agro & Food Processing June 2017

forwarded Coca-Cola India’s demand not to include fizzy drinks in the sin category under the Goods and Services Tax (GST).

GST council has fixed the compensation cess rate at 12 per cent for aerated beverages.

As they are in the category of demerit goods or sin goods and luxury goods, they come under the highest GST slab of 28 per cent. It means, aerated beverages will attract a total tax of 40 per cent (28+12).

The changed tax structure is likely to have an incremental impact on the price of aerated beverages overall in the country.

Impact will vary from one state to another on account of difference in the prevailing tax structure in the states.

The new tax has been upsetting for the industry body, Indian Beverage Association (IBA), which has urged the government to reconsider the new rate as the combined rate of CENVAT and State VAT rates reach 34 per cent in eight states in the country.

“A 40 per cent increase in the central excise duty (from existing 21 per cent) would hit the aerated industry hard” May be there may be one reason for the apparent complexity in the new GST regime. As some tax classifications are based on how food is categorized for food safety controls. it might make sense for certain similar foods to have different safety controls because of how they are made but believes it does not make sense for them to have different GST rates,

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Agro & Food Processing June 2017

TAX FUSION

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chain mechanism would ensure a reduction in wastage and cost for the farmers/retailers. GST would also help in reducing the cost of heavy machinery required for producing agricultural commodities. Under the model GST law, dairy farming, poultry farming, and stock breeding are kept out of the definition of agriculture. Therefore these will be taxable under the GST.

especially when that leaves an opening for different levels to be charged for similar or identical foodstuffs, differing only by packaging.

Work on rationalizing and harmonizing tax and food safety classifications within India could remove the potential for such variety in GST rates. A lot of confusion in the minds of the stakeholders could be resolved. Without it, companies may start to finesse their packaging and formulations to ease their products into lower GST brackets.

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

Biscuit industry puzzled over GST as the council has placed biscuits below Rs 100 a kg in the 18% GST slab and the sector is anxious that this might push pricesensitive consumers towards unbranded products. Normally, glucose biscuits are priced Rs 71 a kg and is the cheapest among key sub-categories such as creams and cookies, which are available at Rs 120-125 a kg.

‘The GST Council removed the variable tax structure on biscuits, taxing those

below and above Rs 100 per kg at the same rate. This has raised the chances of a price increase in the glucose category” A possible two to three per cent price increase in glucose biscuits in July, could push consumers of branded products to unbranded ones. This goes against the principle of social justice, where the poor will carry the burden of additional tax and those who are well-off will not. The effective tax rate at present in the glucose category is 9-10 per cent, while those at the premium end pay 16-17 per cent.

The organised biscuit market in India is pegged at Rs 26,000 crore yearly and the unorganised one at Rs 13,000 crore. A price hike of two-three per cent in a category where the unit price varies between Rs 2 and Rs 10 could increase the size of the unorganised market by at least Rs 500 crore.

The organised glucose biscuit category, around Rs 5,500 crore, could shrink to about Rs 5,000 crore as a result. The rate of growth of glucose biscuits, dominated by Parle-G of Parle Products, is the slowest at around four-five per cent per annum. Cream biscuits have an annual rate of growth of eightnine per cent while cookies are growing at 15-16 per cent per annum.

Eventually…

GST is essential to improve the transparency, reliability, timeline of supply chain mechanism. A better supply

Agro & Food Processing June 2017

India’s milk production in 2015-16 was 160.35 million ton, increased from 146.31mt in 2014-15.Currently, only 2% VAT is charged on milk and certain milk products but under GST the rate of fresh milk is NIL and skimmed milk is kept under 5% bracket and condensed milk is going to be taxed at the rate of 18%. Tea is probably one of the most crucial items in an Indian household. The price of tea might also increase due to the tax rate of 5% under GST rate from the current average VAT rate of 4-5% with Assam and West Bengal with the exception of 0.5 and 1%.

An increase in the cost of few agricultural products is anticipated due to the rise in inflation index for a brief period. Though, implementation of GST is going to benefit a lot, the farmers/ distributors in the long run as there will a single unified national agriculture market. GST would ensure that farmers in India, who contribute the most to GDP, will be able to sell their produce for the best available price.

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Agro & Food Processing June 2017

FARMERS AGITATION

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India's agrarian predicament In 1947 Pundit Jawaharlal NehruIndia’s first Prime Minister said: “Everything can wait, but not agriculture.” Regrettably what India is presently witnessing is exactly the reverse. India is progressing to be the next biggest economy but with its agriculture in mayhem will this actually happen.

G

oings-on Maharashtra chief minister Devendra Fadnavis had earlier refused to announce a complete reversal of loans for every farmer, citing the state's critical debt situation.

But now he has agreed "in principle" to a loan waiver for all sections of farmers, adding that a committee would be formed to decide on specific terms.

Agro & Food Processing June 2017

In return farmers have decided to temporarily to call off the protest but with a clause that if no satisfactory decision is taken (on the criterion for loan waiver) by 25 July, they would restart the stir.

However a tense stand-off between the Madhya Pradesh government and farmers is continuing. Chief Minister Shivraj Singh Chauhan has promised to consider a complete reversal of loans. But farmers

FARMERS AGITATION

said he had failed to give any concrete promises on improving their lives.

Farmers in India want to be free of loans, not just a one-time waiver, but a serious change in agricultural policy that promises just returns to farmers, one which prevents them from being indebted.

Farmers, in others states have also been demanding similar measures.

The northern state of Uttar Pradesh and the southern state of Telangana have already announced loan waivers for farmers.

17

Why the protest Maharashtra, one of the richest state in India witnessed a farmer agitation of a massive magnitude, while farmers protest in Madhya Pradesh had gone intermittently violent in too, where farmers had died and gotten injured in reported firings. Several Indian states are jumping on the bandwagon of farmer agitations, is it a warning sign of the crisis Indian agricultural sector is in, is it just a case of aping the recent.

Farmers in Madhya Pradesh farmers were protesting in the state since the

beginning of June demanding a minimum support price for their farm produce and several other things. At the same time farmers from at many districts in Maharashtra came out on the streets to shut down wholesale markets as well as vandalized vehicles carrying vegetables.

These farmers spilt gallons of milk on the road and sent vegetable prices soaring in bigger cities.

To cool down the situation the Maharashtra government waived off loans of Rs 30,000 crore which was owed by farmers who had up to five acres

Agro & Food Processing June 2017

FARMERS AGITATION

18

some farmers also prefer not to sell to the MSP-driven government centers as the sale process takes a month. As a matter of fact farmers, who have sold their produce at the procurement centre on March 22, are yet to receive their payments and it is nearly July. of land by October 2016. But the way farmers have been revolting, it is blurred if the amount will be raised further. While Madhya Pradesh CM Shivraj Singh Chauhan said that, to purchase the farm produce at the minimum support price (MSP) a price stabilization fund of Rs 1,000 crore would be set up.

But why are farmers protesting in a year when agriculture growth for the entire country shot up to a five-year high of 4.9 percent?

These protests were started when the new BJP government in Uttar Pradesh announced a Rs 36,359 crore farm loan waiver for the farmers in the state. That event prompted farmers in other places to ask for a similar waiver since they are also BJP ruled states. Another big concern was nose-diving crop prices, as at the root of the crisis is the steep fall in the prices of agricultural goods. This decline in prices has mainly come against the backdrop of a great monsoon season which had led to bumper crops. However, despite the price fluctuations, MSPs are meant for farmers so that the can sell their produce at remunerative prices. Yet it is a well-known fact that crop procurement at MSP value has traditionally been quite low for many crops. These things together have has forced farmers in distress to sell their crops at really low prices, which have added to the debt burden.

After the Modi government took the decision of demonetizing high-value currency in India, there was reportedly a collapse of wholesale vegetable prices as there was a severe cash crunch in the market. But much before these, farmers had to face consecutive droughts in 2014 and 2015, which was the key reason they could not repay their loans and lead to a slew of suicides.

The demonetization lead the prices of crops to plummet and six months later, the measure has exacerbated the situation leading up to the current farmers' protests.

The RBI acknowledged on June 7, 2017, that "fire sales" during demonetization led to price drops. The cash-crunch also led farmers to take loans, increasing their debt.

In MP, Maharashtra, Karnataka, Telangana and Gujarat, a bumper harvest caused by a good monsoon after backto-back droughts has led to a drop in the prices of crops, affecting farmers' income. Practically 52% of India's farm households are in debt, according to a 2013 National Sample Survey

The Indian government purchases crops from farmers at a fixed minimum support price (MSP), regardless of what market rates are. For example, the price of tur dal dropped by 63% from December 2015 to Rs. 3800-4000/quintal in March 2017. That's 20% below the MSP of Rs. 5050/quintal. A government committee has recommended the MSP of tur be increased to Rs. 6,000/quintal for farmers' sustenance.

Despite the higher prices offered,

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Organization's report. After UP's recently elected government waived Rs. 30,792 crore of farm loans, similar demands from farmers in Maharashtra, MP, Tamil Nadu and Karnataka cropped up. However, India's indebted states themselves can't afford to write-off farmers' loans.

The Double standards here cannot be ignored as corporate debts far outweigh that of farmers. It is totally gibberish to say that waiving farm debt could bankrupt the exchequer. When the fact is that, "Mr Adani gets a loan from SBI which is greater than the entire farmer debt of this country." The giant share of NPAs [non-performing assets] in banks is from corporate houses that have simply refused to give back the money they have taken.

According to the Nation Crime Records Bureau (NCRB) data Maharashtra witnessed one-third (4,291) of the total suicides by farmers and agricultural laborers in India (total 12,602) in 2015.

A whopping 43 per cent of the farmer suicides in the state were due to debts and bankruptcy. Just 18 per cent farmer suicides were due to the failure of crops.

While National Sample Survey Organisation survey asserted that, 57 per cent of families were indebted in Maharashtra. In comparison, the average in India is 52 per cent. The survey said that the average debt of a farm household in Maharashtra was Rs 54,700 in 2013, while the average in India was Rs 47,000.

In fact, various state governments are expected to waive off $40 billion, or Rs 2, 57,000 crore, of farmers’ loans in the run-up to the 2019 general elections in the country, a global banking group has

FARMERS AGITATION

19 empowered, loan waivers will remain a recurring feature of the landscape.

Small farmers have little access to technology, and inconsistent access to irrigation, making them one of the most vulnerable groups to climate change.

Farming for them is grinding physical work. Families plant, pick, harvest and haul by hand, with each new generation dividing up what they have into ever smaller plots of land.

A sense of deep hopelessness runs through the lives of Indian farmer, as they have lost all hope - and are now resorting to fight. An increasing number have opted for permanent escape from their physical and emotional pain by ingesting deadly pesticides.

said. Farm loan waivers will amount to 2 percent of gross domestic product (GDP) by the 2019 polls, as other states are also likely to follow the BJP’s Maharashtra and UP governments, according to a Bank of America Merrill Lynch (BofAML) report. At a time when the states should be focusing on investing in more irrigation, creating more roads and get more resources, can they afford to spend on crop loan waivers? Can the quick fixes push aside the structural issues behind the agricultural crisis?

In the end only thing that can highlight in this regard is that, that the Narendra Modi government boasts it's allocating more budgetary funds towards the agricultural sector than the previous UPA regime.

Modi also promised to double farmers' income by 2022. Yet, in the current context, there's little indication of easing farmer distress.

Oils and food Processing insight Farmers are selling below their cost, whether it is potato, tomato, onion or pulses. The government only wakes up when the farmers hit them on the head.

It has become point of emergency, where the government must now remove the structural bottlenecks in India’s farm economy. It follows that holistic solutions to farmer distress will have to combine creation of non-farm jobs and enhancement of farm incomes.

Instead of focusing on our producers the government has become urbanized. The authorities are eager to keep prices low to accommodate the growing demand in cities relating to typical urban biasness in

the system.

To improve their lives, farmers need a way out of agriculture and into the manufacturing or services sector. In fact, most small-scale farmers would happily sell their land, if only they could be provided employment instead of it.

My question, is loan waiver the sole answer? No! Indebtedness is the most acute problem faced by small and marginal farmers. However, their borrowings are primarily from moneylenders and hence a loan waiver is not going to make any sense for them. It is the richer farmers who are the real beneficiaries of such populist policies.

The problems faced by small farmers are complex and require a ruthless political will to address them. Their landholdings are below the economically viable threshold - the result is the cyclical appearance of bad loans and poor rainfall.

Loan waivers have little to do with ending the conditions that lead to such problems.

Debt relief programmes fail to provide assistance. The write-offs are a disincentive to the banking system because people have expectations of future waivers as well.

Loan waivers have little role in the lives of landless farmers, who do not have access to bank loans and some other farmers who depend on money-lenders.

In a sense, loan waivers are a story of mislead reforms in India.

The question should be why almost 55 per cent of the population produces just 17 per cent of agricultural output.

Unless this huge swathe of population is

Is this independence, from the day when we were liberated till now, India does not have a national agriculture policy. There is a need for an integrated approach - one that addresses source sustainability, land use management, agricultural strategies, demand management and the distribution and pricing of water.

In indecisive agricultural action that our country’s government take, may shape the future not only of India’s agriculture but its polity as well.

Each day I go into the fields to see what is growing and what remains to be done.

It is always the same thing: nothing is growing, everything needs to be done.

Plow, harrow, disc, water, pray till my bones ache and hands rub blood-raw with honest labor —all that grows is the slow intransigent intensity of need.

I have sown my seed on soil guaranteed by poverty to fail.

But I don’t complain—except to passersby who ask me why I work such barren earth.

They would not understand me if I stooped to lift a rock and hold it like a child, or laughed, Or told them it is their poverty I labor to relieve.

For them, I complain. A farmer of dreams knows how to pretend. A farmer of dreams Knows what it means to be patient.

Each day I go into the fields.

By W.D. Ehrhart

Agro & Food Processing June 2017

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Future of Logistics

Keeping pace with rapidly evolving global markets means reimagining supply chains entirely

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n recent decades, companies in sectors from automotive and high tech to retail and consumer packaged goods have come to realize that their supply chain is much more than the cost of getting products into customers’ hands.

These companies understand that it is the supply chain that translates corporate strategy into day-to-day interactions

both within and beyond the organization.

Ultimately, it is the supply chain that satisfies or disappoints their customers.

These companies also use a broader definition of the supply chain—one that includes planning, information sharing, and value-adding activities, from raw material to final distribution, rather than just logistics.

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Leading companies have made strategic investments in their supply-chain capabilities and set up efficient and effective organizations that overcome cross-functional silos.

By outperforming the overall level of maturity in their sectors, they have been able to disrupt them, as Amazon has done in retail, for example.

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These companies have redefined their customers’ expectations of service and their ability to bring innovation to the market, turning their excellence in supply-chain execution into a powerful source of competitive advantage.

Critically, the very best companies continue to evolve and reinvent their supply chains, even if they have already

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achieved a leading position in their industry. By doing so, they are able to manage risks; respond to changes in the economic, technological, and competitive environment; and exploit new opportunities more effectively than their competitors.

Globally times are changing and the companies need to enhance their

supply chain to the best with upgraded technology, by reducing transporting time, and understanding the system.

Industry trends Driving Change When we look ahead, we see a number of trends that will shape the industry in the next 10 years, which are largely outside the control of the industry.

But retailers and consumer products

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companies must consider the impact of these external forces on their business and determine how best to respond to the changes that will be brought about as a result of their impact.

There will also be key industry trends that will affect the future value chain, particularly in the areas of consumer behaviour, information flow and product flow. In contrast to the external forces, the industry does have the power to shape how this change will take place, at least to some degree.

Consumer behaviour: driving the value chain Consumers and shoppers will continue to become more demanding and empowered.

In fact, they will become active partners in the supply chain and will directly drive product development and replenishment.

They will increasingly interact (including ordering and buying) via different channels (online, in-store, mobile), and will require other delivery mechanisms besides the stores, including, for example, neighbourhood distribution and home delivery.

Product flow: redesigning supply chains New industry challenges necessitate new supply chain solutions. Urban structures will require special attention. Current transportation and infrastructures are increasingly congested and hamper the required service levels. In addition, energy prices and government regulations (for example, relating to city distribution) will have a significant impact on transportation. The industry will need to rethink how products are distributed.

Information flow: managing complexity through transparency

Supply chains in the future will be even more complex than they are today.

Companies will need to determine how best to work together to effectively match supply with demand. Open information sharing will be an important foundation to help companies anticipate dynamic consumer demands. Collaboration should focus on areas of common interest, without affecting the competitive positioning of companies.

Economic trends: new markets and a new economic balance Brazil, Russia, India, China, Africa and Korea will be major markets to consider in the coming years. Each of these markets will evolve much more quickly, compared with the parallel changes that occurred in North America and Western Europe. There will also be changes in the balance between local and global sourcing.

New technology trends: explosion of information Moore’s Law will continue to scale the effects of new technologies in ways never before seen. For example, RFID technologies will play a big role in the future. In addition, the adoption and use of new technologies by consumers and shoppers (in home, in stores, on-the-go) will grow rapidly.

Regulatory trends: new rules, new compliancy In addition to consumer pressure and companies’ own growing emphasis on corporate social responsibility, governments will enact more regulations, particularly targeting areas such as sustainability. This will be done by government and regulatory bodies at different levels: local, national and

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international. In addition, some current labour regulations must be repealed (for example, for more flexible working times) to allow infrastructures to be used to their full capacity with less stress on the environment.

Future trends of supply chain Today the industry faces issues that remain difficult to solve. For example, companies are still challenged to put full truckloads on the road. Out-of-stocks continue to be a perennial problem.

Results from a recent ECR Europe study on out-of-stocks show that the loss of revenue for all grocery stores in France alone is estimated at €200 million per quarter.

The Industry’s infrastructure remains complex. Energy costs continue to rise as the price of a barrel of oil increases.

Urban distribution remains an issue, because the model is outdated: New infrastructures and new rules such as congestion charges will lead to major adjustments in managing f lows.

These issues have changed little in the past 10 years, yet real solutions have not been found and implemented. It’s clear that the current way of working is not sufficient and that the industry must take a new approach.

The problem with trends is that they are like a freight train gaining speed; everyone can see the train, but at what point do you say the train is really moving at speed?

With that in mind, here are the trends I’m following, the predictions I am making, or if not a prediction, the inflection points I am paying attention to.

Large multinationals will be paying very close attention to the design of their supply

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chain networks – to where their factories and warehouses are located and how they flow products to customers. Software suppliers that sell Supply Chain Design software or have expertise in using this software in consulting engagements will benefit.

The supply chain of tomorrow will be leaner, faster and most importantly, selforchestrated. This unprecedented pace of change will be driven by a few radical technologies that will be cautiously adopted by industry participants over the next 15 years. Here is a view of the top five that are identified from its comprehensive analysis on the future of logistics.

Automation Reduces the Number of Employees Working in Logistics It does not take much imagination to know that at some point driverless vehicles will reduce the need for truck drivers and companies will continue to make investments in these kinds of vehicles.

Just recently Apple confirmed what many suspected, that they in addition to Google, Amazon, and the big car companies, are also investing in this area.

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The last few years of holiday shopping, and the shipping crunch associated with e-commerce orders, has produced its share of ups and downs.

Late packages will never be eliminated fully, but retailers and shippers alike have taken steps to ensure that a holiday meltdown similar to 2013, where an estimated two million packages were delivered late, does not happen again in future. And similar investments and detailed planning will also make 2017 a pretty good year for consumers that want to make sure their presents arrive on time for the holidays in 2017.

There has been a good deal of writing about the investments that retailers are making in their omnichannel projects so that they can compete more effectively with e-commerce pure plays.

Interestingly, Amazon has recently announced that they will be opening some brick and mortar stores. When it comes to e-commerce and logistics, when e-commerce goes from 9 per cent of retail to 30 per cent, how feasible will it be to deliver all those packages? This problem is also an opportunity. Large 3PLs, like DHL, are investing in drones and crowdsourcing solutions; and large automakers, such as Mercedes Benz, are investing in some very interesting last mile delivery vans.

Digital Supply Chain The concept of the Digital Economy

encompasses Internet of Things” (IoT) and also includes the idea that IoT sensor data needs to be leveraged in applications that take that sensor data turn it into actionable tasks that are embedded in the right process step that can be executed by the right person. IoT is nothing new in logistics. In the logistics space, for example, we’ve been taking RF scans and using that data to improve warehouse processes. Internet protocols make it easier to communicate that sensor data to applications. And the use of GPS in Internet-enabled fleet routing and tracking solutions has existed since the turn of the century.

But what is fairly new is the concept of a Supply Chain Control Tower where the S&OP process is executed, and where ongoing supply chain orchestration occurs.

This orchestration is more effective the more external, relevant, contextualized data can be ingested in these control towers.

Public cloud networks are a great source of that external data. Further, there are some innovative IoT type technologies that have emerged to help improve supply chain resiliency for inbound strategic materials. General Motors is one example of a company using this type of solution (General Motors’ Approach to Supply Chain Resiliency) and who had nothing but praise for this type of solution.

Predictive analytics startups have also emerged doing interesting work with IoT data. ClearMetal is an example of a company applying simulation and advanced analytics to Big Data to help ocean carriers improve their profitability and a variety of solutions are using Big

But what has received less attention is that automation and robots will decrease the need for warehouse workers. In a survey many of warehouse executives said that procuring autonomous mobile robots in the next three years was a priority for them. That is not enough to affect warehouse employment in future. But in this area, there is a critical inflection point to watch for: at what point do the vision and tactile systems in robots make it possible for robots with arms to actually pick items off of shelves? Solving this is a very difficult technical problem. But when it is solved, we will start to see warehouse jobs disappear at a rapid rate.

E-commerce reshapes the Face of Logistics.

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While fuel is still the most overbearing influence on the assets and fleets of the industry, with all this autonomy and technology, a new influence is emerging that could have a farreaching impact on the supply chain— Big Data, well not only Big Data, but “Good Data.”

Data and advanced analytics to predict which truck drivers will have an accident.

So what is the prediction? It is a fairly safe one. It will see big supply chain software companies purchasing these types of suppliers in 2017.

Autonomous Fleet Brings Greater Efficiency Drones are definitely the poster child at the moment and have stirred up a lot of conversation since Amazon announced its plans to launch drones for last-mile deliveries. While this is and will be an integral part of the future, it is also interesting to focus on the other types of fleets within the industry that could become completely autonomous. Before drones were experimented with, the first “vehicles” to become autonomous in the supply chain were actually forklifts. Man travel is among the most unproductive, time-consuming tasks within a warehouse; the new forklifts, called “vision-guided fully autonomous mobile robots,” not only address this specific issue, but also have the ability to process orders (pick and on-board for delivery) four times faster than a human.

There is a real possibility of fleets becoming totally autonomous as well.

Truck platooning and autonomous trucks could be a reality by 2030.

Semi-autonomous trucks will reach a penetration rate of 5 per cent by 2030.

Rolls Royce has announced plans to launch autonomous cargo ships (or as The Economist called it, “Ghost Ships”) by 2030. While replacing or aiding man was a critical criterion for autonomous technology in material handling, for fleets, the value of autonomy centers around fuel economy. Truck platooning, for example, could mean saving as much as 20 per cent on fuel costs.

Data Replaces Fuel as the Biggest Influencer With big data we are seeing the conversation shift from estimating the volume of data, or Big Data, to the variety and value of data. This is a useful conversation to have because an unbelievable 90 per cent of data sometimes captured is pure spam. Amazon, for example, is building capabilities to cull out that spam and create predictive analytics around your shopping behavior.

Amazon wants to ship your products even before you know you want it. In its current model, Amazon receives an order and delivers the order through UPS or UPSS. It has been trying hard to compete with brick and mortar stores to provide instant gratification, the one thing it cannot provide right now.

All of its efforts with drones and robots have been focused on cutting that delivery time and getting you what you want as soon as you want it. Last year, Amazon said it is working on drones that could make deliveries of small packages directly from warehouses to homes.

Its current patent on “anticipatory shipping” exemplifies a strategy where Amazon will send out deliveries to partial street addresses or zip codes to get the products as close as possible to the consumer and then in-transit complete the address and route it to someone who has placed the order. Anticipatory shipping is coming; Predictive models combined with new-age fleets could lead to zero fulfillment time.

Another interesting prospect this creates is the possibility of logistics becoming a data-centric industry where information takes precedence in logistics services’ value propositions over the actual ability to move cargo.

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New Breed of Technology Players is Less Asset-Centric To say the logistics industry is becoming non-asset based or less-asset centric is a stretch because someone has to own and operate the assets; however, what is interesting to see is the rise of the new breed of logistics providers that own no asset (fleet or warehouses), but are able to provide logistics services by aggregating “information about assets” from people who do own them through leveraging data.

For example, Shyp and Zipments are logistics companies that provide logistics-related services like offering freight quotes or trucking capacity, but neither own assets and are therefore able to offer more cost-competitive services at almost 50 per cent less than industry averages, because they don’t have the costs associated with maintaining assets or dealing with the pressure to ensure economies of scale.

This is indicative of an interesting future where your typical logistics provider and vendor in the market will evolve to a more consulting-driven approach and become more like project managers, rather than actual movers of cargo, leading to new models such as E-Brokerage.

E-Brokerage Platforms (Uber of Trucks) Growth in e-retailing, coupled with connectivity technologies, will usher in new solutions for freight and logistics firms. The proliferation of digitalization in trucking will force traditional freight brokers to align their business model toward mobile-based, freight brokeragetype solutions. Mobile apps are critical to a seamless, on-the-move brokerage system, also known as the "Uberization of trucking." In the future, mobile-based freight brokers are expected to develop in-house software solutions by creating potential synergic partnerships with traditional freight brokers, OEMs and telematics providers to facilitate this change.

Imagine a scenario where a mobile app is incorporated to match truck drivers to shipper needs on rates, routes, and schedules. This is expected to automate a number of processes pertaining to delivery status, dispatch, loadfinding and driver payment, apart from providing critical real-time information on consignments right from pickup to

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delivery. With approximately $20 billion lost in revenue from empty miles and excess capacity issues, the payoffs arising from such business models will result in minimizing operating costs by improving asset utilization and fuel efficiency.

The future will witness online services, eliminating traditional freight brokerage firms by offering more agile services in this space.

As new players emerge and the industry unbundles to niche pockets, general operational hurdles of commerce and trade could multiply. For a 150-year-old industry that has been trading in “trust,” this herd of new players will cause new compliance complications. The industry will look toward smarter ways of doing business to avoid paperwork, such as the use of blockchain, which is quickly emerging as a great tool for driving quicker compliance.

Smart Commerce with Blockchain Just as the Internet has triggered the evolution from client applications to webbased apps, cloud solutions and SAAS, the peer-to-peer model of blockchain is exhibiting the potential to generate new innovation channels on how logistics applications can be developed and deployed. In that sense, the blockchain technology could emerge as the new operating system for supply chain networks that combines B2B connectivity with software apps.

For instance, if you are the warehouse head responsible for flow of goods, there could be occasions where suppliers fail to deliver goods intact or on time, leading to potential time consuming disputes and punitive legal recourse measures.

Blockchain technology will avoid such scenarios as it would allow you to negotiate smart contacts with suppliers that clearly define terms, conditions

and the mode of functioning between the two parties, while further mandating the sensitization of all goods to generate critical information on the state of goods and the time of delivery.

A pre-condition percentage fine is levied and the amount is withheld from the final contacted price in case there is a delay in delivery if goods are not found intact.

The blockchain implication is expected to have a wider reach when compared to any other supplier management tools given that it is expected to track details right from order initiation at the customer level to shipment information, resulting in creating more visibility within a supply chain not seen before and further allowing all parties to access accurate real-time information anywhere, anytime.

With the evolution of blockchain expanding its applications to future supply chains, another prominent aspect is the possibility of supply chain becoming more compliant, transparent and having innovative payment processing that is expected to create more traction in new types of services, such as mobile freight brokerage systems.

The Future: Self-Orchestrated Supply Chain These five technologies showcase that in today’s dynamic world, intelligenceembedded supply chains offer a competitive advantage. In this digital age where the mantra is “transform or be redundant,” companies will leverage these technologies to create a selforchestrated supply chain and previously unimaginable efficiencies.

Some predictions we could make on these gains are enumerated below. Imagine: • Gestation gap between ordering and possessing a product is now within seconds; same-day delivery becomes same-hour delivery • Value-added services such as “trade facilitation,” no longer exist as blockchain enables all payments upon approval for letters of credit and issues port payments

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upon custody changes, etc. Supply chain unbundles from “end to end” and “point A to point B,” as business models shift from integration to aggregation • 50 per cent of all fleets will have some level of autonomy between being semiautonomous to fully autonomous • Transport volumes in warehouses are reduced by 50 per cent and warehouse sizes decreased by 30 per cent, with more smaller spokes closer to consumers than large, central hubs in city outskirts If even one of these predictions come to fruition, it would mean we have come a long way from our existing cumbersome models and will be in a future that favours data and technology to hedge uncertainty, rather than expensive reactionary methods. It means in the future digital realm, the rewards will be tremendous and companies will gain significant advantages. The supply chain is ripe for transformation and first-mover advantage is up for the taking.

Conclusion True collaboration will be imperative.

The coming years will see a new era for industry collaboration, which will become an important factor for future success. In many cases, this will require companies to rethink their areas of competitive advantage. Some business areas that are now considered to be core differentiators may well become candidates for collaboration with competitors, such as replenishment in inner cities. In addition, industry collaboration will be essential to encourage governments to enact more appropriate regulations.

Addressing all of these challenges will require new ways of working, new tool sets and thus new supply chain management capabilities. New types of supply chain managers will look not only at efficiency, but will also understand the potential of innovation and collaboration.

The mindset regarding the current management capabilities should be changed in order to realise the vision.

Achieving this new mindset will require additional training and development of new skills and tools. Education programmes should be set up to address these behavioral issues and to develop a new approach to leadership.

This overview of trends that will impact and drive future supply chain scenarios makes clear that there are critical changes the industry will need to make.

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An overview of the Shrimp industry in India Glenes Bothelo

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any fishermen and their families are involved in capture fishery that provides income and partial employment for them. Fisheries activities also take place in the lakes but the main capture fisheries production is from rivers. Fishing activities in irrigation channels, rice fields, swampy areas are significant sources of capture fisheries production. Development of innovative technologies that suit farmers’ needs and is therefore a strong link between research and development of modern

technologies and to the extension work.

Hence the goal is to have fisheries and aquaculture that makes a significant contribution to livelihoods, especially of the rural class. A need to increase both number of technicians, researchers, and extension workers to use the potential of natural resources and develop facilities to produce more seed and feed.

Long-term and concrete vision of infrastructure development along with scientific study, development

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on indigenous fish species, hygiene maintain, disease control is important for improvement of production and enhancement of economic status of people dependent on fishing. The introduction of white leg shrimp (Litopenaeus Vannamei, or Vannamei) in 2009 spurred growth in shrimp production during the last few years and displaced sales of the other major shrimp species, tiger shrimp (Penaeus Monodon). The Vannamei species is preferred due to its superior traits such as fast growth rate, disease

FEATURE STORY

resistance, lower feed requirements, and higher survival rate.

Shrimp Production Shrimp production accounts for 20-25 per cent of the brackish water aquaculture.

The major marine wild species of prawns and shrimp are White Prawn (Penaeus Indicus), Tiger Prawn (Penaeus Mondon), Pink Shrimp (Metapenaeus Dobsoni), King Prawn (Metapenaeus Affinis), and Marine Shrimp (Paraenaeopsis Stylifera). India’s largest cultured shrimp production is in the state of Andhra Pradesh, followed by West Bengal, Tamil Nadu & Puducherry, Gujarat, and Odisha.

Cultured shrimp sees favourable growth over wild shrimp.

Whiteleg shrimp or vannamei output in India is expected to cross 4.5 lakh tonnes

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in 2017 indicating over 10 per cent hike from 2015-16. Since 2009-10, vannamei (Pacific Whiteleg Shrimp) production seen steady increase enabling it to reach the present peak of 4.06 lakh MT (metric tonnes) during 2015-16, leading to an overall shrimp production to about 5 lakh MT. Two varieties of shrimp dominate Indian shrimp industry, including Litopenaeus vannamei (Pacific Whiteleg Shrimp) and Penaeus monodon (Indian Black Tiger Shrimp).

The broodstock of vannamei variety is imported from abroad right now. The import quarantine facility for vannamei broodstock is located at Chennai and is operated by the MPEDA's subsidiary organisation, Rajiv Gandhi Centre

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

Shrimp market scenario in India More than 70 per cent of the fish and shrimp harvested is sold fresh; the rest is dried, smoked or processed. The domestic fish market receives more than 80 per cent of production is highly unorganized.

Greater availability of seafood products in coastal areas results in high consumption rate. Quick service and multi-cuisine restaurants promote fish health benefits to encourage consumption.

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skills of seafood workers so that the exporters can confidently take up tasks of supplying value added products as demanded by the major retailers abroad.

Seafood is one of the majorly consumed foods worldwide. Shrimp, tuna, and crab are the most popular seafood in the world.

Shrimp has become the highest growing seafood in recent years as it is easy to cook. Consumers from all age groups enjoy shrimp cause of the premium flavor and texture. Recently there is increase in the demand for cod liver oil as it is nutrient-dense source of essential vitamins including vitamin D and A, antiinflammatory omega-3 fatty acids.

Frozen shrimp mostly supports Indian marine products and these are sourced from the coastal aquaculture farms.

India farms mainly two varieties of shrimp – ‘Pacific White Leg Shrimp’ (Litopenaeus vannamei) and ‘Indian Black Tiger Shrimp’ (Penaeus monodon).

Black Tiger Shrimp is mostly farmed in the traditional ponds of West Bengal, Odisha, and Kerala, whereas the exotic vannamei is farmed mainly in states like Andhra Pradesh, Gujarat, Tamil Nadu, and Odisha.

MPEDA has also developed high health shrimp seeds for farmers so that crop failures can be minimised. It has even developed technology for seed production and farming of variety of species such as Tilapia, Seabass, and Mangrove crab.

Farmers in Andhra Pradesh, Tamil Nadu, Maharashtra, and Odisha have taken up the farming of those varieties. MPEDA is hopeful that those varieties also will substantially contribute to the country's export production in near future.

India remains a raw material supplier to other nations, especially in South East Asia like Vietnam, Thailand, Indonesia, and Malaysia besides China. These countries use Indian raw material to add value and export as retail branded products. MPEDA works hard to encourage seafood exporters to focus more in value addition, especially highend value addition. Besides assistance schemes, they also plan to improve the

The indigenous brand of formulated shrimp feed for Vannamei (Pacific white shrimp) developed

by Chennai-based Central Institute of Brackish water Aquaculture’s (CIBA), is another hit with large-scale farmers and entrepreneurs in several aquaculture states like Andhra Pradesh, Gujarat, and Kerala, including Tamil Nadu. With the brand name Vannamei Plus, the CIBA-made feed is highly cost-effective and matches the output of international brands.

Trade Overview - Import and Export India imports shrimp broodstock, shrimp feed and Artemia Cysts to support the shrimp production. United States is the largest exporter of broodstock to India with exports of around $10.8 million in CY 2015. Additionally, United States exported to India $15.44 million worth of Artemia Cysts, that was 97 per cent of India’s total imports in 2015.

Though most of India’s shrimp production is exported, only broodstock is imported.

As per industry sources, India imports specific-pathogen-free (SPF) Vannamei broodstock from USA, Indonesia, Thailand, and Singapore, with the United States being the dominant exporter to India. In addition to broodstock, Artemia Cysts are used as live feed during the larvae raising operations in shrimp hatcheries are imported as well.

Indian seafood exports have grown significantly in the past five years with figures of $ 5.5 billion in 2014-15.

Fiscal 2015-16 was the exception with

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a reduction in value realization despite increased volumes of exports as the country exported 9,45,892 MT of seafood worth $4.7 billion. Jayathilak said, “Indian marine product exports are doing quite well over the last few years. Major factor that contributed to the increase in exports was the introduction of exotic Vannamei shrimp variety into our coastal aquaculture systems. As the shrimp production saw a surge, our exports also grew accordingly, given frozen shrimp is the major item of export from the country.”

Seafood export recorded an all-time high record in 2014-15 by exporting 1.05 million tons valued USD 5.51 billion (Rs 33,442 crores). This was due to reduced shrimp supply from other major shrimp producing nations such as China, Vietnam, and Thailand were affected by a disease known as 'Early Mortality Syndrome'. But in 2015-16, the situation in these countries improved therefore Indian seafood exports slipped both in figures and quantity and earnings were USD 4.69 billion during 2015-16.

The quality requirements of most importing countries are very stringent, especially on parameters such as antibiotic residues, pesticides, heavy metals, and other microbes. There are regulations in place on conservation measures, tariff issues like antidumping duty on shrimps, SPS measures.

These are all critical for Indian seafood export sector. MPEDA plays a key role to address and tackle such issues by initiating corrective actions and liaison with import authorities as well in resolving them so that smooth trade is facilitated.

Shrimps Global Market Scenario Asia’s contribution to the global shrimp production is indisputable. Asia accounted for 85 per cent of the total global shrimp aquaculture production and 74 per cent of wild shrimp capture in 2013. It accounted for 62% of the global shrimp exports by volume. Latest data indicate that 67 per cent of farmed shrimp is produced in Asia while around 30% is produced in Latin America. Most shrimp aquaculture occurs in China, followed

by Thailand, Indonesia, India, Vietnam,

FEATURE STORY

Brazil, Ecuador, and Bangladesh.

The global ranking of shrimp exporters in the first half of 2016 remained the same as the previous year with China, Indonesia, Thailand, India, and Ecuador being top five exporters. This proves the interest of shrimp production on a global level. Demand for ready-to-eat and easyto-cook shrimp products is constantly increasing, in line with general increase in demand for convenience food. Growing trend for convenience food has created opportunities for frozen market. Almost 90 per cent of marine products’ exports are in frozen form and frozen shrimp have the largest market share.

Indian shrimp enjoys great demand in all major overseas markets. Despite prevailing anti-dumping duty on frozen shrimp, India remains the largest supplier of the item to US market. Shrimps of big sizes by India available at very reasonable rate is enjoyed by both US and European buyers. It is also a leading supplier of frozen shrimp to Japan and Europe as well. Indian Black Tiger shrimp from traditional farms also have a niche market in Japan.

Aquaculture production (especially shrimp) in Thailand and Vietnam has gained revival and resulted in a better supply situation in the international market. This has eased the price situation of shrimp the world over. USA is the largest market for Indian seafood followed by South East Asian countries and European Union with frozen shrimp contributing about 66 per cent of the total revenue. Currently, marine products are exported to 108 countries across the globe with major focus on certain countries in Latin America, besides Egypt, Saudi Arabia, and South Korea for promotion of Indian seafood.

Aquaculture Aquaculture is currently the fastest

31

growing food production systems globally and is a vibrant and important production sector for high-protein food. It has been considered as one of the potential areas recently through which substantial improvements in the income generation of farmers are achieved.

The long-term goal for fisheries and aquaculture development is to enhance livelihoods through sustainable fisheries and aquaculture technology for food, employment, and income. For Indian businesses in the aquaculture sector, they must adhere to best industry practices that avoid a series of such challenges and create opportunities for growth and differentiation in a highly competitive seafood market.

Marine Products Export Development Authority (MPEDA) regulates aquaculture production that includes shrimp. MPEDA supports aquaculture production, development of processing infrastructure and value-addition, and establishing standards for quality control and market promotion through a variety of policies and activities.

It provides financial and technical assistance for establishment of shrimp farms, hatcheries, disease diagnostic laboratories, processing infrastructure, cold chain, and effluent treatment units.

Production of L. vannamei shrimp is concentrated in East and West Godavari, Krishna, Prakasam and Nellore state districts. Andhra Pradesh produces more than half of the country’s farmed shrimp and has a lot of potential to exploit this resource by expanding culture.

Currently, Srikakulamnorthernmost district of Andhra Pradesh Coastline is considered as ‘sunrise’ of the state’s shrimp farming.

The potential of shrimp culture in Andhra Pradesh is extraordinary.

All shrimp farmers must responsibly practice

aquaculture by only purchasing seed from authorized hatcheries, implementing strict biosecurity protocols and follow strict quarantine measures and best management practices in culture systems.

Andhra Pradesh has the potential to become an aquaculture hub in India, and hence the state government has considered several incentives and subsidies to encourage aquaculture and its sustainability. Even the state of Karnataka has immense potential for aquaculture, ornamental fish culture and overall fisheries development.

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

India is the second largest aquaculture producer in the world, the second largest exporter of shrimps to Europe and the largest exporter of shrimps to the US. Aquaculture contributes around 70 per cent of the total marine products export earnings of India. As per MPEDA, exotic ‘vannamei’ shrimp introduction in India's coastal aquaculture system has significantly contributed in maintaining the momentum of the country's marine product exports.

Just 11 per cent of potential area suitable for coastal aquaculture has been utilised.

It is important that the governing bodies identify and notify specific aquaculture zones, which will give a fillip to the longstanding demand of farmers to augment production with least social conflicts.

Challenges of shrimp industry Most of the seafood processing units in the country depend on sea catch for their export obligations. The situation is a big concern to trade as well as all country's food security. Numerous studies demonstrate that the climatic

Agro & Food Processing June 2017

FEATURE STORY

32 changes have an impact on the fish stock.

Challenges exist in the form of diseases such as white spot virus, enterocytozoon hepatopenaei (EHP), running mortality syndrome, and white feces.

factors that pose as hurdles in the growth rate of shrimp industry.

Another reason for variation in shrimp farm output is due to import regulations

High water temperature in summer and mineral imbalances, are common in shrimp culture areas low on salinity that affect production.

Disease problems have repeatedly impacted the shrimp production negatively. Viral and bacterial disease outbreaks are considered as the major constraints for this industry.

The most common diseases observed are Black gill disease, IHHNV (Infectious Hypodermal and Hematopoietic necrosis Virus), White muscle disease, White gut disease, Running Mortality syndrome and White spot syndrome virus (WSSV).

Lack of availability of quality shrimp seed from hatcheries is also a matter of great concern for the farmers. High feed cost, poor water quality, erratic power supply, differential rates of power tariff for shrimp culture, lack of credit and insurance and lack Government support are some 19 xof 15 cm

of the destination countries that do not allow shrimp contaminated by chemicals or antibiotics to be imported.

Dumping occurs when foreign manufacturers sell foods in the United States less than their fair value. Since 2004-2005, anti-dumping duty was imposed on Indian frozen warm water shrimps. US did not revoke the duty on Indian frozen water shrimps in the first 5 year that was later extended to another five

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12 per cent GST

on Frozen foods, meat is gratuitous- industry in puzzled state

T

he Goods and Services Tax (GST) is one of the key things that has caught the attention of the market given its implications on earnings of companies. The government has kept a large number of items under 18% tax slab. The government categorised 1211 items under various tax slabs.

Gufran Naqvi

GST rate tariff in India is designed in 6 categories of goods and services.

Four main GST rate slabs framed with Essential goods and services, Standard goods and services and luxury goods and services with 5%, 12%, 18% and 28% respectively. Commonly used Goods and Services at 5%, Standard Goods

Agro & Food Processing June 2017

and Services fall under 1st slab at 12%, Standard Goods and Services fall under 2nd Slab at 18% and Special category of Goods and Services including luxury - 28%. The most essential goods and services attract nil rate of GST under Exempted Categories.

Luxury goods and services and certain specific goods

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and services attract additional cess than 28% GST. Since meat, fish, crustaceans etc are food products and some of the items are commonly used for human consumption as essential commodities, meat, fish, crustaceans etc. such products are

35

expected to be included in GST exemption list where in nil rate of GST is applicable, or at minimum rate of GST or with minimum rate of GST. The processed foods also are expected to be fallen under exempted list of GST or with minimum GST tariff slab or under minimum GST tariff rate.

However, some of the items under sale of preserved meat, fish, crustaceans etc. are expected to be charged at 12%, but not finalized.

12% GST RATE; All goods 1. GST HSN chapter code 1601 Sausages

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36 and similar products, of meat, meat offal or blood; food preparations based on these products.

2. GST HSN chapter code 1602 Other prepared or preserved meat, meat offal or blood.

3. GST HSN chapter code 1603 Extracts and juices of meat, fish or crustaceans, molluscs or other aquatic invertebrates.

4. GST HSN chapter code 1604 Prepared or preserved fish; caviar and caviar substitutes prepared from fish eggs.

5. GST HSN chapter code 1605 Crustaceans, molluscs and other aquatic invertebrates prepared or preserved.

Abid Ali, Manager- Al Marzia Agro Food urges that the frozen meat industry was anticipating 5 per cent tax rate but unfortunately the government has placed it in 12 per cent slab.

Ashok Kale, Chairman Dist,.

Goat Rearing and Co-op Fed LtdAhmednagar is also worried about the high GST rates on frozen meat. He claimed this as an impractical move by the government and the GST council. We freeze the meat because with an intention to preserve it. There is no molecular change in the constitution of meat, because of freezing it becomes hard and can be preserved till a year or so, but for consumption, the frozen meat should be brought at normal temperature for marination that is later cooked. This is unreasonable as fresh meat is placed in zero category and frozen meat is at 12 per cent he stressed.

Kale commented that FSSAI and the committee believes that whatever items go in cold storage is processed item and accordingly GST Council has considered this as processed food item. We and the other associations will make a representation to the MoFPI and appeal for a lower tax slab. On one hand, government is providing support by investment in cold chain sector, but then 12 per cent GST is not justified.

He observed that twelve per cent GST on frozen meat is not reasonable as it is not

processed meat. If you talk about some value-added product like mutton korma, mutton kheema or samosa, mutton paratha then 12 per cent GST is reasonable and one is ready to pay for such items but not for raw meat which is frozen, he said.

Arif of Al Hasan Agro Food too thinks that the current rates are too high as the industry was expecting it to be in 5 per cent slab rate.

What is the Goods and Services tax or GST? "Prime Minister Modi will take right and final decision considering all factors and appeals made to him. Hence right now, I do not want to share any comments regarding 12 per cent GST". Siraj Khan, Director, Ahmad Frozen Food Pvt Ltd. The GST is a single indirect tax for the whole nation, which will make India one unified common market. It is a single tax on the supply of goods and services, right from the manufacturer to the consumer.

Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.

GST would most positively impact the organised manufacturing and the Make in India campaign for goods. It is likely to benefit organised manufacturing in the following ways: It is likely to bring down the present incidence of taxation on goods from 26.5 per cent to 15-20 per cent. The removal of the inter-state barriers facilitating the free flow of goods and services is likely to reduce the logistics costs faced by the industry, bring them down to the world average of about 8 per cent.

Negative protectionism faced by Indian industry will come down as the countervailing duty is likely to fully compensate the domestic duties faced by the Indian industry. The inventory costs of industry are likely to go down.

As a destination-based tax, GST has an equity dimension. The developing states of India being consumption -oriented are likely to benefit from the introduction of the tax. This will aid in bringing greater

Agro & Food Processing June 2017

investments in the social and economic sectors. GST will also have a political dimension: It will bring the Centre and states together in new arrangements of fiscal engagement.

However, each state will need to create organisational structures in the form of a GST secretariat which will bring together senior officers of the Central Board of Excise and Customs and state tax officers.

The secretariat should be registered under the Societies Act and must be provided with a dedicated administrative secretariat and funds. Many of the anticipated implementation issues could be sorted out once the state GST secretariats are in place.

GST may also lead to a new thinking on the role of tax incentives in India. Numerous studies have proven that tax incentives are not the ideal way to encourage industry and attract investments. These incentives often do not meet the socio-economic objectives that they are designed to fulfill as they transfer resources from the poor to the not-so-poor. The industry is better supported through upfront budgetary allocations from the line ministries.

How will GST be levied?

The Central GST (CGST) and the State GST (SGST) would be levied simultaneously on every transaction of supply of goods and services except on exempted goods and services, goods which are outside the purview of GST and the transactions which are below the prescribed threshold limits. Further, both would be levied on the same price or value unlike state value added tax, which is levied on the value of the goods inclusive of central excise.

How will imports be taxed under GST? The Additional Duty of Excise and the Special Additional Duty presently being levied on imports will be subsumed under GST. Unlike in the present regime, the states where imported goods are consumed will now gain their share from this Integrated GST paid on imported goods.

Indian Meat Market India is largest exporter of buffalo meat and third largest exporter of meat after Brazil & Australia. India is endowed with the largest livestock population in the world. It accounts for about 58 per cent of the world buffalo population and 14.7 per cent of the cattle population. There

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37

are about 65.07 million sheep, 135.2 million goats and about 10.3 million pigs in the country.

infrastructure, laboratories facilities and record maintenance among others.

There are many reasons for the slow growth rate of the Indian meat industry, including the negative attitude of public towards meat on account of misinformation campaign and sociopolitical considerations. Meat exports from India commenced in 1969. For over four decades, it has built an enviable reputation of being a reliable exporter of risk-free, lean, nutritious and competitively priced meat.

The government has introduced 'meat.net' software to facilitate issue of health certificates through the system.

This has led to consistent, high compound growth rate in the export volumes. All these years, there has not been a single incidence of livestock- related disease outbreak reported from any one of the importing countries – numbering over 60 - as a result of Indian origin frozen meat import. Among the important buyers of Indian bovine and other meat are Vietnam, Malaysia, Thailand, Australia, UAE, Saudi Arabia and Egypt. India exports both frozen and fresh chilled meat. Among Indian states, Uttar Pradesh (UP) has emerged as the major exporter of buffalo meat, followed by Punjab and Maharashtra. Besides having the country's largest buffalo population, U P also has the highest number of abattoirs cum meat processing export units.

How big is the industry?

As per an APEDA report, UP is the highest producer of meat with 19.1% share, followed by Andhra Pradesh at 15.2% and West Bengal at 10.9%. From 2008-09 to 2014-15, the state produced 7515.14 lakh kg of buffalo meat, 1171.65 lakh kg of goat meat, 230.99 lakh kg of sheep meat and 1410.32 pork meat in the year 2014-15, data from the state’s animal husbandry department show.

Meat Production The Meat production has registered a healthy growth from 2.3 million tonnes at the end of Tenth Five Year Plan (200607) to 5.5 million tonnes at the end of the Eleventh Five Year Plan (2011-12).

Meat production in the beginning of Twelfth Plan (2012-13) was 5.95 million tonnes which has been further increased to 7.0 million tonnes in 2015-16. The production of meat and the corresponding growth rate (%) per year of the country from 2005-06 to 2015-16 is shown at chart.

How does Centre support the industry?

The Centre has been encouraging the meat industry and the food processing ministry by providing aid of up to 50 per cent of the cost of setting up a unit.

Uttar Pradesh accounts for nearly 50 per cent of India’s total meat exports and more than 25 lakh people are associated with the industry directly or indirectly, according to the All India Meat and Livestock Exporters’ Association.

India's meat exports stood at Rs 22,074 crore during April-January period of last financial year, the government said.

Meat exports stood at Rs 27,610 crore in the financial year 2015-16, Rs 30,201 crore in the 2014-15 and Rs 27,720 crore in 2013-14, Minister of Commerce and Industry Nirmala Sitharaman said in a written reply to Lok Sabha.

During April-January period of the 201617 fiscal, the country exported nearly 11 lakh tonnes of meat for Rs 22,074 crore, the data showed.

"As per the current foreign trade policy, all export oriented meat processing establishments are required to be registered with APEDA," Sitharaman said.

There are 81 companies engaged in meat processing and its exports, she informed.

The inspection of these processing units is being done by an inter-ministerial committee.

The panel comprises representatives from animal husbandry departments of the central and state governments, Export Inspection Council of India, Food Safety and Standards Authority of India (FSSAI), reputed veterinary scientists and food safety experts.

During inspection, the committee focuses on hygiene and sanitary standard, antemortem and post mortem inspections,

The Commerce Ministry facilitates exporters in overcoming various trade related issues. It also works with animal husbandry departments at the Centre and state level to resolve export related issues.

Government cattle slaughter ban The Centre passed an order on May 23 prohibiting the sale of cattle animals for slaughter, in a bid to regulate the sale of bovines at cattle markets. As per the order, cows, bulls, buffaloes, calves and camels were among the list of animals that were banned for sale at cattle markets. The notice also aimed to tighten the rules for those involved in buying and selling of these animals. The order received strong protests in several parts of the country. In Kerala, beef fests were organised by in a bid to protest against the decision. Kerala CM Pinarayi Vijayan also appealed to PM Narendra Modi to withdraw the order, saying that the move will affect millions of lives.

The move has worried India’s meat industry that it may affect their prices. As per data, India’s annual meat business is approximately estimated to be around Rs one lakh crore. In 2016-17, the industry recorded exports worth Rs 26,303 crore.

Apart from affecting the buffalo meat industry in India, who have stated that they were not consulted before the move, the ban is likely to affect the dairy industry, leather industry and farmers as well.

“Supply chain will be broken down if the new notification regarding cattle is implemented. When animals are not slaughtered, then what are you going to export? These abattoirs business will die down and eventually they will shut shop, that will impact the exports business.

Even legal abattoirs will be severely affected if the new addition to Prevention of Cruelty to Animals Act is imposed”, said Seraj Khan of Ahmad Frozen Food Pvt Ltd He further added that when one industry

Agro & Food Processing June 2017

TAX BURDEN

38 is going through a tough phase, then the rest of the allied industries also feel the heat. The downfall of the meat industry will affect 78 other allied industries, which will critically impact the Indian economy. A riot-like situation will erupt when everyone experiences extremely tense problems in their businesses.

On the other hand, the raids on illegal slaughterhouses in Uttar Pradesh have severely affected the state's meat export business and created a serious unemployment problem. According to exporters, orders worth Rs 4,000 crore have been cancelled and 30,000 workers have lost their jobs so far.

UP's meat processing units account for a substantial portion of exports from India.

In the period from April to December 2016 alone, Rs 7,285 crore worth of buffalo meat was exported from the state.

Lakhs of people are employed in abattoirs and meat shops.

Of 41 meat processing and export units in the state, 17 have been shut since the new government came to power. "The raids, coupled with the campaign by overzealous cow protection vigilantes, who have brought transportation of even buffaloes to a standstill, have led to acute shortage of animals, forcing these businesses to shut shop," revealed those involved in the trade.

Abid Ali, ManagerAl Marzia Agro Food said that there are some problems that the meat business in UP is currently facing but they will be solved with time. No doubt, any problem has an impact on the industry, but in time this problem of license/ unlicensed slaughterhouses will be sorted and normalcy shall return in UP’s meat business sector.

Arif of AL Hasan too believes that the current situation in Uttar Pradesh has badly affected the business as they are not receiving sufficient supply from the suppliers.

However, Chairman Dist,. Goat Rearing and Co-op Fed Ltd-Ahmednagar, Ashok Kale is quite happy with the Uttar Pradesh government’s move. “Meat needs to

be slaughtered in the right manner and hence only legal slaughterhouses should be allowed to function and other illegal abattoirs must be strictly confiscated.

India stands number one in meat exports and various international committees started propaganda that India slaughters meat in filthy & unhygienic places”, he said.

He urges that as per APEDA rules, whosoever wants to export meat, must have an own abattoir. Authorised slaughterhouses can only export meat.

The exports business is not affected as in India, there are several abattoirs of international standards and they are doing well.

Sadiq Director, Abuzar Exports also supporting the actions taken by Uttar Pradesh government. He believes that situation will not impact the legal slaughter houses in the country. To qualify for APEDA approved plant, one must have certified microbiologists and doctors’ teams and a renewed FSSAI documents. Every day, there are about 700-800 cattle that are slaughtered in these approved abattoirs. Those running illegal slaughterhouses, it is a major issue for them.

2017. Buffalo meat contributes nearly 25 per cent of India's overall agri exports from India.

However, Food processing minister Harsimrat Kaur Badal condemned that frozen beef exports have not come down, although representatives from the buffalo meat industry, which exports Rs 26,000 crore worth of meat annually, claim otherwise.

“I don’t think there are any figures to show that it is a reality (fall in figures of frozen beef meat export),” the minister claimed.

“As far as I know, exports take place from legal slaughter houses, because there is a quality and standard which has to be maintained. I doubt if there are illegal slaughter houses exporting meat.

So, to say that export has come down is incorrect,” she clarified.

This statement is in variance to the claims of the All India Meat and Livestock Exporters’ Association, a representative body for frozen beef meat exporters, which claimed that exports dropped around 8% in April. They expect the downward trend to continue.

With the supply of animals got badly disrupted for slaughtering due to beating of buyers by the politically-connect people, buffalo meat and live animals prices in the international markets have also risen. Live cattle futures for neat month delivery has jumped by 5.2 per cent since May 24 to trade currently at US cents 126.2 / lb. The future has witnessed 8.7 per cent jump in calendar 2017.

The buffalo meat industry has been badly hit by a recent notification by the Environment ministry banning the sale of animals for slaughter.

Meanwhile, data compiled by APEDA showed India's overall meat exports declined by over 11 per cent to 85,119 tonnes in volume term and 10.45 per cent in value terms to $257 million in April

But here is a government which wants to take care of not only environment pollution but also the health of the people and which wants to implement court orders,” she said.

Agro & Food Processing June 2017

The minister said the Supreme Court had stated that illegal slaughter houses must be shut because they were an environment hazard. “Many governments had turned a blind eye (to this) for political reasons.

E-REVOLUTION

39

How Internet based Electronic Commodity Markets can bring revolution for Farmers’ Income?

C

ommodity markets are lifeline for farmers. With the advancement in technology the mode of marketing has changes. Today wide range of options is available to all the stakeholders’ including farmers. Global integration of economies has complicated the decision making at local level and uninformed poor decisions will have serious implications on the stakeholders involved in commodity markets, both directly or indirectly.

Conventionally we had spot markets both in unorganised format like haat bazar or village markets and in organised formats like regulated market yards. Agriculture produce market committee (APMC) yards were created to support the farmers by better price discovery.

Unfortunately, these markets failed in delivering the expected results and the managers and stakeholders of APMCs started misusing the powers given under APMC act for their own vested interest and became power centres for political funding.

This discouraged even the political system to reform the distorted APMC system. The outcome obvious i.e. cartel of licence holder traders in the APMC exploited the system to the fullest at the cost of farmers and consumers. Policy

makers extended tacit support to sustain these cartels and never had will power to reform these APMC. Due to evolution of technology and better connectivity, there was development in markets as well. Alternate form of market emerged. These markets were designed not only to address the concerned of spot market but also the future needs of the stakeholders. These markets were designed to discover better prices and participation of considerable number of stakeholders were ensured to break the cartel in price discovery. Today, these markets have many features which are far better than traditional spot markets.

It is like a different between age old cabled landline phone and modern smart phones.

traders to form the cartels. It means there is better price discovery.

Price discovery: Very often people criticise the price discovery on electronic platforms. This is a clear case that if markets are not fully mature and developed and participation is limited, there are chances that cartelization can happen in these markets as well. The best and easiest way to break cartel is increase the participation in commodity markets. In electronic based market, it is very easy to trade from anywhere in the world and by any number of people with any limitation of geographical presence.

This is not possible under existing APMC

Features of todays’ internet based electronic commodity markets: Today commodity markets based on electronic platform can be accessed by any participant from anywhere in the world.

This has dismantled the power of local

Agro & Food Processing June 2017

E-REVOLUTION

40

Why Electronics Platforms are not preferred?

With all the merits in place and well established regulatory system in place, the biggest question is why the stakeholders did not extensively use these platforms.

Act, where local presence is important to execute the trade.

Number of Participants: On electronic platforms, there is no reason to limit the participation of the interest parties. The technology used can accommodate any number of participants provided they meet the criteria established under the rule and regulations. In case of APMC, the biggest challenge is that there is a role of cartel in permitting the new members.

It is universal fact that existing members are not keen to have more participation to avoid competition for their own business interest. Today, the APMCs are classic case of conflict of interests unfortunately supported and promoted by irrelevant and outdated policies and laws.

Transparency in the electronic trading system: There is no chance of human intervention in quoted prices. The prices reflected on the platform are the price quoted by buyers and sellers on the electronic exchange. There is free will of the buyers and sellers to transact or not to transact at given price for the commodity mentioned on the exchanges.

Third Party Guarantee and Assurance: The electronic trading platforms are managed by a legal entity under close scrutiny and supervisor of the regulators with a strict penalty clause. The role of trading platform is to ensure the quality of participants, the quality of material quoted as per contract specifications on platform and to ensure settlement of the contracted entered on electronic exchanges. Any deviation or non-performance can become part of investigation process and suitable remedial measures can be taken and the offenders can be punished as per the law prescribed by the legislators.

Transparency and accountability are becoming demerits: The biggest strengths of the electronic markets have become the biggest challenge. Unfortunately, several stakeholders are not comfortable with transparency and accountability in the system. In physical spot trade, there is a possibility of discretion and manipulation even at the last movement. Buyers and sellers can simply refuse to accept or prefer to manipulate the contract under one pretext or the other. Due to weak enforcement, it is easy for the influence parties to get away with the crime of breach of contract and the weaker party is left to suffer. In case of agriculture commodities, the weaker party is always farmers or consumers. In case of electronic exchanges, the transactions are transparent and ensured accountability that is why many stakeholders are not keen to participate.

Poor awareness was used to malign the efficient system: Vested interested parties were fully aware about the merits and strength of the transparent and accountable electronic system. They started facing the heat of the new system. This creates panic among them. It was in their interest to stop the evolution of this electronic system to protect their own personal stake. Careless attitude and poor management of the electronic exchanges in initial days helped these vested interests to capitalise on the bad experiences.

Cartels and vested interests spread all negative information about the electronic platforms and created a public opinion that these are electronic commodity exchanges are culprit for food inflation. Food inflation is also a favourite

Agro & Food Processing June 2017

topic for political system and media because these influences the vote bank dominated by lower section and middle class of the society. Moreover, impose of ban on sensitive agricultural commodities have further weakened the confidence of stakeholders and farmers in the futures markets which are widely perceived as “Satta Bazaar� (gambling market) in the farming community and ignorant middle class including policy makers.

Due to sheer ignorance about the commodity markets among masses and policy makers, the planted bad ideology succeeded over good concepts. This damaged the development of transparent, accountable, and vibrant commodity markets in India. Once again evil survived over good due to ignorance and immaturity of policy makers.

No effort made to educate farmers: The participation of farmers in commodity futures markets is extremely limited. According to market estimates, not even few thousands out of millions of farmers in India are directly or through their cooperative or producer companies are participating in the futures markets. Farmers can benefit directly from electronic commodity markets and their futures market by entering future contracts to sell their produce at a predecided price at a future date.

Farmers can also decide the crop they want to grow by planning directly based on the expected future price disseminated through the electronic exchange.

However, both these benefits have not been passed on to Indian farmers till date.

Lack of education, awareness and trust are among the most prominent reasons.

What is the way forward?

Awareness programs must be taken as

E-REVOLUTION

targeted activity: The SEBI, the regulator, and commodity futures exchanges with the support of their members should undertake new policy initiatives to increase the participation of farmers and commercial hedgers in the Indian commodity futures markets. There is enough fund available for consumer education. In fact, SEBI should create a separate body to undertake education programs for the stakeholders in a systematic manner. This can be funded by exchanged based on their predefined contribution to this activity which can be linked to the turnover of the exchanges.

All exchanges must contribute their share to this corpus committed for education and awareness so that there is no discretion with the management of exchanges, which is not their priority.

This must be treated as public interest activity and suitable tax incentives can be extended for the contribution.

Develop reach to the farmers by following time bound activities: 1. Place price ticker boards, develop a universal SMS services, apps, and website for all prices in regional languages to display futures and spot prices on a real-time basis. These should be installed at all major junctions where farmers gather including bus stands, local mandis, post offices, bank branches and public community places. This awareness will force the farmers to take the note of prices on electronic exchanges. The dissemination of prices would immensely benefit farmers to take appropriate decisions before selling their crops in spot market in APMC mandis. This will also

41

help in deciding next crops during presowing and post-harvest period.

2. The policy makers should appreciate the ground reality of Indian agriculture and discourage copying of western concepts blindly. For small farmers group, it is must to launch micro and mini contracts (with small trading lots and tick size) across all agricultural commodities to encourage the direct participation of farmers and their associations or cooperatives.

3. The use of speculative trading concepts like alog trading should be barred in agriculture segments. Concepts like options with mandatory deliver or threat of delivery must be introduced to improve confidence and utility of the exchanges for the buyers and sellers.

4. Farmers are too small entity to trade due to lack of resources and understanding.

The government should allow farmer cooperatives and agricultural marketing federations (such as Cooperative, FPO, IFFCO, NAFED, etc.) to act as aggregators and hedge positions in futures exchanges on the behalf of their member farmers.

5. The governments (both at centre and state) should work on war footing for policy reforms to remove bottlenecks such as fragmented spot markets, lack of road connectivity, insufficient number of accredited warehouses, grading facility, and other infrastructure bottlenecks.

6. Policy makers should develop strict classification criteria and reporting system to segregate market players into two

major categories – commercial hedgers and non-commercial traders – across all commodity futures exchanges. There should be mandatory data reporting of participation by market players, based on categories and their market positions. In the developed markets, regulators release weekly report on trader positions with a breakdown of aggregate positions held by commercial traders (hedgers), noncommercial traders (large speculators) and non-reportable (small speculators).

This will help in understanding the changing structure of the market and suitable policy and regulatory steps can be initiated to prevent distortion of markets in initial stages itself.

The growth of commodity futures markets in India mainly in agriculture sector will help the farmers in dismantling powerful trading cartels. It has also helped farmers take sensible and more broad-based decision on production, storage and marketing of farm produce, the study noted. This will minimize the policy risk for the farmers and consumers as well because market forces will try to correct the policy risk well in advance.

Timely and advance indication about market prices will help the farmers in better risk management and better price realization. This will help them in improving their living standard. Will policy makers and exchanges work hard in timely manner to win the comfort and expectations of the stakeholders’ or not, only time will tell.

Source: www.sardanavijay.blogspot.com

Agro & Food Processing June 2017

CONSUMER CO-OP

42

Time to tap the consumer co-operative movement in India Consumer co-operatives in rural areas present a big opportunity for food companies to reach out to the rural population and expand the consumer base for their products Sunil Kumar

I

ndia’s FMCG market is about INR 3-3.5 lakh crore and 60-65 per cent of this market lies in rural areas. Most of these rural markets are covered by small kirana stores, which are over 50 lakh in number. However, due to their small store size, limited storage/ shelf capacity, meager investment capacity and other constraints, these stores cannot stock and display many good brands that are available in the Metros and urban areas.

This limited availability of brands holds true for many categories but is especially pronounced in spices and rice category.

As a result, most of the kirana stores in rural areas sell products such as spices, condiments, rice, etc, in loose and not packaged form.

Herein lies a big opportunity for manufacturers of such products to disrupt the rural market and expand the consumer base for their products. The way to go about it is to begin tapping the vast number of co-operatives stores, which exist in this country under different consumer co-operative federations.

The logic for taking such an initiative is very simple. As mentioned earlier, over 60 per cent of India’s FMCG market is in rural areas and there are more than three lakh consumer co-operatives in rural areas. Consumer co-operatives are enterprises owned by consumers and managed democratically with the aim of fulfilling the needs and aspirations of their members. Consumer co-operatives often take the form of retail outlets owned and operated by their consumers, such as food co-ops.

One of the world’s largest co-operative federations operates in the UK as The Cooperative (commonly referred to as “The Co-op”), which together operate over 5,500 branches of ‘The Co-operative’ branded business including The Cooperative Food (The UK’s fifth largest supermarket chain). In India, there are over 6,000 consumer marketing cooperatives with a sales turnover of over 82,000 million rupees annually. Some of the more well-known consumer cooperatives in India are Amul, MARKFED,

Mother Dairy, Kerala Milk Consumer’s Federation, among others. MARKFED, based out of Punjab is one of the leading consumer co-operatives in Asia and has a network of over 40 dealers in Punjab.

Kendriya Bhandar with over 97 stores in Delhi-NCR has sales turnover of INR 1, 02,085.96 lakh.

In Maharashtra, the state consumer cooperative stores operate under the brand name “Apna Bhandar” and it has over nine stores in Nashik, Nagpur, Sangali and a few other places. Another Co-operative with retail stores in Maharashtra is Sahakari Bhandar that operates 22 stores under Reliance Retail and is one of key retail players in Mumbai and around.

These consumer co-operatives work on very thin margins and do not require heavy listing fee unlike their MT counterparts.

So they offer a wonderful opportunity for food companies to invest in by allocating appropriate marketing budgets for instore activities in such cooperatives.

In Madhya Pradesh, under MP Consumer Cooperative Federation Ltd., there are more than four “Priyadarshini Supermarkets”. Similarly, in Bangalore, there is the Karnataka State Co-operative Consumers’ Federation, a State level institution registered in the year 1964 and with 26 members.

The Federation is running five Janata Bazaars in Bangalore, apart from having six branches in other districts. The Federation also operates nine KSCCF branches in other places in the State besides running eight pharmacies as well.

Agro & Food Processing June 2017

It is high time that food companies and manufacturers should go for ‘Cross Promotions’ and ‘Special Display’ in these co-operatives. These cooperative outlets offer a very good platform for all slow moving FMCG SKUs, which can get promoted in these stores with special discount offers.

In the future, all e-commerce companies will most probably use these consumer co-operative stores for extending and strengthening their hyperlocal or marketplace models.

The reason is that these co-operatives are well located within the rural areas and offer the best way to penetrate the rural market. Besides, there is no need to create a market as it already exists and there is enough footfall in these stores.

The food companies just need to tap the potential by offering the best of deals, and create awareness about their products. Consumers in these stores want to experience the ‘Modern Trade’ store arrangement and assortment, visible in the urban areas. For those who take the initiative, it can be the most opportune time for companies to help in the modernisation of these cooperative stores. Also, these co-operative stores have access to real estate and land that comes very cheap unlike the cost of land in urban areas where retailers need to pay huge rents. So both food brands and retailers are better placed to offer attractive deals to the consumers in these rural areas. Food companies should exploit this hidden potential and tap cooperative stores for growth, profitability and market reach.

HUL is one company that has been trying to explore this area and has done reasonably well so far.

ITC is also trying hard to catch up. Unless food companies tap such unexplored channels, it’s difficult for them to grow and sustain in this ever changing and competitive business world.

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44

BEHAVIOURAL ECNOMICS

Behavioural Economics is the Future of Packaging The study of how we make decisions and why we choose to buy certain products is becoming the focus of consumer goods companies and retailers

By PRS IN VIVO

H

ave you ever wondered why the shopping list you made at home never tallies with what ends up in your trolley at the supermarket checkout? That’s because much of your shopping experience is happening at the subconscious level and packaging is driving your decisions. The colour, shape, design, logos and branding all nudge us to make choices in store. We succumb to instinct and default to the familiar as we walk down the aisles. Most of us are not robots that consistently rely on rational calculations. Instead, we are wired to look for so called shortcuts and make irrational decisions repeatedly, albeit in predictable ways.

“People simply don’t have the time or mental bandwidth to actively compare all the options in a category,” says Scott Young, Chief Executive of PRS IN VIVO, a market research agency focused on packaging, shopper marketing and new product innovation. “So, our decisions are driven by ingrained habits and by which packs are quickly seen, recognised and understood.”

The proliferation of choice across many retail environments has made it much harder for packs to break through the clutter. This is one reason marketers are increasingly interested in deciphering shopper behaviour. Millennials are a challenge as they are less likely to be brand loyal or be influenced by traditional advertising.

Behavioural economics is the study of how we make decisions and why we choose to buy certain categories or products. It goes beyond traditional rational economics by considering that there is a strong social, contextual, and irrational element to how humans function. This science is now very much part of the lexicon of consumer goods companies and retailers in the UK, and the future of packaging is being increasingly driven by learnings from this research discipline.

“It is a new way for us to think about shopping behaviour and to help our clients develop more successful packaging, instore communication and new product launches,” explains Young.

Agro & Food Processing June 2017

Packaging is a consumer’s single most important touchpoint with a brand; it needs to embody a brand’s core values and convey the product’s unique selling point.

The science is now evolving rapidly.

Retailers, manufacturers, and market researchers cannot only monitor the choices we make, but they can influence them too. For example, online retailers such as Amazon and Netflix are aware of your previous purchases, so they suggest books and movies that you’re expected to like. They generate suggestions that nudge you in the right direction.

“Many corporations are increasingly using sophisticated behavioural economics to influence the consumer,” says Andy Rushforth, Managing Director at PRS IN VIVO UK, who works with companies such as Unilever, P&G, and Nestlé. “A great pack is a key part of that process. For starters, you have to be seen in-store to be bought.”

In addition to a product standing out on the shelf, it is critical for packs

BEHAVIOURAL ECNOMICS

45

to differentiate and justify price premiums. That is particularly challenging for well-known brands in an age where discounters have made price an all-important factor, especially post-Brexit with prospective inflation inflamed by the slide of sterling.

“In this volatile economic climate, it is increasingly important for brands to connect on a visceral or emotional level with shoppers,” says Rushforth. “Packaging is a consumer’s single most important touchpoint with a brand; it needs to embody a brand’s core values and convey the product’s unique selling point.”

In this tough environment, it is vital for marketers to get their packaging right. But to do so, they cannot always rely on what shoppers tell them because shoppers are not a reliable source when it comes to describing their own behaviour. “What shoppers say often does not correspond to what they do in-store – this creates a major challenge for us,” says Young, whose company conducts more than 1,000 packaging and shopper studies each year, “and it means that we need to focus on observing actual behaviour, rather than asking questions.”

This is one reason PRS IN VIVO extensively uses several types of eye-tracking in its research, both in actual and simulated stores. This technology allows their researchers to see what shoppers focus on and what they ignore. It helps ensure packaging attracts the eye and holds our attention. “Eye-tracking is valuable because it captures subconscious behaviour, which shoppers typically lack the vocabulary to tell us about because it happens so quickly,” says Rushforth.

The company is continually expanding its network of ShopperLabs, with multiple locations both in the UK and across the world. These mini-stores can be customised to look like a section of a supermarket or many other retail environments, such as pharmacies, pet stores or convenience outlets. The ShopperLabs are often used to simulate the introduction of new products and packaging systems, with cameras and two-way mirrors allowing researchers to observe consumers behaving in a very natural way in the aisles.

“So many new products fail because they are developed and screened in isolation, far removed from competitors and realities of the store and shopping process. If we want to create and effectively assess truly breakthrough ideas and innovative packs, we need to start in the aisle,” explains Rushforth. “The fact is people do not really know what they want, until they see it in context on the shelf.”

As researchers continue to learn about the complexities of human decision-making, they are increasingly recognising the power of packaging. Behavioural economics represents a crucial step forward on both counts. “This new framework encourages us to dive beneath the surface and think beyond rational claims in developing and testing new packaging,” says Young, “and it also continually reminds us and our clients that great packaging can influence so many purchase decisions.”

Source: www.raconteur.net

Agro & Food Processing June 2017

NEWS

46

Shirish Adi Appointed Vice President & Managing Director, India, For Emerson’s Commercial & Residential Solutions

I

n his new role Shirish Adi, Vice President & Managing Director, India, for Emerson’s Commercial & Residential Solutions will be responsible for the entire business and operations in the country.

He will be directing and leading the organization to drive growth and profitability in line with Emerson’s strategic direction and business ethics. Shirish takes over from Sridar Narayanswami who has been promoted as President, Middle East & Africa, for Emerson’s Commercial & Residential Solutions. Shirish will be based at the company’s India headquarters at Pune and will report to Hakan Erdamar, President, Asia and Middle East & Africa, for Emerson’s Commercial & Residential Solutions.

Speaking on the occasion, Hakan Erdamar

said “I am delighted to announce the appointment of Shirish to this key position. It is an exciting time for us as we continue to provide innovative products and solutions for the Heating, Ventilation, Air Conditioning and Refrigeration (HVACR) industry, additionally products for commercial & residential solutions.”

Shirish Adi has over 27 years of stellar experience at Emerson progressing through various management roles from the time he joined Daniel India operations.

He rose to become the General Manager/Managing Director of Daniel Measurement

Agro & Food Processing June 2017

As well as it Entity leader. In 2013, Shirish moved as the Business Director for Rosemount in India, with complete Profit & Loss (P&L) responsibility. Prior to joining Emerson, Shirish has worked with Advanced Spectra-Tek and DDE ORG Systems.

NEWS

47

Innovative and attractive packaging plays a key role to achieve productivity

O

nkar Singh, Proprietor-Jaypees Instant Mixes used Nichrome idli batter Packaging solution for their business and was pleasantly surprised with the results. In a candid conversation with this magazine, Singh speaks about the successful run of his business and how innovative packaging has been beneficial for him.

Q.1) What compelled you to enter this line of business?

We had no plans to enter this business but it happened accidently. My father was posted with Air Force in southern India and while shifting back to Pune, he bought along a grinder for idli and dosa batter.

It started with relatives and neighbours first, requesting us to grind their batter.

Slowly word spread like fire and soon we started using machine to offer grinding services. One fine day, my father decided to put a stop to this and displayed a board with a price tag for grinding batter. This strategy instead had a reverse effect with increased demand to grind batter.

We foresaw this as an opportunity and decided to become start up in this business.

Q.2) Branded idli Batter is a new trend, how do you view the growth rate of this market?

The growth and potential is huge in this segment as increasingly people are opting for ready batter to make delicious idli’s and dosa as a healthy alternative.

Our Brand is presently available in the state of Maharashtra and we are planning to expand in near future to serve customers across the nation. Our product offers saving time & efforts to make available healthy consistent quality breakfast needed by new generation working couples.

3.What kind of idli batter packaging solution are you using?

We are using Nichrome’s fully Automatic form fill seal packaging machine for idli batter. Earlier, we were using a semi-automatic machine that we have stopped using since a year. This machine has improved our productivity, reduced our costs and minimised our dependability on manpower by almost 50 per cent level compared to earlier operations.

4. Idli batter is a perishable product, how will this type of packaging help to preserve the freshness and taste?

The use of high barrier laminate films for flexible packaging of Idli batter offers improved shelf life of the product under cool chain. This in turn results in

increased market penetration & reach untapped market as well. We are also planning to enter rural market as well.

Our attractive packaging enables to distinguish our product on retail shelves from our competitor increasing recall of the brand.

5. What are the unique specialities of this idli batter packaging solution?

The current packaging machine is a high speed fully automatic solution which has helped us reach packing speed of 1200 kg per hour from the earlier capacity of 360 kg /hour.

The Hygienic production & packaging process is untouched by hand meeting Modern Food Industry norms and FDA standards. The CIP (cleaning in place) process for the form fill seal machine is very easy as our product involves fermentation and it is vital for production process.

6) As a successful start-up in innovative food industry player, what message will you give to budding entrepreneurs.

Out-of-Box thinking & commitment, perseverance is key to succeed in food related business. Conversion of ethnic Indian food to modern retail friendly product is a great challenge. There is huge scope for start-ups to convert more & more ethnic Indian foods to offer Indian cuisine to global community.

Odisha state aims for growth in seafood exports

S

eafood Exporters’ Association of India, Odisha region praised the state government for formulating brackish water land leasing policy in a bid to increase production of export varieties of seafood. Odisha aims to achieve fivefold growth in seafood exports to touch Rs. 20,000 crores in next five years from Rs. 2,000 crores. Now the government has decided to lease out nearly 24,000 hectares of brackish water areas and develop required infrastructure.

At an event organised, the association members demanded the government to initiate steps for leasing out the potential areas to achieve the export target. Acknowledging the efforts

of former secretary of Fisheries and Animal Resources Development (FARD) Department Bishnupada Sethi for bringing out a brand-new fisheries policy, State unit President of the association Ajay Dash said, Odisha will be a pioneer in aquaculture development and fisheries sector if the policy is implemented properly.

President of Odisha Fish Producers’ Association Kameswar Narayan Praharaj said diesel is consumed more by the trawlers in the state than neighbouring states. But, the Government is yet to provide subsidy on the fuel which is enjoyed by States like Andhra Pradesh, Tamil Nadu, and Kerala.

Seafood Exporters’ Association felicitated Sethi for his contribution in promoting fisheries and seafood sector. He is now posted as Secretary of Rural Development Department. Secretary of FARD Vishal Gagan and Director, Fisheries, Bijay Ketan Upadhyay were also felicitated.

Sethi advised association members to go for technological upgradation to reduce cost of production and compete the international market. Gagan emphasized on participation of more private players in seafood sector and feels governmentprivate participation would help bring a sea change in the sector.

Agro & Food Processing June 2017

NEWS

48

Conveyor Belts are the heart of a conveying system Ultraplast Chainbelts Private Limited are certified manufacturers and exporters of a wide range of parts, components & Shashank Sharma accessories of

CEO - Ultraplast Chainbelts Pvt. Ltd. industrial conveyor systems. The product portfolio includes conveyor systems, belt conveyor systems, automated conveyor systems, roller conveyor systems, plastic modular belts, stainless steel slat chains, thermoplastic slat chains, UHMWPE Wearstrips & corner tades, drive sprockets & idlers, side brackets & clamps and connecting clamps & handles & hinges. To meet the diverse requirements of clients, they even offer customization of products that fulfil clients’ requirement.

Shashank Sharma has extensive experience of 15 years as an engineer in conveying & packaging line. With his support and guidance, Ultraplast Chainbelts serves some of reputed companies such Coca Cola, Pepsi, Sab Miller, and Dabur; across India, Africa, South Asia, and Middle East countries.

Q.1) What are the latest trends in automation for the food & processing industry?

The modern machinery is a very technically advanced piece of equipment.

Automation plays a very important role in synchronisation of the various processes being executed by any equipment. This leads to increased productivity, reduction in man hour losses as well as material wastages.

We can get more consistent product quality and produce various products in the same equipment due to easy control of operating parameters and a very short changeover time due to automation.

Q.2) Describe the significant role that conveyor belts plays in the automated machinery used with regards to food industry?

Conveyor Belts are the heart of a conveying system. There are a wide variety of Belts available to suit the production process requirements. From minus 40 deg C for an IQF application to 200 deg C application in a Shrink Tunnel, there are belts suited for all environments, operating conditions, and applications.

Special Purpose conveyor belts are critical for delicate product transfers to mass conveying of products. They are the most economical and efficient way of transporting various kind of products from one place to another.

Q.3) Elaborate on product profile of your company. Kindly also share the latest innovations.

ULTRAPLAST started in 1999 with a very a humble beginning but with a fierce determination to improve matters, especially in the conveyor belt field. We are pioneers of the Plastic Modular Belts in India and have the largest range among Indian manufacturers. Our products are used by a wide range of Industries from food processing, beverages and bottling, dry fruits, snack food industry, to tyres and tubes manufacturing, bearings manufacturing as well as general conveying of innumerable

products. We are developing innovative designs and features constantly based on our customers feedback. We are also developing a new high temperature Polymer Belt for applications between 150 and 250 deg C. Q.4) In comparison between Indian and international conveyor belt systems, where does India stand? Has India matched the levels of international standards in terms of quality & hygiene?

India has a long way to go, as the demand for high quality products is still to mature.

Most of small Indian conveyor manufacturers are not technically aware of the importance of proper conveyor belt selection and therefore fall into the low cost, cheap quality product trap. However, the future is very bright as demand is steadily growing and with conveying and automation coming up heavily we foresee a huge demand for medium quality and top-quality conveyor belts in India.

With increased awareness, we hope to catch up with the international standards of quality and hygiene very quickly.

Q. 5) What are your prospective plans for next 5 years? What's the investment for these plans?

We will be entering the specialized conveyor belts segment. These are dedicated belts developed specially for a process in specific Industries. The next challenge is to make our belts perform under very high speeds over 100 mtr per minute with a consistent performance.

We also are developing new designs of belts which did not exist before for special purpose applications like handling candies and soft cookies.

Q.6) What advice you would give to the young generation who aspire to become a leader like you?

Intelligent hardwork is the key. Keep updating your knowledge and work tirelessly.

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

A

s good quality domestic crops have come to the market, India's wheat imports have slowed in recent weeks, leaving traders burdened with unsold stockpiles in port silos and is a headache for traders who shipped cargoes anticipating strong demand.

Unsold wheat at Indian ports highlights the plight faced by global grains trading companies amid a global supply glut.

Wheat inventories at ports have climbed to a record high of about 1.8 million

tonnes, mainly cargoes shipped from Australia and the Black Sea region, trade and industry sources said.

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

Agro & Food Processing June 2017

since the late 1990s, according to US government data.

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

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

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Firoz H. Naqvi : +91-9867992299 Seema Shaikh : +91-8689979988 121, 1st Floor, Rassaz Multiplex, Mira Road (E), Thane - 401107. India. Tel: +91-22-28555069 / 28115068.Email: info@agronfoodprocessing.com Web: www.agronfoodprocessing.com

Agro & Food Processing June 2017

FOOD TRENDS

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Global food trends: Enjoyment with individual added value

F

rom 7 to 11 October 2017, the largest and most important food and beverages fair in the world will open its doors. At Anuga more than 1, 60,000 national and international top decision-makers from the branch come together. In the scope of industry sponsors, the Federation of German Food and Drink Industries (BVE) support Anuga as the international meeting point. The fair participants are offered the opportunity to experience the entire world of food and drinks in all its extraordinary diversity at no other place. The BVE presents itself at the ‘Anuga Fine Food’ trade show together with the German Ministry for Food and Agriculture (BMEL) under the ‘Made in Germany’ seal of approval. We heartily invite the visitors to explore and of course try out the performances of the German food manufacturers themselves.

Global food consumption trends The growth of the global population and economy increases the demand for processed food long-term. An increasing urbanisation, more employment and training, but also improved income and provision situations are at the same time leading to a change in food consumption.

The food manufacturers have to cater more to the individual requirements of the customers and the consumption needs and adapt their products to suit the markets. For the manufacturers not only productivity increases, but also measures for the improved sustainability and efficiency of the food production are necessary. But also on the consumer side, the awareness for the value of food is growing. Not only is the reduction of the purchased volume, but also campaigns about the avoidance of food waste a global trend.

Development of the demand for food in EU A high purchasing power and high standards of good 510 million consumers make the European Union an attractive sales market for food producers worldwide.

The taste continues to be the most important quality criterion on the European food market. Beyond the enjoyment, the consumers also demand individual added value from the products. The product

has to correspond with the everyday and dietary needs of the customers.

The strong trend towards convenience products has been overtaken by the consumers' increased orientation towards health. The focus is on transparency and responsibility towards the environment and the employees. Consumers purchased organic products the most frequently in Denmark, Sweden, Luxembourg, Austria and Germany. These trends apply across all product categories. However, the most new products are found in the segments ready-made meals, dairy products, soft drinks, frozen products and meat.

Germany is the third largest importer and exporter of food in the world. The highly competitive and demanding domestic market has turned the German food industry with its 5, 81,000 employees in around 6,000 businesses and a turnover of Euro 172 billion into the largest and highest exporting European food industry.

The most important trading partner with an export share of 78 per cent is the EU, followed by Asia with 8.8 per cent. In 2016, quality ‘made in Germany’ food to the value of Euro 57 billion was exported abroad, which corresponds to every third Euro of the turnover.

Trend market Germany With more than 81 million qualityconscious and quality-oriented consumers, Germany is Europe's largest food market. Consumer confidence in Germany is at a high and positive level while also lying significantly above the European average. Germans spend 10.5 per cent of their disposable income on food and non-alcoholic drinks and are well below the European average in this regard. However, it is important to take the relatively high income level in Germany into consideration here.

The palette of products ranges from traditional German specialties to the newest food innovations. Especially popular are meat and dairy products as well as sweets. The increasing export focus of companies confirms that opportunities for growth abroad are good.

Markets outside the EU hold increasing promise for sales and almost 80 per cent of foodstuff producers already export their products to non-EU countries.

The exporters are adapting to meet the different market challenges.

The great diversity of offers and the high expectations of consumers make Germany a trend market for food. Thus a good 40,000 new products enrich the offer annually and new market segments are constantly arising. Superfoods, vegetarian, vegan, gluten and lactosefree products, light and convenience products, but also products with special production features such as regional, sustainable, Fair Trade and organic are all continuously on offer on the market today. The product portfolio is continually further specialised, differentiated and reinvented faster and faster.

But also the food manufacturers and distributors have to react to the changed mealtimes and eating places of the customers with products that fit into their everyday routine. Correspondingly, the offer of new convenience products in differing degrees of processing and freshness as well as price segments is growing.

German food is popular around the world for its quality

Agro & Food Processing June 2017

Foreign trade in food between India and Germany India is an increasingly important trading partner for Germany in Asia. In the 2016 ranking list of Germany's trading partners for processed foods, India ranks 73th for exports and 27th for imports.

In 2016, India delivered processed foods with a value of around Euro 256.1 million to Germany, representing a decline of 7.2 per cent. The most important products delivered include nuts and dried fruit, coffee, tea and maté, fresh fruit, fish and fish preparations as well as vegetable preparations and tinned vegetables.

India is not only an increasingly important purchase market for Germany, but also a sales market with future potential.

In 2016, Germany exported Euro 28.5 million worth of processed foods to India, 8.9 per cent more than in the previous year. Sugar products, milk and dairy products, plant oils and fats, spirits, cocoa products as well as bakery products are amongst the most important products delivered.

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Agro & Food Processing June 2017

NEWS

52

Record power capacity of 161 GW added, for 23% less investment (USD 241.6 billion)

A

nother Record Breaking Year for Renewable Energy: More renewable energy capacity for less money REN21 published its Renewables 2017 Global Status Report (GSR), the most comprehensive annual overview of the state of renewable energy.

Additions in installed renewable power capacity set new records In 2016, with 161 gigawatts (GW) installed, increasing total global capacity by almost 9% over 2015, to nearly 2,017 GW. Solar PV accounted for around 47% of the capacity added, followed by wind power at 34% and hydropower at 15.5%.

Renewables are becoming the least cost option.

Recent deals in Denmark, Egypt, India, Mexico, Peru, and the United Arab Emirates saw renewable electricity being delivered at USD 0.05 per kilowatt-hour or less. This is well below equivalent costs for fossil fuel and nuclear generating capacity in each of these countries. Winners of two recent auctions for offshore wind in Germany have done so relying only on the wholesale price of power without the need for government support, demonstrating that renewables can be the least cost option.

The inherent need for “baseload” is a myth.

Integrating large shares of variable renewable generation can be done without fossil fuel and nuclear “baseload” with sufficient flexibility in the power system – through grid interconnections, sector coupling and enabling technologies such as ICT, storage systems electric vehicles and heat pumps. This sort of flexibility not only balances variable generation, it also optimizes the system and reduces generation costs overall It comes as no surprise, therefore that the number of countries successfully managing peaks approaching or exceeding 100% electricity generation from renewable sources are on the rise. In 2016, Denmark and Germany, for example successfully managed peaks of renewables electricity of 140% and 86.3%, respectively.

Global energy-related CO2 emissions from fossil fuels and industry remained

stable for a third year in a row despite a 3% growth In the global economy and an increased demand for energy. This can be attributed primarily to the decline of coal, but also to the growth in renewable energy capacity and to improvements in energy efficiency.

investment fell 30%, to USD 116.6 billion, while that of developed countries fell 14% to USD 125 billion. Investment continues to be heavily focused on wind and solar PV, however all renewable energy technologies need to be deployed to keep global warming well below 2C.

Other positive trends include: Innovations and breakthroughs in storage technology will increasingly provide additional flexibility to the power system.

In 2016, approximately 0.8 GW of new advanced energy storage capacity became operational, bringing the year-end total to an estimated 6.4 GW. Markets for mini-grids and stand-alone systems are evolving rapidly and PayAs-You-Go (PAYG) business models, supported by mobile technology, are exploding.

In 2012, investments in PAYG solar companies amounted to only USD 3 million; by 2016 that figure had risen to USD 223 million (up from USD 158 million in 2015).

Transport, heating and cooling sectors continue to lag the power sector.

The deployment of renewable technologies in the heating and cooling sector remains a challenge considering the unique and distributed nature of this market. Renewables-based decarbonisation of the transport sector is not yet being seriously considered, or seen as a priority. Despite a significant expansion in the sales of electric vehicles, primarily due to the declining cost of battery technology, much more needs to be done to ensure sufficient infrastructure is in place and that renewable electricity powers them. While the shipping and aviation sectors present the greatest challenges, government policies or commercial disruption have not sufficiently stimulated the development of solutions.

Arthouros Zervos, Chair of REN21 said “The world is adding more renewable power capacity each year than it adds in new capacity from all fossil fuels combined. One of the most important findings of this year’s GSR, is that holistic, systemic approaches are key and should become the rule rather than the exception.

As the share of renewables grows we will need investment in infrastructure as well as a comprehensive set of tools: integrated and interconnected transmission and distribution networks, measures to balance supply and demand, sector coupling (for example the integration of power and transport networks); and deployment of a wide range of enabling technologies.

But the energy transition is not happening fast enough to achieve the goals of the Paris Agreement Investments are down.

Although global investment in new renewable power and fuel capacity was roughly double that in fossil fuels, investments in new renewable energy installations were down 23% compared to 2015. Among developing and emerging market countries, renewable energy

Agro & Food Processing June 2017

Fossil fuel subsidies continue to impede progress.

Globally, subsidies for fossil fuels and nuclear power continue to dramatically exceed those for renewable technologies.

By the end of 2016 more than 50 countries had committed to phasing out fossil fuel subsidies, and some reforms have occurred, but not enough. In 2014 the ratio of fossil fuel subsidies to renewable energy subsidies was 4:1. For every USD 1 spent on renewables, governments spent USD 4 perpetuating our dependence on fossil fuels.

Christine Lins, Executive Secretary of REN21, explains “the world is in a race against time. The single most important thing we could do to reduce CO2 emissions quickly and cost-effectively, is phase-out coal and speed up investments in energy efficiency and renewable.

Trump’s withdrawal of the US from the Paris Agreement is unfortunate. But the renewables train has already left the station and those who ignore renewables’ significant role in climate mitigation risk being left behind.”

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The Technofour story Unprecedented global achiever

F

orty-five years ago, four young brains came together with one daunting mission: to design and build a whole range of world class sophisticated Eddy Current nondestructive test systems.

Today the Technofour group takes pride in their products. Apart from possibly the best Eddy Current NDT systems in the world, the group has three other major lines of business: Highly sophisticated metal detectors for pharmaceutical, cosmetic, food and other industries; Check-weighers systems and mechanical handling systems and robotics.

Technofour have now diversified into Ultrasonic Flaw Detectors as well as Barkhausen Emission Analyzers. Technofour take pride in introducing the World's smallest credit card sized Eddy Current instrument - the EddyUSB, Ultrasonic flaw detector UTUSB and the World's first Bluetooth enabled instrument, the EddyBLU. The Metal Detectors are widely used for detecting the external metal contamination in the finished product. The metal contamination may be sourced from raw material, during process, maintenance work, human error, etc.

The company also introduced Pin Hole Detector and Dedusters system decade ago, especially for the Pharmaceutical segment. These systems are also Indigenous and based on the world class techniques.

All the systems manufactured by Technofour are based on the latest State of Art Technique, offering the latest features - which are at par with the global market.

In a candid conversation with Suresh Subramanium, General Manager, Technofour group, we got to know about the company’s plan for expansion and development. Also the visionary shared

with us the company’s marketing trends and practicExcerpts from the interview: Can you brief us about your company, its state of art facility, production capacity and area of the capacity?

Technofour is situated at the outskirt of Pune city, Maharashtra, India, spread in about 7 Acres of land with Excellent manufacturing facility. Here we have constructed about four sheds, where we manufacturing metal detectors, checkweighers, dedusters and certain dedicated handling systems.

We manufactures about 70 to 80 metal detectors per month, 30 to 35 check weighers per month and about 30 dedusters per month Apart from this we manufacture about 30 handling systems in a month.

manufacturers – both big and small- are becoming sentient. Like now, even small manufacturers thinks of incorporating metal detectors in his machineries before staring manufacturing, so that he fulfills the audit requirements.

Your machinery has drastically changed with time, so as compared to the International standards how apt are your machineries now?

Whenever we used to participate in International exhibitions, people used to remark on our finishing and astatic.

Technofour acknowledged that though our parameters were up to the mark technically but we needed to work on our systems superficially. We took this as a challenge and worked out on the modes of fabrication, the ease of fabrication, so that the welding and joints were not visible.

On the finishing part we worked on every minute detail so that our detectors, weighers of dedusters were no less than any global competitors. Now, the systems of TEPL are based on the latest techniques and offer world class quality and fulfill all the norms required internationally.

But the demand of our product has been increasing drastically and to meet it we are going to double the production capacity within a couple of month. The demand is actually surpassing the manufacture.

Indian food processing industry is growing day by day, and with it the need for advance technology in food safety has become need of the hour, how is Technofour working towards meeting the demand?

In Indian food industry, earlier food safety was not such a big issue and neither was the use of the metal detector. These issues were only prominent in the multinational companies who were very dedicated with their principles.

But now thanks to the FSSAI, consumer forums, consumer awareness and development of technology, the Indian

In fact systems manufactured by Technofour are based on the latest State of Art Technique, offering the latest features - which are at par with the global market today.

There is now a stringent food safety guideline both in the food and Pharma industry, so how competitive and technically advanced your machines are?

If technically you mean sensibility wise, feature wise, functioning wise or look wise, we measure up to it. Whatever requirement that are required by the food regulators and the industry’s practical vibration controls are completely fulfilled by us.

In fact all the functions and technology of our equipment’s are at par with all the Europeans and US systems that are present in market. Technofour hence is

Agro & Food Processing June 2017

SUCCESS STORY

54 fulfilling all the global guidelines.

So your machineries are globally traded now and your client includes best of the manufactures also?

Yes, we now sell our machineries to the best of the manufacturers in both food and Pharma industry; In fact our buyers include multinational companies who have always preferred imported equipment but now are buying our machinery.

Just recently in the exhibition in Germany, the InterPack exhibition -one of the world's most important fairs of the packaging industry- we adhered that the Europeans were very impressed with our equipment especially its quality, look and cost. And now they are all set to buy our machines and we are all set to increase our export market.

Moreover, our machineries are offered with ease of operation and maintenance.

The excellent after sales support arrangement across the globe is an added value for the customers globally.

TEFL was among the very few companies who were visible in InterPack exhibition in Germany this year, what was experience in participating there and what kind of impact does this

kind of exhibitions hold for the Indian machinery manufacturers?

Participating in InterPack was very enduring as it gave a good experience and great exposure. Apart from that you get to encounter people from all over the continents, thus at one spot you are able to cater the worldwide market.

you expand and develop your market presence?

Well from the sales part we are known to be a Technocrat Company, technically very strong but feeble in commercially marketing ourselves. But through word of mouth we have been able to cater our customers and get exceptional business.

I would say International exhibitions that are on the level of InterPack gives prodigious exposer to the upcoming manufactures around the world.

Clients come to us with new requirements asking if we can develop certain machinery with a particular requirement and we do it with dedication and honesty.

This very aspect of Technofour has given it all the publicity it needs to stand out in the market.

I highly recommend that all Indian machinery manufacturers should participate in such fairs and exhibitions to enhance their marketing presence globally and to be competitive.

What are your expansion plans to meet the demand and what types of investment are you looking for?

As I said earlier, we are all set to double our manufacturing as soon as possible. As for the facility we have the infrastructure and space which can be used immediately for manufacturing, Other than that we have not thought ahead of that.

Technofour is not very exuberant where highlighting its achievement is concerned, in fact if analysed you stay away from the limelight. So how do

What type of R&D facility does your company have and what is the strength of your manpower/human resources does it have?

We have a total of 240 people working here, out of which 70 per cent are engineers. Even the directors and managers are highly educated and competent in research and development.

Technofour holds its expertise in their respective field with well qualified staff and dedicated team and we very proud that the systems manufactured by us are considered for better quality and performance - in the country and globe.

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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Agro & Food Processing June 2017

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Kerala state is self-sufficient in poultry meat sector

T

he rising business prospects and an increase in domestic consumption seems to have helped Kerala dependence on neighbouring state Tamil Nadu for chicken. Popularly known as God’s own country has now turned selfsufficient in poultry meat production, as many people ventured into broiler chicken rearing.

State President of the Poultry Farmers and Traders Committee, Binny Emmatty said almost 80 per cent of the poultry meat in Kerala has been met from farms within the state and domestic production growth has considerably reduced chicken arrivals from neighbouring states. He said the entry of integrators, low investments,

minimal area to set up ventures, and self-employment finance options from banks as the reasons for a surge in poultry farming. With a demand of 60 lakh kg of chicken in a week, Keralites are spending nearly Rs.4,000 crores on poultry meat. The business potential in this segment has attracted many and currently there are more than three lakh poultry farms, employing nearly 8 lakh people.

For a 1,000-bird farm, Emmatty said a poultry farmer had to spend around Rs.1 lakh and many of the owners opted to set up units behind their houses as a smallscale venture to avoid taxes.

INTERNATIONAL EXPO FOOD WORLD 15th – 17th July Chennai Trade Centre, Nandambakkam, Chennai, India Website: www.saleexpo.org PACKPLUS 3rd – 6th August 2017 Praga� Maidan, New Delhi, India Website: www.PackPlus.in INTERNATIONAL FOOD TECH st rd 21 – 23 August 2017 Praga� Maidan, New Delhi, India Website: www.foodtechindia.com FOOD PRO th th 7 – 9 September 2017 Chennai Website: www.ciifoodpro.in INDIAN ICE CREAM & EXPO 15th – 16th September 2017 Bombay Conven�on � Exhibi�on Centre Nesco, Goregaon (E), Mumbai, India Website: www.indianicecreamcongress.com ANNAPOORNA Mumbai 14th – 16th September 2017 Bombay Conven�on � Exhibi�on Centre Nesco, Goregaon (E), Mumbai, India Website: www.tradefairdates.com HKTDC-FOOD EXPO 17th- 21st September 2017 Hong Kong Conven�on � Exhibi�on Centre, Hong Kong

Website: hktdc.com/hkfoodexpoFOOD FOOD INGREDIENTS ASIA th th 13 – 15 September 2017 Bangkok Interna�onal Trade � Exhibi�on Centre, Bangkok, Thailand Website: www.fiasia.com ANUGA 7th– 11th October 2017 Cologne, Germany Website : www.anuga.com Drink Technology th st 26 - 28 October 2017 Praga� Maidan New Delhi Wwbsite: www.drinktechnology-india.com SWOP PACKAGING 7th – 10th November 2017 Shanghai New Interna�onal Expo Centre, China Website: www.mds.cn Bakery Bizz 1st- 3rd December 2017 Hong Kong Conven�on � Exhibi�on Centre, Hong Kong Website: hktdc.com/hkfoodexpoFOOD Indian Cold Chain th th 12 – 14 December 2017 Bombay Exhibi�on center indiacoldchainshow.com ANUGA FOOD TEC 20th – 23rd March 2018 Cologne, Germany Website : www.anugafoodtec.com

Agro & Food Processing June 2017

Director-Entrepreneurship, Kerala Veterinary & Animal University, TP Sethumadhavan said, given the growth in the poultry industry, farm integrators see an organised market in Kerala and this is one of the reasons for strengthening domestic production.

These integrators supply chicks, feed, veterinary aid and enter marketing tie-ups to rear birds. The focus of the integrators on a market-linked production programme and adequate supply of inputs has attracted many people to poultry farming.

Besides the rise in demand for ready-toeat and ready-to-cook chicken products, the recent cattle trade ban, religious taboos on certain meat products, elimination of 14.5 per cent VAT on chicken in the post-GST era should further encourage domestic production, he added.

Chicken consumption in India is growing at 11 per cent CAGR and as per a National Sample Survey Office report, per capita consumption in India is beyond 4 kg and unofficially, it was 10 kg. Yet, Sethumadhavan is quite concerned about dumping of live chicken from neighbouring states in Kerala in the postGST period as the cost of production there was 15-20 per cent lower.

This may impact domestic production and the authorities should take necessary steps to prevent such trade practices.

On the recent increase in chicken prices in the Kerala market, Emmatty clarified that the drought in Tamil Nadu affected the production in hatcheries, leading to low arrivals of chicks for domestic production and a surge in the selling price. Also, the increase in feed prices has also led to an rise in price to Rs.145 per kg from Rs. 92 in April.

NEWS

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ACE Frigoline with its wide range of Commercial Refrigeration service

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CE Technologies deals with world’s finest range of commercial refrigeration products. ACE carries rich experience in Commercial Refrigeration & food service venture in India. ACE adheres to the market demand, make use of the technological progress as the driving force, listen widely to opinions of all customers and research ambient temperature, voltage, energy saving etc..

Frozen & Dairy Industry: Highly preferred by some our prominent customers like: Aditya Birla (MORE), Future group (Easy Day), Spencer, Spar, Walmart, London Dairy, Hokey Pokey, Amul, Cream Bell, Mother Dairy, Vadilal , Gopalgee, Paras, Nova Dairy, Drums Foods, Baskin Robins & Many More) •

From different areas which are the key factors to design and produce chest freezers/Chillers, Water Bottle dispensers, Vertical Chillers/freezers, water coolers etc. under the brand name of ACE Frigoline.

Our products are designed well suited to operate in all seasons. All the products deliver better performance due to highly energy efficient compressors and better condensing capacity. In-house design set up for matching, balancing and installation of refrigeration equipment.

May we request you to allow us an opportunity to associate with you as a single window for all your refrigeration needs (Plug-In) AND remote units. High end products we represent ISA from Italy.

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• Dual Condenser • Machines Designed at 45 deg C as per the Indian ambient conditions Elegant looks due to Italian design Easy Maintenance due to Deck system in Vertical Freezers & Visi Coolers Energy efficient due Quick Freezing technology ( 1-4 Unit/24 Hours in all chest Freezer Models) Dual Temperature option in all chest freezers models ( +8 deg C - -24 deg C) Better holding time due to 70 mm thickness in chest Freezers ( 6-8 Hours) Pan India Sales & in-house Service Network Wide product range

Portugal shows keen interest to invest in Haryana

P

ortugal's Ambassador to India Joao da Camara called on Haryana Chief Minister Manohar Lal Khattar and informed that several Portuguese companies were keen on investing in the state. He told Khattar that a business delegation from Portugal will soon visit Haryana to explore the possibilities of mutual cooperation in various fields.

These exchanges between Portugal and Haryana would further strengthen the bilateral relationship between the two countries, an official release quoted.

and sought a list of companies that have shown interest for investment in Haryana.

Khattar welcomed Camara's offer and gave assurance of support and cooperation to Portuguese companies in setting up units in the state. He directed the officers of his government to remain in touch with the Portuguese authorities in Delhi

The chief minister said Haryana that surrounds Delhi from three sides, had a huge scope for investments in infrastructure, medical education, information and technology (IT), skill development, aero-space, and agro-

processing. Besides, Asia's biggest vegetable and fruit market was being developed on a 600-acre land at Ganaur in Sonepat district, he said, adding that the market would also cater to the requirements of Delhi. Khattar said his government was implementing the periurban concept of farming, especially in the National Capital Region, to cater to the requirements of fruits, flowers, vegetables, and milk of a 40 million population.

Over 1,200-acre Industrial Logistic Hub in the southern parts of the state and a dedicated industrial corridor on both sides of the 136-kilometre-long KundaliManesar-Palwal (KMP) Expressway were among the key projects being implemented by the Haryana government, the chief minister added.

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