Beverages & Food Processing Times Jan'13 (II)

India’s Ist Fortnightly Newspaper For Beverages, Food & Allied Industries

Vol.5, Issue 7, Jan (II) 2013, Rs. 20/-

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Improving Food Safety Measures-need of the hour, says MOS Tariq Anwar

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inister of State for Agriculture and Food Processing Industries, Tariq Anwar described the food processing sector as the sunrise sector of the Indian economy and said that farmers who are the starting point of value chain should get benefit from various levels of food processing. He was addressing the first international conference on innovations in food processing, value chain management and food safety at NIFTEM Campus, Kundli, Haryana.

Tariq Anwar added that this sector

had the potential for employment and income generation. Talking about National Institute of Food Technology Entrepreneurship and Management (NIFTEM) he said that it was conceived as the Centre of excellence in the field of food technology and was established to cater to the needs of food processing sector. It provides core services between the demand and availability chain and works for upgradation of SME cluster. At present NIFTEM has 115 students in B. Tech and 88 in M. Tech.

While talking on food safety Anwar said that it was the need of the hour to take measures to improve food safety and the focus should be on emerging food pathogens, risk analysis and assessment and techniques involved in detection. It is of utmost importance to provide hygienic food to the consumers in India as well abroad The Minister expressed the hope that this Conference will bring together all the stake holders of the food processing industry. A souvenir of IFpvs 2013 was also launched by the Minister of State on this occasion.

A Memorandum of Understanding was signed by NIFTEM with University of Nebraska-Lincoln during the event.

Other dignitaries present on the occasion were Rakesh KackerSecretary, MoFPI and Chancellor, NIFTEM; Ajit Kumar, Vice Chancellor, NIFTEM and Dr. Harvey Pearlman, Chancellor, University of Nebraska Lincoln, USA. The Conference was also attended by scientists, technocrats and entrepreneurs, providing impetus to the food processing industry of the country.

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Beverages & Food Processing Times-Jan-II-2013

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Centre plans maize research centre in Katihar: Tariq Anwar

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he Centre, in its Five-year Plan, has proposed to set up a national maize research institute in Katihar. The Union agriculture ministry has already intimated Bihar government about the requirement of 100 acres of land for the purpose. Union minister of state for agriculture and food processing industry Tariq Anwar said it would be a unique research centre. It would not only benefit Bihar but the entire country. "We are yet to get a reply from the state government but, hopefully, there will be no problem in getting land in Katihar," Anwar said.

He also reiterated his ministry's commitment to help Bihar in achieving its goal under the agriculture road map.

He said the Centre has included seven states in its project for the second green revolution. The states included in this Rs1,000 project are Bihar, Jharkhand, West Bengal, Assam, Orissa,Chhattisgarh and parts of UP. The centre has concentrated on these states which could not take benefit of the first green revolution.

Anwar, who came here for an official meeting, however, could not talk to the state government officials since the agriculture minister Narendra Singh and the department's officials were not available due to some communication gap. Anwar said he wanted to discuss things with the state government.

Replying to a query on violation of ceasefire on the LOC by the Pakistani troops, Anwar said the government was handling the situation very cautiously.

In Pakistan, he said, there were some sections who never wanted cordial relations with India.

About the political instability in Jharkhand, the NCP leader said it was unfortunate for the state that in just 12 years of its existence, there were seven chief ministers. The very concept of tribal region development by creating another state has failed since the state has badly suffered on development and growth fronts, he added.

Anwar also did not agree with the suggestion that the number of assembly seats should be increased in Jharkhand.

He said several bigger states, including UP, suffered political instability.

On the strong possibility of Gujarat CM Narendra Modi being projected as poster boy of the BJP in 2014 general election, Anwar said it is time for Bihar CM Nitish Kumar to severe his relations with the NDA. "The BJP has almost decided. Now, it is up to Nitish to clear his stand," he said.

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Beverages & Food Processing Times-Jan-II-2013

Pulses catch corporate purses Prices of domestic dry

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virgin market so far, branded pulses are quickly catching the fancy of corporate bigwigs.

It is evident from the increasing

number of diversified companies getting into the retailing of these.

The latest entrant, Adani Wilmar, a subsidiary of the Adani Enterprises conglomerate, has set its eyes on a variety of branded pulses including dals. The company has already lined up investments for processing mills. "We see a big future in branding of all commodities. We anticipate a similar conversion from purchase of loose un-branded pulses to the branded form. We have started with toll mill operations and have plans to invest more than Rs 100 crore in our own milling units in the near future," said a spokesperson of Adani Wilmar.

Currently, India's pulses consumption is estimated at 17.5 million tonnes yearly, while domestic production has stagnated at 14-15 mt. But only one per cent

is sold under branded consumer packs; the bulk, including urad, tur, moong andchana are sold in a loose format.

Moong, masoor, arhar, urad, chana and rajma comprise 80 per cent of the pulses market. Adani Wilmar wants all these (whole and split variants) in its portfolio, eventually.

Tata Chemicals had launched branded pulses in December 2010 under an 'i-Shakti Dals' brand name.

The company is taking a step forward, to take on the competition.

"Post an overwhelming response (to Tata I-Shakti Unpolished Dals) from customers, we are exploring direct-to-home delivery options or

'Dal-on-Call' for customers. We are starting this in Mumbai. We are expecting healthy growth in our branded pulses sales over the next two to three years," said Ashvini Hiran, chief operations officer, consumer products.

Considering the small size of the branded pulses market, regional players have command over national ones. However, companies with a larger retail network and strong supply chain are making efforts for a national presence.

While Mukesh Ambani's Reliance Retail, and the Future Group's Food Bazaar do in-house branding of pulses and sell through own retail chains, Tata Chemicals, Adani Wilmar and Lakshmi Overseas Industries sell their brands through the modern format of organised retailing.

The recent approval to foreign direct investment (FDI) in multibrand retailing could boost the segment. "We think it would bring in a positive change in retailing of all commodities, specially pulses.

Customers would have more options to choose from and the overall category would grow, with more companies/brands coming in," said the Adani Wilmar official.

Experts in the sector believe the branding of pulses would bring value addition in the commodity. "If companies are entering branded pulses, we can expect value addition and innovation in the products, as we've seen in spices and beverages like tea, coffee etc," said an industry source in this city.

cocoa beans slide

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rices of dry cocoa beans in domestic market has fallen by Rs. 50 a kg this season affecting growers. Prices of wet beans have dropped by more than Rs. 10 a kg, according to market sources.

Cocoa beans are mainly used by chocolate, food, and cosmetic industry. Cocoa is cultivated as an inter-crop in areca plantations in the coastal and Malnad belt.

Prices of dry beans in domestic market hovered between Rs. 173 and Rs. 180 a kg during the same time last year. Now, it fetched between Rs. 123 and Rs. 130 a kg. In the international market, the prices of dry beans varied between Rs. 150 and Rs. 155 a kg now like last year, according to M. Suresh Bhandary, Managing Director, Central Arecanut and Cocoa Marketing and Processing Cooperative Ltd. (Campco).

Prices of wet beans which hovered between Rs. 42 and Rs. 45 a kg. during the same time last year has fallen to Rs. 28 and Rs. 33 a kg. now, he told. Citing reasons for the drop in prices, Mr. Bhandary said that as dry beans in domestic market cost more last year multinational chocolate manufacturers in the country began procuring dry beans from international market, which costs

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less. It resulted in less demand and drop in prices for domestic dry beans since March, 2012.

In addition, he said that while procuring the beans from international market, the companies entered into a longterm procurement agreement with the specified government bodies of identified countries. The duration of the agreement extended even up to six months.

Using a provision (relating to certificate of origin) under Indian Customs Act, 1962, the companies availed concession for paying customs duty in India. As per the terms of the agreement, the companies would have to import dry beans till the term of the agreement.

Otherwise, they would invite the penalty. Hence even if prices of domestic beans now has fallen to Rs. 130 a kg. which was below the international price of Rs. 150 to Rs. 155 a kg., the companies have been forced to import the beans at higher rate. Mr. Bhandary said that prices for domestic dry beans were likely to jump again by Rs. 20 in a few months when the term of the agreement of the companies would expire. The domestic price was likely to match with the international price.

Beverages & Food Processing Times-Jan-II-2013

Event Report

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INDIAN ICE-CREAM MANU TASTING THE CR

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scream...you scream... we all scream for ice-cream...' Our hearts must have 'sung' this line as a child at the sight of ice-creams.

But as our experience suggests, years fail to take away from us the child-like passion for ice-creams.

One seldom loses the opportunity to savour the taste of one. The tropical climate in India makes it a dream for ice-creams.

However, the heartening piece of information is that this Rs 2,500crore industry in India has seen a growth rate of 15-20% yearly.

Figures from the last five years are indicative of the fact that there is an upward trend in the consumption of ice-creams in India. What is more noticeable is that ice-creams are slowly becoming an all-season product and not merely a summer treat. Factors such as rapid urbanisation and globalisation, rising incomes and changing lifestyles have encouraged the growth of this industry.

Talking about the industry of frozen desserts, the market today is decked up with various ice-cream brands and other new concepts of frozen yogurts, frozen custards, frozen puddings, smoothies and gelato that are admirably nursing the sweet tooth of the people. With the

concept of frozen yogurt increasingly becoming popular, many national and international brands are sprouting up to satisfy the cravings of all fro-yo fans.

Cocoberry, Yogurt berry, Berrylite, Yogoshack, Froyo and many others have already marked their presence in the Indian market serving a tasty sweet treat to health-conscious people with only a few calories and less fat. Unlike the traditional method when carts used to go door to door with high-pitched call of the ice-cream seller, now it has been replaced by big cafes and parlours.

With myriad flavours and a variety of ice-creams, these parlours have become the most suitable low cost business concept.

The ice cream and frozen novelty market, which struggled for positive sales growth in 2009 and lost sales in 2010, turned a corner in 2011 with a 4.1% increase in total U.S. retail sales to reach $10.7 billion, according to a new report from Mintel. Sales are expected to increase another 4.1% in 2012 to become an $11.1 billion industry.

When buying ice cream or other frozen novelties, 94% of people say they base their decision on flavor, while 83% look at price and 72% look for a sale or promotion. When

it comes to brand loyalty, 68% of respondents make their selections based on brand alone. New flavor profiles and ingredients, better-foryou products and new packaging concepts will be instrumental in the ice cream market's success in the next few years.

IICMA (Indian Ice-Cream Manufacturers Association) and its execution Indian Ice-Cream Industry has witnessed unprecedented growth during the last season. The growth rate of the same was 20 per cent last summer, said Rajesh Gandhi, President of IICMA (Indian IceCream Manufacturers Association) and Managing Director, Vadilal Industries.

Mr Gandhi also said that size of Indian Ice-Cream industry is approximately 5000 cr in both organized and unorganized sectors. He also added that most of the so called unorganized icecream companies are now working just like organized sector and witnessing the same rate of growth.

IICMA organized an international Seminar on Ice-Cream industry with the theme, “Global trends in Ice-Cream Industry”. The seminar was held on 19th December, 2012,

at Hotel Westin Raheja Park in the Hi-tech city of Hyderabad. The Congress was inaugurated by the British Deputy High Commissioner Sir Richard Hyde and DevendraSurana President FAPCCI. After the grand success of Last Indian Ice-Cream Congress, New Delhi this March, IICMA (Indian Ice-Cream Manufacturers Association) organized this grand event on the same lines at Hyderabad – and why choose Hyderabad of all places? The answer is a humble one – This city of Nawabs is not only a great consumer of ice-creams but also the gateway to South India.

IICMA had invited eminent speakers from the global ice-cream fraternity to share their experiences with IICMA members.

Members of IICMA definitely benefited immensely by the efforts of the association. This event went through three main sessions along with a group discussion on latest trends in ice-cream industry across the globe.

Sudhir Shah, Secretary of IICMA and Director Scoops said that the event contented a straight away hit as they had speakers and participants from different parts of

the world to understand what was happening there. Speakers from Tetra Pak, Mec3 Italy, DuPont and Blue Star added a great value to the seminar.While the Secretary General of IICMA, Mr. Samrat A. Upadhyay, stressed on taking upon Issues such as high taxation, problems of the supply chain and the government not acknowledging the status of the ice cream segment are some of the issues that need to be addressed and observed Mr Firoz H Naqvi, Chief Editor of Beverages & Food Processing Times as well as the organising member believed that this occasion had been the perfect platform to share latest updates and also newer technologies and innovations entering the ice cream industry.Ice cream manufacturing is growing in the country but it still has lot more potential, he had observed.

THRIVING MARKET Come summer and ice-cream manufacturers gear up for doing a roaring business. If market analysts are to be believed, the 2,500-crore industry has been on an expansion drive, eyeing a 15% growth this year despite increasing prices between 1 and 10 across product categories. The branded ice-cream

Beverages & Food Processing Times-Jan-II-2013

Event Report

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FACTURERS ASSOCIATION EAM OF SUCCESS market with leading players such as Amul, Kwality Walls, Vadilal and Mother Dairy is banking on a variety of regional flavours, distribution network and expansion of retail outlets to strengthen their share in the market dominated by unorganised players. The industry also marks the presence of unbranded market for the frozen dessert which is currently valued at Rs 800 crore for 100 million litres per annum. According to the recent trends, the per capita consumption of ice-creams in India is 300 ml.

In the category of 100 % natural ice-cream, a premium brand of artisan ice-cream makers, Natural Ice Cream, has been engaged in satisfying its customers since 1984.

“Currently, the industry of icecream and frozen desserts occupies a fair market size in India, which has increased by about 40 % in the recent past. The influx of foreign brands and new additions to the categories of frozen desserts are catering not only to the customers but are also creating great business opportunities for investors and franchisees.

ROBUST PROSPECTS G. Chandrashekhar from The Hindu Business Line draws attention tothe fact that India is a robust economy, one of world's fastest growing significant markets; it is bestowed with Healthy GDP growth, Forex reserves and foreign trade. Above all now it has a 2-way FDI flows thus has an open Integration with global market. According to this laureate most urban consumer in today's time are turning less and less price-sensitive and have a vulnerable shopping access in everyday life. So with rising incomes and urbanization the purchasing ability of an Indian has increased. And Ice cream being an Impulse Purchase product is now being apart of instant indulgence thus leading to enhanced ice cream sale India.

The massive consumer market in India and the anticipated strong economic growth over the next few years augur well for the ice-cream industry. It is becoming more apparent that the future of the Indian ice-cream industry will be shaped by the organised retail sectors. With FDI in the retail sector implemented, a boost to the Indian ice-cream market is in sync. The next few decades should witness the entry of global ice-cream majors into the Indian market, wanting to tap into its potential, and possibly some new domestic entrants as well. Moreover, improvements in electricity supply and better cold storage logistics will do a world of good to the prospects of this industry.

About the business prospects in this industry,Tetra pack's track of thinking favour a model that offers avenues for making profits at a low investment, that is low investment and high returns. Also according to

this company the thing that motivates consumers when buying ice cream is the price and thespecial offers(over 50%choose on this basis). Brand remains an important

difficulty faced by the ice cream industry in Andhra Pradesh, which comprises around 3,700 organised and unorganized units.This industry is facing a meltdown thanks to the

subjected to 15% VAT and 2% excise duty. The industry can only flourish if the government removes excise duty and states reduce VAT levels." The national ice cream

factor as well the flavour.

Fitness and health consciousness is another issue that the ice cream Industry is facing. As the consumer is becoming more aware and health conscious the ice cream industry without losing time has indulged into attracting its customer by making diet and health ice creams.

To take on the consumer the ice cream industry is facing a powerful competition. Promotional qualities will definitely reach of the Weight Watchers brand, allied with highly indulgent, on-trend flavours that appeal to the core target market of health-conscious women.

acute power shortage. Close to 250300 small to medium sized units have already shut shop and many more are on the verge of closure, said Indian Ice Cream Manufacturers Association (IICMA) managing committee member Ajay Reddy, who also helms the city-based Dairy Ice Creams and Frozen Foods as managing director.

Ironically though the ice cream manufacturing units are exempt from power cuts and enjoy 24/7 power, what is taking its toll on the industry is the fact that the ice cream demand has melted by 3035% due to distributors and dealers, especially in smaller towns, not picking up stocks due to power shortages at their end.

Unlike other sectors the ice cream industry is completely dependent on power as it requires power from the point of production to the point of consumption. Thus with longer power cuts the overall industry is bound to suffer.

Mr Viren Shah, managing director of Hyderabad-based Scoops Ice Cream said power shortage had emerged as the biggest stumbling block for the Rs 120 crore ice cream industries in the state.

"The ice cream retailers in smaller towns are hesitant to buy bulk stocks and are keeping only a day's stock of ice cream with them fearing melting of their stock due to long hours of power cuts."

While the ice cream industry in Hyderabad has not been affected too badly due to the power situation, the business in Visakhapatnam and the district headquarters of the state has barely managed to stay afloat as the power cut duration ranges from two to four hours which was manageable.

According to IICMA president and Vadilal Industries managing director Rajesh Gandhi, as if the grim power situation in the state was not enough, the industry was also facing the heat from various government levies.

"On an average the industry is

industry is pegged at around Rs 5,000 crore.

Incidentally, in move aimed at providing a fillip to the food processing industry, finance minister P Chidambaram had in 2006 fully exempted ice cream industry from the excise duty but this decision was reversed by his successor Pranab Mukherjee who first imposed a 1% excise duty arguing that ice creams were a luxury and later hiked it to 2%.

With Chidambaram back at the helm of the finance ministry, IICMA has now urged Union agriculture and food processing industries minister Sharad Pawar to urge the FM to remove excise duty, Gandhi added. Speaking about the potential of the ice cream market, Pradeep Chona of Ahmedabadbased Havmor Ice Cream said even neighbouring Pakistan relishes more ice cream than Indians at around 400 millilitres per person per annum as compared to compared to a per capita consumption of 300 millilitres in India. He pointed out that though high VAT and excise had shaved off their margins, the industry was still growing at a rate of 18% to 20% per annum.

TROUBLE IN ICE PARADISE With many States facing a power crunch, kirana shops as well as customers are facing the heat in terms of ice cream sales and consumption respectively.

Manyshop owners in various parts of India are complaining and have stopped stocking ice cream just due to the consistent power supply problem. Mr Rajesh Gandhi, President, IICMA readily believe that “Ice cream sales would grow 30 to 40 per cent more if the power situation in the country is stable.

Sales in tier-two cities have been most affected by the power cuts.”

Although no data have been collected, the impact of the power cuts has definitely been felt. “There are two serious problems — one, distributors and retailers are not willing to stock material due to the power shortage, and consumers are not buying because they are not able to stock ice cream,” said Mr Gandhi.

The power shortage is a national issue and as of today it is still at a nascent stage. If it continues, we will have to take up this issue and hold an emergency meeting for the same. The main problem is that we don't know who to address this issue to,” added Mr Gandhi.

Since this congress was held in the capital city of Andhra Pradesh, special focus was given to the

MARKET ISSUES There are certain factors that pose a challenge to the growth of this industry. These factors include the lack of cold storage chains, irregular supply of electricity and poor infrastructure for storage and transportation. It is a matter of concern for the industry that the Indian cold storage logistics chain is very poor. This obstacle hits the industry hard since an ice-cream is a highly perishable product. To overcome this hurdle and maintain the quality of their premium products, most of the ice-cream and frozen yogurt manufacturers seek assistance of special vehicles with deep freezers for transportation.

Another issue that bothers the manufacturers is the prevalence of a large number of unorganised players in this industry who offer

very low quality products at cheaper rates. The rising prices of milk and allied products are also not making life easier for the manufacturers, as they need to constantly raise the prices of their products, which have ramifications for the demand of their products in the market. Erratic and poor electricity supply in most regions of India is also irksome for the industry.

The way to finding solutions to most of these issues is for an aspiring entrepreneur to first do a thorough research on the frozen dessert industry and analyse the demands and line of working at several locations. It is important to find out what makes an ice-cream or frozen yogurt parlour popular in a particular area. Changes should be brought in the menu from time to time and the service as well as the ambience should be enhanced to attract more customers. Bringing in more product mix and matching flavours of homemade desserts may prove very significant.

BOOSTING THE ICE CREAM INDUSTRYIICMA was formed by ice cream manufacturers in the cooperative and private sectors in India to increase consumption and enhance quality standardsof the ice creams.All small, medium and large ice cream players together formed the association. The move was driven by the need to promote ice cream consumption and upgrade the product quality,” said Rajesh Gandhi, president, IICMA and managing director, Vadilal Industries Ltd. Mr Firoz H Naqvi asserts that the association has worked hard toward seeking better measures including reduction value added tax (VAT) as well as requesting the removal of central duty.

The members include the likes of Vadilal Industries, Havmor Icecream, Hindustan Unilever (Kwality Walls), Arun Ice-cream, Cream Bell Ice cream, Lazza Ice cream, Top N Town, Scoops Ice cream, and Dairy Day Ice cream.

According to Gandhi, the ice cream market in India is estimated at Rs 2,500 crore in the organised sector, growing at 20 per cent. The per capita consumption is around 300 ml per annum in India while it is 700 ml in Pakistan, three litres in China and 22 litres in developed countries like the USA, Japan, Germany and others.

In terms of units, both organised and unorganised players put together, the Indian ice cream market stands at 350 million litres, of which Gujarat has the largest share of 15 per cent. With the formation of an association,the member are working towards increasing consumption, food safety and quality, as well as better networking and knowledge sharing amongst members,” according to the eminent president.

Beverages & Food Processing Times-Jan-II-2013

Corporate News

Cargill to invest $91 million in India's food processing boom

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argill, the U.S. agribusiness giant, is investing in India's burgeoning processed food sector with a $73 million corn

milling unit, the head of its India operation said.

India's 1.2 billion population is eating increasing amounts of packaged and processed foods, using the financial benefits of an economy growing at nearly 6

percent to try western staples from McDonald's to Knorr packet soups.

"We aim to start a corn milling unit with a daily 800 to 1,000 tonnes processing capacity by 2014," Siraj Chaudhry, chairman of Cargill India, told reporters.

The company, a bellwether of world commodity markets, is acquiring land at Davangere in Karnataka, the top cornproducing state in India, Asia's second-largest grower of the grain behind China.

The first phase of the processing unit at Davangere will be up and running by the third quarter of 2014.

"Our plant will cater to the growing demand for modified starch in the

processed food segment," he said.

Demand for modified starch produced from corn - as a sweetener and thickener for the food and drinks industry is growing at 10-15 percent in India, Asia's third-largest economy.

India harvested 21.6 million tonnes in the year to June 30, 2012, just short of the record 21.7 million tonnes in the previous year.

Domestic consumption runs at 17 to 18 million tonnes a year.

Cargill also aims to increase its existing cooking oil refining capacities in the three plants that it runs in the world's top importer of vegetable oils.

India's output for edible oils meets only about half of its domestic demand. It mainly imports palm oil from Indonesia and Malaysia, as well as a small quantity of soyoil from Brazil and Argentina.

Cargill plans to raise its current daily refining capacity by a quarter to 5,000 tonnes a day, investing about 1 billion rupees over the next two years, taking its total investment to more than $91 million.

Darjeeling Tea to be Showcased at the Davos 2013 Meet: IBEF

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n a first-of-its-kind alliance, India Brand Equity Foundation (IBEF) (http://www.ibef.org) has facilitated an alliance between Premiere Teas - a leading Indian exporter of teas, and CafĂŠ Schneider - one of the finest cafes in Switzerland, for launching India's finest teas - Darjeeling Tea - at Davos, during the Annual Meet of the World Economic Forum. "What marks this initiative as truly unique, is the very nature of this alliance where a country's product witnesses its launch at Davos," says Ms. Aparna Dutt Sharma , CEO, IBEF. The MOU for this arrangement between Premiere Teas and CafĂŠ Schneider will be signed at the event.

IBEF, tasked with nation branding for India, will be instrumental in getting the various elements that make the India Adda hugely popular, together. From tea grown in one of the ideal geographical and climatic conditions - Darjeeling, Assam and Nilgiri - inIndia, food prepared with the finest Indian

spices from across the length and breadth of the country, and being served by one of the leading hospitality companies in India there are a range of offerings which together will form a cohesive unit to seamlessly function at the India Adda at the Annual Meet of the World Economic Forum at Davos later this month.

ITC Hotels, the hospitality partner, with India Brand Equity Foundation, for three years in succession, will showcase the world's finest Indian cuisine and India's finest global cuisine through its culinary repertoire and beverages, albeit in a subcontinental Finger Food Style at the India Adda. The theme of the cuisine this year draws inspiration from the newly opened, iconic ITC Grand Chola in Chennai, India and its diversity of culinary offerings.

Several of the meats, fish and dairy are sourced from local swiss farmers and are prepared fresh with the infusion of Indian Herbs/Spices

and cooking techniques by a team of ITC Hotels' Master chefs for each dining experience. On offer shall be Madras Fried Chicken, Chennai Curry Leaf Bhajji, Venison Spiced Kebabs, Alphonso Tartlets, Carrot Halwa Flan and much more.

Various organisations will synchronise and collaborate towards achieving the objective of making the India Adda at Davos 2013 a grand success - APEDA (Agricultural & Processed Food Products Export Development Authority) will be contributing with exquisite wines, Tea, Coffee, and Spice Boards of India will contribute with tea, coffee, and spices respectively, and ITC Hotels with their exceptional hospitality would ensure that every India Adda guest is well looked after.

Being the originator of the India Adda concept, IBEF hopes and wishes that India Adda experience continues to a cherished one for all its guests and visitors at Davos 2013.

Banas Dairy breaks own record in milk procurement

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anaskantha District Milk Producers' Co-operative Union Ltd (BDCMPUL), popularly known as Banas Dairy, has outscored other state dairies by producing a record 35.5 lakh litres of milk in a single day.

In January last year, the dairy had procured 30.07 lakh litres in a single day, said Parthi Bhatol,Banas Dairy chairman.

The dairy collects milk from 3.14 lakh producers through 1,400 milk collecting societies of the district .

Talking to media, in-charge managing director of the dairy Sanjay Karmchandani said, "We had been observing the milk procurement since many days and found that the production had gone to a record level of 35.50 lakh litre in a single day.

This is likely to increase in this week."

Banas Dairy is also planning to increase the procurement capacity by 50 lakh litres a day.

"We have recently commissioned two processing lines with a

capacity of 50,000 litres of milk processing per hour. The dairy has also started a huge cattle feed manufacturing unit with a capacity of 1,000 metric tones of dust-free feed a day," Karmchandani said.

With regards to quality and durability he said, "Nearly 81 percent of milk is being received in bulk system though tankers while just 19 percent is received through lose cans so the possibility of milk being spoiled or turning sour is negligible."

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McCain Foods to invest $69 m for potato processing in Gujarat

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cCain Foods India Pvt Ltd, a wholly-owned subsidiary of the Canadian major

McCain Foods, will invest another $69 million (Rs 372 crore) at its potato processing plant in Mehsana, Gujarat, a company official said.

The investments will roll in from October , said Vikas Mittal, Managing Director at the Vibrant Gujarat Summit held in Gandhinagar recently, according to a company statement here.

This investment will be done to expand capacities to meet increasing market demand for frozen snacks. It will increase farm acreage and employment opportunities to meet the expanded capacity needs.

The company expects more investment in Gujarat in short to medium term to meet growth needs,

he said.

McCain Foods India is working with about 1,200 contract farmers

over 4,000 acres in Gujarat to cultivate 'processed quality' potatoes in the State.

To meet the enhanced plant capacity, McCain Foods will be working with contracted farmers to double the acreage under potato cultivation.

For a variety of reasons, including agro-climatic conditions, a strong base of skilled farmers and infrastructure, Gujarat will continue to be McCain's preferred destination, he added.

McCain Foods India had set up a potato processing plant in Mehsana district with an investment of nearly $35 million.

Mother Dairy targets pan India presence

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other Dairy, a subsidiary of National Dairy Development Board has decided to be aggressive in expanding its ice-cream portfolio with an aim to be a pan-India brand.

Its main markets are now Delhi and Mumbai and central India. With new geographi es and products, it is hopeful of growing by about 40 per cent.

Among others, it would look to strengthen its presence in the traditional sweets market and regional specialities. Currently, the ice-cream accounts Rs 300 crore of Rs 700 crore the products wing brings in, acccording to Subhashis Basu, who heads the dairy division at Mother Dairy Fruit and Vegetable.

According to him, it has about 30 per cent share in the northern India in the ice-cream market and has been growing at around 80 per cent in Mumbai that it recently forayed.

It has presence in central India. It is now expanding to southern India by adding Chennai and Bangalore. It forayed Hyderabad markets already.

The organised Indian ice-cream market is estimated at Rs 1,800 crore and the industry is growing at

around 18 per cent. But Mother Dairy is growing at 30 per cent, and with more areas being added, it would grow at 40 per cent, said Basu.

It has plants in Delhi, Kolkata and Maharashtra, which will also cater to southern markets. Niche products

are being sent from Delhi. A plant would come up in Bangalore or Hyderabad in about three years and might entail an investment of Rs 150 crore and a 40,000 litre capacity. It would outsource some production to third parties.

There is a lot of potential in India as the per capita ice-cream consumption in India is a low 300 ml per year compared with 18 litre in the US and 12 litre in Europe.

It is focussed on fresh fermented products like the curd, lassi and others which have a short shelf life up to 21 days. It is now test marketing Kolkatta with some products sent by air from Delhi.

Bangalore and Hyderabad markets are next, he said adding that traditional sweets will also be a key offering, Basu said.

Beverages & Food Processing Times-Jan-II-2013

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Beverages & Food Processing Times-Jan-II-2013

Dairy News

Milk crisis looming S

addled with huge stocks of skimmed milk powder, and a weak export demand, the dairy industry is struggling in India.

Dairy farmers are in crisis. High input prices and declining milk prices have pushed them to the wall. But the consumer prices remain firm, showing no signs of declining.

When NCP leader Praful Patel said in Parliament during the debate on FDI in retail how in Baramati in Maharashtra, agriculture minister Sharad Pawar had ensured that dairy farmers got a minimum prices of Rs 20 per litre for milk, I was amused. This is not a fair price, but a depressed price being paid to farmers. All cooperatives and private plants are paying around the same to mil producers.

Saddled with huge stocks of

skimmed milk powder, and with a weak export demand, the dairy industry is trying to minimise its losses. It is therefore passing on the losses to primary producers. Now such a situation is not peculiar only to India. Let us therefore try to understand how the international community reacted to a dip in prices.

In 2009, about 20 per cent of 1,800 dairy farms in California, for instance, had shut down unable to survive at times of higher feed and transportation costs. Similarly, in 2009, when international milk prices had dipped to a low, the European Union defied the World Trade Organisation (WTO) and reintroduced milk subsidies. It provided Rs 3,600 crore in subsidies to its dairy farmers to offset the losses incurred.

While US/EU have always made efforts to rescue their dairy farmers, I have never understood the rationale of letting domestic dairy farmers shut down when farm prices fall for no fault of theirs.

With private and cooperative dairy industry reducing the milk prices to Rs 20.50 a litre, it is certainly uneconomical to maintain a dairy herd. In Punjab, Gujarat, Maharashtra and Rajasthan, quite a large number of dairy farmers have opted out.

Let us see how Europe coped up with the crisis. In European Union, there are 10 lakh dairy farmers.Collectively, they produce more milk than what is produced in India or for that matter in America.

As per WTO norms, EU was supposed to have phased out its burgeoning dairy subsidies. But who cares when it comes to domestic interests. EU reinstated subsidies to support milk production as well as for export when it was hit by economic recession. By doing so it has been

able to capture 32 per cent of the global market for dairy products by volume.

According to the Dairy Farmers of Canada (DFA), EU dairy farmers receive subsidies to the tune of Rs 3.96 lakh crore every year.

These massive subsidies insure dairy farmers against the volatility of the markets, and at the same time enable them to dump subsidised milk onto developing countries.

Looking for an export market, EU is flexing its muscle and under the proposed EU-India Free Trade Agreement (FTA) it wants milk tariffs to be slashed by 90 per cent.

EU is seeing India as a big market for its milk and milk products, and all indicators are that India will open up its domestic dairy market for EU imports.

Lesser number of farms In America, on the other hand, the number of dairy farms has come down by 61 per cent since 1992, and only 51,480 dairy farms now exist. These farms received

subsidies worth Rs 27,500 crore since 2009, which in other words means a third of its milk price is subsidised. These subsidies come under several programmes: milk income loss contract payment; market loss assistance; milk income loss transitional payment; dairy economic loss assistance programme; milk marketing fees; dairy disaster assistance; and dairy indemnity.

Interestingly, cash subsidies in the US are doled out under Dairy Export Incentive Programme. EU on the other hand subsidises nearly 50 per cent of its dairy exports.

Let me also dispel another commonly held notion. In an era of market economy, it is generally believed that American/European farmers are dependent entirely on the private supply chain. It's not so.

After March 2009, EU had restarted buying surplus butter and milk from dairy farmers at an intervention price of Euro 2,218 and Euro 1,698 per tonne, respectively. In America, milk price support programme ensures that the government buys any surplus amount of cheese, butter and non-fat dry milk at a minimum price. In addition, since 2002, it has introduced a programme to distribute cash subsidies to milk producers when prices fall below a set limit. I see no reason why state governments cannot provide such subsidy support to its dairy farmers when prices fall.

It's not as if state governments do not have resources. Punjab, for instance, had made available Rs 1250 crore in interest free loan spread over five years and on top of it gave a 15-year tax holiday to steel tycoon Laxmi Mittal for investing in the Bathinda refinery. I see no reason why it cannot rescue small dairy farmers who are gradually sinking.

Therefore, to begin with, state governments should consider subsidising the cooperatives to raise the milk procurement price to at least Rs 25 per litre. Secondly, it should also reduce the bank interest on loans taken from existing 12.5 per cent to 7 per cent.

The Centre and the state government should consider measures to rescue milk producers before they start giving up the sector leading to serious shortages and forcing India to become an importer of this vital commodity.

Amul to open Mumbai suburb plant next month

A

mul is all set to reach Mumbaikars' doorsteps with one of its most modern dairy plants at Virar, a northern suburb of the metro.

"This will be the first dairy plant with a fully automatic traffic management system using robots for milk packing operations. It will be inaugurated next month," Amul Dairy's managing director Rahul Kumar told.

The homegrown milk brand, marketed by theGujarat Cooperative Milk Marketing Federation(GCMMF), has many firsts in India, including a 50,000litre milk reception, processing,

automatic online standardization and homogenization line, and dedicated fermented milk products manufacturing facilities with the use of robots. The Virar facility will be Amul's sixth plant in India.

Operations such as conveying of crates, packed pouches from highspeed packing machines and filling of pouches in crates by robots will be fully automated and controlled through a centralized computer monitoring system.

High-speed packing machines have been integrated with online check weighers and robotic operations in order to keep the product from any human touch.

"The facility has been built with an investment of Rs 160 crore and is spread over 11 acres, strategically situated just 2km away from NH-8 and with an easy approach from Virar, which is 7km away," said Kumar.

Amul has decided to procure locally up to 2 lakh litres per day (llpd) of milk by setting up cooperative services on the GCMMF pattern in the areas between Manor and Vasai-Virar to improve the socio-economic condition of poor farmers who are not involved in dairying activities at present.

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'Demand for milk in India is fast outgrowing supply'

F

onterra Co-operative Group Ltd is a New Zealand-based multinational dairy cooperative owned by almost 10,500 farmers of the scenic country. The company churns revenue exceeding NZ$19.87 billion. Early next year, Fonterra is set to open its office in Delhi. It will be Fonterra's first operating office in the country with India-based staff. At the helm of all this is Hamish Gowans, the General Manager for Fonterra in India. In an interview with Shruti Srivastava, Gowan says Fonterra is here to better understand the Indian dairy market and add value to it.

Excerpts: What made Fonterra choose India, and what is the strategy of the company here?

India is on track to become one of the largest dairy industries in the world. With 20 million more mouths to feed every year, and an increasingly affluent population, the demand for high quality dairy nutrition continues to grow at a rapid pace. Annual dairy consumption, for example, is forecast to reach around 180-200 million tonnes by the end of the decade.

We understand there is huge potential for growth and we want to be on the ground understanding how we can help meet some of this demand and bring Fonterra's high quality dairy nutrition to the local population. In 2013, we will be primarily focused on learning as much as we can about the industry and meeting as many local companies as possible, to understand where we can add further value to this industry.

Although New Zealand only produces 2 per cent of the world's milk and India is one of the largest producers and consumers of dairy in the world, we do have a lot of similarities. Both of our dairy industries are important to the national economy and built on generations of family dairy farming.

We see a great opportunity to build on common values and develop long-term strategic partnerships.

When does the company plan to launch its products in the country?

We currently sell ingredients and dairy products to key customers in India, which complement local supply and bring nutritious, high quality dairy solutions to consumers. Some of these customers are also using our dairy ingredients to export finished dairy products around the region.

We are still exploring opportunities for our other dairy products such as out-of-home dairy solution, specialty dairy ingredients and consumer brands.

Given the policy changes in the retail sector, what is the company's view on the dairy sector in India?

In our view, there is no question that India will become one of the largest dairy markets in the world by 2020.

Demand is expected to grow by about 10 per cent until 2020, while local milk production is only expected to grow by around 2 per cent. The biggest challenge for the Indian dairy industry is to increase milk production to meet this demand gap. That's why Fonterra is exploring opportunities for its business in India. We want to see how we can help the local industry meet this demand growth.

Mother Dairy plans to set up production facility in south

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elhi-based Mother Dairy Fruit & Vegetable Private Limited, a wholly-owned subsidiary of the National Dairy Development Board, is planning to set up a manufacturing and marketing base either in Hyderabad or Bangalore.

According to organisation's dairy division head Subashis Basu, there will be a manufacturing base in the south by the end of this year.

However, it is yet to be decided whether the Rs 5,300-crore Mother Dairy will have its own production facility or have a tieup with a third party in this regard. Basu told that Mother Dairy was expanding its icecream market and would be completing its national footprint in 2013-14. “Thereafter, in about two years' time, we expect to occupy the top position in the estimated Rs 1,800-crore icecream and frozen desserts market in the country.”

At present, with an annual turnover of Rs 300 crore, Mother Dairy stands third in terms of market share. Ice-cream

accounts for over 40 per cent of its Rs 700-crore dairy products (excluding liquid milk) turnover.

Basu said Mother Dairy, which launched its entire range of icecreams in Hyderabad, would be foraying into Chennai in a couple months and subsequently to Patna and Ahmedabad. “We are focusing on the top 20 cities in the country. So far, we have reached 12-13 cities,” he said.

Mother Dairy is expecting to corner 10 per cent of an estimated Rs 130 crore icecream market in Andhra Pradesh over a period of one year. “With a growth rate of 80 per cent a year, we are the fastest growing brand in Mumbai,” Basu said emphasising how Mother Dairy would be able to secure onetenth of the AP's ice-cream market in just one year.

Commissioned in December 1974, Mother Dairy today is a market leader in the branded milk segment in Delhi where it sells close to 3 million litres a day. Besides dairy products, it sells frozen foods and juices under the brand name 'Safal' and 'Dhara' brand edible oil.

Beverages & Food Processing Times-Jan-II-2013

F&V News

9

India bananas seek bigger share of global market

I

ndia, the largest banana producing country in the world, is vying for a bigger share of the global market.

An ambitious plan has been drawn up by the Confederation of Indian Industries (CII) to export Indian-grown bananas globally to China, East Asia, the Middle East and Europe.

It is estimated that the annual trade could be worth $1.2bn (£750m).

crores of Indian rupees ($16.8bn; £10.4bn).

Lack of trust

The CII's Mr Thiagarajan agrees that farmers in India have little faith in the corporate sector.

Even though the CII is confident, farmers in the southern Indian state of Tamil Nadu, the largest banana growing area in the country, are very sceptical about the entire plan and its chances of succeeding.

"There is a trust deficit, which we are trying to overcome," he says.

They fear that the scheme would

Farmers insist that although they have improved productivity over the years, their socio-economic conditions remain the same.

"Indian farmers grow more, but

But farmers are not convinced about the plan and say they should be involved in the hammering out of the cold chain infrastructure National Action Plan.

But as local production is unable to even meet domestic demand, questions are being raised about the prospects of the entire project.

Post-harvest losses

The CII acknowledges that its ability to engage with the farmers has been low so far and aims to improve it significantly.

The CII is confident that, with a gestation period of 18 months, its plan would succeed.

Although India is one of the largest producers of many fruits and vegetables, post-harvest facilities are still in their infancy, especially as there is no cold chain infrastructure - with the exception of a few commodities such as potatoes, Mr Thiagarajan explains.

The annual post-harvest loss in perishable fruits and vegetables is estimated to be around 80,000

The initial plan of the CII, along with the NBRC, is to strengthen the post-harvest facility and to export fruit that in the past would have been thrown away.

"Delivering properly ripened high quality bananas will provide a high price realisation" Dr Mustaffa says.

The plan is to create a global brand for Tamil Nadu Bananas, along the lines of Florida Oranges and California Apples.

"If the post-harvest losses alone can be avoided then exporting 28 million tonnes of bananas would not be a problem," according to B Thiagarajan, chairman of the National Cold Chain Task Force at the CII.

MM Mustaffa, of the NBRC, told that efforts are ongoing to reduce this loss to 10%, thereby saving wastage and also helping farmers make a profit.

Economic analysts say that unless a strong bond between farmers and buyers is forged, the entire plan could collapse. fail to benefit the growers.

"We have a bitter experience in the case of exporting mango pulp to many countries and the CII never came to our rescue during that crisis," says Rama Gounder, secretary of the Tamil Nadu Agriculturalists Association.

"Due to the volatile political climate in the Middle east and the recession in the European and the US markets, tens of thousands of mango farmers suffered heavy losses over the last two years, but no support came our way."

farmers themselves have not grown" says Mr Gounder.

Improved productivity The CII says the formulation of a cold chain infrastructure will go a long way in avoiding post-harvest loss, which alone could make banana exports a profit-making business.

Research done by the CII and the National Banana Research Centre (NBRC) in Tiruchirappalli has shown that the post-harvest banana loss is around 30% in Tamil Nadu.

But Mr Thiagarajan and his team are optimistic.

"Farmers in many part of Tamil Nadu have already started producing superior quality bananas, thanks to the research work done by the NBRC," he says.

"Also, many Tamil Nadu farmers visited Israel and learnt better production and harvesting methods.

"We produce good bananas, but we are not ripening them properly, that is the problem this project will address.

"Farmers are now being educated to hasten the process of ripening the fruit by inducing ethylene gas in a controlled way so that ripening is even."

Global competition India's anticipated 8% growth in gross domestic product will not happen unless, and until, the agriculture sector is able to grow between 3-4 %, according to the CII. Its studies show that without modernisation, the agriculture sector cannot achieve such growth.

India is a low cost agriculture producer and if the quality of ripening alone is improved, then the farmers can get higher value for the same produce, according to the NBRC. Per hectare production of bananas in India is very low compared to many countries, encouraging a rapid change to farming technology.

Industry leaders say that competition from the Caribbean and South American producers can be effectively challenged.

The NBRC points out that the Cavendish brand of banana is produced in these countries and exported to the European market.

But with more than 30 varieties of banana being produced in Tamil Nadu, it notes that the global market will be offered more variety at a very competitive cost.

Whether or not this ambitious plan will succeed, is the big billion-dollar question.

EU promotes potato to replace rice in Asia T he potato has a 12,000-yearold history but an even brighter future as a crop that is set to replace rice as a staple in the Asian rice-consuming countries.

It requires less amount of water compared to other basic food products, without compromising the nutrition value. Potato, therefore, is increasingly being promoted, in the genetically modified organism-free European Union (EU), as the foremost solution for meeting the increased food demand for an estimated 6 billion world population by 2030.

Dutch researchers from the famous Wageningen University — dedicated to bio-based economy in food, feed and chemicals produced from renewable resources — told a visiting press delegation that if prepared in a healthy manner and consumed in the right proportion (balanced reduction of calories), consumers can benefit from the many nutrients and dietary fibres in the tuber. The advantages of potato over other staples were discussed at the “Potato Potential Conference”, which was followed by a vibrant food exposition organised by the Enterprise Europe Network and Food Valley that facilitated networking of global companies in the potato business. The EU's focus

is now on Eastern Europe and China for processed food markets.

The visiting journalists were told that China is already moving towards experiments with replacing rice with potato.

The diverse advantage of potato — the fourth largest consumed food in the world after maize, rice and wheat — is emphasised by studies that have shown potato containing less calories than pasta, rice and bread. The tuber consumes about 30 per cent less water to grow than rice and is being projected as a crop that can contribute to weight loss “if prepared and consumed healthily.”

Researchers and scientists are working towards facilitating higher and sustainable crop yields per hectare that are free from disease and pests.

With an annual export of about eight million tonnes of certified seed potato, the tuber is not only a staple food for the Dutch, but a major contributor to the economy.

Netherlands, known for its success in water management, is the world's third largest agriculture exporter, second biggest agri-food exporter and third largest potato exporter.

Quality standards The Dutch potato sector is

constantly breeding, growing and selecting new varieties based on market demands. Simultaneously, processing companies (like Aviko) continuously experiment with the quality and flavour of their potato fries and how to get the best byproducts from wastes like potato peels and starch-rich waste water.

The potato crop is normally hit by the most common late blight disease (caused by phytophthora infestans), scab, rhizoctonia, canker, blackleg, fusarium and viral diseases. All research at Wageningen is in partnership with private and multinational companies and, at the same time, with medical institutions so as to not lose sight of the nutritional and safety aspects in food products.

The EU has laid down stringent standards for member countries for seeds and seed potatoes to coordinate with the demand and supply. The visiting press team saw the high standards maintained by the Netherlands government at the NAK, the Dutch General Inspection Service for Agriculture Seeds and Seed Potatoes at Emmeloord.

Technical Coordinator of Inspections Jaap Haak explained that every seed potato that comes out of a farm must have quality certification from the NAK.

The Plant Protection Service of the Dutch Ministry of Agriculture, Nature and Food Quality, too, monitors the quality of seed potatoes, especially on phytosanitary issues of health, varietal purity and physiological conditions. Interestingly, the NAK has on its board representatives of farmers, breeders, propagators and traders in a set-up in which the farm sector formulates its own standards in line with international measures. The costs are shared by farmers and traders. Mr. Haak said that only produce from fields free of nematodes are accepted for inspection. Farmers must also specify the sources of the seed, its variety and class. Inspections are visual, in the labs as well as onfield. As the grower prepares the lots for delivery, NAK inspectors visit the plot at least once a day to ensure that only the approved lots are being delivered.

Nieck's Witte Under its Participatory Potato Breeding programme, the Wageningen University collaborates with farmers in producing required varieties. Niek Vos, an organic farmer-breeder, took 12 years to develop the Bionca variety, by crossing small South Holland potatoes with blight-

resistant potatoes from Mexico. His is a white fleshy potato variety, resistant to late blight disease, and he sells it under his own brand name — Niek's Witte (Nieck's White).

“I turned to organic farming because when I was in conventional farming, my neighbours complained that the late blight afflicting their crop was coming from my field. I thought it was better to grow a variety that has no blight and now I have my own Niek's Witte,” he said. He also has an on-farm cold storage of 100 tonnes capacity. He uses cow manure on his well-managed and clean farm and follows the good practice of keeping his 70-hectare field free after every two years to maintain soil health.

The organic potato is three to four times more expensive than the conventional one, but Mr. Vos believes this market is growing.

Mr. Vos has an India connection.

After finishing studies, his daughter Michiel travelled to Puducherry “to think out” what she wanted to do in life. She decided to return to Netherlands and join her father in growing potatoes — such is the power of the tuber in Netherlands.

Beverages & Food Processing Times-Jan-II-2013

Global Outlook

10

Changing the global The rising number of nuclear families, exposure to global trends, the increasing number of employed women, and increase in the number of dual-income households, they have all had a significant impact on eating-out habits as well as a tilt towards foreign brands.

A confluence of factors is driving the expansion of quick-service restaurants here: There is rapid urbanization, not just in the megalopolis cities such as New Delhi and Mumbai, but especially in small towns and mid-sized cities. India’s urban population is expected to double in the next seven years, and two-thirds of it is under the age of 30.

That has made the fast-food segment the fastest growing part of the restaurant market. Indian youth prefer foreign brands, find junk food tastier, and are more likely to be influenced by advertisements while their peers elsewhere buy local brands to support economy, finds a nine-country marketing survey about preferences of 18-to30-year-old towards fast moving consumer goods.

Indians embraced the fast food and foreign brand market enthusiastically enough that in today’s time Domino’s has 513 outlets across 112 cities in India, with a restaurant and delivery business. At first People acknowledged the pizza was very good, the service was very good, but the biggest hindrance was that they perceived that Domino’s was a very expensive brand.

Domino’s India Pizzamania, priced at 44 rupees opened doors for a lot of Indians who had never tried Domino’s or ordered us at home and today lot of new people who had never tried pizza coming to dominoes – and over time graduating to other products. … It’s democratic consumption now.McDonald’s Corp. is the clear leader that has close to 250 outlets. Subway, which arrived in 2002, is playing a fast game of catch-up with 320 stores in 60 cities and plans to top 400 sites next year; Baskin-Robbins has locked up the dessert market, with 425 stores in 95 cities, including many far from the country’s major urban hubs.

All of these firms have relied on the international cachet of their brands, and all are now using a “sub-dollar pricing” strategy to try to convince a new segment of consumers that regular visits to a fast-food outlet are feasible for them.

KFC has been the market leader here; with a “Streetwise” range offering a hot chicken meal starting from 25 rupees. Domino’s Pizza mania is now priced at 44 rupees. McDonald’s offers a full hot lunch for under a dollar. Pizza Hut has 60-cent “iPan” pizzas for delivery This strategy is also being aggressively pursued by the other big players in the $12.5-billion Indian fast-food industry. While organized retail has only 5 per cent of the fast-food market (the rest is made up of stand-alone restaurants and road-side dhabas), it is growing with explosive speed, about 36 per cent last year, dominated by a handful of international brands.All of this ultralow pricing is paired with aggressive print and television marketing, showing people who clearly cover a wide socioeconomic range eating in the outlets.

Indian policy makers have now allowed big foreign chains like Wal-Mart and Tesco to set up stores in the country. Though defied by many leaders,companies like Benetton and Domino’s that sell goods under a single brand or through franchisees had already been free to set up stores with Indian partners.

The government appears to be counting on the support of the young generation. Many of those in their 20s or younger were born just before or after the country began introducing free-market policies and opening its economy to greater trade and foreign investment in the early 1990s.

India’s youth grew up during a time when foreign brands like CocaCola, Suzuki and Levi’s became touchstones across the country.

Some foreign companies have become ingrained in the fabric of Indian culture. For instance, many Indians now serve Cadbury milk chocolates at religious festivals, along with traditional sweets.

Indians ages 16 to 23 already account for a quarter of the spending on clothing and 16 percent of spending in restaurants in India’s 50 biggest cities, according to Technopak, a research and consulting firm. The young also tend to spend more money in modern retail stores and on foreign brands than their parents, who tend to shop at traditional outlets and buy more Indian products.

This is a segment that will flourish over the years because there are so many young people and a lot of people are taking part-time jobs or are working so that gives them a lot more disposable income.

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EMINISCENCE: Along with the exaltation of the growth of the food industry, India can now also flaunt of having an integrated law to regulate food products across the country with the focus on curbing the danger of food adulteration and ensuring that

SIGNIFICANT FEATURES OF THE ACT The Food Safety and Standards Act is a step in the right direction and seeks to modify the basic approach to food safety from farm to fork. Under the current Act, there is a clear shift from “checking adulteration and

STATUS OF IMPLEMENTATION OF ACT, RULES AND REGULATIONS The Food Safety and Standards Act is further strengthened with a new set of detailed rules and regulations coming into force in the year 2011. Food Safety and Standards Rules which came into

consumers have access to safe and quality food.

India had a complicated system to regulate food products with eight different acts and orders administered by four different ministries until recently. There was clear lack an integrated approach to food safety management with a universal emphasis on risk mitigation, risk management and prosecution of wayward perpetrators. So far, samples were collected at the point of occurrence and identification of contamination was generally carried out by inadequately trained staff, while subsequent testing of these samples was carried out in illequipped labs. These resulted in several legal disputes remaining unresolved on frivolous grounds of errors in sample collection and examination resulting in a lack of legally enforceable case against the offenders.

The presence of multiple acts and orders led to multiple controls over various commodities with conflicting provisions. The Government of India comprehended the need for harmonising the food laws as a pre-requisite for fostering growth in the food processing industry and successfully introduced the Integrated Food Safety Bill. In 2006, this Bill ultimately became the Food Safety and Standards Act (FSSA). Further, a statutory regulatory body, the Food Safety and Standards Authority of India (FSSAI), was constituted on September 5, 2008, under the ministry of health & family welfare. The FSSAI's mandate is to lay down science-based standards for articles of food and to regulate their manufacture, storage, distribution, sale and import to ensure availability of safe and wholesome food for human consumption.

prosecution” to “selfcompliance” enabling responsibility with the food business operator to comply with the law. The Act mandates , through a new set of regulations, untouched areas like proprietary foods, novel foods, GM foods, dietary supplements, nutraceuticals and more. The Act also stipulates bringing regulations / guidelines for food imports, food recall and an active surveillance system. The current Act also empowers consumers to draw samples and send these for analysis to recognised labs—an act of empowerment of consumer to prevent food contamination through a structured legal remedy. In case of minor offences, the Act stipulates faster disposal without going to courts.

As per the new Act, the role of FSSAI will be 1. To frame rules, regulations, standards and guidelines in relation to articles of food and provide guidelines for accreditation of certification bodies / laboratories 2.To offer scientific advice and technical support to the Central and state governments in matters of framing the policy and rules in areas related to food safety and nutrition 3.To collect and collate data on food consumption, incidence and prevalence of biological risk, contaminants or residues thereof in food, and the introduction of a rapid alert system 4.To establish an information dissemination network about food safety across the country 5.To contribute to the development of international technical standards for food safety and phyto-sanitary standards 6.To promote general awareness on food safety and food standards

effect in Feb 2011, details the administrative and enforcement structure, processes and procedures for sampling, prosecution & appeal, and powers and duties of various functionaries under the Act. Further, the Authority notified Food Safety and Standards Regulations into 6 parts on August 5, 2011: 1.Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011 2.Food Safety and Standards (Packaging and Labelling) Regulations, 2011 3.Food Safety and Standards (Food Products Standards and Food Additive) Regulations, 2011 4.Food Safety and Standards (Contaminants, Toxins and Residues) Regulations, 2011 5.Food Safety and Standards (Prohibition and Restrictions on Sales) Regulations, 2011 6.Food Safety and Standards (Laboratory and Sample Analysis) Regulations, 2011 TO MEET SAFETY NORMS Food retail outlets and restaurants are busy revisiting their working models with the Food Safety and Standards Authority of India (FSSAI) cracking the whip to ensure stricter food safety measures in the sector. While large chains claim to have ensured adherence to the new norms already, small-to-mid level restaurant chains are gearing up to avoid being penalized after the February 4 deadline this year.

FSSAI has mandated hat all eateries in the country, which includes multinationals such as KFC, Pizza Hut, McDonalds and domestic restaurant chains, canteens and cafeterias will need a 'food business operator' license

Beverages & Food Processing Times-Jan-II-2013

Global Outlook

11

FSSAI

outlook of Indian food industry from the authority.

The organization had also come up with a list of stringent hygiene measures to be practiced at these outlets. Failure to ensure compliance with these measures would subject companies to "heavy fine". The norms, which were to be implemented from August 2012, were postponed by six months to allow more time to companies. FSSAI has a wide range of measures to ensure food safety at eateries. Food companies could voluntarily approach the authority in case of any safety related issues. Under the new norms, FSSAI will randomly conduct checks at these outlets as well as increase the frequency of such inspections.

The norms have been framed to ensure greater accountability.

That is not happening today.

FSSAI motive is not to implement a license raj but to align food safety practices in India with foreign practices.

While most international chains said they follow standard food safety practices, domestic food chains such as Bikanervala said they are busy working on final formalities.

Foreign players such as USbased Yum! Brands, which operate Pizza Hut, KFC, Taco Bell in India and TGIF, said the mandate is not new for them.

"We are aware of the food business operator license mandated by FSSAI and have applied for the requisite licenses as per the timelines set," a company spokesperson for Yum! Brands said. Devyani International, which has the franchise rights for brands such as Pizza Hut, KFC, Vaango and Swensen's, said the new guidelines will largely affect smaller food retail companies, because bigger companies like them follow all of these norms even now. The rules of the game will change for smaller players as they will have to comply with stricter measures now.

Under the new norms, companies will have to ensure that the authority always has up-to-date information on their food business. Companies will also have to employ at least one technical person possessing a degree in science with chemistry, biochemistry, microbiology or food and nutrition to supervise the production process. Specific hygiene guidelines in the kitchen, apart from ensuring optimum standards of raw materials and maintaining daily records of production will be compulsory too.

National Restaurant Association of India (NRAI), which has been working with the authority on this issue, said this will help boost healthy growth in the organized restaurant space in India. According to estimates, the

size of the eating out industry in India stood at Rs 43,000 crore in 2010 and has been growing at 20%-25% annually.

There is a need for every food vendor to be regulated by the authority. State governments need to come out in full support of the move to ensure food safety.

FSSAI'S RULES FOR NEW FOOD PRODUCTS ENTERING INDIA With continuous innovation and

research happening in the area of foods, a lot of new products and new ingredients can be seen coming into the food segment especially under the nutraceutical and functional food category. A lot of foods imported into the country also may contain ingredients which are being introduced in India for the first time.

Under the PFA (Prevention of Food Adulteration Act) regime, there was no provision to regulate such foods. The FSSAI (Food Safety and Standards Authority of India) under the new food law has introduced a regulation providing for requirement of new food product/ingredient approval before obtaining a license for the manufacturing of such foods.

The requirements : It has been provided under Schedule 1 of FSS (Licensing & Registration) Regulation, 2011 that food business operators manufacturing food containing ingredients or using technologies that do not have a history of safety or having ingredients which are introduced in the country for the first time need to obtain FSSA licence.

According to the Food Authority, such FBOs must apply for product approval before applying for a central licence.

Who all are covered: All the food business operators who are manufacturing or importing any article of food containing ingredients or substances or employing processes or technologies whose safety has not been established. It also includes any food article containing ingredients or employing technologies which do not have a history of safe use.

The process: Applicant must apply for every product or ingredient approval separately in

whether the product shall fall under either of the categories mentioned above. Category A shall include applications where the product safety can be established.

Applications where further assessment is required are classified under category B. They will be sent to scientific committee. The applicant will have to furnish an additional payment of Rs 25,000.

Furnishing information: The format provided for application

the format prescribed by the authority. Application must be made with a demand draft of Rs 25,000 in favour of senior accounts officer, FSSAI payable at Delhi.

This payment shall be made towards initial screening of the application by the Approval Screening Committee. The envelope must be superscribed with the heading "New Product/Ingredient Approval".

The committee will decide

describes extensively the information and data supporting to be provided by the applicant.

Administrative information, technical details, information on efficacy and nutritional impact of the product are the aspects to be covered by the applicant.

Technical information is the second section of the application.

Name of the new ingredient or new product must be provided. In case of product application, the common name, product

composition and the brand name if applicable must be provided.

With respect to new ingredient application, the chemical or other name, name of the food in which it is proposed to be used along with the concentration, and the brand name must be provided.

FINISHING POINT The Act put in together with these regulations, amalgamates all the previous laws and orders with duplications, conflicts, and redundancies removed, and covers in a more structured manner, the licensing of food businesses, standards for additives and food products, limits for contaminants, residues, labeling guidelines, prohibitory aspects of sale of food products, proprietary food and more. The FSSAI envisages the necessity of upgrading existing labs and creating a large network of new labs in order to provide the requisite support to the new and vibrant food safety regime.

The Authority has also taken steps to create a new enforcement structure and judicial dispensation system for fast track disposal of cases. The state level food safety commissioners will play a key role in surveillance and enforcement. Food safety commissioners in every state with the designated officers are now responsible for enforcing the act in every district. The Authority has constituted scientific panels and scientific committees to address all scientific matters relating to food safety so that matters of emerging science can be discussed and factored in during the development of new products by the industry. Sathguru Management Consultants played an important role in supporting the efforts of the Authority over the two years in the formation of the needed structures at the apex and grass root levels.

Some Snippets have been taken from ET, article

by Pabodh Halde

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Beverages & Food Processing Times-Jan-II-2013

Food Processing News

Food processing mission set up in Dakshina Kannada

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unique feature of the mission is that it offers colleges financial grant of up to Rs. 75 lakh for offering courses in food processing The Dakshina Kannada District Food Processing Mission has come into force under the Union government's National Mission on Food Processing. A unique feature of the mission is that it offers

colleges financial grant of up to Rs. 75 lakh for offering courses in food processing and setting up food processing units on a pilot basis.

Mune Gowda N., Deputy Director, Department of Horticulture, Dakshina Kannada, and MemberSecretary of the district mission, told that the district mission, a 11member body, came into being recently. It is headed by Deputy Commissioner N. Prakash. The National Mission on Food Processing had come into force under the 12th Plan.

Mr. Gowda said that colleges or universities would have to submit a project proposal to the district mission to avail the grant. The institutes could offer certificate, diploma, and degree or postgraduate courses on food processing. They could purchase books, e-journals, set up laboratories, and purchase laboratory equipment. The

institutes could set up a pilot plant of food processing. The project proposal should encompass all the components.

He said the government would provide 10 per cent to 20 per cent (with a ceiling of Rs. 75 lakh) of the project cost to the universities after the government approved the project. It would be a one-time grant. Mr. Gowda said an autonomous college in the city had submitted a proposal to the district mission seeking grant as it had proposed to offer a postgraduate course in food

processing. He said the mission offered financial grant for entrepreneurs for setting up new food processing units or upgrading the technology of their existing food processing units. The assistance would be up to 25 per cent of the project cost with a maximum ceiling of Rs. 50 lakh.

It provided 50 per cent assistance of the project cost with a maximum ceiling of Rs. 10 crore for setting up cold storage units, value addition units, and to purchase refrigerated vans which support supply chain development.

The non-governmental organisations (NGOs) or any other identified institutes or bodies which promoted food processing activities through seminars, workshops, training programmes, exhibitions, and tours could avail from Rs. 1 lakh to Rs. 3 lakh.

There would be a one-year follow up of the activities of the beneficiary institutes or bodies.

For example, if an institute trained 20 candidates in food processing, how many of them had ventured into food processing would be monitored for one year. He said that in addition to horticulture produce, the food processing activities applied to fish, meat, and dairying.

Mr. Gowda said as the financial year 2012-13 would end in three months, the mission now would focus on promotional activities for the remaining months in the district.

Food processing top on the menu

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he North — the country's granary — is cooking up plans for the food processing industry.

The emergence of organised retail coupled with changes in foreign investment norms is expected to provide a fresh impetus to the sector.

The demand for processed foods and vegetables is on the rise driven by the changing lifestyles, demographic profile, rising urban population, disposable incomes and transformation in consumption habits.

Besides, the Government's policy push to promote value addition in agriculture is also aiding the growth.

The northern States of Punjab, Haryana, Uttar Pradesh and Rajasthan continue to be the major producers of foodgrains and cereals such as rice, wheat, pulses and oilseeds.

This apart, Himachal Pradesh, Uttarakhand and Jammu and Kashmir have emerged as major growers of vegetables and fruits.

The northern States have a major share in the 250-million tonnes (mt) of foodgrains produced by the country last year.

Also these States account for the bulk of the 126-mt of vegetables and the 64 mt of fruits produced annually. However, only a small quantum of the farm produce in

India is converted into processed and packaged foods.

POLICY PUSH Through a proper policy push, the Government is aiming to increase the level of processing of perishables such as fruits and vegetables from 6 per cent to 20 per cent. Besides, it also aims to enhance value addition to farm products from 20 per cent to 35 per cent in the years to come.

The northern States lead others in terms of converting farm produce into packaged and processed foods. This is even as the Indian agriculture witnesses a major shift from traditional farming to horticulture, meat, poultry and dairy products.

The northern States process about a fourth of fruit, vegetables and milk against the national average of around 10 per cent. Major food processing companies in the North include PepsiCo, Nestle, Amul, ITC, Mother Dairy, Dabur, Haldiram and Milk Food.

COLD CHAIN INFRASTRUCTURE Further, the northern States also lead others in terms of consuming processed and packaged foods.

Such a trend has led to creation of back-end infrastructure such as cold chain in these States not only in the public sector, but also in the private sector in the past few years.

The capacity of total cold chain infrastructure in the country now exceeds 30 mt, half of which has come up in the past eight years.

Major investments in cold chain infrastructure by companies such as Adani AgriFresh, Concorowned Fresh and Healthy Enterprises, Bharti Field Fresh, Dev Bhoomi and Suri Agro Fresh have been largely in Himachal Pradesh, Haryana and Punjab.

These companies have invested in cold chain facilities for fruits such as apples, oranges, grapes, litchi, pomegranates and vegetables like okra, baby corn and tomato.

PRIORITY SECTOR According to analyst estimates, the food market in India is slated to touch $310 billion in 2015.

The Government has declared food processing a priority sector, which has made it eligible for priority sector lending. It plans to set up one mega food park each for a cluster of three-four districts to provide a fillip to the food processing sector.

Such a move would include creation of infrastructure near the farm, transportation, logistics and centralised processing centres.

With factors such as convenience and affordability set to drive consumption, the industry could only look for stronger growth in the years ahead.

12

Udyami meet: Food processing industry in Bihar under focus

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he food processing industry in Bihar came under focus at the Udyami panchayat, at which the entrepreneurs aired their problems and chief minister Nitish Kumar, who headed a team of ministers and top officials, promised to address them. Promoters and representatives of rice and wheat flour mills, rural agri business centres, processing units of maize, fruits and vegetables, biscuit manufacturing and edible oil processing units attended the meeting.

The State Industrial Promotion Board (SIPB) has approved altogether 533 projects under food processing sector with the total projected cost of Rs 5942.74 crore. Of this, over Rs 762 crore has already been invested, said industry minister Renu Kumari Kushwaha after the meeting. She said it was pointed out at the meeting that no vegetable-based unit existed in the state.

The minister said some entrepreneurs had raised the issue of enhancing the subsidy for food processing units from Rs 5 crore to Rs 10 crore. The suggestion has been approved.

For the food parks, the maximum subsidy would be Rs 15 crore, the minister said. So far, she said, 149 units have been approved subsidy to the tune of Rs 352.71 crore, of

which Rs 123.11 crore has been disbursed. These 149 units will provide jobs to 13,000 people.

As many as 53 units are already operational, including that of Britannia, Anmol, Parle G and Amrapali. Of the 149 approved units, 52 are for rice mills, 15 for wheat milling, 10 of maize processing, seven of milk processing and four of biscuit manufacturing. There is also proposal for one food park.

The SIPB has also approved proposals for 28 new sugar mills at a projected cost of Rs 6507.86 crore, extension of 10 existing sugar mills for Rs 956.64 crore, establishment of ethanol plants at three existing sugar mills at an outlay of Rs 151 crore, said principal secretary, industry, Navin Verma.

The CM also directed for regular monitoring of the single window system and said this should be made more effective. Nitish stressed on branding of Bihar products and reiterated his dream that there should be at least one dish of Bihar on the plate of each Indian.

It has been proposed that all proposals for new industrial units with an outlay of up to Rs 50 crore be approved by the department and only proposals of over Rs 50 crore be sent for the consideration of the CM. As per the existing policy, proposals worth Rs 1 crore are sent to the CM by the SIPB.

Food processing centre for RINPAS female patients

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food processing centre for female patients with a view to make them self-reliant was launched in early December at Ranchi Institute of Neuro Psychiatry and Applied

Sciences (RINPAS).

RINPAS director Amul Ranjan said, "We have launched this programme in early December so that female patients are able to earn a livelihood for themselves when they leave the institute. By this, the perception of the society will also change towards such patients. Earlier we had launched this programme at a small scale but this time we have planned it more professionally."

A few days ago, the female patients got training in food

processing atBirsa Agricultural University. "We have lots of trees like mango, tamarind and litchi on our premises which can be utilized for making pickles and jams. Earlier the inmates made three quintals of mango pickles which made us hopeful that they can also be given professional training. This time, they will learn packaging after which they will receive a training certificate. All this is part of the rehabilitation programme for the patients," said Ranjan.

On some future plans, the director said they were in talks with the government to coordinate in supplying the products made by the female patients. "We would like to negotiate with the government on the products being supplied initially at the Sadar hospital and the Rajendra Institute of Medical Sceinces. Later it can be supplied elsewhere with the help of the government," he said.

Beverages & Food Processing Times-Jan-II-2013

News

13

Vegetarians developing a taste for meat T

he fast-growing Indian middle class now consists of around 300 million people, who model their new consumer lifestyle on the West. As a result, vegetarianism is falling out of favor.

animal, and it's forbidden to slaughter cows in India. Around 80 percent of the Indian population is Hindu, and it used to be the case that meat-eaters were regarded as uncivilized barbarians.

says her parents make sure she doesn't eat any animal products at all. "Sometimes it's difficult if I'm invited to parties, because a lot of cakes contain eggs, and then I do kind of have to eat it," she says.

It sounds counterintuitive: India, the land of vegetarians, is registering a rapid rise in meat consumption.

Statistics show that 40 percent of Indians don't eat meat - more than in any other country in the world.

Mahatma Gandhi, the political and spiritual father of Indian independence, was also a strict vegetarian. For him, the renunciation of all forms of violence - the cornerstone of his teachings - began at the table, with the food we choose to eat.

Clever advertising

Nonetheless, over the past ten years the amount of meat eaten in India has more than doubled. In 2009 it reached around 5.5 kilograms (12 pounds) per head, according to the World Food Program. That's still very little in comparison with Germany, where 61 kilograms of beef, pork and poultry are consumed per person per year.

Meat as a status symbol Fast-food chains with big neon signs are springing up all over the place in every city in India. Young people find them particularly enticing, and at the weekends the restaurants are full to bursting. In the big metropolises like Delhi, Mumbai, Chennai or Kolkata they're very popular with families, who like to gather over burgers, fries and Coke at McDonalds, or with a box of deep-fried breaded chicken nuggets at Kentucky Fried Chicken.

Dr. Sanjay Sanadhya, a diabetes expert from New Delhi, views the trend with skepticism. "People in India are just imitating the Western lifestyle," he says. "Overall, we're seeing them become distanced from their own cultural traditions. Added to that, you have factors like globalization and growing mobility, with people traveling more and more often to the West."

Wanting to conform Many in the Indian middle class, and especially the younger generation, equate meat-eating with a cosmopolitan attitude and a certain level of education. It's also seen as a sign of affluence, as meat dishes are more expensive than vegetarian food.

Jaspreet Singh, a young student, has always eaten meat and fish. "I make sure that I eat enough protein. I eat chicken, lamb and fish. My body and my figure are very important to me," he says, added that his generation wants to try everything.

"If you limit your interests, you're limiting your life. Even if I don't like everything, or don't like the taste, I still want to try everything, especially where food and drink are concerned."

Jaspreet's fellow student Neha Chauhan thinks of it as a need to conform. She herself is a vegetarian, but her sister and father eat meat. "My sister travels a lot," she explains. "She has to conform. I haven't had to do that yet, so I can make my own decisions. But if I had to live in a different social environment, maybe I'd conform as well and start eating meat."

Religious taboo For a very long time, many people in Indian respected the religious taboos on eating meat. Centuriesold Hindu texts extol the virtues of forgoing meat. Devout Hindus believe that the cow is a holy

Kirti Sharma, a young woman from New Delhi in her early twenties, feels the same way. But she admits that fewer and fewer people of her generation do. "I believe it's much better to be a vegetarian," she says.

"Because slaughtering animals, killing other living creatures, can't be good." Sharma says that according to the Hindu caste system she is a Brahmin, and that Brahmins are not allowed to eat meat. She

Other religious groups in India, such as the Jains, are not only strict

vegetarians, they also don't eat vegetables that grow under the earth, such as potatoes, onions, or carrots, because living creatures might be killed when they are

pulled out of the ground. Orthodox Jains often wear a thin mouth guard to prevent them from swallowing an insect by mistake. Muslims, who make up around 13 percent of the Indian population, are only forbidden to eat pork.

No direct link has been established between disease and the numbers of Indians now eating poultry, but the general shift towards an unhealthier lifestyle, particularly among the urban population, is believed to be increasing the risks.

Big fast-food chains like McDonald's have adapted to the Indian market. The American company, which has been present in India since 1996, doesn't serve beef burgers there. Instead, it offers the so-called "Chicken Maharajah Burger," which, according to the adverts, will make anyone eating it feel like a maharajah. Clever marketing using Bollywood and cricket stars is presumably one of the reasons why more and more people all over India are eating meat and fast-food.

Dr Sanjay Sanadhya, the diabetes expert, warns that the increase in the amount of sugar and fat people are eating, along with the fact that they are taking less and less exercise, means health problems are inevitable. "We're seeing more and more of the so-called 'lifestyle diseases': heart and circulation problems, high blood pressure, obesity, diabetes, strokes. Over the last three decades the numbers have shot up. And I can predict that the situation will continue to get worse." The people of India's growing middle class, whose wellpaid jobs mean they can afford to employ maids and drivers, are the most affected.

New problems But the growing consumption of meat brings with it new problems.

Beverages & Food Processing Times-Jan-II-2013

International News

FDA proposes new food safety rules for imports

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he US Food and Drug Administration (FDA) has proposed two new food safety rules aimed at preventing foodborne illness that could impact food producers exporting to the US. The first proposed rule would require makers of food to be sold in the United States - whether produced at a foreign or domestic facility - to develop a formal plan for preventing their food products from causing foodborne illness.

This rule would also require a formal plan for correcting any problems that may arise.

The FDA is proposing that many food manufacturers be in compliance with the new preventive controls rules one year after the final rules are published in the Federal Register. However, small businesses would be given additional time to comply.

Additional rules soon to follow include new responsibilities for importers to verify that food products grown or processed overseas are as safe as domestically produced food and accreditation standards to strengthen the quality of third-party food safety audits overseas. Approximately 15% of the food consumed in the US is imported, with much higher proportions in certain higher-risk categories such as produce.

The FDA will also propose a preventive controls rule for animal food facilities, similar to the preventive controls rule proposed for human food.

The proposed rules implement the FDA Food Safety Modernization Act (FSMA). The rules are part of an integrated reform effort that focuses on prevention and addresses the safety of foods produced

domestically and imported foods, with additional rules to be published in the near future.

“The FDA Food Safety Modernization Act is a commonsense law that shifts the food safety focus from reactive to preventive,” said Health and Human Services Secretary Kathleen Sebelius. “With the support of industry, consumer groups and the bipartisan leadership in Congress, we are establishing a science-based, flexible system to better prevent foodborne illness and protect American families.”

The second rule relates to the production and harvesting of produce on farms in the US. The FDA is encouraging comment on and review of the proposed rules; however, this is only open to American citizens.

Microsphere breakthrough means safer food

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creening chicken and other foods for bacteria will in future be faster and more effective thanks to breakthrough nanobiotechnology research.

Scientists from the University of Queensland (UQ) and the Department of Agriculture, Fisheries and Forestry (DAFF) have developed new technology that enables DNA amplification on 'microspheres' to rapidly detect and identify large numbers of different bacteria at the same time.

Authorities estimate that there are around 5.4 million cases of foodborne gastroenteritis in Australia every year. Of these cases, around 200,000 are associated with Campylobacter jejuni and Campylobacter coli.

“We hope to use this new technology to be able to detect and type C. jejuni/coli,” said Professor Ross Barnard, Director of the Biotechnology Program at UQ's School of Chemistry & Molecular

Biosciences.

“These quick-identification techniques can underpin relevant and sustainable programs to further improve food safety.The infectious dose for C. jejuni/coli can be very low - around 500 organisms. This means that sensitive, specific and rapid techniques are particularly important for this organism.”

While testing methods do exist, they are generally slow and not highly effective, Barnard said, so many scientists have turned their focus to leveraging existing 'microsphere' technology to a new level.

“After five years, we are now able to extend and develop the platform in ways that haven't been done before,” Professor Barnard said.

“We will now be able to carry out many typing reactions at once by doing a very large number of DNA amplification reactions at the same time on the surface of the microspheres.”

The discovery is the result of five years' intensive research. The continuing research will be sponsored by the Poultry Cooperative Research Centre and carried out by UQ PhD student Liang Fang, alongside Dr Pat Blackall of theQueensland Alliance for Agriculture and Food Innovation and DAFF's Jillian Templeton.

“This is just the beginning. Because this testing is based on a platform technology, it can be applied in many different ways such as mutation screening in plant, animal and human genomes, as well as for applications in the realm of infectious diseases,” said Professor Barnard.

The discovery was featured on the front cover of Analytical Biochemistry and the researchers have been invited to present the work at the Luminex International Diagnostics Forum in Monaco.

Ecolabelling growth to continue in 2013

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he number of ecolabels in the food industry will continue to increase in 2013, but the mushrooming

number of ecolabels could have adverse implications, according to Organic Monitor.

Organic products comprise the bulk of the estimated US$75 million ecolabelled food and drink market, Organic Monitor says.

Most sales are from Europe and North America and have legally protected organic logos. However, many new organic labels are being introduced in Asia, Latin America and other regions.

The lack of harmonisation between these standards is leading to multiple certifications and an exponential rise in organic

ecolabels. More than 84 countries have introduced national standards for organic products, with most having separate organic logos.

Once united by Fairtrade International (FLO), the global fair-trade movement is fragmenting, with a number of new fairtrade schemes being launched. Although the FLO Fair Trade mark is the most recognised, it is no longer the only identification label for certified fair-trade products.

Rainforest Alliance and UTZ Certified have well-established ecolabels for agricultural commodities such as coffee, tea and cocoa. However, new schemes are gaining popularity for such commodities, including Bird Friendly Coffeeand Starbucks' Coffee and Farmer Equity (CAFÉ) practices. Ecolabels are also becoming visible in other product categories, such as the Marine Stewardship Council for sustainable seafood and Certified Humane for meat products.

Growing consumer awareness of food production methods and

sustainability issues has been responsible for the rise of ecolabels in the food industry.

Organic Monitor says a concern is that the proliferating number and types of ecolabels may mean that food producers could be discouraged to adopt ecolabels because of the growing disparity between standards and multiple certification costs.

A larger concern is the effect on consumers: how can consumers distinguish between the growing number of logos and seals of organic/fair-trade products, as well as differentiate them between other ecolabels? With most ecolabels representing some ethical or sustainability attributes, a wider question is whether a new umbrella ecolabel will eventually emerge and integrate existing ones.

Organic Monitor will present its latest findings on the global market for ecolabelled food and drink at the upcomingSustainable Foods Summit in San Francisco on 22 and 23 January 2013. The latest market data on the organic, fair trade and ecolabelled products market will be presented, as well as future growth projections.

14

Dubai gets mobile fruit and vegetable shop

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ruit and vegetable consumers in Dubai will soon be able to purchase their produce from a mobile grocery shop. The UAE company, Allfreshco, is unveiling the fresh2door mobile shop this month. Customers will be able to

this unique concept and got the mobile shop custom-made in Europe."

The temperature-controlled unit has several shelves stacked with fresh produce. Much like the supermarket, the prices are clearly indicated. Customers can pay either cash or through credit card. Sales staff will be at hand to assist them.

Mkadmini said the mobile shop will turn up at a customer's door within hours of their making a call. “The best thing about it is that there is no minimum order restriction,” said Mkadmini.

purchase from a choice of between 80 and 90 vegetables.

"The idea is to give residents the option of picking fresh fruits and vegetables at their doorstep at no extra cost," said Ramzi Mkadmini from Allfreshco. "Our company owner Nevzat Esen came up with

He said the prices will be competitive since the company purchases directly from farmers and growers which enables it to provide the service without any additional costs.

As the concept grows to cover all areas of Dubai, the company plans to extend its services to neighbouring emirates as well.

Chicago Energy Drink Ban? Ed Burke Wants To Curb High Caffeine Beverages For Adults

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n a City Council meeting,Chicago's most powerful Alderman, Ed Burke (14th) proposed an ordinance that would nix "highly caffeinated" energy drinks for everyone in Chicago, according to the Tribune.

In Burke's crosshairs are popular drinks like Monster Energy Drink, Full Throttle and 5-Hour Energy, reports NBC Chicago.

Unlike his fellow Ald. George Cardenas' (12th) Nov. proposal to ban the sale of the controversial beverages to anyone under 21, Burke's ordinance introduced would bring drink sales and distribution in Chicago to a screeching halt — and would be a blanket ban for everyone, not just minors.

The Sun-Times called Burke's measure a "surprise crackdown" on

the drinks that have been previously linked to deaths, in the cases of 5Hour Energy and Monster.

The ordinance states “No person shall sell, give away, barter, exchange or otherwise furnish any energy drink,”reports the SunTimes. Here, an energy drink is defined as “a canned or bottled beverage which contains an amount of caffeine exceeding or equal to 180 milligrams-per-container and containing Taurine or Guarana" — and scofflaws would face fines of $100 to $500 per offense.

WIthin the parameters of the ordinance, the ban would really be targeting drink size; a standard 8.4ounce can of Red Bull or a 16ounce can of Monster would still be in play, but the 24-ounce can of Monster would not.

Pakistan calls for free kinnow access to Indonesia

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Quota has recently been introduced governing the amount of kinnow exports from Pakistan that can be accepted in Indonesia.

The Pakistan Citrus Fruits and Persimmons Processor's Association has written a letter to the Indonesian Ambassador to Pakistan, highlighting the industry's concern over the matter.

The letter makes mention of the fact that Indonesia has enjoyed free access to the Pakistan market for many items, including palm oil, for the past six years. As part of the Preferential Trade Agreement covering this, Pakistan expected unhindered market access for its citrus export. However, as of last month, Indonesian importers are being issued with monthly quotas dictating volumes of kinnow that can be brought into the country.

The letter also brings to the fore Pakistani fresh produce industry concerns over the barring of entry to the Port of Jakarta. The closure of the port to fresh produce shipments was hotly debated last year when it was announced that all exports would have to enter via other ports.

Negotiations have since taken place and the port is open again to Australia and the US, but not to Pakistan.

This means that all Pakistani produce exports to the country must instead go via Surabaya, from where it is shipped over land at an additional cost of $2500, according to the association.

The letter was signed by the Association President, Rana Muhammag Sadiq and copied to various governmental bodies of both nations.

Beverages & Food Processing Times-Jan-II-2013

International News

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German firms eye Kenya's food processing sector Private label campaigns reducing ·Kenya's exports to Germany are mainly coffee beans, tea leaves, an horticultural crops which fetched Sh7.6 billion in 2011, dropping from Sh7.7 billion the previous year.

·The Germans scouting for investment opportunities are expected to forge partnership with local investors during the “Made in German Trade Fair” slated for Nairobi September 25-27.

But even as Kenya counts on its 50year friendship with Germany to boost inflow of foreign direct investment, a number of prospective investors have adopted a wait-and-see attitude as the country prepares to hold its historic General Election.

With the 2008 post-election chaos still etched on their minds, most investors are said to have opted to

put their plans on hold until

“We know many investors who had expressed interest in the country are planning to come after elections, but this will be too late, a whole quarter of the year gone,” said Pius Rotich, the marketing manager at the Kenya Investment Promotion.

“We keep telling them that elections will come and pass like any other calendar activity,” he added. While presidential contenders have pledged to compete peacefully, key

·German firms hope to raise earnings from Kenya by introducing new machinery and equipment including textile technology, security gadgets, and agricultural machinery.

A number of German firms are eyeing investment in Kenya's food processing segment in a move that could significantly raise the value of the country's exports.

Kenya's exports to Germany are mainly coffee beans, tea leaves, and horticultural crops which fetched Sh7.6 billion in 2011, dropping from Sh7.7 billion the previous year. “German firms are looking for investment opportunities in agriculture and food processing that will boost value addition in commodities with established markets,” said Ingo Badoreck, the representative of German Commerce and Industry in Nairobi.

The Germans scouting for investment opportunities are expected to forge partnership with local investors during the “Made in German Trade Fair” slated for Nairobi September 25-27.

The Germans are also interested in the textile sector, especially at the country's export processing zones where firms enjoy quota-free and duty-free access to the US market.

“We know Germany is strong industrially and hope to have some of its technology at the Export Processing Zones (EPZ),” said Jonathan Chifallu, the public relations manager at the EPZ Authority. On the import side, German firms hope to raise earnings from Kenya by introducing new machinery and equipment including textile technology, security gadgets, and agricultural machinery.

“The main aim of starting a trade fair here was to open up the market for German companies while also creating opportunity for Kenyan firms to get German contacts,” Mr Badoreck said the launch of the Made in Germany trade fair.

The fair comes hardly a year after the German Chamber of Commerce established a Nairobi unit to chart its foray into the Eastern Africa region.

Officials from the country, one of the top financiers of the East African Community integration, said Kenya was attractive as a business hub given its direct link to the region's free trade area (Comesa), EAC custom union and investment in cross-border infrastructure.

“We can only expect trade relations with Germany to deepen as Kenya sets up 47 counties which will definitely benefit from its (Germany') experience and technology,” said Joseph Kosure, head of the bilateral division at Kenya's Trade ministry.

after the March 4 polls, ignoring the government's pledge of continued political and economic stability.

investors cite the coming elections as one of the sources of uncertainty.

choice, says AFGC-Australia

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educing their overall product range as they aggressively promote their home brand products, the Australian Food and Grocery Council (AFGC) claims.

According to AFGC CEO Gary Dawson, research released by Coles reveals the extent of the fall in product choices on offer to consumers. The research, conducted

by Deloitte Access Economics, showed that Coles' product range dropped by 11% from mid-2010 to mid-2012, from 62,000 to 55,000 products.

“A loss of 7000 products from a supermarket's overall offering is a significant reduction in the range of choices available to consumers,” Dawson said.

“These figures confirm what shoppers report anecdotally - that they often can't find their favourite products on the shelves any more when they go to the major supermarkets.”

Dawson said Coles' latest campaign to promote its private label products indicates that this trend will continue.

“This is a classic Trojan horse tactic - disguising a longer run loss of choice for consumers,” Dawson said. “And as the range of choices drops, so does competition, raising the risk that in the longer run, the major supermarkets will have even more market power.

“The thousands of suppliers that make up Australia's $110 billion per annum food and grocery manufacturing industry rely heavily on the major supermarkets to get their products to consumers.

“Consumers who find their favourite products have disappeared from the supermarket shelves should raise it with the store manager and make their voices heard.”

Beverages & Food Processing Times-Jan-II-2013

Retail News

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‘Plans of individual firms to determine benefits of retail FDI'

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ilk giant Mother Dairy has a cautious view on the impact of the entry of foreign players into the multibrand retail sector in India.

“Foreign direct investment (FDI) in retail will best be understood when we start to hear or see of the individual plans of the retail companies,” says an official statement.

In this regard, the foreign players may well be following the lead of companies such as Mother Dairy Fruit & Vegetable Pvt Ltd, the horticulture division of Mother Dairy, in the arena.

and get a reasonable return for the investment he has made, that proposition is useless,” he says.

“The engagement with farmers so far has a direct market linkage, buying from the farmers, giving them more than the market price. That is how we have been associated with the farmers… We don't involve any intermediaries, but having said that, our market share in the

With respect to measures for reducing food wastage, Sahoo asserts, “We put our collection centres right at the farm level.

We pick it up using crates. In the general supply system, people usually sell them using jute sacks. But we deploy lakhs of crates and we have developed

Pradipta Sahoo, the Business Head of Mother Dairy Fruit & Vegetable Pvt Ltd, the horticulture division of the firm, says his company pioneered initiatives to establish direct market linkages for farmers, set up cold storage capacities and reduced food wastage in the country, though the proponents of FDI in multi-brand retail have argued this can only be achieved by foreign MNCs. “We understand farmers can be helped and given a direct value proposition if you establish a market linkage. No matter what you tell farmers in terms of improving technology or agricultural practices, he'll go for it. But at the end of the day, if he doesn't find a ready market where he can sell the produce

rampant in the rest of the market. In the process, we mitigate and almost eliminate the wastage and ensure food safety.”

What is more, “We have got our own captive cold stores in areas where we operate and in case we run short, we hire cold stores. For example, we store about 10,000 tonnes of potatoes every year in cold stores. For apples, we use cryo-cold stores, where temperatures are controlled, so the life is maintained.”

FROZEN VEGETABLES He points out that Mother Dairy is the market leader in the frozen vegetables business, with products such as green peas, American sweet corn, cauliflower and other products enjoying a market share of about 40 per cent.

whole system is very little ,” he adds, explaining that the share of organised retail in the fruits and vegetable market in India is less than 1 per cent.

FOOD WASTAGE

and promoted a concept of giving pre-ripened fruits to consumers that can be ripened at home. So you get products that are safe, because there is none of the carbide ripening that is

“This is a concept that Mother Dairy pioneered in the country to increase the shelf-life of an otherwise perishable product to 18 months. We embarked on an aggressive campaign to promote the concept. Since then, the industry has evolved, but it was primarily Mother Dairy that developed the concept and promoted it both on the

consumer and farmer side,” he says.

But there is scope for more participation in these activities, acknowledges Sahoo.

“Whatever we have as of today is very little looking at the kind of size and fruits and vegetables we are producing. We produce almost 210 million tonnes of fruits and vegetables put together and the cold stores use is skewed toward potatoes.”

At the same time, Sahoo contests the estimate that about 30-40 per cent of India's food output goes waste. “The wastage we are talking about in India of about 30 per cent is mainly the perception of people at a certain strata. Whatever you see as wastage, you will find some consumer to take it...

Agricultural scientists and economists really need to ascertain how much the actual wastage is. We need to aggregate the figure and say, this is the actual wastage,” he says.

“All the wastage does not go into the segment that can be called an economic loss,” adds Sahoo.

Beverages & Food Processing Times-Jan-II-2013

News

India may finally get to savour Ikea meat balls open 15 more stores.

The FIPB has approved a total of 66 proposals pertaining to singlebrand retailing since 2006.

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he finance ministry seems to be finally finding its priorities right. The hunger for foreign direct investment is paramount, especially when the country is staring at a wide current account deficit.

The government's resolve is clear, with Commerce Minister Anand Sharma saying Foreign Investment Promotion Board's (FIPB) formal approval for the global business model of Ikea is underway. After all, the Swedish furniture giant's proposal is to invest 1.5 billion euros or Rs 10,500 crore in India.

Of its investment proposal, a dithering FIPB has given approval for only Rs 4,200 crore, as it disallowed selling most of the products and setting up of in-store cafes. The company had approached Department of Industrial Policy and Promotion (DIPP) seeking a review of this decision.

There were speculation that Ikea may even decide not to invest in India at all, if it is not allowed to follow its global model.

Minister Sharma put to rest these concerns as he batted for allowing Ikea's global model which includes cafeterias inside their stores.

The DIPP under Sharma has already forwarded a request to the Foreign Investment Promotion Board (FIPB) in the Finance Ministry for reviewing its November 20 decision giving part approval to Ikea.

The FIPB has approved a total of 66 proposals pertaining to singlebrand retailing since 2006.

Reuters The proposal will come up before FIPB on December 31.

The Finance Ministry will “review the request of DIPP” to allow Ikea to come up in India with its global model.

“The government has taken note of the representation that Ikea has made in this regard and a favourable view has been taken so that we accept their global model and the process of FIPB's formal approval is currently underway,” Mr Sharma told reporters here.

He said Ikea has a global model as a single brand retailer and India has a clear definition in this

regard.

“Frankly speaking we see no reason why their global model, once we have allowed 100 per cent FDI in single brand retail, has to be changed in any manner,” the Minister said.

Sources said that besides furniture, the Scandinavian firm in its original application had sought government approval to sell items such as textile products, consumer electronics, leather products, lifestyle products, and food and beverages to be served at its restaurants and cafe.

The company had envisaged an investment of Rs 10,500 crore in single brand retail trading, after India allowed 100 per cent FDI in the segment.

Ikea, the world's largest furniture retailer, operates 336 stores in 44 countries. It plans to set up 10 furnishing and homeware stores as well as allied infrastructure over 10 years in India.

Subsequently, it plans to

Meanwhile, the Finance Ministry said the FIPB's approval to Ikea to invest Rs 4,200 crore has been recommended for consideration of Cabinet Committee on Economic Affairs (CCEA). Even after FIPB clearance, FDI proposals of over Rs 1,200 crore have to be approved by the CCEA.

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Beverages & Food Processing Times-Jan-II-2013

News

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Packaging plays vital role Genes may drive us to (soft) drink in reducing food waste

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ackaging could play a vital role in reducing food waste, according to LINPAC Packaging's Director Alan Davey.

Following the release of a report from the Institution of Mechanical Engineers that shows half of the world's food is wasted, Davey said that retailers, food manufacturers and the packaging industry should work together to tackle the problem.

“It would not be wrong to say that if packaging was invented today it would be regarded as one of the greatest green technologies due to its protective and preserving qualities,” Davey said.

“Imagine a world without packaging; the manufacture, transport, distribution and consumption of virtually every consumer good would be impossible. Quality packaging can

significantly reduce waste across the entire supply chain by giving food a longer shelf life and ensures food can be transported around the world safely and securely.”

According to Davey, food packaging companies are working smarter than ever before to develop packaging that is lighter, more sustainable and more recyclable but still fit for purpose in terms of protecting, preserving and presenting food to a high standard.

The increase in singleperson households also has an impact on pack design, Davey said. Research carried out byDefra, the UK Department for Environment, Food and Rural Affairs, shows single-person households are the worst offenders when it comes to food waste, throwing away 22% of the food they buy.

In response to this, LINPAC has developed a split pack range for fresh and cooked meats, which allows contents to be split into

portion-sized compartments. This allows consumers to store food in the fridge for longer without compromising food safety.

“While food waste remains such a major problem for the environment, it is essential for all the links in the food supply chain to play their part in solving the problem,” Davey said.

There could be something in the phrase, “I'm not fat, I'm just bigboned”. Endocrinologists from the Garvan Institute of Medical Research have applauded a study

“Food waste and sustainable packaging is very much at the top of the agenda and we are committed to developing packaging solutions which are innovative, groundbreaking and capable of addressing the challenges of the future,” said Davey.

Kamani’s Range of Products

“Genes not only drive people to eat more, they also predispose at-risk people to gain more weight with calorie overconsumption. It's a double whammy.”

The NEJM article in question found that, in three large groups of men and women, those with more obesity genes tended to drink more soft drink and have a greater BMI.

“At LINPAC Packaging, we are acutely aware of our role in helping consumers minimise waste by designing innovative packaging solutions which enable them to only select the food they want to use and in maximising the shelf life of stored products in their homes.”

LINPAC has also teamed up with Addmaster to develop a range of trays and films with antimicrobial technology to reduce bacteria growth on the outer packaging of fresh meat. The technology helps reduce spoilage and increase the shelf life of food by inhibiting the growth of bacteria, moulds and yeast, as well as reducing the risk of pathogens like E. coli, Salmonella, Listeria and Campylobacter.

them to do so,” said Associate Professor Greenfield.

that shows a direct correlation between consumption of sugary soft drinks, obesity and genetic predisposition to weight gain.

Associate Professor Jerry Greenfield, Professor Katherine Samaras and Professor Lesley Campbell wrote a letter to the editor of the New England Journal of Medicine (NEJM) to commend the study and underline the degree to which appetite is genetically determined, rather than being just a lifestyle choice.

“Our point is that people are consuming more calories because their genes are driving

The Garvan researchers believe that public health policy could be better targeted if policy makers understood that, for some people, appetite is not something they can control.

“Policy should reflect the scientific basis of food intake in other words, people who eat too much and put on weight are not just over-consuming because they are greedy, they actually have a very strong drive to eat,” Greenfield said.

“Understanding the genes that promote obesity may or may not allow us to develop therapies. At the very least it tells us where, and at whom, to target interventions.”

Beverages & Food Processing Times-Jan-II-2013

News

HRS PSL showcases a range of Innovative and Energy Efficient Heat Transfer Solutions at Chemtech, 2013

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RS Process Systems Ltd. (HRS PSL), part of HRS Group, UK one of India's leading heat transfer specialist participated in the largest worldclass event in Indian chemical industry, Chemtech which was held in Mumbai from January 15 – 18, 2013.

HRS PSL showcased a wide range of innovative products during this event like: HRS Hot Water Generation Systems based on ECOFLUX* Corrugated Tube Heat Exchangers (CTHE) and Plate Heat Exchangers (PHE), which have a prime application in chemical and pharma as well as HVAC, hotel, textile food and brewery industries. HRS heat transfer innovations are the

preferred choice of major chemical process companies in key applications such as condensers, vent condensers, reboilers, water coolers, heaters, oil coolers, heat recovery units etc.HRS PSL has expertise in Exotic Materials; like Alloy 20, Haste alloy, Titanium and Nickel alloy based on special applications used in chemical and pharma processing.

'Chem Tech is a good platform to reach a wider segment of our target audience. This expo allowed us to share valuable information about our cost effective heat transfer solutions. HRS is an innovative technology driven company that focuses not just on heat exchanger fabrication but on application engineering as well,� said Mr. V

Gokuldas, Managing Director, HRS Process Systems Limited.

HRS has over a decade of experience in supplying state-ofthe-art solutions for chemical and pharma industry. In addition to this, HRS PSL has supplied more than 8000 heat exchangers worth over $ 16 million to the chemical process industry in less than a decade.

Punjab to waive market fees for fruit and vegetables

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aking a step forward in agriculture marketing reforms, Punjab may soon waive off market fees on fruits and vegetables, a move which iit is hoped, will benefit growers and consumers. The board of directors of the state agriculture marketing board has approved the abolition

of market fees and has forwarded the proposal to the financial commissioner.

Currently, market fees are being charged at 2 per cent on the wholesale price of fruits and vegetables. In order to compensate, the agriculture marketing board is contemplating

to introduce usage charges (like charges for usage of platform, electricity, water, sewerage, display etc.) per annum on traders.

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Beverages & Food Processing Times-Jan-II-2013

Back Page

Processed food products export ban lifted

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abinet committee on economic affairs, lifted ban on exports of processed foods and value added agricultural products. These include wheat of

meslin flour, cereal flours, groats, meal pellets and grains, milk products including casein and its products, butter and other fat derivatives from milk and dairy spread, cheese and curd and value added products of onion and peanut butter.

The move will give a push to India's sagging merchandise exports and is estimated to add $5 billion to exports over the next two year with West Asia identified as a key market for processed food

from India. Besides, it will help Indian exporters to move up the value chain as well as create additional employment in the country.

At present, India's major agricultural exports comprises of raw or primary produce and unprocessed or semi processed agriculture commodities, which are susceptible to restrictions owing to various reasons such as bad weather conditions, deficient or delayed rainfall and food security issues.

“The exports of processed and value added products constitute a very miniscule portion of the overall exports, and hence their

continuation would not affect the availability in the domestic market owing to very marginal processing capacity in the country. Always open policy of this sector will not only help reduce wastage of perishable products but also encourage value addition,” a statement from CCEA said.

For long, there has been no consistent policy on exports of agricultural products in India, as a result of which the overseas buyers were reluctant to import from India to meet their domestic requirement year-after-year. Even for the raw or primary agricultural products, India has been adopting switch-on and switch-off approach citing issues of domestic food security.

Industry experts feel that decision will now bring clarity on India's stand on exports of processed food and agricultural products and help generate additional exports in coming years.

“The government's decision to finally open up exports of processed food will add to per unit realisation for our exporters, and we will see more investments coming into the sector, to cater to overseas markets now,” Ajay Sahai, director general of the Federation of Indian Export Organisations, added.

Consulting Editor Basma Hussain

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Food processing department to start betel development scheme-UP

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ood processing dept to start betel development scheme: Department of food processing and horticulture has started a betel development scheme in Lucknow, informs district horticulture officer, Lucknow.

The farmers who are interested in betel farming in Lucknow district may submit their application forms in the office of district horticulture officer, Lucknow directly or through horticulture employees appointed at development block level in the prescribed format along with an affidavit.

Meanwhile, minister for urban

development and minority welfare Mohd Azam Khan said that the government has taken a decision to run a new scheme for repairing broken roads in minority dominated and slum areas of the state.

He said that under this scheme, facilities like construction of CC roads, interlocking, drinking water, road lights etc would be made available in these areas. He said that urban employment department and poverty alleviation programme department have made arrangements of Rs100 crore in the current financial year for this scheme.

Maharashtra to promote food processing sector

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he state government has set up a mechanism for promoting food processing sector under National Food Processing Programme (NFPP).

The additional chief secretary (agriculture) has been empowered to nominate a secretary level officer as the coordinator. The managing director of Agricultural Industries Development Corporation Limited (AIDCL) will appoint the programme director. The AIDCL will be the nodal agency for

implementing NFPP in the state.

In the second phase the state food processing development council will be set under the chairmanship of agriculture minister Radhakrishna Vikhe-Patil. An interdepartmental committee will be set up under the chief secretary to coordinate the projects under NFPP. Committees will be set at revenue division level and district level too.

The set up of these committees will be announced later.