Beverages & Food Processing Times Dec'12 (II)

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

Vol.5, Issue 6, Dec (II) 2012, Rs. 20/-

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MoFPI launches National Mission on Food Processing scheme T o facilitate entrepreneurs and domestic agro-processing industries in setting up and modernising Food Processing Industries, the Ministry of Food Processing Industries (MoFPI), Government of India has launched a Centrally Sponsored Scheme - National Mission on Food Processing (NMFP) – as part of the 12th Five Year Plan.

Under the mission, state governments will receive applications, and sanction and release the grants-in-aid to the eligible beneficiaries. NMFP also provides flexibility to states/union territories in the selection of

beneficiaries, location of projects, etc., for the development of the food processing sector.

This initiative of the Ministry is expected to give an impetus to food processing industries in India. The major programmes/schemes covered under NMFP during 2012-13 are Scheme for Technology Upgradation/Establishment/Modernisation of Food Processing Industries; Scheme for Cold Chain, Value Addition and Preservation Infrastructure for NonHorticultural Products; Scheme for Human Resource Development (HRD) - creation of infrastructure facilities for

running degree/diploma/certificate courses in food processing technology, Entrepreneurship Development Program (EDP), Food Processing Training Centre (FPTC) - Scheme for Promotional Activities, which will include organising seminars/workshops, conducting studies/surveys, providing support to exhibitions/fairs, and advertising.

This information was given by Dr Charan Das Mahant, Minister of State for Food Processing Industries, Government of India, in a written reply in the Rajya Sabha recently.

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Beverages & Food Processing Times-Dec-II-2012

Event Report

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India Food Manufacturing & Safety Summit 2012

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xito Group is glad to organize the India Food Manufacturing & Safety Summit 2012 taking place in Mumbai. The Summit would take place for 2 days - spanning across 13th and 14th December 2012. The India Food Manufacturing & Safety Summit 2012 is designed to serve the requirements of the Food Manufacturing Industry. The Summit will discuss the key challenges facing food and beverage manufacturers in today's economy.

Through a combination of case studies, keynote sessions, interactive workshops, attendees will learn how to streamline production processes, improve efficiency while ensuring quality and regulatory compliance.

With soaring commodity prices and fragile consumer confidence, food manufacturers are faced with the daunting task of delivering safe affordable products while maintaining and improving Profitability. As a result, there has never been a more critical time for food companies to improve Their manufacturing processes and cut costs to stay ahead of the competition.

The India Food Manufacturing & Safety Summit 2012 will update you on the most crucial breakthroughs in manufacturing efficiency and quality risk management essential to remaining profitable and globally competitive.

Stay abreast and ahead of the industry through this knowledge sharing and networking platform that will be an essential step in taking your operations to the next level of quality manufacturing.

This event is being held in collaboration with Rockwell Automation India Pvt. Ltd. Rockwell Automation brings fresh ideas to improve plant performance and appetite for higher productivity.

Globalization and consolidation is challenging the food processing and packaging companies in India to rationalize brands and capacity. This holds true not just for the consumerdriven food companies, but also for the ingredient companies that supply to them. At the same time, power retailers, marketing influence, government regulation and constant changes in consumer preference place increased demands on flexibility, responsiveness, quality, consistency and reduced costs.

This pressure extends beyond the food companies to the OEMs that serve them as well.

The food industry in India is a wide and diverse market, with many segments and sub-segments some organized and some still largely in a disorganized state all

facing competition for the shelf . While common themes run throughout, expertise in one doesn't necessarily mean ability and applicability in another.

The manufacturing environment itself is incredibly diverse, with warehousing and inventory management, batch processing, continuous process control, discrete packaging all residing preferably under the same roof. One weak link in the chain can erase any quality, productivity, cost or flexibility gains in the others.

Because of the breadth of our country and diversity, consolidation can be extremely difficult to help one to draw an accurate picture of the entire food production process industry. A necessity for consolidation and focused approach to help meet customer's demand, maintain food safety and identifying cost and production inefficiencies.

The new regulatory requirements and increasingly fickle consumer demands are putting more pressure on the Indian food industry manufacturers than ever before in their history. The challenges extend beyond the manufacturers themselves and put increased pressure on equipment OEMs and ingredient suppliers as well. Meeting these demands requires an automation partner that has the right technology, understands the food industry landscape and can bring outside perspective from other industries.

Rockwell Automation is the partner of choice to many food processing and manufacturing companies in India and globally who have met their cost, quality, flexibility and regulatory challenges – from raw materials through final shipment. Rockwell Automation's Food Manufacturing Optimization solutions focus on the business issues facing the food industry and addresses every phase of food manufacturing operations.

Rockwell Automation's manufacturing experience, breadth of product offerings, and technical services also help companies to optimize their utilization of valuable and limited human, physical and financial assets, while minimizing waste and satisfying demanding consumers and retailers.

Rockwell Automation's integrated architecture and plant-wide optimization solutions which also includes solutions for control, visualization, networking and information management – enables food industry manufacturers to improve startup times and bring new products to market faster . The speed, flexibility and responsiveness required to meet the demands of today's powerful retailers

requires incredible amounts of information sharing between the manufacturing environment and business systems. Rockwell Automations MES solutions provide the critical link between the factory floor and IT. All food producers must be capable of timely recall of product, but with heightened awareness of potential malicious tampering and acts of terror against the food supply, more accurate and timely response must be realized.

Rockwell Automation's Resource Tracking and Genealogy solution provides traceability of materials, equipment and personnel throughout the production process from material receiving through finished product shipping.

Today, Rockwell Automation has

significantly enhanced its platformindependent service capability and organization to globally implement systems and deploy solutions that provide food companies with a comprehensive approach to reduce time to market, drive regulatory compliance, optimize manufacturing and improve plant uptime.

About Rockwell Automation Rockwell Automation, Inc. (NYSE: ROK), the world's largest company dedicated to industrial automation and information, makes its customers more productive and the world more sustainable. Headquartered in Milwaukee, Wis., Rockwell Automation employs over 22,000 people serving customers in more than 80 countries.

Beverages & Food Processing Times-Dec-II-2012

Food Grain News

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India to raise wheat exports, pay local farmers more I

ndia raised its 2013 wheat export limit by 500,000 tonnes from a year ago on hopes for a bumper harvest and said it would pay its farmers 5.1 percent more for purchases of the grain, contrary to expectations, due to higher input costs.

India, the world's second biggest wheat producer, has been exporting the grain since last year from government warehouses that are overflowing after successive bumper harvests, partly encouraged by generous support prices.

India has allowed 2.5 million tonnes of wheat exports for 2013 to cut bulging stocks, the finance minister said on Wednesday, compared with 2 million tonnes in 2012.

Wheat stocks were at a whopping 37.6 million tonnes on December 1, more than three times a target of 11 million tonnes.

"We have huge stocks. We have three times the buffer stock requirement and therefore we approved the export of additional 25 lakh (2.5 million) tonnes of wheat," P. Chidambaram said.

India, also one of the biggest consumers of wheat with a population of 1.2 billion, raised the price of wheat payable to farmers next year to 1,350 rupees per 100 kg, up from 1,285 rupees this year.

The purchase price, which is equivalent to $245.6 per tonne, is lower than the current export price of between $310-$323 per tonne on a free

on board (FOB) basis.

"Indian wheat supplies will remain attractive at least for next 3-4 months," said a Mumbai-based trader.

purchases early this year and has been exporting since August through tenders by state-run trading companies to cut

India sets a price to buy grains from local farmers to protect them from distressed sales, help maintain stocks for emergencies and run various welfare programmers. The higher price will also protect farmers' profits at a time when costs of inputs, such as fertilizer and diesel, are rising.

The move to lift prices comes as a surprise as in November the government had said it would keep support prices unchanged given that it was grappling with bulging stocks and wanted to cut its high food subsidy bill.

The government made record wheat

stocks.

In the latest round of overseas wheat sales by state-run companies, MMTC Ltd received the highest bid at $322.5 per tonne from a global trading firm.

India, which grows only one wheat crop in a year, produced a record 94 million tonnes of the grain in 2012.

Farmers plant wheat from October and harvests begin in March.

65% foodgrains of central pool lying in open in Haryana Haryana government's claims of creating more space for storage of food stock are being questioned as over 65%

wheat and rice stock of central pool is kept in the open in the state.

With the Centre yet to lift 39.36 lakh tonne grains procured between 2009 and 2011, there is no space for paddy arriving and wheat expected to arrive after three months.

"The food secretary has already assured to expedite the movement of 30 lakh tonne stock through special trains. We have also started the process to acquire land through village panchayats for creating additional godown space to store 30 lakh tonne,'' T C Gupta, principal secretary, food and supplies, said.

According to documents of department of food and supplies, over 60.83 lakh tonne foodgrains out of 95.13 lakh tonne is lying in the open.

Vijay Setia of Rice Exporters' Association, Haryana, said, "Storage plays a key role as far as nutritional value of grain, especially rice, is concerned. Poor storage has resulted in downgrading of quality of rice."

Stock position Total stock | 95.13 lakh tonne Stored in open | 60.83 lakh tonne Stored in godowns | 34.29 lakh tonne Old stock | 39.36 lakh tonne Agencies involved FCI, Food & Supplies Department, Haryana Agro Industries Limited, Confed, Hafed and Haryana Warehousing Corporation

Export of additional 25 lakh tonnes of wheat from Central Pool Stocks of Food Corporation of India The Cabinet Committee on Economic Affairs today approved the export of additional wheat from central pool stocks of the Food Corporation of India (FCI) as per the following: (i) Export of additional 25 lakh tonnes of wheat from the central pool stock of the Food Corporation of India at the cost determined by individual tenders subject to the floor price of US$ 300 per metric tonne, following the same procedure as was followed for export of 20 lakh tonnes of wheat through exporting Central Public Sector Undertakings of the Department of Commerce i.e. STC, MMTC & PEC. These exports are to be completed by June, 2013. (ii)Reimbursement of loss by the

Government to FCI on account of the exports calculated as the difference between the economic cost to FCI and its realisation from the exporting CPSUs after deduction of actual port expenses and their commission at the rate of 2.5 percent, for which additional funds over and above budget estimate shall be provided.

The export of additional 25 lakh tonnes of wheat from the central pool stocks of FCI would make available more space for storage of foodgrains in the godowns of FCI and thereby easing the problem of storage being faced by the corporation.

The ultimate beneficiary would be the Govt. of India as the export of 25 lakh tonnes of wheat would ensure the

efficient management of food stocks in central pool.

Background A meeting was taken by the Prime Minister on 2.5.2012 to discuss the disposal of the excess stocks of foodgrainsof the Food Corporation of India (FCI) and it was decided that the Department of Food & Public Distribution would make all efforts to export upto 4 million tonnes of wheat to Iran and other West Asian countries and together with the Department of Commerce explore the possibility of exporting grains to certain countries on bilateral basis on commercial terms.

As a follow up of the aforesaid meeting, Dr C. Rangarajan, Chairman, Economic Advisory Council to Prime

Minister vide his note dated 17.5.2012 has inter alia suggested to examine the feasibility of exporting 2 millon tonnes of wheat out of public stocks.

Accordingly, the CCEA in its meeting held on 3.7.2012 has approved export of 2 milliontonnes of wheat from Central Pool Stocks of FCI through the CPSUs of the Department of Commerce, viz. STC, MMTC and PEC subject to a floor price of US$ 228 per tonne. Out of 2 million tonnes, the tendering process of 17.30lakh tonnes has been completed and the average price realized is above US $ 300 per tonne.

Beverages & Food Processing Times-Dec-II-2012

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Beverages & Food Processing Times-Dec-II-2012

Company report

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Japanese sheet metal major Amada to focus on infra, food processing

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mada Group, the Japanese sheet-metal fabricating major, plans to focus on infrastructure, power and food processing in India.

“These sectors are growing steadily and are driving business for us,” Shinichi Takano, Director and CFO, Amada India, told Business Line.

“The company currently has 1,000 customers and we have installed about 3,000 machines serving various sectors in India,” he added.

Sheet metal processing is used to manufacture infrastructure related products, agricultural machines, distribution switchboards, communication equipment and sashes.

“Demand for machines of this type is expected to expand exponentially in India where modernisation and infrastructure improvements are national policies,” Takano said.

TRAINING CENTRE “However, processing of sheet metal safely and accurately using machines require adequate skills training to a large number of people,” he explained.

In addition to sales and service to customers, the company is now planning to set up technical and vocational training centre in India to expand the market.

The company is part of the ninecompany consortium under the IndoJapanese collaboration to facilitate, support joint research.

WORKING WITH MODELS As part of this initiative, the company has donated Indian Institute of Information Technology (IIIT), Jabalpur, two models of sheet metal processing machines and automatic programming equipment, manufactured by Amada.

Valued at 52 million Japanese yen, machines comprise a turret punch press (punching machine) for cutting and drilling sheet metal and a computer for creating software that enables machines be operated correctly.

Periasamy Thanapandi, President and CEO, AmadaSoft India, said: “The centre is called 'Amada Manufacturing Innovation Centre' and through this IIIT- Jabalpur will commence sheet metal machining course.”

Amada Soft India is currently building a technical and vocational training centre in Bangalore's Aero Space Park.

Thanapandi said, “The $13-million facility is coming up on eight acres and will be completed in 2014. It is expected to service global clients from Bangalore.”

ICC hosts International Potato Expo 2012 Maharashtra Minister for Food Processing Industries and Agriculture Tariq Anwar inaugurated the 3rd India International Potato Expo (IIPE) organized by Indian Chamber Of Commerce (ICC) in association with the Union Ministry of Agriculture and the Ministry of Food Processing, here.

Present on the occasion were West Bengal Minister of Agriculture Moloy Ghatak, West Bengal Minister of Agriculture Marketing Arup Roy, President of ICC Rajiv Mundhra, Union Secretary-Ministry of Food Processing Industries Rakesh Kacker, Joint Secretary-Ministry of Agriculture Sanjeev Chopra, ICC Chairman-Agri Business Committee M K Jalan, Director-Central Potato Research Institute B P Singh and Director General ICC Rajeev Singh.

A diversified product range including chips, fries, and many other snacks are capturing higher market share in our country and is poised to grow substantially in near future. Thus potato has evolved as a true global food with huge economic value, ICC said.

“For enhancing production, exports and processing of Potato, our immediate emphasis is on creation of post-harvest infrastructural facilities, like collection centers, grading centers, washing facilities, and packing, refrigerated vans, pre-cooling units, cold storages, intermediate cold storages, processing units, etc.," said Tariq Anwar.

Anwar added, "A complete cold chain facility needs to be created. I feel India also needs to concentrate on the long term on the export of value added potato products. So technology transfers from the MNC firms operating in the country should be another focus area."

"The Government intends to engage the entire potato community in developing synergies and initiating combined and mutually beneficial and supportive actions in order to sustainable potatobased systems. We need a strong partnership with the private sector, and prominent Industry Associations like the ICC can play a major role in bringing in the investor community," he said.

Rajiv Mundhra said, “With the high food value and substantial production across the world, the potato can play a crucial role in food security and economic development of developing and developed economies. ICC has been instrumental in unlocking the growth potential of the primarily

agrarian Eastern and Northeastern states of India."

"Keeping the sustainability factor and food security issue in mind, we feel that the country at this moment needs a state-specific, structured approach in the Agribusiness vertical, with a firm focus on Productivity, Processing and Cold Chain Logistics towards forging a successful 'Farm to Fork' growth story," said Mundhra.

This forum enabled all the stakeholders of the Indian Potato sector to assemble and exchange views.

The Summit & Expo was attended by international experts, academicians, policy makers, corporate houses, Agriscientists, bankers, members of the farming community and others.

M K Jalan shared the ICC's recommendations on the sector.

The 2-day programme covered various subjects including food security, sustainable use of technologies, technical know-how, potato productivity, marketability and trade, best practices, modernization of potato processing, marketing and export of potato products.

The long-standing impediments against the smooth growth of the potato industry like huge wastage due to lack of adequate cold storage facilities, fluctuating potato prices, shortage of proper Agri-infrastructure, policy challenges, adverse climate and loss of biodiversity were addressed in the technical conference.

The event also witnessed the presence of representatives from the National Horticulture Board, Central Potato Research Center, State Government, Agriculture Scientists and many other stakeholders like cold chain companies, fertilizer industries, potato processing industries, banks, research institutions and agriculture universities.

The ministry of Agriculture representatives from various State Governments like West Bengal, Punjab, Bihar, Uttar Pradesh, Gujarat, Madhya Pradesh, Orissa, Meghalaya and others participated in the two-day summit.

Innovation in Food Processing: AIP to Optimize Agriculture-Industry Interface through Training in Value Addition Towards achieving its mandate to improve income and livelihood among the rural populace involved in the agricultural and related sectors, the Agricultural Innovation Partnership (AIP) will organize a three-day training program for farmers, small entrepreneurs, students, homemakers and educated unemployed youth in the

Department of Agricultural Engineering and Food Technology, College of Agriculture, Sardar Vallabhbhai Patel University of Agriculture & Technology (SVPUA&T), Meerut on December 2224, 2012.

The hands-on training will help the participants learn ways to improve the shelf life of food products, taste and nutritional value of the value-added food using traditional as well as modern methods. The participants will also be trained on using simple, but effective ways of employing the recent advances made in processing and preservation technologies in fruits and vegetables. AIP, a project funded by the USAID, is a consortium of leading agricultural universities and institutions in India and US and supported by private partners in India, is managed by Sathguru Management Consultants.

In India, close to 20 percent of the total vegetable and fruit produce worth INR 440 billion goes to waste annually due to the lack of transport and cold chain facilities. The negative impact of this on natural resource utilization, farmer income, and the rural economy may be effectively countered by educating the farmers and other members of local agrarian economies on effective processing and preservation techniques.

An eminent faculty comprising industry leaders and subject experts from India and US will converge to share their knowledge and experiences through hands-on trainings and presentations that will demonstrate ways to improve the edibility and quality of processed fruits and vegetables. The top-notch team of experts from the College of Agriculture and Life Sciences, Cornell University comprising Prof. Syed Rizvi and Alicia Orta-Ramirez will train the participants. Speaking on the occasion, Prof Rizvi said, “This training program, meant largely for the people at the grass-roots level, will coach them on developing unique, less pricesensitive, consumer-oriented, hygienic products to bolster the agricultureindustry interface, develop entrepreneurship models and understand bio-process technology for converting raw agricultural produce into useful products.”

Speaking on the need of the training, Prof Samsher, Dept. of Food Science and Technology, SVPUA&T who has been actively involved in conducting the training, commented, “The idea of deriving value-added products from agricultural produce highlight several Continued on ...................7

Beverages & Food Processing Times-Dec-II-2012 Continued From ...................6 complex issues–product innovation and management and rural development–all of which are intricately connected with the future of agriculture and rural communities. AIP aims at empowering the rural community with the technical know-how to convert agricultural produce into value-added products, which will help serve several purposes simultaneously.”

The program is designed to instill ideas for value addition to local agricultural produce that will involve techniques to produce fruit- and vegetable-based beverages; ready-to-serves, squash and nectar preparation; jam and jelly preparation; ketchup, sauce preparation, etc. While providing an added source of income to the locals, the training will help in reducing wastage of agricultural produce as a result of optimum storage and enhancing shelf-life of the products through food processing and preservation techniques such as curing, pickling, evaporating and drying. The program will also help to enhance rural economies and empower the populace, particularly the women, by offering them entrepreneurial opportunities. The trainers will demonstrate ways of producing minimally-processed food, which contain less fat, salt, sugar and other carbohydrates and more fresh ingredients. The program will instill in the participants the importance of following food safety standards and the strategies that need to be adopted to ensure that the final produce is and remains safe for consumption. The products generated over the course of the training program would be evaluated through sensory evaluation on a 9 point Hedonic scale in the SVPUA&T laboratory.

Dr. Suresh D., General Manager–Life Sciences Advisory Group at Sathguru Management Consultants said, “A part of the agricultural produce, often grown in abundance in India, surpasses demand, and can be utilized to provide benefits to other agricultural or nonagricultural sectors. AIP plans to look at the potential uses for agricultural produce in an effort to raise farm-level awareness among the food producers of the country about the inherent worth of value-added products and to facilitate future initiatives.”

About AIP Funded by the United States Agency for International Development (USAID), the Agricultural Innovation Partnership (AIP), a five-year project, comprises a consortium of Indian Agricultural Universities and landgrant universities in the US (Cornell, Illinois, Georgia, The Ohio State, Tuskegee, and UC Davis) and private sector partners that include John Deere, Tata Chemicals Ltd, and Sathguru Management Consultants Pvt. Ltd. AIP believes in fostering change in the capabilities of Indian universities to deliver innovative pedagogical practices and to maximize institutional

impact by promoting holistic transformation in Indian agriculture.

AIP fosters innovation ecosystems within the rural setup to maximize income and enhance sustainability.

About College of Agriculture and Life Sciences, Cornell University Cornell University, an Ivy League university located in Ithaca, New York, USA, is one of the world's leading universities providing education to more than 22,000 students the world over. About 1,600 able faculty members, comprising internationally recognized authorities in their respective fields, including Nobel laureates and Rhodes scholars, guide these students. The research interests

Company report

and activities of this university's faculty and students have placed Cornell amongst the world's best research institutions. Cornell's College of Agriculture and Life Sciences (CALS) is recognized as the leading institution for agricultural education and research in the world. CALS is instrumental in establishing the International Agricultural Research System and has been involved in education and research partnerships in several countries in Asia since the Green Revolution.

About Sathguru Management Consultants Sathguru Management Consultants is a multifaceted advisory firm providing

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strategic, technological, functional and sectoral advisory services to an international clientele. Sathguru is among the largest strategy and technology management advisory firm for the life sciences sector that covers a broad spectrum of industries including agriculture, food, retail, animal sciences and health care. Sathguru's development efforts are carried out in partnership with domestic and international development partners.

Sathguru has pioneered creation of public-private partnerships for advancement of life science research, skill development and technology commercialization.

Beverages & Food Processing Times-Dec-II-2012

Tea & Coffee News

8

Rabobank Report: "Raj-accino"- The Rise Of Coffee Culture In India

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abobank has published a new research report on the rise of the coffee culture inIndia, due to the efforts of a few specialist coffee chains and instant coffee players.

In a new report titled "Raj-accino," Rabobank's Food & Agribusiness Research and Advisory group says that coffee drinking has spread across the country and consumption has doubled.

Specialist coffee shop chains, which have established themselves as a 'hangout' for urban youth, are projected to reach 4,000 in numbers by 2015 (21% CAGR). This growth is a result of favorable demographics, rising income levels, rise of mid-sized cities and high population density. High real estate costs, manpower attrition and difficulties in managing the supply chain will continue to be the key challenges.

Although specialist coffee chains' contribution to India's total coffee consumption by volume may not be significant, these coffee shops have added more visibility to the coffee culture. The first specialist coffee shop

by Cafe Coffee Day opened up in 1996, and the company has since grown to a market leading position, with 1,350 coffee shops spread across India. At present, there are around 2,100 specialist coffee shops in India, and given that there are multiple international coffee shop chains trying to expand their base in this important market, consumers are likely to have even more options within the next

three years.

For a burgeoning segment of the Indian population, coffee chains are also offering a new snacking/leisure experience. These coffee chains offer an experience similar to that in developed markets. The opportunities for coffee chain growth arise from the favorable demographics – low per capita consumption and increasing

T

all over the globe. It is going to ensure it that tea only with the tagline 'Indian Tea' is exported. “This comes on the backdrop of various quality issues that have cropped up in recent years,” said the Tea Board on its website.

Because of its above stand, “…no teas can either be exported from or imported into India, without conforming to Food Safety and Standards Authority of India's (FSSAI) parameters and teas would be subjected to random testing” with effect from February 1, 2013, said the Board.

Meanwhile, the Tea Board of India has established one Tea Council of North

industry manpower is likely to continue to be a challenge due to high rates of staff attrition. On top of this, the sourcing of other beverages, food and merchandising – all an essential part of the coffee shop experience – continues to be a problem as players struggle to establish quality, reliable supplier relationships.

India remains a tea drinking country, with sales of the traditional beverage still outperforming that of coffee. With growth in coffee consumption outpacing that of tea however, coffee culture is expected to continue to flourish for the foreseeable future.

The Rabobank report on the growing Indian coffee culture is available to media upon request.

income levels, the rise of mid-sized cities, and a high population density with its associated potential for expansion of the coffee shop network.

"The impressive growth expected of specialist coffee chains in India offers numerous opportunities for both local and international players, provided that they can overcome inherent obstacles," says Nitin Kalani, Rabobank beverage analyst and author of the report.

Tea Board steps to promote 'Indian Tea' he Tea Board of India has taken firm steps to protect and enhance the image of Indian tea

Sourcing coffee beans is not the key barrier for specialist coffee chains, with coffee beans accounting for an insignificant proportion of the total cost of a cup of coffee. For example, the cost of coffee beans in a cappuccino is about 8 percent of the sale price. To be successful, operational efficiency (e.g., managing rent and labor costs) is more important than focusing solely on raw

India and the other for South India, under its direction, to put in place an online mandatory mechanism to track all exports and imports of tea and ensure that quality norms are enforced.

The mechanism, being designed by NSE-IT will be hassle free and paperless. Details would be posted on the website of the Tea Board from 01.1.2013.

Chairman of the Assam Tea Planters' Association Rajib Barooah welcomed the Tea Board move. Talking to this newspaper, Barooah said, “This move will help improving the image of Indian tea all over the globe.”

It needs mention here that the FSSAI is established under Food Safety and Standards Act, 2006 which consolidates various acts and orders that have hitherto handled food related issues in various Ministries and Departments. FSSAI has been created for laying 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.

material costs.

Real estate overheads are a major concern, with coffee chains facing strong competition for acquiring prime premises. Furthermore, coffee shops must be big enough to accommodate a large number of people, with around 95 percent of consumers in India preferring to drink on-site rather than to take away (compared to around 60 per cent in the U.S.). Competition for

Rabobank Group is a global financial services leader providing wholesale and retail banking, asset management, leasing, real estate services, and renewable energy project financing.

Founded over a century ago, Rabobank is one of the largest banks in the world, with nearly $1 trillion in assets and operations in more than 40 countries.

In North America, Rabobank is a premier bank to the food, beverage and agribusiness industry. Rabobank's Food & Agribusiness Research and Advisory team is comprised of more than 80 analysts around the world who provide expert analysis, insight and counsel to Rabobank clients about trends, issues and developments in all sectors of agriculture. www.Rabobank.com

No tea trade without conforming to FSSAI parameters: Tea Board

o

r imported into the country from February if it does not conform to the Food Safety and Standards Authority of India's (FSSAI) parameters.

"Effective Feb 1, 2013, no teas can either be exported from or imported into India, without conforming to

FSSAI parameters and teas would be subjected to random testing," a Tea Board of India release said here.

FSSAI was established under the Food Safety and Standards Act, 2006 as a

statutory body for laying down sciencebased standards for articles of food and regulating manufacturing, processing, distribution, sale and import of food so as to ensure safe and wholesome food for human consumption.

Against the backdrop of various quality issues that have cropped up in recent years, the tea board has already taken firm steps to protect and enhance the image of Indian tea globally and to ensure that only tea worthy of the tagline 'Indian tea' is exported.

The board has recently established Tea Councils for both north and south India to put in place an online mandatory mechanism to track all exports and imports of tea and ensure that quality norms are enforced.

Beverages & Food Processing Times-Dec-II-2012

Food Security

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India needs to cultivate its food security and plan for 2020: ASSOCHAM H

aving done very well in raising foodgrains production in the last decade, India will have to do 'out-of-box' and adopt a fresh strategy to ensure food security for its growing population in the next 10 years, an ASSOCHAM study has pointed out.

The country's food grain production, comprising mainly rice, wheat, coarse grains and pulses, increased from 197 million tones in 2000-01 to 257 million tones in 2011-12. However, to raise the production in the same proportion to something like 320 million tones in the next eight to 10 years to feed ourgrowing population will be a big challenge, given the fact that land resource is limited and the country needs to go in for urbanization at an increased pace, the chamber said.

It goes to the credit of the ‘Green Revolution’ and efforts of our farmers that the country harvested rich crop of foodgrains without much increase in the acreage. For instance, the acreage under foodgrains cultivation in 2000-01 was 122 million hectares while the total production was 197 million tones. The area under cultivation went up by four million hectares to 126 million hectares but the production jumped upto 257 million tones.

It said India needs to constantly raise its foodgrains production and food security, first because our population in 2020 would be about 1.4-1.45 billion and secondly, most of our population is young. It goes without saying that youngsters are better eaters. And then, as a country we also need to improve on the nutrition scale as we strive to reduce the ratio of people below the present poverty level of about 30%.

"In fact, finishing the poverty level should be the first priority," the study emphasized, fully supporting the UPA Government's flagship programme 'Food Security Bill' under which rice and wheat would be sold to the BPL families at Rs three and Rs 2 per kg respectively.

The study pointed out that while the next level of revolution in pushing up food production is a challenging task, it is not impossible. However, it would require huge investment in raising the facilities for irrigation. As per World

Bank report, only 35% of India's agricultural land has irrigation facilities and the rest depends totally on Monsoon rains.

As much as 60% of India’s land of 2973190 square kilometer comprises agricultural land (1797090 Sq km) and only 35% of it is under irrigation.

"The productivity of irrigated land is

almost double than the dry land.

Besides, we can have at least double crop in a year on irrigated land whereas harvesting even a single crop would depend on the Rain God," reveals the ASSOCHAM study on "The Next Food Security Challenge".

Unfortunately, even though thousands of crores of rupees are earmarked for

development of irrigation facilities, not much attention is paid and neither the sector receives any media attention. For instance, we should monitor the progress of the Rs 140 billion ‘Accelerated Irrigation Benefit Programme', Rs 25 billion 'Flood Management programme' and Rs 5.5 billion water bodies development programme.

"It is only when some scam takes place, like the one in Maharashtra that the media glare is seen on the sector," the study observed regretfully.

While the Green Revolution gave us the handsome dividend in terms of raising production, it depended too much on the use of fertilizers and ground water. "However, given the land degradation and imbalance in soil nutrient, such scope is limited in future", the ASSOCHAM study said emphasizing the need for repairing the soil nutrient balance.

Secondly to boost productivity and improve flood managementthe ambitious programme of inter-linking of rivers should be scientifically examined by a high level of committee of experts, without any political colour or bias, the chamber said.

Beverages & Food Processing Times-Dec-II-2012

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UP government to Baby food and child nutrition market in India amend its APMC Act

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he Samajwadi Party (SP) may be opposing foreign direct investment (FDI) in retail in and outside Parliament, but its government in Uttar Pradesh is working hard on a

food processing units in the state.

Once the proposed amendments come into effect, traders will be able to open private mandis (markets) for sale and purchase of commodities from farmers

policy to demolish trade barriers for multinational companies.

To concede UPA government's demands, the Akhilesh Yadav government is preparing to make sweeping amendments to the state's Agriculture Produce Marketing Committee (APMC) Act, 1964, to facilitate direct marketing and purchase of agricultural produce from farmers.

Seen as a prerequisite to the FDI in retail becoming possible, the proposed amendments are ready and are likely to be sent for the cabinet's nod next month.

Proposals for the amendment have been readied after prolonged deliberations and are expected to be cleared by the mandi parishad board. The objective, senior UP government officials said, was to make an extensive market available to farmers and provide all possible incentives to entrepreneurs to set up industrial and

and purchase goods at the mill gate only.

For instance, a flour-mill owner would be able to buy wheat at his factory direct from sellers, rather than making purchases through government mandis.

The amendment will also be a step towards weeding out middlemen.

Among major proposals in the proposed amendment, UP will give incentives like mandi fee waiver for five years from an industrial unit with plant cost of Rs 5 crore.

At present, this exemption is available for units with a plant cost of Rs 10 crore.

The proposed amendments will permit entrepreneurs, with certain conditions, to tie up with farmers for getting a special class of raw material. Thus, the cultivators may be asked to cultivate a certain type of crop depending on what the seller sells, or on the basis of market demands.

Organic India bets on stimulant

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n organic drug made from Indian herbs to enhance male libido and gradually address erectile dysfunction (ED), is the next big thing from Organic India Limited, the manufacturers and exporters of India's first packaged organic green tea.

The product will hit the market in the New Year, along with the organic herbal energy drink, which comes without caffeine.

The two products are part of a major expansion plan by Organic India that is set to expand into new segments such as organic spices and food grains. With these additions to its existing over-the-counter (OTC) organic herbal medicines, the company aims to double its sales turnover to Rs. 200 crore per annum over the course of the next three years.

“Our focus is to develop unique and truly organic products like energy drinks and the sex stimulant O'Joy, which will cure ED over a period of time,” said Organic India's managing director and global CEO, Krishan Guptaa.

“O'Joy won't act overnight and one needs to take it for a stipulated period for best results,” said Guptaa.

Apart from its five existing processing plants in Bangalore, Rajasthan and UP, the company is coming up with an integrated manufacturing plant at Bundelkhand in Uttar Pradesh by 2013 end, which will possess processing and manufacturing as well as packaging facilities. The company is also planning to penetrate into Tier II as well as Tier III cities.

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he Baby Food and Child Nutrition Market in India is growing rapidly owing to the increased awareness among parents regarding proper nutritional well being of their child. In the recent years, the country has also witnessed growth in the number of young working mothers who suffers from shortage of time and has to depend on processed child nutrition products. In addition to this, some major corporate activities such as joint ventures, mergers and acquisitions by some of the top multinationals has also taken place in this sector, which indicates prominent signs of prosperity of the baby food and child nutrition market in the coming years.

The report begins with the introduction section which offers a brief description about child nutrition, its various

aspects and its role in the proper development of a child. After this, the various factors determining the nutritional requirements of a child are mentioned along with the breakup percentage of energy spent by a child on different activities. It is then followed by the classification of the child nutrition products based on different compositions. It then moves into the market overview section, which provides an overview of the global baby food and child nutrition market with details about its current market scenario and growth. Apart from this, the section also highlights about the major global players of this market in the infant formula category along with their respective market shares. The next section provides an insight about the Indian baby food and child nutrition market, highlighting the market size and its growth in the upcoming years. It also provides information about the major players in the Indian market with their respective market shares. In addition to this, survey results about consumer preference for child nutrition products and major brands in different baby foods categories are also provided. The next section elaborates on the value

chain analysis of the sector.

A separate section on import and export of baby food and child nutrition products is also provided, highlighting the growth in import and export values over the years. Then, details regarding major importing and exporting nations are also provided.

An analysis of the drivers explains the factors for growth of the industry that include increase in disposable income, increase in number of new born babies, increasing working women population and increased reach and availability due to growing retail and pharma outlets The key challenges include regulatory challenges, rise in ingredient price, high pricing and cultural aspects.

The next section speaks about the Government regulations for baby food and child nutrition products which include the Infant Milk Substitutes (IMS), Feeding bottles and Infant foods Amended Act 2003 and the various regulations by the Food Safety and Standards Authority of India (FSSAI).

In the next section, different initiatives taken by the Government of India to facilitate growth of this sector is mentioned which include modification in Packaged Commodities Rules 2011, Milk and Milk Product Order (MMPO ) and other initiatives taken in terms of custom duty relaxation in different industries that are related to this sector either directly or indirectly.

The major trends identified in the sector include innovation in product variants, inclination towards health and wellness foods, collaborations and acquisitions and innovative brand building activities.

The competition section offers a competitive landscape of the players by providing their financials and key financial ratios. It also provides elaborate information regarding the organizations. Key financial parameters constitute the financial performances of the players which are followed by business highlights. Porters Five Forces Analysis has been incorporated for a brief but effective understanding of the market scenario.

The report concludes with a section on strategic recommendations which comprises an analysis of the growth strategies for the baby food and child nutrition market in India.

Beverages & Food Processing Times-Dec-II-2012

US calls on Russia to lift meat restrictions

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he US called on Russia to lift restrictions on American meat imports.

The US said the new requirement on American beef and pork supplies contradicted Russia's obligations as a member of the World Trade Organization (WTO).

Russia, which joined the world trade club as its 156th member in August 2012 after 18 years of negotiations, announced that beef and pork imports from US producers using ractopamine must be tested and certified free of the feed additive.

The move came a day after the US Senate repealed the Cold War-era Jackson-Vanik restrictions on trade with Russia and simultaneously passed the Magnitsky Act, which targets Russian officials deemed by

Washington to have violated human rights.

"The US is very concerned that Russia has taken these actions, which appear to be inconsistent with its obligations as a member of the World Trade Organization," Agriculture Secretary Tom Vilsack and US Trade Representati ve Ron Kirk said in a joint statement.

"The US calls on Russia to suspend these new measures and restore market access for US beef and pork products."

Russian officials denied allegations that the decision to restrict US meat imports was made in response to US sanctions against Russian human rights abusers adopted in conjunction with the trade bill.

The Magnitsky Act specifically targets Russian officials considered by the White House to be involved in the death of Russian whistleblower lawyer Sergei Magnitsky in 2009, but it extends to other purported violators of human rights in Russia as well.

Bengal readying to sip daab water in bottles

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are for some daab water? Chief minister Mamata Banerjee's focus on small investors will soon see packaged coconut water in local stores.

The state food processing department is currently studying a state-of-the-art technique for packaging bottles of daab water.

It will collaborate with the Indian Institute of Packaging to sell coconut water and highlight that fact that one portion of coconut water is equivalent

to three portions of water.

An official said, "Coconut water is rightly termed as the fluid of life because its chemical composition is equivalent to that of the blood plasma.

Coconut water can hydrate us instantly for the loss of electrolyte in the body.

The coconut water offered by us contains more than 100 % ofRDA of vitamin C that is vital for maintaining strong immune system in the human body."

The official added, "It is highly treasured as it is free from fat and cholesterol. Coconut water has more potassium than a banana and can hydra the body instantly for lost electrolytes during summer heat."

The state government will also seek advice from a group in Chennai that processes, exports and supplies a high quality range of coconut water.

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News

38 cases of 'misguiding ads' on food items: Tewari

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he Food Safety and Standards Authority of India (FSSAI) has issued notices in 38 cases of dubious claims or misguiding advertisements on food items and

have been filed for violation under the Food Safety and Standards Act 2006 and Food Safety and Standards (Packing and Labelling) Regulations, 2011, Tewari said.

Another matter that was filed pertained to the Horlicks advertiseme nt over the claim that the children consuming the product were "taller, stronger and sharper".

prosecution has been launched in 19 cases, the Rajya Sabha was informed.

In a written reply, Information and Broadcasting Minister Manish Tewari also said that apart from these 38 cases, other instances that came before the ministry were placed before an InterMinisterial Committee.

According to details given by the minister, complaints had been filed against advertisements of leading brands including one of Complan, which claimed that one can grow two times by using the product. The cases

Another case was related to the Kellogs advertisement which claimed that "research shows that people who eat low fat breakfast like Kellogg's Special K, tend to be slimmer than those who don't".

According to Tewari, cases had also been filed against advertisements promoting many other brands.

In response to another question, Tewari said that the Press Council had registered 532 complaints on charges of baseless and provocative news reports published in print media since April 1.

Global meet on food processing from December 27

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he authorities of the Centre of Food Technology (CFT) of the Institute of Professional (IPS) of Allahabad University in association with American Association of Food

Scientists (AAFS) for the Indian subcontinent have come together to organise an international conference on 'Food processing and development of backward regions: preparing a roadmap' with special reference to Eastern UP. The conference would start

on December 27.

G K Rai director of the centre said the two-day conference will be inaugurated

by Rajya Sabha member Mohan Singh on December 27 at 10 am in the auditorium of National Academy of Sciences India (NASI). Many important scientists of international repute will be participating in the conference. He added that innovation and new technologies for development, health food, food safety and development of eastern Uttar Pradesh are some important topics on which the two-day conference will focus.

Among dignitaries participating in the conference will be Ramkishan Rao of the US Department of Agriculture, N Hettiarachchy of the University of Arkansas, Ramaswamy Ananteswaran of the Pennsylvania State University, US, Sayyed SH Rizvi of University of Cornell etc.

Beverages & Food Processing Times-Dec-II-2012

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Labour and environmental issues affecting MSMEs: CM

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hief minister Oommen Chandy observed that a host of issues, including labour and environmental concerns, are affecting the growth of micro, small and medium enterprises (MSME) in Kerala. He was delivering the inaugural address at India MSME Summit 2012 organized by the Confederation of Indian Industry (CII) in Kochi.

"The traditional MSME strongholds in the state are food processing, handloom, coir, cashew and rubber industries.

Recently footwear and light industries were added to this list. Despite positive achievements, there are issues that are hindering the growth of the sector, namely- lack of affordable finance, technology and skilled manpower, unavailability of infrastructure, marketing and labour. There are also environmental issues," Chandy said.

"Kerala is emerging as a leader in the

food processing sector and the state has 1,280 food processing units, making it

the third largest in India in terms of licensed units. And 40% of marine

processing units of India are located in the state," said the chief minister.

"The sector's contribution towards domestic requirements, job creation, entrepreneurship development, innovation and self-reliance in Kerala is commendable. Almost 1.94 lakh units in the state are registered as MSME as on March 2012," he said.

SBT would help set up a buyer-seller exchange for MSMEs over the internet or through other means, revealed managing director of the bank P Nandakumaran. Chairman of CII Kerala State Council V K Mathews, chairman of India MSME Summit 2012 Shyam Srinivasan, managing director of Kerala State Industrial Development Corporation Ltd Tom Jose and vice chairman of CII Kerala State Council C J George attended the inaugural session of the summit.