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AgriBusiness & Food Industry w March 2013

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India Foodex 2013

India’s Elite Food Event to See Huge Global Participation

GrainTech India 2013

T. V. Satyanarayanan & Anwar huda

Meat Conference

fruits & vegetables

Global Fruits

EU is world’s leading import region for fresh fruits

Offers Wide & Open Opportunities for overseas Grain Technology SUPPLIERS

l Siba International l Hind Agro Industries Ltd. l Al-Limrah Frozen Foods Pvt. Ltd. l M K Overseas l Surya Food & Agro Ltd. l Latini Hohberger Dhimantec (USA) Inc. l Annapurna Universal Foods Pvt. Ltd. l Paras Spices Pvt. Ltd. l Anmol Bakers Pvt. Ltd. l Khosla Agro Overseas l Privasia Trading l Goel International Pvt. Ltd. l Amar Singh Chawal Wala l Deva Singh Sham Singh l Kochar Overseas Pvt. Ltd. l Veer Overseas Limited l Kashmiri Lal Sat pal l Aroma Agrotech Pvt. Ltd. l Sifter International l Dhiman Systems (India) Ltd. l Aricha Trading Co. Ltd.

Grain Milling Solutions' Demand Rises in India

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OUT!

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rice industry

Global Rice: Production Once Again To Outpace Consumption: FAO

Kohinoor Foods is committed to

APEDA & FICCI Meat Conference

Focus on Meeting Challenges to Capture more Export Markets Bureau Report

Agri Affairs

Horticulture

The Growth Driver of Indian Agriculture sector Sanjeev Chopra

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Amit Arora 86

AgriBusiness & Food Industry w March 2013

Honey industry

Indian Honey

Market Forecast 2013 – A. K. Singh, President & CEO, Little Bee Impex

NEWS 92 94 96 100 102 103 104

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Retail Corporate Food & Beverages Health & Nutrition Commodity Marine Dairy

AgriBusiness & Food Industry w March 2013

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Chief Editor: S. Jafar Naqvi Consulting Editors: T.V. Satyanarayanan K Dharmarajan Chief Co-ordinator: M.B. Naqvi Editorial Co-ordinator: Syed M K News Editor: Anwar Huda General Manager: Lalitha V. Rajan

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mall is beautiful”, so goes the saying; but it is not true always. Less so in agribusiness, where small and fragmented farms face innumerable problems as they are not economically efficient The issue was highlighted when the National Advisory Council discussed recently a draft report of its Working Group seeking to augment incomes of small and marginal farmers by organizing them into collectives or cooperatives or extending to them the benefits of private trade outside the Mandis. The thrust of the Group’s recommendations is on facilitating economies of scale, which has added relevance even as FDI in multi-brand retail has got the nod. The draft report, on “Enhancing Farm Income for Small Holders through Market Integration” prepared by the panel headed by an NGO, has many useful suggestions to offer to improve the lot of small and marginal farmers, who form 87 per cent of the Indian farming community. The report urges the government to muster enough resources to encourage about one crore of these farmers into collectives or cooperatives or to form member-owned Farmer Producer Organisations (FPO) in the ongoing 12th Plan period for raising their income levels. Among other suggestions are: interest subventions on loans for at least five years for the proposed FPOs and their inclusion under Agriculture Produce Marketing Committee (APMC) Act to enable direct purchase from producers outside the Mandis. They should also be exempt from APMC cess when trade is conducted outside the Mandi and be provided with single licence for farm input businesses like seeds, fertilizers and pesticides, suggests the report. Besides, the government should prioritize procurement from these farmers grouped under FPOs, and this should be applicable to government and private sector procurement, including FDI in retail. Simultaneously, government should initiate policies to strengthen the financial axis of FPOs. Certainly, the concept of collective or cooperative farming is not new, and experience shows that wherever it is practiced efficiently, the results have been impressive. This is true not only in this country, where the cooperative way of farming like “Phud” system in Kolhapur or “Gongchi” system in Andhra Pradesh has been prevalent for over 100 years, but also in other parts of the developing world. Many African countries have reaped benefits in recent years by establishing small farms cooperatives. Agricultural cooperatives in Ethiopia, commercial agricultural cooperatives in South Africa and the Millennium Villages Project in Ruhiira in Uganda are some of the outstanding examples. In India, the success stories of cooperatives are a legion. In a recent address to a farm scientists’ meet, former President Dr APJ Abdul Kalam, commended the merits of cooperative farming and listed a few winners, including Paliganj farmers of Bihar who are now keen to create a new model of technology-based cooperative system for agriculture, Chikku Fruit Cooperative in Maharashtra and a farmer-owned producer company called Dharmapuri Precision Farmers’ Agro Services Ltd in Tamil Nadu having 166 farmers are shareholders. Another recent example, reported in the news media is the Tamil Nadu Women’s Collective network, that ensures some measure of food security for the families of 200 landless women members. One can go on and on; virtually each state can pride itself with having cooperatives or collectives bringing prosperity to their members. The trail of success goes to show that through proper leadership, aided by technological and marketing support, cooperative power can turn small farmers into a potent force, capable of changing the face of Indian agriculture. Comments are welcome at: mediatoday@vsnl.com

Editor : S. Jafar Naqvi

Vol 10....... Issue 3 ...... March 2013

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 w March 2013

Meat Conference

APEDA & FICCI Meat Conference

Focus on Meeting Challenges to Capture more Export Markets Bureau Report

APEDA,

in association with FICCI, recently organized an Interactive Workshop on “Export of Buffalo Meat and Meat Products from India”, in Lucknow (India). Senior Officials from State Government Department of Animal Husbandry, Municipal Corporations, UP Export Promotion Bureau, Institutes such as Indian Veterinary Research Institute IVRIIzzatnagar, Export Inspection Council EIC, and others attended the Workshop and interacted with the delegates. Main Speakers The main speakers were Ms Mallika Verma, Joint Director, Food Processing, FICCI, Dr Tarun Bajaj, General Manager,

APEDA, D.B. Sabharwall, Secretary General, AIMLEA and General Manager with Allana Industries, Dr J K Pandey, Joint Director, Animal Husbandry, Govt. of UP, Dr Kandeepan. G, Scientist, Division of Livestock Products Technology, Indian Veterinary Research Institute, and Dr S K Ranjhan, Hind Agro Ltd. Objective The objective of the interactive session with exporters was to identify and discuss issues that are perceived as hampering expeditious growth of exports of Buffalo Meat and Meat Products from India. During the workshop exporters expanded their awareness on potential for export, import regulations of select countries; role

AgriBusiness & Food Industry w March 2013

of testing, certification; role of APEDA, and other government initiatives such as the market Development; assistance and were sensitized about the investment opportunities in infrastructure and R&D. Welcome Address Mallika Verma, in her Welcome Address, briefed the audience about the current status of buffalo meat and meat products in the country. Talking highly about the role of buffalo meat, she said, “More than 50% of buffalo meat is exported and the exports saw a jump of 87% in the last FY. UP, Andhra Pradesh, Maharashtra and Punjab are the major states producing buffalo meat. On behalf of industry, a request was

Meat Conference Comparing India with another big player China, Tarun Bajaj said “Of late, India and China have shown potential to become major meat producers and exporters. India Pioneered buffalo meat in 1969 and is now the 3rd largest bovine meat exporting country with meat production to the tune of 2.9 M Mt in 2009. India could face tough challenge from China where the meat production is to the tune of 6.1 M mt. However, it is also estimated that China will import 500,000 mts of meat by 2015” made to APEDA, Ministry of Commerce for inclusion of buffalo meat in the MOC’s transport assistance for development of new markets, especially those in Africa and CIS countries. It was also requested that the sales tax imposed on meat products be exempted. This would give a fillip to value addition in the sector”. China: A Tough Challenge Dr. Tarun Bajaj, in his presentation, highlighted the characteristics of World Meat Production. He said the highest growth in meat production in the last decade has been in the area of poultry meat followed by pork. Comparing India with another big player China, he said “Of late, India and China have shown potential to become major meat producers and exporters. India Pioneered buffalo meat in 1969 and is now the 3rd largest bovine meat exporting country with meat production to the tune of 2.9 M Mt in 2009. India could face tough challenge from China where the meat production is to the tune of 6.1 M mt. However, it is also estimated that China will import 500,000 mts of meat by 2015”. He provided the details of the country’s Meat Export Policy. Export of Buffalo, Sheep and Goat meat is allowed with certain restrictions, while cow meat (beef) is totally banned. Only de-boned, de-landed meat export is permitted. While the Standards for Meat were notified as early as 1992, HACCP compliance is mandatory for all meat exporters. Exporters have to register with APEDA and a Health certificate is required from the state Animal Health Department. Target: 9% growth rate D B Sabharwall, Secretary General, AIMLEA and General Manager with Allana Industries, India’s largest meat exporter, said that buffalo population in India has shown an increasing trend despite the slaughter rate of 9.7 per cent. India produces 43 per cent of world buffalo meat production. The Indian meat production annual growth rate is 4.1 per cent during the last 8 years. However to address the issue of protein requirement, we need to grow at 9 per cent. About massive growth in poultry, he

China holds a lot of potential for India’s buffalo meat: Asit Tripathy Processed Food Products Export Development Authority (Apeda), the Government’s body for promoting farm exports.

ndia is lobbying hard to sell buffalo meat and oilmeal to China encouraged by its success in convincing its neighbour to buy Basmati rice from the country. New Delhi has raised the red flag over the huge trade imbalance in Beijing’s favour and has said that buying more farm products from the country by removing ‘unnecessary’ quality restrictions is one of the ways to bridge it. “We are seriously pushing China to start buying buffalo meat and tobacco from us and also resume import of oilmeal. Expediting the formalities for Basmati imports is also something we are stressing on so that exports can start,” Commerce Ministry Joint Secretary Asit Tripathy said. China’s trade surplus with India was nearly $40 billion in 2011-12 and touched $29 in the first eight months of the current fiscal. “There is little we can do in terms of limiting Chinese imports as Indian industry needs Chinese equipment and machinery. We can try to lessen the deficit by selling more of our products, especially agriculture produce and pharmaceuticals,” another official said. The negotiations on farm products are being carried out by the Ministry together with the Agriculture &

Huge Potentials “China holds a lot of potential for buffalo meat as it is a big consumer and our exports can touch $1 billion in the first two years itself,” Tripathy, who is also the Chairman of Apeda, said. India is amongst the three largest exporters of bovine meat that includes Australia and Brazil and is slated to take the top spot in 2013 with a 30 per cent growth from 1.66 million tonnes to 2.15 million tonnes, according to industry estimates. The US Department of Agriculture had predicted that India will be the top bovine meat exporter in 2012 itself, but the comparable figures are yet to come. Chemical Issues China does not import buffalo meat from India as it is on the list of countries afflicted by the foot and mouth disease. Indian officials argue that production and processing of meat takes place following exact norms prescribed by the international quality prescriber OIE and there is no consumer risk what-so-ever. India also wants China to resume imports of oilmeal that was suspended last year as traces of a chemical found in the green dye in sacks were detected by authorities. Indian exporters have now agreed to send their shipments in plastic bags. China has also been discussing norms to import tobacco from India for the past couple of years but has not finalised things yet. “We hope to move on to other farm products, once we start exporting the ones with greatest potential,” the official said.

AgriBusiness & Food Industry w March 2013

Meat Conference

said, “Indian poultry has phenomenal growth, with 33 fold increases in broiler production from the base year 1961 to 2009. We are 5th in the world in poultry meat production with 0.68 MMT. India has 3600 small and big municipal and rural abattoirs, out of which, 2638 are registered. Old and traditional on the floor slaughter practices are followed.” “Government is undertaking initiatives for upgrading and renovating abattoirs in all the metros and many other cities. Public-private partnership (PPP) is also being encouraged. More interest is shown to install Rendering plants in view of protest by green & environmental activists.” Buffalo: The Black Gold “In spite of India having huge livestock population the export of meat and meat products is as low as 1% of the world meat exports. Buffalo meat comprises for more than 95% total meat exports, which appropriately makes, Buffalo as “Black Gold” to Indian farmers,” said Sabharwall. U.P. : Buffalo State Dr J K Pandey made a presentation on Buffalo Meat Production in U.P. and its potentials. He said, “U. P. is number one in Buffalo Population. It has nearly 26 % of country’s buffalo population as out of the 9 Agro-climatic Zones, 7 are favorable for Buffalo Production. From 2003 to 2007, there was 12.27% growth in buffalo population.” In UP Buffalo contribute more than 68% in Milk Production and 73% in meat production. Buffalo meat is used for local consumption and export from the state, he added. Talking about stringent regulations, he said, “There are several local laws and regulations regarding slaughter, transport

and sale of meat. These are the U.P. Nagar Nigam Adhiniyam, U.P. Municipal Corporation Act, Kshetra Panchayat & Kshetra Samiti Adhiniyam.” Potentials for Value-addition Dr Kandeepan. G made a presentation on “Pprocessing of buffalo meat into value added products”. Lamenting the lack of enough processing, he said, “It is quiet disheartening to note that only 2% of the meat is processed in India. The remaining meat is sold in fresh or frozen form. This is despite the fact that the meat form Indian Buffaloes has high nutritive and sensory quality. it has high protein and at the same time, low calorie and cholesterol. It is rich in essential amino acids and fatty acids”. Talking about the huge potentials of value addition, he said, “The meat form buffaloes is appropriate for processing into value added products on account of its physic chemical properties like ph value; high moisture content (75%) high protein content (20-21%) of which salt soluble protein is nearly 6%, low fat content (2.6 to 4.0 %), high water holding capacity (13 ml/100gm) and high emulsifying capacity etc.” With the help of photographs, he demonstrated the various equipment used for processing and the various meat products that the institute has helped develop good quality meat products that can be used in snacks and burgers and are more palatable. Some such products are: Patties, Sausages, Loaves, Kebabs, Meat blocks, Nuggets, Rolls, and Liver loaf. His institute has also developed products such as ready to eat enrobed meat chunks, designer sausages, hurdle tech meat pickle, meat chips. “Technology for these products can be easily adopted by small and medium level entrepreneurs,” he said.

AgriBusiness & Food Industry w March 2013

Control of infectious diseases Dr S K Ranjhan, in his address, stated that there are five major stakeholders in any food business: Farmer, State Animal Husbandry department, Entrepreneur, APEDA, and Consumer – Importer country. He stressed that backward linkages are important for successfully running a meat processing plant. He also highlighted the need for integrated meat plants and captive buffalo farms for each unit. Talking about animal health, he requested the state government to take steps to expand capacity for vaccination as it is abysmally low compared to demand. “Control of infectious diseases and declaration of disease-free zones with vaccinations will give a substantial fillip to exports,” he said. Challenges: l Effective utilization and value addition of the abattoir by products. l Relevant amendments to the state government laws for male calf slaughter. l Need to upgrade abattoirs at all levels. l More focus to be given to Disease Free Zones around meat export factories / animal markets & to improve the Animal Health, Disease Control & Surveillance & Notifications system. l The task for increased Animal health management and abattoir/meat processing infrastructure creation across India needs to be taken up jointly by Govt. & private sector. Suggestions At the seminar, several doable suggestions were made. Some are: *APEDA, Ministry of Commerce should include buffalo meat in the MOC’s Scheme for transport assistance for development of new markets, especially those in Africa and CIS countries. *State Governments are requested that the sales tax imposed on meat products be exempted. This would give a fillip to value addition in the sector. * Indian exporters should focus on exporting value-added products such as Kalbassa, Mortadella, sausages, Shawarma, burger patties, satay, basterma and salamis. *The Central Government’s FMDControl Programme (FMD-CP) covering 54 districts across the country implemented since August 2003 needs to be expeditiously expanded to other districts to make India FMD free, and duly recognized by the OIE, in a time bound manner. n

India at Gulfood

List of Participants at the APEDA Pavilion in Gulfood 2013 Khushi Foods Ltd. Mr. Rajendrakumar Babadin Sharma 106-107, Dheeraj Avenue, Near Jmc House, Ambavadi, Ahmedabad 380006 (India) Tel: 91-79-26403798, Fax: 91-79-40021967 E-mail: export@khushifoods.com Basic India Ltd. 1103 Nirmal Tower, 26 Barakhamba Road, Delhi, 110001 (India) E-mail: basicindia@basicindialtd.com ABC Fruits Mr. N.K. Anand B-130 Subhadra Colony, Delhi - 110035 India, Tel: 91-11-23652996 Mobile: 91-9810826228 E-mail: nkanand@asepticfruits.net All India Rice Exporters Association Mr.Rajan Sundresan 81/2 Adchini, Sri Aurobindo Marg New Delhi - 110017 India Mobile: 989989324 E-mail: airea.delhi@gmail.com Navkar Processors Mr. Pravin Choudhary Plot no. 239, South Old Bagadganj, Small Factory Area, Nagpur - 440 008 India, Tel: 91 712 2778824 / 6457388 Fax: 91 712 2721555 Mobile: 91 92253 61403 E-mail: bhaskaran@nakodas.com Aaksh Beverages Pvt. Ltd. 242, Powai Plaza, Hiranandani, Powai, Mumbai - 400076 (India) Tel: 91 22 42152244 Fax: 91 22 42152245 Mobile: 91 9820040613 E-mail: foods@aaksh.com; kshitij@ aaksh.com

Cherish Foods Impex 701-A D- Mall, 7th Floor, Netaji Subhash Place, Pitam Pura, Delhi - 110034 (India), Tel: 47257777 E-mail: cherishfoodsimpex@gmail.com Swathy Enterprises Mr. Sankaraiyer Subramanian 2156, Kollam 691013, Kerala (India) Tel: 474 2743965, Fax: 474 2764030 Mobile: 9447798048 E-mail: santhosh@indiancashews.in Sona Impex Mr. Kumar Gurnani 7, Ahiya, 16th Road, Opp. Rotary Park, Santacruz West, Mumbai - 400054 (India), Tel: 91 22 26461774 Fax: 91 22 26461773 Mobile: 91 9820806705 E-mail: pawan@sonaimpex.com Shreeji Protein Mr. Aravindkumar Mohanbhai New Kumbharwada, Mahuva, Dist: Bhavangar, Gujarat - 364290 (India) Mobile: 9898878568 E-mail: sales1@shreejiprotein.com Snack Food Inc Mr. Suketu Shah 14/7, Shakuntala Mahal, Postal Colony, Chembur, Mumbai - 400071 (India) Mobile: 9820042558 E-mail: info@snackfoodinc.com; suketus44@gmail.com Naranjan Rice Exports Pvt. Ltd. Amanatpur Road, Suranussi, P.O. Nussi, Janandhar, Punjab - 144004 (India), E-mail: nre@naranjan.com

Dogra Rice Mill Batala Road, Qadian, Punjab E-mail: mohitgst24@gmail.com

Hemkunt Speciality Cones Pvt. Ltd. Mr. H.S. Gujral 1964, MIE, Bahadur Garh, Haryana, India, Tel: 91 1276 268064 Fax: 91 1276 267064 Mobile: 91 9811035776 E-mail: hemkuntcones@yahoo.com

ALM Industries Limited Mr. Tasleem Kamal 460, Harora Ahtmal Dehradun Road, Saharanpur, U.P. - 247001 (India) Tel: 0132- 3250514, Mobile: 9012190124 E-mail: mwkhan86@rediffmail.com

MG Worldwide Pvt. Ltd. Ms. Gauri Bhatnagar 1004, 10th floor, Hemkunt Tower, 98 Nehru Place, New Delhi - 110019 (India), Tel: +91 11 26412284 Fax: +91 11 26412287 E-mail: info@mgriceindia.com

Viral International Mr. Viral Patel 1st Floor, 331, Market Yard, Gultekdi, Pune - 411037 (India) Tel: (20) 24270900, Fax: (20) 24271247 Mobile: +91 9763866464 E-mail: viralpatel@viralspices.com P.K Overseas Pvt. Ltd. 4039/3, Naya Bazar, Lahori Gate Chowk, Delhi -110006 (India) Tel.: +91-11-23922700 E-mail: info@pkoverseas.com The Malt Company (India) Pvt. Ltd. Mr. Vikas Jain 1101, 11th floor, Welldone Tech Park Tower D, Sohna Road, Sector 48, Gurgaon, Haryana - 122001 (India) Mobile: 9810019175 E-mail: vikas@maltcompany.com Pagariya Food Products Pvt. Ltd. Mr. Dheeraj Jain 15/1, 3rd cross, Kasturbanagar Mysore Road, Bangalore - 560 026 (India), Tel: 91 80 26753299 Fax: 91 80 26753417 Mobile: 91 9844008757 E-mail: accounts.asst@kwalityspices.com Goel International Pvt. Ltd. Sonkra Road, Taraori, Karnal, Haryana 132116 (India) Tel: 242244 E-mail: goelintl@hotmail.com Taj Frozen Foods India Ltd. Mr. Ajay Palkar 209, Shiva Estate, Lake Road, Bhandup (w) Mumbai (India) E-mail: sales@tajfoods.net Navjyot International Trading Pvt. Ltd. Mr. Atul More 307, Balarama Building, Bandra Kurla complex, Mumbai - 400051 (India) Tel: 26583877 E-mail: agro@navjyotintl.com; traffic@navjyotintl.com Usher Agro Limited 422, Laxmi Plaza New Link Road, Andheri (W), Mumbai (India) E-mail: swati.maheshwari@usheragro. com

AgriBusiness & Food Industry w March 2013

India at Gulfood

Safechem Industries Mr. Aniruddha Chatterjee 17, Crooked Lane, Kolkata - 700 069 (India), Tel: 91 33 2243 6320, 2248 9498 Fax: 91 33 2243 6428 Mobile: 91 9903956458 E-mail: ani.c@safed.in; sujit@safed.in M&M Cocoa Products Pvt. Ltd. Mr. D. Durga Prasad Plot No. 15, Apparel Part cum Industrial Area, Katha Batoli, Dist. Solan,Baddi, Himachal Pradesh - 173205 (India) Mobile: 9396333303 E-mail: dprasad@mmcocoa.com Tulya Beverages Private Limited Mr. R. Balakrishnan Naranamangalam Village, Kunnam Taluk, Perambalur, Chennai - 621 126 (India), Tel: 91 8012519011 Mobile: 91 9543461617 E-mail: ceo@tulyabeverages.com Veer Overseas Ltd. 2637, 2nd Floor, Naya Bazar, Delhi 110006 (India), Tel: +91-11-23984263 E-mail: veer.overseas@yahoo.com The Cashew Export Promotion Council of India Ms. Sree Rajmohan Cashew Bhavan, Mundakkal, Kollam/ Kerala - 691001 (India) Tel: 91 474 6444414, Fax: 91 474 2742704 Mobile: 91 94465 80703 E-mail: cepci@cashewindia.org /cepci. kollam@cashewindia.org TKM Agro Ltd. T.K. Shahal Hassan Musaliar 113/3 Mathapur Road, Kaniyur, Coimbatore, Tamil Nadu - 641659 (India), Tel: 91-421-2334235 Fax: 91-421-2333926 Mobile: 91-95674 99901 E-mail: tkmagrolimited@vsnl.net; info@tkmagro.com A.S. Cashew Exporters Mr. S.Muhammed Nowfal K.P.Road, Kilikolloor P.O. , Kollam-4, Kerala, K.P.Road, Kilikolloor P.O. , Kollam-4, Kerala Kollam / Kerala 691004 ( India), Tel: 91-474-2715332 Fax: 91-474-2712203 Mobile: 91-9847070874 E-mail: nowfalsalam1@gmail.com

Chandra Cashew Imports & Exports Pvt. Ltd. Mr. R.S. Dinesh Chandran Kottamkara, Chandanathope, P.O. Kollam / Kerala - 691014 (India) Tel: 91 474 2710234, Fax: 91 474 2714533 Mobile: 91 98950 81781 E-mail: chandracashew@gmail.com M. Madhavaraya Prabhu Mr. M. Tukaram Prabhu 4-174, Jeevotham, Muduperar, Mangalore/Karnataka - 574166 (India) Tel: 91 824 2258807, Fax: 91 824 2258427 Mobile: 91 94484 57897 E-mail: mmpcashew@sify.com C. Ramakrishna Padayatchi Mr. C.R. Selvamani A. Melmampattu Post, Kadampuliyur, S.A.V. Dist. Panruti/T.Nadu - 607103 (India), Tel: 91 4142 242429 Fax: 91 4142 241956 Mobile: 91 98423 44940 E-mail: crp_cashews@yahoo.com Fairways Trading Co Mr. Rohit Bajaj Majith Mandi, Amritsar, Punjab 143001 (India) Tel: 91 183 2544110 Fax: 91 183 2542688 Mobile: 91 98780 50705 E-mail: bajaj@tulsi.biz The Punjab State Co-op. Supply & Marketing Federation Ltd. Dr. Karamjeet Singh Sra Markfed House, Plot No.4, Sector 35-B, Chandigarh - 160022 (India) Tel: 0172 24332374 E-mail: markfedexports@rediffmail.com Bright Star Global Trading Corpn Mr. P.V. Bright KC-X/509, Asramam Gardens, Asramam P.O. Kollam / Kerala 691002 (India) Tel: 91 474 6000351 Fax: 91 474 2731141 Mobile: 91 98470 70017 E-mail: pvbright@gmail.com New Bharat Rice Mills Khasra No. 1164, Amritsar Road, Batala, Punjab - 143505 (India) Tel: 243141 E-mail: tajmahalrice@vsnl.com

AgriBusiness & Food Industry w March 2013

Shah Nanji Nagsi Exports Pvt. Ltd. Itwari, Anaj Bazar, Nagpur, Mumbai E-mail: nanji_ngp@hotmail.com Brbee Products Pvt. Ltd. Mr. Praveen Kumar 310-312, 3rd Floor, Ansal Vikas Deep Building, Distt. Centre Laxmi Nagar, Vikas Marg, Delhi - 110092 (India) Tel: 91 11 43001861-63 Fax: 91 11 22518792 Mobile: 91 8826466665 E-mail: info@brbee.co.in Al-Hamd Agro Food Products Pvt. Ltd. Mr. Mohd. Tauseef Sarai Miyan, Delhi Gate, Aligarh 202001 (India) Mobile: 9837601439 E-mail: info@alhamdagro.com JKH Exports Mr.Anil Goel B-62, APMC Complex, Phase 2, Market 1, Sector-19, Vashi, Navi Mumbai 400705 (India) Tel: 022 2784 2239 Fax: 022 2783 2935 Mobile: 91 9324763007 E-mail: jkhadmn2@jkhexports.com Sarveshwar Overseas Village Seora Near Kunjwanibye Pass, Jammu - 181132 (India) Tel: 2481954 E-mail: info@sarveshwarrice.com Charbhuja Industries (P) Ltd. Vimal Tolia 502, Abhay Steel House, Baroda Street, Mumbai - 400 009 (India) Tel: 022-30080708 /30080730 Fax: 022-30080718 Mobile: 9323010200 E-mail: vimal.tolia@charbhuja.net BNK Corporation Bindesh N Shah 504/505 Dholakia Aprt, Mahakali Caves Road, Andheri (East) Mumbai - 400093 (India) Tel: 022-27636567 / 27636692 Fax: 022-27636692 Mobile: 9821516663 , 9821400000 E-mail: bindesh@shahmail.in Best Foods Limited Vill. Norta, Tehsil Indri, Karnal, Haryana E-mail: bestbasmati@yahoo.com

India at Gulfood

Mulji Devshi Export Pvt. Ltd. Mr. Nilesh D Vira 116, Keshavji Naik Road, Mulji Devshi Building, Mumbai - 400009 (India) Tel: +91 22 40040570 Fax: +91 22 23738480 Mobile: 9869914178 E-mail: info@muljidevshi.com Pioneer Industries Limited Chhoti Nehar, Malakpur, Pathankot, Punjab - 145025 (India) Tel: 0186-2245352 Mobile: 9915021834 E-mail: arvindgupta@ pioneerindustries.org Global Confectionery & Groceries Pvt. Ltd. Mr. Suresh Bherwani 1st Floor, Universal Paradise, Nanda Patkar Road, Opp. Nand Kumar Hsg. Soc.Ville Parle East Mumbai - 400057 (India), Mobile: 91-9819921453 E-mail: globalenergyfoods@gmail.com Daily Foods (India) Mr. Rakesh Kumar 9, Park Area, Gangeshwardham Road, Karol Bagh, New Delhi - 110005 (India) Tel: 2361 5252 Mobile: 9818453838 E-mail: rakesh@rajatrichamilk.com Premji Ghellabhai & Co Mr. Sanjay Shah 376, Sanjay Building, 2nd Floor, Kanji Shivji Jain Dharmasthanak Marg, Matunga (C.R), Mumbai - 400019 (India) E-mail: premji@bom5.vsnl.net.in; info@premji.co.in Trimax International Mr. Vinod Kumar 278 Rajdhani Enclave, Britania Rani Bagh Road, PitamPura, New Delhi 110034 (India) E-mail: +91-11-47999841 Mobile: +91-9810149841 E-mail: info@oasisrice.com Sulson Overseas Pvt. Ltd. Mr. Rajesh Kumar WZ-34, Manohar Park, East Punjabi Bagh, New Delhi - 110026 (India) Tel: +91 11 28316270 Fax: +91 11 28316273 Mobile: +91 9811995353 E-mail: sulsonoverseas@yahoo.com

Aashray Incorporation Chirag Sangani 710 - 711, Aalap - B, Limda Chowk, Gujarat, Rajkot - 360001 (India) E-mail: chirag@aashrayimpex.com

National Meat & Poultry Processing Board Mr. Anuradha Prasad Ministry of Food Processing Industries, Panchsheel Bhavan, August Kranti Marg, New Delhi - 110016 (India) Tel: +91-11-26492475, Fax: +91-11-26497641, E-mail: ajitji@nic.in

A G Exports Mr. Syed Nasir Ahmed Cathadnaz Road, Chennai (India) Tel: 044-28113892 E-mail: agsyed@airtelmail.in Vinod Rice Mill Pvt. Ltd. Mr. Madan Gheek 21/18-19, Sanoth Road, Holambi Kallan, Delhi - 110082 (India) Tel: 91 40900000, Fax: 91 11 40900001 Mobile: 91 9999999587 E-mail:vinodricemill@yahoo.co.in Shri Ambica International Food Company Pvt. Ltd. 3949-B, Naya Bazar, Delhi - 110006 (India), E-mail: armbasmati@gmail.com Green Village Agros (P) Ltd Near Police Station Railway Road Vill.-Dodwa , Taraori, Haryana, India E-mail: akg1202@hotmail.com Jadli Foods (India) Pvt. Ltd. Mr. R. N. Jadli 219 R.G. Complex No. 2, Plot No.5, Sector â&#x20AC;&#x201C; 14, Rohini, Delhi - 110 085 (India), Tel: 91 11 27555459 E-mail: info@jadlifoods.net Allanasons Ltd. Allana House, Allana Road, Colaba Mumbai - 400001 (India) E-mail: allanasons@allana.com APEDA Mr. Tarun Bajaj 3rd Floor, NCUI Building, 3, SIRI institutional Area, August Kranti Marg, New Delhi - 110016 (India) Tel: +91-11-26526186 Fax: +91-11-26526187 Mobile: +91-9811299852 E-mail: gmmpd@apeda.gov.in B Natha Singh Karam Singh Pvt. Ltd. Mr. R C Puri 4124, 1st Floor, Naya Bazar, Delhi 110006 (India) Tel: 011-23951257 Fax: 011-23921039 E-mail: bnk@doubleelephant.com

Ram Dev Rice Pvt. Ltd. Near Village Madanpur, G.T. Road, Karnal, Haryana - 132001 (India) E-mail: rdrmills@hotmail.com Indian Foodtech Limited SH-4 Vardhman Grand Plaza, Sector-3, Rohini, Delhi, E-mail: info@ruhils.in Anna Exports Mr. M.A. Siddiqui 5143, Quresh Nagar, Sadar Bazar, Delhi - 10006 (India) Tel: 32017711, Fax: 23610946 E-mail: annaexports@yahoo.com Shree Jagdamba Agrico Exports (P) Ltd Arian Pura Road, Gharaunda, Karnal, Haryana - 132114 (India) Tel: 250197 E-mail: shreejagdambaexports@gmail. com Shree Shubham Logistics Limited Mr. Shubhendra Kumar Bafna E-4, Kalpataru Theatres, Shastri Nagar, Rajasthan, Tel: 91 291 5157008, Fax: 91 9587018019 E-mail: madhukar.bhansali@ssll.in Aroma Agrotech Pvt. Ltd. 145, 1st Floor, New Grain Market, Gharaunda, Haryana - 132114 (India) Tel: 250339 E-mail: aromaagro@yahoo.com Al-Khair Exports Mr. Mohd. Suhail 252A/2 Shahpur Jat, Opp. Panchsheel Commercial Complex, New Delhi (India), Tel: 41752055, Mobile: 9818001243 E-mail: alkhairexports@hotmail.com Indian Treat Pvt. Ltd. L-11, APMC Market-II Phase-II, Dana Market, Sec-19, Vashi, Maharashtra 400705 (India) E-mail: indiantreat.in@gmail.com

AgriBusiness & Food Industry w March 2013

Profile

AgriBusiness & Food Industry w March 2013

Profile

AgriBusiness & Food Industry w March 2013

Profile

AgriBusiness & Food Industry w March 2013

Profile

M. K. Overseas

Stands for Quality & Safety from Farm to Fork MK

overseas has been exporting products to south east Asian countries, CIS countries, Fare East and traditional markets in the Middle East. The major importing countries includes Angola, Bahrain, Egypt, Georgia, Iraq, Jordan, Malaysia, Oman, Qatar, Saudi Arabia, South Africa, UAE, Vietnam, West Africa, Yemen. The company has a state – of –the – art integrated Abattoir is a HACCP and

ISO : 9000 certified unit. It houses a world – class German slaughter line from BASSNS a rendering plant, a well equipped laboratory for in-house quality control, an effluent treatment plant and a beautiful landscape within it’s boundaries. The livestock is sourced from the state of Punjab, which is one the leading state of India in agriculture and animal husbandry. As a result the region offers the

AgriBusiness & Food Industry w March 2013

best livestock sources from this state, brought up on natural pastures and fodder. The animals are free from hormonal treatment and produce clean goods quality meat. The Abattoir has a lairage which can accommodate about 3000 buffaloes and about 1500 are slaughtered everyday. Before slaughter each buffalo is subjected to anti-mortem examination by qualified veterinarians authorized by the Animal Husbandry Department of the State Government. The slaughtering is done strictly as per the Islamic method of Halal. The slaughtered animals are then subjected to rigorous post mortem examination by qualified veterinarians authorized by the Animal Husbandry Department of the State Government. Major lymph nodes are inspected and the carcasses are then cut into two equal portions vertically and chilled at 2 Degree Celsius 24 hours till the PH drops below 6. Air-conditioned de-boning, fresh packing and frozen packing facilities have been built where a temperature of 12 Degree Celsius is ensured during various stages of these processes. Disinfected stainless steel knives are used for de-boning. The workers are trained to handle the meat hygienically at all stages to insured that a good product is produced. Once the de-boning process is complete the meat is then packed in food grade poly bags and sent for freezing at about -40 Degree Celsius for

Chaudhary Mohd. Kamil Qureshi Chairman

12 hours in blast freezers or to the plate freezers for instant freezing. After freezing each unit is packed in a carton and shrink – wraped without using any metal packing material. Each carton is subjected to metal detection through a metal detector. The packed meat is then stored at a temperature of -18 Degree Celsius till it is finally loaded for exports. The total capacity of the cold storage is about 3000 tons. The product is dispatched to several destinations of the importing countries in refer containers via sea as well as aerial routes in a manner that the quality is ensured all along the chain. MK Overseas has achieved a lot over the years. It has emerged as India's leading buffalo meat exporter to South East Asian countries. Its meat importing countries are growing rapidly. It has won a number of awards for emerging as the leading exporter of buffalo meat. E-mail: mko.nadeem@gmail.com mko.group@gmail.com Web.: www.mkoverseas.in

AgriBusiness & Food Industry w March 2013

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Indiaâ&#x20AC;&#x2122;s Elite Food Event to See Huge Global Participation

ndia is the world's second largest producer of food next to China but accounts for less than 1.5% of International Food Trade. The Indian Food Sector is poised for a rapid growth and has potential to become reliable outsourcing partner in the Food Industry given its strength in primary Food Sector. The Indian Food brands are now rapidly increasingly finding prime shelf space in the retail chains across US and Europe. Potential Sectors Prominent among the areas waiting to be tapped are canning, packaging, refrigeration for dairy, poultry, fisheries, meat, ready to eat products, cereals and grains, soft drinks consumer product groups like confectionery, chocolates, coco products, soya-based products, mineral water, high protein foods and nutraceuticals, apart from health food and health food supplements, a rapidly rising segment of the food processing industry. Govt. Support Ministry of Food Processing Industries has prepared Vision 2015, targeting an increased level of processing of perishables from 6% to 20%. The Government has also approved proposals for joint ventures, foreign collaboration, industrial licenses and 100% EOUs envisaging an investment of Rs. 19,100 crores (US $ 4.80 billion) during the same period. Out of this, foreign investment is over Rs. 9100 crores(US $ 2.2 billion). FDI in Retail The Government of India has ultimately taken decision to allow 51%

Foreign Direct Investment in multi-brand retails. This decision has been described as a step forward to open the retail sector for world's renowned brands entry in to India. Other Developments The Ministry of Agriculture is aiming to double the production of all food crops through National Food Security Mission, NHM, HMNEHS & NHB and disseminating latest and modern practices of production and post harvest care. On the export front, APEDA is targeting agricultural and processed food exports in the range of Rs.4000-5000 crores (US$ 15 billion) in coming years. Greater use of machinery has, therefore, become necessary in India, where plenty of produce is available for value addition and food processing. As a result, India is emerging as one of the hottest destinations not only for Food Processing and Packaging Machinery & Equipment imports from European and South East

Asian Countries but also for Agro-Food products from international suppliers. In order to introduce latest technological innovations, this event is proved to be an ideal platform to launch your exclusive range of products and services among thousands of Food processors, Machinery suppliers, importers and exporters to throng this expo. India Foodex 2012 "India Foodex 2012" which, besides India, attracted participation from 24 countries and was an excellent expo and received tremendous support from all quarters. Encouraged by overwhelming response, we are organizing 5th Edition of 'India Foodex 2013' during 23 - 25 August 2013 at Bangalore, India. By adding more values to it, concurrently, we are also organizing 4th edition of 'GrainTech India 2013' & 3rd edition of "DairyTech India 2013" to ensure better business for all. www.indiafoodex.com

AgriBusiness & Food Industry w March 2013

Fruits & Vegetables

Global Fruits

EU is world’s leading import region for fresh fruits

ccording to the latest figures from the AMI (agricultural market information service) in Bonn, 860 million tonnes of vegetables (excluding melons) and 730 million tonnes of fruit (including melons) were produced worldwide in 2012. Production figures for both fruit and vegetables have steadily increased over the past few years. The EU is the world’s leading import region for fresh fruit. Preliminary figures for 2012 show imports from third countries as comparable to those from the previous year. The amount of imported pomaceous fruit and bananas, however, showed a decline. The amount of fresh vegetables imported into the EU is less notable, as there is very intense trade of vegetables between the individual EU countries. The US and Russia are also key countries when it comes to the export of fresh fruit and vegetables outside of Europe.

Compared to the previous year, the EU fruit crop decreased by more than 8% in 2012 (that is, 2012/13) to around 34 million tonnes. Lower yields were registered for stone fruit and pomaceous fruit in particular; kiwi and soft fruit crops also saw somewhat lower yields. Even citrus fruit crops were harvested in somewhat lesser quantities. With approximately 61 million tonnes, the EU vegetable harvest in 2012 is likewise expected to show a decrease of around 3% compared to the previous year. According to preliminary figures for 2012, the volume of commercially cultivated fruit in Germany decreased by 7% over the previous year to 1.2 million tonnes, making it one of the smaller harvests of the last decade. Late frosts and unfavourable weather for blossoming made the strongest impact on stone fruit and soft fruit. Apple crops also saw considerable damages in certain regions, but the overall impact was not

AgriBusiness & Food Industry w March 2013

very severe. The smaller apple harvest was also reflected in the somewhat lower stocks (-4%) registered on 1 December. With 3.54 million tonnes (-2%), the commercial production of vegetables did not quite match the favourable results of the previous year, although it well surpassed the low figures of the 2010 harvest. The German import of fresh vegetables already decreased slightly in 2011; the final figures for 2012 are expected to fall below the 3.1 million tonne mark. Spain’s limited ability to supply goods in the spring and autumn of 2012 is especially evident here. The previous year’s slightly lower amount of fresh fruit imports remained comparably steady in 2012 with 4.9 million tonnes. Average consumption With an average of 87.9 kg per household in 2012, German private households purchased nearly 1% less

Fruits & Vegetables fresh fruit than the previous year, but spent at least 3% more on it. Sales of pomaceous fruit and bananas decreased, while sales of grapes, strawberries and melons increased considerably. Apples, bananas and oranges have topped the list of the most-purchased fruit varieties for years, followed by easy peelers (such as clementines) and table grapes. Fresh vegetables (70.3 kg per household) showed a slight decline in sales, although the decrease likewise only amounted to less than 1%. Consumer spending for fresh vegetables increased by a good 4%. Of the more popular vegetable varieties, sweet peppers, carrots and leeks saw a slight increase in sales, while sales for iceberg lettuce, asparagus and cauliflower decreased substantially. Tomatoes, carrots and cucumbers topped the list of fresh vegetables, followed by onions and sweet peppers. In the aftermath of the EHEC crisis, onions and cucumbers changed places in 2011 and the old order had not been restored by the end of 2012.

The top ten favourite fruits and vegetables On average, German private households bought the following amounts of fresh vegetables in 2012: 11.3 kg of tomatoes, 8.4 kg of carrots, 7.3 kg of onions, 7.1 kg of cucumbers, 5.6 kg of sweet peppers, 3 kg of iceberg lettuce, 2.3 kg of cauliflower and asparagus, 1.6 kg of leeks and 1.4 kg of courgettes. In terms of fresh fruit, private households consumed the following on average in 2012: 20 kg of apples, 15.2 kg of bananas, 9.8 kg of oranges, 7 kg of easy peelers, 5.1 kg of grapes, 4.5 kg of melon, 4.5 kg of strawberries, 3.3 kg of nectarines, 3 kg of pears and 2.4 kg of pineapples. PERU: A BIG PLAYER According to information from PromPerú, the Peruvian Export and Tourism Promotion Commission, Peru exported 842,000 tonnes of fresh fruit and vegetables valued at USD 1.1 billion last year. Its main exports were table grapes

(USD 299 million), asparagus (USD 289 million), avocados (USD 164 million), mangos (USD 117 million), bananas (USD 69 million) and citrus fruit (USD 66 million). The country’s key trade partners include the US (36%) and the Netherlands (24%) as well as the UK, Spain and Hong Kong. Peru’s growing significance as an international supplier of fresh fruit and vegetables is evident in part through the following rankings: Peru is the world’s largest exporter of asparagus, holds second place in the export of avocados and third place in the export of organic bananas. The country expects growing sales potential for pomegranates, blueberries, figs and cherimoyas. Peru was the partner country at this year FRUIT LOGISTICA. Peru aims to tap into new markets in Asia and Eastern Europe; to boost its marketing, especially of avocados and citrus fruit, in Europe and the US; and to permanently establish itself in markets with existing trade agreements.

AgriBusiness & Food Industry w March 2013

Fruits & Vegetables

EU T

With an annual export of about eight million tonnes of certified seed potato, the tuber is not only a staple food for the Dutch, but a major contributor to the economy. Netherlands, known for its success in water management, is the world’s third largest agriculture exporter, second biggest agri-food exporter and third largest potato exporter

promotes potato in a big way

he potato has a 12,000-year-old history but an even brighter future as a crop that is set to replace rice as a staple in the Asian rice-consuming countries. It requires less amount of water compared to other basic food products, without compromising the nutrition value. Potato, therefore, is increasingly being promoted, in the genetically modified organism-free European Union (EU), as the foremost solution for meeting the increased food demand for an estimated 6 billion world population by 2030. Dutch researchers from the famous Wageningen University — dedicated to bio-based economy in food, feed and chemicals produced from renewable resources — told a visiting press delegation that if prepared in a healthy manner and consumed in the right proportion (balanced reduction of calories), consumers can benefit from the many nutrients and dietary fibres in the tuber. The advantages of potato over other staples were discussed at the “Potato Potential Conference”, which was followed by a vibrant food exposition organised by the Enterprise Europe Network and Food Valley that facilitated networking of global companies in the potato business. The EU’s focus is now on Eastern Europe and China for processed food markets. The visiting journalists were told that China is already moving towards experiments with replacing rice with potato. The diverse advantage of potato — the fourth largest consumed food in the world after maize, rice and wheat — is emphasised by studies that have shown

AgriBusiness & Food Industry w March 2013

potato containing less calories than pasta, rice and bread. The tuber consumes about 30 per cent less water to grow than rice and is being projected as a crop that can contribute to weight loss “if prepared and consumed healthily.” Researchers and scientists are working towards facilitating higher and sustainable crop yields per hectare that are free from disease and pests. With an annual export of about eight million tonnes of certified seed potato, the tuber is not only a staple food for the Dutch, but a major contributor to the economy. Netherlands, known for its success in water management, is the world’s third largest agriculture exporter, second biggest agri-food exporter and third largest potato exporter. Quality standards The Dutch potato sector is constantly breeding, growing and selecting new varieties based on market demands. Simultaneously, processing companies (like Aviko) continuously experiment with the quality and flavour of their potato fries and how to get the best byproducts from wastes like potato peels and starch-rich waste water. The potato crop is normally hit by the most common late blight disease (caused by phytophthora infestans), scab, rhizoctonia, canker, blackleg, fusarium and viral diseases. All research at Wageningen is in partnership with private and multinational companies and, at the same time, with medical institutions so as to not lose sight of the nutritional and safety aspects in food products. The EU has laid down stringent

Fruits & Vegetables standards for member countries for seeds and seed potatoes to coordinate with the demand and supply. The visiting press team saw the high standards maintained by the Netherlands government at the NAK, the Dutch General Inspection Service for Agriculture Seeds and Seed Potatoes at Emmeloord. Technical Coordinator of Inspections Jaap Haak explained that every seed potato that comes out of a farm must have quality certification from the NAK. The Plant Protection Service of the Dutch Ministry of Agriculture, Nature and Food Quality, too, monitors the quality of seed potatoes, especially on phytosanitary issues of health, varietal purity and physiological conditions. Interestingly, the NAK has on its board representatives of farmers, breeders, propagators and traders in a set-up in which the farm sector formulates its own standards in line with international measures. The costs are shared by farmers and traders.

Mr. Haak said that only produce from fields free of nematodes are accepted for inspection. Farmers must also specify the sources of the seed, its variety and class. Inspections are visual, in the labs as well as on-field. As the grower prepares the lots for delivery, NAK inspectors visit the plot at least once a day to ensure that only the approved lots are being delivered. Nieck’s Witte Under its Participatory Potato Breeding programme, the Wageningen University collaborates with farmers in producing required varieties. Niek Vos, an organic farmer-breeder, took 12 years to develop the Bionca variety, by crossing small South Holland potatoes with blight-resistant potatoes from Mexico. His is a white fleshy potato variety, resistant to late blight disease, and he sells it under his own brand name — Niek’s Witte (Nieck’s White). “I turned to organic farming because

when I was in conventional farming, my neighbours complained that the late blight afflicting their crop was coming from my field. I thought it was better to grow a variety that has no blight and now I have my own Niek’s Witte,” he said. He also has an on-farm cold storage of 100 tonnes capacity. He uses cow manure on his well-managed and clean farm and follows the good practice of keeping his 70-hectare field free after every two years to maintain soil health. The organic potato is three to four times more expensive than the conventional one, but Vos believes this market is growing. Vos has an India connection. After finishing studies, his daughter Michiel travelled to Puducherry “to think out” what she wanted to do in life. She decided to return to Netherlands and join her father in growing potatoes — such is the power of the tuber in Netherlands. n

AgriBusiness & Food Industry w March 2013

Agri Affairs This is the 2nd part of a three –part series article on Indian horticulture. The author discusses the role of horticulture as the growth driver of India’s agriculture GDP, global competitiveness of India’s agriculture, and the steps being taken to ensure that growth is both sustainable and inclusive. 1st part was published in previous issue.

Horticulture

The Growth Driver of Indian Agriculture sector Sanjeev Chopra

APMC reforms are critical to the development of a value chain in horticulture produce, especially perishables. While production has increased manifold- both in terms of volume and value , the number of intermediaries has remained ‘constant’ on account of the provisions of the APMC Acts ,most of which prescribe ownership of a premises in the market yard as a pre–condition to apply for a license The Demand and Supply sides of Horticulture! While production of horticulture crops is growing, the ‘demand’ side is also witnessing a marked growth. As incomes rise and consciousness about ‘healthy foods’ increases, there is a significant change in the consumption basket of consumers. Households are spending significantly higher amounts of their expenditure on food to the F&V category. Horticulture has also done very well on the export front as well, and over the last decade the growth has been to the extent of 150%, with exports in the last fiscal touching Rs 13,000 crores. (This does not include exports of tea, coffee and rubber, which are covered as plantation crops). However, it is important to note that the availability of fruits and vegetables

has kept pace with the growing demand in both domestic and global markets. Thus, in the case of fruits, the per capita availability increased from 114 grams / day in 2001-02 to 169 grams / day in 2011-12. Similarly, the per capita availability of vegetables increased from 236 grams / day to 338 gram / day during this period. Trend in per capita available of Fruits and Vegetables is given below.

AgriBusiness & Food Industry w March 2013

Towards Inclusive and Sustainable Growth in Horticulture The major challenge for horticulture is to sustain this growth in a manner which ensures higher incomes for the primary producer by ensuring better institutional support mechanisms, infrastructure and technology support for the entire value chain – from pre –planting to Post Harvest management. While the ICAR system with its research institutions, State Agricultural universities and National Resource Centres have addressed issues relating to soil health, planting material, new and adaptive varieties, the major challenge for the DAC is to ensure higher returns to the farmer by ensuring that what is produced is not lost in transit on account of perishability, or poor handling at any stage between the farmer’s field to the consumer’s table. The link between perishability and farmer’s income has been brought out succinctly by the Planning Commission Committee on the subject, headed by Dr Saumitra Chaudhri. This committee made four major recommendations, which include, inter alia: strengthening institutional linkages between producers and consumers, recognition of the role of market intermediaries and supporting their efforts in backward integration, policy changes in APMC Acts to break the monopoly of the existing players and fiscal incentives to encourage investments in the sector. These suggestions are now in various stages of implementation. Institutional Linkages between producers and suppliers Three major initiatives of the DAC

Agri Affairs come under this broad head, and have the potential to impact farmers’ incomes in a positive manner. These include the Vegetable Initiative for Urban Clusters (VIUC), support to FIGs and FPOs for better integration with markets and input suppliers and the PPP IAD (Public Private Partnership for Intensive Agricultural Development). The salient features of these are discussed below. VIUC: Under the VIUC farmers living in peri-urban areas are encouraged to take up vegetable production in clusters to ensure primary level aggregation and better co-ordination with wholesalers and retailers. The idea is to support farmers with all essential inputs – from credit to seeds to soil nutrients – and assist them in primary level aggregation, grading, sorting, packaging and transport to the wholesale, and wherever possible retail points as well. It encourages farmers to have direct linkages with the large aggregators or retailers so that the farmers get a better value for their produce. FPOs: VIUC has also encouraged the formation of Farmer Interest Groups and Farmer Producer Organizations by encouraging the formation of cluster level Farmer Interest Groups (FIGs) which were organized into FPOs. This strategy was based on the clear understanding that given the fragmented land holding pattern among primary producers, it was necessary to adopt the cluster based approach to achieve the economies of

scale and scope. The task was assigned to the Small farmers Agribusiness Consortium, an agency of the DAC. PPP IAD: While the formation and support to FPOs and FPCs is an attempt at forward integration with the markets, the PPP IAD is an effort to facilitate backward integration of agribusiness organizations with producers. Under this programme, for which support is available under the RKVY, corporates are encouraged to undertake extension services, and or market linkages to clusters of five thousand farmers. The subsidies and incentives which had to be given by the state can be routed through the corporate partner, who must put in an equivalent amount, besides providing marketing support. APMC Reforms APMC reforms are critical to the development of a value chain in horticulture produce, especially perishables. While production has increased manifold- both in terms of volume and value , the number of intermediaries has remained ‘constant’ on account of the provisions of the APMC Acts ,most of which prescribe ownership of a premises in the market yard as a pre–condition to apply for a license. Many state governments have agreed, in-principle, to amend the Act and also introduce electronic auctions, besides allowing the establishment of terminal

markets and electronic auction platforms. As has been reported in these columns, once Delhi amends its Act, there will be a sea-change in the agricultural marketing scenario. Fiscal Incentives The Report also recommended that government continue the fiscal incentives for the sector .These include enhanced support for cold chain projects by upward revision of credit linked back ended subsidy from 25% to 40% of the capital cost of a project in general areas and from 33.33% to 55% in case of Hilly & scheduled areas, in respect of units which adopt new technologies. Secondly, a provision of Rs 5000/crores for investments in warehousing and cold chain infrastructure was kept under the Rural Infrastructure Development Fund (established by NABARD). The third step was the reduction of Excise Duty on Import of Cold Storage Equipments including refrigeration panels for cold chain infrastructure and conveyor belts .Last but not the least, the government has allowed External Commercial Borrowing (ECB) for investments in cold chain infrastructure, including on –farm storage, refrigerated transport and associated logistics. (To be continued/-) (The author is Joint Secretary & Mission Director, NHM & NMMI, Union Ministry of Agriculture)

Bihar to export organic mushroom

ihar will export organic mushrooms and vegetables grown by hundreds of farmers in Nalanda district to Japan, Ukraine, Saudi Arabia and Hungary among other countries, official said. "After Chief Minister Nitish Kumar assured farmers of Nalanda who

grow organic mushrooms and vegetables, the state government has decided to export them to several countries," an official in the chief minister's office said. During his visit to to organic farms in Nalanda, Kumar said that preparations are afoot to export mushrooms and vegetables to encourage farmers and provide them more opportunities for profit. According to Nalanda district officials, the government has set up a mushroom seed production unit and a spawn production unit in Nalanda, 100 km from Patna. Nalanda is the home

district of the chief minister. "Organic mushrooms and vegetables grown in Nalanda meet international standards," an official said. Pawan Mahto, an organic vegetable grower in Nalanda, said that the government's move is good news for farmers like him. "It will inspire farmers in other districts to adopt organic farming", he said. Madhu Patel, a mushroom grower, said farmers engaged in organic mushrooms would benefit by the government's help to market their products abroad. "It will encourage people, particularly women, to grow mushrooms," she said.

Bihar is turning its attention to popularising and promoting organic farming in the state to usher in a new "Green Revolution" in agriculture. Kumar's government has decided to promote organic farming in at least one village of the state's 37 districts. It launched an "organic farming promotion programme" over a year ago, intended to develop organic 'grams' (villages). A sum of Rs.255 crore ($50 million) has been sanctioned for development of organic farming, said an official of the agriculture department.

AgriBusiness & Food Industry w March 2013

Event Report

The trip of the year for the industry’s top decision-makers

his Year, 2,543 exhibitors from 78 countries presented entire value chain of fresh produce trade – Some 55,000 trade visitors from 120 countries came to Berlin – FRUIT LOGISTICA Innovation Award for the innovation of the year – Peru was official partner country – Some 1.6 billion tonnes of fruit and vegetables were produced around the world in 2012. From 6 to 8 February 2013, a total of 2,543 exhibitors from 78 countries presented not only the entire product and service range that so amply supplies consumers with fresh fruit and vegetables, but also numerous interesting industry innovations that serve as a valuable driving force in the industry, increasing the variety of options for the consumer. Some 55,000 high-ranking trade visitors from 120 countries are expected in Berlin. 90% of the exhibitors and around 80% of the trade visitors will be coming from outside Germany, making FRUIT LOGISTICA one of the most international trade fairs worldwide. Dr. Christian Göke, Chief Operating Officer for Messe Berlin GmbH, commented: “FRUIT LOGISTICA is truly exceptional. It comprises all business areas and market players around the world, it provides a complete market overview of all products and services on all levels of trade, it offers excellent opportunities to establish contact with key decision-making target groups, it displays industry innovations, and it

offers industry specialists an outstanding supporting programme featuring the latest industry trends. In this way, FRUIT LOGISTICA fulfils all of the quality criteria that constitute a leading trade fair”. Leading the way: Two new visitor routes The organic and fresh convenience segments are offering increasingly exciting opportunities for further sales growth in the retail sector. A new service for trade visitors picks up on this development. The Convenience Route and the Organic Route assist trade visitors at FRUIT LOGISTICA in quickly and directly identifying exhibitors offering certified organic produce or fresh convenience products. These exhibitors are clearly identified as such in the exhibition halls and the Virtual Market Place®. This offers visitors a clear overview of all key businesses.

are controlled automatically. City Farming offers a sustainable, environmentally-friendly method of producing healthy food for a rapidly growing global population. "We are very proud of our FRUIT LOGISTICA Innovation Award 2013. The development of the City Farming system wouldn't have been possible without our partners. I would like to thank the jury for their appreciation of our work," said Hans de Groot of the Staay Food Group at the award ceremony. Trade visitors at the world's leading fresh produce trade fair voted "ApfelSchiffchen®" into second place. These ship-shaped apple slices were developed by Elbe-Obst Vertriebs GmbH, Germany. A new drying technique guarantees crispness and prevents browning. Third place went to Tozer Seeds Ltd., of the UK for "Flower Sprout TM", a cross between Brussels sprouts and kale with green and purple leaves.

"City Farming" system wins FLIA 2013 The FRUIT LOGISTICA Innovation Award 2013 (FLIA) went to the "City Farming" system from the Staay Food Group, the Netherlands. Custom greenhouses with specialised LED lighting allow seeds to be cultivated into young plants within 35 days independently of their natural season. Optimum growing conditions make pesticides completely unnecessary. Temperature, irrigation and fertilizing

FRUIT LOGISTICA Innovation Award The FLIA is awarded for outstanding innovations in the fruit and vegetable sector. It honours new products and services that have set new trends in the marketplace. A panel of experts selected ten outstanding innovations introduced over the past year. The FLIA nominations were prominently displayed in a special exhibit at FRUIT LOGISTICA. Trade visitors had two days in which to select their favourites. n

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Pre Event

Africa’s Big Seven 2013 Almost SOLD OUT!

ith less than six months to go, exhibition space at Africa’s Big Seven (AB7), the biggest food and beverage trade show on the continent, is nearly sold out! Over 80% of the total available exhibition space at Gallagher Convention Centre has already been booked for this year’s show, which takes place from 30 June to 2 July at Gallagher Convention Centre in Midrand. Event organiser John Thomson of Exhibition Management Services (EMS) says this is not the first time this has happened. Last year’s show also had a similar deluge of exhibitors clamouring to sign up. “It’s not unprecedented or unexpected – but it certainly speaks volumes about the support AB7 enjoys – both locally and around the world,” he says. Thomson is organising the world renowned food and beverage show for the 11th successive year. Accessing African Markets Thomson believes the AB7 show’s phenomenal growth is powered by two drivers: intrepid South African producers and manufacturers pushing north into ‘The New Asia’ – fast growing markets across the African continent – and a

growing wave of transcontinental and overseas companies looking for entry points into the same place; Africa. “Last year visitors from 53 countries attended AB7 – 22 of these from Africa – and that number will definitely increase again this year,” says Thomson. “The kind of exposure and market access that AB7 gives its exhibitors is unmatched. And the show’s track record is undisputed.” Recounting some of the show’s numerous success stories, Thomson says: “AB7 has provided fruit juice manufacturers in Uganda access to suitable equipment, it has allowed supermarkets in Ghana and Nigeria to stock up with South African manufactured goods, it has provided an Angolan soft drinks company access to other markets, it has put Ethiopian honey into Johannesburg health shops – the list is almost endless.” “The question is no longer ‘if’ a business or company should enter the African market, but ‘when’ and ‘how’,” continues Thomson. “The time is now, and AB7 provides a valuable, costeffective solution to stakeholders in the food and beverage sector worldwide. Most importantly, almost all visitors are

AgriBusiness & Food Industry w March 2013

key decision makers, managing directors, business owners, wholesalers, agents and manufacturers.” AB7 is made up of seven component sectors including AgriFood; Pan African Retail Trade Exhibition; FoodTech Africa; DrinkTech Africa; Interbake Africa; Retail Solutions Africa and FoodBiz Africa. Exhibitors Aiming for Above and Beyond “AB7 is the doorway into the African market,” confirms Yudi Dahlan from the Indonesian Trade Promotion Centre. “All our exhibitors from my country feel that AB7 is the ‘ultimate showcase’ for their products,” he says. “Our booth is already booked for this year,” says Anria Malan project and sales manager at long-standing AB7 exhibitor Heat and Control. “AB7 gives us an opportunity to broaden our customer database across various industries, both in South Africa and other African countries.” Robert Millar, marketing manager at drinks company Kiss Mix says he had encouraging discussions with potential buyers last year. “AB7 was instrumental in getting our brand and image into African markets.” n

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Singapore at Gulfood

Singapore F&B companies to have the best year at Gulfood

ingapore food and beverage 'F&B' companies at Gulfood 2013 are expecting to record their best year for sales as global demand for Asian flavours continues to grow. More than 40 Singapore companies will exhibit at the Singapore country pavilion with a record 30 of them launching new products at the tradeshow. The total sales volume of Singapore F&B products at Gulfood 2013 is expected to reach over $20m, surpassing the recordbreaking result of 2012. Singapore companies generated their highest onsite sales at Gulfood last year, recording a 35% increase from 2011. Singapore's F&B exports to the GCC reached a total of $258m in 2012. According to International Enterprise (IE) Singapore, the government agency promoting the overseas growth of Singapore-based enterprises and international trade, the

GCC is now the sixth largest destination for Singapore F&B exports and is the country's largest export market outside Asia Pacific. "The GCC is one of the fastest-growing global markets for Singapore and we see great potential to satisfy consumers' increasing appreciation for Asian cuisine. Gulfood has proven to be a key enabler for our F&B exports to the GCC. As our companies set their sights on growing their presence in key regional markets, particularly in Kuwait, Saudi Arabia and the UAE, it is at Gulfood where major distribution deals to these countries are cultivated. We are expecting to break last year's Gulfood sales record to reach another trade milestone between Singapore and the GCC," said Mr. Lester Lu, Regional Director in Dubai for IE Singapore. Singapore will showcase the inventive fusion of flavours for which the country

is renowned, as well as its latest halal offerings and convenient packaged goods that make cooking Asian cuisine at home easy. Organised by the Singapore Food Manufacturers' Association (SFMA) with the support of International Enterprise (IE) Singapore and the Singapore Manufacturers' Federation (SMF), exhibiting companies at the Singapore pavilion all meet the country's stringent food safety standards, recognised as among the most rigorous standards globally. Singapore's top food exports to the Middle East remain milk and dairy products, cooking sauces, chocolate, as well as edible oils. However, beyond these consistently strong exports, Singapore companies are also pursuing growth opportunities in the categories of health and wellness, convenient foods, gourmet cuisine and halal-

Lester Lu certified foods. "The cultural diversity of the UAE, coupled with its extensive trade links to the rest of the world, creates major growth opportunities for Singapore F&B companies. Asian cuisine is becoming more popular in the region and Singapore food, with its mix of Chinese, Indian and Malay flavours, plays to this trend," added Lester Lu.

Tea Board to showcase Indian flavour at Gulfood

he Tea Board is also participating in Gulfood 2013. “We have registered the participation of those

exporters who have keen interest to improve their presence in the UAE, as we regard Gulfood as the right window to reach buyers in the Gulf region, ” V. George Jenner, Director of Tea Promotion for West Asia and North Africa, Tea Board, said. “We are working on improving India’s tea shipment to the UAE, as there has been a slump in the recent years due to

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political uncertainties in many countries in the Gulf. In effect, India’s tea shipment to the UAE dropped to 19.76 million kg (mkg) worth Rs 314.31 crore in 2010-11 from 21.97 mkg worth Rs 323.16 crore in 2009-10,” he said. India is the third largest tea supplier to Dubai after Kenya and Sri Lanka. In the last three years, Dubai has been importing

15-16 mkg, which accounts for 22 per cent of the UAE’s total imports (just 6 per cent less than imports from Sri Lanka or Kenya).

Organic Foods

Organic Food: Good Feel but Not Many Takers WRITANKAR MUKHERJEE

rands may be spending million to promote an eco-friendly image, but when it comes to actual sales, organic and ‘planet-friendly’ products have failed to move cash registers for retailers, whether it’s fresh produce, groceries or even clothing. Top food retailers like Future Group, Reliance Retail and Spencer’s Retail say sales from organic vegetables, fruit and food products account for less than 2% of total food sales, even three or four years after their launches. ITC has pulled a range of organic spices from the market, and apparel brands and retailers like Madura Fashion & Lifestyle and Woodland, which launched ecofriendly fabrics have seen tepid response to these products as well. “Eco-friendly products have remained a feel-good and talked-about factor in India, rather than generating hardcore revenue,” says Spencer’s Retail chief executive Mohit Kampani. Kampani says Spencer’s will continue to stock these products – but only to ensure that its stores offer a full range, since organic lines only contribute around 0.5% to the total food sales. A senior Reliance Retail official said the company has started to prune down its organic food range in several Reliance Fresh stores, since sales were nowhere close to expectations. Retailers say there are problems with the supply chain of organic products in India, since all products are not always available. And the price premium, which can be 50-70% of regular prices, is certainly deterring consumers. For some products like organic ghee, the price is just double than the regular range and for honey it is almost three times.

As a result, herbal FMCG maker Himalaya has launched its organic range only in the US and Europe, and has no plans to launch it in India. ITC’s divisional chief executive (food) Chitranjan Dar says apart from the price premium, Indian consumers find organic food not as fulfilling as the non-organic product. “In organic food, you have to sacrifice certain qualities. For instance, the turmeric is not as yellow or the chilli powder not as red as the usual. And consumers also think there is no point buying just few organic products at a premium when rest of the products they consume is non-organic,” says Dar. It’s not just food products – organic cotton, which is a fastgrowing, though nice market abroad, is not even a ‘micro-niche’ market in India, says Madura Fashion & Lifestyle’s Allen Solly brand head Sooraj Bhat. Madura had launched organic cotton products under its Van Heusen brand, but it’s now slowed down its plans to expand the category. “There is a clear cost associated with

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these products, which is a premium of around 20-30% over regular garment and hence the market has not picked up. There are also processing issues since organic cotton lends itself more to casual clothing more than formal wear due to its texture,” says Bhat. Amit Ladsaria, director of apparel brand, Turtle, says it plans to launch an organic range – but more as “a talking point in the stores,” which shows the brand at the cutting edge of new products, rather than to drive sales. So while other eco-friendly initiatives such as moving to paper or jute carry bags instead of plastic, recycling old packaging boxes, and encouraging shoppers to bring their own bags to stores have been popular with consumers, brands and retailers are still far away from making money out of selling organic-branded products. Hope Remains However, the eco-friendly industry feels that it’s still better off than the ‘health’ industry — brands like PepsiCo and Parle have actually withdrawn some of their health products in India due to poor market response, as Indian consumers preferred taste to health. Future Group’s president (Food Bazaar) Devendra Chawla says ecofriendly products, especially organic food, may become more prominent in another 2-3 years as retailers develop the categories jointly with the brands. “Yesterday’s products won't bring in tomorrow’s consumer. With many brands peaking, their replacements have to be constantly sought, and small categories like organic food will have a future,” he says. Courtesy: ET

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Profile

Latini Hohberger Dhimantec, over 80 years of Excellence!!

Amrinder Dhiman, ceo during a customer training workshop at customer site in US

he moment you say Latini it reminds you of lollipop so well-known is this name in the lollypop category of Confectionery industry. Originally started in 1938 and so many Generations and decades later Latini still specialize in Lollipop machines. The group became stronger with over 300 employees and a few overseas manufacturing facilities and a Confectionery Research and development, private label production and demonstration Centre. Now we can not only supply you machines but show the performance before shipment and even test run or do pilot production of your production at shortest possible time frame. One of Latini’s success stories is its Hohberger fondant plant. First built and installed during the 1920’s, and spanning more than 80 years of production and installation to many of the name brands in the industry. LHD still continues to push the envelope in its design for a higher capacity, longer running machines, with standard

production models ranging from 500 lbs/hr up to 4000 lbs. /hr., excluding customer specified capacities, engineered to the same level of reliability that Latini machines are made of. Another breakthrough in the list of Latini’s success stories is its newly

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Fondant plants beings manufactured now

designed HLM Servo Flat Lollipop machine which has a capacity of up to 700 pcs per minute. Starting with a model that runs for 200 pcs per minute during the 70’s, Latini’s flat lollipop machine has come a long way in terms of capacity, with machine reliability still being the same. These machines are available with many customizations such as printed lollipops, multiple memory cut off, print registration etc. Latini participate in various trade shows all over the world also participated in Interpack 2012 and Packexpo 2012 in a big way showcasing its wide and range of machines. With presence in over 50 countries Latini is still adding more agents and representatives to provide better customers support. As the slogan says “Excellence thru Innovation” Latini was able to excel with the constant innovations and is still open with new challenges and ideas from the customers to work on. n

Latini BLP-1000 Ball lollipop forming machine

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Profile

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Cover Story

Offers Wide & Open Opportunities for overseas Grain Technology SUPPLIERS

According to FAO, India has second largest arable land in the world after USA, accounting for 11.4% of world’s arable land. The country plays an important role in global agriculture market. India is a major producer of rice (World’s largest exporter and 2nd largest producer ), wheat (3rd largest producer and consumer), millet (largest producer and consumer), soybean (5th largest producer), corn (6th largest consumer and exporter) and sorghum (3rd largest producer and consumer)

T. V. Satyanarayanan & Anwar huda

ransformation of agriculture sector should be one of the top priorities and therefore the 12th five-Year Plan assumes a sustained growth in this sector at the rate of 4 per cent a year, essential to achieve food security, according to Prime Minister of India Manmohan Singh. Indian economy being heavily dependant on agriculture, the farm sector has been consistently receiving priority right from the first Five-year Plan, as India’s first Prime Minister and architect of planning put it, “everything can wait but not agriculture.” A transformation in Indian agriculture development,

however, came after the ushering in of the Green Revolution which laid the foundation for transforming a country suffering from severe grain shortage, or ‘ship-to-mouth’ existence, to a farm-toship exporting nation. In the era of Green revolution, productivity of grains, particularly wheat and rice, got a big boost. Dwarf cultivars of wheat and rice along with adoption of improved technology and optimum use of fertiliser led to quantum jumps in the output. Over the years, the production and productivity curve has been consistently going up, barring in the years of adverse

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weather conditions. India’s latest production figures would vouch for this trend. 250 MT Foodgrains In the current crop year (2012 July – June 13), despite an erratic monsoon, the country’s foodgrain production is expected to touch the targeted 250 million tonnes (mt). “We are aiming for 250 mt this year. Though total foodgrain production cannot be the same as last year,” Agriculture Secretary of India, Ashish Bahuguna recently said. Last year, the country’s food grain production stood at 257.44 million tonnes

Cover Story

Transformation of agriculture sector should be one of the top priorities and therefore the 12th fiveYear Plan assumes a sustained growth in this sector at the rate of 4 per cent a year, essential to achieve food security, according to Prime Minister of India Manmohan Singh

we must adopt the modern scientific solutions which are based on sound and proven practices. We also cannot afford to curtail the vigor of our scientific community if they are conducting research with all the precautions, said agriculture minister sharad pawar

In value terms, India, the world's major grain producer, is expected to export foodgrain worth around $ 40 billion in 2012-13 on account of surplus production. The country has shipped foodgrains worth $ 20-25 billion so far, said India’s Minister of State for agriculture Tariq Anwar

with record rice output of 104 million tonnes and wheat at 94 million tonnes. Bahuguna said wheat production this year is likely to be 92.3 million tonnes, a little less than last year’s level, while mustard and chana (chick pea) crop are looking good. The Agriculture Secretary maintained that certain crops such as sunflower, jowar (sorghum) and bajra (pearl millet) were facing stress. Rice transplantation went on at a sluggish pace due to the poor availability of water in states such as Tamil Nadu and Andhra Pradesh.

year, the overall acreage has been more than made up by higher areas sown under pulses, coarse cereals and oilseeds.

rice yield per hectare by 1000 kg to 2089 kg per hectare. Wheat yield in Madhya Pradesh has gone up by 800 kg per hectare in the same period. Bihar state’s Chief Minister Nitish Kumar recently had a meeting with Agriculture Minister of India Sharad Pawar and gave him details of a five-year agriculture roadmap formulated by the state government. Pawar, he had said, assured all help to the Bihar CM for the success of the roadmap for 2012-17.

Crop Area As per reports received from different States, the area under Rabi crops (wheat and other winter crops) has exceeded last year’s acreage. The area under wheat is a shade less at 29.82 million hectares as compared to 29.86 million hectares in the previous Rabi, but because of gains in crop yields, the output could be the same as last year. The total sown area under various crops stands at 61.67 million hectares as against 61.55 million hectares last year. While the area under winter rice showed some decline compared to last

Given below are the areas sown under various winter crops (in Lakh hectares) 10 lakh = 1 million Crops Area Sown Area Sown (2011-13) (2011-12) Wheat 298.19 298.61 Rice (Rabi) 20.99 23.97 Sorghum 38.84 37.75 Coarse Cereals 62.15 59.59 Gram 94.78 89.92 Pulses 148.13 147.42 Rapeseed & Mustard 67.23 65.80 Oilseeds 87.29 85.95 Total Rabi Area 616.75 615.53

States recording good growth States like Madhya Pradesh, Gujarat and Bihar have been showing outstanding performance in the last few years on the farm front. From an agriculture growth rate of 2.50% in 2006-07, Madhya Pradesh has registered a growth rate of 18.96 per cent in 201112 – a nine-fold increase in five years. Gujarat state has an agriculture growth rate of 7.06%, a seven times increase over 1.10% in 2006-07. Bihar has increased its

Major Grain Producer According to FAO, India has second largest arable land in the world after USA, accounting for 11.4% of world’s arable land. The country plays an important role in global agriculture market. India is a major producer of rice (world’s largest exporter and 2nd largest producer ), wheat (3rd largest producer and consumer), millet (largest producer and consumer), soybean (5th largest producer), corn (6th largest consumer and exporter) and sorghum (3rd largest producer and consumer). Large stocks Improved winter weather for wheat

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Cover Story

crop is expected to help boost the existing wheat stocks. Wheat marketing year in India commences in April and ends in March. On the other hand, the government held a wheat stock of 37.65 million tonnes as of Dec 1, 2012, which is above the stipulated buffer and strategic stock requirement of 11.2 MT as of January 1, 2013. Global Demands of Indian Wheat The demand for Indian wheat has gone up in the international market, following a fall in wheat production across Australia and Russia. Now with the proposal of government opening up options for private players to sell government stock, wheat trading houses are expecting good export volumes. India's wheat exports are poised to rise to a record 9.5 million tonnes in the current fiscal year. The current demand for Indian wheat was largely coming from Bangladesh, South Korea, the Middle East and African countries. The government has been able to export the grain at an average price of $300 a tonne. "Indian wheat is currently in huge demand globally. We should take full advantage of the situation and export as much as we can," says Pravin Dongre, President, Indian Pulses and Grains Association (IPGA). Rice Production India last year (2011-12) exported 3.2 million tonnes of Basmati Rice, most of which was shipped to Gulf countries including Saudi Arabia, Iran, Iraq, Kuwait and Yemen. In the current fiscal year India’s export of aromatic basmati

rice has been robust and will surpass last year levels. Iran, Iraq and other gulf nations are major buyers of Indian Basmati. India produces aromatic, PR and sharbati varieties including Pusa-1121 (steam), Pusa-1121 (sela), Pure basmati (raw), Duplicate basmati (steam), Sharbati (steam), Sharbati (sela), PR11 (sela), PR-11 (raw), Permal (raw), Permal (sela), Dubar, Tibar, and Mongra. $40 Billion Foodgrain Export In value terms, according to Tariq Anwar, India’s Minister of State for Agriculture, India is expected to export foodgrain worth around $ 40 billion in 2012-13 on account of surplus production. The country has shipped foodgrains worth $ 20-25 billion so far. The export is expected to touch $ 40 billion by the end of 2012-13 fiscal, Anwar said. The Minister said there was tremendous scope for improvement of agriculture in the Eastern India. Keeping this in mind, the Union government has launched a special scheme to achieve second green revolution in Bihar, West Bengal, Odisha and Assam. Hybrid Seeds The popularity of hybrid seeds in corn and cotton segment in India is ubiquitous. In corn, more than 85% area is under private sector hybrid, witnessing a jump in productivity from 1.8 tons/ha to 2.4 tons/ha. Production has also increased by 5 million tonnes in the last five years. In cotton, more than 90% area is under Bt cotton hybrids. Due to this, pesticide usage has decreased

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significantly and production increased to 36 million bales. In rice, 2 million hectare area is under hybrid seeds, which has significantly increased productivity in Eastern India. Since India is a large importer of edible oil and pulses, policy makers are asking the seed industry to develop hybrid seeds and thus supplement the efforts of government research organizations in this field. The private seed industry currently has a small exposure to pulses and oilseeds segments, where the seed replacement rates are less than commercial crops such as cotton. The country’s import bill on edible oils touched $ 9.65 billion last year, while that of pulses stood at $1.83 billion. At Indian Council for Agricultural Research (ICAR)’s annual general meeting, held in New Delhi, on February 18, 2013, Agriculture Minister of India said that scientists should be allowed to do field trails of GM crops. Climate Change: A Great Risk According to Daniel W Basse, President, AgResource, globally the 2012 weather-related grain production losses were startling to end users and topic of climate change has come to the forefront in the media as major grain producers like US endured summer row crop yields that were below the trend for the 3rd consecutive year,” he added. This calls for the urgent action and cooperation on global level to ward off food security fears amid dire weather. Increasing Productivity Additional production will need to come from increased productivity including by reducing productivity gaps in developing countries. Per hectare productivity in India is still too low. It needs greater use of technology and better seeds to enhance its farm productivity. Need for right export policy According to various agri-experts, India needs a right kind of export policy to make easy the whole process of foodgrain export and to empower small farmers. This was recently echoed by Shenggen Fan, Director General, International Food Policy Research Institute (IFPRI). “Indian government should increase investment in agriculture, rural infrastructure and education, as these sectors have high payoffs in terms of

Cover Story raising smallholder farmers' productivity and incomes," Fan noted. A discussion paper on farm trade prepared by the Commission for Agricultural Costs and Prices says: Tapping the Hidden Potential, deserves wide attention. It brings out the potential of India's farm sector to become a generator of prosperity. India, today, is the world's largest exporter of rice and buffalo meat. India has been a major exporter of cotton also, until the government banned cotton exports. Despite an uncertain trade policy, India's share in global farm trade, at 2.1%, is higher than India's share in global trade per se, 1.7%. “Clearly, we need a major shift in our farm sector policies, and tap the sector's potential to create prosperity”. The paper called for the stable, liberal trade policy without bias towards producers or consumers. Farm Mechanization Planners and policy makers are now convinced that India must adopt latest tools and technology to increase farm productivity and cut wastage. The government is already aggressively pressing for use of farm machinery to achieve 4% targeted growth in agriculture. Because of shortage of farm labour, farm mechanization is the latest trend in Indian agriculture. There is also big need of grain milling technologies in India, and this offers a

great opportunity for global players to expand their businesses in this country and help its farm sector. In fact, what is imperative is to plug every loophole in the food production and distribution system, which means effective use of available global technology and building of modern storages. The Agriculture Minister has admitted that India wastes food grains worth Rs. 58,000 crore every year because of weaknesses in storage techniques and deficiencies in supply chain. Efforts are now under way to build modern storages on an urgent basis. India has over 5000 Rice mills, 1000 Flour milling plants, 200 Soybean plants, 2000 Spices crushing plant, 1500 Pulses mills, 2000 Oilseeds crushing units, 1000 Feed Units, 100 Biofuel and energy projects, 1000 Coffee plants. The country needs new and better technology to upgrade its manufacturing, processing, packaging line. It needs to reduce the technology gap in grain milling, food processing as well as in the supply chain, also to fulfill increasing domestic demands and also to achieve the export targets of foodgrain. Post-harvest technology Addressing a conference on “Doubling food production in five years”, the Agriculture Minister said, “Increase in agricultural production would have to come mainly from

enhancement in farm productivity in the existing cultivated area. In this background, I am of the firm opinion that we must adopt the modern scientific solutions which are based on sound and proven practices. We also cannot afford to curtail the vigor of our scientific community if they are conducting research with all the precautions. We should not get carried away by the misplaced apprehensions against the scientifically proven developments (Such as GM crops).” With the world population expected to reach nearly 9 billion by 2050, food security at a global and national level needs to be a key priority. Not only is the numbers required to be fed increasing, climate change is also leading to a reduction in available arable land and water resources. This double impact needs proactive and urgent measures in collaborative brainstorming, policy and action. The global markets are evolving. Farmers are already combining conventional practices with modern technologies and improved practices. Rising consumer demand and a changing climate need us to leverage knowledgebased research and development capability to develop new choices. With food, feed, the farm and farmer at the core, tomorrow is for those who are determined to survive, Pawar emphasized. n

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Cover Story

Indian

wheat 2012 Recap Angel S Santos

ndia emerged on the world export scene after a long hiatus. Successively, yearly bumper crops combined with overflowing government stocks have given an opportunity for India to be back in the global game. And it could have been a better year than 2012. 2012 was an interesting year for Indian wheat exports. Wheat production increased to a record 93.90 M Tonnes while consumption remained at around 76 M Tonnes. The global wheat market also faced immense volatility. Unfavorable weather conditions in the US and Russia limited global supplies and led to a very firm wheat markets. Australian production also decreased by around 20%, limiting global supply further. Consequently, we have seen more Indian wheat imports into Asia. Normally, US / Australia oriented buyers, countries such as Indonesia, Thailand, Vietnam, and South Korea bought Indian wheat for both feed and milling purposes. This has been a great addition to Indian wheatâ&#x20AC;&#x2122;s market mix on top of the

typical African and Middle Eastern markets. For a time, Indian wheat became the cheapest wheat in the world with about a $40 discount from US / Australian / Black Sea wheat. Because of these factors, a total of about 3.5 M Tonnes was exported out of India in 2012. There was a lot of involvement from the Indian government on wheat exports last year, with the state-owned companies, namely PEC, STC and MMTC spearheading tenders almost every week. Changes are evident in how tenders are being handled now

compared to previous years. Logistics, for one, have been managed very well. In previous years, it was nightmare for buyers as vessels normally got piled up in Kandla. In 2012, the government effectively addressed this issue by giving priority for wheat in rail movement. Private ports have been opened to operate and also prioritize wheat exports. Now bidders have a wide range of load ports to choose from- Kandla, Mundra, New Mangalore, Vizag, Chennai, Krishnapatnam, Visakhapatnam, Karaikal, and

Kakinada. Good loading rates have been achieved by these ports, considering that Indian wheat is bled in bags onto the vessel holds. Quality was also very closely monitored to ensure that Indian wheat lived up to its guaranteed standards. FCI stocks were thoroughly evaluated in the warehouses prior to delivery to ports and were rejected if they did not meet export specifications. More grades are also available in this yearâ&#x20AC;&#x2122;s tenders. Machine cleaned wheat with fewer impurities is now being offered on separate tenders. More regions are also being encouraged to grow wheat by the implementation of a bonus on top of the government MSP (minimum support price). Wheat is traditionally grown in Punjab and Haryana regions, yet for the last 6 years Madhya Pradesh wheat production has grown by 35% and is expected to grow further, thanks to the bonuses given to farmers. (Author is Grain Trader, Agrocorp International Pte Ltd, Singapore) Courtesy: Gaftaworld (February 2013)

Corn faces the longest stretch of decline in Chicago

orn headed for the longest stretch of declines since 1980 in Chicago and wheat traded at a seven-month low on

speculation rains in Brazil and the US will help crop development. Scattered showers and thunderstorms will aid crops

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in southern Brazil this week, and parts of the central and southern plains in the US may have some rain next week, forecaster DTN said.

Brazil is set to overtake Argentina as the secondranking exporter of corn, according to the US Department of Agriculture.

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Grain Milling Solutions' Demand Rises in India

ndian agriculture is now going through critical times. On the one hand, relying on the strength of Green Revolution strategy and having emerged an exporter of grains and food products, the government is keen to enact a Food Security law to ensure availability of minimum food grains to every individual in the country as his or her own right. On the other hand, the weaknesses in the implementation of the strategy are showing up in a glaring manner. In fact, what is imperative is to plug every loophole in the food production and distribution system, which means effective use of available technology and building of modern storages. Demands of Technologies on Rise India has over 5000 Rice mills, 1000 Flour milling plants, 200 Soybean plants, 2000 Spices crushing plant, 1500 Pulses mills, 2000 Oilseeds crushing units, 1000 Feed Units, 100 Biofuel and energy projects, 1000 Coffee plants etc., looking for new and better technology to upgrade

their manufacturing, processing, packaging line. “GrainTech India 2013” will seek to reduce the technology gap in processing as well as in the supply chain Development Authority (APEDA) under the Ministry of Commerce are investing a substantial share of the budget for promoting technological up-gradation and value addition in all segments of Rice, Wheat, Pulses, Oilseeds, Spices, Dairy & Feed and all other food sectors. “The last edition of GrainTech India had the participation from over 21 countries around the world like the Netherlands, Turkey, China, Russia, Italy, Indonesia, Thailand, Singapore, Niger, Senegal, France, Spain, Belgium, Nepal, USA, Germany, Taiwan, Cameroon, Burkina Faso, Cote D'Ivoire, Cyprus etc., displaying their comprehensive range of products and technologies in the grain industry. All major participants who exhibited in last edition confirmed their presence with more line of products for the grain

AgriBusiness & Food Industry w March 2013

milling industry by increasing their size of pavilions and bringing latest machinery to showcase among Indian millers,” said S. Jafar Naqvi, Chief Coordinator. At GrainTech India 2013, the exhibitors will have opportunity to meet thousands of prominent trade visitors and potential clients to explore business opportunities in Indian and South Asian Grain Milling Industry. Media Today Group is proud to announce the 4th edition of GrainTech India 2013, widely acknowledged as India's largest International Exhibition on Grains, Cereals, Spices, Oil seeds, feeds, Products & Technologies, scheduled to be held from 23 to 25 August 2013 at Bangalore International Exhibition Centre (BIEC), Bangalore, India. Concurrent Event A concurrent event would be 5th India Foodex 2013, an International Exhibition on Food Products, Processing & Packaging Machinery and Allied Industries. GrainTech India has strong support from prominent Indian agri and food organizations, adding the strength and value to the event. Among the numerous organizations supporting the exhibition are The Solvent Extractors' Association of India, All India Food Processors' Association, Coffee Board, Roller Flour Mills Federation of India, Spices Board India, The Soyabean Processors' Association of India, All India Rice Exporters' Association, Indian Oilseeds and Produce Export Promotion Council, CLFMA of India and Indian Biscuits Manufacturers' Association. The list is, indeed, long!

www.graintechindia.com

AgriBusiness & Food Industry w March 2013

Rice Industry

Rice Production Global

once again to outpace consumption: FAO

ome months back, FAO projected a marginal increase in rice production for 2012/13 (+0.66%) following 4.8% growth in 2011/12, compared to the average from 2008 to 2011. Production once again outpaced consumption, delivering the ‘eighth consecutive year of stock accumulation’ and an increase in the stocks-to-use ratio from 33.6% in 2012 to a forecast of 35.5% in 2013. A particularly strong increase in production is projected for Africa in 2012/13 (+4.8%). While most of this increase is expected to occur in Egypt (+15.4%), increases also come from Mali, Ghana, Mozambique, Sierra Leone, Tanzania and ‘even… flood-stricken Nigeria’. Extensive damage has however been caused to crops in Benin, Burkina Faso, Cameroon, Niger due to ‘excessive rainfall’, and ‘irregular rains and storms’ in Madagascar. As a result, despite the increase in production in Africa, the FAO describes African rice import purchases as ‘active’, with imports in calendar year 2012 and 2013 estimated to be 22% above the average for the 2009–11 period. FAO estimates rice imports into Nigeria (Africa’s largest rice importer) to be one-third above the average for the 2009–11 period. It attributes this in part to an import surge in response to government plans to limit rice imports. Imports are however projected to fall

back 7.15% in 2013 in the face of trade measures and expanded domestic production (+22% in the 2012–13 season compared to average production in 2009–11). This needs to be seen against the background of a projected 27% increase in total rice utilisation in 2012/13 compared to the average for 2009–11. This reflects rising per capita rice consumption (+16% compared to 2009–11). A similar trend of increasing per capita rice consumption is apparent in Côte d’Ivoire (+18%, compared to the 2009–11 average), with imports rising by 30% in the face of stagnant domestic production. A strong increase in rice imports into Senegal is also projected, with imports in 2012 and 2013 estimated at 43% above the average for 2009–11. This reflects production difficulties in Senegal in the 2011/12 and 2012/13 seasons, against the background of an increase in per capita rice consumption of only 5%. Rice production in Latin America and the Caribbean is projected to contract by 6%, led by a projected 14% decline in rice production in Brazil, the region’s leading producer. A 15% reduction in Haiti’s rice crop was projected by USDA in October 2012, with a marginal increase in Guyanese production (+2%) following a strong recovery in production in 2011–12 (+11.3%). FAO, however, reports good

AgriBusiness & Food Industry w March 2013

production prospects for the Dominican Republic rice crop, where government support to production is consolidating the 2% expansion in the 2011–12 season. FAO projects rice production difficulties in the EU (-10% in 2012/13 compared to 2011/12), although the USDA in October 2012 estimated only a 6% decline in 2012/13, compared to 2010–11. In contrast, the US, Australia and Russia are all expected to harvest bumper rice crops, while in Asia a 0.7% increase in production is projected. The global rice trade is forecast to reach 37.5 million tonnes (milled basis) in 2013, marginally above trade in 2012 (+0.54%), following growth of 15% in 2012 compared to the average for 2009–11. According to FAO, ‘while International rice prices were rather subdued in the first four months of 2012’, prices have shown ‘a tendency to firm, influenced by large government purchases and stock building in Thailand, and active buying by African countries and China’. The FAO report shows that prices fell by 6% from January to October 2012 compared to the corresponding period in 2011, although USDA showed considerable variation in price trends across rice varieties, with no clear overall trends emerging. n

Profile

AgriBusiness & Food Industry w March 2013

Interview

Kohinoor Foods is committed to bring authentic Indian taste globally: Amit Arora Kohinoor Foods Ltd. is synonymous with the fine taste of India in its authentic form. Since its inception, the company’s sole objective has been to spread the true Indian flavour globally. This is just the reason why it offers an extensive range that caters to all kinds of consumers in different parts of the world - from Basmati Rice, Ready to Eat products, Cook-in Sauces and Cooking Pastes to Spices, Seasonings and Frozen Food. The company exports its products to various global markets like USA, UK, Dubai, Canada, Japan, Australia, Singapore and other European countries. In a brief chat with AgriBusiness & Food Industry, Kohinoor Foods’ Business Head (Rice Exports) Amit Arora talks about the company’s endeavour to give the world the best-quality Indian rice, and other aspects of the trade, among other things. Excerpts: Amit Arora

Please tell us about overall scenario of International Basmati trade, and your own company’s status. India last year (2011-12) exported 3.2 million tonnes of Basmati Rice, most of which was shipped to Gulf countries including Saudi Arabia, Iran, Iraq, Kuwait & Yemen. In the current fiscal year India’s export of aromatic basmati rice has been robust and will surpass last year levels but is unlikely to touch 4 million tonnes mark as anticipated earlier. Kohinoor Foods Basmati Rice exports have steadily grown across the major geographies that we are present in e.g., Middle East, Asia Pacific, UK, USA & Africa. We have a well recognized market presence, strong product portfolio, efficient manufacturing capabilities, committed work force & enduring values; we will continue to invest & innovate in our products, processes & Distribution to work for a happier tomorrow. Flavour (Aroma) of Basmati is the main selling point. What efforts do you take to maintain high-quality aroma? The methodology of choosing the best seeds, paddy storage & preservation techniques with perfect ageing procedure, rice processing (milling) and world class

packaging goes long way in retaining the aroma of basmati rice. What is your unique selling proposition to approach and impress upon your target customers? We strive to maintain high quality standards in our products, packaging & processes and are driven by ethical values. As a company we align ourselves to the customer needs and adapts to the changes that serve them the best. We have the vision of bringing authentic Indian flavours to people all over the world, and want Kohinoor Foods to become one of the leading names, not only in the Rice, but the entire Food category globally. We intend to expand our product offering in both in Ambient & Frozen range in our export Food business operations. Modern retailing is emerging as a strong segment where the profit margins of retailers are high and low for rice traders. Despite this, rice traders are keen to sell basmati to retailers as the bulk of basmati consumers are high-end customers. In this regard can you share your thoughts & experience? Internationally, Modern Retail is an established & preferred trade channel

AgriBusiness & Food Industry w March 2013

and an important vehicle to connect with the customer. We feel that the high cost of sales in modern retail is largely offset by the brand exposure, consumer brand experience & sales volume that are generated over period time; it’s a longterm investment on the brand that needs to be carefully nurtured & monitored on a regular basis. Most of the Basmati traders are entering value-added segments due to reasons like new generation’s preference of ready-to eat food and snacks, and high profit margins. Do you have any plan to do the same? In our commitment to bring authentic Indian taste globally, Kohinoor in Food business has launched 'Paneer' (Indian cottage cheese) in 'Fresh & Frozen' brand in the select markets of Middle East, Asia Pacific and the US to a tremendous response. Besides, we have expanded our product portfolio (both ambient & frozen range) to Ready to Eat Curries & Meals, Readymade Gravies, Spices & Condiments, Instant Mixes, Indian Savouries (Namkeens), Frozen Bread & Snacks, Pure Ghee etc. to give a wide choice to our customers and add value & excellence to our export food business operations.

Profile

Privasia Trading

Offers unparalleled service

rivasia Trading has sales and service relationship with some of the most prominent names in the India Food Service Industry and is committed to helping them succeed in the industry and in satisfying consumer appetites. Privasia Trading is committed to delivering branded products that provide consistency and exceptional value at all quality levels. All our products and brands conform to the most

stringent standards of food safety, sanitation and consistency. Our Locations: Dedicated warehousing in Mumbai, Bangalore and New Delhi, and an expanding network of stockists spanning Calcutta to Chennai. A dedicated fleet of vehicles provides doorstep delivery to our customers with a goal of dispatching goods to our customers within a maximum of 24 hours from receipt of their order. Our regional marketing offices are located in Mumbai (Maharashtra), Bangalore

(Karnataka) and Gurgaon (Haryana). Our Business: Privasia Trading operates in one of the most basic of industries â&#x20AC;&#x201C; the distribution of food and related products and services to restaurants, caterers, hotels, club, hospitals, schools, ships and airlines â&#x20AC;&#x201C; wherever a meal is prepared away from home. Our Vision: To become Indiaâ&#x20AC;&#x2122;s leading Food Service Supplier by consistently offering unparalleled levels of quality, value and services across the country. n

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AgriBusiness & Food Industry w March 2013

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AgriBusiness & Food Industry w March 2013

Profile

Deva Singh Sham Singh

Maintaining an impeccable reputation for consistent quality

R S Chatha Managing Partner

eva Singh Sham Singh (DSSS) is one of India’s oldest and reputed companies, incorporated in 1920 and receiving the country’s 817th registered trademark. This family-owned company has an international reputation for milling and exporting the finest Indian traditional basmati rice. Indian traditional basmati rice is grown at the foothills of the Himalayan Mountains in the geographical region of Punjab, Haryana and Uttarakhand. The climate and soil, unique to this region of the Indian subcontinent, are essential to the cultivation of this particular grain. Recognised as a gourmet food product, basmati rice is arguably the most flavored and aromatic variety of this international dietary staple. Deva Singh Sham Singh is one of the largest exporters of Indian traditional basmati rice, holding a significant market share in over 15 countries worldwide. The company operates two state-of-theart processing plants and a modern research laboratory, with an installed capacity of milling over 12 MT per hour. Constant upgrading of equipment to reflect technological advancement has solidified their position as a leader in this field. In addition to paddy cleaning, drying, parboiling, milling, polishing

and grading machines, Buhler and Satake Sortexes for color sorting and state of the art LOMA metal detectors are part of the integrated processing lines. The finished product is then packaged on-site in a variety of consumer packaging. Company’s management philosophy is to integrate family tradition with international technical advances to ensure that DSSS continues to supply the highest quality products to the consumers worldwide. Besides being certified for ISO 9001-2000 and HACCP, DSSS has recently been certified for ISO 22000-2005, PAS-220-2008 by Intertek – Semko certification, Sweden and BRC, ITS testing services (UK) limited. DSSS has also started processing Organic Basmati rice after getting one of their processing facility certified for Organic processing. Under the recognized 817-Elephant brand DSSS has long supplied rice to the large Indian and Middle-Eastern ethnic markets in the United States, Canada, Australia, Europe and Middle East. DSSS has been a presence in the U.S. and Canadian markets since 1978, with the 817-Elephant trademark having been registered in these countries in 1984. Since that time DSSS has maintained an impeccable reputation for consistent quality and an unblemished record of FDA approval. Over the years it has responded to the increasing demand from mainstream consumers and now supplies basmati rice to several large Grocery and Cash & Carry chains. These include Giant, Safeway, AP and Wegmans in the United States and Loblaws, Walmart and Sobey’s in Canada. Through their distributor in Canada DSSS supplies Basmati rice to Uncle Ben’s in Houston, Texas and to EFFEM Foods (a subsidiary of Uncle Ben’s) in Ontario, Canada. The company also sells rice directly to GOYA Foods in the U.S. 817-Elephant basmati rice was also supplied to Costco Foods in Montreal, Quebec in 5kg bags from 1996-1977. Basmati rice under the DSSS

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Pure Basmati Rice Butterfly brand is also sold in the Canadian market; an application to register this trademark in the U.S. is currently in process. For the past ninety years Deva Singh Sham Singh has built upon its extensive experience and resources to diversify and improve its operations. Combining technological advancements with strict standards of quality has allowed them to retain the impeccable reputation of their food product while expanding to meet changing consumer demands. DSSS is dedicated to upholding its tradition of excellence and remaining the premier exporter of basmati rice worldwide. The company’s worldwide dealer network covers Australia, Austria, Bahrain, Canada, Cyprus, israel, Jordan, Kuwait, Lebanon, New Zealand, Saudi Arabia, Israel, Palestine, U.A.E., U.K. and the U.S.A. Over the years, DSSS has received numerous awards from various national bodies paying testimony to their dedication to quality, and their outstanding performance in the international market. Among the awards accorded to the company in recent years are the President of India National Award, the State Export Awards, the State Productivity Awards and the APEDA Awards. The Company has the distinction of being recognized as an Export House by the Government of India.

AgriBusiness & Food Industry w March 2013

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AgriBusiness & Food Industry w March 2013

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AgriBusiness & Food Industry w March 2013

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AgriBusiness & Food Industry w March 2013

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AgriBusiness & Food Industry w March 2013

Profile

Sifter International

S. C. Sharma

elcome to Sifter International, a legacy of trust, reliability and honesty along with new mantra of youth, dynamism and aggressive â&#x20AC;&#x201C; a company that is committed to bringing world class agro based food processing machinery to its customers. Sifter International is a leading manufacturer of agro based food processing machinery which started in 1978 in India. With the experience of more than 3 decades and a team of more than 300 people, Sifter International is a renowned name worldwide which has successfully exported machinery in more than 40 countries like USA, Ukrain, Iran, Iraq, Syria, UAE, Balgium, Romania, Bulgaria, Nigeria, Ivory Coast, West Indies, Bangladesh, Sri Lanka, Nepal, Spain, Mozambique, Malawi, Republic of Sierraleone, Borkinofaso etc. Sifter International an ISO 9001 (Quality Control) & ISO 22000 FSMS (Food Safety Management System) Registered Firm & Group companies are equipped with state â&#x20AC;&#x201C;of the-art production plants in the heart of industrial town Faridabad, Haryana. The company is having CE certification

for supplying the machines to European countries. The company has been engaged in the manufacturing of wide variety of agro based food processing machineries like: 1. Rice Mill 2. Wheat Roller Flour Mill 3. Dal and Besan Mill 4. Dehulling of Seeds 5. Essential Oil & Oleoresin 6. Cattle Feed Machinery 7. Maize Starch, Grit Machinery 8. Guar Gum Powder Machinery 9. Spices Machinery 10. Extraction From Herbs 11. Fruit Juice Machinery 12. Tomato Processing Machinery 13. Potato Chips Machinery 14. Solvent Extraction Machinery 15. Basic Drugs From Roots Our manufacturing facilities are equipped with latest machines like CNC Laser Sheet Cutting, Bending, Punching Machine, CNC Turret Punch Press, CNC Press Brake, NC Shearing Machine, Universal Milling Machine, Dynamic and Static Balancing Machine & Grinding Machine to keep pace with changing technology and requirement. Our R&D unit of Sifter International is equipped with the state f art technology & professional from the different field of engineering. With the feedback and suggestion from the global customer sifter continuously work on improvement and innovation of technology. In sifter R&D unit various activity such as development of new technology, improvement of existing machines, development of new process technology, process optimization etc. have been carried out to meet the

AgriBusiness & Food Industry w March 2013

SIFTER INTERNATIONAL, INDIA received the World Quality Commitment Award in the Gold Category

demand of our esteem customers. At this unit demonstration of various process and machineries have been carried our from time to time. It also organizes various demonstrations on clients request. In our R&D unit w have installed complete cleaning & grading plant of any type of cereals, de-hulling machines for various seeds, different types of dries like tumbler drier, spray drier, spin flash drier, vacuum drier, scrap surface drier, three stage evaporator, fludized bed drier, ACM grinding system, dall mill, rice mill machines and degerminator & dehulling machine. At Sifter International, it has always been our endeavor to provide quality, consistency, and excellent service. Business Initiative Directions is the leading organization awarding companies worldwide. We are awarded for the WQC (World Quality Commitment) International Star Award in the Gold Category at Paris, France 2009, We received Global award for Perfection Quality and Ideal Performance at Berlin (Germany) for the year 2010. www.sifterinternational.com

AgriBusiness & Food Industry w March 2013

Honey Industry

Indian Honey

Market Forecast 2013 A. K. Singh, President & CEO, Little Bee Impex

013 could be a different year for Indian honey export. Even though honey crops are better than anticipated earlier in the season, exports have not picked up. Exporters are not taking risk due to loss incurred last year, arising out of frequent intervention, detention, extensive/intensive examination by regulatory bodies and delay in clearance of honey consignments at various ports in USA. However, If the prevailing opportunities and constraints are explored in relation to honey export to USA & EU, this year can turn out be a very profitable year for all of us. The World Market and Trade reports

indicate that honey continues to be in great demand over United States and for many major foreign countries due to its shortage. Honey prices at both the wholesale and retail levels also continue to be strong.

156-158 million pounds. While this is much better than last yearsâ&#x20AC;&#x2122; figure of 148 million pound crop, it is well below early spring crop projections of about 170 million pounds. Demand for this honey has been high and we have seen prices for this honey continue to escalate with offerings as high as 15 % higher than the 2011 crop.

POTENTIAL MARKET SITUATION FOR EXPORT TO USA Honey Crop The early 2012 U.S. honey crop entered the market at price levels about 7% higher than the same period for the 2011 crop. The 2012 U.S. honey crop is still pouring in, and projections for this honey crop are at approximately

Consumption Total U.S. consumption is above 410 million pounds. The U.S. per capita consumption of honey is around 1.3 pounds per year. Honey in all color grades is imported in order to meet total

Table - U.S. Honey Imports, by importing country, calendar year Country

2000

2001

2002

2003

2004

World

90,056

65,700

91,907

90,906

80,994

1,05,677

1,25,939

1,05,676

1,04,984

95,475

Argentina

45,010

20,472

8,692

4,425

3,620

22,776

28,878

20,379

10,043

10,899

17,414

33,502

1,902

5,751

14,356

7,979

9,792

13,582

13,263

15,707

19,378

17,430

20,738

27,826

2,465

4,645

6,948

7,632

11,090

7,671

13,648

13,137

18,462

26,912

154

145

5,363

7,297

3,690

3,783

10,806

12,103

13,598

17,709

10,036

14,981

Canada

12,960

10,564

19,617

11,607

10,172

10,252

11,576

13,961

17,305

8,302

11,053

7,148

Uruguay

2,478

5,968

5,308

3,137

4,010

1,525

1,893

227

852

7,083

2,076

4,241

11,544

7,350

3,254

1,452

2,580

3,192

1,411

1,625

3,325

2,846

1,039

3,534

442

220

141

1,891

4,150

9,068

15,396

2,326

Vietnam India Brazil

Mexico Malaysia Thailand

2005 2006 2007 2008 2009 Metric tons

2010

2011

1,13,929 1,30,766

161

1,302

4,445

799

769

518

1,795

790

956

1,847

1,699

1,637

26,819

17,713

7,583

22,827

26,916

29,366

32,149

17,755

11,252

1,547

1,531

New Zealand

195

114

247

195

355

650

1,022

1,047

968

Taiwan

759

2,408

311

753

3,983

5,576

1,755

903

174

245

164

206

109

140

196

175

206

661

573

2,226

1,596

337

1,134

502

635

440

453

661

2,724

10,077

12,387

9,621

8,887

10,388

8,587

8,103

7,963

9,960

1,990

China

Dominican Republic 131 Ukraine All Others

Source: U.S. Census Bureau

AgriBusiness & Food Industry w March 2013

Updated: 4/3/2012

Honey Industry demand. According to an estimate, the share of imports in U.S. over honey consumption is more than 61 percent. (Source: USDA/ERS, Sugar and Sweetener Outlook, March 2011). About half of the honey sold is through retail channels, with the rest being sold in bulk or for use in the foodservice industry. (Source: NHB Packer Tracking Survey) Imports To meet demand gap, the United States imported honey valued at $387.9 million in 2011, primarily from Argentina, India, Vietnam, Brazil and Canada. Looking at the above figures, It can be easily concluded that India - With due diligence in testing for residues, adulteration, lead, , has a good chance of exporting honey in large quantities to US market . India produces a good volume of white, extra light amber, and light amber honey. While the European ban on this honey was lifted over a year and half ago, a large volume of this honey still enters the U.S. market. With the U.S. Customs and the

Justice Dept./FDA â&#x20AC;&#x153;frequent intervention and long detention " , shipments of Indian honey entering the U.S. has slowed down .It will further slowdown , if dialogue at the Government level for smooth entry of honey shipments at US ports is not initiated at the earliest . A BRIEF VIEW ON EU HONEY MARKET The European Union is one of the biggest consuming markets in the world. Despite considerable honey production in member states, the EU additionally imports over 1, 48,000 tons. Main suppliers have been China, Argentina, Mexico, Chile and Brazil. There still remains a very good opportunity for export of organic honey from India to Germany, Belgium, Netherland, UK and other member countries. India has comparative advantage of GMO free honey. With regards to GMO, various EU member states act differently. This will lead to a situation of unfair competition for EU based honey companies. While European ban on Indian honey

was one and half years ago, a large volume of this went to USA.. China is playing havoc with price and creating a situation of unfair competition for normal honey in EU. As a consequence of this, a large chunk of conventional honey will still go US packers and food processors despite difficulties at ports. A worldwide shortage of bees, increased consumer demand, and diminishing forage area for bees to gather nectar has all contributed to a worldwide honey shortage. Price offerings in the world market are higher than last year. Demand and supply gap created would lead to considerable hike in prices worldwide. Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal advisors. n

Dwindling forest cover threatens bees in the Western Ghats

he Western Ghats Task Force of Karnataka has expressed concern over decline in honey-bee colonies in forests. Task Force Chairman Anant Hegde Ashisar said that the number of honey-bee colonies is coming down in the forests because of a decline in forest cover, loss of tree varieties that house these colonies and use of pesticides for crops. Rise in rubber plantations in villages, has led to farmers removing flower-bearing plants, denying nectars to bees. Ashisar said that many contractors, who get rights to collect honey from the Forest Department by paying a small sum in the tendering process, extract honey by setting fire to the colonies. This is also one of the reasons for the fall in the number of honey-bee colonies in forests, he said. SUGGESTIONS Ashisar said

village

forest

committees should be entrusted with the task of collecting honey from bee colonies in forests And the Forest Department should do away with contractors. Ashisar suggested that the Forest Department should encourage growing tree varieties that house honey-bee colonies in villages adjoining forests. The nurseries of Forest Department should supply such varieties to farmers. The departments concerned â&#x20AC;&#x201D;Forest, Horticulture, and agriculture and horticulture varsities â&#x20AC;&#x201D; should work together for development of honey-bee colonies, he said. Experts from agriculture universities have studied the pattern of honey-bee culture in the forest areas of Yellapur in Uttara Kannada district. Their study report will be released soon, he added. Role of NBB Few months back, the National Bee Board and Forest Research Institute

said that it would work jointly to promote honey culture programmes in forestry sectors, which will be very useful for poverty alleviation and for improvement and social upliftment of the poor villagers, who will participate in beekeeping and honey culture. This decision was taken following a meeting between Indian Council of Forestry Research and Education DG VK Bahuguna, and National Bee Board executive director BL Saraswat in the presence of FRI Forest Entomology division head Mohammed Yusuf.

AgriBusiness & Food Industry w March 2013

Profile

Dhiman Systems (India) Ltd.

Manufacturer of Hard Candy Forming Machine

DSIL,

India manufactures more than 8 types and various models of Candy forming machines with production capacity from 500kg/shift to 6000 kg/ shift and Lab. Candy Forming machine. Different models of machines are suitable for manufacturing different type of Candy. In these machines liquid filled,

powder filled and bubble gum filled candy can be produced. DSIL manufactures high speed candy forming machine suitable for filled or unfilled candies up to production of 6000 kgs.in 8 hours depending upon shape, size and weight of the candy. The candy formed in this machine is perfect, uniform and without any pips. Due to high pressure mechanism the punching of design and logo is very sharp. The scrap formation is also very low. Minimum size of candy that can be formed is 16mmx16mm and maximum 60mmx40mm.Maximum thickness of candy possible is 24mm.Power requirement is only 6 HP in all. There is separate geared motor for Swivel conveyor and wire mesh of conveyor thereby eliminating moving parts and reducing maintainas. With

AgriBusiness & Food Industry w March 2013

the installation of DSIL electrical control panel fitted with variable speed frequency controller the speed of die, wire mesh and swivel can be varied according to requirement. The speed of sizing wheel can be kept fixed or there is optional provision of installing separate motor and frequency converter for sizer there by giving variable speed to it. With the installation of DSIL Batch Former, DSIL Rope sizer, DSIL Three Way Conveyor and DSIL Electric control panel, this machine will work fully automatic. Apart from Candy forming this machine can also be used for Bubble gum/ Chicklet forming and Toffee cutting. Several DSIL machines are working with leading manufacturers in India and abroad. www.dsilgroup.com

AgriBusiness & Food Industry w March 2013

Branding

Goli Vada Pav

Mumbai’s iconic food Vada Pav becomes a brand S

. Venkatesh, a 42-year-old B. Com graduate from Mumbai University, has transformed a street food-widely sold in Mumbai and Maharashtra and considered as poor man’s food--into a brand--Goli Vada Pav. He had a successful career in corporate financing, which he got into after graduating, including his own corporate advisory firm. Venkatesh says he always wanted to get into the food business. Should he start a venture that sells idli and dosa, though typically South Indian but quite popular across regions, or should he sell vada pav, which was typical to Mumbai, where he lived? Walking with a vada pav in hand one day in Mumbai, he noticed a banner for McDonald’s. It struck him then that the vada pav sold on Mumbai’s footpath and a burger sold by a glitzy McDonald’s outlet had a lot in common. He lists them – both are fast food, to be eaten on the move, a filling between bun or a ‘pav’. More importantly, vada pav does not require side dishes to eat it with or a plate and spoon to eat from. It can be wrapped in a piece of paper and you can munch away at it even as you are walking or sitting in a bus or an autorickshaw. This meant that it will not require as much space as an outlet that serves idli anddosa. Real estate being prohibitively expensive in Mumbai, it was a no-brainer for Venkatesh. Vada pav won. Thus came into being Goli Vada Pav in 2004, which Venkatesh funded with his savings. By this time, Venkatesh had wound down his corporate advisory

The first outlet came up in Kalyan, a suburb of Mumbai. It did roaring business and very soon there were a handful of outlets. But, things did not go the way Venkatesh expected. Problems cropped up. He was confident of what he was doing. He persevered. The venture got funded firm. The initial investment was about Rs 40 lakh. It soon increased to Rs 1 crore as the business got under way. Goli Vada Pav is majority-owned by Venkatesh and his friend and co-founder Shivadas Menon. The first outlet came up in Kalyan, a suburb of Mumbai. It did roaring business and very soon there were a handful of outlets. But, things did not go the way Venkatesh expected. Problems cropped up. He was confident of what he was doing. He persevered. The venture got funded. They planned a large-scale expansion. Disaster struck and that expansion had to

S. Venkatesh

be abandoned. Venkatesh says he was determined not to give up and hence worked on overcoming the problems. It worked. What he thought was essentially popular only in Mumbai suddenly found a market outside the country’s commercial capital. Someone offered to start an outlet in Nashik. One store led to another and very soon Goli Vada Pav found itself outside Maharashtra. Now it has 150 stores, a majority of them run by franchisees. Venkatesh hopes to have a pan-India footprint. It sells about 75,000100,000 vada pav a day. n

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83 CII-HPCL TRAINED youths get jobs at food chains

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est Bengal Labour Minister Purnendu Basu gave away appointment letters to 83 youths trained under the CII-HPCL Swavalamban project. These youths, which include both men and women, have been offered assignments at leading fast food chains including Dominos, Future Group, Speciality Group of Restaurants and Café Coffee Day. All the candidates underwent a two-month long training programme under CII-HPCL Swavalamban in partnership with Future Sharp Skills Ltd, a division of Future Group, said a press statement issued by CII (Confederation of Indian Industry). According to Basu, there are over 7 million registered unemployed youths in West Bengal. “An endeavour such as this is what we require to accelerate our employment initiatives. The State Government will be happy to help such endeavours,” he said. With a view to develop requisite skills required for industries, CII has focused on skill development programmes across the country under the CII-HPCL Swavalamban Project. About 9,427 youths have been trained under the project across the country.

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Future Group to launch Foodhall

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ess than two years after testing the waters in the gourmet food space, Kishore Biyani-led Future Group is set to expand its newest business vertical, Foodhall. In the pipeline are plans to open two stores in Delhi NCR in February followed by one in Pune next month. Foodhall stores are profitable and we are looking at scaling up presence," said Kishore Biyani, founder and Group CEO, Future Group. "We are looking at opening stores in newer cities. The target to open at least 16 stores by 2013-14 is underway," Biyani said. The retailer opened its first Foodhall in early 2011, a 15,000 square foot store in Mumbai with a live in-house bakery. This was followed by a much larger 30,000 square-foot store in Bangalore. While Future Group plans to scale up operations and catch up with the earlier plans to open more than two-dozen stores by 2013-14, it plans to eschew the

grand floor-space in favour of a smaller format. "The new stores in Delhi will be 8,00010,000 sq ft, as it fits the market needs there," said Biyani. The first Foodhall in the national capital region (NCR) will be opened at Vasant Kunj followed by one in Gurgaon. The company aims to roll out large flagship stores with satellite stores around them in key cities. It is in the process of studying how many satellite stores one flagship Foodhall store can command. While the gourmet format is an expensive business to build, with high capex requirements, the margins are correspondingly high despite low intensity footfalls. Thus, while the a large format modern retail store normally breaks even in five-six years, Foodhall gourmet stores are already in the black less than two years into their existence, riding on high margins and good product portfolio. Sources say the average margins at Foodhall is about 25%, which by Indian retailing standards is the highest. The gourmet format food store has a long way to go to catch up with value formats. Other players addressing a shift in consumer preferences and an attempt to tap it early on include the Tatas' WestSide, Nature Basket of the Godrej group, and Spencer's.

Asia, especially India, becomes focus point for retailers

ith 60 percent of the world's population and some of the fastest growing economies, Asia has emerged as the most promising market for retailers around the world. According to a recent industry research Asia will remain the main engine of global retail development with an average annual growth rate of 6 percent, between 2011 and 2015. The expected growth rate in these regions is higher than the others. Asia also projects phenomenal progress in online retailing with an average growth rate of 20 percent per annum.

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A popular survey also highlights India as one of the most preferred retail destinations. The government’s decision to allow 100 percent FDI in single brands will further boost the Indian retail industry. New international retail giants like Walmart have already begun the process of setting shop in India and the existing players are expanding their reach to the country’s tier 2 and tier 3 markets. As competition increases, retailers are interested in solutions that will help them differentiate themselves from their competitors and attract customers.

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Spencer’s to launch global-size retail chains

or name s a k e , ‘supermarkets’ abound in the country, but world class, full-fledged, sprawling hypermarkets, like the ones in advanced countries that offer the universe, are yet to debut in India. RPG group-led Spencer’s Retail is set to change that, at least in a certain sense. “In select hypermarkets, we will expand our offerings on the service side, bringing them closer to what is actually offered in the West, in terms of the wide range of products and services,” said Mohit Kampani, CEO of Spencer’s Retail. Apart from food, apparel and other goods, Spencer’s will offer an array of services like florist, pharmacy, in-store cafe, barber shop, laundry and so on. Kampani plans to make that list of services longer with small bookstores and quick service restaurants to trigger impulsive purchases among consumers. Spencer’s Kolkata branch will lead the pack, to be followed by similar hypermarkets elsewhere. While in-store cafe and bakery have by now become integral to some new-age supermarkets, other offerings like electronics, car accessories and jewellery are slowly making the scene exciting. But in terms of space, they are still small to be called hypermarkets. Typically a Western hypermarket

takes up between 1 lakh square feet and 2.6 lakh sq feet. But Spencer’s ‘hypermarkets’ will be spread over just 29,000 square feet. Spencer’s is aware size does matter, but, in a country where huge urban commercial spaces are hard to come by, it plans to focus on chain expansion instead. So, 56 new Spencer’s marts will open in the next three years. Andhra Pradesh, Tamil Nadu, Karnataka, West Bengal, Delhi NCR, Uttar Pradesh and Maharashtra are among the states that will host Spencer’s hypermarkets. Besides state capitals and major cities, Spencer’s will foray into Tier-II and Tier-III towns. Kampani links this move to high double-digit same-store sales growth of some stores in nonmetros. (Same-store sales growth refers to sales logged by a retailer’s existing stores during a certain period vis-a-vis the corresponding period a year ago.) Spencer’s will sharpen focus on private label (or in-house) brands which now account for only 15% of its sales. “The target is 25-30%,” says Kampani. Private label brands, he says, give hypermarkets control over pricing, which is important in a regime of Maximum Retail Price or Mrp. “We are looking at extending our private label brand to frozen foods, bakers and so on.”

Jubilant Foodworks registers 28% profit in Q3

ubliant Foodworks Ltd that operates the Domino’s Pizza and Dunkin' Donuts brand in India, has reported a 27.9 per cent rise in its standalone net profit at Rs 37.71 crore for the quarter ended December 31, 2012, backed by healthy store additions. The company had posted a net profit of Rs 29.47 crore in the corresponding period in the last fiscal. Total income during the third quarter also went up by 39.02 per cent to Rs 385.15 crore from Rs 277.04 crore in the year-ago

period, it added. Meanwhile, Jubilant Foodworks Ltd President and CFO Ravi Gupta said the company would be adding 110 stores of Domino’s Pizza and 10 of Dunkin’ Donuts in the quarter. Gupta said the company has undertaken price hikes in June and November. In a presentation the company said raw material costs were up 45 per cent at Rs 84 crore and the tax outgo was higher at Rs 17 crore against Rs 14 crore a year ago.

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Delhi Govt to train 20,000 for retail jobs

fter announcing its decision to make Delhi the first state to implement FDI in retail, the Congressled government has taken another step in the direction. The Delhi government recently announced the increasing of its target enrolment under Swarna Jayanti Shahari Rozgar Yojana to 20,000 this year from the previous target of 1,500. The plan includes opening 120 centres across the city to impart training in retail trade to unemployed youths. "There is a 15 per cent increase in the number of training centres. The number of training agencies have also been increased from last year's 10 to 36. With the coming of FDI in trade, our focus is on training the youth in retail trade," Director of Mission Convergence Santosh Vaidya said. Promising gainful employment to youths under the vulnerable population category, government officials said 70 per cent beneficiaries have found employment under the scheme. "Of the 120 centres across Delhi, the growing focus is on retail trade, apart from beauty care, hardware repair and data entry operations. Training in retail trade can easily get unemployed youths jobs in the ever-growing shopping malls," the official said. The Delhi government has also set itself a target of imparting driving skills to 300 women through a partnership with Azad Foundation this year. 'Women on Wheels' is the signature initiative of Azad Foundation — which gives training to women chauffeurs by imparting driving skills, making the women understand the mechanics of a car, training them in handling emergencies while driving, teaching best practices related to driving, rules and regulations related to driving and honing their map reading skills.

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ITC to build up consumer goods facility

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Nichrome opens new R&D Center

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Ltd has b e e n allotted nearly 40 acres at Panchla approximately 35 kilometres from Kolkata for setting up an integrated consumer goods Nazeeb Arif m a n u f a c t u r i n g and logistics hub. According to an ITC spokesperson, the company will start with manufacturing packaged foods, to be followed by other consumer goods, from the Panchla facility. Although the company did not reveal the particular project details, the facility is a part of its proposed Rs 3,000 crore worth of investment plans in the State. The development is considered as a major breakthrough for the Trinamul Congress-led West Bengal Government in attracting big ticket investments in the State. According to sources, ITC is the first major firm investment commitment received by the State, ever since Mamata Banerjee Government came to power in May 2011. Confirming the news, Nazeeb Arif, Vice-President, Corporate Communications, ITC, said: “We recently received the possession letter for the land. It will take a couple of days to complete the formalities.” Located off the National Highway 6 (NH-6) – 35 km west of the city – the land was previously under the possession of the West Bengal Industrial Infrastructure Development Corporation (WBIIDC). According to a source in State Government, ITC sought land for the project way back in 2007, during the Left Front’s tenure. Though the State Government identified the land, it could not be handed over to ITC due to legal complications. As an alternative, another piece of land at Uluberia was identified and a little over 18 acres was handed over to ITC in 2010. Another integrated consumer goods manufacturing and logistics facility is expected to come up at Uluberia (in Howrah) too.

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S.V.Joshi, Chairman, Nichrome India Ltd., E.K.Kumar, General Manager, Asia Pacific, Tata Global beverages Ltd. and Harish Joshi, M.D., Nichrome India Ltd.

ichrome has opened a state-of-theart and modern manufacturing infrastructure spread across 12 acres at Shrimal, near Shirwal, about 45 km south of Pune. It has over 150 skilled work-force for planning, engineering, automation, supply chain, machine assembly, product trials, testing, commissioning and service. The new R&D Center and the office building were inaugurated by E. K. Kumar, General Manager, Asia Pacific, Tata Global beverages Ltd. Covering a total area of 12000 sq ft, having capacity to house 150 persons, the new R&D center houses the complete Engineering and Design facility with hi-

tech 3D modeling software, parametric design and product data management facility. The new facility has a Training Center for conducting customer training programs, a Pouch & Brand Gallery. It is also equipped with a Product and Pouch Testing lab. While inaugurating the new office, E. K. Kumar said, “The association of Tata Global Beverages Ltd. goes back to 1985 when Tata Tea launched the 1st pouched tea in India using Nichrome machines.” Nichrome first developed an electronic weighing system on its packaging machines for Tata Tea back then. 17 years on and more than 70 machines later, Nichrome is still a preferred packaging partner of Tata Global Beverages. Established in 1948 in Pune, Nichrome ventured into the world of packaging in 1977 and since then has achieved a distinguished repute in the industry. With over 35 years of experience in Design, Development and Manufacturing, and 5000 installations across 40 countries, Nichrome has evolved as a premium brand for the packaging needs of the market.

India should review FTA to boost trade

ndia should review Free Trade Agreements (FTAs) that it has entered into with ASEAN, Japan and Korea to boost farm exports, according to a discussion paper co-authored by CACP chief Ashok Gulati. The paper, authored by threemembers, also recommended the government to formulate "more stable" trade policy because the long term trends suggest that Indian agriculture is globally competitive and this potential can be tapped better so as to benefit the farming community. "It is a pity that in the recent FTA type arrangements that India has entered into with the ASEAN, Japan and Korea, no effort has been made to stimulate agricultural trade flows," said the paper. Stressing that there is a scope to increase farm trade with East and South East Asian countries, the paper

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suggested the government to review the substantial exclusion of farm products from FTAs signed particularly with Association of Southeast Asian Nations (ASEAN), Japan and Korea. It is necessary to reach fresh agreements with these countries to reduce and even remove the impediments in the two way trade, it said. The Commission for Agricultural Costs and Prices (CACP) is a statutory body under the Agriculture Ministry which advises the government on price policy for major farm items. Gulati said in the discussion paper: "One feature of all these agreements (FTAs) is that there are substantial exclusions of agriculture products from tariff liberalisation. India has excluded almost all the principal agricultural commodities that feature in international trade."

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Sifter gets Rs. 150-cr Ruchi Soya project

ifter International, which is currently handling 75 turnkey projects, has recently got a massive Rs. 150 crore project--the worldâ&#x20AC;&#x2122;s largest plant, which is under execution and aimed for Guar Gum powder & derivatives. It belongs to Ruchi Soya Ltd. and based near Mundra Post in Gujarat. If processed food market is a vital segment, machinery that furnishes its silhouette is no less important. This is where innovative technology, groundbreaking contraptions, and novel developments hold ground. Need for high volumes are the requirement of the hour in a scenario where fierce competition prevails and the fittest survives. This increasing demand for automation in the food industry is well met by Sifter International, a Faridabad based bellwether. Ranked amongst 62

top companies in the world, the recognition being conferred at a convention held in Paris in 2009, the ISO 9001: S.C Sharma 2008 and ISO 22000 FSMS accredited company is banked upon by over 5000 satisfied clients from across 47 plus countries worldwide. â&#x20AC;&#x153;We are the only company in the world manufacturing the widest range of agro based food processing plants. Hence, we have no competitors. In terms of quality, we are the numero uno. 100% timely delivery of orders is our forte,â&#x20AC;? declares a debonair and energetic S.C Sharma, MD, sifter International.

Rigid Regulatory Framework a hurdle in India: COO, Syngenta AG

wiss agrochemical company Syngenta is planning to double its revenue from India in the next three years. India contributes less than 5% to the group's total turnover of $14.2 billion. "India is an emerging market for us. We expect to cock a double-digit growth in India driven by rice, corn and vegetables. We will be launching at least a dozen new varieties in the market this year," said Davor Pisk, chief operating officer, Syngenta. The company has recently acquired Devgen, the Belgium-based agricultural company, which has a strong base in hybrid rice segment in India and Southeast Asia. "We have become stronger in hybrid rice seed market in India, which comprises 5% of the total seed space. We will use Devgen facilities to develop and market hybrid rice seeds and become the number 2 player in this space in the next two-three years," he said. The Swiss company is also focusing on its patented Tegra technology, which has been developed specifically for the

Indian market to become a dominant force in the rice seed space. "We are investing significantly in Tegra. Farmers of Tamil Naduand Andhra Pradesh, who are availing this service, have enhanced yields up to 30%. We expect to engage more farmers with this service," he said. The Tegra package includes seed, raised seedlings, transplanting, labour for logistics while transplanting, and application of herbicides at the time of transplanting, besides advisory on agronomic practices. "Paddy seedlings are grown by the company in a special media, comprising straw, soil, nutrients and chemicals and are replanted after 15 days with special transplant machinery in the farmers' fields, cutting down heavily on manual labour," Pisk said.

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Indian Food processing Industry to touch $ 194 billion by 2015

he total valuation of the food processing industry is expected to reach $194 billion by 2015 from a value of $121 billion in 2012. This was indicated by Swapan Dutta, deputy director general of ICAR at the valedictory session of Agri Horti Fest 2013, organised by Indian Chamber of Commerce. The net export of processed food is expected to outreach its present value of $43 billion. Dutta said that the sector directly employs 13 million and 35 million people are indirectly involved. He urged for higher involvement of scientists and policy makers to help increase productivity enabling farmers to earn more. He said that higher investments should come in for infrastructure development to store perishable goods and reduce their wastage during buffer production. West Bengal minister for food processing and horticulture Subrata Saha said that identifying the need of farmers, approaching them and working closely with them is the need of the hour. Agricultural marketing needs to be focused on and promoted to match production in order to attain fruitful results. Regarding development of food processing industries in the state, he said that multi-pronged strategies have been taken by the state government to reduce wastage of produced goods. "Extensive loss of tomato will be stemmed by the state government through construction of food processing centers in Cooch Behar. In similar ways, food processing units will be constructed for storing and processing perishable items like mango, litchi, pineapple and orange across the state. Food parks are developed to capture the immense potential of the industry," Saha said. Saha requested Indian Chamber of Commerce to invite medium and small scale entrepreneurs to participate in developing the state's food processing industry.

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Buffet & 3G Capital to buy Heinz

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Horse drug found in EU meat

a r r e n Buffett’s B e r k s h i r e Hathaway and Jorge Paulo Lemann’s 3G Capital agreed to buy HJ Heinz in a deal for about $23 billion as the billionaires increased their bets on consumer products. The buyers will pay $72.50 a share, compared with Wednesday’s closing price of $60.48, according to a statement on Feb. 14. Berkshire will spend about $12 billion to $13 billion on the deal for the maker of condiments and Ore-Ida potato snacks, Buffett told CNBC. The deal will also be financed with cash from 3G affiliates, plus the rollover of existing debt, and is valued at about $28 billion including debt, according to the statement. Heinz benefits from “very powerful consumer goodwill in the developed markets and a very early start in China and India, two of the largest developing markets”, Tom Russo, a partner at Berkshire investor Gardner Russo & Gardner said in a phone interview. “It will not be hard to service the debt.” Buffett, 82, has been seeking deals after the cash pile at Omaha, Nebraskabased Berkshire climbed to more than $45 billion. He has previously wagered on consumer products through equity investments in Coca-Cola and he helped finance Mars’ purchase of chewing gum maker Wrigley. The condiment maker, led by CEO Bill Johnson since 1998, had gained 17% in the past 12 months as it boosted sales in developing economies.

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uropol - the European counterpart of Interpol that is in charge of law enforcement over all European Union countries - has finally kicked off a massive investigation into the horse meat scandal that originated in the UK, after it was confirmed on Thursday that equine meat containing a dangerous drug had entered the EU food chain. Recent tests by UK's Food and Standards Authority found the presence of banned drugphenylbutazone (bute) in horses slaughtered in the UK. The FSA checked 206 horse carcasses between January 30 and February 7, 2013. Of these, eight tested positive for the drug, six of which were sent to France and may have entered the food chain. The FSA will now work with the French authorities to trace them. From this week, all meat are being tested for brute. The agency has now developed a

testing regime which enables results to come through in 48 hours. Agriculture ministers have agreed on a three-month programme of DNA testing of processed meat across the EU as the horse meat scandal intensified. UK's environment secretary Owen Paterson emerged from Wednesday's talks in Brussels to announce a threemonth, EU-wide DNA testing regime to trace horse meat and to check processed meat on sale for "bute" - the powerful horse anti-inflammatory which could be a health risk if passed on to humans. Paterson after meeting Europol and Eurojust (EU's judicial division in the Hague) said, "I'm very pleased that Europol is formally involved in the investigation on meat fraud. I met Europol and Eurojust, who offered their full support to the national law enforcement agencies involved in meat fraud across Europe. This is an incredibly important step. It's increasingly clear that this case reaches right across Europe. As president of the EU Council of Agriculture Ministers, Irish minister for agriculture Simon Coveney chaired a meeting with the EU commissioner for health Tonio Borg and and ministers from member states directly affected by the serious disclosures of mislabelling of processed meat products.

DS Group to spend Rs. 150-cr on confectionary segment

oida-based Dharampal Satyapal (DS) Group plans to invest Rs 150 crore to expand its confectionery business over the next two years, focussing on southern markets. “South India accounts for 26 per cent of Rs 9,000-crore confectionary market and we see lot of scope in expanding non-gum and non-chocolate (NG-NC) segment in this region,” Atanu Gangoly, Head of Confectionery and Powdered Beverages division, DS Group, said. The company had already invested Rs 150 crore in manufacturing, R&D and marketing in the last year, he said.

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DS Group, which currently sells mini chewing gums under the brand ‘Pass Pass Chingles’ would also launch over 10 products in NG-NC segment, Gangoly said. The target was to take the revenue contribution of the south from 12 per cent to 20 per cent in the confectionary division of the company, he added. The division is expected to earn Rs 140 crore revenue in 2012-13 while the total group’s turnover is projected at Rs 3,000. The privately-held group has presence in food and beverages, hospitality, agroforestry, tobacco and infrastructure, among others.

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Britannia & Parle to strengthen glucose biscuit segment

iscuit majors Parle and Britannia are overhauling their brands with new formulations and ad campaigns. The mass glucose segment is estimated at nearly Rs 5,000 crore and comprises 30 per cent of the biscuits market. A Nielsen report says its contribution has fallen to 24 per cent. Recently, Mumbai-based Parle Products invested in a new campaign for the largest selling glucose brand, Parle-G. After a gap of nearly two years, the biscuit major is now back with a new campaign, but without the endorsement of Aamir Khan who was part of the ‘G for Genius’ campaign. According to Mayank Shah, Group Product Manager, Parle Products, “Glucose being the largest category, it has been facing slower growth at 8-10 per cent compared with the new and smaller categories such as cookies and crème, which are growing at 20 per cent. Unlike the glucose category, which is already penetrated, cookies and crème segments have much lower penetration levels between 12 and 15 per cent, helping them grow at a faster pace than the glucose segment.” Parle-G also shifted its agency to O&M recently and expects to take

forward the ‘G for Genius’ theme further to exploit the power of this idea. “Today, the Parle-G campaign can work even without Aamir Khan. The purpose is to evolve the ‘G for Genius’ theme and uplift the glucose category,” says Hiron Gandhi, Vice-President, O&M handling the Parle-G account. Britannia’s Tiger brand has roped in actor Salman Khan and re-launched its glucose and other formats with ‘25 per cent daily growth nutrients’. “Today, the Tiger brand is not just an energy booster but also provides nutrients for daily growth,” says Anuradha Narsimhan, Category Director, Health and Wellness, Britannia Industries. With a new baseline ‘Roz Badho’ (Grow Each Day), Tiger is addressing a mother’s concern for her child’s nutrition. Parle continues to be the market leader with more than 80 per cent share in the glucose segment, while Britannia shares hover at about 8 per cent with Tiger. Even the premium end of the glucose segment has seen low traction. Parle is going slow with its premium variant of Parle-G Gold. The brand has been restricted to the West and North markets. “It is taking time for consumers to accept the rich formulation of Parle-G Gold and we are working on the product to make it more acceptable,” said Shah. Launched nearly six months ago, Parle-G Gold is at a 50 per cent price premium to Parle-G. Meanwhile, input cost and inflation have led to higher prices of commodities like milk and wheat flour. This has forced both Parle and Britannia to reduce grammage while maintaining price points in the past two months.

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Mother Dairy reaps huge benefits from fruits & vegetable division

ilk giant Mother Dairy expects to achieve a turnover of over Rs 550 crore from its fruits and vegetable division in 2012-13. Of this, retail operations are expected to generate Rs 350 crore, while fruit pulp processing will yield about Rs 150 crore and the frozen food segment another Rs 75 crore, says Pradipta Sahoo, Mother Dairy Fruit & Vegetable Pvt Ltd Business Head (Horticulture). Going into the 2013-14 financial year, the company expects to achieve a compounded annual growth of 10 per cent, similar to previous years. “We plan to increase our depth in Delhi NCR and Bangalore. We will be opening more stores and then think about the way forward for expanding into more territories in the north and south,” says Sahoo. Besides this, the company is gearing up for a major push in the food and fruit processing business. “We are quite bullish on the food and fruit processing business. We are a big player in mango pulp. Given the health concerns over the carbonated beverages business, the fruitbased beverage market is going to grow and has been growing. This is one area where we need to put our foot down and expand and we are evaluating this option on how to expand our capacity and increase our footprint.” But the company has no immediate plans to expand into other parts of the country just as yet. “At the moment, we have not thought through about expanding into Chennai or Hyderabad, but we will be expanding in Bangalore. We see Bangalore as a growing market and a lot needs to be done there. Once these operations have stabilised, then we will think about expanding into newer areas in the South,” he says.

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The cause of inflation is mismanagement of food system: Abhijit Sen

ttributing h i g h inflation to mismanagement of food system, P l a n n i n g Commission Member Abhijit Sen underlined the need for greater coordination between trade and other policies to deal with the situation. “A major source of inflation has been in the case of cereals and this is where we have a clear case of mismanagement of food system. It is not production shortfall,” he said. There has been 19 per cent rise in wholesale price index (WPI) based inflation compared with last year, while the country is sitting on a huge stock. The Government does not have a long-run price policy which can guarantee farmers the price for their produce, he said. “Mismanagement of food system means the inability to have a long-run price policy which says that this is what we are going to guarantee the farmers...,” he said. Sen said India has huge stocks of wheat, but Government is unwilling to release it at a rate which should bring down prices because the support price was too high and it doesn’t want to sell it at a rate to make a loss. Sen also made a case for much greater coordination between the trade policy and other policies. “There should be much greater coordination between the trade policy and the domestic policy... The world prices are very volatile, we therefore need much greater flexibility in our tariffs. Tariffs should vary as world prices vary. In fact what we end up doing is not tariff variation but bans on export and bans on import,” he said.

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Private label juice scales high

n the juice category, p r i v a t e labels from retailers have been gaining acceptance among Indian consumers as they have better value and prices compared to branded ones from Indian and multinational companies, says a report by Mintel, a global supplier of consumer, product and media intelligence. Private label juices will also open up the category to aspiring lower-income consumers who may not be able to afford branded packaged juices. And by sourcing their raw materials locally, retailers can further bring down the prices of private labels. Packaged juice is a relatively new phenomenon, and its per capita consumption in the country is quite low. India’s retail juice market is dominated by branded products with the top three players – Coca-Cola, Pepsi and Parle Agro

– accounting for 85 per cent of the market. Fruit juices are not a new product in India, though they are consumed fresh either from shops or at home. In fact, fresh juice accounts for around 95 per cent of total juice consumption in India. Ranjana Sundaresan, Food and Drink Analyst – India, Mintel, said, “Fruit juice consumption in India has seen incredible growth in the past few years, especially in urban and semi-urban areas. Until a few years ago, we had only a few branded players in the market. But now with more choice, Indian consumers have not only started to be brand-conscious but also price- and quality-conscious. Private labels offer a combination of good quality and comparatively lower prices, which has increased consumer confidence in private labels. Given how popular private labels are in Western markets, there is clearly a lot of scope for growth in this sector in India.” Private label is still a nascent sector in India, partly because the organised retail market itself is small. Organised retail, with estimated sales of Rs 1,515 billion, accounted for only 7.2 per cent of total retail sales in 2011.

Tata Global Beverages to invest heavily in new-age drinks segment

ata Global Beverages Ltd (TGBL) is investing heavily in new-age drinks such as functional and flavoured water. Functional water contains additives that provide extra nutritional value. These are expected to become alternatives for carbonated drinks in the future. The company, which entered the Indian bottled market in 2007 with Himalayan brand, currently earns about 5 per cent of its total sales from the water business. This is expected to go up to 15 per cent in another 3-4 years, said its Managing Director Harish Bhat. The growth, Bhat added, is coming as carbonated or soda-based drinks are losing their charm to fruit/vegetable juice and bottled water that contains flavours such as green apple, cranberry, citrus and watermelon, among others. The company has recently launched ‘water plus’, a nutrient water and ‘gluco

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plus’ glucose-based flavoured drink in Tamil Nadu and parts of Andhra Pradesh. It will cover the entire Indian market in another 3-4 years. According to a report by market research firm Euromonitor International, carbonated drinks are losing the appeal to functional drinks, which are seen as healthier alternatives. Even soft drink giants Coca-Cola and PepsiCo have recognised this trend and are strengthening their product offers in fruit/vegetable juice. Meanwhile, such drinks are gaining popularity in urban areas, where consumers, mainly young working professionals, are becoming increasingly health conscious. Besides, modern retail is also driving the growth as manufacturers showcase their products to capture new consumers and make them aware of various options.

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Fruits & veg can help ALS patients: Study

roduce power strikes again. The role of vegetables and fruits in reducing the risk of heart disease, certain types of cancer, cataracts and macular degeneration has been demonstrated time and again. Now ALS, often referred to as Lou Gehrig’s disease, is being added to the list. Data from five large, prospective studies, analyzed and published recently in the Annals of Neurology, showed that a greater intake of carotenoids, particularly beta carotene and lutein, was associated with a reduced risk of ALS. A prospective study selects a population in good health, collects data on dietary and lifestyle habits and follows the population over a period of years to see how diseases develop. More than 2,000 years ago Hippocrates stated, “Let food be thy medicine.” The wisdom of these words is reinforced by most population studies. I would add that food is slowrelease medicine that must be taken regularly — and, to paraphrase author Michael Pollan, should be recognizable as food to Hippocrates. Doing double duty for beta carotene and lutein are kale, collards, pumpkin, spinach and brussels sprouts. You cannot go wrong adding any dark green or orange vegetable to your daily menu. The vitamins, minerals and phytochemicals in richly colored produce are too many to list. Kale, last year’s “it” veggie, can be massaged with oil and lemon for a salad, added to soup, baked into kale chips or added to omelets. Kale is the most successful vegetable in my backyard garden, which is wonderful since freshly picked kale has great taste. Sheah Rarback is a registered dietitian on the faculty of the University of Miami Leonard M. Miller School of Medicine.

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Lifebuoy uses Kumbh Mela and roti to send its massage

t Kumbh M e l a , the largest congregation on earth where all big marketers are vying to sell their wares and boost their brands, one promotion that stands out is Hindustan Unilever’s ‘Roti Reminder’ for its Lifebuoy soap brand. The country's largest consumer products firm, along with creative agency Ogilvy, has partnered more than 100 dhabas and hotels at the mela site to serve rotis that are stamped with “Lifebuoy se haath dhoye kya?” (Have you washed your hand with Lifebuoy?) "

The ‘Roti Reminder’ gets a consumer’s attention at the exact time when hand washing is critical,” Sudhir Sitapati, general manager, skin cleansing, at HUL, says. That is, right when she sits down to eat roti with her hand. The company has made special heat stamps to make an impression of itsmessage on rotis and hired 100 promoters to stand in 100 kitchens across the mela. The campaign started on February 1 and will run for 30 days. The company hopes to put the hand wash reminder on 2.5 million rotis. “The Maha Kumbh provides a unique opportunity to communicate this message to a large, predominantly small-town and rural population,” Sitapati says. “In effect, this simple, clutter-breaking idea will help us reach out to a massive audience, at a fraction of the cost.”

Tomato juice best as post-exercise drink: Study

omato juice can be better than energy drinks at helping the body recover from exercise, a new research has found. Tomatoes provide vital chemicals to help muscles recover and blood levels return to normal after being stretched and strained, experts say. A number of health institutions in Greece conducted tests on 15 athletes over a period of two months, looking at vital signs before, during and after exercise. Nine of the athletes drank tomato juice

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after exercise and six consumed their regular fizzy energy drink. Those drinking tomato juice had quicker levels of muscle recovery and their glucose levels returned to normal faster after strenuous exercise, the ‘Daily Mail’ reported. Tomatoes contain a compound called lycopene, which principally give them their deep-red colour. Anti-oxidants in tomatoes are already known to combat cancer, heart disease and other ailments. In the study, led by researchers at the General Chemical State Laboratory of Greece, harmful levels of enzymes and proteins which contribute to muscle and brain damage returned to normal quicker in those athletes who drank tomato juice after exercise. The researchers said tomato juice was so effective that people with higher levels of harmful proteins could benefit in just two months. The study was published in journal Food and Chemical Toxicology.

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Indian tea delegation to visit Pak in August

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Tea gardens in Barak Valley seek transport subsidy

ea Board of India is proposing to take out a delegation to Pakistan by August as part of its efforts to boost exports. “Pakistan is a thrust market for our tea. We had recently revised the five ‘thrust destinations’ of the US, Russia, Kazakhstan, Iran and Egypt by replacing Egypt with Pakistan,” Tea Board’s Director of Tea Promotion for West Asia and North Africa (WANA), V. George Jenner, said. He has now taken over the promotion of Indian tea in Pakistan and Afghanistan besides WANA. Tea Board’s Dubai office will do the groundwork. “By August, we propose to take out a delegation of Indian tea trade to Pakistan. In the last couple of years, we have been facing problems in tea shipments to Egypt. India’s tea exports to Egypt dropped to 5.23 million kg (mkg) worth Rs 42.13 crore in 2010-11 from 5.76 mkg worth Rs 55.78 crore in 2009-10. Data for 2011-12 are awaited but we are working hard to reach 10-12 mkg in the near future. That would be the level reached in 2008-09. Meanwhile, we have shifted our thrust on Pakistan,” Jenner disclosed. “Impacted by internal political problems in the Gulf, India’s overall tea shipment to WANA fell to 57.61 mkg worth Rs 831.69 crore in 2010-11 from 68.39 mkg worth Rs 944.13 crore in 2009-10. On the contrary, in this period, shipment to Pakistan increased to 22.08 mkg worth Rs 132.63 crore from a mere 8.31 mkg worth Rs 78.89 crore”, he noted. The thrust on Pakistan means much to Nilgiri tea exporters because Pakistan is a strong purchaser at Coonoor Tea Trade Association’s auctions. It has been picking up select grades in the range Rs 90-118 a kg.

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early 80 tea gardens located in the Barak Valley in Assam want the Assam Government to take up with the Union Government the issue of extension of transport subsidy under NEIIP (North East Industrial Incentive Plan) to the gardens located in the valley. These gardens produce around 50 million kg annually, mostly CTC variety. “The industries other than tea have benefited immensely from the transport subsidy granted to them under NEIIP scheme but not tea,” according to N.K. Bagla, Chairman of the Cachar SubCommittee of Tea Association of India. “This discrimination must end

particularly to help Barak Valley tea that is already handicapped by location of the gardens in remote areas and low price realisation”. Addressing the annual general meeting of the Cachar chapter of TAI at Silchar recently, he pointed out how transportation was proving to be major stumbling block for movement of inputs as well as made tea to auction centres and main markets outside the North-East. The scope of export of Barak Valley teas to Bangladesh, Bagla felt, should be explored due to several reasons. First, the demand for tea in Bangladesh was steadily rising; next the average price at $4/kg in Bangladesh was remunerative and finally, low shipment cost due to physical proximity of the market which can be accessed by road from Cachar areas. It would be a major breakthrough if Bangladesh market opened up for Barak Valley teas which did not have any export market at present.

Vasmo Foods launches dals

hennaibased Vasmo Foods, going up the value chain, has launched mineral-enriched urad, tur and moong dal under the brand Double Ubari Annam. Announcing the launch, De Srenivasan, Head-Operations, Vasmo Foods Co Pvt Ltd, said the company, after a five-year long research developed the technology – high pressure impregnation – though which the dal is enriched. The products were also tested by the Indian Council of Medical Research and certified by the authorities as safe for human consumption, he said. According to Srenivasan, the enriched tur dal contains 7-12 mg iron, compared to 4 mg available in traditional dal. Similarly, the value added moong dal will have 10-20 mg of iron, against 6 mg found in regular variety, and urad dal will have 120-200 mg calcium (against 80 mg), 100180 mg magnesium (50 mg) and 250-350 mg phosphorous, against 150 mg found

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in commonly available grades. The technology also ensures retention of these minerals in the dal even after washing it prior to cooking. These products will be made available in 100, 250, 500 gm and 1 kg packs and are priced on a par with the regular market price, as it would cost “not more than 75 paise a kg” for processing. As Vasmo has been in the entire chain of procuring these pulses from farmers to processing and selling it to wholesalers for the last over four decades, “we have achieved critical business volume and hence can absorb the additional cost”, explained M.V. Kumarresan, Director of the company. Vasmo Foods is a family-owned and family-run business started in 1969. It has been procuring, grading and marketing dal in Tamil Nadu. The company’s current turnover is about Rs 97 crore, and with the launch of these products, it expects the turnover to more than double in the next financial year. These products will also be launched in other southern states, and then national in a phased manner, Kumarresan explained.

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‘Aquaculture needs to be given priority’

isheries sector that contributes 5 per cent of India’s agricultural G D P , generating employment for 40 million people, needs p r i o r i t y support, said Union Minister of State for Commerce and Industry Daggubati Purandeswari. Inaugurating the three-day Aqua Aquaria India 2013 expo, recentlry organised by Marine Products Export Development Authority (MPEDA) in Hyderabad, she said that marine fisheries had reached a stagnation phase and the alternative was to promote culture fisheries. The sector that contributed 1.5 per cent of the GDP needed support from the MPEDA in extension work, she said. The MPEDA was primarily an export promotion agency, developing sustainable technologies for aquaculture and the State Fisheries Departments should take up the extension work. “Only then export earnings can be

enhanced with improved returns to the farmers,” the Minister added. MPEDA Chairperson Leena Nair said that Andhra Pradesh, with 35,000 aqua farms, was in the first place in the country and Krishna district was in the first position in the State with 10,000 farms. “Vijayawada is the epicentre of aqua activity and was the automatic choice for the expo,” she said. The focus at the expo was on sustainable aqua technologies and promoting ornamental fish. She also explained the role of the MPEDA in promoting aquaculture, aqua exports and in the research projects taken up by Rajiv Gandhi Centre for Aquaculture. Chirala MLA A. Krishna Mohan spoke on behalf of the fishermen and was critical of the role of the MPEDA, the State Fisheries Department and other government agencies and alleged that all of them were letting the farmers down. The shrimp exporters were manipulating the markets and the farmers were at their mercy and the government agencies were doing nothing to protect their interests, he added. Outstanding aqua farmers from different States were given away prizes by the Union Minister.

Japan to lift ban on Odisha prawns

apan has agreed to consider lifting of the ban on importing prawns from Odisha, which it stopped for past over six months citing presence of a particular toxin beyond the permissible limit, Agricultural and Processed Food Products Export Development Authority chairman Asit Tripathy said on February 15. "The Union government has taken up the matter with Japan, stating that the ban was not based on scientific evidence. The limit of detection (LoD) of the toxin was 0.01 microgram per millilitre, which is permissible in all other countries, except Japan, which imports only those with zero LoD. Japan has agreed to reconsider its decision," Tripathy said. Tripathy, who is also a joint secretary with the Union Ministry of Commerce and Industry, was in Bhubaneswar to attend a national seminar on food safety. Japan, one of the major buyers of seafood, stopped import after it detected

ethoxiquin in the shrimps, a quinolinebased antioxidant used as a preservative, and a pesticide in July-August last year. It had sent back at least 10 shipments from eastern India, which accounts for 25 per cent of the total shrimp exports from Odisha. Berhampur in southern Odisha is a major seafood export destination. Odisha exported seafood worth around Rs 800 crore in 2011-12, including those worth over Rs 177 crore, to Japan. Seafood exporters sought the intervention of chief minister Naveen Patnaikin the matter after the ban. They also requested him to take up the issue with the Centre. Tripathy said food producers and processors have to adhere to very high standards, as importing nations are tracing the food from the originating sources, from production farm, processing units and packaging facilities, till it reaches to the users.

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Ruchi Soya uses fish markets to promote its mustard oil brand

engalis love fish, if prepared with mustard oil. Ruchi Soya Industries is using this to cook up plans to enter the Bengali kitchen. Nutrela – a brand of Ruchi Soya Industries Ltd (RSIL) – has tied up with six major city fish markets to promote its mustard oil brand. Under the campaign, five or six fish-sellers in each of these six markets have been identified. A complimentary pack of mustard oil (branded Nutrela Kachi Ghani) will be given following a purchase of one kg of fish. “The campaign has been created keeping in mind the Bengali sentiments and the need for mustard oil as a cooking medium here. We are looking for tieups in other markets,” Sandipan Ghosh, Assistant Vice-President Marketing, Consumer Brands Division, RSIL, said. It will be carried out simultaneously in Bengal and Assam. Bengal alone accounts for over a third (around Rs 110 crore) of the Rs 300-crore mustard oil market in the country. The Rs 2-crore ad campaign, beginning February 15, will be carried out for a 6-8 week period and include television commercials and radio jingles. This, interestingly, is the company’s first campaign centred around the threeyear old mustard oil brand. Bihar and Jharkhand are next in the company’s radar. According to market sources, the edible oil market in India – that include soya, sunflower, mustard and other oils – is pegged at Rs 3,500 crore. Apart from Nutrela, some other key players in the mustard oil segment (nationally and in Bengal) include Fortune, Emami, Dhara and local players such as Engine and Mashal.

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Nestle India buys 26% stake in Indocon Agro

n a surprise move, Nestle India Ltd has acquired 26 per cent stake in a little known dairy company Indocon Agro and Allied Activities Pvt Ltd. In a note to the BSE on Monday, Nestle said that it had entered into an agreement to pick up a minority stake in Indocon, which is engaged in milk collection business in western India. Nestle India currently has its own manufacturing facilities at Moga in Punjab and Samalkha in Haryana, which largely service the northern market. Apart from that, it has contract supply arrangements for the West and South markets with Baramati-based Schreiber Dynamix Dairies Ltd and the Hyderabad-based Heritage Foods for its curd and UHT (ultra high temperature) milk. Besides, it sources milk powder from domestic players such as Sterling Agro and VRS Foods. “When there are so many suppliers, one doesn’t understand the rationale for picking up stakes, that too in a company about which not much is known,” an industry source said. One possibility could be that this company could be linked to Schreiber Dynamix itself. There has been talk, of late, about Nestle tying up with Schreiber Dynamix to set up a milk powder plant at Baramati. Schreiber Dynamix, formerly Dynamix Dairy Industries Ltd, was originally promoted by K.M. Goenka, before the US-based cheese major Schreiber International Inc acquired a majority stake in it in 2003. Following that, Goenka floated a separate company, Sahyadri Agro Produce and Dairy Ltd, which is engaged in the business of milk handling for captive consumption of Schreiber Dynamix. A Nestle India spokesperson said the Swiss major’s deal with Indocon was of ‘strategic and long-term’ nature, but could not give further details, including where the latter was based or how much milk it collects per day. Details of the financials of the transaction were also not disclosed.

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Mother Dairy to capture south markets

o t h e r D a i r y , India's thirdlargest ice cream maker, has chalked out a strategy to expand in the southern states, which account for a fourth of the Rs 2,000-crore domestic market to sustain its growth rate. Subhashis Basu, business head of dairy products division, said that Mother Dairy would aggressively expand its footprint in the south, aiming to garner a 20% market share by 2014. "Expansion in southern markets should help us maintain our growth rate of 30% a year across the country in a sustainable manner going forward. We hope our strong local supply chain would help us

gain a sizable place in this market." Apart from multinational brands, such as Kwality Walls, and home grown players like Amul, Vadilal, Lazza Ice Creams and Cream Bell, the southern market also has local players like Heritage Foods and Scoops. "When we entered Bangalore last year, we aimed at 10% share in the local ice cream market of Rs 130 crore in two years. We could achieve it in the first year itself thanks to our brand image and strong supply chain. This gives us hope to achieve similar penetration in Hyderabad and Chennai," Basu said. Mother Dairy, which reported Rs 300 crore sales in year to March 2012, claims a share of around 18% in the Indian ice cream market.

Dairy Farmers in AP want to replicate Amul

mall dairy farmers in Andhra Pradesh have decided not to depend on the corporate milk firms to sell their produce. After the recent milk glut that resulted in huge losses, farmers have resolved to form a cooperative to procure milk, process it and market the same by creating its own brand. To begin with, a group of 25 farmers will form the cooperative in the State capital. “The milk firms pay us just Rs 17 a litre but sell it at Rs 36 to the consumer. We are perennially facing losses. We will start the cooperative in the next few weeks,” K. Bal Reddy, a dairy farmer from Bhongir in Nalgonda district with about 500 animals, said. Andhra Pradesh has about 40 lakh dairy farmers, small and big, who are by and large unorganised. With a cattle population (cows and buffaloes) of 2.45 crore, the State produces 12.1 million tonnes of milk comprising 10 per cent of country’s annual production of 122 million tonnes. Only 30 per cent of the 12.1 million tonnes of milk is procured by organised players such as Vijaya-Visakha, Heritage,

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Tirumala and Jersey dairies. About two months ago, the private dairies had either stopped or significantly reduced milk procurement owing to a glut. This had led to panic selling by farmers. In several towns, some even dumped the produce on roads as a mark of protest. “Neither the consumers nor the producers are getting any benefit. The companies are making money. We can’t run the show like this for long. So, we floated the idea. The response has been good from members. We know that change cannot happen overnight,” Bal Reddy, who is also Secretary of Progressive Dairy Farmers’ Association (PDFA), said. On the milk firms’ argument that the cost of production forced them to fix a cap on purchase price, Bal Reddy said Mulkanur Cooperative Society (a successful cooperative in Telangana) was giving Rs 22 a litre. “We should work for 2-3 years to see some results in our model. We are holding meetings at district levels to gain support for our model,” M. Jitender Reddy, President of PDFA, said.

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