Beverages & Food Processing Times by Advance Info Media

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Pranab Mukherjee says India needs another Green Revolution

ndia needs another Green Revolution, said President Pranab Mukherjee after unveiling the

much-awaited agriculture road map of Bihar. “There is a need for another Green Revolution in the country, and the eastern parts of the country including Bihar will play a vital role in it,” he said in Patna Mukherjee, who arrived here on a two-day visit of Bihar, was received by Chief Minister Nitish Kumar at the Patna airport.

The five-year agriculture road map covers 2012-17 with an investment of Rs 1.52 lakh crore. It aims at raising agri-growth to a minimum of 7 percent per year, said Nitish Kumar. Nitish Kumar said Bihar would prepare another agriculture road map for the next five years. “We hope that private investors will invest in the agriculture sector in the state.” The road map is the first of its kind in the country. It focuses on food processing, food preservation, fisheries and animal husbandry, the chief minister said. According to the road map, 24 crore trees will be planted in the next five years to increase the forest cover of the state from 9 to 15 percent. 'Vriksha Palaks', who will be selected

from the poorest of the poor, will look after the trees and in return get the benefits of the tree produce. The road map also stressed interlinking of rivers and irrigation schemes. It has fixed a target for cold storage capacity. It is Mukherjee's first visit to the state after becoming the president. Mukherjee will also attend the Darbhanga-based Lalit Narayan Mithila University's fourth convocation. In his speech, Nitish Kumar demanded that Bihar be given a special category status. “It is high time Bihar should be accorded a special category status for its development. I request President Mukherjee to help the people of the state in this regard,” he said.

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Beverages & Food Processing Times-Sep-II-2012

DATAMAN 100/200 BARCODE READERS NOW FEATURE 2DMAX+ TECHNOLOGY

ognex Corporation, the global leader in Industrial ID, has integrated advanced 2DMax+™ code reading software technology into the compact DataMan®100 and 200 fixed-mount barcode readers. With 2DMax+, the readers can now identify and decode severely damaged or poorly

marked 2-D matrix codes. Most importantly, the barcode readers are unaffected by variations in lighting, marking method, code quality or surface finish. “2DMax+ is a proven breakthrough in 2D decoding and is based on our existing patented, industry-leading software,” says Carl Gerst, Vice President and Business Unit Manager, ID Products. He continues, “Following the success of 2DMax+ in the advanced DataMan 300 and 500 series of fixed position barcode readers, we are now delivering it to end users who need a smaller form factor. This functionality is especially helpful in the pharmaceutical, food, beverage and consumer goods packaging sectors. Barcode reading in these industries are

often challenging due to poor print quality, varying part sizes, curved surfaces and labels damaged by environmental factors or supply chain activity. 2DMax+ helps these users achieve the highest reading yields and maximize throughput.” Though Data Matrix codes have built-in error correction, “no-reads” can still occur when codes are incomplete. 2DMax+ can read Data Matrix codes even when critical elements are missing. 2DMax+ can also locate and decode Data Matrix codes that are over exposed or underexposed, without requiring multiple retries. This improves throughput, speed and overall reliability. The DataMan 100 and 200 readers are exceptionally small with an industrialrated housing measuring just 23 x 42 x 64mm. The DataMan 200 series incorporates variable focus liquid lens technology for applications that require a larger depth of field or refocusing after a product changeover. The DataMan 200 models also support Ethernet connectivity with a wide range of industrial protocols, for real-time part tracking, image archiving, data transfer and seamless integration with plant controllers and information networks. The DataMan 100 series provides USB and RS-232 communication options. The 2DMax+ algorithm is now shipping with all DataMan 100X and 200X models as well as the DataMan 300X and 500X readers. Visit www.cognex.com/200 to learn more.

India's organic foods market growing at over 20%

he market for Organic food products in India is growing at 20-22 per cent a year, a top official from private sector Yes Bank said. "The market for organic foods is growing at an compound annual growth rate (CAGR) of 20-22 per cent," Yes Bank's Country Head, Food and Agribusiness, Girish Aivalli told. With rising spending power of the growing middle class in the country and increased awareness towards chemical free food, organic and natural products sector will grow significantly in the coming years, he added. Yes Bank also released a report, 'Indian Organic Foods Market' at one-day conference, Jaivik India, on proliferation of organic and natural products in the Indian market. The report said the global organic food and beverages market is expected to grow from USD 57.2 billion in 2010 to USD 104.5 billion by 2015 with a CAGR of 12.8 per cent. Europe contributed to the largest share of the organic foods market in 2010 with revenue of USD 27.8 billion, the report added. The Asia-Pacific organic food market had a

total revenue of USD 3.5 billion in 2010 and had a CAGR of 16.2 per cent between 2006-2010, it said. On India, the report said that the market for organic food including exports is currently valued at Rs 1,000 crore. The report added that the country produced around 3.88 million tonnes of certified organic products, that includes basmati, pulses, tea, coffee, spices and oilseeds. Organic foods industry presently is metrobased, with about 95 per cent of the brands existing in top 10 metros like Delhi (NCR), Kolkata, Mumbai, Pune, Chennai, Bengaluru and other tier II cities, it said. According to government data, area under organic farming had risen to 1.08 million hectares. In addition, 3.40 million hectares is wild forest harvest collection area. The states doing well in organic farming are Madhya Pradesh (4.40 lakh hectares), Maharashtra (1.50 lakh hectares) and Orissa (95,000 hectares), the data added. Among crops cotton is the single largest crop accounting for nearly 40 per cent of total area followed by rice, pulses, oilseeds and spices. India is the largest organic cotton grower in world, and accounts for 50 per cent share of total world organic cotton production, it said.

News

Vegetable, fruit production on the rise

roduction of vegetables and fruits is on the rise. The production of vegetables and fruits in the country is estimated to be around 1,506 lakh tonne and 753 lakh tonne, respectively, during 2011-12. As compared to this, the production in the previous year (2010-11) was 1,466 lakh tonne and 749 lakh tonne, according to information provided by minister of state for agriculture and food

processing industries. The government of India has been implementing horticulture mission for North East and Himalayan States and National Horticulture Mission in the

remaining states of the country for enhancing production and productivity of horticulture crops including fruits and vegetables. Under these missions, assistance is provided for establishment of nurseries, seed production for vegetables, enhancing quality production and productivity of fruits and vegetables through area expansion, protected cultivation, canopy management, integrated nutrient and water management, integrated pest management, rejuvenation of senile orchards, mechanization and human resource development. The agriculture ministry is also implementing market intervention scheme for procurement of various horticultural commodities. The purpose of implementation of such a scheme is to protect the growers from making distress sales in the event of a bumper crop when there is glut in the market, causing prices to fall below economic levels/cost of production.

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Beverages & Food Processing Times-Sep-II-2012

Beverages News

Turning fruits to wine has immense economic potential: Experts

sing raw agricultural produce to make high-value consumer goods can help the Indian farmer when it comes to getting the right price for it, say several experts. With health consciousness and exposure to Western habits of fine dining, making wine from fruits is emerging as one such profitable venture.

industry called agro-tourism," said Sunil Mankikar, a progressive farmer who is a part of the Wine Club and the chairman of the sanstha. He believes in leading by example, so he has been carrying out the activities he advises

Jagdeesh Holkar underlined the potential of the business of wines. "There is immense potential in the Indian wine market for fruits other than grapes also," he said.

Nagpur Wine Lovers' Club along with Indo-Israel Krushi Vikas Sanstha state agriculture department, National Research Centre for Citrus, Maharashtra State Horticulture and state Medicinal Plants Board jointly organized a workshop for farmers attending their three-day seminar on agro processing to understand the art and economics of making wine out of the fruits they grow. Experts told about the example of grape growers from Western Maharashtra, whose fortunes have seen a turnaround after they took their produce to the wine makers, turning wine making into a profitable allied activity. "It is disturbing to see the number of youngsters flocking to liquor bars. Wine is a healthier alternative for these social drinkers. It also means economic growth for the farmers who set up wineries and partake in the growing

Phadnis also told the farmers how orange can be used for making highquality wines. Another winery owner from Nashik, Prabhakar Wagh believed that wine sells only if there are good sellers around. "My winery sells around one lakh litres of wine annually. Those with the right marketing skills end up selling all their produce," he said. PG Adsule, the director of National Research Centre for Grapes, agreed saying, "As of today, only 10ml per capita consumption of wine is recorded in India. However, with more awareness and more people turning to healthier alternatives to alcohol, this may grow up exponentially."

the other farmers to take up. Telling the farmers enthralling tales of how wine industry turned around the fortunes of grape owners from Nashik and its nearby villages, chairman of Indian Grape Processing Board

To prove this point, Akalpik Prabhune from Pune had brought along wines made from fruits like pineapples and strawberries that he is successfully marketing since a couple of years. Wine Lovers' Club founder Sharad

"Indian grapes have been found to make better quality wines than the ones from France," informed Yogesh Bhadane, wine making consultant for many wineries in India as well as France. "The soil quality here is far superior to that in the European countries, so the fruit and the wine made out of it are also better. We can make around 20 types of grape wines in the country. If more fruits were to be turned into wines, they could also help our indigenous wine industry scale new heights globally," he said.

Coca-Cola to relaunch RimZim of '80s

oca-Cola plans to relaunch RimZim, once a popular masala cola brand which it acquired from Ramesh Chuahan in the 1990s. Last year PepsiCo revived Duke's which was discontinued in 2004, and earlier this year Coca-Cola reintroduced Citra, a clear lime drink.

majors have been bringing in regional flavours to broaden their basket of offerings to consumers. "Till a few years back, the focus was on the power brands which were largely global.

have," said Harish Bijoor of Harish Bijoor Consults, a branding advisory firm. The masala soda category is estimated to be around Rs 500 crore with both

Coca-Cola plans to revive the RimZim brand in parts of north India and will give it a contemporary packaging, signalling the rising element of localization in the portfolios of the two big cola companies. The cola maker had attempted to revive the brand with a strong presence in Maharashtra a decade ago, but failed. In 1994, Chauhan sold his popular and home grown beverage brands, including Thums Up, Gold Spot, Limca, Maaza, Citra and RimZim, to Coca-Cola, out of which Thums Up, Maaza and Limca were retained by the world's largest cola maker while the others were junked. RimZim's is being relaunched in keeping with a brand study conducted by Coca-Cola that indicated a strong recall of the brand among consumers, a company official said. In the last one year, both the cola

Cola India, said, "The Indian market has a lot of growth potential and the opportunity in the packaged beverage segment is immense. Rimzim has a distinct Indian taste." India has emerged as one of the fastest growing markets for Coca-Cola and its CEO Muhtar Kent, on a recent India visit, announced an investment of $5 billion till 2020. Coca-Cola India has already piloted Citra and Crush as soft launches in very limited retail outlets. "Most of our old brands are back in the market. RimZim is perhaps the last remaining. We will see how they do in the market and then accordingly take them national," Mukherjee said.

These companies were following the global line which is rapidly changing now. India is a multi-taste oriented market where the more localization a brand does the bigger share it will

PepsiCo and Coca-Cola being the two big organized players in the space. RimZim used to be a popular brand in the 80s and 90s. Debabrata Mukherjee, VP, strategy and innovations at Coca-

PepsiCo, which acquired Duke & Sons from the Pandole family in 1995, reintroduced it in a retro avatar last year in Mumbai. "We have received a great response from consumers and retailers across Mumbai. With the addition of this new range of beverages to our vibrant portfolio, we look forward to further address pockets of opportunity and strengthen our regional presence," a PepsiCo India spokesperson said.

Beverages & Food Processing Times-Sep-II-2012

Health Report

Good Health: T C

onsidering some new superfood ingredients for your next product? We list some of the biggest superfood trends in vogue in 2010. Hardly a week goes by without an announcement telling consumers to eat a certain food to avoid cancer or heart disease, or live longer. Even statistics from the US, the home of fast-food, show a major decrease in soft drink and fast food sales. The food industry is a business like any other, and the more nutrients, vitamins and minerals forced into an everyday product, the better its chances of being on every office desk come the end of the week. Here we list some of the known, unknown and bizarre products to consider adding to food today to attract the more health-conscious buyer. Seaweed Seaweed has been used in Asian medicine for at least 3,000 years and a recent study by Newcastle University in the UK suggested it could be added to bread, biscuits and yogurt to reduce the fat absorbed by the body. Its nutritional value comes from the nutrients it assimilates from the oceans and the Earth's crust, resulting in it having one of the highest mineral concentrations of any food. It can regulate hormones, improve metabolism and make skin more youthful. It is also rumoured to be good for mental health. Purple Dulse seaweed is among the most popular as it avoids the fishy taste associated with some varieties. Products, such as crackers, sushi nori and dried seaweed are exported around the world by producers such as Chinese company Shantou Jiasheng and Saha Siam in Thailand. Wheatgrass Wheatgrass has been used in homeopathic medicine for some time now where it is noted for its acquired taste. It has high concentrations of chlorophyll, active enzymes and vitamins, and is noted for its strong anti-bacterial effect. Health-food enthusiasts claim it purifies the liver, increases heart function, improves digestion and it is even heralded by some as being a food that can help prevent and cure cancer. The more nutrients, vitamins and minerals forced into an everyday product, the better its chances of being popular.Among its more-obscure touted benefits are increased tolerance to radiation, removal of heavy metals from the body, and improving the

body's ability to deal with sores and ulcers. Wheatgrass is traditionally served as a drink but the powdered varieties are becoming more popular for use in smoothies and even guacamole. Fresh and juiced wheatgrass is widely used across the world, but so far the concept of other wheatgrass-based products such as smoothies and guacamole remain homemade, leaving a market open for the food industry. Spirulina Spirulina algae has been said to contain some of the highest concentration of

nutrients of any food, including between 60%-75% vegetable protein. It is rich in iron, magnesium, carotene and B vitamins, especially B-12, which is used in tablet form to combat heart disease and improve mental alertness. A recent study by the Dana Faber Cancer Institute and the Harvard Medical School showed it could be used to help fight influenza, mumps, and measles and might even inhibit HIV's transition into AIDS. Taken mainly in powder and tablet form, spirulina also acts as an appetite suppressant and is already being given to undernourished children in India by the World Health Organization (WHO).

It currently trails seaweed on supermarket shelves but the powdered variety is recommended for use from a smoothie ingredient to a crisp topping. Hemp Like seaweed, hemp has been used for medical reasons for centuries and has been a staple foodstuff in times of famine. In China today, you can still buy roasted hemp seeds in the cinema, in the same way you might eat popcorn. Containing omega 3 and 6, amino acids and complete protein, hemp seeds and oil are used by those that have a low

â&#x20AC;&#x201C; only to water â&#x20AC;&#x201C; purest liquid on the planet. High concentrations of calcium, potassium, magnesium and electrolytes essentially make it an isotonic sports drink in its own container. It must be pointed out this is coconut water, not the milk, meaning the benefits are lost in your Thai green curry. Statistics from the US, the home of fast-food, show a major decrease in soft drink and fast food sales. Its benefits are impressive and relatively unknown. Drunk regularly enough it reduces urinary problems such as strangury and polyuria, breaks up

fatty acid intake. It is especially beneficial to vegetarians and vegans, and has been proven to be very good for skin and hair, and can be used as a painkiller or to reduce anxiety. The seeds and oil are the most popular (legal) forms of hemp and can be used for salad dressings, mayonnaise or just eaten raw, and are currently produced by the likes of GranoVita and Manitoba. Their full business value, however, is yet to be exploited with very few ready-made products available to buy. Coconut water Arguably one of the most underrated superfoods, coconut water is the second

kidney stones and kills intestinal worms. It is even used to suppress vomiting in cases of typhoid and malaria, and due to this and its hydrating properties, is also touted as a hangover cure. Most impressively, coconut water has been used to replace plasma in blood transfusions and was regularly used during the Second World War instead of intravenous fluid. Vita Coca currently exports a variety of coconut water juices across the globe. Cacao This raw chocolate powder, normally seen as a percentage on the front of

Beverages & Food Processing Times-Sep-II-2012

Health Report

op Superfoods wrapper, contains epicatechin and is also high in magnesium and other key nutrients. Studies by the University of California and Harvard Medical School found members of a tribe who drank 40 cups a week reduced their chances of developing cancer, heart disease, diabetes or suffering a stroke to less than 10%. Of course the draw-back to this ingredient is the high calorie count and the need for high cacao content. As a product, high-cacao content chocolate bars and drinks are becoming more and more popular. Blueberries Like so many other foods mentioned here, blueberries have been used as a food source for centuries without their long-term health benefits being known. A study by the US Department of Agriculture discovered blueberries had the highest antioxidant levels in a study that compared 40 other fruits and vegetables. It has even been proven they protect against cancer, heart disease, Alzheimer's, arthritis, and could even combat aging and shortterm memory loss. The source of their power is anthocyanin, a natural dye present in their skin. Quinoa Used as long as 5,000 years ago by the Incas in South America, quinoa (pronounced keen-wah) is a gluten-free seed, high in protein, magnesium, manganese, copper and fibre. "Quinoa is a gluten-free seed, high in protein, magnesium, manganese, copper and fibre. â&#x20AC;&#x153;Acting as a prebiotic (good bacteria), quinoa has been used in preventing and treating artherosderosis, breast cancer, diabetes and insulin resistance. Quinoa is versatile and can be used in dishes ranging from warming winter soups to refreshing summer salads and takes less than 15 minutes to cook. Recent marketing strategies have turned to the breakfast market with quinoa flakes being promoted as an alternative to oatmeal. Biona currently produces a rye and quinoa bread while Suma is one of the most noted exporters of flaked quinoa. Goji berries Grown in China, Mongolia and Tibet, goji berries have been harvested by herbalists for 6,000 years. Normally served dried and resembling a red raisin, goji berries, or wolfberries, are rich in antioxidants, carotenoids, beta carotene and zeaxanthin. Traditionally, the berries have been used to protect the liver, improve

eyesight, strengthen legs, benefit the immune system, and boost sexual function and fertility. A 1994 study in China also found it was beneficial to those undergoing treatment for cancer.

The dried berries are more commonly found as a supplement and the juice is still a lot more common in Asia than it is in Europe or the US. Some companies, such as Alliance Himalayan and Optima, have begun to make the product available over the internet. Positives of superfoods with You have become what you put inside your body. That is so correct. For instance, amino acids absorbed on account of eating meat can be utilized by our bodies in repairing muscles. Consuming the proper foods is consequently crucial. Individuals currently are consuming more 'superfoods' as these foods are shown to enhance your health and give you lots of necessary nutrients. But what exactly are superfoods? Well, there are a couple of sorts of foods, the good and also the poor. Bad foods have empty calories which will just make you fat if eaten in excess and good foods which have calories which will provide lots of energy including antioxidants to help you decrease illness and disease. Superfoods, as you'll have guessed, come under high-quality fare. Malnourishment is the ultimate effect of the body not getting the right kind of sustenance. The precise kind of fat is required, proteins for cell restoration and for energy you will need carbohydrates. Certainly, to add to all this you cannot live without water. There are also additional nutrients, for example vitamins and minerals which you will need but are harder to get into your diet. A fatty acid that we currently know more about is Omega-3 and it facilitates the fight against the destructive type of cholesterol. Superfoods are rich in lots of these nutrients and one such food is salmon for its protein content with the fatty

acid, Omega-3. One better thing about Omega-3 as you age is how it has a positive effect on your brain's health. You can get Omega-3 in several fish, nuts and seeds, many of which are classed as superfoods. Your immune system may even benefit from the properties of superfoods. Your immune system is significant in keeping you fit and garlic is an example of a superfood which will help. One advantage of consuming garlic could be in how it helps to reduce your cholesterol. One caution with garlic is that if you suffer with your stomach at all, it will not be advisable to consume it. Green tea can be a choice for you personally, particularly if the thought of drinking a lot of water, which as previously stated is a vital factor in your overall health, is something you cannot do. Rich in

antioxidants, green tea is considered a nourishing drink since it contains polyphenols. One added area where green tea seems to have a benefit is in helping to prevent the development of tumours. Some other good superfoods to eat are tomatoes as they include something known as Lycopene which is an excellent antioxidant. Spinach can be an additional high-quality food since it includes a lot of iron and folate, and that is a B vitamin. Lutein, a nutrient obtained in spinach is important for visual healthiness as we grow older. Superfoods are positively worth ingesting as they offer you a lot of vitamins and minerals and health boosting vitamins that you could be otherwise not take in through your usual diet.

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Beverages & Food Processing Times-Sep-II-2012

Madhya Pradesh to be venue of next Indo-US business meet

hief minister Shivraj Singh Chouhan has said that Madhya Pradesh has fast emerged as investment destination. Automobile engineering, pharmaceutical, ITenabled services, tourism, food processing, textile and renewable energy sectors offer immense investment opportunities. Chouhan was addressing a business conference organized by United StatesIndia Business Council and Confederation of Indian Industries at Washington DC. The US-IBC aims at promoting and strengthening trade and commerce relations between Indian and US

trading community. The CM offered invitation to members of US-IBC and trade representatives for the Global Inventors' Summit 2012 at Indore on October 28-30. Talking about the investment-friendly climate and infrastructure in Madhya Pradesh, Chouhan said Madhya Pradesh has good road connectivity, water resources, power availability and technically skilled manpower that are most urgently required in industries. Senior director and policy analyst and acting executive vice president of USIndia Business Council Diane Farrell, in her concluding remark, observed that such a pro-active approach will further foster trade relationship and opportunities. It was agreed that Madhya Pradesh will be the venue of forthcoming Indo-Business Trade Meet. Place and time will be decided later. Prior to attending US-Indo Business Council conference, Chouhan met senior officials ofInternational Finance Corporation (IFC). The IFC officials were positive about the initial proposals of Madhya Pradesh. Discussions on investment assistance for water resources, health and road infrastructure were held.

West Bengal to assist state schemes

ountry director of World Bank team Ono Ruhal said that the team after sincerely considering proposals of power, irrigation, roads and other infrastructure facilities would soon take action for their approval. Expressing his approval for development of barren land and on proposals regarding underground water scheme, Ruhal said that the team would also provide technical assistance for other developmental schemes of the state. The World Bank team also assured to provide technical assistance of 10 million US dollars in the widening of roads and land reforms. World Heart Day awareness: To spread awareness among public on the occasion of World Heart Day, Sahara Hospital is organising a walkathon. The walkathon will begin from Gate number 1 of Ram Manohar Lohia Park to Sahara Shaher, Gomtinagar from 7.00 a.m. to 9.00 a.m. Government constitutes food processing council: The government has constituted State Food Processing Development Council at the state level in order to implement food processing related schemes of the government of India and to expedite development of food processing industries in the state. A government order to this effect has been issued, said secretary, food processing Rajan Shukla. He said that the chief minister will be the chairman of the council. Annual general body meeting: The AGM of Sri Ayyappa Sewa Samithi ( Regd), Lucknow for 2012-2013 will be held, September 30 at Lucknow Muthamizh Sangam, B-62, Sector E, Aliganj 2.00 p.m.

onwards. Award presentation ceremony: Uptec's flagship education centre held its 17{+t}{+h} merit award presentation ceremony. Similar felicitation ceremonies have already been held at other centres of Uptec all over the state. Over 300 meritorious students have been honoured with cash prizes and 'certificate of merit'. Speaking on the occasion Bharat Bhasker, professor, information technology and systems, IIM, Lucknow, congratulated the award winners and apprised them of the fact that India is a prime leader of the world in developing IT professionals par excellence. He said that IT industry has attained a level where the demand for specialised and super specialised IT professionals has increased manifold. Elected: Agriculture production commissioner Alok Ranjan has been elected as member of the board of trustees of Dewa Sharif in district Barabanki for a period of five years, informs an official release. HR conclave: School of Management Science, Lucknow in association with CII, UP, organised HR conclave. Minister of state (Independent charge) Arvind Singh 'Gope', in his address said, "The entire world is recovering from recession and this is the right time for improving skills of corporate workers". He advised the HR heads of corporate sectors for taking care of workers so that they could give their best to the origination. GB Patnaik, principal secretary to the governor of Uttar Pradesh talked about giving the humane touch to the work force by the corporate houses.

News

Agro-ventures queue up to seek angel, VC, PE funding Andhra initiative to help channel venture capital into agriculture

ome this November and over thirty agri-business ventures are expected to come under one roof, seeking funding avenues as well as inking growth pacts at Hyderabad. Ficci along with the Andhra Pradesh government will be hosting 'Food 360',

programme chair. According to him, the event will address issues related to value chain such that consumers get lower prices, increasing income level of farmers and also to be equipped to expand food production.

an initiative that aims to void gaps between the lagging support to farmers and bring together opportunities. Select business ventures, under the business plan competition, would fetch funding from Hyderabad Angels and other participating venture capitalist and private equity partners. “In the first edition last year, there were about twenty ventures and this edition, technology startups with focus on agriculture will also participate,” said S Siva Kumar, group head, agribusiness division of ITC and the Food 360

“With FDI, the backdrop of agribusiness is expected to change. Taking initiatives upto the field level is of concern. This edition there will be special focus on IT in agriculture, dairy and urban agriculture,” said JA Chowdhury, co-chairman Ficci AP and conference general chair. The conclave, to be held on November 5 and November 6, would delve on issues like technology for raising productivity, mechanising farm operations, technology in food processing and marketing.

Future Group to invest Rs. 2500 crore in Madhya Pradesh

ndia's leading business giant Future Group will invest Rs. 2500 crore in food processing industry and infrastructure development in Madhya Pradesh. This will create direct employment to 6,400 persons and indirect jobs to over 18 thousand. Future Group owner Shri Kishore Biyani had recently met Chief Minister

Shri Shivraj Singh Chouhan during the latter's Mumbai visit. He had also met the Chief Minister at Bhopal and expressed interest in investing in the state. MoU for this investment will be signed at the Global Investors' Summit proposed to be held at Indore in October. The Future Group has also inspected potential places in Indore and Bhopal for setting up food processing industry and related infrastructure. Under infrastructure, cold chain, greenhouse, grading & packing facility and other arrangements will be made. It is noteworthy that Future Group is a pioneer business house with over Rs. 10 thousand 564 crore net worth.

Beverages & Food Processing Times-Sep-II-2012

Retail

Retail needs more than FDI A

mid strong protest from opposition parties, the UPA-II Government has notified the opening up of FDI in multi-brand retail. Now, with all speculation put to rest and the roughly $500-billion Indian retail market opened to all retailers â&#x20AC;&#x201D; indigenous or foreign â&#x20AC;&#x201D; it would be pertinent to analyse the opportunities and challenges arising out of the latest move. Will organised retail benefit India's farm sector and improve the condition of its farmers? How will it affect manufacturing and services? Will the India ride of foreign retailers be a smooth one? What it would mean for local kirana shops? Will they lose out to competition from organised players with access to cheaper finance and technical knowhow? FARM SECTOR PROBLEMS India is the world's second largest producer of fruit and vegetables with annual production of more than 200 million tonnes. However, the total cold storage capacity is not even 50 million tonnes. Potatoes take up three-fourth of this, leaving almost no space for other perishable items. As a result, 25-30 per cent ( compared to 1 per cent in Australia) of fruit and vegetables are wasted. Further, farmers have to sell at the time of harvest when the price of their produce is low. So, they get one-third to one sixth of what the consumers pay. Though India allows 100 per cent FDI in cold storage, this has not evoked much of a response in the absence of FDI in multi-brand retailing. Proponents of the policy claim that organised retail, facilitated by FDI, will bring capital and technology, improve quality consciousness and back-end infrastructure. It will minimise the role of intermediaries and link the farmers directly to consumers. It will strengthen rural-urban linkages, encourage agro-processing and check post-harvest losses. This will improve net realisation from agriculture. Besides, it can also be an effective instrument for managing food inflation. However, considering FDI in multibrand retail as a panacea for all the ills of the farm sector will be naive. It must be accompanied by policy actions aimed at unshackling the farm sector

from excessive control --- in particular, dismantling archaic regulations like Agricultural Produce Market Committee (APMC) and ensuring seamless movement of farm produce across States â&#x20AC;&#x201D; to allow the farmers to benefit from the growing consumerism and retail boom. FDI in retail will not solve the existing supply bottlenecks in the food chain, which are the main cause of food inflation. MANUFACTURING WOES Organised retail can be an opportunity

for domestic manufacturers, if they can supply the right quality at the right price. However, India's manufacturing sector is constrained by high capital cost, stifling regulations, poor infrastructure (and, of late, slowing demand). Unless these concerns are addressed, opening up multi-brand retail to foreign players will lead to flood of imported goods from low-cost countries such as China or Bangladesh that may hurt vulnerable sectors like textile and garments. Organised retail, being a volumes game, requires sourcing at lowest price. India's high-cost manufacturing must turn cost-efficient to benefit from local sourcing by these multinational retailers. Domestic sourcing requirement (though it may be contested at WTO) can be an opportunity for the small manufacturers if backed by suitable follow-up action.

The service sector has more to gain (than lose) from opening up of retail to organised operators. It will create new jobs for skilled and unskilled workers, not only in retail but also in related areas such as banking and finance, logistics and transport. This will somewhat compensate for the expected job losses arising out of allowing organised players (indigenous or foreigners) in retail, if we can address the problems of skill shortage and skill upgradation.

SAFEGUARDS IN PLACE To be fair to our policymakers, enough provisions have been made to safeguard the interests of kirana shops, farmers and small manufacturers by imposing conditions (on foreigner retailers) such as domestic sourcing norms, entry at the discretion of States and permission to operate in cities with a population of one million or more. Investment has to be made to create back-end infrastructure. If that is not enough, Competition Commission of India can take care of likely collusion and predatory pricing. Moreover, retail being a Mode 3 service under GATS, India has enough legroom to tweak its policies on FDI in multi-brand retail without inviting WTO sanctions to suit its local peculiarities. Evidence from China shows that even after two decades of opening up its retail sector to organised players, it accounts for not more than 20 per cent

of the market. Permitting foreign players in retail sector of Indonesia, Malaysia, the Philippines, Brazil and Mexico has not resulted in large-scale displacement of local retail stores. It is naive to presume that Walmart or Tesco could do what Big Bazaar, Reliance Fresh or Spencer could not do, despite being around for almost a decade. India's retail sector is already opened for indigenous (organised) operators. There is no logic in keeping foreigners out. Entry of foreign players means more competition, improved supply chain efficiencies and better offerings for consumers and, most likely, better prices for farmers. ATTRACTING FDI Given the high current account deficit and imminent threat of downgrading, India has no option but to do what all it can to attract FDI to tame the decline in rupee. The declining rupee will cause increased fuel subsidy that will, in turn, lead to inflation, rise in interest rates and crowding out of private investment. In all probability, it will not be a smooth ride for foreign retailers in India. Dealing with fragmented small suppliers to comply with 30 per cent domestic sourcing norms will not be easy. To be competitive, retailers will need to remain in close proximity to their buyers and, yet not pay high rentals. Given the prohibitive cost of retail space in Indian cities, this is easier said than done. Foreign retailers will also have to cope with the complexities of State taxation, especially taxes on moving goods out of or into a State. FDI liberalisation in multi-brand retail is, thus, both an opportunity and a challenge. Whether India will benefit from it will depend upon whether it is supported by policy actions aimed at unleashing the animal spirits of India's productive capacities; how the government addresses the problem of infrastructural bottlenecks and business-unfriendly regulatory environment is also an important factor. That will decide whether opening up India's retail sector was a prudent policy decision or not. (Singh is Group Economist of a corporate house. Sharma is a research analyst - agri. commodities. The views are personal.)

Beverages & Food Processing Times-Sep-II-2012

Organic Food News

Organic farming can create 8 mn jobs in Odisha Assocham

he Associated Chambers of Commerce and Industry of India (Assocham), an apex body of trade association, said that adoption of organic farming in Odisha can generate about eight million jobs in next five years. According to the Assocham study titled - “Organic Odisha: Inching towards organic farming”, promotion of this

farming process will generate six million jobs directly and two million jobs in packaging and processing etc. “Though most of agricultural fields are rain fed, the state has an immense potential to bring even food crops under organic cultivation,” said D S Rawat, ASSOCHAM secretary general at the launching of the study report. The report claims that organic farming can lead to wealth accumulation of a whopping Rs 23,000 crore and generate exports worth Rs 600 crore. He maintained that the net per capita income of a farmer can go up by more than 250 per cent from Rs 3,000 presently to Rs 10,500 by 2017. “Organic farming can be encouraged in the production of bananas, vegetables and milk in the state,” Rawat said. India's organic exports currently stood at 0.2 per cent of the total global organic exports. Out of the total 135 products in organic product portfolio, India exports only 86 products. The country exports only $100 million (in values) to the $ 60 billion global market that is growing by $ 5 billion annually, he maintained. Assocham study recommends that the state should increase cultivation through cluster approach to generate marketable surplus and provide economy of scale in marketing the products. The Assocham official said the state government should set up a model village in each district for encouraging the usage of organic fertilisers for protecting the land from residual effect of chemical fertilizers. Assocham has submitted the study report to the Chief Minister recently. The chamber has vowed to help the farmers by linking them with certification agencies and markets both domestic and international. It may be noted that Odisha has the maximum area of 26,300 hectares of total organically certified area of 170,000 hectares in the country. Odisha is followed by Jammu and Kashmir (22,316 hectares) and Rajasthan (22,105 hectares). The industry body has identified Kandhamal for setting up a cluster for turmeric while it will decide between two other districts Khurda and Koraput for establishment of another food processing cluster. The clusters will be set up in association with United Nations Industrial Development Organisation (Unido), Department of Industrial Policy and Promotion, Ministry of Food Processing and the state government.

Beverages & Food Processing Times-Sep-II-2012

Retail News

Smart solutions for the small retailer

he fact that the recent regulatory changes surrounding multi-brand retail in India have split the political and chattering classes neatly down the middle, is proof that the retail sector is of primary importance to the economy. Out of the $450-billion retail market, organised retail accounts only for 5 per cent. This effectively means that $427.5 billion is controlled by the unorganised retail, which seems tobe most affected by the Government's decision to open up the sector to foreign direct investment (FDI). While the pressures of competitive politics have compelled political parties to reach out to their constituents, the urgent need to upgrade the supply-chain infrastructure and introduce modern and scientific methods of retailing are being ignored. Accordingly, this article attempts to highlight: the mechanisms in place to attract FDI in the supply-chain infrastructure sector; and a framework to transform the face of the corner shops and small retailers, so that they are placed at a significant competitive advantage. SUPPLY-CHAIN INFRASTRUCTURE The retail sector depends heavily on the supply chain and logistics sector to allow it to run smoothly. However, supply chains are underdeveloped and not well integrated with the cold storage infrastructure. This is fast becoming a critical issue in India, as at present there is wastage of 30-40 per cent between the farm and the retailer. Hundred per cent FDI is allowed under the automatic route in the storage and warehousing sector, which includes warehousing of farm products with refrigeration. Further, there are a significant number of government initiatives in this sector to provide funding and support for both Indian and foreign companies. The Free Trade Warehousing Zone Scheme (FTWZ) was unveiled by the Government to spark investments in this space. The scheme envisages the creation of world-class infrastructure for warehousing of various products, as well as transportation and handing facilities to support the integrated zones as international trading hubs. END-TO-END CONNECTIVITY Further, five such warehousing zones have been established in strategic areas across India, which are linked by major road, rail, air, and port networks. Furthermore, the Government also provides a series of direct and indirect tax benefits for companies setting up facilities under the FTWZ Scheme. To supplement the push on this front, the Ministry of Food Processing Industries of the Government has come out with the Mega Food Park Scheme which seeks to link agricultural production directly to the market by creating infrastructure for primary processing centres, together with cold

storage facilities in identified clusters. These clusters will take care of processing activities, which require cutting-edge technologies and testing

and cost-effective solutions must be provided to make IT deployment easier in this market.

facilities, besides the basic infrastructure such as water supply, power, environmental protection systems, and communication. The current regulations envisage huge investments in the supply-chain infrastructure, and this must be stringently monitored and enforced to make sure that, within a reasonable time-span, there is end-to-end connectivity between the farm and the retailer through negligible wastage.

TIME IS RIGHT Therefore, bold new solutions with handheld technology, supply-chain

IT AS AN ENABLER Until now, small retailers have found it hard to access stable, low cost and resilient information technology (IT) infrastructure. The global providers which serviced large business were not interested in small retailers, and the insignificant population of small retailers who did invest in an IT framework, had no brand security, certainty and known resilience. Many, if not most, small retailers do not have the time or resources to investigate the suitability of an IT solution provider and, often, perceive the risks as too high and the rewards not clear enough. In the UK, there are a few interesting projects that have the potential to provide a massive competitive edge to the local high-street retailers. They are backed up with a world-class delivery mechanism. Open High Street is a project that brings together local retailers on an Internet platform and creates an incentive for the local community to buy from them. This seems to be the flavour of the day with a similar project being tested in a small town in Wales. The former is backed by Uniliver and the latter, a community initiative. Both projects, by providing the underlying infrastructure, take local retailers to the next level of customer satisfaction. Similarly, small retailers in India need to realise the potential of IT enablement and, at the same time, reliable, robust

tracking and mobile payment gateways are all important for this change. And, all of this at a price which will bring a smile to a small retailer. Therefore, while the current notification on FDI in multi-brand retail expressly excludes e-commerce firms from its decision to allow up to 51 per cent FDI, the enlightened small retailer may find protesting for removal of this clause more beneficial for them. There is, thus, a need for disruptive technologies which enhance the ability of the small retailer to not only survive, but thrive in the changed environment. There are examples where this has been successfully attempted and the time is right to engage with tools that can truly transform the unorganised sector retailing. If anything, the contours of the debate surrounding multi-brand retail liberalisation need to change to address the core issues of whether and how it will impact modernisation of the supply-chain infrastructure as well as what measures can be initiated for modernising the operations of smaller retailers.

Beverages & Food Processing Times-Sep-II-2012

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Lower processing, packaging costs of food make India attractive: Report

he food processing industry, currently the fifth largest sector in India's economy, is showing potential for massive expansion, particularly in the export market, a report by FICCI and Bain & Co says. Costs of processing and packaging food can be up to 40% lower in India, than parts of Europe, making it an attractive venue for investment. Several multinational players are bringing in new products to capitalise on the growing demand for packaged goods. The report, which was launched at the “Food World India 2012 Convention,” pegged the packaged food industry at R1 lakh crore, the majority of which is accounted for by dairy and biscuits. Analysts predict growth rates for the packaged food sector anywhere from 9%-13% for the next 5-6 years. The past few years have also seen increases in investment, through joint ventures, foreign institutional investment and private equity (PE). Between 2008 and 2011, PE investment in the food and agriculture sector totaled $650 million . In the coming years, the Indian government has set an investment

AGRO

target of $20 billion in food-related infrastructure from the private sector. By 2017, 50 Food Parks are expected to be built across the country, providing accessible transport and processing facilities to even small farmers. Growth is expected to be faster in relatively newer categories such as flavored milk and instant noodles, as compared with categories like bread and spices that are large today. Across segments consumers are increasingly willing to try new brands,

Food Processing Directory

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rather than remaining loyal to one . The report cheers reforms by the government in retail, expecting it to “greatly transform the industry,

opening up new possibilities of partnership and bringing increased investment.”