AgriBusiness & Food Industry

April 2020

April 2020

inside... cover story

Averting Food Crisis

Food and Agriculture

Recommendations for Operation of Food Industry - Dr. Subodh Jindal, President, AIFPA

AgricultureRelated Issues That Need Attention Editorial

22 HORECA

Corona Effect on Restaurant Industry

24 event report Aahar 2020

Display of New Food & Beverage Trends and Much More

F&V INDUSTRY

“Spain is the leader and it should act as such”

28 Top Seeds International:

At Fruit Logistica with a New Brand for Generation Y

Italian Apples Reach Vietnam with the First Vog Consortium Shipment

31 TECHNOLOGY

32 FOOD PROCESSING

Food Additives: Safety and Quality Aspects

- Anil Gupta, Manisha Kaushal, Devina Vaidya and Anil K Verma

38 MEAT ALTERNATIVES

41 News Round-up l Bigbasket to hire 10,000 people for warehouses, delivery l Amul turnover grows 17% to Rs 38,550 crore in 2019-20 l Swiggy, Zomato to sell essentials from Marico l Domino's Pizza, ITC Foods partner to deliver essential items as Indians stay home l Firms asked to ramp-up food supplies, production l Dealing with lockdown: How ITC Agri is working around farm supply hurdles

Bühler invites to virtual Interpack tradeshow April 2020

BEYOND MEAT- The Solution for Vegans

- Kanmani.K, Dr.Geetha P.S and Dr. Umamaheswari.T

AgriBusiness & Food Industry

April 2020

Editorial...

he main thrust of most of the new policies for agriculture has been on achieving the target of doubling the farmers’ income by 2022. The average annual income of a farm household in the country in 2015-16 was Rs. 95,000, and this has been taken as the base year. Although critics are skeptical, with only two years left to show results, the committee set up by the government to handle this subject is optimistic. Says Ashok Dalwai, Chairman of the Committee on Doubling Farmers’ Income, “What I can tell you at this point is that we are on the right track in achieving the target.” He listed some of the important policy initiatives that have the potential to raise the famers’ income substantially. The main objective is to de-risk farming from the vagaries of the weather and the market. Dalwai, who was addressing a two-day BusinessLine Agri-Summit, said while Indian economy was liberalized in the 1990s, the agriculture sector has yet to see the benefits of liberalization. “Though there were a few measures earlier, they were not enough”. Since the launch of the Green Revolution in the1990s, up to recent years, the main emphasis has been on increasing production as well as productivity. While that is important, policy makers felt it is time now to bring under the focus raising of the farmers’ income as well, since the farming community nurses a grievance that they have not been getting a fair deal. The widespread farmer unrest that swept across the rural areas in recent times was a clear signal that the need of the hour is a paradigm shift in the formulation of farm policies. It is in this context that Prime Minister Narendra Modi formulated his vision of doubling the farmer’s income. Farm policy decisions and programmes announced subsequently by the Modi government aim at realizing this goal.

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April 2020

Despite many achievements of Indian agriculture since the Green Revolution started, one major weakness relates to marketing infrastructure which has not kept pace with the demands. In recent years we have seen farmer groups becoming more and more vocal and aggressive in making their demands. Against this backdrop, the launch of e-NAM, the pan India electronic National Agricultural Market, is an important step. The coverage of e-NAM, which has been growing fast, has reached 585 markets across 16 states and two Union Territories, while 431 additional markets are set to be covered. As against Rs. 8,806 crore worth of commodities traded on e-NAM, in the launch year (2016-Feb), the figure has reached Rs 30,470 crore by Feb 2020. The government is now working on linking e-NAM with Farmer Producer Societies (FPS) and warehouses. Once it is done, trading can happen from the warehouse itself, without taking the goods to the Mandis. One of the main weaknesses of Indian agriculture is that the overwhelming majority of cultivators are small farmers who are also poor. Taking technology to these famers to upgrade their skills to enable them to augment their income is a major challenge. One of the new schemes, to be launched by the Ministry of Food Processing, would focus on offering loans to small and cottage food processors in the unorganized sector so that they can upgade their technology, enhance their skills and improve the food safety standards and eventually get integrated with the organized sector. Besides government efforts, the private sector can play a big role in technology transfer to farmers. Success stories are many and one of the recent ones is the transformation brought about in the lives of women famers growing tomatoes in the tribal belt of Khumti district of Jharkhand. Thanks to the ‘Lakhpati Kisan” initiative of Tata Trusts, implemented by a nodal agency, these women were given training in better farming practices and provided marketing support. Result: the earnings of these women went up by at least 75 per cent. If all the stake holders that include the Centre, States, farmer organizations and corporate sector, work together, surely, much can be achieved. Comments are welcome at: editorialmtpl@gmail.com Views expressed by individuals and contributors in the magazine are their own and do not necessarily represent the views of “AgriBusiness & Food Industry” editorial board. AgriBusiness & Food Industry does not accept any responsibility of any direct, indirect or consequential damage caused to any party due to views expressed by any one or more persons in the trade. All disputes are to be referred to Delhi Jurisdiction only. .....Editor

AgriBusiness & Food Industry

April 2020

ndia’s packaged food industry has been hit hard by the country’s 21-day national lockdown, with the majority of factories closed and their supply chains disrupted, leading to suspension of distribution of essential food supply nationwide. Food manufacturers don’t have an involuntary right to stay open but have had to apply for specific exemptions from state, municipal and national regulators which are causing long delays. Food imports into India have also come under pressure, according to Amit

April 2020

Lohani, Founder-Director of the Forum of Indian Food Importers (FIFI). “Officially the ports are open but they are not functional,” he said. “Private container freight stations and testing labs are not working, clearing agents and custom officials are not coming as there is no means of transport to the ports.” Furthermore, trucks are also not operating, with many hauliers simply stopping driving after the announcement of the lockdown. This has damaged all products requiring refrigeration, Lohani said. In the meantime, most

of the food stores in Delhi have empty shelves, with only milk, bread and eggs are being delivered as usual. As a result of these problems, some food manufacturing companies such as Rasna Pvt. Ltd. in Ahmedabad,

AgriBusiness & Food Industry

Out there, own safety and that of the employees is a concern. If one person gets infected, what will happen to the whole plant? Piruz Khambatta Chairman Rasna Pvt. Ltd.

Gujarat prefer to wait until the end of lockdown on 14 April. Piruz Khambatta, Chairman of the Company and that of Confederation of Indian Industry’s National Committee on Food Processing, said, “Out there,

cover story own safety and that of the employees is a concern. If one person gets infected, what will happen to the whole plant?” India's Food Security With almost all economic activities coming to a slowdown, the Covid-19 pandemic have has a devastating impact on the livelihood and food security of millions of people across India. It is being expected that the food stocks of 58 million tonnes with the Food Corporation of India (FCI) will be an important factor in helping the government avoids a potential crisis. India generally implements a price-supportbacked public stockholding programme to safeguard the interests of both its consumers and farmers. Under this policy, the government procures food grains from farmers at Minimum Support Price (MSP), and thereafter distributes it at subsidized prices to the vulnerable sections of society through the Public Distribution System (PDS) and other welfare schemes. As a consequence, procurement at MSP, stockholding and distribution to eligible households form the three integral components of India’s food security framework. On the other hand, WTO rules hamper India’s knack to build its food stock as the procurement of food grains at MSP is subject to strict limits. Under these limits, the amount of support on account of procurement of food grains at MSP cannot exceed 10% of the value of production of the procured product. Holding on to reducing the policy space to implement the MSP, in consequence, became an important negotiating

The Centre and State governments have done a great job to allay the fear and quickly announced exemptions for the agriculture sector – seeds, labourers, and farm related activities.

objective at the WTO. After stretched negotiations, WTO members adopted a decision at the Bali Ministerial Conference in 2013 on public stockholding for food security purposes. In the nature of an interim solution, this decision allowed developing members to invoke the peace clause, which protects their public stockholding programmes for food security purposes from legal challenge, even if they lead to a breach of commitments. In its most recent domestic support notification dated March 31, 2020, India has taken recourse to the peace clause, as the product-specific support to rice was 11.46%

in 2018-19. This provides an assurance to the government that the MSP scheme for rice, ensuring food security for millions, can be continued without any legal challenge at the WTO. The peace clause, although a positive step towards ensuring food security, contains onerous transparency and safeguards conditions and is limited in its scope and coverage. It is being anticipated that the role of a price-support-backed food security policy cannot be underestimated in the fight against hunger, especially in the current pandemic where millions are facing livelihood and food insecurity issues. Nonetheless, Covid-19

is a severe prompt that the already battered WTO may further lose its relevance in the coming years, if it fails to conclude the negotiations for a permanent solution to the problem of food security in developing countries. Global Food Supply Chain The rapidly growing novel coronavirus pandemic is so far having little impact on the global food supply chain, but that could change for the worse, and soon, if anxiety-driven panic by major food importers takes hold, the World Food Programme (WFP) has said. In a new report, WFP said that global markets for basic cereals are well-supplied and prices are generally low. However, given the highly globalised nature of food production and supply, commodities need to move from the world's 'breadbaskets' to where they are consumed and the novel coronavirus-related containment measures are starting to make this more challenging. "Disruptions are so far minimal; food supply is adequate, and markets are relatively stable," WFP Senior spokesperson Elizabeth Byrs said, noting that global cereal stocks are at comfortable levels and the outlook for wheat and other staple crops is positive for the rest of the year. "But we may soon expect to see disruptions in food supply chains," she said, explaining that if big importers lose confidence in the reliable flow of basic food commodities, panic buying could ensue, driving prices up. Byrs said labour shortages could disrupt the production and processing of labour-intensive crops

AgriBusiness & Food Industry

April 2020

cover story in particularly, especially in vulnerable countries in sub-Saharan Africa. Other potential sources of disruption include blockages along transport routes, a particular concern for fresh produce, and quarantine measures that could impede farmers' access to markets. The WFP report further said it is essential to monitor food prices and markets, and to transparently disseminate information, thus helping to strengthen government policies while also averting public panic, and social unrest. It said that in places where food insecurity is caused by restricted access, rather than lack of availability, cash-based transfers -- which can often be made through contactless solutions -- should be considered as a standard response. Planning in-kind food assistance is essential," the report said, noting that supply chain disruptions are likely to affect higher-value items first. Such items involve more tiers of suppliers, human interaction and dependency on few suppliers – putting specialized nutritious food

April 2020

more at risk than staples, it said. Rice Exports India’s top rice shippers are convinced that the government won’t follow other nations in adopting restrictions on grains' exports as the country has more than enough supplies to meet domestic demand. Record harvest mean rice production will climb to 117.47 million metric tonnes in 2019-20, while wheat output may rise to an all-time high of 106.21 million tonnes, according to the farm ministry. Bumper crops will help the nation avoid curbs on overseas sales, according to some of the country’s key exporters. As the coronavirus continues to spread across the world, panic buying and concerns over supply chain disruptions have led several countries including Vietnam, Russia and Kazakhstan, to stop exporting some staple foods to shore up supplies at home. “India is not deficient in production and, in the immediate foreseeable future, there is no reason for concern

over food security,” said Vijay Setia, Director at Chaman Lal Setia Exports Ltd., a rice miller and exporter. “We may have sufficient surplus for exports. Continued shipments of rice from India may cool prices and stop consumers from panic buying.” Vietnam, the world’s third-largest shipper, has temporarily suspended new rice exports, while Myanmar also said it may cut overseas sales to avoid domestic shortages. Fears of shortages have helped prices of Thai white rice 5% broken surge more than 25% this year to $564 a tonne, the highest since 2013. Demand for Indian basmati rice, an aromatic grain used in dishes such as biryani and pilaf, has increased recently, mainly from the U.S. and Europe, according to Ashwani Arora, Chief Executive Officer of LT Foods Ltd. There may also be an increase in demand from Middle Eastern countries, he said. “That might increase

AgriBusiness & Food Industry

exports” in the fiscal year from April 1, Arora said. Global milled rice production will be little changed from a year earlier at 499.31 million tonnes in 2019-20, according to data from the U.S. Department of Agriculture. Ending stockpiles are seen at a record 182.3 million tonnes, up about 4% from a year earlier, the data show. While global grain stocks are relatively comfortable and the weather outlook this year is fairly positive, countries may adopt export restrictions or boost stockpiling if the crop outlook deteriorates in the light of pandemic accelerating faster than expected. Though there are no concerns right now, “if the fear of the unknown prevails and markets get dented with hoarding etc., then of course respective governments have to resort to means at their disposal to handle the situation,” said Setia, FormerPresident of the All India

cover story Rice Exporters’ Association. “Imposing restrictions on external trade could be one such measure,” he said. Shipments of rice have slowed a bit because of logistics issues, including a shortage of workers and truck drivers, caused by the nationwide lockdown, said Vinod Kaul, the Executive Director of the association. Exporters are hesitating to sign new contracts with overseas buyers because of the slowdown in current shipments, he said. “The lockdown will have some impact and we can’t avoid it,” Kaul said. “There is no move by the government to ban exports.” Food Supply Shortage Although municipal authorities are mobilising tonnes of food supplies to feed 85,000 migrant workers stranded in the city, a shortfall in supplies means thousands of people are going hungry. A survey by the Department of Labour has determined that these migrants are staying at 439 locations across the city (many of them at construction sites). Currently, the Department of Labour said it is doling out nearly one lakh meals per day (in two servings - lunch and dinner, but no breakfast). For civil NGOs who have been dispensing food to migrants and other needy people, the slowness of the bureaucratic machinery has elicited fury. Dr Sylvia Karpagam, who, with a network of social activists has been trying to supply rice, vegetables and dal powder to migrants, said that the crisis of hunger shows that the government has not taken any responsibility for the hardships caused by the

lockdown. “Over the last five days, we have identified 3,000 people who require food supplies. Not all are construction workers. For example there are jewellery workers from Bengal in Cottonpet, cleaners in Kundalahalli, tailors from Bihar in Badidi. The list goes on,” said an Indian Institute of Science faculty member, Subankar Chakraborty, who is also the General Secretary of the NGO, Bharat Gyan Vigyan Samithi. Agriculture As we are in the midst of the coronavirus crisis, it is imperative that good seeds and other farm inputs reach farmers in time for the kharif season. India needs about 250 lakh quintals of seeds for the kharif season. The preparation of seeds happens between March and May. It begins from the farmers’ fields, where pollination etc is monitored by teams, and after harvest, drying and selection, the seeds are sent to processing plants. From there they are sent to labs for testing and, finally, are packaged for supply to the farmers. This is a timeconsuming process. The complete seed production ecosystem is complex and requires the help of allied sectors such as transport, testing labs and the packaging industry. Meanwhile, in a recent statement, the International Seed Federation (ISF) quoted the European Food Safety Authority (EFSA), Centre for Disease Control

F&V industry faces the impact

Amit Gidwani

he outbreak of Coronavirus and a freeze in the freight and logistics industry that followed the pandemic has lead to a collective loss of almost $1 billion or around Rs. 7,000 crore for the fruit growing farmers across the country. For many fruit growing farmers, the time between March and May is particularly joyous as fruits get transported, sold to wholesale markets and finally reach the customers, but this year, things aren’t so rosy. Amit Gidwani, Director G.T. Fruitech Private Limited and President - Fresh Fruit Importers Association of Delhi said, “We are facing a lot of difficulties in supply chain consequently seeing a drop in the demand-consumption rate. The bulk consumers such as Tourism & Hospitality industry, 5-star hotels, big retailers and wholesalers are not demanding fruit & vegetables due to the lockdown in the industry. Transportation of the produce is also a major problem. Because of the uncertainty condition, demand-consumption in supply chain and transportation has hampered the industry a lot. The business has come down to 25% of its existence. The Association is also working very hard to increase the consumption and supply of fruits at a reasonable price.” In a recorded message, Vilas Shinde, Chairman and Managing Director, Sahyadri Farmers’ Producer Company also highlighted the affliction faced by the farmers due to the logistics hitch. “Almost 30% of the grapes are still in the

Vilas Shinde fields. This would amount to about 25,000 - 30,000 tonnes of export-quality grapes. We are closely watching developments and hope that the coronavirus spread will not affect grape exports.” The current situation is expected to impact the small acreage farmers severely more as such farmers take loans for farming. Grapes are in the market from mid-March till midApril and they sell at around Rs 100, but now, their prices have come down significantly at Rs 50.” A low shelf-life for grapes also adds to the predicament. Moreover, grapes are also used for making raisins but production has halted due to lockdown. Jalgaon district cultivates the highest number of bananas in the country, with around 45,000 hectares of cultivated land with the fruit. Earlier, for a trip from Jalgaon to Jaipur, transporters charged around Rs 45,000 that has now risen to as much as Rs 85,000. This has trickled down to consumers in urban cities. Fruits are being bought at higher prices and several farmers across the region are struggling to sell their produce. The selling cost of pomegranate has also increased due to a rise in storage and crate costs. Earlier, the cost of a crate was Rs 55 which is now selling at Rs 90. The Northernmost state of the country cultivates around 2 million tonnes of apples annually and the state has an unsold inventory of around 1 lakh tonnes which will result in losses for apple growers and storage owners.

AgriBusiness & Food Industry

April 2020

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We have already started the process of donating our brands to local governments to support the needy," it added. Moreover, its employees are helping the Indian Red Cross Society provide relief in the impacted areas through their voluntary contribution program. and Prevention (CDC), and the Bundesinstitut für Risikobewertung (BfR), as saying that “there is currently no evidence that food, including seed, is a likely source or route of transmission of the virus. Transmission via surfaces which have recently been contaminated with the virus is, nonetheless, possible through smear infections. However, this is only likely to occur during a short period after contamination, due to the relatively low stability of the coronavirus in the environment.” To paraphrase, we have no evidence yet to say seeds are a gateway. The Centre and State governments have done a great job to allay the fear and quickly announced exemptions for the agriculture sector – seeds, labourers, and farm related activities. States such as Telangana and UP

April 2020

of seeds sold by the retailers may also shoot up. Actively transporting farm inputs including seeds, etc from seed hubs to all states and grain and fresh produce from the hinterland to the cities will help tackle food security concerns. Suresh Narayanan Chairman and Managing Director - Nestle India

among others have been very proactive. Special packages have also been announced for different sectors, in which railways have also been roped in to ease transport logistics. But despite exemption orders, seed hubs and production facilities are under pressure to shut and labourers and village level henchmen are using this opportunity to make unreasonable demands. Apart for higher wages, there is news of a higher percentage of inventory losses and rejections which is over and above rising transport costs. Within the seed sector, overall cost of production has spiked due to some of these factors and the small and medium companies are facing the brunt. The distributor-retailer network has also dried up, and hence companies are reporting low pre-booking numbers. As a result, prices

Nestlé India extends its Commitment FMCG major Nestle India announced an initial grant of Rs 15 crore for providing food and essential groceries to the needy amid the coronavirus lockdown. It will also support purchase of medical equipment for hospitals to fight against the Covid-19 outbreak. The company has already started with a contribution of Rs 1 crore to Narayana Hrudayalaya Foundation for purchase of ventilators for Delhi/NCR. "We commit to initially, a sum of Rs 15 crores towards feeding programs for less privileged sections of society through participation with leading and credible NGOs engaged in this along with distribution of essential groceries to the needy," Nestle India said. The company would participate with NGOs working on distribution of food and essential groceries. "We have already started the process of donating our brands to local governments to support the needy," it added. Moreover, its employees are helping the Indian Red Cross Society provide relief in the impacted areas through their voluntary contribution program. Nestle India Chairman and Managing Director Suresh Narayanan said, "We commit ourselves to continue to give every possible support to the communities and to the authorities who are fighting

AgriBusiness & Food Industry

tirelessly and valiantly each day against the spread of this virus. This dedication to a national cause goes from our supply chain, to our factories, our people, and our distribution partners, who work round the clock to ensure that we continue to meet the nutritional needs of families." "We heed to a call of duty to ensure that much-needed food and beverage products are available to our consumers and communities throughout the country," he added. Nestle India is also providing a threemonth Covid-19 insurance protection to its distribution partners who are delivering goods in the lockdown. Swiggy, Zomato Launch Initiatives Swiggy has introduced a new initiative to help provide food to underprivileged, daily wagers and stranded migrant labourers during the 21-day lockdown. Swiggy said it is providing over 75,000 meals daily as its initiative has extended to Bangalore, Hyderabad, Gurgaon, Chennai and Kolkata. The company aims to provide 5, 00,000 meals daily. “Swiggy helped organize the preparation and distribution of nutritious meals twice a day across relief camps in Delhi with the support of partners such as Compass Kitchens, Lite Bite Foods and SmartQ. The relief effort was quickly scaled to Mumbai with the help of NGOs Pratham, HelpAge India and Yuva, and Elior India acting as the food supply partner,” said the company. Zomato is also offering 2-year membership (instead of 1 year) at no additional cost who purchase the annual Gold membership in the

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Amit Lohani, Founder Director of FORUM OF INDIAN FOOD IMPORTERS

n a telephonic conversation, Amit Lohani explaining the situation says, “We as Forum of India Food Importers (FIFI) applaud Government's efforts in positive direction to contain the transmission of COVID-19 and also the helpful directives, which are focused towards ensuring the smooth flow of essential goods and services. As an industry body we greatly appreciate these timely interventions however, it is taking time in getting the real time execution of the suggested outreach.”

month of April. Zomato is also offering the subscription for Rs 1,200. “Restaurants workers function day in and out in order to render a great food experience are one of the most significant factors behind the restaurant industry’s success. It is disheartening to see the industry which has grown to drive tremendous employment opportunities in recent years, struggle to sustain,” said Gaurav Gupta, Co-founder and COO, Zomato. “Zomato has always worked towards connecting passionate restaurateurs with millions of potential customers. Today, we must use our scale to stand by our partners in need in these testing times. We are starting this initiative in India and UAE and hope to support as many restaurants as we can,”

FIFI members and stakeholders are committed to stand by the nation in this hour and that FIFI is continuing to be in touch with the PMO, DPIIT, FSSAI, DAHD, State governments, and several other Government bodies, giving them live update about the on-ground situation and the magnitude of impact it is causing on the F&B trade. Industry is reportedly facing problems like lack of interstate movement of goods, slow clearance of goods at the port of entry, lack of manpower, interrupted supply of raw materials, and pending approvals on extension of routine license/permit renewal dates. We are optimistic that concerned Government departments are looking into the trade representations submitted by us and will soon evolve positive strategies to strengthen the gap areas. Additionally, we would also like to humbly submit to both central and

he added. Functioning Food Markets The central government decided on free distribution of 5 kg rice or wheat per person and 1 kg pulses/ household under PM Garib Kalyan Ann Yojana for the next three months to 80 crore National Food Security Act (NFSA) beneficiaries. Under NFSA, households usually get 5 kg food grains per person at subsidised rates (wheat at Rs 2/kg, rice at Rs 3/kg and coarse cereals at Rs 1/ kg). To palliate the hardship, beneficiaries will also get supplementary free ration beyond their monthly quota, which has been increased to 7 Kg/month for the next three months. Kerala, Punjab and Delhi are coming up with modified

state governments to consider lowering tariffs and GST on healthful categories like tree nuts, dry fruits, healthy snacks, protein rich items, and fresh fruits to exemplify Government’s willingness to support access to affordable healthy food items to a larger section of society especially during these testing times. Impact on Bulk consumers like Hospitality, Wholesale and retail formats The supply of bulk consumer goods too is facing challenges due to disrupted supply chain and also due to lack of manpower. Hospitality industry with zero to minimal operations are hard hit amidst lock-down and despite having permissions to function as essential services, the retail sector too is facing the huge brunt of the current unavoidable situation. The nationwide lock-down due to COVID19 and uncertainty relating to the same is directly resulting in discretionary spending and might result in long term impact. Also, that production and other critical components of supply chain are on halt or limited to essential services causing, unstable supply chain.

packages. Delhi announced a 50% increase in PDS rations for 7 million people. In Odisha, three months of PDS ration would be provided to nearly 5 million beneficiaries. The PDS rations will be delivered to the doorstep for the elderly. Critical as these measures are as a safety net, at the end of the day, they cannot supersede the market. Only when the markets are running, the safety nets would be useful. PDS has low uptake in urban areas catering to only 50% of the population. These households would have to rely on markets. Further, the food demand comprises more than rice and wheat and contains a variety of essential food products such as edible oil where markets need to deliver. Wheat provided to the PDS beneficiaries is of little

use since the local flour miller (chakki) shops are not operating. Similarly, importoriented essential commodities such as edible oils will likely face supply constraints leading to price spikes. The design of the social safety net should also be a function of the pandemic itself. So, the government should make efforts to keep the markets functional. Moreover, extra grains pumped into the system are likely to depress prices and in the long run affect small farmers and small businesses too. It is, thereby, imperative that after the emergency response, all these measures need to be carefully assessed. Also, in a rush to provide for the emergency, maintaining quality is needed. Hence, the effect could be counterproductive.

AgriBusiness & Food Industry

April 2020

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Food and Agriculture

Sector Overview

Food Processing Industry in India, InvestIndia website, accessed on 26 March 2020 Quarterly factsheet on Foreign Direct Investment (FDI), April 2000-December 2019, Department for Promotion of Industry and Internal Trade 3 Euromonitor International, accessed on 26 March 2020 1 2

Current and potential impact on the sector

April 2020

AgriBusiness & Food Industry

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Current and potential impact on the sector • Primary agriculture: Since it is the backbone of the country and part of government announced essential category, the impact is likely to be low on both primary agricultural production and usage of agri-inputs like seeds, pesticides and fertilizers. Migratory labour movement for harvesting wheat, paddy, pulses etc. should be allowed for the ongoing Rabi season. Insulating the rural food production areas in the coming weeks will hold a great answer to the macro impact of COVID-19 on Indian food sector as well as larger economy. Post Ministry of Agriculture’s press release, crop

procurement and mandi operations are yet to be streamlined and this may result in low sowing in the upcoming crop season and also impact sale of agri inputs in the Kharif season. • Agricultural inputs: Overall sector impact should be very low. - Seeds: States have cleared this as an essential category and impact is likely to be low. - Agro-chemicals: Companies that depend on exports for finished goods sale and imports of raw ingredients will be impacted. - Fertilizers: Owing to existing inventories impact may be less except for logistics and port clearances in India.

• Food retail: Several state governments have already allowed free movement of fruits, vegetables, milk etc. Due to fake propaganda, poultry sector (eggs and chicken) is heavily impacted. Fresh meat, seafood has erratic supply chain as there is no clarity from state governments on retail shops. Brick and mortar grocery retail chains and shops are operating normally but shortage of staff is impacting operations. It is expected that prolonged lockdown will result in increased demand for food supplies. Online food grocery platforms are heavily impacted due to unclear police restrictions and stoppage of vehicles4. Last mile

delivery platforms are impacted too5. States are working out policies for food movement which are likely to ease the situation. • Food processing: All food based industries are allowed to function normally. There are few issues on interstate movement of skilled and semi skilled labour that needs to be sorted out. Raw material supplies are not impacted as of now and the measures taken by central government should ease supply chain issues. Factories should adjust to working with less labour force and overtime to meet demand. Domestic market based players should not have a problem. • Food exports: Major destinations like the

AgriBusiness & Food Industry

April 2020

cover story U.S. Europe, China will grapple with COVID-19 for the next 6 months and Indian export based companies will be impacted due to low

consumer demand and port hurdles. Partial diversion of export inventories to domestic market will help the players in the interim.

Key policy recommendations

April 2020

AgriBusiness & Food Industry

Farm gate prices for export oriented commodities like seafood, mango, and grapes are crashing and this will impact future crop availability.

Based on industry interactions with leading food and agri companies 5 BigBasket, Grofers and other delivery services disrupted amid lockdown, TheNewsMinute, 25 March 2020 4

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Recommendations for Operation of Food Industry - Dr. Subodh Jindal, President, AIFPA

e appreciate the steps taken by the Government to ensure operation of food processing industry and continuity of food supplies. Timely guidelines have helped to streamline the activities. We are grateful to have interacted with food industry clusters all over the country, regional chambers, product specific associations, raw material & packaging material providers, growers and would like to share with the inputs received on behalf of lakhs of small & medium food processing units in the country as below for early appropriate action. A. URGENT NEED TO SAVE PERISHABLES a. We are fast approaching harvesting seasons of perishables, e.g. Mango (Raw & Ripe), Tomato, Pineapple, Litchi, and Cherry. It is important to save these crops in the interest of growers & consumers and for maintaining employment & exports. All possible measures should be taken to save these perishable crops. Almost 35,000,000 MT of mango is processed for ripe and raw applications. b. Producing finished food products during the crop season cannot take care

of the glut crop. The best method is to undertake 'Primary Processing' all over the country. These steps include Salting, Brining, Syruping, Drying, Dehydrating, Pulping, Freezing, Ambient Controlled/Cold Storing. These processes need to be intensified and encouraged without loss of time. c. Units engaged in Salting, Brining, Syruping, Drying, Dehydrating, Pulping, Freezing, Ambient Controlled/Cold Storing perishables crops should be considered as 'Continuous Process Industries' and exempted from GST (or levied 0% GST). This will save the perishables which can be used to run the industry later. d. Entrepreneurs engaged in the above mentioned

processes will have to purchase the perishable crops, do Primary Processing on the same to be utilized subsequently by the industry over long periods of 3 to 12 months. These units will need financial support which should be provided to them in the form of working/stock loan at subsidized or nil interest rates and without any collateral security. e. To encourage entrepreneurs and workers to undertake the above Primary Processing activities in the current circumstances, they should be provided with adequate 'medical & risk insurance'. f. Units and storage facilities involved in the above activities of saving perishables should be given 'continuous electricity supply'

exempted from 'Fixed Electricity Charges'. g. If any of these entrepreneurs/units are new, FSSAI should help by registering them quickly in order to enable them to catch the crops. B. RELATING TO PRODUCTION & LOGISTICS (Permission for Manufacturing, Workforce Movement, Raw Material/ Packaging Materials/Finished Products/Fuel Transportation) a. It is learnt that enforcement agencies (DMs, SDMs, and Police) at different regions/locations are implementing Central Government Guidelines differently. Such variance leads to hurdles & critical blockages in the operation of food industry. b. It is proposed that District Industries Centre (DIC) may be authorized to issue permits to the Industry, their Workers, Suppliers and Distributors (as has been done in Odisha). c. District Magistrates and Police in every District may be instructed to honour permits issued by authorized persons from other States/Districts (as has been notified in Haryana). d. A 'Grievance Resolution

AgriBusiness & Food Industry

April 2020

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Cell' should be created in the office of District Magistrate in each District for proper interpretation of guidelines and resolving difficulties faced by the industry owing to enforcement variability issues. MoFPI may issue a list of Foods Products, Raw Materials, Packaging Items to be permitted for production and transportation. Central Government may issue a list of support services like 'Industrial Fuels' and 'Utilities' to be permitted. Every State should set up a 'Nodal Agency' to coordinate uniform dissemination and implementation of Central Government guidelines. Transport being privately held it is likely that industry will be exploited for transportation charges or its availability. It is suggested that central Govt. may appeal to Transport Associations to help the nation in this critical period else the Govt. may issue strict instructions as under ESMA to discipline the transport system.

C. FINANCIAL MATTERS, TAXES & COMPLIANCE (Working Capital Requirement, Loans, Credit Limits, Interest Payments, EMIs, Banking Transfers, Interest Rates, Penalties, Direct & Indirect Taxes, Duties, Taxes on Utilities, Timelines, Returns, Assessments, Appeals, ROC & Trade Compliance etc.) a. RBI has permitted banks to defer installments and interest on working capital/term loans as well as reduce interest rate.

April 2020

and suppliers may be permitted to import Raw material or Intermediates for their manufacture. d. There should be no restriction to import of seeds, subject only to phytosanitary measures. Custom Duty, where applicable, may be suitably reduced.

These measures are very important and should be made mandatory for Food Processing Industry. Interest on outstanding working capital and term loans for MSME Food Units should be waived off / interest subvention to be given upto 30th June 2020 and thereafter reduced to PLR. MSME food processing units should be granted an ad hoc working capital limit of 10% of the average turnover of last three years without any additional collateral in addition to existing limit, if any, to meet its immediate requirements. As the industry is passing through a critical phase declaration of NPA and payment of EMIs has been deferred till 30th Sept. 2020. It is better to extend this period to at least 6 months as revival will be a slow process. Refund excess input credit under GST to provide liquidity and help food industry cover up a part of the loss. Timelines for payment of all statutory returns, such as GST and TDS may

be extended for at least 3 months, especially for MSME units. This will allow firms to deal with liquidity crisis to some extent. g. Many businesses are approaching expiry of various Licenses / Approvals / NOCs / Clearances / Renewals / Returns etc. An automatic extension period of up to 30th Sept. 2020 may be provided so that they can run under their current provisions. h. It is requested to waive off 'Fixed Electricity Charges' for MSME at least up to 30th June, 2020. D. AGRICULTURE & FARM ISSUES a. All efforts to be made to keep up farm production so that we do not suffer from a famine like situation. b. Supply of all essential agri inputs like Fertilizers, Insecticides, Chemicals, Seeds may be ensured and manufacturers, transporters, storage facility, distribution persons may be permitted to work. c. Agri input manufacturers

AgriBusiness & Food Industry

E. LABOUR, WAGES & GOVT. DISBURSAL (Wage Payments, ESI, PF, Leaves, Labour Returns, PF Refunds/Loans) a. Government's announcement on PF is unclear, particularly payment of dues by Govt. and payment of Wages/ ESI/PF to non-working employees. b. Extension of compliance dates, submission of returns etc. need further working and relaxation. c. These measures should be applicable to all units, particularly MSME Units and wef 20th March 2020 till 30th Sept. 2020. d. The period of extension of ESI and PF payments may be continued till 30th Sept. 2020 to relieve the sector from burden. e. Grant unemployment allowance to employees insured under ESI Scheme Atal Bimit Vyaakti Kalyan Yojana. f. Government's announcement on PF is only for establishments with more than 100 employees and a meagre sum of Rs.15,000/-. It is requested that this cap of 100 employees may be removed and Rs.15,000/cap should be increased to Rs.20,000/. g. All employees of food processing units and their family who are covered

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under PF should be granted insurance cover of at least Rs.25 lakh. h. Currently there is an 'Overtime Cap' of 10 and 1/2 hours per day. Considering the shortage of work force and guidelines to work with 50% workers, it is recommended that the 'Overtime Cap' of 10 and 1/2 hours per day should be increased to at least 12 hours per day to manage operations and make up for workers deficiency for at least upto 30th June 2020. F. EXPORTS, DEMURRAGE & REFUNDS (Cargo Movement, Testing, Certification, Customs, Port Procedures, Shipments, Timelines, MEIS, Refunds) a. Customs has been announced to be kept open 24x7 for rapid clearances but it is not being followed in practice as yet. b. To ensure that Container movement to and from ports is not obstructed. c. Demurrage Free Period to be provided till Containers are emptied at the ports and returned. d. Export manufacturers may be permitted to import raw materials or Intermediates for their manufacture. e. MEIS scheme should be

made uniform @ 10% for all food exports to cover a part of exporters loss as a critical measure. f. Disburse all pending export refunds urgently to boost liquidity. MOFPI is requested to make a working group to proactively discuss & act on all issues related to the sector on a daily basis and keep a track of them during the lockdown period. It may have one senior representative from each Association and Secretary / Additional Secretary of MOFPI should lead the same. This will make working more action-oriented and all steps taken by Central and State Government on behest of MOFPI can be immediately tracked and conveyed to Industry Members. Considering the above important concerns in the interest of maintaining a panic free environment, saving perishable farm produce and taking care of work force we request to kindly examine the above grass roots recommendations. We assure that food industry is committed to serve the needs of consumers by adopting necessary precautions to fight Covid-19 and sustain national economy. AgriBusiness & Food Industry

April 2020

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Agriculture-Related Issues That Need Attention 1. Recommendations regarding effective procurement and storage of Rabi harvest: • Allow mandis to operate smoothly: For ensuring that the supply chain of food, including processed food, is not disrupted, it is important that mandis are allowed to run after ensuring appropriate protection and hygiene measures. Food processing units should be allowed to function without any artificial distinction between essential and non-essential. • More procurement centers should be opened: The number of procurement centers need to be increased in the states where arrivals are expected to start in a few days. Farmers should not have to transport more than 3 km to offer their produce for MSP operations. The number of trucks for lifting the procured stocks from procurement centres needs to go up substantially. Otherwise, there will be shortage of space at procurement centres. Sufficient storage space needs to be created at warehouses of Food Corporation of India (FCI) and State agencies also. If covered warehouses are not available, proper arrangements for CAP storage of wheat should be made. • APMC regulations should be relaxed which prohibit sale and purchase outside mandi jurisdiction:

April 2020

Farmers of perishable produce (vegetables, fruits, milk, fish, meat etc.) should be allowed to sell their produce outside the regulated markets. • Government must ensure that the police help farmers who are bringing their produce to mandis or the places where it can be sold. This includes retail shops as well as street vendors who are selling the same in the urban areas. Smooth transportation of all food items into urban areas must be allowed. • Storage charges incurred by small and marginal farmers for six months stocks kept by them in WDRA registered warehouses or cold storages for which eNWRs have been issued, should be taken care of by the Government. • Guidelines issued by the MHA on the announcement of the 21 day-lockdown, did not specifically include “Fumigation and Pest Management as “Essential services”. “Pest Control Services & Fumigation Services at

warehouses” are equally required for blocking the spread of the Corona Pandemic & keeping Agri commodities infestation free during storage. Therefore, this should be enlisted as essential services. As of now, only Maharashtra had exempted “Fumigation & Pest Management” services in their orders. As per scientists of the Indian Council of Agricultural Research, around 35% of India’s agricultural crop is lost due to pest infestation, a significant part of which is during storage. 2. Ensuring supply of seeds and other Agri-inputs in view of the upcoming Kharif season (2.1) Seed related concerns: • Every state has issued advisory and exempted Agri- input industry, (particularly seeds). However, agricultural officials in districts do not have clarity regarding issuance of permits for opening the premises and permits for employee movements. The current challenge lies in the implementation of the

AgriBusiness & Food Industry

State guidelines at the tolls and inter-state borders. Therefore, the State Government should notify nodal agency or persons who shall have the authority to issue the permits to the exempted industries. • Seed licenses: Seed companies whose seed license has just expired or about to expire are unable to renew their licenses due to lockdown. In such cases, we request that all seed licenses (which are to expire in March 2020 or later) be automatically extended. This will facilitate the unhindered supply of seeds for this Kharif season. (2.2) Concerns related to Irrigation equipments: In the context of the forthcoming Kharif crop, farmers will require the deployment and maintenance of irrigation systems. States like Uttar Pradesh, Bihar and Andhra Pradesh have clearly stated that irrigation equipment would be covered in the list of essential items. However, there is no guideline from centre on including irrigation equipment in essential list. Due to this, companies are not able to start operations and provide equipment in these states. The equipment stocked in warehouses will not be adequate to meet the demand. Therefore, guidelines from the Centre are important. (2.3) Concerns related to Farm machinery: Addendum issued on 3

cover story April by Centre Government, does mention about relaxation in farm machinery. However, tractors (which does not fall in the definition of farm machinery) are not mentioned specifically, which is causing problem at the state level. Companies are getting continuous requirement from farmers to purchase tractors since it is a sowing/ harvesting/land preparation time for Kharif season, but they are unable to meet demand due to ambiguity in circular and hindrance by local authorities. (2.4) Reschedule crop loans and investment loans taken by farmers: Loans taken on Kisan Credit Card as well as investment loans taken by small farmers may be rescheduled and no interest should be charged for six months. (3) Cold stores: Impact on cold chain units: The cold chain industry runs on the backbone of fuel and power. The cold chain units are under severe distress and fear of disconnection of electricity supply, due to delay in payment or inability to pay electric bills. If the electricity supply of the cold storage unit is disconnected, that would lead to a national loss of a few thousand tonnes of food material. Moreover, if food items get rotten, there would be a widespread issue of hygiene and smell. Impact on potato cold stores: Potato harvest is due in this season and cold stores are busy buying potato for storage. Shortage of labour and restriction on truck movement will result in low capacity utilization, default on bank loans and wastage of potato on the field with losses to farmers. This may lead to an increase in the price of potatoes also in the coming three to four months.

Suggestions in this regard: • The electricity rate of cold storage units to be matched with the agricultural tariff of the state. The rate of electricity on national power exchange is Rs. 1.90 while the cold storage units are being charged ranging from Rs. 6.50 to Rs. 8.50. It is requested that during this time of distress, electricity unit rates for cold stores be decreased. It is pertinent to mention, that Maharashtra and Haryana are already charging Agriculture Tariff from the Cold Storage Units. • Potato harvesting and associated logistics should be specifically exempted from the lockdown restrictions. Cold stores should be allowed to engage labour and trucks to move produce from the field to stores. • Cold stores should be given power subsidy for 6 months by GOI to compensate for lower capacity utilization. (4) Relief measure for Poultry sector: Today, the Indian poultry sector employees more than 10 lakh poultry farmers and provide Rs. 1.2 lakh Crore to the Indian GDP directly. Poultry is also giving direct benefit to more than one crore Maize and Soya agriculture farmers and provides direct and indirect employment to more than Rs. 5 crore citizens of the country engaged in poultry production, trade, feed, agriculture crops, logistics, poultry-based products, exports, etc.

The recent outbreak of Covid- 19 has diminished the demand for poultry products, which is immensely impacting the poultry industry. Despite the fact, that there is no scientific evidence to show that coronavirus spreads through eating chicken, mutton and seafood the situation is not improving. • Impact on Maize and soybean farmers: In absence of demand for poultry products, maize and soybean farmers are also suffering. As a result, the prices of Maize have dropped from Rs.25/- to Rs.15/- per Kg. • Impact on Poultry industry: Prices of eggs have now decreased to Rs.2/- per egg at the farm gate. Every poultry farmer is suffering an average loss of Rs.130/- per bird. Due to such a scenario, poultry farmers have even started destroying and culling their produce, which needs immediate attention. As per industry estimates, the current 2.5 months loss of Poultry Industry (Broiler Farmers & Layer Farmers, Integration Companies and Breeding Companies) beginning from 1st Feb to 15th April’ 2020 until Lockdown opens is of INR 22500 CR. Suggestions During similar situation in 2006 when there was a massive bird flu attack on poultry sector, Government of India has provided relief measure to the poultry sector by announcing Interest Subventions and increasing Credit duration to the Poultry

Industry for a limited time period. Relief package for the Poultry sector should be provided in Covid- 19 crisis too, as this situation is even worse. Government may also consider giving direct assistance to poultry farmers through direct benefit transfer so that they are compensated to some extent for the losses incurred by them. Eggs should be purchased for conversion into powder for consumption by army, para military forces, police as well as health workers engaged in Covid related duty. Eggs should be included in mid-day meals and also to pregnant and nursing mothers attached to Anganwadi centres. (5) Shrimp Industry India is the 2nd largest Shrimp producer in the world and is the largest employer of women in the segment. The farmers are holding a stock of about USD 1 Bn - 1.5 Bn primarily for exports (Total Shrimp exports are Rs 30000 crore - approximately). Major shrimp producing states are (AP, TN, Kerala, Gujarat). Shrimp is an extremely perishable commodity and if not procured within time, deteriorates very rapidly. Interventions required • The stock has to be harvested daily and sold in the domestic market for the next 30 - 45 - 60 days as exports have stopped. Therefore, such farmers should be linked to buyers through an e-commerce model. Online perishables retailers should be incentivised to extend their helping hand. • Facilitation by Govt for movement of shrimp produces to domestic market by allowing Reefers. Reefer trucks should be allowed to move the product for distribution to retail market or by online for home delivery.

AgriBusiness & Food Industry

April 2020

HORECA

Corona Effect on Restaurant Industry With the ongoing lockdown, bars and restaurants are closed to sit-down diners and restricted to takeout orders and delivery. Many restaurants had already closed on their own accord even before these measures were taken. Here are how things have unfolded - Rupali Dean

estaurants across the country are scrambling to respond as the coronavirus spreads. Executive Director & CEO, Degustibus Hospitality & NRAI President Anurag Katriar’s biggest worry right now is more human than commercial. “With limited cash flows, how do we keep the kitchen fires in the homes of our employees and marginal suppliers burning is a question that does not have an immediate answer. We have sought deferment and concessions from all tax authorities, statutory bodies and financial institutions so that our limited cash flows are deployed towards more humane cause. We have met with some success on this. We are seeking similar relief from our landlords. However, if the COVID-19 spread is not controlled soon and lockdown continues for a while, we may not be left with enough resources to combat the problem despite our genuine and honest intent. The government may have to help with some unemployment pay cover for these folks through bodies like ESIC or any other social security scheme like MNREGA and/or free distribution of essentials”. For most restaurateurs, the current situation is more about ensuring safety and security of the staff and guests. “We shut down our

April 2020

operations well before the Prime Minister mandated us to do so, because we are social gathering spaces," says Ashish Dev Kapur, owner Whisky Samba, The Kimono Club, The Wine Company & Antares Goa. "This has meant a large financial business loss, but safety and security are far more important to us. Right now it’s not about business but making sure that the security of the staff and their wellbeing is in place.

Concerning it, they have enough money to survive for the next couple of weeks and that our infrastructure is of use to the nation at large, perhaps by feeding people". Several restaurants are focusing on restructuring operations, planning menu items that can be easily transported, all keeping in mind profits that are melting faster than ice cream. “As a company we are trying to reduce our fixed cost on all

Amit Bagga, CEO and Co-founder of Daryaganj hospitality

AgriBusiness & Food Industry

other parameters like rent, etc. in order to hold on to our manpower, so that as and when the business gets going we are able to offer the same quality our patrons were used to before”, says Nikesh Lamba, Executive Director, Pricol Gourmet Pvt Ltd. However, even if business picks up, the damage could be long-lasting. “The present situation is all about surviving this pandemic with the least amount of casualties. As restaurateurs, we are looking at how to give wages to our staff so as they can meet their daily expenses. Once businesses re-open, the second stage of revival will pose many challenges, unseen and unimagined, for instance, decreased manpower, lack of money, a fall in demand, government and supplier dues, and higher fixed costs of rentals. Many businesses will not be able to survive this second stage unless all stakeholders of business, including government and landlords, provide impetus to the entrepreneurs”, adds InderJeet Banga, Promoter, Biggie Hospitality. Most unnerving is the haste with which the downturn came and the ambiguity over when it might end. “As of now our corporate teams are working on our systems and SOPs and strengthening them and also analysing our sales mix and doing a lot of analysis

HORECA on the numbers so when we re-open, we are ready with better ways to run the business and increased profitability”, adds Amit Bagga, CEO and Co-founder, Daryaganj Hospitality. No customers also means less work, and restaurants are utilising their time in the best possible way. Jamsheed Bhote, Chef-Owner, Plats is getting some much-needed rest and quality family time. But going forward, he and his partner Hanisha want to use the extra time to brainstorm on what lies ahead. They plan to work on a couple of concepts and menus and be charged and ready for when this is going to pass. “We are training ourselves for the near future, reflecting on innovations that can be brought in which our patrons can look forward to. Most importantly, we are currently focusing towards serving our community by providing free packed meals to the underprivileged and those in need”, says Sandeep Pande, Executive Chef, JW Marriott, New Delhi. THE FUTURE: TWO SIDES TO A COIN The current crisis arising out of COVID-19 is still unfolding and restaurants are trying to prepare for what’s coming, and do what they can to protect public health. “The future looks really good as I am sure when all this ends, people will really want to go out and will value those outings at restaurants more than they did before. Usually people cut down on holidays, or shopping for expensive items, but they never compromise on going out or watching movies which are the only two good forms of entertainment in India”, says Bagga.

The restaurant industry is facing severe impacts due to the global pandemic

No one can really assess the extent of the damage it will cause or the duration of this crisis, how long it will last but one thing is certain that business isn’t going to be the same any more. “An economic slowdown is imminent and with that the ability of our sector, largely driven by discretionary expenses, to get back on its feet will be hugely challenging. The definition of luxury will change in the immediate term and a fancy meal will surely fall under the revised category of luxury. People will largely be conservative in spending on such meals. Home cooking will be preferred for a while. I further reckon that the value dining segment, including deliveries, will be the first one to get off ground. However, the biggest fallout of this crisis will be the shutting down of several food service enterprises and the resultant loss of jobs in the sector. This will also adversely impact

the investments in the sector. We are perhaps fighting a battle for our existence,” says Katriar. Without any clear guidelines, restaurants are trying to do what they can. Ashish Dev Kapur feels that the future is very uncertain as they don’t know when they will open full strength. “If we look at the trends in China where this disease originated from and which has now got back to some normalcy in the restaurant business, it’s a very dismal future. A big issue will be getting dispersed workers back and I am saying this based in what I am reading about China. Supply chain gets broken so getting operations back to the right supply chain with the right manpower is going to be the first challenge. It has been a large financial hit with no sale and there is a cost structure like employees on roll, negotiating with landlords, etc. Hopefully they will see the problems we are

The future is uncertain for our restaurant industry... To sustain ourselves will be a huge challenge as it will take six months to a year to come back to normal sales”, says Ashish Dev Kapur.

facing, and overlook rentals for not just now but at least a year as sales are going to be sluggish. And lastly, to sustain ourselves will be a huge challenge as it will take six months to a year to come back to normal sales”, says Ashish. By the time things return to normal, people will probably have built much stronger habits of eating in and as such the percentage of people going out will drop substantially. “Secondly, everyone will be more careful about being in groups, and as such parties, bar nights, big events etc. will be slow to pick up. Thirdly, I expect this period to create a huge economic strain on everyone and as such disposable income post normalisation will be very tight. All these paint a bleak picture for the dining out industry for the near future”, says restaurateur AD Singh. Nikesh is an eternal optimist but the future looks a little confusing at the moment for him too. “I am sure that with the collective effort of the government and fellow Indians we will win this battle against coronavirus. However, the financial effects of the lockdown will have lasting effects for months to come and sectors like hospitality and tourism will take the longest to recover. The entire sector therefore is looking forward to some specific stimulus once the larger war is over”, says Nikesh Lamba. I am sure most of us would like to believe and go with what Sandeep Pande says, “The future is surely optimistic. My team and I look forward to welcoming you to JW Marriott New Delhi once the situation becomes normal”. Source: outlookindia.com

AgriBusiness & Food Industry

April 2020

event report

Display of New Food & Beverage Trends and Much More

An Excellent Platform for Trade Promotion and Business Networking

he 2020 essay of 35th edition of Aahar - the International Food and Hospitality Fair - one of the most-awaited businessto-business events in Asia, held in New Delhi, not only featured new food and beverage trends, but also hospitality services, processing, culinary technology, retail and new innovations. The five-day show, which concluded on March 7, was organized by India Trade Promotion Organisation (ITPO) and was inaugurated by Piyush Goyal, Minister for Commerce and Industry and Railways, Government of India, in Pragati Maidan’s new International Exhibition-cumConvention Centre. Aahar is among the region’s best-known food and hospitality brands. It has grown by leaps and bounds in recent years, and is, today, a popular destination for global vendors and sourcing professionals. Active Support The show was supported by the Ministry of Food Processing Industries (MoFPI), Agricultural and Processed Food Products Export Development Authority (APEDA) and industry associations like The Hotel and Restaurant Equipment Manufacturers Association of India (HOTREMAI), Association of Resource Companies for the Hospitality Industry of India (ARCHII), Food and Hospitality Support

April 2020

Association of India (FHSAI), the All India Food Processors’ Association (AIFPA), the Federation of Indian Food and Hospitality Industry (FIFHI), the Forum of Indian Food Importers (FIFI) and Indore Confectionery Manufacturers’ Association (ICMA). The event, which witnessed participation from major food and hospitality players, showcased a wide range of food products, machinery, food and beverage equipment, hospitality and decor solutions and confectionery items from over 750 participants from India and overseas. The foreign participants were from Hong

Kong, Israel, Indonesia, Japan, Poland, Russia, Switzerland, the UK and the UAE. Over 35,000 business visitors attended the fair, apart from millions through online and social media verticals. About the event, Hema Maity, General Manager, Trade Fair, ITPO, said, “The fair assumes tremendous significance in the light of the recent Union Budget, which had a focus on the promotion of agri-community, as well as tourism and MICE (Meetings, Incentives, Conferencing and Exhibition) sectors, which complements the hospitality segment. The Central

AgriBusiness & Food Industry

Government has recently approved the Agriculture Export Policy 2019 with an objective to double farmers’ incomes by 2022.” The display profile wass segregated into four categories, namely, food products, ingredients and additives; F&B equipment; house-keeping & engineering equipment and confectionery,” she added. The large number of trade visitors at Aahar 2020 included top echelons of the hotel and hospitality industry, including CEOs (Chief Executive Officers), General Managers, Executive Chefs, Executive Housekeepers, Purchase Managers, etc, besides, senior representatives from the catering industry and academic institutions and those training hotel management professionals. Food sector India’s food and grocery market is the sixth largest in the world. The Indian food sector is a high-growth sector with immense potential for value addition. The food processing industry in India accounts for 32% of the country’s total food market and 14% of the manufacturing GDP (Gross Domestic Product). It is estimated that the food processing sectors have the potential to attract investments worth $33 billion in the next 10 years. The increased inflow of foreign tourists and business visitors, as well as exposure of the Indian middle class

event report to foreign lands, are among the major reasons leading to growing demands for foreign cuisine and ingredients. With the government keen on promoting value addition in the food sector, Indian companies too have taken the initiative in a big way, resulting in a growing domestic demand for processed foods. F&B equipment and hospitality sectors India is a major economy, showing consistent and substantial growth. In fact, it is the fastest-growing economy in the world. The growing domestic/foreign business tourists have resulted in huge demand for star hotel properties which need high-grade services and facilities for the guests. Aahar is the largest and most wellknown event for sourcing F&B equipment and hospitality supplies and services in the sub-continent. The Indian hospitality industry is considered as a major attraction for FDI (Foreign Direct Investment). It is clocking CAGR (Compound Annual Growth Rate) of 14%. Foreign investors are keen to make use of this opportunity to satisfy the market needs. It has been estimated that more than $6 billion FDI came into the country, in the hospitality sector, during the last few years. Meanwhile, the F&B section saw participation from companies involved in manufacturing/marketing of fresh produce and dairy products, confectionery, chocolate, desserts, bakery products and ingredients, organic and health products, frozen, canned and processed foods, meat, poultry, seafood, cheese and fine specialty food, snacks, convenience food, food additives and preservatives, coffee, tea, syrups, juices, energy drinks, alcoholic beverages, non-alcoholic beverages,

ingredients, packaging supplies, and so on. F&B equipment section included preparation, processing and packaging that comprised bakery and confectionery equipment, food preparation equipment and supplies, food processing and packaging equipment, refrigeration/chillers/ freezers, stewarding, tableware and glassware products, bar equipment and supplies, storage units and kitchen support equipment, etc. Further, the hospitality & decor section saw participation from companies doing business in housekeeping products and supplies, laundry and cleaning equipment, guest amenities, linen, furnishings, fabrics and apparel, corporate gifts and decor solutions, bathroom fittings and fixtures, lighting solutions, cooling solutions, magazines, fitness and spa equipment, massagers, security and safety solutions, in-room technology and entertainment, hospitality support IT (Information Technology) solutions, furniture and interiors, carts and trolleys. New Consumer Trends and India's export potential Speaking at the inaugural ceremony, ITPO Chairman LC Goyal said, exhibitions like AAHAR not only promote but

indeed transform the various sectors of the economy and are the lifeline for the exhibition industry. He said these events are the main factors behind the growth and expansion of the exhibition industry. Referring to some recent studies, Goyal said, Asia, and India in particular, will be at the forefront of the future growth of the global exhibition industry. Goyal said, â&#x20AC;&#x153;India has yet to realize its full potential of exhibitions and conventions, and the future editions of specialized events such as Aahar would be organized with unprecedented size and stature after the completion of the International Exhibition and Convention Centre (IECC) at Pragati Maidan.â&#x20AC;? He indicated that the event industry, which is worth about Rs 3 lakh crore, has a crucial role to achieve the target of a $5-trillion economy by the year 2024, as envisioned by Indiaâ&#x20AC;&#x2122;s Prime Minister, Narendra Modi. Prominent Attendees Present on the occasion were Paban K Borthakur, Chairman, APEDA; Rajesh Agrawal, Executive Director, ITPO; Dr S K Jindal, President, AIFPA; Amit Lohani, Chairman, FIFI; Arvind Khanna, Vice-President, HOTREMAI, and Rajeev Sachdeva, Vice-President,

ARCHII, participants and delegates from India and abroad. Assuring better, transparent and accountable professional services to all the trade and industry by ITPO in future, Goyal complimented and acknowledged the continuing support of all the associates and stakeholders of the event. In his welcoming speech, Agrawal highlighted the salient features of Aahar 2020, and also affirmed that the next edition of Aahar would be organised on an enhanced scale. He added that the fair was an ideal platform to launch a pro-farmer-based agri-policy to ensure value addition of their produce and providing direct linkages with the export activity, thereby becoming an integral part of the retail and supply chain globally. One of the major attractions was a seminar on Research and Innovation -Key to Future Growth of Food Processing. Conceding that there have been difficulties for customers due to capacity constraints due to Pragati Maidan redevelopment over the last three years, he reassured the exhibitors and associate partners of a better show next year as around one lakh sqm exhibition space will be ready by then. Overall event The five-day event was committed to emergent environment-friendly technologies, and providing business delegates with exciting high quality products and services. Offering new opportunities for exports, the event also presented an insight into operational food safety concerns and innovations to become energy-efficient, finding budget-friendly raw materials for boosting productivity, while aiming at greater profitability.

AgriBusiness & Food Industry

April 2020

F&V Industry

“Spain is the leader and it should act as such” “The idea that there is no citrus fruit for some months must be eradicated from consumers’ minds. We must provide consistency”

Using a conciliatory tone, Deon Joubert, the top Executive of the Citrus Grower Association (CGA) of South Africa for European Affairs, emphasized the sector’s need for a global platform that defends the category’s interests and increases demand.

Deon Joubert, the top Executive of the Citrus Grower Association (CGA) of South Africa for European Affairs

April 2020

Why does the CGA support the need for a common platform for citrus fruit (the World Citrus Organization) where all the sector’s efforts may be brought together? CGA supports the need in the first place, because there are similar experiences with other products that work very well. I could mention the case of the WAPA (World Apple and Pear Association), the WAO (World Avocado Organization) or the IKO (International Kiwi Organization). There are no borders in the world of today; it is globalized and, therefore, it is better to share experiences and face up to problems together than fighting against each other as enemies. Europe and South Africa have maintained a common trade for over 110 years. We have complementary productions because we are in different hemispheres. Do you not think that South African and European producers represent different interests and situations of conflict could arise? No, not at all. We are all in the same boat. None of us are naïve, but we must act in a global way. We are interested in

AgriBusiness & Food Industry

developing the category on a worldwide scale and, to do this, we must share information regarding consumption, markets, harvest, research etc. We should not forget that (and this happens very frequently) some fruit ‘cannibalises’ other in daily consumption. Globally, we are all interested in working towards the same goals and, if this is not the case, the sector is going to have a hard time. There are large scale challenges, such as greening, which we must face up to together. Look at what happened in Florida. Climate change is going to affect us all as producers and the list goes on and on. So do you think that the citrus fruit category is having a hard time? There are differences amongst citrus fruit, but the sector should take a forward-looking approach. Talking about lemons, grapefruit or oranges is not the same as talking about mandarins. The latter is a marvelous product that young people love, but we must encourage its consumption. Lemons are very fashionable and their consumption is growing both due to chefs

F&V Industry in the kitchens and also for beverages. Each product or variety has its own path that we must all promote. Competition should not be amongst us: competition should mean other fruit. I suppose that you are aware of the important world upturn in avocados. This is a complete success story. Are you aware that there is an important debate in Spain about you playing a double game? Are you attempting to get closer to European institutions to obtain greater laxity in plant protection or quality terms, for example, with fruit for industry? Yes, I have heard something about this. This argument is absolutely false: we are not going to work against ourselves and discredit the category. This is the complete opposite to what we want. The WCO’s initiative has the European Commission’s approval, along with that of the Spanish Ministry of Agriculture. For many years we have done a great deal of business in Spain and Europe

We must develop demand for the category together. This is the most important point.

is our natural counter season market (From May to October). Our presence in these months helps to maintain the consumption of the category throughout the year and it is a source of business for many exporters. With regard to Spanish exporters, many of them from Valencia, I would say that we have great respect and admiration for their know-how. Spain is the leader and the leader should act as such. Spanish companies must be creative and find reasons to cooperate. You have the experience of cooperation with the Single Market; I don’t believe that you want to go back to a situation such as the one prior to the 1990s. You are squeezing our trading margin in

mandarins. If you want to find a reason for arguing, you will always find one, but the volumes from Spanish production cannot be compared with those from South Africa. Yes, we are growing, but this won’t go beyond 10% over the next few years. Sincerely, I think that there is a market for everyone; the important point is that consumers feel that our produce is attractive and they choose it. Spain is, and will continue to be, the leading exporter for fresh produce: eight million tonnes of production and four for export is a very significant figure. Our production is 2,500,000 tonnes and our exports to the EU reach 800,000 tonnes and we are not in the same hemisphere. The great world producers are in the northern hemisphere. The south represents less than a quarter of world production (around 26,000 million tonnes) and of these; a quarter comes from Brazil, which is mainly used for fruit juice.

AgriBusiness & Food Industry

April 2020

F&V Industry

Top Seeds International: At Fruit Logistica with a New Brand for Generation Y The seed company specialised in research and marketing of innovative hybrid vegetable varieties, chose Fruit Logistica to showcase Ikygai, its new umbrella brand launched following a series of focus groups, workshops and consumer testings.

brand for fresh produce based on the Japanese concept of a healthy, balanced lifestyle and aimed at Generation Y. Indeed, millennials namely, those born between the early Eighties and the end of the Nineties, with their strong focus on quality of life, health and wellbeing - are the main target consumer group of Ikygai, the new brand presented by Top Seeds International at Fruit Logistica, the leading international trade fair for the fruit and vegetable sector, held in Berlin from 5th to 7th February. The Ikygai brand actually stems directly from consumer requirements, intercepted by Top Seeds International through a series of product testings, carried out not only on potential traditional purchasers, but also on a panel of experts. The results of this survey, conducted over the course of 2019, revealed the increasingly pressing need for a brand that not only encompasses fresh products but is synonymous with health, beauty, taste and inspiration. This culminated in the launch of Ikygai,

April 2020

now being presented to the market with a campaign which, through recipes, leaflets and storytelling on websites and social media platforms dedicated to health and wellbeing is based on attention to food and food quality. The packaging too, made of recycled clear plastic, meets the demands voiced by consumers during the testing stage, asking not only for simplicity, stylishness and transparency, but also for a clear view of the product

inside, all with the utmost respect for fundamental ethical and sustainable principles. In addition to exclusiveness, with Ikygai Top Seeds International aims to focus on innovation, with the addition - approximately every two years - of premium quality products including peppers, cucumbers, melons, watermelons and onions. Yuka -the mini plum tomato with elegant, uniform clusters of bright orange -

AgriBusiness & Food Industry

coloured fruits weighing on average 20-25 grams - is the first product in the Ikygai line to be presented in Berlin. Delivering a unique taste experience, it has a good shelf-life with firm, slightly crunchy fruits and a high Brix level. Yuka boasts an excellent range of resistance, and the open-habit, high-vigour plants are very productive. Surveys conducted on sample consumer groups in the Netherlands during 2019 recorded enthusiastic

F&V Industry appreciation: the mini plum was considered “sweet and fruity in flavour”, which precisely meets expectations based on the product’s appearance. The brightness of its colour was another aspect that drew highly positive reviews. A panel of sensory experts also outlined Yuka’s taste profile, comparing it against current benchmarks, “Based on the surveys carried out” explained Gianni Bernardotto CEO of Top Seeds International, “its sweetness is considerably higher, the flavour fruitier with less aftertaste, and the texture firmer. We carried out this research to keep in step with the needs of the market: we aim to offer vegetable varieties with not just genetic resistance to a wide range of diseases, but also with increasingly desirable characteristics for consumers.” The new umbrella brand is a star attraction at the Top Seeds International stand

(City Cube, Hall B – C05) thanks also to the presence of Japanese chef, Shin Miyeon, who tempted visitors with a series of dishes created with Yuka that all reflect the oriental lifestyle summed up in Ikygai. “Food with purpose” is the claim which accompanies the brand and which serves as a reminder that food is not just a means of satisfying hunger but is, above all, linked to other aspects,

such as health, beauty, taste and inspiration. About Top Seeds: Top Seeds International is an international company specializing in research and marketing of innovative hybrid varieties of highquality vegetables. Founded in Israel in 2003, it operates worldwide through companies based in Spain, Italy and Mexico. Since May

2017, Top Seeds International has been owned by the group Mitsui & Co. Ltd. The company’s aim is to guarantee high yields and excellent-tasting fruit by selecting varieties with genetic resistance to a wide range of diseases. Through continuous field research, the company’s geneticists, agronomists and technicians select the best varieties of many different vegetable species in terms of resilience and profitability, including tomatoes, peppers, cucumbers, aubergines, melons and watermelons. The company works closely with its customers in developing innovative varieties and concepts with the aim of meeting all their needs. For further information: https://www. ikygaifoodwithpurpose.com/ https://topseedsinternational. com/

AgriBusiness & Food Industry

April 2020

F&V Industry

Italian Apples Reach Vietnam with the First Vog Consortium Shipment

historic milestone for the Italian apple market... Recently VOG, the South Tyrolean Consortium with almost 5,000 member producers in the region, farming an area of 10,900 hectares, shipped a container of apples to Vietnam for the very first time. In an unprecedented move, the 8 tonnes of apples will be distributed through the Asian country's biggest retail circuits. Negotiations with Vietnam began at the end of 2015 and the process has inevitably been lengthy, due to the need to agree phytosanitary conditions

April 2020

and pass a large number of preliminary inspections. “For our Consortium, and for the Italian market in general,” Walter Pardatscher, CEO of VOG, explained, “5 March 2020 is a date which will go down in history. Not a single load of Italian apples had ever been shipped to Vietnam before. We would like to take the opportunity,” Pardatscher concluded, “to thank Assomela for their active assistance in this operation, which we hope to consolidate and continue over time.” “As well as VOG itself,” Alessandro Dalpiaz, General Director of Assomela, adds, “the successful opening of

this new sales channel is also thanks to our colleagues in the Ferrara CSO and all the Institutions, from the provincial authorities to the Ministry of Agriculture, the Italian Trade Agency and the Italian Embassy in Hanoi, whose constant support to Assomela in these difficult negotiations enabled us to achieve our goal. At what is definitely a difficult time for international trade, the importance of this result reaches beyond the apple industry alone, to restore faith in the markets and the potential for business between even very distant countries. Overall, it was a success based on teamwork, which will soon also be

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extended to include Taiwan and Thailand.” “We view the Vietnamese market with great interest,” VOG Sales Manager Klaus Hölzl explained. “It has very high potential and we are committed to working hard to build the trust and partnerships necessary to win over consumers, and also to overcome some remaining criticalities in the protocol.” In the meantime, the first container of VOG Consortium apples has already left, and will reach its destination in just over a month's time, enabling local consumers to enjoy Italian apples and savour “bites” of South Tyrol – Südtirol of the very highest quality.

TECHNOLOGY

“Creating food sensations” – now in a digital format

Bühler invites to virtual interpack tradeshow

he interpack tradeshow in Düsseldorf, Germany, is an important milestone for the consumer foods industry, taking place every three years. As is the case with many events and tradeshows, interpack has been postponed in order to mitigate the risk of spreading the coronavirus. The show was originally scheduled from May 7-13, 2020. Customers should keep the dates May 11-15, 2020, in their schedule, as Bühler will invite to a virtual interpack under the motto “Creating food sensations” with digital showrooms, chats, and webinars to present its latest technologies and solutions. “The interpack 2020, like many tradeshows around the world, has been cancelled to keep people safe and mitigate the spread of the coronavirus. This cautionary decision is a positive step for the health and safety of our customers and employees,” says Germar Wacker, CEO of Bühler’s Consumer Foods business. “The

current challenges require us to explore new ways of reaching out and preparing for the future. We ask all our customers and interested people to keep the interpack dates in their calendars,” he adds. Within the next days, Bühler will invite everyone who had planned to travel to Düsseldorf to join the company’s virtual booth online, get inspired by new end-product compositions, meet Bühler experts and sales people in chat rooms, or enter technical presentations online. “There are so many challenges and opportunities in the consumer foods market today that deserve new solutions,” says Germar Wacker. “We want to invite all our customers to explore these solutions in a completely new, virtual format which also allows for individual discussion.”

range of processing solutions along the entire value chain. Under the motto “Creating food sensations”, the aim was to inspire customers with innovative end products, from chocolate mass to enrobed baked goods, from molded products to wafers and biscuits. Sustainable innovations that help reduce waste, water, and energy usage in the bakery, chocolate, confectionery and roasting industries would have been presented to encourage visitors to contribute to a better future. At the same time, Bühler wanted to showcase new solutions for food safety, healthy ingredients, and higher efficiency. Since the last interpack three years ago, Bühler has put immense efforts and investments into innovation to meet the growing requirements of the market and of its customers, for example with significantly higher energy-efficient solutions and less waste. Bühler’s interpack solutions to be presented in the virtual

space With it's announcement of the interpack cancellation, it will not be possible to present these solutions physically and to meet face-to-face with customers. “Though the news that interpack has been cancelled means that we will not showcase our latest innovations to customers in person, we will take this occasion to focus on digital communication alternatives, virtual presentations, and online conversations to keep our customers fully up-todate,” says Wacker. “In every challenge is an opportunity. In a world of change, perhaps we will discover that virtual tradeshows offer efficient, impressive, and modern platforms to communicate and exchange about the developments and the state-of-the art solutions for a prosperous future of the consumer food markets.” Bühler is pleased to welcome customers in a virtual space from May 11-15, 2020. Further information will follow shortly.

Bühler presents new sustainable, energy-efficient solutions At interpack, Bühler planned to showcase its full AgriBusiness & Food Industry

April 2020

Food Processing

Food Additives: Safety and Quality Aspects - Anil Gupta, Manisha Kaushal, Devina Vaidya and Anil K Verma Dept. of Food Science and Technology, Dr YS Parmar University of Horticulture & Forestry, Nauni, Solan (HP), India

ood additive means any substance not normally consumed as a food by itself and not normally used as a typical ingredient of the food. The additives whether or not has nutritive value, the intentional addition to food for organoleptic purpose during processing, directly or indirectly becoming a component of such foods. The term does not include contaminants or substances added to food for maintaining or improving nutritional qualities. Food additives play an important role in todayâ&#x20AC;&#x2122;s complex food supply. There is a huge range and choice of foods in supermarkets and specialist food shops. But the consumers are demanding more variety, choice and convenience alongside higher standards of safety and wholesomeness at affordable prices. Meeting these consumer expectations can only be achieved using modern food processing

April 2020

technologies which include the use of a variety of food additives proven effective and safe through long use and rigorous testing. Additives carry out a variety of useful functions which we often take for granted. Foods are subjected to many environmental conditions like temperature changes, oxidation and exposure to microbes, which can change their original composition. Food additives play a key role in maintaining the food qualities and characteristics that consumers demand, keep the food safe and appealing from farm to fork. Food additives are the substances of natural or synthetic origin, which are added to foods to serve a certain technological or sensory function. They are utilized in the preparation and processing of almost all types of food in order to give favourable attributes to the food. Some additives have

been used for centuries for example, preserving food by pickling with vinegar, salting, or by using sulfur dioxide as in some wines. The use of food additives is not a modern-day invention; they have been used for centuries. The practice probably started when man first discovered that fire would cook and thereby preserve his meat. Later he realized that the addition of salt would preserve without cooking. Food preservation began when man first learned to safeguard food from one harvest to the next and by the salting and smoking of meat and fish. The Egyptians used colours and flavourings and the Romans used spices and colours for preservation and improving the appearance of foods. Thus, food additives have been used for centuries to enhance the variety of food products, to preserve, improve its taste and appearance, and

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provide a better mouth feel. Food additives afford us the convenience and enjoyment of a wide variety of appetizing, nutritious, fresh, and palatable food. Salt and sugar are the most commonly used additives. Some of the commonly used food additives and preservatives are aluminum silicate, amino acid compounds, ammonium carbonates, sodium nitrate, propyl gallate, butylated hydroxytoluene (BHT), butylated hydroxyanisole (BHA), monosodium glutamate, white sugar, potassium bromated, potassium sorbate, sodium benzoate, etc. Some artificial colours are also added to the foods like erythrosine (red), cantaxanthin (orange), amaranth (Azioc red), tartrazine (yellow) and annatto bixine (yellow orange) to give them an appealing look. They also maintain palatability and

Food Processing wholesomeness of the food, improves or maintains its nutritional value, provide leavening and colour and also enhance the flavour of the product.

2. Antifoaming agents Antifoaming agents reduce or prevent foaming in foods. There are two types viz; antifoaming agent and defoaming agent.

Functions of Food Additives • Improving the keeping quality of a food by making it last longer on the shelf or in the fridge, e.g., a preservative to prevent growth of bacteria or humectants to prevent food drying out • Maintaining the product consistency by using emulsifiers which gives the products a consistent texture and prevent them from separating. Stabilizers and thickeners give smooth uniform texture. Anti-caking agents help substances such as salt to flow freely • Improving and maintaining nutritional value by adding vitamins and minerals to many common foods such as milk, flour, cereal and margarine. It helps to fulfill the requirements likely to be lacking in a person’s diet or lost during processing. Such fortification and enrichment has helped reduce malnutrition. • Maintaining palatability and wholesomeness by checking any rancidity or off flavour developments. Preservatives retard product spoilage caused by mold, air, bacteria, fungi or yeast. Bacterial contamination can cause food-borne illness, including life threatening botulism. Antioxidants prevent fats and oils in baked goods and other foods from becoming rancid or developing an

3. Antioxidants Antioxidants prolong the shelf-life of foods by protecting against deterioration caused by oxidation. Antioxidants are used to preserve food for a longer period of time. Antioxidants act as oxygen scavengers as the presence of oxygen in the food helps the bacteria to grow that ultimately harm the food. In the absence of antioxidant food additive oxidation of unsaturated fats takes place rendering to foul smell and discolouration of food. Antibrowning agent, antioxidants and antioxidant synergist are the types of antioxidant. Examples are ascorbic acid, citric acid, tocopherols and BHA, BHT, TBHQ etc.

off-flavour. They also prevent cut fresh fruits such as apples from turning brown when exposed to air. • Leavening agents that release acids when heated can react with baking soda to help cakes, biscuits and other goods to rise during baking. The additives help in modifying the acidity and alkalinity of foods for proper flavour, taste and colour. • Improving the taste or appearance of a food, by the addition of flavours, thickeners and colours. Consumers can actually be offered a wider choice of foods due to the existence of additives. • Enhancing the flavour and impart desired colour by adding many spices, natural and synthetic flavours which also enhance the taste of foods. Colours enhance the appearance of certain foods to meet consumer expectations.

FOOD ADDITIVES Over 3,000 different chemical compounds are used as food additives. They are categorized into different groups. A few types of additives are indicated below: 1. Anti-caking agents Anti-caking agent is the food additive that prevents agglomeration in certain solids, permitting a freeflowing condition. It reduces the tendency of particles of food to adhere to one another by preventing the formation of lumps. Also help in making these products manageable for packaging, transport and for use by end consumer. An anti-caking agent consists of such substances as starch, magnesium carbonate, and silica and is added to fineparticle solids. Some of the common examples of foods that contain anti-caking agents include coffee, cocoa, soup, table salt, flours, sugar, milk and cream powders, grated cheese, baking powder, cake mixes, instant soup powders etc.

CLASSIFICATION OF

Broad Classification of Food Additives

4. Bulking agents Bulking agents contribute to the bulk of a food without contributing significantly to its nutritional or energy value. They may be bulking agents or fillers. Bulking agents such as starch are additives that increase the bulk of a food without affecting its nutritional value. 5. Colouring retention agents This stabilizes, retains or intensifies the colour of a food. Colour adjunct, colour fixative and colour stabilizer are the colour retention agents used to preserve the existing colour of the food. Colourings are added to food to replace colours lost during preparation or to make food look more attractive and appealing.

AgriBusiness & Food Industry

April 2020

Food Processing 6. Emulsifiers A food additive, which forms or maintains a uniform emulsion of two or more phases in a food are emulsifiers. Emulsifiers allow water and oils to remain mixed together in an emulsion, as in mayonnaise, ice cream and homogenized milk. Types of emulsifiers are clouding agent, crystallization inhibitor, plasticizer, surface active agent and suspension agents. 7. Firming Agents A food additive make or keep tissues of fruit or vegetables firm and crisp, or interact with gelling agents to produce or strengthen a gel. 8. Flavours and Flavour enhancers Flavours are additives that give food a particular taste or smell, and may be derived from natural ingredients or created artificially. However, the flavour enhancers enhance a food’s existing flavours. They may be extracted from natural sources (through distillation, solvent extraction, maceration etc) or artificially. Types of flavour enhancing agents 1. Flavour enhancer: Dioctyl sodium-sulfosuccinate (processed food), Disodium guanylate (canned meat), Monosodium glutamate (MSG) (used in Chinese food and frozen meats). 2. Flavour synergist 9. Food acids Food acid is added to make flavours “sharper”, and also act as preservatives and antioxidants. Common food acids include vinegar, citric acid, tartaric acid, malic acid, fumaric acid, and lactic acid.

April 2020

10. Gelling agents Gelling agents are food additives used to thicken and stabilize various foods like jellies, desserts and candies. The agents provide the foods with texture through formation of a gel. Some stabilizers and thickening agents are gelling agents. 11. Glazing agents A food additive, which when applied to the external surface of a food, imparts a shiny appearance or provides a protective coating. Glazing agents provide a shiny appearance or protective coating to foods. 12. Humectants Humectacts are food additive, which prevents food from drying out by counteracting the effect of a dry atmosphere. Types of humectants are moisture/ water retention agent and wetting agents. 13. Preservatives Preservatives are food additive, which prolongs the shelf-life of a food by protecting against deterioration caused by microorganisms. It prevents or inhibits spoilage of food due to fungi, bacteria and other microorganisms. It stops microbes from multiplying and spoiling the food. 14. Sequestrants A sequestrant is a food additive whose role is to improve the quality and stability of the food products. Sequestrants form chelate complexes with polyvalent metal ions, especially copper, iron and nickel, which serve as catalysts in the oxidation of the fats in the food. 15. Stabilizers Stabilizers are food

additives, which makes it possible to maintain a uniform dispersion of two or more components. Stabilizers, like agar or pectin (used in jam for example) give foods a firmer texture. While they are not true emulsifiers, they help to stabilize emulsions. 16. Sweeteners Sweeteners other than sugar are added to keep the food energy (calories) low, or because they have beneficial effects for diabetes mellitus and tooth decay and diarrhea. These are the substances that sweeten food, beverages, medications, etc., such as sugar, saccharine or other low-calorie synthetic products. They in general can be termed as sweetening agents. Natural sweeteners are obtained from the natural sources like sugarcane and sugar beet and from fruits (fructose) and the artificial ones have a chemical origin and are non-caloric sweeteners and sugar alcohols. 17. Thickeners Thickeners are substances which, when added to the mixture, increase its viscosity without substantially modifying its other properties. They may be binder, bodying agent, and texturizing agent. CLASSIFICATION OF ADDITIVES ON BASIS OF THEIR TECHNOLOGICAL FUNCTIONS 1) Stabilizers of physical characteristics • Emulsifiers: Substances that allow the maintenance or formation of a homogeneous mixture of two or more non-miscible phases. For example, water and oil • Thickeners:

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Macromolecules that preserve the textures of foods such as viscosity or gelling effect. For example, adding E-406 (agar-agar) to a jam preserves for its texture. • Anti-caking agents: Substance that prevents the formation of clumps or lumps that affect product homogeneity. They are usually used in soups, sauces, juices or dairy products. 2) Inhibitors of chemical and biological alterations • Antioxidants: They are additives that are added mainly in fatty ingredients to delay or prevent the rancidity of foods due to the oxidation. There are two types of antioxidants in the market; natural and synthetic. • Conservatives: Substances that when added protect food against deterioration caused by unwanted microorganisms. They are often used in food containing water, such as bakery, pastries, dairy, beverages or meat products. 3) Modifiers of organoleptic characters • Colouring agents: Substances used to modify or stabilize the colouring characteristics of a food. Colour in food is an aspect that is associated with the quality of food and is related to taste and smell. The use of saffron or cochineal for colouring has a long tradition which continues today. • Flavour enhancers: Substances that enhance the taste and/or aroma of a food without giving its own flavour. They are

Food Processing widely used in sauces and soups. Monosodium glutamate is one of the most commonly used in processed foods. • Sweeteners: These additives are used to provide sweet taste or to mimic flavours. The flavour of sweeteners is most similar to the common sugar. They are very important in products especially for diabetics or low calorie products. 4) Improvers and correctors They are additives that are used in baking, wine making, or to regulate the maturation of dairy products, such as cheese or meat products. • Acidity correctors: Substances that control or alter the pH of food. Inadequate control can lead to the proliferation of undesirable bacteria in the food which could suppose a health risk. • Aromatic correctors: These are substances that provide a new aroma and/ or correct the aroma of food and beverages. It is possible to obtain them from extracts of vegetable origin. Precautions to be taken for using food additives 1. Food additives must be thoroughly tested before use. Foods additives containing physical hazards such as stones, seeds, glass fragments or metal pieces must be thoroughly checked. 2. FDA approved food additives should be used as per approved quantity. Improper use of some of them may prove to be harmful to human health. 3. Use of additives should not be permitted if

Classification of additive on basis of EU numbers

a. They fail to serve the interest of consumers b. They are used to mask the effect of faulty processing and handling techniques c. They are used to deceive the consumers d. Their use results in a significant reduction in the nutritive value of the foods 4. Additives should be used in a controlled way so as to maximize benefits and prevent abuses. In case there is a risk of food additives, following steps can be taken into account for minimizing the risk. • Rinse and scrub fresh fruits and vegetables before consuming them. • Ensure to tear off outer leaves of leafy vegetables. • Remove the skin and fat from meat, fish and poultry, especially if they had been preserved and frozen. • Leave out the fat while cooking meat, fish and poultry as many food contaminants dissolve in fat. • Know about the harmful food additives and try to avoid them while buying food stuff. Insist on buying only those that have safe food additives in them. Safety Evaluation of Food Additives Any new additive before approving must undergo

rigorous toxicity studies, including acute and chronic studies involving biochemical evaluation, teratogenic studies, and reproductive studies besides the LD50 tests. In the US Delaney Clause governs the approval of any food additive, under which the additive is banned if found to be carcinogenic, under any condition or level, a very difficult zero risk condition. In general, under the Food additives amendment two groups of ingredients are exempted from regulation. Group I: Prior sanctioned substances that FDA or USDA has determined safe for use in food prior to 1958 amendment. Eg; Sodium nitrate, Potassium nitrate Group II: It includes GRAS, all the substances approved by experts as safe based on their extensive history of use in food before 1958 or based on published scientific evidence. Eg: Salt, sugar, MSG. Food safety in India is ensured by Government of India’s Ministry of Health under the provisions of Prevention of Food Adulteration Act & Rules, FSSAI, & FSSR. They are responsible for Food Laws and the rules therein. State Government's Food & Drug Administration (FDA), which carries out surveillance using food inspectors, does the enforcement. There are

food analysis labs, both state and central level, which verifies the authenticity of food products. Any food safety legislation or standard requires involvement of several aspects including Research & Development, Information & Documentation, Education & Training, Quality Assurance Program, Codex & International Norms, Advisory System, Planning, Enforcement and Surveillance. The Risk Analysis, adopted nowadays involves, risk assessment, wherein the hazard is identified and characterized, exposure is assessed and thus risk is characterized. Once the risk is assessed, it must be managed so that the hazardous conditions do not arise. Finally the risk must then be communicated. General principles of food safety risk management 1. Risk management should follow a structured approach: Risk Evaluation, Risk Management Option Assessment, Implementation of Management Decision, Monitoring and Review. 2. Protection of human health should be the primary consideration in risk management decisions (with consideration of other factors like economic costs, benefits, technical feasibility and societal

AgriBusiness & Food Industry

April 2020

Food Processing preferences). 3. Risk management decisions and practices should be transparent. 4. Determination of risk assessment policy should be included as a specific component of risk management. 5. Risk management should ensure the scientific integrity of the risk assessment process by maintaining the functional separation on risk management and risk assessment (reduce any conflict of interest between risk assessment and management). 6. Risk management decisions should take into account the uncertainty in the output of the risk assessment. 7. Risk management decisions should include clear,

April 2020

Food additives play an important role in todayâ&#x20AC;&#x2122;s complex food supply. There is a huge range and choice of foods in supermarkets and specialist food shops.

interactive communication with customers and other interested parties in all aspects of the process. 8. Risk management should be a continuing process that takes into account all newly generated data in the evaluation and review of risk management decisions. The use of food additives has become a prominent feature of the present day food processing industry. Food additives have been used for centuries and have gained added importance

over the last few decades. Food additives preserve the freshness and appeal of food between the time it is manufactured and when it finally reaches the market. Additives may also improve nutritional value of foods and improve their taste, texture, consistency of colour. Additives have increased the development of convenience foods, snack foods, low-calorie and health promoting (functional) foods, exotic foods and a verity of food substitutes. They help to assure a food supply with the safety, variety,

AgriBusiness & Food Industry

appeal, wholesomeness and affordability. All food additives approved for use in the United States are carefully regulated by federal authorities to ensure that foods are safe to eat and are accurately labeled. Food additives have been used by man since earliest times but the present day consumer demands high quality, convenient and minimally processed foods. Today, food and colour additives are more strictly regulated than at any time in history. FAO law prohibits the use of any additive that has been found to cause cancer in humans or animals. The role of additives thus, becomes all the more important and has become an integral part of food industry for day to day life for the production of various processed products.

AgriBusiness & Food Industry

April 2020

Meat Alternatives

BEYOND MEAT- The Solution for Vegans - Kanmani.K1, Dr.Geetha P.S2 and Dr. Umamaheswari.T3

onsumer demand for meat alternatives has grown over the past years as consumers have been on a journey of realization regarding how their lifestyle choices and purchases have an impact on our planet. An increased number of consumers are switching to plant-based diets for many reasons, including protecting animals, preserving the environment, general health concerns or changing taste preferences. As more consumers seek these alternatives, the market for plant-based proteins is rapidly growing and extending to sources beyond soy and wheat protein. As a result, manufacturers are looking at plant-based proteins that offer functional, sustainable and nutritional attributes, inclusive of nonGMO and certified organic options. Meat Analogue Vegetarian foods occupy a larger than ever shelf space in todayâ&#x20AC;&#x2122;s market due to the consumers increasing health concerns and the related environmental issues. Analogue can be defined as the compound that is structurally similar to another but differs slightly in composition. Here the meat analogue is the food which is structurally similar to meat but differs in composition. Meat analogue, also called a meat substitute, mock meat, faux meat, or imitation

April 2020

meat, approximates the aesthetic qualities (primarily texture, flavour, and appearance) and/or chemical characteristics of specific types of meat. Thrust in the development of meat analogue The increase in consumers demand for healthy diets, the concern about rising meat prices, the increase in the popularity of vegetarianism and the growing consumer interest in related eating patterns such as the avoidance or reduced consumption of red meat have resulted in a continuous increase in demand for the meat analogous and to use an alternative source such as the plant protein as the ingredients in the human diet. The nutritional value of meat products is mainly due to their high biological values of proteins, vitamins and minerals. However, from a health point of view, an excessive intake of meat products cannot be recommended. It is well

known that meat contains cholesterol and a higher proportion of saturated fatty acids than polyunsaturated fatty acids (PUFAs) where is linked with several diseases which have reached epidemic proportions. Technology to develop meat analogue Extrusion-technology is gaining popularity in the global agro-food processing industry, particularly in the food and feed sectors. It is defined as a system of pushing mixed ingredients out through a small opening, called a die, to form and to shape the materials. The formed products are then referred to as extrudates. In the 1960s, twin-screw extruders were established. The increased potential of a twin-screw system led to a diversification of options in food extrusion that expanded into a large variety of new snack and cereal products. Extruders are composed of five main parts:

AgriBusiness & Food Industry

(i) Pre-conditioning system; (ii) Feeding system (iii) Screw (iv) Barrel (v) Die and the cutting mechanism Also, they can vary with respect to screw, barrel and die configuration. The selection of each of these items will depend on the raw material used and the final product desired. Extrusion Process Extrusion cooking is a High-Temperature ShortTime (HTST) process which reduces microbial contamination and inactivate enzymes. The sequence of operation in extrusion is raw materials are fed into the extruder barrel and the screw(s) then convey the food along it. Further down the barrel, smaller flights restrict the volume and increase the resistance to movement of the food. As a result, it fills the barrel and the spaces between the screw flights and becomes compressed.

Meat Alternatives As it moves further along the barrel, the screw kneads the material into a semi-solid, plasticized mass. If the food is heated above 100ºC the process is known as extrusion cooking (or hot extrusion). Here, frictional heat and any additional heating that is used cause the temperature to rise rapidly. Finally, it is forced through one or more restricted openings (dies) at the discharge end of the barrel as the food emerges under pressure from the die, it expands to the final shape and cools rapidly as moisture is flashed off as steam. Typical products include a wide variety of low density, expanded snack foods and Ready-To-Eat (RTE) puffed cereals. Meat alternatives Meat is the first preference by choice of non-vegetarian consumers worldwide as it satisfies all the urges to consume one typical textured, flavourful, juicy, chewy food which will fulfill their nutritional requirements too. There is also a need to look for new ways to raise nutrition for the poor at a minimum cost. Soya meat / Textured Vegetable Proteins (TVP) Soy protein products have become increasingly popular because of their low price, high nutritional quality, and versatile functional properties. For the production of Textured Vegetable Proteins (TVP), beans are washed and soaked in water at 30oC for about three hours, so as to soften the husk and to remove a majority of anti-nutritional factors present. The soaked beans are washed with water until the husk is completely

removed and then, dried at 70oC for 5-8 h. TVP is produced using hot extrusion of defatted soya proteins, resulting in expanded high protein chunks, nuggets, strips, grains and other shapes, where the denatured proteins give TVP textures similar to the meat. Soya meat is extremely rich in protein with protein content over 50 per cent. Quorn–the mycoproteins Quorn is the brand name for a line of foods made from mycoprotein (Fusarium venenatum). Quorn products take the form of faux chicken patties, nuggets, and cutlets, as well as imitation ground beef. To make a similar-product texture with mycoprotein, the fungal biomass was mixed with a binding agent such as egg albumin, flavouring agents, and other ingredients depending on the desired final products. After heating, the protein binder has been found to get converted into a gel that binds the hyphae together. Extrusion then result in products that have similar textural properties to those found in meat products. Nutritional benefits arise from mycoprotein due to its chemical composition. The cell walls of the hyphae (cells) are the source of dietary fibre (chitin and glucan). The cell membranes have been

reported to be the source of polyunsaturated fatty acids (PUFA’s) while the cytoplasm as the source of high quality protein. It is cholesterol free and low in saturated fats with a favourable fatty acid profile that is comparable to other vegetarian protein sources. Tofu Tofu derived from soybeans is perhaps the most widely recognized meat alternative; it is an excellent source of protein, calcium, and iron. It is usually available in block form. ‘Tofu’ prepared by coagulation of soymilk by Calcium sulphate (CaSO4) or Magnesium chloride (MgCl2) which contains 8% of total

proteins, 4-5% lipids and 2% of carbohydrates on fresh weight basis. Soybean has a high content of isoflavones namely daidzein, genistein and glycitein which are linked to its improved nutritional value. Tempeh Tempeh is made from soybeans that have been soaked and cooked to soften them. Like sour dough bread, tempeh requires a starter culture/inoculum (Rhizopus oligoporus), which is added to the cooked beans. This mixture is left for 24 hours and the result is a firm textured product with a nutty flavour and a texture similar to a chewy mushroom.

AgriBusiness & Food Industry

April 2020

Meat Alternatives Tempeh is firm so it can be formed into a patty, it is used as a substitute for animal products and in the Western states it is typically called as "mock meat.”

The resulting sheet is transferred to the next heating process in airspace having relative humidity within the range of about 75 and the temperature of 75-120°C.

Kinema Kinema is a non-salted, solid-substrate fermented, flavoursome, alkaline food, traditionally consumed mainly by the Nepalis, Lepchas and Bhutias. Fermentation is dominated by Bacillus spp. That often causes alkalinity and desirable stickiness in the product. In the traditional method of kinema preparation, yellow seeded soybeans are cleaned, washed, soaked overnight (1220 h) at ambient temperature (10-25°C), cooked by boiling (90-95°C) for about 90 min, crushed lightly to grit, wrapped in fern or banana leaves and sackcloth, and left to stand (25-35°C) for 1-3 days. The desired state of fermentation is indicated by the formation of a typical kinema flavour dominated by ammonia. Fresh kinema is briefly fried in oil and added with vegetables, spices and salt.

New Role Plant-based food is one of the strongest food trends at the moment, and it’s growing stronger by the minute. As demand grows in markets all over the world, vegan innovation, specifically plantbased product development, will increase. This includes all manner of food and beverage categories with dairy alternatives and meat culture alternatives at the fore. Opportunities for manufacturers remain stable as the number of consumers cutting down on meat, seeking meat-free meals or deliberately shifting to a vegan-only diet is predicted to increase as ethics take on a new role within food and lifestyles in general.

gluten,” is common vegetarian meat substitute wheat dough until the starch and bran components have been washed out resulting in a chewy mass. The water content of the mixture is adjusted within the range of 40 to 80 (w/w %), and the mixture is then, subjected to extrusion and can be extruded

into a pipe or cylindrical or into a sheet through a nozzle provided with a slit and then, formed into a continuous sheet having a thickness of about 4 to 20 mm and breadth of about 100 to 1000 mm. The sheet is stretched at least 2.5 folds in the stretching process, whereby the fibre structure is endowed with directionality.

Seitan It is often known as “wheat meat” or “wheat

April 2020

AgriBusiness & Food Industry

Ph.D scholar, Department of Food Science and Nutrition,

Associate Professor, Department of Differently Abled Studies,

Assistant Professor, Department of Food Science and Nutrition, Community Science College and Research Institute, Madurai – 625104

News Round-up

Bigbasket to hire 10,000 people for warehouses, delivery

nline grocery platform Bigbasket is looking at hiring 10,000 people for its warehouses and last-mile delivery to clear pending orders quickly and meet the spike in orders on account of the nationwide lockdown. E-commerce companies have been struggling to deliver orders after the 21-day lockdown, imposed to contain the spread of the deadly coronavirus, came into effect from March 25. Even though the government has allowed delivery of essential goods including food, pharmaceuticals and medical equipment through e-commerce platforms, players have complained of their delivery staff being hassled by police.

With local authorities shutting down warehouses and stopping trucks from crossing state borders, e-commerce players have seen their operations getting disrupted. The companies have resumed operations and working to complete pending orders. Some companies are giving people the option to cancel their orders, and are also delaying taking fresh orders to ensure the pending orders get delivered. "We are looking to hire 10,000 people for our warehouses and last-mile delivery. This hiring will happen across all 26 cities that we are present in," bigbasket Vice President-Human Resources Tanuja Tewari told. She added that the pressure

is being felt across all cities with the challenges being higher in tier I cities. Another challenge facing the industry is the availability of limited staff for warehouses and logistics. Tewari said currently, there is a shortfall of 50 per cent staff in the company's warehouses and delivery team. The company has started taking orders in all the cities but due to capacity constraints the slots are getting filled very quickly, she added. In a tweet, bigbasket said it is operating at about 40 per cent of its planned capacity. "We are operational across all our cities with limited slot

capacities except Kochi and Indore... We were operating at 10 per cent of our capacity on March 25 and as of yesterday (April 2), we are operating at 40 per cent of capacity planned," it said. The company also has permits/passes from government authorities to ensure that its employees have safe passage for their work. It is also providing attractive salary and benefits package including health insurance to help staff at this difficult time. Recently, bigbasket partnered with ride-hailing platform Uber to deliver household essentials to customers.

Other than the Amul brand of dairy products, the unions market food products and cattle feed. Close to 80%

of the revenue reaches the farmer members of the dairy cooperatives as the cost of milk procurement and bonus.

Amul turnover grows 17% to Rs 38,550 crore in 2019-20

he Gujarat Cooperative Milk Marketing Federation Ltd, which markets Amul milk and dairy products, reported a 17% increase in turnover to Rs 38,550 crore in the year ended March 31. The Amul groupâ&#x20AC;&#x2122;s turnover exceeded Rs 50,000 crore, which is also 17% higher than last year. Amul Federation has achieved a Compound Annual Growth Rate (CAGR) of more than 17% since last 10 years because of higher milk procurement, continuous expansion in terms of adding

new markets, launching of new products and adding new milk processing capacities across India, said the company. It is important to note that Amul federation has achieved turnover inspite of adverse market condition for dairy products at national as well as at international level, Managing Director RS Sodhi said. Amulâ&#x20AC;&#x2122;s 18 member unions, with more than 3.6 million farmers across 18,700 villages of Gujarat, procure on average 23 million litres of milk a day.

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April 2020

News Round-up

Swiggy, Zomato to sell essentials from Marico

arico has partnered with Swiggy and Zomato to distribute some of the essential products from its portfolio, termed ‘Saffola Store’, directly to consumers. This comes at a time when customers are finding it difficult to get essential items in grocery stores. The initiative enables consumers to order such food items as oats and oils under Marico’s Saffola brand on the food-tech platforms. This service is available on Zomato in Delhi NCR and Bengaluru, and it will be activated in other cities such as Mumbai, Kolkata, Chandigarh and Ahmedabad soon. The company said Swiggy stores have started the delivery in Gurgaon and the

service will be extended to rest of Delhi NCR, Bengaluru and Mumbai within a few days.. Marico COO (India sales & Bangladesh business) Sanjay Mishra said, “As India grapples with the unprecedented global pandemic, it is incumbent on every one of us to come together and extend our support. As one of India’s leading consumer companies, we are working towards ensuring the availability and easy access of essential food items to consumers. In an effort towards this, we have partnered with Swiggy and Zomato to provide Saffola and Coco Soul products to individuals’ doorstep in a safe manner.” Supply chains have been

disrupted due to shortage of workers and trucks in the wake of the Covid-19 pandemic. Ondemand delivery platforms too face a manpower crunch due to the 21-day lockdown. Swiggy COO Vivek Sunder said, “Through our partnership with Marico, Swiggy will leverage and engage its extensive delivery fleet to

ensure that essential products such as cooking oil and oats reach consumers quickly and in a safe manner.” Zomato COO (food delivery) Mohit Sardana said, as an essential service provider, “it is important we find ways to utilise our expertise to fight against this pandemic”.

network to deliver essential goods at people's doorstep. The orders will be delivered safely and hygienically using zero contact delivery," said Pratik Pota, Chief Executive Officer and Whole-time Director at Jubilant FoodWorks. Hemant Malik, Divisional Chief Executive at ITC's Foods Division, said the company's

teams have been working tirelessly in order to reach essentials to consumers every day in a safe manner. "We have redoubled our efforts to expand the availability of food products by leveraging various avenues and channels that connect seamlessly with consumers," he said in a statement.

Domino's Pizza, ITC Foods partner to deliver essential items as Indians stay home

omino's Pizza said that it is partnering with ITC Foods to help customers order everyday grocery essentials as coronavirus cases continue to climb despite the countrywide lockdown. "The partnership between a Quick Service Restaurant (QSR) and a Fast Moving Consumer Goods (FMCG) company is aimed at serving the community at large by ensuring uninterrupted supply of essential items without them having to step outside the safety of their homes," Domino's said in a statement. A combo pack of

April 2020

Aashirvaad atta and spices including chilli, coriander and turmeric powder will be available on Domino's app. This service will be available for consumers first in Bengaluru and then in the cities of Noida, Mumbai, Kolkata, Chennai and Hyderabad. To avail the service, customers need to use the latest version of the Domino's app, click on Domino's Essentials section and use digital payment mode to complete the order. "We will use the Domino's supply chain and delivery

AgriBusiness & Food Industry

News Round-up

Firms asked to ramp-up food supplies, production

he government has asked food industry players to ramp-up production of food products to avoid any supply side shocks and shortages amid the ongoing nationwide lockdown. The Department for Promotion of Industry and Internal Trade (DPIIT) has reached out to all industries linked to food to increase production to maintain uninterrupted supply and has asked state governments to facilitate the functioning of food processing units. “We have identified and told the industries related to food to ramp-up supplies. It is part of the coordination work along with the food processing ministry for essential permitted items and processes,” said an official in the know. Britannia Industries had

urged the government to ensure interstate movement of raw material for the food processing industry. This includes suppliers of raw materials and packaging material, food manufacturing factories, factory workers, transporters of material and finished goods, depots, wholesalers, distributors and their salespeople. If not done at the earliest, the country could run out of stocks of packaged food in a few days, it said. The commerce and industry ministry is reviewing the supply-side bottlenecks, but the issue of reaching out to food producing companies came up at a joint meeting of various ministries. “We are also coordinating with states wherever they are facing lockdown-related

problems,” the official added. The department has recently set up a control room to monitor the supply of essential commodities, the real-time status of transportation and delivery of goods, manufacturing, delivery of essential commodities and difficulties being faced by various stakeholders. The control room is a one-stop destination for manufacturing, transporter, distributor, wholesaler or e-commerce companies facing ground level difficulties in transport and distribution of goods or mobilization of

resources. The official said a temporary shortage of certain products is permissible, but the idea is to avoid any disruption in the supply chain of essentials. “Also, the primacy of lockdown can’t be lost,” the official said. The home ministry has directed all states and Union Territories to allow transportation of all goods, without distinction of essential and non-essential, during the lockdown period. The entire supply chain of milk collection and distribution, including its packing materials, is allowed during the lockdown period.

Therefore, all importers are advised to inform their clearing agents accordingly. Food importers facing any problem or need any further clarification in this regard may be advised to contact FSSAI’s regional offices or email their queries at import@fssai.gov.in. The details of various regional

offices are available on the website. FSSAI is keeping a close watch on the situation. It will continue to assist food importers as well as ensure regular supervision and testing of food items and will take appropriate steps to ensure the safety of food products.

Import Clearance and Food Testing Labs classified as Essential Services by FSSAI during the COVID-19

ood Safety & Standards Authority (FSSAI) has classified the import clearance of food items and functioning of notified food testing laboratories (including National Food Labs) under Essential Services during the COVID-19. All personnel who are assigned the charge of above essential services are required to be available in office on all working days from Monday to Friday between 9:30 AM to

6:00 PM in order to facilitate the trade as well as ensure smoother operation of related services across the country. FSSAI has its Offices at 6 locations namely Chennai, Kolkata, Mumbai, Delhi, Cochin and Tuticorin and all these offices are fully operational for scrutiny of applications, visual inspection and sampling for import clearance to ensure expeditious processing of applications and timely issuance of NOC.

AgriBusiness & Food Industry

April 2020

News Round-up

Dealing with lockdown: How ITC Agri is working around farm supply hurdles

he Centre as well as State governments have taken care to exempt agricultural activities from various restrictions while implementing the 21-day lockdown. As the rabi season comes to a close in one or two weeks and harvesting horticultural and vegetable crops needs labourers and transport vehicles, farmers are facing several challenges — in protecting the crop, harvesting it and marketing the produce. Even as farmers face such challenges, what about the companies that depend on agri produce as raw material? Supply and sourcing ITC’s Agri Business Division at present finds constraints in the supplies of commodities such as wheat, paddy and oilseeds in the markets. “With most of the mandis remaining closed, there are no arrivals in the market. After the initial challenges, the procurement of potato for storage has improved as the authorities have ensured eased movement,” said S Sivakumar, Head, Agri and IT Business of

ITC Agri Business. “However, villages far from major cities are adversely impacted as perishables are not getting picked up and demand is down,” he said. ITC Agri Business is working on leveraging its institutional capabilities and structural advantages to engage its farmer network and initiate purchases, while adhering to the government norms and directives. “The farmers are being indicated about the right price for their produce in advance and the final decision is left to the farmers,” said Sivakumar. However, slow and delayed procurement from farmers is resulting in quality deterioration and loss of income to the farming community. It is important that the crop value chain operations — including procurement, logistics, manufacturing, export shipment and domestic sales of finished goods — operate simultaneously to ensure remunerative prices to the farming community, he observed.

SARSCOV2 – Vog Tackles the Situation

he VOG Consortium immediately rose to the challenge of the public health emergency in Italy with intelligence and integrity,

April 2020

without underestimating the relative threats. As well as adopting all the measures recommended by the Government, it has taken

Logistics constraints Sivakumar said there are constraints in moving wheat supplies to atta factories across State borders due to paucity of trucks. “Shortage of labour for loading and unloading operations is also a bottleneck at the moment,” he said. “We are trying to optimise the dispatches by leveraging other modes of transportation such as rail and coastal route wherever possible,” he said.

movement has been severely impacted together with the challenge of shortage of manpower in food factories. We believe it will take a few more days for the entire ecosystem and processes to be streamlined for the movement of essential goods,” he added.

Manufacturing and delivery At the food processing level, ITC has been working closely with State authorities and local administration to streamline the availability of agri raw materials to ensure uninterrupted manufacturing and distribution of products. “While we have progressively obtained permissions in some States, the availability of trucks continues to be the biggest challenge at the moment,” said Sivakumar. “Inter-State and local truck

Extension services ITC is leveraging mobile technologies such as e-Choupal 4.0 and its local field staff to ensure continuity in farming. The aim is to hand-hold farmers on best practices. “For example, in Andhra Pradesh, ITC field staff are supporting farmers in the adoption of farmer friendly foldable chilli dryers while ensuring social distancing,” Sivakumar said. “The new technology ensures faster drying (saves 30 per cent time vis-à-vis the traditional way of drying), besides improving quality and preventing foreign material contamination,” he said.

additional actions to combat infection, to protect the health of employees, producers and the community at large. While on the one hand logistics become more problematical and working processes more complex in order to keep staff safe, on the other demand from the market is high: months of

March, April and May are indeed very important months for the apple sales season. The Consortium is responding to the increased demand through rational planning of deliveries. As the European Food Safety Authority has reported, research does not indicate food as a source of infection.

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April 2020

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