Saarc Oils & Fats Today- July Issue by Media Today Pvt. Ltd.

july 2012, SAARC OILS & FATS TODAY

SAARC OILS & FATS Today, jUly 2012

july 2012, SAARC OILS & FATS TODAY

Contents Chief EDITOR S. Jafar Naqvi Consulting Editors T.V. Satyanarayanan K Dharmarajan Editorial Co-ordinator: Syed M K News Editor : Anwar Huda

v Editorial

v l

Cover Story OTAI (NZ) Conference Food Safety Act promises Less License Raj: FSSAI — Anwar Huda

l Dastur Memorial Workshop Impact of Food Safety Act on dairy industry l IDA (NZ) conference Suggests changes in single licensing approach

General Manager: Lalitha V Rajan Production: Mohd. Iqbal Hyderabad 9248669027 mediatodayhyd@yahoo.com

v Expert Take Public health is more important than taste & cost — Vijay Sardana v Achievement FM honours Vijay Sardana for contribution to commodity markets

Commodity Market Future & Spot markets need modernization minus entry or exit barriers

Food Safety Quality standards of veg oils & oil products Major amendments in pipeline

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GM Policy Gafta Report EU’s GM policy ‘Constraints remain political rather than technical’

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Feed Regulations EU Catalogue of Feed Materials Setting maximum ‘contents of chemical impurities’

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Research Synbiotics Nature’s power food for health

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Vol. 14..... ISSUE 10..... July 2012 ‘Saarc Oils & Fats Today’ T-30, Ist Floor, Khirki Extn., Malviya Nagar, New Delhi - 110017 E-mail : MediaTodayMails@gmail.com

SAARC OILS & FATS Today, jUly 2012

— Vijay Sardana

— Dr. A. Madhavan

— June Arnold

— Emilie Leibovitch, Christophe Derrien and Arnaud Bouxin

— Swati Kapoor, S.S.Thind, Poonam Sachdev and Amarjeet Kaur

v Dairy Indian desserts Major brands use vegetable fats instead of dairy fats?

v News

Editorial

orries over the rainfall situation have gripped the government, following reports of massive shortfall from many parts of the country in the first of the fourmonth period of south-west monsoon. The Union Agriculture Ministry has urged all states to adopt contingency plans, including sowing of alternatives crops that require less water, in case rains continue to play hide and seek till mid-July. Monsoon rains are critical for Indian economy as twothirds of the people depend on farm income and 60 per cent of the cultivated lands are totally dependent on the mercy rain gods for crop growth. Monsoon rains are also important for replenishing major water reservoirs that are vital for providing drinking water and irrigation, as also for generating power. At the beginning of this Kharif season, when the prospects looked good in the wale of initial meteorological forecasts of ‘normal’ rains, the government announced the minimum support prices for various crops so that the farmers could take considered decisions on the sowing pattern and schedule. The MSP for paddy has been raised by 15-16 per cent and that for pulses and oilseeds by 30- 40 per cent. In terms of increase, the maximum, over 53 per cent, is for Jowar, followed by Ragi. This steep hike is in keeping with the new policy of giving greater incentives to step up the production of nutrition-rich coarse grains, once the staple food of large masses of people. The MSP for groundnut, soyabean, sunflower and urad has been increased by over 30 per cent. The substantial hike in support price of paddy has triggered a debate, with many experts questioning the logic of such a raise for this water-guzzling crop, particularly when the rice stocks in public godowns remain at a level, which is 2.5 times the required buffer norms. What’s more, for want of proper storage facilities, massive quantities of cereals, both rice and wheat, are rotting.

The Commission for Agriculture Costs and Prices (CACP), which recommends the support prices, however, has defended the hike on grounds of increasing production costs. The price suggested for this season, the Commission contends, just about covers the projected cultivation cost that includes the paid out costs, including cost of inputs like seeds and fertilizer and interest on capital, value of family labour and land rentals. According to the Commission, the cultivation costs have shot up, particularly in the last three years, because of hefty increases in the prices of fertilizer, diesel, and fodder, besides increase in farm wages. The rationale behind the substantial increase in the MSP of oilseeds and pulses is clear – to encourage growers to shift to these crops from cereals. However, a close look at the figures for the last few years shows that the shift has not taken place to the expected levels. What is needed to boost the production of oilseeds and pulses is greater focus on research to take productivity to higher levels. Research must also focus on development of new varieties that need less water. Growing such varieties would be particularly beneficial during years of deficient rainfall, when water conservation becomes vital. In this context, the award of this year’s World Food Prize to Israeli Scientist Dr Daniel Hillel is indeed significant. The prestigious prize, established in 1987 by Nobel Peace Prize winner Norman Borlaug, rightly recognizes Dr Hillel’s ‘radically innovative’ way of bringing water to crops in arid and dry land regions, ensuring efficient use of every drop of this precious resource. Making Indian agriculture less and less dependent on monsoon has been a long cherished goal. In the efforts to achieve it, water conservation and efficient water use have to play a crucial role.

Comments are welcome at: MediaTodayMails@gmail.com Views expressed by individuals and contributors in the magazine are their own and do not necessarily represent the views of “SAARC Oils & Fats Today” editorial board. The magazine 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

july 2012, SAARC OILS & FATS TODAY

Cover Story

“E

verybody, including you (Oil industry personals), is a consumer, and public health is of utmost importance, which must be protected. FSS Act, 2006 aims to achieve this national goal”, said K. Chandramouli, Chairperson, Food Safety and Standard Authority of India (FSSAI). He was delivering the inaugural address at one-day conference on ‘Registration and Licensing for Food Business Operators in accordance with the procedures of Food Safety and Standard Rules, 2011’, organized by Oil Technologists Association of India (North Zone) in New Delhi, on June 12. FSS Act was introduced in 2006, passed by the Parliament in 2009, and was implemented in August 2011. The last date of getting licenses is set as 5 August, 2012. The extremely fruitful seminar was attended by nearly 100 delegates coming mostly from oil industry, and related sectors such as food test labs. Prominent among them were M.K. Vaidh from Ruchi Oil, and Dinesh Rathore from Mahesh Edible Industries Ltd. The speakers included Dr A Madhavan, Asst. Director, FSSAI, D. Mathur, President, OTAI (NZ), Prof R. K. Trivedi, HGS, OTAI-India, DS Yadav, Deputy Director, FSSAI, Monika Rawat, Senior Asst. Director at Federation of Indian Chambers of Commerce and Industry (FICCI)- Policy & Regulatory Affairs. The seminar was moderated by Ashwani K Sharma, Secretary, OTAI, NZ. OTAI (NZ) President welcomed the speakers and delegates, while Chandramouli inaugurated the event in the presence of all who were there. The very interactive session brought on-the-spot results, as the Chairperson of FSSAI promised to accommodate the valid demands of oil and food industries, and modify the rules in the Act. The hallmark of the conference was the humility and high talent and amazing expertise, displayed by everyone. Delegates and speakers showed such bonhomie and appreciation for each other that it did not appear to this correspondent being in a conference, but as if in a classroom attending a nice, fruitful discussion. Inaugural Address Emphasizing the need and virtue of the FSS Act, 2006, the Chairperson, FSSAI, said

SAARC OILS & FATS Today, jUly 2012

OTAI (NZ) Conference

Food Safety Act promises Less License Raj: FSSAI — Anwar Huda

FSSAI Chairperson K Chandramouli (2nd from R) & OTAI (NZ) President D. Mathur (2nd from L) inaugurating Seminar while Dr.Madhavan (FSSAI Asst. Director) & Ashwani Sharma, OTAI-NZ, Secretary (Extreme L) look on

that the Act, which has been in the making for six years, promises less of License Raj, and more space for a coordinated attempt between the Government and Food Business Operators (FBOs). He appealed all the present delegates and every FBO to apply for the license and not fearing about the date-5th August, 2012. “We are very open-minded and ready to accommodate your valid demands”, he said, and told them that this Act is an encompassing Act which has annihilated the multiplicity of laws. It is, Chandamouli said, like a single window process that has ended a reign of confusion. “I have just joined FSSAI, and my first job was to make it simple

and flexible, so that FBOs may not face any problem in doing paper works and getting the licenses. The Act takes away much of the powers from Food Inspectors as it promotes self-regulation at every step of the supply chain”, he said amid great attention bestowed by the mature and calm delegates. Adulteration and contamination cannot be allowed to go on, he said. “All FBOs including Rediwalas and Chaatwalas have to get them registered and maintain acceptable standards of hygiene. The overarching Act is not meant to create scare among FBOs, but to inspire them to protect public health”. Accepting the huge challenge of getting

Cover Story registered a mind-boggling number (over 5 crore) of small, medium and large FBOs, he said, “I agree about the huge challenge since India is a big country. This has led us to work on online system of filing for the license. But the Act is unique, as for the first time, there is an Act which includes smallest of the players as well as the biggest ones under one umbrella”. Answering the turbulent questions about the peskiest issue “State Vs Central Licensing”, he said the clear conditions and qualifications have been given in the Act to enable a FBO to know whether he falls under the preview of State or Central Government. To further ease the process, he said, FSSAI has done a revolutionary thing-okaying private food test labs to carry out tests for the FBOs. Giving example of exports, he said that as foreign nations do not accept a food item if it does not meet high global standard, India should also reject imported food items if they do not meet the same standards. “As we import 60 per cent of our oils, and a lot of fruits and other food items that inflate the import bill to Rs 2 to 3 Lakh crore, this Act becomes even more essential for us. And the same standard should be applicable for local food items as everyone’s health is vital”. Strict Hygiene The purpose of the Act, FSSAI Leader said, is to promote clean health practices by following strict standards of hygiene at every step of the supply chain. Hence, even the transporters, re-lebellers and storage owners need to get the license. Allaying the fears of the need of too much documentation, and chances of running from pillar to post for availing the license, he said that he has been personally involved in making everything simple, so that FBOs can get the license in a hasslefree manner. The Chairperson suggested the delegates to make a small group under OTAI and write down their concerns, suggestions and doubts, and give it to him later. So that, the adjustments, whatever are possible, can be made. The delegates, apparently, felt relieved. “OTAI can play a catalystic role in this process to let the two parties reach mutual understanding and sort out the issues”, he said. He also added at the end of his

promising address that FSSAI has managed to bring down the issues, but the enormity of the sector is bound to create some practical difficulties. “The Act ensures that the food we eat is sanitized, clean and healthy. We have to work under the aegis of the Act to make it work. FSSAI wants you to move forward, not backward”, he said. He also promised delegates that some Acts, which are left, would be included in the FSS Act. The vote of Thanks was proposed by Ashwani Sharma, who lauded the binding qualities of FSSAI Chairperson. Sharma, who has been instrumental in bringing all the delegates and FSSAI representatives under one roof, and who has contributed a great deal to the advancement of oil industry in India, appreciated the will of both parties to reach mutual understanding, and thanked everyone for investing time in this useful seminar.

D. Mathur (L) & Ashwani K Sharma

K Chandramouli

Lectures & Interactions Post inaugural address, FSSAI’s Dr Madhavan and DS Yadav spoke on the following topics: *Process of registration for obtaining the license under FSSAI *Quality assurance, maintenance issues for FBOs after getting the license *Quality assurance, regulations and monitoring required for the license under FSSR, 2011

Dr. Madhavan

Well-aware, almost knowing all the nuts and bolts of the Act, the two FSSAI representatives convincingly answered the difficult questions raised by apprehensive oil players, and succeeded to a great extent to remove their doubts. They found appreciation and applause from all the present delegates for showing uncommon brilliance and authority of knowledge about the Act.

DS Yadav

Transporters’ Concerns They tried to address some of the hardest problems like convincing transporters to get the license, and clearing doubts of the delegates about State Vs Central Licensing issue. The delegates told them that transporters are not convinced and if they will not go for the license. They cannot complete all the formalities and rules. Some delegates

Monika Rawat july 2012, SAARC OILS & FATS TODAY

Cover Story

Adulteration and contamination cannot be allowed to go on, FSSAI Chairperson said. “All FBOs including Rediwalas and Chaatwalas have to get them registered and maintain acceptable standards of hygiene. The overarching FSS Act is not meant to create scare among them, but to inspire them to protect public health also raised concern that it would increase the cost, as a vehicle which is used for carrying food items cannot carry non-food items. Terming transporters segment as ‘grey area’, Madhavan said that FSSAI is open to sort out all issues concerning this important segment of the supply chain. He also said that only those vehicles, that carry milk, oils and meat, would be banned from carrying non-food items. Self-regulation Dr. Madhavan said that the Act is all about self-regulation, and it should not be considered as harassment. “In fact, it has been designed in such a way that FBOs will face almost negligible harassment that is usually meted out by Food Inspectors. There is a provision where a FBO can file a complaint about such cases if he thinks his papers are okay, and he is following the rules given in the Act”, he said. DS Yadav said that if FBOs keep their units clean they are following the true spirit of the Act. ”It is all about selfmotivation, as everything cannot be described in an Act”, he said. But he also added that FSSAI has no problem to make it descriptive, and asked delegates to help FSSAI to make it so. No License No Business To remove the confusion among delegates, Madhavan made it clear that 10

SAARC OILS & FATS Today, jUly 2012

all the stakeholders in the supply chain (Transporters, Store house Owners, RePackers etc) must have the license. This is the only thing that is truly mandatory, because without it, the purpose of this Great Act will be defeated. But he also acknowledged that difficulties will arise at the time of implementation “Jaisa implementor, waisa implemented”. He used this term to make it clear that the Act can be implemented in its true spirit only when implementation officials are of high caliber and very public-health conscious, as well as cooperative and open to ideas. Flexibility FSSAI representatives also told delegates that leniency will be given wherever it can be. For instance, villages and small towns’ Kachchi Ghani Sarso Oil operators, who cannot afford to install high-value machinery, will be allowed to operate, but they must be held responsible in case of any adulteration. Apprehension about not meeting the deadline--5th August—was palpable at the conference. The representatives and even the Chanmdramouli asked FBOs to apply for the license, and not worry about the deadline, as it is not necessary. Friendly features of the Act DS Yadav and Dr Madhvan also used PowerPoint presentations to elaborate

on the provisions and rules given in the Act. According to them, the Act warrants less paper works, as the system is also available online. The states that are following it vigorously are Maharashtra, Goa, Gujarat and Andhra Pradesh. Maharashtra alone has issued 1, 60,000 licenses so far. Karnataka is also showing interest in online method. “While central licensing is successful due to online method, many states are not opting for it due to lack of fund, and we have asked Central Government to provide us a sizeable budget to implement this Act. It is expected to be sanctioned soon”, Yadav told the gathering. Unified licensing procedure, common application forms and enabling Gram Panchayats to issue registration certificates to petty FBOs are some of the highlights of the Act. Each district will have a DO (District Officer) to issue the license. All DOs will be under State Food Commissioner. Fee & Time Limit Rs 100 is the annual fee for petty Food Operators, as they will not need to get the license, but only the Registration Certificate. Those availing Central License will have to pay Rs 7,500 annually, while those getting State License will have to give Rs. 3000 to 5000 per annum. And in case, any FBO does not get the license/ registration certificate within 60 days, he can start his business. Central Vs State Licensing All importers must have Central License no matter how much is their turnover. Any FBO having operations in two states should also opt for this license, or those whose turnover is above Rs. 12 Lakh, or daily output is above 2 MT. The turnover or processing capacity will decide the type of license. Yadav said that many documents have been made optional to ease the entire process. Answering a question, he said that re-lebellers must have the NOC from the manufacturers from whom they source their materials; otherwise they will be held responsible for any harm a consumer may face due to consuming his product. Other mandatory rules under the Act include compulsory health checkup of all employees who come in contact

Cover Story with food, and details of qualifications of technical personnel. These two things should be made available by the FBOs at the time of inspection. Inspection checklist is available on FSSAI website. Yadav said that even if inspectors are not satisfied with an FBO, they cannot say “You cannot get the license”. They would advise him to bring changes and provide him an Improvement Notice, so that he may not get discouraged. “Nobody will be denied a license, if he follows the rules”, he said. Provision for Recall The Act’s special qualities are: independent regulation, single window process, less inspection. “It is preventive, transparent, scientific-based system”, Madhavan said. Recall of unsafe food is another new feature of this Act, which means an FBO can recall his food products if he thinks they are not up to the mark. The system is followed by car makers globally. It inspires confidence among customers, enhances brand value, and is a kind of self-regulatory practice. Accreditation of private labs Water will be tested by a lab only if it is used as an ingredient in the processed food. Lamenting the utter inefficiency of Government labs and their sky-high secret fees, Madhvan said that top private labs have been authorized by FSSAI to test the samples. “This move has received big applause from all medium and large FBOs, as these labs’ fees are reasonable, and they deliver the results fast”. Allaying the fears of the harassment by the State Food Inspectors, Madhavan said that they are not allowed to inspect unless authorized by the Central authority. In case they do, FBOs should report the matter directly to FSSAI head office. Food Safety & Management System Monika Rawat spoke on the ‘Role of FSMS in FSS Act’. She, through her power-point presentation, tried to increase the awareness about Food System Management System (FSMS), which is a scientific method to achieve the objectives enshrined in the FSS Act. She focused on health and hygiene and how to make a food processing unit a safe, germ-free place. ”Adequate control throughout food

chain is essential, so that the consumers do not get sick”, she said. She added that there are factors that make it mandatory for India to go in sync with the prevailing global standard. World trade’s need of international harmonization is such a factor. “It is the social responsibility of FBOs to keep their premises, employees and food in clean and healthy sate”, the young lady, who has done around 300 audits, said. According to her, internal audit is more valuable. Regular health checkups and in-house monitoring is a key to achieve the national health objective. She also elaborated on oil tests such as Nots, crop and metal contaminates and acid value tests. Later Madhavan and DS Yadav spoke on packaging and labeling. Madhavan said that everything should be legible on the food packs and it should not be misleading. A health claim cannot be printed without a scientific support. Media Recommendations Everybody has a social responsibility, and so does a journalist. This Correspondent and News Editor of Media Today also gave in written two suggestions to DS Yadav of FSSAI: 1-PET Code, which is printed at the bottom of plastic bottles, should be printed on the main body, accompanied with a minor definition of the code, and whether it is harmful or not. 2-“And other edible oils”, which is printed on the food packs, is wrong. All ingredients of these oils should be mentioned, and whether it has Bt cottonseed oil, as 90 per cent cotton produced in India is Bt cotton. Yadav was responsive to the ideas, and said he would try for the inclusion of the same into the rules of the FSS Act. Battle against Trans Fats Talking about the Trans fats, Madhavan said that Trans fats are more harmful than fatty acids. The acceptable level should come down to 5 per cent. “Slowly, we will achieve this figure”, he said. He also informed the delegates that Trans fats are totally banned in the Netherlands.

Delegates’ apprehension about the fate of their lying old stocks came to the surface, but Madhavan said that the same can be sold up to six months after August 5. A delegate from Haryana raised the issue of loose oils, and how these street-smart manufacturers are using adulteration to sell mustard oil at Rs. 60 per Kg, while genuine oil makers find it tough to procure the oil at even Rs. 80 a Kg. He was supported by other delegates as the issue is a common torturer. Madhavan assured him that due actions will be taken against such predatory players. End Note Dinesh Rathore of Mahesh Edible Oil Industries Ltd read the end note, praising profusely the two representatives of FSSAI for their in-depth knowledge, openness, and their willingness to accommodate the suggestions of the FBOs and oil industry players. But he also added that the task at hand is too big to handle, as each year many lakh new FBOs come to the scene. And so far around 20 lakh players have applied for the license. “I suggest FSSAI to outsource this licensing process, as Indian Government has outsourced passport making to TATA. Government should control only”, he advised. He also praised FSSAI for appointing private labs for food test. He also said that people of India should change, so that brands may change. For this awareness is vital. President’s thoughts OTAI (NZ) President thanked everyone for participating and making the seminar a roaring success. He suggested FSSAI to allow blending of more than two oils. He also advised that instead of printing nutritional value per 100 gram, it should be printed as per the amount inside the container. And that is a great healthy idea as it would have a psychological impact upon consumers. He also praised FSSAI approach, calling it dynamic, positive and modern. But he also cautioned it to verify a scientific research before following it, as it affects the prospect of entire industry. n

july 2012, SAARC OILS & FATS TODAY

Cover Story

Dastur Memorial Workshop

impact of Food Safety Act on dairy industry

he impact of Food Safety and Standards Act on food industry, including dairy, was discussed in detail at a Workshop in New Delhi, held in honour of Dr N N Dastur, former Director of National Dairy Research Institute in Karnal. The Workshop, organized by Indian Dairy Association (South Zone), in association with CQM Quality Management Pvt. Ltd, New Delhi, was attended by about 75 participants representing dairy industry along with dairy professionals, members of IDA, students and entrepreneurs. 12

SAARC OILS & FATS Today, jUly 2012

Inaugurating the Workshop, Dr A.K.Srivastava, Director, NDRI Karnal, stressed that food safety is the requirement of all consumers, and it should not be construed as being relevant only to products meant for export. While elaborating on the importance of quality and food safety, he described milk as complete natural food. Getting deeper insights into the Food Safety and Standards Act becomes vital, he said, and hence the present Workshop is highly relevant and most timely. Dr Satish Kulkarni, Chairman, IDA SZ, welcomed the dignitaries and the participants. He said that IDA - South

Zone has been organizing the Endowment / Memorial lectures since last year in honour of dairy doyens, and this was the third in the series. He pointed out that Dr Dastur was a towering personality in the field of Dairy Science and hence the Association thought it appropriate to organize a Workshop in his honour. Dr PA Shankar, Former Director (PGS), KVAFSU (Karnataka Veterinary, Animal and Fisheries Sciences University), Bidar & Chairman, Programme Sub-Committee of IDA â&#x20AC;&#x201C;South Zone, gave a brief profile of Dr N.N. Dastur highlighting his professional accomplishments and contribution to dairy industry. Dr Shankar stated that Dr

Cover Story

Inaugurating the Workshop, Dr A.K.Srivastava, Director, NDRI Karnal, stressed that food safety is the requirement of all consumers, and it should not be construed as being relevant only to products meant for export Dastur was a renowned Dairy Scientist in the field of Dairy Chemistry and quality assurance and the Workshop organized in his memory and honour is a befitting tribute to him. Dr G. Srinivasan, Deputy Director, Food Safety & Standards Authority of India (FSSAI), Chennai delivered the keynote address on the topic â&#x20AC;&#x2DC;Relevance of Food Safety and Standards Act 2006â&#x20AC;&#x2122; in the functioning of food industry in the domestic & international context. Raghu Guda, General Manager, NISG, Hyderabad made an interesting presentation focused on licensing and registration process in the context of FSSA 2006. Ujjwal Kumar, Country Head, CQM Quality Management Pvt. Ltd., New Delhi, presented useful information pertaining to FSMS, Food recall plan and product approval process. Alok Malik, Consultant, IRQS, New Delhi gave a detailed account of the role of certifying agencies in FSSA and functioning of IRQS. The presentations were followed by interaction of participants with the speakers for clarification. Dr A.K. Srivastava, NDRI Director, in is concluding remarks, appreciated the efforts of the organizers in holding such an important Workshop. He was all praise for the excellent presentations of the various speakers. Dr P.K. Dixit, Secretary IDA - South Zone, proposed vote of thanks, while Dr B. Surendra Nath, EC Member of IDA-SZ, was the Compere for the event. S. Jafar Naqvi, Chief Editor, Media Today Group that is organizing DairyTech 2012 in Bangalore was also present. He distributed to the participants some of Media Today publications and informed them about the forthcoming event to be held on 25, 26 and 27 August, 2012 in Bangalore.

july 2012, SAARC OILS & FATS TODAY

Cover Story

IDA (NZ) conference

Suggests changes in single licensing approach

o optimize the approach for single license for different establishments, the term ‘area’ and ‘local area’ should be suitably defined in the “Regulations” to mean a ‘state’, this was demanded by the dairy delegates present at the seminar on “Food Safety and Standards Act and Dairy Industry”, organized by Indian Dairy Association (IDA-NZ) on 28th June. The conference was attended by K. Chandramouli, Chairperson, Food Safety and Standards Authority of India (FSSAI), and several representatives of the dairy industry, who highlighted the issue of registration/licensing of dairy businesses under the Food Safety and Standards Act 2006 (“Act”). They requested for a review of the Regulations/ Advisories by the FSSAI which required districtwise licensing. This would result in a pan state/multi-state cooperative, a public or private company having to obtain licenses from several designated officers which could go up to 87 in case of a state like Uttar Pradesh which has 87 districts. If it is a multi-state operation it could go beyond hundred licenses. In this connection FSSAI invited representatives from Indian Dairy 14

SAARC OILS & FATS Today, jUly 2012

Association for discussions on 8th June. Meaningful discussions were held between S.N. Mohanty, CEO, FSSAI and other officials of the Authority, and IDA representatives. It was highlighted that the need for obtaining a license by a food business operator including dairy business operator was resulting in having to obtain and maintain substantial number of licenses by the said operator. Dairy business operators in the organized sector need to have in the chain not only forward linkages (i.e. storage, distribution and sale), but also backward linkages in the form of unit operations/ premises for collection, storage _d chilling of raw milk in rural areas. This unique structure connects millions of largely small, poor producers in rural areas to consumers in urban areas. If separate individual licenses were to be issued for each of the units of every dairy business operator, then. it would be a humongous task to obtain and maintain these licenses both for the regulatory agencies and the dairy business operators. It would be, therefore, desirable to have a simple licensing policy free from bureaucratic hassles, to meet the food safety requirements. Therefore, on behalf of the Indian Dairy Association (IDA), consisting

of 162 Institutional Members, a note highlighting the difficulties and the licensing policy under “Regulations” as well as suggestions for minor changes in the “Regulations” was submitted to K. Chandramouli, Chairperson, Food Safety and Standards Authority of India on 13th June, 2012. The recommendations submitted were as under: Single licensing approach In view of the enormity of chain of operations in organised dairy sector, it is necessary that the FSSAI differentiates between a dairy business operator in respect of licensing and registration. Although the “Act” provides for issue of single license for different establishments or premises of a food business operator in same area, the “Regulations” restrict the scope of single licensing of a legal entity having multiple units/premises to a ‘local area’ in place of ‘area’ specified in the “Act”. The ‘local area’ has been specified to be a ‘district’. In case of dairy business, there should be one designated officer in a state to issue licenses. Mohanty, in the meeting with our representatives, had kindly proposed that FSSAI could consider appointing Milk

Cover Story Commissioner of a state as a ‘Designated Officer’ for issuing licenses to dairy businesses. Central/State Licensing As per the “Regulations” dairy units including milk chilling units equipped to handle or process more than. 50,000 litres of milk per day or 2500 MT of milk solids per annum are required to obtain license from Central Licensing Authority. All other units are required to obtain license from the State Licensing Authority. ¬ A dairy business operator may have many milk chilling units and more than one processing unit in a state with varying capacities to handle milk. Obtaining and maintaining central licenses and state licenses for each these units based on individual capacity of each unit will be cumbersome task for the authorities as well as the dairy operator. Delay in renewal of license from one district authority, though other district authorities may have granted approval, would adversely affect the small producers as milk is a highly perishable commodity. Further, the quantity collected in an establishment may be more than 50,000 litres in winter but drop to below 50,000 in summer due to seasonal variations in milk products. This is likely to lead to a conflict of jurisdiction between the Central and State Authorities. Further, a stipulation with regard to an additional Central License for corporate office as contained in the advisory dated 24.01.2012 needs to be re-examined as no manufacturing activities, or any handling of food products are carried out in corporate office of a dairy operator. In view, of the above IDA proposed the following: *The milk handling limit for obtaining

a license from central licensing authority be increased from the currently specified 50,000 litres per day to 1 lakh litres per day. *Further, the ‘capacity limit should refer to the collective capacity of all the units of a dairy business operator rather than individual units for the purpose of issuing a single license by a Central or State Licensing Authority, as the case may be. If the above is not feasible, the single license in all cases should be issued by the State Authority on the basis of collective handling capacity of a dairy business operator with multiple-unit operations. Exemption in respect of milk producers (farmers) under the “Act” As per the exemptions provided in the “Act”, a farmer is not under the purview of the “Act”. Therefore, all farmers (including milk producers) would be exempted from the requirement of registration or licensing under the “Regulations” also. However, by incorporating in the “Regulations” the following, an impression is being created that only farmers who are members of the cooperatives are exempted provided that a producer of milk who is a registered, member of a dairy Co-operative Society registered under Co-operative Societies Act and supplies or sells the entire milk to Society shall be exempted from this provision for registration. To be consistent with provisions of the “Act”, it needs to be deleted. Proposed exemption to village based farmer milk collection activity The requirement of registration/ licensing for village based milk collection premises is not only burdensome but unnecessary for the following reasons:

*Village based milk collection premises are basically set up to facilitate collection of raw milk from farmers. Milk at this stage is not meant for sale or direct consumption but is intended to undergo processing at different location/premises. Pooled raw milk in cans is dispatched to milk chilling centre/ dairy processing plant. Therefore, the entire operation at this point is essentially an extension of the milk production activity of the farmers, like harvesting of agricultural produce. *Farmers are not educated and are not expected to fulfill the diverse and extensive requirements of registration/licensing stipulated under the regulations. *Numerous village based milk collection premises in every state will only add to the regulatory burden without serving any purpose as raw milk at this stage is not meant for sale or consumption. In the case of organized dairy sector, these premises are linked to the relevant dairy establishments, who are licensed entities, ensuring traceability. These are also subject to due diligence and control by the relevant dairy processing establishment (a licensed entity) owing to their linkage. IDA pointed out that milk being a highly perishable commodity required to be chilled or processed within a few hours of milking. Further, more smallholder farmers were involved in production of milk than in production of grains or fruits and vegetables. The process of milk collection was quite distinct from that of collection of grains/fruits and vegetables. It was hoped that FSSAI would consider to issue suitable advisory to all concerned so that licenses for business operators in the dairy sector may be issued keeping in view the above factors. n

july 2012, SAARC OILS & FATS TODAY

Cover Story

Expert Take

Public health is more important than taste & cost — Vijay Sardana

ood Safety and Standards Act is instituted to protect public health from unsafe foods. It is the fundamental right of every citizen to have access to safe food. It is the duty of the government to ensure safe food. As a country we have to decide what is more important, safe food to eat to protect public health or survival of unhygienic shop on road side and employment and earning of shop owners? One shop can make hundreds of people sick. If our Parliament has passed this law it means our policy makers and peoples’ representatives want safe food for masses. Why every change is taken as negative development by various stakeholders? Why, as a society, we don’t want to change for better and safer future? Why affected parties feel their commercial interest is more important than public health? How much it cost to ensure clean water, clean utensils and clean and proper storage of ingredients used in mithai shops and namkeen shops? Consumer is willing to pay for clean and safe food. Look around, you will find Hygienic shops do better business then dirty shops. It means to provide safe and hygienic food is always better business strategy. No one wants unsafe food at discount, because no one wants to be sick, not even those who oppose new safe food laws. Safe food never reduces business and shut shops. It is a mindset issue. It is very well known fact that about 80 per cent diseases are due to bad water and bad food. Most of the small scale food operators use traditional skills and knowledge in making food items which is typically traditional concepts of indigenous fast foods of India like mithais and namkeens. If prepared hygienically, many of them are better in nutrition in 16

SAARC OILS & FATS Today, jUly 2012

comparison to their western counter parts. Unfortunately, in traditional shops, hygiene is not important parameter. The major focus is cost i.e. profit or taste i.e. sales and not food safety. Many of these shopkeepers do use ingredients to keep cost low and taste good in mind like synthetic non-food grade colours, excessive artificial flavors and sweeteners, water from unhygienic source, utensils are washed with unclean water, leftover food is reprocessed or frying in polymerized and oxidized oils to save cost, workers’ personal hygiene is never considered. Location can be on drainage systems. These are just few of the examples. Unhygienic foods are biggest concern for public health. Have you ever seen any statistics indicating food positing cases in India or sickness due to bad food in India? You will not get these figures because hospitals and doctors don’t maintain such records. FAO report says 30% population in developed world suffers due to bad food. Can you imagine what will be the situation in developing country like urban India and under-developed rural country like Bharat? Licensing is required basically to ensure that there should be minimum food safety requirements with every food business operator. After all Government is accountable for public health and there must have check on who is supplying what, to consumers. In America, there is Bioterrorism Prevention and Preparedness Act, because food can be misused and can be infected to create public health crisis of unpredictable level. Every country is changing their laws to save public from bad and contaminated food. If we are progressing in that direction, why so much opposition? I agree and fully support that there

must be a mechanism which is fast, fair and hassle free. There must be space and level playing field for Indian traditional food preparations. Any delay at any level only brings bad business practices into play. All the license fees collected should be used to improve the system, infrastructure like testing laboratories and to train the small players and if possible support them by training and provide facilitation services to ensure food safety and hygiene in their operations. There is no alternative to safe food and food safety. Employment and economic considerations can be addressed within food safety parameters. Major Challenge is only Mindset and desire to change. Way forward for mithai and namkeen shops If there are any items or ingredient which mithai or namkeen shops association wants to add to food, if not permitted, they can make representation to FSSAI with the justification for use in food items. If required, under Right to information they can ask on what basis Food safety Authority has rejected their demand. FSSAI will provide the decision of the committee and with relevant facts. So I don’t think it is such a big issue. But yes, if anything which is used by FBO, which is unsafe, even if it is adding taste or look of the product it must be stopped and banned. Public health and safety is more important than taste and cost. No civilized society will ever support unsafe food and Courts will stop sale of such products, even if authority will permit such products. So, best option is focus of safe and good food. n (Views expressed here are personal. Author has no mandate to represent any association or organisation on these matters)

july 2012, SAARC OILS & FATS TODAY

Achievement

FM honours Vijay Sardana for contribution to commodity markets

ijay Sardana, a well-known name in Indian commodity markets, has been conferred with the Special Award for his contribution in growth of Indiaâ&#x20AC;&#x2122;s commodity markets. The award is also an acknowledgement of his constant efforts to make commodity markets better. It was presented by Pranab Mukherjee, Finance Minister of India, in the presence of Subhash Chandra, Chairman of the Zee Group, during 3rd Financial Markets Conclave, and on the occasion of Indiaâ&#x20AC;&#x2122;s Best Market Analyst Award-2012, on 16th June, in Mumbai. Vijay Sardana is a Post Graduate from IIM-A, CFTRI and ILI, and is also Management Committee Member of Solvent Extractors Association of India (SEA), besides members of other important associations and professional bodies. He is currently Chief Operating Officer (COO) and Director of Jaiprakash AgriInitiatives Company Limited, Noida, and Director, Achieversâ&#x20AC;&#x2122; Resources, New Delhi. He has experience of more than two decades in various leadership positions, and committed himself for the development of efficient and fair commodity markets and globally competitive agribusinesses through his knowledge, experience, insight and determination. He has contributed extensively for the development of 18

SAARC OILS & FATS Today, jUly 2012

commodity markets and value addition in agro-commodities by implementing the concept of global competitiveness by with the deep and insightful understanding of complex interrelation between social, economic, technical, legal and political aspects of commodity markets and value added agribusinesses. The visionary man has travelled more than 20 countries, and worked on wide range of issues affecting agro-commodities and agribusinesses from almost all agro-climatic situations on various aspects with wide range of business houses, international development organizations and policy making bodies around the world. He has also contributed through his projects, trainings, writings, researches, critical analysis for various stakeholders, and had interactions with various committees of policy making bodies, institutions and publications and was invited to many national and international forums. His understanding of complex dynamics of commodity markets and agribusinesses is a great asset for investors, professionals, executives, farmers and policy makers. He is among the few whose in-depth knowledge and hand-on professional work and views are well recognized in commodity trade and agro-based industries.

Commodity Market

Future & Spot markets need modernization minus entry or exit barriers — Vijay Sardana

There have been a lot of debates about the intentions of the players involved in futures markets, as it is said that farmers are not getting any benefit from this trading. For instance, India produces 10 Kg of Soya, but the futures trading are done for 1000 kg or more. The profits are pocketed by investors, traders and middlemen. Vijay Sardana, who has recently been conferred with the Special Award by Pranab Mukherjee for his extraordinary contribution to commodity markets in India, gave his views to SAARC Oils & Fats Today on this issue and also the new Food Act. Excerpts: First of all, Media Today Group congratulates you for winning the Special Award from Pranab Mukherjee for your contribution to the advancement of commodity markets in the country…... Our first question is about your illustrious, experience-rich, and two-decade long journey from CFTRI to now as Chief Operating Officer (COO) with large industrial house. How do you feel about such a rewarding career and way forward for agriculture space in India? At the outset, let me convey my thanks and heartiest gratitude to my teachers, parents, family, friends and well-wishers for their constant support and guidance. They all provided me intellectual inputs, encouragement and moral support to pursue career in this non-glamorous sector of Indian economy. Whenever I undertook challenging assignments and tasks, they were instrumental in enhancing my knowledge, skills and capabilities. It was tough with many challenges but enriching and satisfying journey. This recognition gives confidence that the path was right and give encouragement to do more and because still long way to go. Since 1984, I am associated with agribusiness universe in various capacities. Started by journey as student and performed my responsibility as Extension Worker, Production Executive, Sales Engineer, Head of Departments and Head of Organization. I worked with NGOs, Cooperative sector, Government Policy Making Bodies, Industry bodies, Consumer bodies, Farmer Groups, Private Sector Firms and International Development Agencies like UN Bodies, Large Multinational Organizations in India and aboard. It was clear from the day one that business and market is a dynamic place, one must constantly upgrade knowledge base and skills to remain relevant with changing times. I was continuously acquiring qualifications in technology, law, various aspects of management like human resources management, finance management, economics and policy making from some of the best

institutes in the country. I also travelled to every state of India and extensively around the world to have first-hand experience of ground reality in every aspect of agribusinesses and food world. After spending more than 25 years in agribusinesses in various capacities, it is clear that agriculture and agribusiness needs extra dedication and is very critical for political and social stability in India. As a country with very high population density and poor agriculture productivity, it will always be challenging to ensure food security to masses and employment to unskilled workforce. Unless we develop an action plan at state level and district level to address these two biggest challenges of India, the political and social stability of India cannot be ensured for too long. Unfortunately, agriculture and agribusinesses are not getting due attention in terms of technology intervention and financial and intellectual resources to create infrastructure and human resource suitable for agriculture and agribusinesses. This will create serious problem with growing population and shrinking nutrition availability. We are running out of time because time lag between planning and execution will take three to five years and by then this will complicate the situation on ground. I wish more and more media houses, private sector and policy execution bodies will devote more time and resources to address the economic, social, political and foreign policy aspects of agriculture, food security and agribusiness space because this sector will decide the peace and prosperity of India. I must thank Zee Group for organizing this award for recognizing commodities and agribusiness space and brought this vital economic and social space in public domain. They have dedicated very informative and contemporary show called “Mandi Live” for agri-food-commodity space.

july 2012, SAARC OILS & FATS TODAY

Commodity Market 1. As you know there have been a lot of debates about the intentions of the players involved in futures markets, as it is said that farmers are not getting any benefit from this trading. For instance, India produces 10 Kg of Soya, but the futures trading are done for 1000 kg or more. The profits are pocketed by investors, traders and middlemen. There is some lacuna in the system as farmers remain poor and needy despite many noble schemes and initiatives. Solvent Extractors Association of India (SEA) has also recently made a representation to the Government about the black marketing of mustard oil through futures markets, and sought total ban of this anti-farmer activity. As a commodity expert, what is your frank opinion about all this? We are adding more than one million populations every month in this country. Land under agriculture for food production is shrinking. Per capita availability of food is going down on daily basis. Commodity prices are very closely related to demand – supply situation. We are importing 60% of edible oil and pulses requirement from international market. Dollar is becoming expensive it means imported edible oils; pulses and fuel will become expensive. This will have cascading effect. Local transportation and labour cost is going up. Interest cost on bank loans are going up. Under this situation what one should expect? Any sensible and logical thinker will say prices have to go up. This is what is also reflected in futures market due to price discovery mechanism. Unless we improve productivity and per capita food

– supply situation it only indicates there are external factors playing some role or something abnormal in Indian food market or there is either political or administrative interference in the market. These activities hide or distort correct market signals. This also indicates the potential risks in operation of the market and the will create apprehension in the minds of investors and will discourage investment in agri-food space by investors. In order to control the extreme volatility in the market, Government of India can develop a safeguard mechanism in line with WTO Agreements and develop similar safeguard mechanisms under Essential Commodity Act. They must be transparent, predictable and fair. Arbitrary decision making based on political compulsions and consideration will destroy the fair market and will discourage investments in agri-food space. In international forums, as country, we want world to become free and fair market for all. We have signed many international treaties in this regard like WTO, SAARC, ASEAN, etc. On the other hand, within India we are not able to integrate all states into one common market; every state has its own taxation policy and documentation requirements. We are not able to bring all states on common platform of one single market with common rules and regulations called Indian Common Market. Domestic regulatory and administrative issues are adding to transaction cost. Very often imported foods are becoming cheaper. These imported foods are adding to current account deficit and also hurting farmers’ interest.

As far as farmers are concerned, one must appreciate that individual farmer like retail investors in capital market is not always fully equipped to take the benefit of market dynamics. In capital market, the concept of Mutual Fund is helping retail investors. There is a need to have some similar option for farmers’ collective strength in futures market availability in the country it will not be possible to control food inflation. High inflation of food will lead to serious social and political problems. Every farmer wants better price for his crop, every consumer want food at low cost. This is not possible without workable compromise. This compromise is adding to subsidy burden. The only way to address this issue is technology intervention in production and post-production activities. Why future transactions are in multiple times of actual production and what is the way forward to check inflation? Future trading is not always physical transaction, very often it is paper transaction. Quantum of transaction in future trading shows how many times people do trading on exchange and change their positions on futures exchanges. More the transactions, more is the insecurity about the future. Every one changes its position to minimize risks in the markets due to unpredictable behavior of the markets and policy environment. It means frequent transactions means people are covering their risks and not sure about the future of their positions and future of business environment. In stable and predictable environment such transactions will be less. Now, if prices are going down against fundament demand 20

SAARC OILS & FATS Today, jUly 2012

Similarly, on investment front, on one hand government want private investment in areas like godowns and warehouses and on the other had they impose restrictions on quantities to be stored under Essential Commodity Act without any predictable and fair formula. How any investor will be able to recover investment made in such situation. That is why large players in private sector are not very excited about investing in warehouses and godowns. The cost of Wheat and paddy rotting on road sides is much more than revenue collected due to these policy tools. There must be mechanism to address such situations and encourage investments. It is high time we should not only review the all regulations and their implication on transaction costs and inflation. Regulations governing Futures Market and Spot markets should be reviewed with one agenda to bring more players and competition into the systems. Bihar has abolished APMC Act and now registering maximum growth in agriculture space. Why other states are not keen? Both types of market need modernization and participation of all players without any entry or exit barriers. This will lead to perfect competition and will discover true prices for the commodities. These markets will send correct signals to policy

Commodity Market makers about demand-supply situation in India and its implication of inflation and import bills. This will also tell private investors where to invest for what activity. We have to think long term and avoid temptation of short term comfort and revenue generation. What can and should be done to better commodity markets, and any mechanism to better the condition of farmers? Please by no means under estimate commercial sense of average farmer. They may not be operating at large scale but they know how to bargain better deals. With mobile technology and penetration of mass media options, farmers is well conversed with the price movements. In remote villages, now-a-day’s farmers do refer prices of commodity of their interest and also track price movements. Visit to any mandi and interaction with any farmer whose crop is traded on future market will give you an idea how much he knows about commodity markets, what should be the price for his crop and from where he gets the information. The first thing he has learned is how to ask for better price. The information is available to him, but he may not be able to fully utilize the information for his advantage because of his poor bargaining power due to lack of support systems in mandies like storage facilities, transportation facilities, cleaning facilities. Cost of transaction in mandies is very high for average farmers because of small quantity they handle. In order to save his cost of transaction, he prefers to sell his goods on “as-it-is-whereit-is-basis”. In well equipment mandies farmers are in winning situation. Please visit Unjha mandi or Amlsad mandi in Gujarat; you will see what collective bargaining power of farmers can do. It should be a MUST visit for all agribusiness professionals and well-wishers of farmers. Commodity markets are evolving with time. Better rules and regulations, better understanding of the systems, more market players including farmers, better working environment and proper enforcement of various regulatory provisions will make markets better and more reliable. How farmers can take benefit of futures market? As far as farmers are concerned, one must appreciate that individual farmer like retail investors in capital market is not always fully equipped to take the benefit of market dynamics. In capital market, the concept of Mutual Fund is helping retail investors. There is a need to have something similar option for farmers’ collective strength in futures market. Under practical situation, we should encourage farmers’ cooperatives to play effective role on behalf of the farmers. Amul, IFFCO, KRIBCO, etc. are very good examples where farmers collective bargaining has made big difference and they are leading organization today. Collective bargaining power of farmers will act as major force and benefits to farmers may multiply. They will be able to face the strong market forces and at the same time they will be able to utilize professional services which are currently not available to individual farmer. n (Views expressed here are personal. Author has no mandate to represent any association or organisation on these matters)

Commodity market to play a critical role in economic growth

he commodity market will play a critical role in India’s future economic growth, a seminar on ‘Agribusiness and Commodities Price Risk Management’ VC Chaturvedi, Director, Forward Market Commission, has observed. The addressing the seminar in Thrissur stakeholder awareness and education seminar to discuss hedging and price risk management in commodity markets was organised by The Hindu Business Line in association with the National Commodity and Derivatives Exchange (NCDEX) and the Forward Market Commission (FMC). Addressing the seminar here on June 28, G. Chandrashekhar of The Hindu Business Line said that rising income, population growth and the current low per capita availability in the country would create demand for all kinds of goods and services. “The country’s major growth sectors of the future, including food, textiles, housing, infrastructure and energy, are commodity intensive. India is set to become a major producer, consumer, exporter and importer of a wide range of commodities,” he said. The Indian market, especially the commodity market, had been integrating with the global market as a result of the free-trade environment created by internal and external trade reforms, he noted. A global view of the market was necessary for stakeholders as the risk was high on account of domestic and global factors. Price risk management would be the most critical factor, he said. “Commodity future trading is a secure method of managing price risks. Future trading benefits stakeholders through price discovery and price risk management,” he said. V.C. Chathurvedi, Director of FMC, offered a regulator’s perspective on the commodity market. He explained the huge scope of commodity market and the measures initiated by the FMC to regulate the trade. He noted that Kerala was a major contributor to the commodity market through pepper and rubber trading. V.V. Ganesan, vice-president of NCDEX, spoke about the benefits of commodity futures trading. He noted that trading decision should be based on sound research and commercial intelligence. Akshay Agarwal, Managing Director, Acumen Commodities (India), spoke about the ‘Role of the broker in the commodity trading’. “The broker plays an important role in giving depth and liquidity to the market, and informing investors about the risks involved,” he said. According to commodity trading critics, in all the liquid contracts the trading volume in futures is very high and not just three times the physical market production. In case of guarseed, the trading volumes are as high as 700 times the annual production. Thus futures are not an adjunct to the physical market. There is a need to review the justification of the contracts which attract such high trading volumes disproportionately to the physical production of the commodity. Speculation cannot be the justification for permitting such contracts, particularly when we are confronting sticky inflation in commodities.

july 2012, SAARC OILS & FATS TODAY

Food Safety

Quality standards of veg oils & oil products

Major amendments in pipeline

ils and fats form an important part of a balanced human diet. Besides being a major source of energy for the body, it aids in the absorption of important micronutrients like vitamins A, D, E, & K, and others. Both animal and plant-derived foods contain oil/fat, and when eaten in moderation aids proper growth, development and maintenance of good health. According to the American Heart Association, the optimum intake of fat for an adult is 30 per cent of total caloric intake. Further, vegetable oils are the only sources of essential fatty acids to the body. Essential Fatty Acids (EFA) are those fatty acids which the body cannot synthesize and need to be supplied through diet, and are very essential for healthy living. Thus, availability of quality edible oils & fats plays very important role in the Food Safety and Nutritional Safety of our country. Vegetable oils and fats are centrally administered commodities in India. The rules and regulations for these commodities are made by the Central Government. As per the current Allocation of Business Rules, the Department of Food & Public Distribution in the Ministry of Consumer Affairs, Food & Public Distribution executes the policy matters including availability and pricing of vegetable oils and fats in the country. However, after the adoption of the Food Safety and Standards Act 2006, safety and standards of edible oils, along with all other food items, fall under the purview of Food Safety and Standards Authority of India under the Ministry of Health and Family Welfare. Multiplicity of laws Before this Act came into being, more than a dozen food laws under several Ministries governed the food sector. These laws were often inconsistent, inflexible and non-responsive to science and innovation. They created confusion in the minds of consumers, manufacturers and investors and increased the costs of business, affected quality, and discouraged innovation. Besides cost competitiveness, the issues in product innovation and export are: quality conforming to international standards, brand and market building on global scale, ability to deal in volumes and consistency in supply. Moreover, exports are inextricably linked to the local production system, and cannot be sustained without systematic and qualitative expansion of the domestic industry & market. It was to mitigate the resultant misery and confusion on the part of industry and trade and to ensure food safety in the country, that a bill on Food Safety and Standards was introduced and adopted in the Parliament in 2006. This Act 22

SAARC OILS & FATS Today, jUly 2012

— Dr. A. Madhavan, Asst. Director, FSSAI consolidates various acts and orders that have hitherto handled food related issues, in various Ministries and Departments under the Central Government and endeavours to overcome various levels of administrative hurdles beset with implementation of earlier food Regulations and Acts. The Food Safety and Standards Authority of India (FSSAI) has been established as mandated under this Act. New rules and regulations Though Food Safety and Standards act was passed by the Parliament in 2006, various Rules and Regulations have been framed and notified during August 2011, They are: (i) Food safety and Standards Rules, 2011; and (ii) Food safety and Standards Regulations, 2011 The above Rules and Regulations have been notified on 1st August 2011 and came into effect from 5th August 2011. The Act also aims at establishing a single reference point for all matters relating to food safety and standards, by moving from multi level, multi-departmental control to a single line of command. To this effect, the Act established an independent statutory authority -- the Food Safety and Standards Authority of India with head office in Delhi. Under the Act, State Food Safety Authorities also have been created. FSSAI has given the task of laying down science-based standards for articles of food and to regulating their manufacture, storage, distribution, sale and import to ensure availability of safe and wholesome food for human consumption. “Food safety” means assurance that food is acceptable for human consumption according to its intended use. The job of the Food Safety and Standards Authority of India (FSSAI) and the State Food Safety Authorities is to enforce various provisions of the Act, Rules and Regulations: As per its mandate, FSSAI performs the following functions: 1. Framing of Regulations to lay down the Standards and guidelines in relation to articles of food and specifying appropriate system of enforcing various standards thus notified. 2.

Laying down mechanisms and guidelines for accreditation of certification bodies engaged in certification of food safety management system for food businesses.

Food Safety 3.

Laying down procedure and guidelines for accreditation of laboratories and notification of the accredited laboratories.

4. To provide scientific advice and technical support to Central Government and State Governments in the matters of framing the policy and rules in areas which have a direct or indirect bearing of food safety and nutrition. 5.

Collect and collate data regarding food consumption, incidence and prevalence of biological risk, contaminants in food, residues of various contaminants in foods products, identification of emerging risks and introduction of rapid alert system.

Creating an information network across the country so that the public, consumers, local bodies etc receive rapid, reliable and objective information about food safety and related issues.

Provide training programmes for persons who are involved, or intend to get involved in food businesses.

Contribute to the development of international technical standards for food, sanitary and phyto-sanitary standards.

Promote general awareness about food safety and food standards.

Salient Features of FSS Act Clause 3.1(j): Food means any substance, whether processed, partially processed or unprocessed, which is intended for human consumption and includes primary food to the extent defined in clause (zk), genetically modified or engineered food or food containing such ingredients, infant food, packaged drinking water, alcoholic drink, chewing gum, and any substance, including water used into the food during its manufacture, preparation or treatment but does not include any animal feed, live animals unless they are prepared or processed for placing on the market for human consumption, plants, prior to harvesting, drugs and medicinal products, cosmetics, narcotic or psychotropic substances. Clause 3(n) says that: “Food Business” means any undertaking, whether for profit or not and whether public or private, carrying out any of the activities related to any stage of manufacture, processing, packaging, storage, transportation, distribution of food, import and includes food services, catering services, sale of food or food ingredients. Further, “food business operator” in relation to food business is defined as a person by whom the business is carried on or owned and is responsible for ensuring the compliance of this Act, Rules and Regulations made thereunder. FSS Act makes it mandatory for all Food Business Operators in the country to be registered or licensed in accordance with the procedures laid down in the regulations. Hence Licensing or Registration of Food Business Operators (FBOs) shall be an important activity under FSSAI. This not only envisages integrating the individual licensing activities of various divisions

of FSSAI under a single Licensing System at Central or State Level, but also requires Registration of all Food Business Operators using Local Administration Bodies, when their activity does not require a License. All of these are covered under the Food Safety & Standards Rules and Regulations, 2011. This will cover not only the Industry and trade in its larger sense, but the small and petty food business operator down the level of small towns and villages. About 5 million outlets are engaged in the retailing of food. While such outlets have the advantage of proximity to consumers, these are associated with low product quality, low hygiene and nonuniform standards. Fragmented and unaccounted retail structure also results in inefficient storage, transportation and distribution, wastages and value loss which will be addressed by the present Act. Novel concepts like “food safety audit” and “Food Safety Management System (FSMS)” has been introduced for the first time in any Regulation being implemented by the Central Government. “FSMS” means the adoption of Good Manufacturing Practices, Good Hygienic Practices, Hazard Analysis and Critical Control Point (HACCP) and such other practices as may be specified by regulation, for the food business which are at par with international standards. Notifications Seven different notifications have been issued under the FSS Regulations, 2011 on various areas of operation on 1st August 2011, made effective from 5th August 2011. They are: 1. FSS (Licensing and Registration of Food businesses) Regulation, 2011 2.

FSS (Packaging and Labelling) Regulation, 2011

FSS (Food product standards and Food Additives) Regulation, 2011 (part I)

FSS (Food product standards and food additives) Regulation, 2011 (part II)

FSS (Prohibition and Restriction on sales) Regulation, 2011

FSS (contaminants, toxins and residues) Regulation, 2011

FSS (Laboratory and sampling analysis) Regulation, 2011

Prior to the above notifications, specific Acts, Rules and Regulations governing vegetable oils segment in the country were: 1)

Essential Commodities Act, 1955;

The Prevention of Food Adulteration Act, 1954 and Rules (1955) made there under;

Vegetable Oil Products (Regulation) Order, 1998;

Edible Oils Packaging (Regulation) Order, 1998; july 2012, SAARC OILS & FATS TODAY

Food Safety 5)

Solvent Extracted Oils, De-Oiled Meals and Edible Flour (Control) Order, 1967; and

Pulses, Edible Oilseeds and Edible Oils (Storage Control) Amendment Order, 1997.

The Consumer Protection Act, 1986;

Bureau of Indian Standards Act, 1986.

Standards of Weights and Measures (Packaged Commodities) Rules, 1977; and

10) Agricultural Produce (Grading and Marking) Act, 1937 As per the mandate given under Section 97 of FSS Act, various important Acts and Orders hitherto dealt with food related issues were repealed with effect from 5th August 2011 (2nd Schedule of the Act). They are: The 2nd Schedule (FSS ACT, 2006) 1. The Prevention of Food Adulteration Act, 1954 (37 of 1954). 2.

The Fruit Products Order, 1955.

The Meat Food Products Order, 1973.

The Vegetable Oil Products (Control) Order, 1947.

The Edible Oils Packaging (Regulation) Order, 1998.

The Solvent Extracted Oil, De-oiled Meal, & Edible Flour (Control) Order, 1967

The Milk and Milk Products Order, 1992.

Any other order issued under the Essential Commodities Act, 1955

The above Acts/ Orders have been repealed as such without any substantial changes or amendments thereupon. Each of these will be reviewed and updated in due course of time. Currently, the public and stakeholders have been called upon to offer comments on various aspects including safety and standards of various food products so that the upcoming revision of standards etc. will become meaningful and universally acceptable. Vegetable Oils & Fats Among the repealed Acts/ Orders, the following are those directly dealing with vegetable oils & fats. 1.

The Vegetable Oil Products (Control) Order, 1947.

The Edible Oils Packaging (Regulation) Order, 1998.

The Solvent Extracted Oil, De-oiled Meal, & Edible Flour (Control) Order,

SAARC OILS & FATS Today, jUly 2012

1967.

The Prevention of Food Adulteration Act, 1954 (37 of 1954).

As mentioned earlier, quality standards of various vegetable oils and oil products, are being revised. Major amendments are in the pipeline in respect of melting point of vanaspati and other hydrogenated vegetable oils, trans fats content of hydrogenated vegetable oils, usage of palm stearin and accompanying requirements on label declarations. The draft Notifications are being finalised. Once accepted and notified, vanaspati and other hydrogenation based industries in India will go for a sea change in their functioning. These changes will be in line with international standards, which the scientific community had been deliberating for quite long time. Labelling Requirements ‘FSS (Packaging and Labelling) Regulation, 2011’ notified on 1st August 2011, and made effective from 5th August 2011, describes all the parameters in respect of packing and labelling of Food as defined under Clause 3.1 (j) of FSS Act, 2006. Clause 2.1.2.2 gives specific packaging requirements for edible oils & fats. Clause 2.2.1 gives details of general requirements of labelling and further, 2.2.2. gives those of Pre-packed foods. Clause 2.4.2. under this Regulation stipulates specific labelling requirements as on edible oils & fats. Sub-clause 2.2.2.3. (iii) further describes Nutritional information in the label in respect of edible oils & fats as: “The food, in which hydrogenated vegetable fats or bakery shortening is used shall declare on the label that ‘hydrogenated vegetable fats or bakery shortening used- contains trans fats; Provided further that, a health claim of, trans fat free’ may be made in cases where the trans fat is less than 0.2 gm per serving of food and the claim ‘saturated fat free’ may be made in cases where the saturated fat does not exceed 0.1 gm per 100 gm or 100 ml of food.” Further, ‘FSS (Prohibition and Restriction on sales) Regulation, 2011’ offers conditions relating to sale of Food items. Sub-clause 2.3.14. (10 to 13) as well as Clause 2.3.15 specifically mention provisions relating to sale of vegetable oils & fats. Sub-clause 2.3.15(1) (a) and (b) read as: 2.3.15: Special provisions relating to sale of vegetable oil and fat: (1) No person shall sell or expose for sale or distribute, or offer for sale, or dispatch, or deliver to any person for the purpose of sale any edible oil— (a) Which does not conform to the standards of quality as provided in the Food Safety and Standards Act, 2006 (34 of 2006) and rules/regulations made there under; and (b) Which is not packed in a container marked and labelled in the manner as specified in FSSAI Regulations Provided that the State Government may, in the public interest, for reasons to be recorded in writing, in specific circumstances and for

Food Safety a specific period by a notification in the Official Gazette, exempt any edible oil from the provisions of this Act” As already mentioned, quality standards of all the food items are stipulated under the FSS (Food Product Standards and Food Additives) Regulation, 2011 (Part I and II). New products are being added and those existing standards revised to make them in line with cotemporary technological developments and international standards like CODEX and EU Standards. A time frame has also been drawn for this purpose as stipulated under ‘Procedure and Time line for Review of Standards of Food products and Additives under FSS Regulation, 2011’. The estimated time lines are: l Receiving suggestions (from public/specialists etc.)

: 31st March 2012

l Examination of suggestions

: 2 months

l Report of specially constituted Committees

: 2 months

l Consideration by Scientific Panel

: 2 months

l Consideration by Scientific Committee

: 2 months

l Consideration by FSS Authority

: 2 months

l Approval of Government/ Draft Notification

: 2 months

l Receiving public comments

: 2 months

l Disposal of comments and finalising draft

: 3 months

l Approval of Government and final notification

: 2 months.

As envisaged under FSS Act 2006, FSSAI plans to bring under its fold all the Food Business Operators (FBOs) in the Country starting from street vendors, petty shops & restaurants, transporters, retailers, wholesalers, stockists to big hotels, the multinationals and food giants. With this herculean task ahead, FSSAI has already commenced granting licences/ registrations to FBOs category-wise. All applications are to be made on-line, exception may be very small vendors, petty business operators etc. A prescribed fee has to be paid while seeking a licence/registration. The software is user friendly. Depending on the installed capacity or annual turnover (of operation), an applicant will be navigated to either Central licence of State licence/registration. FBOs holding valid licences/registrations issued under various Acts or Orders which stand repealed now, are being granted conversion of their licences/registration to new licences/registration under the new Scheme. There are Central licences, State licences or State Registrations depending on the installed capacities of operation or the annual turn-over. Clear cut policy has been announced and circulated through press notes and are displayed on web-page {fssai.gov.in}. Designated Officers and Authorised Officers and staff for Central licensing have been put in place whose details are available on the web-page. State Governments have notified their Food safety Commissioners as per the Act, along with Food Safety Officers who will grant licences or registrations under State licensing/registering Scheme. Though Central licensing are in progress, only few state Governments have commenced actual operations, mainly due to infrastructural handicaps. n

So, all the stake holders are free to offer inputs towards making the specifications of food items, especially edible oils and fats as flawless as possible.

FSSI

CENTRAL

LICENCE

STATE

REGISTRATION

july 2012, SAARC OILS & FATS TODAY

GM Policy

Gafta Report

EU’s GM policy

‘Constraints remain political rather than technical’ June Arnold, Head of Policy, Grain and Feed Trade Association (Gafta), London

he world’s population is growing rapidly and there is a real need to increase food production to feed the world of tomorrow. Some countries are embracing new technologies and are commercialising biotechnology traits at a rapid rate. Argentina, Brazil, US - all key grain and oilseed exporting nations - are increasing the pace of GM approvals. According to the latest ISAAA report 2011, biotech crop production is up 12M ha, an 8% growth on last year and reaching a record of 160M ha. The US leads with 69M ha, Brazil 303M and Argentina 23.7M ha of biotech crops in 2011 (see chart below):

Rising GM crop area With 40% of the world’s population, China, India, Brazil, Argentina and South Africa grew 44% of global GM crop area in 2011. Brazil is steaming ahead and is emerging as a leader in GM crop production, following three years of consecutive growth in GM crop production, increasing its area by 4.9M ha or a 20% year on year increase, mainly due to a fast track approvals system. GM soybeans remain the dominant GM crop produced globally, occupying 47% of the global biotech area followed by maize, 26

SAARC OILS & FATS Today, jUly 2012

cotton and canola. There are 29 different countries planting GM crops and 60 countries have granted regulatory approvals for GM imports. Many of these countries are key suppliers to the EU market. . Against this background, the EU has one of the strictest approval processes globally. As a result, EU approvals of biotech crops lag behind many of the production and exporting countries. This asynchronous approvals issue means trade with time EU continues to be very difficult with many obstacles constantly threatening the supply of feedstuffs. Stacked traits are becoming increasingly popular with farmers for agronomic benefit globally and they now occupy 25% of the global GM sown area. As the EU regulatory systems require approval of each unique GM event in a stacked trait, this adds to longer approval timelines and further hinders free trade: There is a rapidly expanding consumer market for meat protein, mostly poultry, in China. As such, imports of commodity soy for feed is surging and expected to reach nearly 60M tonnes this year. Europe is essentially giving up its leverage on commodities to Asia. Export trade: The international trade has once again experienced stoppages when looking at single GM events of exports of maize products to the EU, pending approval of the MIR162 maize event. For example, US maize co-product sales to EU-27 countries drastically slowed down in October and almost ceased, ever since having a significant effect on the livestock sector particularly in those EU markets with direct sea access. The MIR162 event has been approved in all key exporting markets for commercial production – Brazil, Argentina and the US (about 2% of total maize acres in the US were sown in 2011, with further plantings in spring

GM Policy 2012). The GM committee of the European Food Safety Authority (EFSA) finalised its scientific evaluation on MIR162 with publication expected on 18th June. Gafta has asked the Commission to speed up the approval so that the maize products trade can re-open. We are hoping for a positive decision towards the end of the year with discussions expected to start on 16th July with member states or at the latest in September. Gafta is following this dossier closely with the biotech industry and relevant authorities. Three soy events were approved (MON 87701 A5547-127, 356043) in the EU in-February 2012, which helped to open the door to imports. Not forgetting Brazil has approved CV127 GM soy event for cultivation, while it is under assessment in US and Canada. The trait is also under assessment in the EU and additional data has been requested but the hope is for an EFSA opinion soon. Brazil, US and Argentina no longer need to cater to the strict EU requirements with an Asian market demanding volumes. The problem is likely to worsen with the approval of further GM soybean events in exporting countries, which has the potential to starve the EU of vital food and feed imports. There are also high oleic acid soybean events still under assessment in the EU but which have been planted this spring on 150,000 ha in a tight loop system and under strict contractual basis in the US. Constraints: The EU did re-define its zero tolerance policy and approved a 0.1 % threshold (lowest detectable level) for not yet approved GM events in feed consignments last July. This was a positive step forward although only for feed, but it is the regulatory system which is creating more obstacles for the trade. The regulatory system is hampered by member states’ political stonewalling of EFSA’s opinions. There is a need for time effective regulatory systems that are responsible for promoting food production and at the same time increasing global food security. The trade’s view is that the regulatory systems and politics around GM will determine the future of GM in the EU rather than scientific progress. Constraints remain political rather than technical and challenges still lie ahead for the international trade. (Courtesy: Gaftaworld)

How can EU approvals system for GMOs be improved?

Symptoms A record 73 ‘products are currently waiting to be approved, more than the EU has managed to approve in the last two decades. Worse, the backlog is increasing. On average, twice as many products are submitted to the EU system each year than are approved. Whereas GM crops are typically approved for cultivation in the Americas in just over two years, it takes the EU on average nearly four years to approve the same products for import. Causes The backlog cannot be explained simply by stating that the EU has one of the strictest approval systems in the world. On paper, the legislation is demanding but workable, and the process is science¬ based. In practice, (1) risk assessment is increasingly hampered by administrative complications, and (2) a favourable risk assessment from EFSA is often followed by an extensive delay before final approval. In the EU, an official confirmation of the product’s safety for humans, animals and the environment does not suffice to get the product approved. The risk assessment is followed by a political vote by member states, several of which routinely vote contrary to the EFSA opinion. The requirements for applicants in the risk assessment phase are a fast moving target, and all too often new requirements are applied to applications that are already in the assessment process, resulting in major delays because suddenly new studies have to be conducted which were not required at the time of submission. Worse, the Commission’s draft regulation to establish new guidelines for the risk assessment of GM products would further distance the EU from the approaches taken by the major trading partners in agricultural commodities around the world. Effects The backlog of EU authorisations for imports, combined with the fact that European farmers are forbidden to grow most GM crop varieties, contributes to rising food prices, undermines the competitiveness of European farmers, increases the EU’s import dependency, and creates legal uncertainty for import operators. In addition to trade disruptions, Europe’s reluctance to biotechnology affects developing c6untries, particularly in terms of inhibiting technological progress. Outlook The total number of products submitted to the EU authorisation process can be expected to increase from about 100 today to around 150 in 2015. Assuming an approval rate of six products per year (the average of the last few years), this would increase the number of products waiting for approval in the EU system to over 90 (up from 73 now). To maintain the size of the current backlog, the approvals rate would need to be increased to 11 per year. What is needed? Discussion with trade contacts brought three areas that need to be addressed with regard to the dire situation for imports to the EU: 1. Extend the legal standards for testing of presence of unapproved GM products to cover shipments intended for all uses, not just for animal feed as is currently the case. Gafta welcomes the Commission’s forthcoming proposal to introduce a threshold for food products as well as feed. 2. Speed up the full approval of GM dossiers, including by scrapping the draft risk assessment regulation and by applying an expedited assessment to stacks and renewals. 3. Establish a 5% threshold for LLP of products of modern biotechnology that have been deemed safe in one or more countries at 100% exposure.

july 2012, SAARC OILS & FATS TODAY

Feed Regulations

EU Catalogue of Feed Materials

Setting maximum ‘contents of chemical impurities’ — Emilie Leibovitch (CEFS), Christophe Derrien (COPA-COGECA) and Arnaud Bouxin (FEFAC), EU Coordinators of the EU Feed Chain Task Force

he EU Regulation (EO No 767/2009 provides in its Annex 1(1) that as of September 2012, feed materials shall be free from impurities resulting from their manufacturing process and from processing aids, unless a maximum content is set in the EU Catalogue of Feed Materials, The EU gave to the EU Feed Chain Task Force (EU FCTF) the responsibility to propose such maximum contents, even though the EU decision makers have final say on the content of the Catalogue. A strict reading of the law, which seems to require setting maximum contents for any substances that may be found in a feed material, is hardly compatible with the good trading practices objective invoked by the EU legislator. Therefore, the EU FCTF proposed principles aimed at focusing on residues of processing aids present at levels equal to or greater than 0.1 % as a matter of priority, bearing

SAARC OILS & FATS Today, jUly 2012

From L to R: Amaud Bouxin, Emilie Leibovitch and Christophe Derrien

in mind that substances prohibited for use in feed in the EU cannot be used at all. Based on these principles and a few more, the EU FCTF submitted to the EU Commission on 24 May 2012 a set of maximum contents which will hopefully be endorsed by the EU legislator by early July 2012 and published in late summer 2012 as an EU Regulation amending the Catalogue of Feed Materials.

The EU FCTF warned the EU legislators that its proposal is not finalised as not all producers of feed materials, especially those based outside the EU, submitted their input. It therefore invited the EU member states authorities to adopt a pragmatic approach when carrying out controls, in order to avoid trade disruption, especially since Annex 1(1) was not adopted for safety reasons. Once the updated Catalogue of Feed Materials is published, the EU FCTF intends to pursue actions to complete the set of maximum contents for chemical impurities in feed materials, in particular as regards imported products, based on the experience gained. The EU FCTF gathers 39 European organisations of feed business operators and was at the origin of the major upgrade of the EU Catalogue of feed materials that took place in 2011 (Regulation (EU) No 575/2011).

july 2012, SAARC OILS & FATS TODAY

Research

Synbiotics

Nature’s power food for health Amarjeet Kaur

— Swati Kapoor, S.S.Thind, Poonam Sachdev and Amarjeet Kaur

ynbiotic foods are a mixture of probiotics and prebiotics that beneficially affect the host by improving the survival and implantation of live microbial dietary supplement in gastrointestinal tract .As probiotics are mainly active in small intestine and prebiotics are only effective in the large intestine, the combination of the two may give a synergistic effect. Appropriate combinations of pre- and probiotics are synbiotics.The most important aspect of symbiotic is that it has the ability to heal and regulate the intestinal flora. Various symbiotic characteristics include antimicrobial, anticarcinogenic, anti-allergic and anti-diarrhoeal activities. They also reduce cholesterol levels and enhance immunity. It is recommended to take 1-10 billion active cells for beneficial effects of synbiotics. Thus, the major challenge for the food manufacturer is to maintain the viability of active cells in processed foods . The growing awareness of the relationship between diet and health has led to an increasing demand for food products that support health beyond providing basic nutrition. Indian Vedic literature recognized the role of diet in health and nutrition. A number of new products having great impact on human health have been introduced in the world food market with the rapid technological advancement in the field of food science. So many new terms have been appeared like Functional foods, Nutraceuticals, pharma foods, bio-foods, dietetic foods, probiotic foods, prebiotic foods power foods, energy foods, sportsman food or in general health foods. The latest and the most revolutionary power food in the today’s world is “SYNBIOTIC FOOD”. This health food comes between health and medicine that help in prevention of illness. Synbiotic foods with a particular health effect has become a matter of great attention to researchers, medical practitioners, food companies, and marketing agencies because their demand in today’s world is growing very fast day by day. Fermentative changes during the manufacturing process, certain therapeutic and nutritional benefits are imparted to the product, which promotes human health. In this connection certain prebiotics, probiotics and synbiotics products have been developed. The benefits of prebiotics prebiotics have come into light in recent years while the recognition of probiotics effects were observed in 19th century when Louis Pasteur (1822-1895) postulated the importance of 30

SAARC OILS & FATS Today, jUly 2012

Fig: Some of the probiotic, prebiotic and symbiotic foods available in Market

microorganisms in human life, this was further reinforced by work done by 1908 Nobel prize winner Elie Metchnicoff (Bibel 1988) who suggested that the long and healthy life of Bulgarian peasants resulted from their consumption of fermented milk products. These have revealed great potential in reducing several gastrointestinal disorders and diarrhea problems, pre- and postoperative infections, colorectal and certain other cancer and have also shown potential in treatment of even AIDS. Probiotics Probiotics are mainly active in the small intestine, and prebiotics are only effective in the large intestine, the combination of the two give a synergistic effect. Appropriate combinations of pre- and probiotics are synbiotics. During manufacture and storage, probiotic survival can be enhanced through the addition of a prebiotic. Evidence from simulated conditions of the gastrointestinal problems and from animal models is accumulating

Research to suggest that, following ingestion, synbiotics stimulate the growth of beneficial bacteria (i.e-bifidobacteria and lactobacilli) while improving the activity of probiotic strains. Recent studies indicate that ingestion of synbiotics modulates the gut microbiota, promoting a healthier composition. Thus synbiotics can be more efficient than either probiotics or prebiotics alone. As stated in the definitions, a synbiotic is a supplement that contains both a prebiotic and a probiotic that work together to improve the “friendly flora” of the human intestine. A synbiotic product should be considered a “functional food” rather than some obscure chemistry formulation. Fermented milks (yogurt and kefir) are considered to be true synbiotic products, that is, functional foods, since they supply the live bacteria and the food they need to survive. However, evidently not all such products promote symbiosis. The best synbiotic combinations currently available include bifidobacteria and fructo-oligosaccharides (FOS), Lactobacillus GG and inulins, and bifidobacteria and lactobacilli with FOS or inulins. The main reason for using a synbiotic is that a true probiotic, without its prebiotic food, does not survive well in the digestive system. To enhance viability, not only on the shelf but also in the colon, the product must allow for much greater attachment and growth rate of the healthy bacteria in order to minimize the growth of harmful bacteria. Without the necessary food source for the probiotic, it will have a greater intolerance for oxygen, low pH, and temperature. In addition, the probiotic will have to compete against other bacteria that will take over if its specific food source is not available. Therefore, a “synbiotic” product (probiotic + prebiotic = synbiotic) makes for a better choice. Experiments with rats have shown that synbiotics protect the organism from carcinogens significantly better than either probiotics or prebiotics separately (Gallaher and Khil 1999). Synbiotics stimulated the fecal bacterial counts of lactobacilli and bifidobacteria in human subjects, but little effect was seen when only probiotic (Bifidobacterium lactis HN019) or the prebiotic (galactooligosaccharide) was given. Such observation may allow one to assume a more effective stimulation of mineral absorption by synbiotics as compared to pro-or prebiotics alone (Ahrens et al 2007). Prebiotics Gibson et al (1995) described prebiotic as non-digestible food ingredients that beneficially affect the host by selectively stimulating the growth of one or a limited number of bacterial species already established in the colon and thus leads to health improvement. Prebiotics are the food and fuel for the beneficial bacteria. In other words, the soluble fibres, that stimulate the growth and activity of a limited number of bacterial species in the gut, are known as prebiotics. Prebiotics are sources of energy for the microflora. Types of prebiotics Oligosaccharides are sugars consisting of between 2 and 20 saccharide units, i.e-short chain polysaccharides. Commonly available prebiotics arev Fructo-oligosaccharides

Caption: Kraft Foods has launched probiotic beverages, cereals, cheese and cottage cheese under the LiveActive brand

v v v v v v

Inulin Galacto-oligosaccharides Lactulose Lactosucrose Soybean-oligosaccharides Malto-oligosaccharides

Properties to be fulfilled before classification as prebiotics 1. Resistance to gastric acidity, hydrolysis by mammalian enzymes and gastrointestinal absorption. 2. Fermentation by intestinal microflora. 3. Selective stimulation of growth and activity of a limited number of beneficial intestinal bacteria (Marcel Roberfroi 2007). Probiotics Probiotics are friendly or good bacteria described as living drug which are good for life. Probiotics are defined as living micro-organisms in foodstuffs which when taken at certain levels in nutrition, provide equilibration of the intestinal flora, and hence have a positive effect on the health of consumer (Tomasik and Tomasik 2003). The Food and Agricultural Organization / World Health Organization (FAO/WHO 2002) defined probiotics as live microorganisms which when administered in adequate amounts confer a health benefit to the host. Probiotics can play a beneficial role in several medical conditions, including diarrhoea, cancer, inadequate lactose digestion, infant allergies, failure to thrive and others, all of which are suggested by certain research studies to improve with the use of probiotics. The probiotic bacteria which are most common include genera Lactobacillus and Bifidobacteium. Many probiotics strains have been identified, studied and commercialized. Probiotics are available in foods and dietary supplements july 2012, SAARC OILS & FATS TODAY

Research Commercially used probiotic speciesLactobacillus species Bifidobacterium species Streptococcus species and S.Thermophilus

Caption: Cargill Health & Food Technologies makes inulin that is used in baked goods, beverages, chocolates, dairy, nutrition bars, fillings and spreads, meats and meat products

(for example, capsules, tablets, and powders) and in some other forms as well. Examples of foods containing probiotics are yogurt, fermented and unfermented milk, miso, tempeh, and some juices and soy beverages. In probiotic foods and supplements, the bacteria may have been present originally or added during preparation. The first ever probiotic food introduced was addition of acidophilus to the milk, this helped people develop better tolerance towards milk and also helped people who found it difficult to digest milk. Yakult is Indiaâ&#x20AC;&#x2122;s first probiotic company. Although probiotic food products are not much familiar to Indian consumers, the processed food companies, especially in the dairy sector, are now concentrating to develop probiotic products like probiotic icecream, lassi, chhach, dahi and more varieties in milk products. Probiotic products have been launched by the Gujarat Cooperative Milk Marketing Federation under its brand name Amul brand.. Mother Dairy has launched probiotic milk products like dahi and ice-cream and recently rolled out a range of probiotic milk drinks branded Nutrifit, aimed especially at children. Nestle is also a player in probiotic milk products. Criteria for micro-organisms to be included in the probiotic group are(Tomasik and Tomasik 2003) 1. Survival on passing through gastrointestinal tract at low pH and on contact with bile. 2. Adhesion to intestinal epithelial cells. 3. Stabilization of the intestinal microflora. 4. Non-Pathogenecity. 5. Fast multiplication with either temporary or permanent colonization. Bacteria with probiotic features Lactobacilli and Bifidobacteria Streptococcus Lactococcus and Bacillus 32

SAARC OILS & FATS Today, jUly 2012

From where to get themv Fermented Dairy products: Yogurt, Buttermilk (Chaach), Lassie and Kefir (Thin drinkable Yogurt), but not in most commercially available ones as the cultures are not live. v Dietary Supplements- Probiotic drinks, Powders, Capsules etc. are very useful as they are highly concentrated sources of good bacteria as compared to the natural ones. A 65 ml. of a probiotic drink provides bacteria, which equals to nearly 60 tubs (200 ml) of commercial yogurt. v Helpful Foods- To ensure good gut flora, it is important to take plenty of prebiotic food, which supports the growth of probiotic flora. These Foods Include Whole Grains, Oats, Wheat Bran, Barley, Isabgol (Psyllium), Soybeans And Soy Based Products, Flaxseeds, Sunflower Seeds, Fenugreek Seeds (Methre), Garlic, Onions, Leek (like spring onions), Carrots, Citrus fruits. Foods to avoid Excessive intake of refined flours, sugars, processed foods suppress the growth of good bacteria and allow unfriendly ones to grow. Health benefits of probiotics v Probiotics help keep up the balance between harmful and beneficial bacteria in the gut thus maintaining a healthy digestive system. v Helps to remove gas and decomposes waste. v Consumption of probiotics is very useful and beneficial for people who have taken antibiotics for a long time. v Probiotics help in stimulating the immune system thereby reducing infections. v Useful in the treatment of diarrhoea and infections in the GI tract. v Improves digestion of lactose and deals with lactose intolerance. Also improves overall digestion and in particular is good for improving digestion of fats, carbohydrates and proteins. v Helps prevention of colon cancer and prevents growth of substances that cause cancer. v Lowers cholesterol and blood pressure in the human body. v Helps improve mineral and nutrient absorption and reduces inflammation. v Controls growth of harmful bacteria under stressful conditions. v Plays a role in balancing sex hormones thus improving fertility. v Infections such as athleteâ&#x20AC;&#x2122;s foot, candidiasis etc that is caused by yeast is kept at bay. v Controls growth of pathogenic bacteria and virus. v Crushes toxins and produces antibodies and anticarcinogens.

Research Potential implication of synbiotics and their mode of action Antimicrobial qualities may result more so from the probiotic components than the prebiotic. Beneficial bacteria reinforce the intestinal walls by crowding out pathogenic organisms, thereby helping to prevent their attachment to where they can cause disease. Probiotic also stimulate antigen specific and nonspecific immune responses. 1. Anticarcinogenic qualities are not well understood but what is speculated is that the sugars that are fermented by the bacteria form into substances that may inhibit the growth of carcinogenic cells. Prebiotic sugars help to increase calcium and magnesium in the colon which, in turn, assist in controlling the rate of cell turnover and the formation of insoluble bile or fatty acid salts, which can have damaging effects. Probiotic bacteria have the ability to bind to and inactivate some carcinogens. This may directly inhibit the growth of some tumors, as well as any bacteria that may convert matters in to carcinogens. 2. Antiallergenic aspects may be helpful in such cases as food allergies since the probiotic bacteria help to reinforce the barrier function of the intestinal wall, thereby possibly preventing the absorption of some antigens. 3. Antidiarrheal aspects are successful through the crowding of pathogens known to cause diarrhea. Since they also strengthen the intestinal wall, this, too, would help to prevent diarrhea. 4. Osteoporosis prevention may occur as a result of an improvement in mineral absorption and balance. This ability comes as a result of oligosaccharides which bind such minerals as calcium and magnesium in the small intestine, but releasing them in the large intestine where they are better absorbed. Fatty acid also formed from the fermentation process, will then assist with the absorption of these minerals. 5. Reduces serum fats and blood sugars in some individuals. Although not well understood, prebiotics appear to lower triglyceride level, as well as total cholesterol and LDL-cholesterol levels. As for its ability to normalize serum glucose levels, prebiotics may help by delaying gastric emptying and shorten the transit time through the small intestine. In addition a substance released through fermentation appears to make better use of the glucose molecule conversion. 6. Regulates the immune system since probiotic bacteria are known to have the ability to increase the levels of circulating immunoglobulin A (IgA). In, addition they enhance nonspecific immune mechanism, such as increasing phagocyte activity. 7. Treating liver-related brain dysfunction- using synbiotics and fermentable fiber not only have a beneficial effect on the liver but also on a brain dysfunction that affects many who have liver disease. This dysfunction results in changing in behavior, intelligence, consciousness, and neuromuscular function. Dietary carbohydrates make up a large family of miscellaneous compounds with different physiologic effects and diverse nutritional properties that deserve the attention of nutritionists. In

the carbohydrate family, the indigestible oligosaccharides are of particular interest and may, in the next decade, be one of the most fascinating functional food ingredients. Inulin-type fructans are indigestible oligosaccharides for which a wide range of scientific observations are already available and which demonstrate an array of potential health benefits. To justify claims of enhanced function or reduction in the risk of disease, most of the available information must be confirmed in humans in relevant nutrition studies focusing on well-validated endpoints. Such studies will be of much value if they are based on sound mechanistic hypotheses. Changes in the composition of the colonic microbiota, modulation of the metabolism of triacylglycerol, modulation of insulinemia, improved bioavailability of dietary calcium, and negative modulation of colon carcinogenesis are the most promising areas for further research. In addition to having nutritional properties, which may justify their classification as functional food ingredients, inulin-type fructans are low-energy carbohydrates, which have interesting technologic properties in food product development. These properties depend on the molecular structure of the various inulin-type fructans, especially their degree of polymerization, which determines their water solubility, viscosity, water retention capacity, and capacity to form a creamlike texture, a property of inulin used to process it as a fat replacer. As we suggested previously, combining probiotics and prebiotics in what has been called a synbiotic could beneficially affect the host by improving survival and implantation of live microbial dietary supplements in the gastrointestinal flora, by selectively stimulating the growth or activating the catabolism of one or a limited number of health-promoting bacteria in the intestinal tract, and by improving the gastrointestinal tractâ&#x20AC;&#x2122;s microbial balance, but the creation of a synbiotic has not been investigated. Combining probiotics with prebiotics could improve the survival of the bacteria crossing the upper part of the gastrointestinal tract, thus enhancing their effects in the large bowel. Moreover, probiotic and prebiotic effects might be additive or even synergistic. This has been the case when combining the anticarcinogenic effects of inulin and bifidobacteria in experimental animals. Awareness of the world about the benefits of synbiotic on human health is rising day by day. Todayâ&#x20AC;&#x2122;s consumer has more nutrition information through TV, magazine and internet. People are becoming more health conscious because of the increased awareness regarding the link between diet and health. The most important aspect of synbiotic is that it has the ability heal and regulate the intestinal flora, particularly after the destruction of microorganism following antibiotic, chemotherapy or radiation therapy. Without the beneficial organisms in the digestive system, proper digestion, absorption and manufacture of nutrients can not take place. After going through a number of literature, It is recommended to take synbiotic products containing 1-10 billions active cells several times in a week if not daily. In case of antibiotic therapy, it is suggested to take this product several times a day preferably at least 30 mins before meal. One challenge for the manufacturer is to maintain the viability of prebiotics and synbiotics in processed n food. (The authors are from the Department of Food Science & Technology, Punjab Agriculture University, Ludhiana)

july 2012, SAARC OILS & FATS TODAY

Dairy

Indian desserts

Major brands use vegetable fats instead of dairy fats?

rozen desserts, which look and taste like ice cream but are made out of vegetable fat, have silently grabbed 40 per cent share in India’s Rs 1,800 crore organised ice-cream market. And most of the consumers have no clue that they are eating vegetable fats and not dairy fats. Led by Hindustan Unilever’s Kwality Walls, Vadilal, Lazza Ice Creams and Cream Bell, frozen desserts--served in identical cups, cones and sticks as ice cream, and are made of vegetable fat and not dairy fat--have 40 per cent share in the Indian ice cream market. The segment has found a strong foothold in the country in less than two decades since Kwality Walls introduced them.

But food authority officials and original icecream makers such as Amul and Mother Dairy feel these companies are misleading consumers by masquerading frozen dessert as ice cream. While real ice cream is made with milk fat, frozen dessert is made with vegetable fat, which is almost 80 per cent cheaper. “The clandestine manner in which the labelling (of frozen desserts) is done and the way they are marketed in television commercials are a matter of concern,” said H G Koshiya, commissioner of Gujarat Food and Drug Control Administration. He added the state authority plans to bring the issue to the notice of the Central Advisory Committee of the Food Safety and Standards Authority of India.

SAARC OILS & FATS Today, jUly 2012

“Let consumers know what frozen dessert is all about and then if they consume it, it is a matter of choice”. Ice-cream or Ice-crime? Ice-cream makers such as Amul and Mother Dairy that use only dairy fat said frozen dessert makers have been misleading consumers by passing them on as ice cream. “Consumers have been eating frozen desserts presuming them to be ice creams,” said Munish Soni, head (dairy product division) at Mother Dairy, a wholly owned subsidiary of the National Dairy Development Board. Amul, the category leader in ice creams with 40 per cent market share, said companies are misleading consumers by not mentioning upfront they are frozen desserts and pricing them as much as ice cream despite lower costs.

Dairy “Consumers are fooled into buying frozen desserts. It is a look-alike category. Most brands mention frozen desserts in small letters and push the category instead of advertising it as dessert,” said R S Sodhi, managing director of Gujarat Co-operative Milk Marketing Federation, which owns Amul brand. He added dairy fat costs Rs 300/kg, while vegetable fat is Rs 50-60 a kg. “Frozen desserts play with huge margins and cheat consumers.” Consumer rights activist Pritee Shah said frozen dessert is masquerading itself as ice cream. “They must mention frozen dessert upfront in their advertisements and the products in lieu of which it amounts to cheating the consumer,” said Shah, who is the chief general manager at Ahmedabad-based consumer group Consumer Education and Research Centre. No Health threat Nutritionists say there is nothing terribly wrong about vegetable fat. After all, edible oil is regularly used in Indian cooking and snacks. But it could be more harmful than milk fat. Mumbai-based consultant nutritionist Niti Desai said although vegetable fat contained in frozen desserts is generally unsaturated and hence, healthier, the catch is that the plant fat used will be generally hydrogenated or trans fat. “Trans fats can raise cholesterol levels as much or more than saturated fat, and increases the risk of developing heart disease and stroke. It’s also associated with a higher risk of

Led by Hindustan Unilever’s Kwality Walls, Vadilal, Lazza Ice Creams and Cream Bell, frozen desserts—served in identical cups, cones and sticks as ice cream, and are made of vegetable fat and not dairy fat—have 40 per cent share in the Indian ice cream market. The segment has found a strong foothold in the country in less than two decades since Kwality Walls introduced them. developing diabetes”. “In the West, it is mandatory to mention trans fats used in packaged foods,” Desai added. While most manufacturers in India use palm oil, which is the cheapest, to desserts, some may use coconut oil.

Happy and Growing Frozen dessert makers are, meanwhile, upbeat about the prospects of this category. Hindustan Unilever’s Kwality Walls, which makes only frozen desserts and does not use milk fat, said the category is growing on the

strength of a series of exciting products. Nitin Arora, CEO of Cream Bell, an ice cream and frozen dessert brand of RJ Corp’s Devyani Food Industries, said that frozen desserts account for 50 per cent of its sales. The company entered the category in 2006. “There is no dearth of takers for frozen desserts in the Indian market now. For us, both categories are growing at 25-30 per cent. Indian mindsets have changed towards frozen desserts and the consumer is comfortable in consuming them,” he said. South Indian ice cream player Lazza Ice Creams, which introduced frozen desserts a decade ago, has seen the vegetable stuff overtaking ice cream in the last five years when it has been growing 50 per cent year-on-year. Frozen desserts accounted for 55 per cent of Lazza’s turnover of Rs 150 n crore in 2010-11.

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july 2012, SAARC OILS & FATS TODAY

News

DKMUL expresses concern Skimmed milk exports to about milk disparity on affect milk prices after World Milk Day July

hile observing World Milk Day on June 1 in the district as a celebration of the ubiquitous liquid, the Dakshina Kannada District Co-operative Milk Producers’ Societies’ Union Limited (DKMUL) expressed concern at the disparity in the consumption and production of milk here. “While the State boasts of surplus milk production, Dakshina Kannada does not and lags behind the rest of the State. Even though we have increased the production to nearly two lakh litres per day, around one lakh litres have to be brought from unions in other districts to meet the demand here,” Raviraj Hegde, president, DKMUL, told a gathering at the Union’s office in Kulshekar. He stressed on the need to increase milk production, which would ultimately benefit the farmers themselves. Another area of concern, he said, was the diminishing consumer interest in milk and its products. “People have started replacing buttermilk with soft drinks. Not many people were aware of the health benefits of the different types of milk available,” said Hegde. Elaborating on the decreasing milk consumption, Ravikumar Kakade, Executive Director, DKMUL, said in terms of per person consumption of milk, south India pales in comparison to north India. “Here, the consumption was 240 ml per person, while in States of north India, it was more than 400 ml per person,” he said. He added that better marketing and packaging of milk and its products would reduce this gap.

(L) Ravikumar Kakade, Executive Director, DKMUL, speaking at a function organised to mark World Milk Day in Mangalore

A step towards achieving this was the development of “Nandini Mango lassi”. Made from mango pulp and milk, officials of the Union said the product would be commercially available soon. The day began with the distribution of milk to orphanages Bhagini Samaj, Jeppu, Little Sisters of the Poor, Nanthoor, and Mangala Jyothi Integrated School, Vamanjoor. On the occasion, a booklet listing numerous Nandini products, as well as their nutritional benefits was released. Dealers and distributors of milk products were awarded for high sales while those who had won gold and silver coins in the lucky draw organised for consumers of Nandini sweets were felicitated. President of the Dakshina Kannada Milk Producers’ Union Raviraj Hegde said on Friday that milk was a better than any other drinks. Inaugurating the World Milk Day function organised by the union at the Manipal PreUniversity College, Hegde said the union produced Nandini brand of milk and other milk products, including flavoured milk and sweets. Principal of MPM College Dayananda Shetty, principal of Manipal Pre-University College Vemanarayana, viceprincipal Vedavati and officer in the Department of Education Ashok Kamath were present.

SAARC OILS & FATS Today, jUly 2012

ilk prices are expected to remain stable for the next couple of months despite a lower output as summer reduces calving. But the respite for consumers is temporary because prices may rise August onwards after exports of casein and skimmed milk powder (SMP) pick up. Daily milk production fell to 110 lakh litre this month from the peak of 140 lakh litre in January at Amul, the country’s largest dairy group. “Milk prices will remain stable owing to the availability of SMP,” said Gujarat Cooperative Milk Marketing Federation MD RS Sodhi. The federation markets its dairy products under the Amul brand. This season, the cooperative sector has seen an increase in milk procurement by 15-20% compared to the previous year. The higher availability is owing to an increase in procurement prices by over 50% in the past three years. Milk prices were increased by up to Rs 2 per litre by Amul in April. Mother Dairy, which is procuring 36 lakh litre milk daily compared to 58 lakh litre in January, is not expected to increase prices. “We are currently selling full-cream milk at Rs 37 a litre, which is Rs 3 cheaper than what our competitors sell. In other milk categories too, there is a Rs 1 difference,” said a Mother Dairy official. Analysts expect an upward movement in milk prices in the coming months when casein and SMP exports begin. India, the world’s biggest milk producer, allowed the import of skimmed milk

powder and casein in the past two months after the removal of a ban imposed in February 2011. “The monsoon and exports will play a decisive role in the movement of prices,” said Sterling Agro MD Kuldeep Saluja. The company is a milk powder manufacturer and exporter. Casein exports have begun and contracts signed while SMP shipments are yet to begin because domestic prices are higher than global prices. Saluja said export orders have been signed at $7,500 per tonne. Major casein buyers include US companies such as Erie Foods International, Socius Ingredients, American Casein and Schreiber Foods. An extended flush season and better procurement prices this year saw an increase in milk production. According to industry estimates, cooperatives and private manufacturers have an inventory of close to 90,000 tonne to 1.5 lakh tonne SMP. With the annual milk production pegged at 125 million tonne, which roughly matches demand, prices have become prone to fluctuations. Liquid milk prices are expected to remain stable in Karnataka, the country’s second biggest milk producer. Daily procurement by the Karnataka Milk Federation has gone up to 52 lakh tonne. “We increased liquid milk prices by Rs 3 a litre across all categories in January and don’t foresee any hike this year,” said Karnataka Milk Federation MD MN Venkataramu.

july 2012, SAARC OILS & FATS TODAY

News

World’s first GM dairy calf Researchers find earliest proof of dairying in to give lactose-free milk Sahara

hinese scientists claimed to have bred genetically modified cows that can produce much healthier milk than the ordinary livestock for human consumption. In two separate breakthroughs, researchers at the Inner Mongolia University revealed that they have successfully created a calf whose milk could be drunk by people suffering from lactose intolerance and a second animal whose milk contains high levels of “healthy” fat found in fish. The genetically modified cows are part of an effort by scientists to make dairy products healthier, but critics have reacted angrily to it and questioned the safety of milk from genetically modified animals. In one research, a group of scientists injected genes, which causes lactose to break down into other types, into cells from cow embryos. They created 14 embryos and implanted them into the wombs of surrogate cows. Five calves were born in April this year and three were found to carry the genes needed to create low-lactose milk, although two of them died within 24 hours of birth. One of the calves, named Lucks, a modified Holstein dairy cow, was “healthy and strong”. 38

They will conduct tests on her milk once she starts lactating to assess exactly how much lactose the milk contains. Dr Zhou Huanmin, Director of the Key State Laboratory for Bio-manufacturing at the University, said they hope to create herds of low-lactose cows that would eventually produce new types of dairy products to be sold in shops in between five to ten years time. “Ordinary milk contains lactose, while milk produced by our modified cow will have relatively low-content of lactose, or even have no lactose. We hope to commercialise it in the future,” Dr Zhou said. In a separate research published in journal of Transgenic Research, another group at the Inter Mongolia University has created a genetically modified cow that has high levels of omega-3 fatty acids, which protect against heart disease and improve brain function, in its milk. Using cloning technology, the team introduced a gene from roundworm into cow embryos. The genetically modified cow was then allowed to mature and give birth to its own offspring before tests were conducted on its milk.

SAARC OILS & FATS Today, jUly 2012

esearchers from the University of Bristol and other institutions have found the “first unequivocal” chemical evidence of dairying practices by Saharan people about 5,000 years ago — at a time when the region was in a humid phase and had plenty of plant cover. Researching the earliest evidence of dairying has so far been confined to Europe, Near East and Eurasia. This is the first time an attempt is made to study African samples. The results are published today (June 21) in Nature. Till date evidence of domestication of cattle, sheep and goats came from faunal samples. But faunal remains have been “highly fragmentary and poorly preserved.” Reconstructing evidence of herding has therefore been difficult. Even indirect evidence of dairying is “missing.” Of course, rock paintings and engravings have provided some compelling indirect evidence. The researchers therefore turned to molecular and isotope analysis of absorbed food residues found on potsherds to know the details. The rationale is simple: analysing food residues is a sure way of understanding diet and subsistence practices of humans a few thousand years ago. Making the study possible has been the exemplary preservation of absorbed organic residues, particularly lipids, on potsherds. This is unlike in the case of European sites where only 40 per cent of potsherds provided any evidence of lipids, and that to at very low concentrations. “This remarkable preservation [in the case of African samples] is likely to be related to the

extremely arid conditions prevailing in the region” in the last hundreds of years. The researchers used carbon 13 isotopic ratios to study the major alkanoic acids of milk fat. The lipids belonged to three categories — “high abundance” of C16:0 and C18:0 (lipid numbers) fatty acids derived from degraded animals fats. There were carbon isotopes (C13 to C18) which are demonstrative of “bacterial origin” and diagnostic of “ruminant animal fats.” In the second category, the carbon isotopes found were diagnostic of plant oils and a certain kind of wax of vascular plants. The third type of residue indicates the “drying reaction of plant oils,” and reflects either “processing of both plant and animal products in the same vessel or the multiuse of the vessels.” Of the three types, only those indicative of degraded animal fats were taken up for detailed analysis. Compared with present day animal fats, about 50 per cent of lipid samples recovered from the potsherds fall within or on the edge of isotopic range of dairy fats. About 33 per cent fall within the isotope range for ruminant adipose fats. “The unambiguous conclusion is that the appearance of dairy fats correlates with the abundant presence of cattle bones in the cave deposits, suggesting a full pastoral economy,” they write. They also found unequivocal evidence for “extensive processing of dairying products” in pottery in the Libyan Sahara between 5,200-3,800 years ago. This confirms that “milk played an important part in the diet of these prehistoric pastoral people.”

News

Chinese dairy giant Yili Amul not to increase prices recalls contaminated baby until December milk

hinese dairy maker Yili said it had started recalling batches of baby formula after authorities found they contained high levels of mercury, in the latest food safety scare to hit the country. The company began the recall on Wednesday after a national food safety monitoring system detected “abnormal” levels of mercury in the products, state-owned Inner Mongolia Yili Industrial Group said in a statement. The recall covers baby formula produced from November 2011 to May 2012. The firm did not state how much baby formula was affected or how mercury which is extremely toxic and can harm the brain, heart, kidneys, lungs, and immune system at high exposure - made its way into the products. China’s quality watchdog said Thursday it had carried out an “urgent monitoring” of 715 samples of baby formula by various producers following the Yili case, but so far no other products were found to be unsafe. However, authorities were unable to collect samples from 20 firms because they had suspended production of baby formula, the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) said in a statement. It was unclear when they stopped production and whether this was linked to the mercury scare. Currently, 119 companies in China manufacture baby formula, state media cited Ma Chunliang, an official with AQSIQ, as saying last month.

China’s dairy industry is prone to safety scares. In 2008, milk was at the centre of one of China’s biggest food safety scandals when the industrial chemical melamine was found to have been illegally added to dairy products to give the appearance of higher protein content. Since then, many Chinese people remain suspicious of domestically produced milk after six children died and 300,000 others fell ill in the scandal, which also involved Yili products. Critics say the hygiene standards that China’s dairy farms must adhere to are among the world’s lowest, with the levels of bacteria permissible in milk four times as high as in most Western countries. There have been accusations that the government, keen to ensure China’s growing demand for milk is catered to, is giving in to an increasingly powerful dairy industry dominated by Yili and another dairy giantMengniu. Yili shares were down by the maximum 10 per cent daily limit at 21.85 yuan ($3.4) in Shanghai on midday Thursday, bucking the rising trend in the broader market.

he Gujarat Cooperative Milk Marketing Federation (GCMMF), which sells milk and dairy products under the Amul brand, is unlikely to further increase milk prices this year on account of surplus availability, a top company official said. “Milk prices this year will be very stable as the availability of milk is good,” GCMMF Managing Director R S Sodhi said. Amul, the country’s leading milk supplier, had in April this year raised milk prices by up to Rs 2 per litre in Mumbai, Gujarat and Delhi. In the last fiscal, GCMMF had announced a hike of around 14-15 per cent in milk prices. “In the last 2 years there have been price increases but this

year due to surplus availability there is very little chance of a hike,” Sodhi added. As per the National Dairy Development Board (NDDB), India is the largest milk producing nation in the world with an output of 121 million tonnes in 2010-11 fiscal and a global production share of about 17 per cent. According to government data, the per capita milk availability rose to 281 gm per day in 2010-11 against 278 gram per day in 2009-10 on account of growing output. Amid surplus availability of milk, the government also lifted the ban on export of skimmed milk powder last month to improve finances of dairy firms and help milk producers.

Amul deploys a mobile van to check adulteration

n a bid to keep milk adulteration in check, country’s leading milk supplier Amul has deployed a mobile van to conduct on-the-spot checks of the milk samples in 1200 village cooperative societies under its jurisdiction. “Amul has taken a lead in Gujarat and other parts of the country in getting this mobile van, which will help in keeping a check on milk adulteration,” Amul chairman Ramsinh Parmar said. The 1200 societies attached to Amul are spread over two districts of Anand and Kheda. “This will ensure speedy testing of suspicious samples,” he said. It is in the interest of Amul to own or hire mobile vans to keep a check on adulteration. There are about 17 milk dairies in various parts of the state,

including Baroda, Banas, Mehsana, Panchmahals and Surat, etc. “Normally, the milk samples are taken to the Amul lab located at Anand. This hampers the pace of investigation. However, the mobile vans will ensure that milk is tested on the spot,” he added. The menace of milk adulteration, though financially not as big as adulteration of other products such as sand or oil, is equally hazardous since milk is a product consumed both by the rich and the poor, he added. This van is fully equipped with all the devices and instruments to check the milk samples in the presence of members of the village milk cooperative society from where checking is carried out, Parmar said.

july 2012, SAARC OILS & FATS TODAY

SAARC OILS & FATS Today, jUly 2012

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