Agri Business & Food Industry - May 2013
India's only Monthly magazine having maximum presence in the International Exhibitions, for entire Agro, food & related industries. Regular topics cover the food processing sector, cold chains, food packaging machinery/ equipment/ material suppliers, food processing machinery & equipments, bakery industry, sweets/ namkeen / confectionery, dairy & poultry industry, food additives & ingredient and much more. AGRIBUSINESS & FOOD INDUSTRY is also the most cost effective media to Advertise goods and services.
AgriBusiness & Food Industry w May 2013 3 4 AgriBusiness & Food Industry w May 2013 AgriBusiness & Food Industry w May 2013 5 inside... Cover Story ...10 India emerges as Hot Destination at IDMA, Turkey Focus on Flour, Semolina, Rice, Corn, Pasta, Feed Milling Machines Bureau Report Over 30 Turkish Companies Expected to Showcase Technologies at GrainTech India 2013 Bühler makes a huge presence at IDMA 8 EDITORIAL 27 16 Event Report Maize TIKHUR : A Medicinal Food – Soumitra Tiwari, Yashwant Kumar & Hanuman Bobade horticulture – ANWAR HUDA 28 20 current affairs 22 can be a better option for crop diversification: Ashok Gulati Central team visits punjab for crop diversification; Badal wants help pulses report World Pulses Trade Meet – G. Chandrashekhar 24 6 Focus on Dance of Demand & Supply Protein Leaf protein concentrate – Suresh Bhise and Amarjeet Kaur AgriBusiness & Food Industry w May 2013 Medicinal food Horticulture in J&K Kashmir is proud to supply 90% apple requirement of India .... Ghulam Hassan Mir 31 chocolate India & Chocolate Ferrero’s differentiation strategy brings dazzling success – SAGAR MALVIYA & RATNA BHUSHAN 32 NEWS roundup AgriBusiness & Food Industry w May 2013 7 orial Edit I Chief Editor: S. Jafar Naqvi Consulting Editors: T.V. Satyanarayanan Vijay Sardana Chief Co-ordinator: M.B. Naqvi Editorial Co-ordinator: Syed M K News Editor: Anwar Huda Layout & Design: Faiyaz Ahmad Mohd. 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Issue 5 ...... May 2013 8 ndian horticulture is on a growth path. In 2012-13, which was declared as the “Year of Horticulture”, the output of this sector reached all time high of 251 million tonnes. It is in recognition of this high growth, the government has constituted a National Centre for Cold Chain Development, to lend further strength to this sector. According to Economic Survey 2012-13, presented to parliament, 1.67 million hectares of land has been brought under horticulture and high value crops. The credit for spread of horticulture in the country goes to a great extent to the efforts of National Horticulture Mission, the National Horticulture Board and schemes like Horticulture Mission for North East and Himalayan States. The Mission’s activities were spread over 18 states and three Union Territories. The horticulture sector covers a wide range of crops such as fruits, vegetables, flowers, root and tuber crops, aromatic and medicinal plants, spices and plantation crops, facilitating crop diversification, which is being encouraged in a big way. There are incentives aplenty to encourage cereal-growing farmers to diversify their activities and as a result farmers are taking to horticulture production with gusto. Cultivation of fruits and vegetables are no more confined to traditional areas or traditional crops. A visit to popular and prestigious expos like Flora Expo and Foodex shows how progressive farmers are producing crops, which were not a common sight in the markets till recently – like, say, Kiwi fruit, strawberries, red and yellow pepper, broccoli and zucchini. A recent news report gives details of how strawberry farming is getting popular in the northern plains around Delhi as well as in Hissar in Haryana. Gone are the days when strawberry cultivation was confined to hilly tracks of Maharashtra’s Mahabaleshwar area ---which continues to lead in production – parts of Himachal Pradesh and Udhagamandalam in Tamil Nadu. Over 20 farmers near Delhi and adjoining areas, who were earlier cultivating only wheat, rice and conventional vegetables, have diverted part of their land to grow strawberry, which now covers 100 acres. Because of good income that the fruit yields, the area under it has been on the increase year after year. Owning a 30-acre farm having sandy loamy soil by the riverside, a young farmer, who has imported planting material from California, says he is quite happy with the returns accruing from his strawberry plantation. The bulk of his production – like that of many others in this business – goes to big buyers like Mother Dairy, Reliance Fresh and Wal-Mart for sale in their retail outlets as fresh fruit. The rest goes to processing units. Intercropping of strawberries with seasonal vegetables or fruits like watermelons is common among these farmers. They harvest about 10-15 tonnes of strawberries from one acre. Because of the efforts of such farmers in various states, who are vigorously taking to horticulture to augment their income, the per capita availability in the country has increased considerably --- from 350 grams of fruits and vegetables per day in 2001-02 to 522 grams in 2011-12. One of the challenges of the horticulture sector, however, is how to make at least some of the horti produce more affordable for the common people to improve their nutrition intake. Productivity increase could be one solution, so that both the farmer and the consumer are benefited. Research has to play a crucial role in achieving this goal. Comments are welcome at: firstname.lastname@example.org Views expressed by individuals and contributors in the magazine are their own and do not necessarily represent the views of “AgriBusiness & Food Industry” editorial board. AgriBusiness & Food Industry does not accept any responsibility of any direct, indirect or consequential damage caused to any party due to views expressed by any one or more persons in the trade. All disputes are to be referred to Delhi Jurisdiction only. .....Editor AgriBusiness & Food Industry w May 2013 AgriBusiness & Food Industry w May 2013 9 Cover Story Focus India emerges as Hot Destination at IDMA, Turkey on Flour, Semolina, Rice, Corn, Pasta, Feed Milling Machines Bureau Report The globalization of world economy and rapid scientific and technological progress motivate the grain milling machinery manufacturers to develop faster, improve technologies and produce new products to win the confidence of customers and maintain leading positions in the market. This was the reason behind the increased number of exhibitors and visitors this time. The fair proved to be the major negotiating point for international and Turkish milling and grain processing companies 10 T he eyes of the world milling sector seem to be on International Flour, Semolina, Rice, Corn, Bulgur, Feed Milling Machines and Legumes, Pasta, and Biscuit Technologies. This was proved by a cumulative intense focus on these items by the visitors, delegates and exhibitors who took part in the IDMA Fair 2013, held in Istanbul, Turkey, in the first week of April. The AgriBusiness & Food Industry w April May 2013 biggest brands of world milling machines sector presented their latest developments in the fair. Massive PARTICIPATION IDMA Fair, which is organised once in 2 years, was held in 3 halls in a 21,000 square meter area. More than 10,000 foreign and native visitors took part in the 4-day exhibition that saw participation from 120 countries. Debut of 17 countries This time, the debut of 17 countries and significant increase in the number of delegates was a highlight. The Expo also offered a chance to students who are studying in this field to find a good job while interacting with the exhibitors or delegates. A Negotiating Point The globalization of world economy and rapid scientific Cover Story and technological progress motivate the grain milling machinery manufacturer to develop faster, improve technologies and produce new products to win the confidence of customers and maintain leading positions in the market. This was the reason behind the increased number of exhibitors and visitors this time. The fair proved to be the major negotiating point for international and Turkish milling and grain processing companies. It helped them in sharing their experiences in industrial and scientific field. Golden Opportunities IDMA enabled the directors and managers of companies to exhibit their products, directly communicate with the customers, and find new sales markets and partners for conclusions of the agreements. World milling sector being in the first place, all representatives of cereals and legumes sector found the platform a way to connect with each other and reach deals. World milling sector representatives who wished to direct their investments and see the latest technologies of more than 270 brands got everything they expected. Professional visitors representing world flour, semolina, rice, corn millers, pasta, biscuit, investors and feed manufacturers showcased their best to enhance their businesses, apart from seeing and buying the latest technologies developed by leading brands of the sector. Milling Training Program During IDMA 2013, a 14-hour “Certified Milling Training Program” was also arranged for the representatives of milling sector. The trainings were given by the experts of the sector on the topics such as “Raw Material Supply in Milling”, “Storage of Raw Materials”, “Milling Technology and Grinding”, “Performance in Milling”, “Energy Savings in Milling”, “Flour Quality, Quality Control and Flour Additives”, “Wheat and Flour Logistics in Foreign Trade” and “Flour Plant Investment, Investment Feasibility and Management”. Visitors working in flour plant (mill) or milling technologies manufacturing industry got a chance to attend the trainings in Turkish and English. Seminars IDMA 2013, aiming to meet the needs of all parties coming from cereals and legumes sectors, also hosted 4 different seminars for rice, legumes, and bulgur and pasta groups. From product supply to trade, processing technologies to investment and production cost were discussed where expert company representatives and managers of leading nongovernmental organizations in the sector made presentations. Unlike the previous year, the seminars were held in Turkish and English. n AgriBusiness & Food Industry w April May 2013 11 Cover Story Over 30 Turkish Companies Expected to Showcase Technologies at GrainTech India 2013 All Eyes on India Around 40 Indian grain and flour millers were present at the show to explore new technologies, apart from many machinery suppliers representing Turkish companies in India. A delegation from LT Foods was also there, and as per trade sources, they are also planning to upgrade their facilities and are expected to launch a pasta project in India to add more products in their portfolio. LT Foods has recently launched branded atta in the country. The interest in India was visibly clear upon everyone’s face at IDMA. The President of Pasta Industrialists Association of Turkey Murat Bozkurt showed keen interest during his presentation at a conference while answering a question raised by this publication on the possibilities of launching more Turkish pasta brands in Indian markets which is the fastest emerging in the region. In fact few pasta and olive oil brands of Turkey have already been launched through modern retailing chains. Sayfullah, Incharge for Marketing of Silos, MySilos, said, “We are doing 2 turnkey silo projects in South India and are ready to have office and technology support in the country to capture more business opportunities”. Garib of Ugur Group was also excited about their participation in Grain Tech India as they got a turnkey flour mill project namely Maharaja Flour Mills last 12 year which is near completion. The project is based in interior Maharshtra (Jalna). Interestingly an Indian company Shri Vishwakarma (Emery Stones) Industries Pvt Ltd also participated in the show and displayed its automatic and digital chakki plant. R.S. Choyal, Executive Director, Shri Vishwakarma Industries, was happy with the participation and got positive response from neighbouring countries which too traditionally have same category machines in the forms of small flour mills. The company is also going to have a joint venture (JV) with a leading Turkish company in near future as it has a fully green project near Ajmer to make modern silo plants and grain milling solutions. Massive Interest in Grain Tech India 2013 The organizers of Grain Tech India also invited a delegation of TMO (General Directorate of Turkish Grain Board), a department responsible for all grain related import-export. The Member of the Board of Directors and Deputy Director Geberal Ugur ERKAYMAZ showed keen interest and said, “We have a close relation with India. As far as wheat is concerned, India has surplus wheat. The possibilities are immense in pulses as well, as India is one of the biggest importers of pulses. So, hopefully we may send a delegation to Grain Tech India 2013”. The President of All Afghanistan Fortified Flour Mill Association Engr. Mohammad Hashim Ghazniwal, who is AgriBusiness & Food Industry w May 2013 also the Chairman of Unique International Group of Companies, also showed an interest in leading a large delegation of members representing the association. “The overall response for grain Tech India was overwhelming and we are expecting over 30 companies from Turkey, out of which 15 will be first timers. Apart from this, over 100 companies from 20 countries are also expected to take part,” said M.B. Naqvi, Chief Coordinator, Grain Tech India. According to A.A. Kazmi, Vice President, Media Today Group, “An extensive promotion campaign was launched during IDMA to promote Grain Tech India 2013 to invite Turkish grain and flour milling technology exporters to explore vast business opportunities in India”. He further said the participants were extremely curious to know about Indian grain milling sector and the possibilities in the segments of silos and related equipment, and value-added products like pasta. “As per trade sources, Alapala, MySilos and Altuntas got massive business as a result of their last two years’ participation in Grain Tech India. This news was a hot topic during the show and was worth to inspire new exporters to explore vast Indian markets. Indian millers are also giving orders to Turkish companies for the modernization of their plants and also for the adaptation of the latest technology including n automation,” Kazmi added. AgriBusiness & Food Industry w May 2013 13 Cover Story Bühler huge makes a presence at IDMA The new Bühler Vega Performance Grain Classifier MTVA convinces by its high throughput capacities and low energy consumption – up to 50 % energy savings over comparable machines. But Vega is also distinguished in many other respects by its exemplary efficiency. The use of high-grade components results in long maintenance intervals. Even in continuous operation, this keeps maintenance costs low. You can also save time and money when changing its screens, with quick and easy screen changes being possible by one person 14 B ühler made a huge presence at IDMA 2013 at Istanbul, Turkey with a booth size of 338 sq. mts. The massive stall displayed many new product innovations for the grain processing and grain logistics industry such as Vega High Capacity Grain Classifier – MTVA, Roller Mill Antares – MDDR/T, SORTEX A, TAS Universal cleaning machine – LAAB, WinCos Care – Service Management System and Energy saving consultancy. The new Bühler Vega High Performance Grain Classifier MTVA was presented to the specialist public at IDMA, Istanbul, Turkey. Whether wheat, rye, oats, rice, corn/maize, or barley – the new Performance Grain Classifier MTVA promises an exceptional level of performance with minimized energy consumption and a very low space requirement. It owes this performance to its special screen AgriBusiness & Food Industry w May 2013 design and the high kinetic momentum acting upon the screen carrier. The outstanding separation of impurities ensures optimal results for further processing and storage of grain. Amazing energy savings The new Bühler Vega Performance Grain Classifier MTVA convinces by its high throughput capacities and low energy consumption – up to 50 % energy savings over comparable machines. But Vega is also distinguished in many other respects by its exemplary efficiency. The use of highgrade components results in long maintenance intervals. Even in continuous operation, this keeps maintenance costs low. You can also save time and money when changing its screens, with quick and easy screen changes being possible by one person. Perfectly adaptable to your specific needs Depending on the specific design version, the new Vega Performance Grain Classifier MTVA can be applied for cleaning or grading grain. A total of three different cleaner versions have been designed to process a wide range of grain varieties at throughput rates varying between 15 and 200 metric tons per hour. In the product inlet, an optional air-recycling aspirator separates low-density matter and fines from the accept material. The screens can be selected from the screen module to suit a wide range of requirements. A total screen area as high as 28 square meters is available thanks to the horizontal staggering of the screens. Roller Mill Antares – MDDR/T Application Antares is employed in mills processing soft wheat, durum, corn, rye as well as in specialty mills for buckwheat, barley, spelt, millet and sorghum. Cover Story With its roller mill Antares, Bühler is setting new standards in grain grinding. Whether for corn (maize), soft wheat, durum, rye, barley or malt – Antares is the ideal roller mill for all varieties of grain. Antares is employed at mills processing soft wheat, durum, corn (maize) and rye as well as in specialty mills for buckwheat, barley, spelt, millet and sorghum. Perfect Grinding l Uniform distribution of the product and feeding to the grinding rolls creates the conditions for perfect grinding. l The self-contained roll pack excels through its high accuracy of adjustment and grinding stability: Antares – a roller mill providing 100% product safety. l The optimal prerequisite for top product quality and yield. Highest sanitation standards for guaranteed product safety l Stainless steel linings and ingenious insulation and ventilation solutions guarantee highest product safety and sanitation. l Easy access via swing-open panels as well as a swingout feed module allow for quick and thorough cleaning. Extremely reliable – 24h / 365 days l The compact roll pack and innovative frame construction guarantee superior dependability in around-the-clock operation at a constant grinding quality. l Soundproofing of the panels results in significantly quieter operation. Superior design The unique machine design is an attention-grabber in every plant, underscoring the perfection of Antares. SORTEX A – MSOB Application The SORTEX A takes optical sorting to a new level of excellence. This premium optical sorter is designed to offer the highest efficiency and capacity in the market. It is used in the food processing industry to separate input product into two separate output streams on the basis of colour and other optical properties. Equipped with the latest in technology and features; custom designed cameras, pre-stored user defined modes, patent pending feed system and sorting features unique to Bühler, the SORTEX A is for processors who demand the highest quality of product and performance. Maximum capacity for high production requirements l Available in up to fivemodules of 300mm wide chutes to meet the requirements for higher capacity sorting. l The excellent and consistent sorting performance of the SORTEX A minimises product breakage during the production process. This ensures a maximization of profitability. Schmidt-Seeger TAS, Universal cleaning machine - LAAB Application Conditioning and/or cleaning is an essential step at any grain or other bulk goods processing plant. The goal is to optimize the storage life of the grain and improve product quality. This step can prevent disease, improve the process flow and enhance production reliability. Available machine types are TAS 152A-2 / 154A-4 / 204A-4 / 206A-6 and TAS 153A-1 / 206A-2 / 210A-1 / 200A-III. These machines are optimally suited for applications in plants for the reception and storage of grain and other bulk materials, port facilities, mills, silo and storage plants, seed processing plants as well as malting plants. High system availability and high flow rate l Safety equipment, such as the oscillation monitor on the screen box, provides protection against system malfunctions. l Thanks to the large number of screens in limited space and the tested and tried plansifter principle, high throughput rates can be attained while only small space is required. Highest standards in terms of operational reliability and long service life l The machines of the TAS series were developed for continuous operation (24/7) in order to satisfy even maximum requirements. l Perforated screens with sturdy steel frames are kept clear by a serviceproven rubber ball cleaning system. Easy air volume regulation l The continuously adjustable air volume regulation on the machine and a vertical sifter with an adjustable cross-section and inspection window ensure optimum cleaning quality for the products. l In addition, the recirculation of the aspiration air ensures the cost-effectiveness of the cleaning process. WinCos Care – Service Management System Application As a stand-alone software tool, WinCos Care ensures accurate planning and management of scheduled maintenance jobs based on calendar intervals or running hours. Each machine is assigned a specific maintenance card with descriptions of the required tasks. In combination with a plant automation system such as WinCos, maintenance tasks are also based on the individual, actual and current process data. In addition to maintenance planning, WinCos Care also enables and simplifies parts and resource management. Energy Saving Application Bühler offers new ways of improving energy efficiency – without replacing existing machinery. In three simple steps, Bühler process and energy experts show how the customers can save money and reduce the environmental footprint. We initially do the detail plant audit on the saving potential then do validation on the investment, ROI calculations and then go for implementation on site as per the offer we have made. n AgriBusiness & Food Industry w May 2013 15 event report Maize can be a better option for crop diversification: Ashok Gulati Ashok Gulati, Chairman, Commission for Agriculture Costs and Prices (CACP), called for incentivising the farming of maize in Punjab and Haryana, where the agriculture departments are trying to shift the rice area in around 10 lakh hectares to the eastern states over the next few years. He felt that maize cultivation in states such as Haryana would pick up if some of the subsidies given to paddy growers were handed to maize farmers. As a matter of fact, in the Union Budget 2013-14, the Government has earmarked Rs 500 crore to promote crop diversification in states such as Punjab and Haryana 16 Anwar Huda â€œS ince the government is encouraging crop diversification in various states so that farmers may move away from high water-intensive crops to low water-intensive crops, maize can be a better option in high-yielding states such as Punjab and Haryana,â€? said Ashok Gulati, Chairman, Commission for Agriculture Costs and Prices (CACP), at India Maize Summit 2013, recently jointly organised by the National Commodities and Derivatives Exchange Limited (NCDEX) and the Federation AgriBusiness & Food Industry w May 2013 of Industry chambers of Commerce & Industries (FICCI), in New Delhi. The theme of the summit was 'Multidimensional Approach for Outlook, Implications and Perspective'. The summit focused on the issues such as maize-potential and opportunities; growth opportunities in value chain; technological advancements in maize; post harvest management and technological development; risk management and marketing and policy road map for developing maize value chain. event report Gulati added the government should keep the market open and not ban exports of maize to boost its cultivation maize and soyabean have the potential to break the water-intensive rice cropping cycle in Punjab and Haryana, where the Government is trying to promote crop diversification. He called for incentivising the farming of maize in Punjab and Haryana, where the agriculture departments are trying to shift the rice area in around 10 lakh hectares to the eastern states over the next few years. Govt & Industry Presence The Summit saw the presence of several key figures from government and corporate sector and visitors including included end-users. The speakers’ list included Dr Arbind Prasad, Director General, FICCI, Dr J S Sandhu, Agriculture Commissioner, Ministry of Agriculture, Government of India, Sanjay R Bhoosreddy, JS, Deaprtment of Animal Husbandry, dairy & Fisheries, Ministery of Agriculture, Rajiv Yadav (Olam International), Shilpa Divekar Nirula (Monasnto), Raju Kapoor (NSAI), Sanjay Kaul (National Collateral Management Services Ltd.), Vishal Majitha ( Indian Starch Manufacturers Association), Nitin Puri (Yes Bank), Dr Sain Dass (Indian Maize Develoment Association), Atul Chaturvedi (Adani Agro), Amit Sachdev (US Grains Coubncil), Prabhakar Bhode (HDFC Bank), among others. Need for Open Policy “We need a stable, predictable and open policy,” Gulati said adding that India’s maize production is estimated around 21 million tonnes this crop year to June. The public sector interest in maize, which has so far been promoted by the private sector, has picked up in recent times. He felt that maize cultivation in states such as Haryana would pick up if some of the subsidies given to paddy growers were handed to maize farmers. In the Union Budget 2013-14, the Government has earmarked Rs 500 crore to promote crop diversification in states such as Punjab and Haryana. Buy-back arrangement Speaking about farmerindustry connect, Sanjay Bhoosreddy, Joint Secretary, Department of Animal Husbandry, Dairy & Fisheries, the Agriculture Ministry, said that to increases maize production, the industry need to play a key role in helping maize farmers and should try to build a buy-back arrangement to give the farmers confidence. “Maize is a crop par excellence for food, feed and industrial utilization. It plays an important role in animal feed and has a direct nexus with animal husbandry, poultry, fisheries and cattle feed. To improve the yield of maize to meet rising demand, the industry will have to play a key role in providing comfort level to the farmers and should strive Maize exports may dip by one-third this year M aize exports in the current season are expected to be lower by about a third over last year’s record high of 4.8 million tonnes on a lower crop and rising domestic demand. Trade expects maize exports to be in the region of around 3-3.5 mt for the crop marketing year-ending August 2013. “The lower output in the kharif season has already resulted in a decline in exports during the first half,” an official with a multinational exporting firm said. The latest export figures are not available. Maize output in 2012-13 is pegged at around 21 mt on account of lower crop in Karnataka, Andhra Pradesh, Maharashtra and Rajasthan due to erratic monsoons. Last year, the country’s maize output stood at 21.57 mt. Karnataka, Andhra Pradesh and Maharashtra are the three top maize producing States accounting for half of the country’s output. Karnataka accounts for about a fifth of maize harvest, followed by AP at 18 per cent and Maharashtra at 12 per cent. Further, the trade believes that the maize has an export window only for the next two to three months till June-July after which the global supplies are expected to ease. “The rabi maize crop in Bihar, which has been slightly delayed, looks higher by about 20 per cent. There is a potential to export till June-July. With easing global supplies from August and prices coming under pressure, as reflected in the Chicago futures, exports from India were likely to be unviable,” an official from another multinational exporter said. Bihar accounts for about seven per cent of the country’s output of 21 mt. The Chicago corn prices have eased on better planting prospects in the US and Brazil. Reports said corn planting in the US for 2013 is forecast to touch 97.75 million hectares, the highest in 77 years. “Maize is a crop par excellence for food, feed and industrial utilization. It plays an important role in animal feed and has a direct nexus with animal husbandry, poultry, fisheries and cattle feed. To improve the yield of maize to meet rising demand, the industry will have to play a key role in providing comfort level to the farmers and should strive to establish a buy-back arrangement with the farmers,” said Sanjay Bhoosreddy, Joint Secretary, Department of Animal Husbandry, Dairy & Fisheries, the Union Agriculture Ministry AgriBusiness & Food Industry w May 2013 17 event report to establish a buy-back arrangement with the farmers,” said Sanjay Bhoosreddy. Bhoosreddy informed that in the past buy-back has not worked because at times the farmer refused to sell their produce if they received a better offer from someone else or the buyer could not afford to buy at the agreed price. Hence it was suggested that a tripartite agreement was more feasible where government could help in assisting both the parties and took the role of an arbitrator. This could lead to a win-win situation for all. PPP-IAD Under FICCI's Million Farmer's Initiative, which is jointly undertaken by FICCI with the Ministry of Agriculture, Government of India, a policy framework has been developed for public-private partnership for integrated agriculture development (PPP-IAD). The objective of the scheme was to facilitate large scale integrated projects led by private sector players in the agriculture and allied sectors, with a view to aggregating farmers, creating critical rural infrastructure, introducing new technologies, adding value and integrating the agricultural supply chain. The project proposes to cover one million farmers across India during the year 2012-2017 who were involved in spectrum of agriculture and allied sectors to these integrated agriculture projects. FICCI is keen and welcome companies to come forward and submit proposals for maize development under PPPIAD. Role of processing & seed industry Dr. J S Sandhu, Agriculture Commissioner, Ministry of Agriculture, Government of India, said that maize is one of those crops that can be grown in any season and in any environment. But 18 for maize to be able to meet the demand of the future, the processing industry along with the seed industry needs to work in tandem. "Technological breakthrough, quality produce, food security and diversification were some of the ways to improve the production of maize," he added. productivity is just 2 to 3 metric ton per hectare while it is 10 metric ton in Bangladesh. It is due to geographical reasons. He also said that maize is used in biofuel, starch, and liquor. He called for “combined modern agri practices and PPP model” for the better production and use of maize. Post-harvest loss Dr. Arbind Prasad, Director General, FICCI, said, "Besides improving the productivity of maize to match international standards the other challenges that confront the sector are post harvest losses as the storage and harvesting together cause over 50 per cent crop loss before the maize even leaves the farmer." Fill the gaps T. Nanda Kumar, Member, National Disaster Management Authority, said that there are challenges like technology, training and infrastructure that need to be addressed. “We have to focus on right varieties. And value chain is also very important. Climate change affects maize and we need to be aware of that.” He added that India needs crops which can also give green fodder and feed for poultry. And maize fits that bill. “But we need specialized intervention in maize and must fill all the gaps”. “Corn will find its place in Indian thali,” he said at last. Need of Transparency R. Ramaseshan, Managing Director and CEO, NCDEX, said that price transparency and transformation were needed to make the value chain cost effective and efficient. “We should aim at providing a platform for credible price discovery and trading through cost effective state-ofthe-art modern infrastructure,” he stated. Modern agri practices & PPP model Dr. Swapan Kumar Datta, Deputy Director General, ICAR, said in the valedictory session that maize is already an important grain in US, and plays a good role as a feed material in poultry sector worldwide. European countries are using it in their salad, and other food varieties. In India, it can play a big role in fighting lack of nutrition and ensuring food security. It is good in oil content as well”. Talking about poor productivity in India, he said that India’s maize AgriBusiness & Food Industry w May 2013 Hijacking of GM Issue Talking about the GM issue, he said, “The problem is that the debate of science has been hijacked by those who pretend to be scientists but they are not. So we need to take the debate to the scientific level, not social or political level”. But he also appeared sanguine and said that “policies will change”, as farmers must have choices. Conferences The summit also hosted six technical sessions giving industry experts to deliberate the burning issues of the maize and grain sector like problem of storage, lack of value chain, export issues, etc. The topics included: Maize: event report Potential and Opportunities-global and domestic scenario, future challenges and role of India in global trade, Maize as Industrial Raw Material: qualitative and quantitative and financial challenges in sourcing, Growth Opportunities in Value Chain: Prospects of food and Feed vis-à-vis supply of maize as raw material, Technological Advancements in Maize and Synchronization with Industries, Post-harvest Management and Technological Development, Risk Management and Marketing, and Road Map for Developing Maize Value Chain. Profits are in bulk storage The panelists felt that real-time information is necessary to avoid potharvest losses. “Bulk storage is the future and the profits are in the bulk storage,” said Shyamalal Gupta, CBO, NCMSL. Abhishek Gandhi of Shree Shubham Logistics Ltd. said that silos are critical to the sector. He stressed on focusing on the primary stage as a lot of wastage happens there. Gupta said that we need both big and small capacity of silos to suit the different needs. Sareen stressed on proper drying of grain before storing. “Humidity is the main enemy,” he said. Aeration to keep grains healthy Vikas Srivastava of SCAFCO, talked about aeration technique to increase the quality life span of the stored grain. Atul Chaturvedi said that we need technology to tell us what is happening to the grains inside the silos. He expected that the government will release tenders to add more capacity to warehousing. Chaturvedi called for ‘cooperation’ to strengthen the industry and boost maize production. Risk Management Amit Sachdev focused on risk management and said that risk and its management is what differentiates profit from loss. “We need solutions to fight uncertainty”. APMC Act Sanjay Saran, Director, Agri Marketing, Ministry of Agriculture, Govt of India, said that farmers’ interests are top most important as government cannot take any step which may harm them. “Farmers should get higher remunerative prices bur buyers should also get benefits”. He said that many states have adopted APMC Act and some did not. They are free to modify it. Bihar repealed this act. “12th Plan will focus on APMC Act,” he said. In industrialized countries maize is largely used as livestock feed and as a raw material for industrial products. As agribusiness in India continues to expand, the sourcing industry has the potential to be a power player in maize growing industry. Tripartite agreement The experts unanimously felt that a tripartite agreement is needed among industry, farmers and government to make maize value chain cost effective and efficient. n AgriBusiness & Food Industry w May 2013 19 Current affairs Central team visits Punjab for crop diversification; Badal wants help The Chief Minister of Punjab Parkash Singh Badal reiterated that the State Government was committed to shift a major chunk of its cultivable area under paddy to maize, oilseeds, pulses, vegetables, sugarcane, basmati, fruits and flowers over a period of next three years. He also asked the Chairman of Punjab State Farmer’s Commission and Financial Commissioner Development (FCD) to explore the possibility of giving subsidy on the Sprinklers for drip irrigation and dryers for maize A team of Union Agriculture Ministry recently visited Chandigarh and held discussions on crop diversification with the Punjab government. "The central team discussed ways to promote crop diversification in Punjab," state agriculture department director M S Sandhu said. The Central team was led by Mukeh Khullar, Joint Secretary with the Union Agriculture ministry and discussion revolved around working out modalities to successfully implement crop diversification by replacing paddy with other crops, he said. From Punjab side senior officials of Agriculture Department, Punjab Agricultural University and Punjab State Farmers' Commission participated in the meeting. The Central team visit to Chandigarh came on the heels of meeting between Chief Minister Parkash Singh Badal and Union Agriculture Minister Sharad Pawar in Delhi some time ago. Badal in the meeting had impressed upon the Union Agriculture Minister to sanction Rs 5,000 crore for launching diversification programme in the state. Badal had termed Rs 500 crore allocated by Union Finance Minister P Chidambaram in Union Budget 2013-14 for crop diversification as "too little and inadequate”. Badal wants help Emphasising on the need for crop diversification, Punjab’s Chief Minister Parkash Singh Badal called upon the visiting Central team of agriculture experts to help the State in formulating a multi-pronged strategy to bring out the farmers from the rut of wheat-paddy rotation on one hand and supplement 20 their income on the other. Badal was presiding over a day-long series of meetings with various groups of farmers including cotton and sugarcane growers; citrus, fruits and vegetables growers, floriculturists, dairy and fish farmers; agriculture marketing experts and self help groups. Farmers interested in allied farming — Fishery, Bee Keeping, Goatry, Piggery and similar also participated. The meeting was held to elicit their views after discussions on diversification of agriculture and seeking their vital inputs for modifications in the draft agriculture policy towards a second push for ‘Green Revolution’ in terms of crop diversification. The Chief Minister apprehended that constant decline in margin of profits in the wake of higher agricultural inputs has resulted in negative agriculture policies which must be rectified without any delay otherwise these would further push the distressed farmers in debt trap. He asked the Central team to judge by themselves the pathetic condition of farmers who had personally narrated their woes in front of them and they must prevail upon the Union Agriculture Ministry to enhance substantial funds for crop diversification as the paltry sum of Rs 500 crore sanctioned for it was insufficient to undertake this gigantic task. Badal asked the Co-operation department to formulate a scheme to advance loans to the farmers especially for Goatry, Piggery and Fishery. He also asked the Poultry farmers to come up with concrete proposals to give much needed fillip Poultry in the State. He rued that Punjab which had once led the country in ushering Green Revolution in the mid 1960s was now on the threshold of agricultural decay. AgriBusiness & Food Industry w May 2013 Therefore, he solicited Centre’s help to bail out the dejected farmers in this hour of crisis. He apprised the team that the Punjab Government had already drafted an agricultural policy aimed at bringing crop diversification in the State which could only be possible with the active support and co-operation of the Government of India. The Chief Minister reiterated that the State Government was committed to shift a major chunk of its cultivable area under paddy to maize, oilseeds, pulses, vegetables, sugarcane, basmati, fruits and flowers over a period of next three years. Interacting with the farmers, Badal urged them to dig tanks for water storage installed with Solar Pumps for irrigation purposes. He also asked the Chairman Punjab State Farmer’s Commission and Financial Commissioner Development (FCD) to explore the possibility of giving subsidy on the Sprinklers for drip irrigation and dryers for maize. Likewise, the Chief Minister also asked the Vice Chancellor, PAU to work out a detailed proposal to be sent to the Union Government for recommending MSP for Maize to enable the Punjab farmers to switch over to it, which was far more profitable and less water intensive crop as compared to paddy. He also asked the central team to incentivize the cultivation of Pulses, Maize, cotton, sugarcane besides promoting horticulture and AgroForestry in a big way by giving handsome subsidy to the farmers for the purchase of equipment and machinery used in various farm operations. All top officials of various departments attended the meeting. A strong central team from various ministries and departments too participated in the deliberations. n AgriBusiness & Food Industry w May 2013 21 Pulses report World Pulses Trade Meet Focus on Dance of Demand & Supply G. Chandrashekhar W ith nearly 1,000 delegates streaming in from over 50 countries to discuss latest developments in the world pulses sector and crystal-gaze into the future, the atmosphere here (Singapore) at the annual meet of International Pulses Trade and Industry Confederation (CICILS-IPTIC) is one of heightened expectation. Producers, processors, industrial consumers, traders and related others are keen to know from specialists what the market holds for them in 2013-14. Experts are slated to discuss a wide range of topics over the next three days including global pulses demand and supply outlook, global food security from health and nutrition perspective, product innovation, emerging markets and global influences, and specific product-wise panel discussions. A cross section of traders and millers said that the world market was adequately supplied this year and therefore, the opportunity for a bullish trend was rather limited. At the same time, supply stress can develop in case of specific crops such as lentils in the coming months. CICILS-IPTIC is attempting to get 2016 declared as the International Year of Pulses by the United Nations. According to Hakan Bahceci, President of the confederation, pulses play a vital role in advancing the world’s food and nutrition security, and their role assumes greater importance for developing or poor countries that face pervasive malnutrition or under-nutrition. India, the world’s largest producer, importer and consumer of a wide range of pulses, is obviously a focus of attention at such events, especially for exporting countries such as Canada, Australia, US and Myanmar. India’s pulses production in 2012-13 is an estimated 17.7 million tonnes (mt), up from last year’s 17.1 mt. India’s annual imports of pulses are estimated at about 30 lakh tonnes valued at over Rs 9,000 crore. 22 For 2013-14, the Government has fixed a production target of 19 mt, with specific measures including crop diversification and mixed cropping. A steady increase in minimum support price in the last three years has provided some encouragement to growers. Market participants are also wondering as to when India will start exporting pulses in an unrestricted policy environment. South Asian countries such as India, Pakistan, Bangladesh and Sri Lanka are all importers of pulses. Aggregate world production of major pulses covering field pea, dry bean, lentil and chick pea is expected to slightly improve in 2013-14 compared with the current year, according to experts participating at the International Pulse Trade and Industries Confederation annual convention here (Singapore). During a discussion on world pulse demand and supply outlook, field pea production for 2013-14 was estimated at 10.8 million tonnes (9.9 mt) with major origins Canada, Russia, France, United States and Australia producing more. World dry bean production was estimated at 21.3 mt (21.2 mt) with improved output in China and Brazil, but AgriBusiness & Food Industry w May 2013 lower in the US. However, world lentil production is projected to be slightly lower at 3.67 mt (3.73 mt). In case of chick pea (desi), production is seen up at 9.7 mt from 9.4 mt. in 201213 following a huge spurt in Pakistan crop. FIRM PRICES FORECAST While lentil prices are expected to remain firm given the supply shortfall and firm demand, many speakers forecast firm and rising prices for all pulses during the year. However, data suggest that the market is going to be fairly balanced and therefore prices are likely to stay more range-bound, according to others. India, mover and shaker of the world pulses market, has set a production target of 19 mt for 2013-14 compared with estimated production of 17.6 mt in 2012-13. Several measures to boost output have been initiated. Timely onset and steady progress of South-West monsoon – June to September – will be a key driver of market sentiment. n AgriBusiness & Food Industry w May 2013 23 Protein LEAF PROTEIN CONCENTRATE Suresh Bhise and Amarjeet Kaur L eaf protein concentrate (LPC) is a concentrated form of the proteins found in the leaves of plants. It has been examined as a human or animal food source, because it is potentially the cheapest, most abundant source of available protein. Although humans can derive some protein from the direct consumption leaves as leaf vegetables, the human digestive system would not be able to deal with the enormous bulk of leaves needed to meet dietary protein requirements with leaf vegetables alone. The LPC contains protein prepared from disrupted plant cell. Then juice is heat coagulated into green chloroplastic LPC or white cytoplasmic LPC. LPC may used in vegetarian dishes or supplementary food. It has high protein content, high unsaturated fats, carotene, xanthophyll, starch and minerals such as iron, Calcium and phosphorus. The LPC used in animal feeds for swine, calves, chickens and fish (Hussein et al 1999). The leaf protein should be a better supplement to a protein-deficient diet than most of the seed proteins, and should be as good as the animal proteins, apart from those in egg and milk, which are the end-product of several million years of adaptation to the feeding of young animals. Leaf protein would be made from leaves that are the by-product of some other crop. In the temperate zone the obvious sources are pea and bean haulms from canneries, and the tops from early potatoes and sugar-beet. Because the protein is washed, both neutral and acid, leaves that are toxic in the raw state, can be used. In the tropics there are potentialities in jute, ramie and sweet potato. In some regions cotton, groundnut and sugar-cane might be used. The last is interesting because of its abundance, but sugarcane tops contain little protein and are very tough. Sources Lucerne concentrate Lucerne is, among the legumes, the plant with the highest yield of crude protein/ha: 2000-3000 Kg, i.e. 3 times more than soya, twice that of peas and 4 times more than wheat. But because of its content of cellulose, hemicellulose and lignin, fibres are scarcely digestible by monogastrics, dried lucerne in unsuitable for compounds for certain young high performance animals (hens, chicken, calves, piglets). This is why in France a concentrated protineaceous extract of lucerne is made before the traditional drying process. The principle lies in heat coagulation of the proteins (precipitation of protein at high temperature). The product has a cellulose content reduced to 1-2 %, it is rich in protein (50-60%) and in trace elements like vitamins, xanthophylls and carotenoid pigments. Industrial process Pulping and pressing of lucerne 1. Immediately after cutting, the lucerne is pulped and pressed forcefully to separate a large part of the nutritional factors from the indigestible fibre. 2. This stage also limits hydrolysis of cellular proteins by proteases. 3. The nutritional elements, consisting principally of chloroplastic and cytoplasmic proteins, pigments and vitamins, are recovered in the green juice expressed. 4. The co-product of this green juice, the ligneous and cellulosic bits of the stalk and leaves, is dried and used as fodder. The nutritive value is improved because of the shattering of the stalk fibres. Heat coagulation of protein 1. The green juice, adjusted to pH 8.5 to slow down the action of phenyloxydase and to improve the 24 AgriBusiness & Food Industry w May 2013 Protein structure of the coagulum, is preheated and then brought to 85-90° C by steam injection. 2. This causes coagulation of almost all the proteins with which are entrained the pigments, fat-soluble vitamins, lipids and minerals. Separation of the coagulum 1. The coagulum is centrifuged from the rest of the solution (brown juice). 2. This curd contains more than 50 % of crude protein of which 80 % is true protein, accompanied by some free amino-acids or peptides. 3. Heat coagulation extracts on average 8 % of the original DM of the crop and 20 – 25 % of its protein. Drying and storage 1. The curd, as paste, having been mechanically separated from most of the brown juice is dried on a fluidised bed. 2. The PX Super is pelleted and stored in sealed silos’ cells under inert gas, awaiting distribution. 3. For human feeding, the product called Extrait foliaire (Leaf concentrate) is crumbled. 4. The crumbs (on average with moisture content of 8%) must be kept dry, away from air, heat and light. They are bagged hermetically immediately. 5. To protect pigments and vitamins an antioxidant is added. 6. For animal feed : Ethoxyquin (150 mg/kg) 7. For human feed: Ascorbic acid (500 mg/kg). Co-product usage 1. The brown juice, still containing 13 – 15 % of the original DM (soluble N, mineral salts and sugars, mainly) is mixed with the fibrous residue. Table: Composition of lucerne leaf concentrate Components Moisture Crude protein Fat Glucides Fibre Minerals Vitamins Contents (g per 100g) 8 50-60 9-10 6 6 13-14 0.09 2. The mixture is dried in high temperature air in a rotating drum. 3. The co-product is ground, pelleted and stocked for marketing. 4. It contains 16-20 % protein, 25-30 % cellulose and 100-150 mg carotene/ kg. It is excellent fodder for cattle and rabbits. Village production 1. Using a simplified system applicable in developing countries. 2. Lucerne is washed, straight after harvest, in clean water, 3. It is then pulped and pressed in cheap and simple machines that can be made in good local workshops, 4. The green juice containing the proteins is brought quickly to the boil. 5. The floating protein curd is creamed off and then pressed to dewater it. 6. The moist cake obtained can then be eaten directly or be dried, crumbled and kept in sealed packets. 7. The co-product fibre can be used fresh by animals or sun-dried for later use. 8. The brown juice can either be drunk by animals or used as fertiliser. 9. The quantity of protein recovered in this way is somewhat lower than that achieved industrially (about 5 %). 10. The pressing is much less effective. 11. LC is dried. Use of LC as animal feed 1. This LC, called PX 1 has been used in France since then and is given to particular types of animal. It is nutritionally effective for monogastric animals such as the pig, due to the low content of indigestible fibre and richness in protein, vitamins and pigments (See Table). 2. Used as the poultry for its pigmenting ability (for the coloration of chicken flesh and egg yolks). Energy value LC 1. Gross calorific value: 4700 kcal/kg. 2. Metabolisable energy (poultry) : 2600 kcal/kg 3. Metabolisable energy (pigs) : 3700 kcal/kg Leaf protein would be made from leaves that are the by-product of some other crop. In the temperate zone the obvious sources are pea and bean haulms from canneries, and the tops from early potatoes and sugar-beet. Because the protein is washed, both neutral and acid, leaves that are toxic in the raw state, can be used Advantages 1. It encourages height and weight gain. 2. It raises Hb levels and reduces or eliminates anaemia. 3. It raises serum retinol levels and thus prevents the maladies associated with vitamin A deficiency. 4. It encourages normal brain growth in children. 5. It improves general clinical status and lowers both the frequency and severity of infections. 6. No long term side effects have been found. Sweet Potato The sweet potato leaves used as a source of vegetabe protein and xanthphyll pigment. The leaves were pulped and blended with water. The juice extracted with hydraulic press. The juice is heated to 830C, then cooled and centrifuged. The depending upon the age of plant, from 32-49% of the total cude leaf protein (N x 6.25) is recovered in the pellet. Dried leaf protein concentrate contained 35-45% protein and 0.12-0.15% xanthophyll. They are rich in Ca, Mg, Fe, Mn and Zn. The amino acid pattern is deficient in sulfur amino acid. The amino acid pattern does not change with age of plant. Xanthopyll does not destroy enzyme system in the leaves. Cassava Leaves Cassava leaf yields about as much AgriBusiness & Food Industry w May 2013 25 Protein Vijay Sardana joins AgriBusiness & Food Industry as Consulting Editor A griBusiness & Food Industry team feels pride in having Vijay Sardana as a Consulting Editor from this issue. Given his ocean-deep knowledge of agribusiness and commodity sectors, it is more than certain that the publication will be more enlightening henceforth. Vijay Sardana is Post Graduate from IIM-A, CFTRI and ILI and is also Management Committee Member of Solvent Extractors Association of India (SEAI), Life Member of Indian Dairy Association (IDA), Member of Editorial Board of â€œProcessed Food Industryâ€?, besides members of other important associations and professional bodies and currently Head, Food Security Initiatives & Agribusinesses (Policies and program), UPL Group, Mumbai and Director, Achieversâ€™ Resources, New Delhi, with experience of more than 20 years in various leadership positions, committed himself for the development of efficient and fair commodity markets and globally competitive agribusinesses through his knowledge, experience, insight and determination. He has contributed extensively for the development of commodity markets and value addition in agrocommodities by implementing the concept of global competitiveness. His understanding of complex dynamics of commodity markets and agribusinesses is a great asset for investors, professionals, executives, farmers and policy makers. n 26 as 4.60 tonnes dry matter per hectare may be produced as a by-product at root harvest. Cassava leaves contain an average of 21% crude protein but value ranges from 16.7- 39.9%. Cassava leaves are a good source of minerals. They are rich in Ca, Mg, Fe, Mn and Zn. Cassava leaves are also rich in ascobic acid and vitamin A and significant amount of riboflavin. The availability of amino acids ranging from 55% for valine and isolucine to 84% for serine (Ayodeji et al 2005). Simple sun drying remove almost 90% of the initial cyanide contain from cassava leaves. When combined with chopping and wilting, cyanide in the dried mea reduced to level which safer for monogastric animals. This reduction is due to the action of endogenous linamarase on glucosides for loss cell integrity or tissue damage (chopping). The free tannin contents of cassava leaves lowered during drying. Chopping: Leaves can be chopped manually or by means of a mechanical chopper. Leaves may also be bruised instead of chopping. Chopping not only increase cyanide elimination but also shorten the drying time. Wilting: Leaves need be wilted by spreading out in shade or in a room with cross ventilation. Leaves must be turned over regularly to avoid fermentation and foemation. Drying: Wilted leaves should be uniformly distributed in the drying floor and turned over as necessary. Once 12% moisture level is reached the dry leaves can be preserved either in the form of leaf meal or pellets. Processing has little influence on the crude protein content of the leaf meal. Storage: No molding or insect infestation after 8 month of storage. The cyanide contain decreases during storage but gradually decrease in the protein content. Feeding Value: The factors such as high fibre and cyanide limit their use as major source of protein. This can be eliminated by juice extraction and steam coagulation. Cassava leaf protein contains a high level of crude protein, good amino acids and low residual cyanide, nutritional evaluation has shown poor animal performance. AgriBusiness & Food Industry w May 2013 Water Hyacinth 1. Leaf protein is extracted from water hyacinth and from 16 other aquatic weeds in Thailand. The leaves have 22.6%, those of water glory had 29.4 and cashew leaves contained about 4.3%. 2. The extraction of leaves at 8.5 pH suitable for water hycianth (Rajanee et al 1993). 3. The water hyacinth protein processed into leaf protein concentrate (LPC) using acid and thermal precipitation at pH 4 and 820C. 4. The precipitated LPC is rinsed and dried at 600C. 5. Chemical analysis of water hyacinth LPC shows 55.4%, 3.1% fatty acids, 1% fiber, 5% ash and 53.5% carbohydrate. 6. It is rich in essential amino acids like leucine (5.1%) and phenylalanine (3.4%). Tobacco Leaf 1. A tobacco leaf protein concentrate (TLPC) from bidi tobacco leaves was prepared by a heat coagulation method which contained 52% protein and was free from nicotine and polyphenols (Parameswaran et al 2005). 2. When TLPC was fed to weanling wistar albino rats to supplement 25% of the dietary protein, the growth of the animals was found to be comparable to control animals. 3. Reproductive performance of male and female rats fed with the TLPC supplemented diet was normal and no histopathological changes were seen in their tissues. Health issues Leaf protein is a good source of amino acids, with methionine being a limiting factor. Leaf proteins can also be rich in polyphenols. The challenges that have to be overcome before LPC becomes a viable protein source for humans include the high fiber content and other anti nutritional factors, such as phytate, cyanide and tannins. (The authors are from the Department of Food Science & Technology, Punjab Agricultural University, Ludhiana) medicinal food Tikhur : A Medicinal Food SOUMITRA TIWARI, YASHWANT KUMAR & HANUMAN BOBADE T ikhur (Curcuma angustifolia) is a rhizomatous herb. It is also known as east Indian arrowroot, Bombay arrowroot, Tavaksira in Sanskrit, Tikhur in Hindi, Keturi Halodhi in Bengali, Yaipan in Manipuri, Tavakeera or Tavakila in Marathi, Koova powder in Malayalam, Ararutkilangu or Ararutkizhangu in Tamil, Koove-hittu in Kannad. Tikhur is a medicinal plant native to central India, distributed in the West Bihar, North Bengal extending to Maharashtra and South India (Bhandari, 1992). The edible rhizome rich in starch content is processed to obtain tikhur flour which is cooked in different forms and preparations and consumed in many parts of India (Ambasta, 1986). Plant Characteristics An erect slender branched herb grows 90-180 cm in height with fleshy cylindrical rhizome. The leaves are ovateoblong or ovate – lanceolate, 30-45 cm long and 5-8 cm broad, with rounded base and acute tip. Flowers are pinkishwhite, 2 cm long, in clusters. Medicinal Value Acharya Vagbhata has mentioned it as a remedy for raktapitta, tuberculosis, asthma, cough, burning sensation of the body, distaste and as an alleviator Fig.1: Wild tikhur plant of pittadosha. It is an excellent diet in the form of conjee (gruel) in cases of dysentery, dysuria, gonorrhoea etc. Dried rhizome powder mixed with goat milk and sugar is administered for the treatment of dysentery and fever (Ray et al 2011). It also possesses aphrodisiac, astringent, emollient, expectorant, refrigerant, diuretic, nutritive, sweet and tonic properties beneficial for human consumption in one or the other forms. Value Addition This most popular edible medicinal plant tikhur still a wild plant in India. It is used in the preparation of many products such as burfi, milk shake, jalebi and halwa at domestic level especially during vratas, fastenings and celebrations (Tiwari et al 2012). High digestibility of starch makes it an excellent source of food for infants and invalids. The fresh rhizomes of tikhur are used for the preparation of starchy flour which has medicinal value and effective for many diseases.. The starch obtained from the rhizomes is highly nutritious and easily digestible, therefore, it is recommended for infants, weak children and invalids. The tribal farmers prepare herbal drink ‘sarbat’ using tikhur starch especially during summer seasons with an understanding that it works as cooling agent for the stomach and human body. Tikhur Processing In traditional practice, fresh rhizome bulbs were cut and washed thoroughly with running water and simultaneously peeled out. The peeled rhizomes were rubbed on a rough surface stone or sieve. The obtained paste was added with water in the ratio of 1:2 to make solution and passed though muslin cloth. Supernatant part of the solution remained on the cloth was thrown away as the waste. The filtered solution of tikhur powder was collected in an earthen pot. This solution was kept for about 4 to 6 hours to allow settling of the powder particles. Powder mass was settled down in earthen pot and as sediment. The decanting of water was done initially after 6 hours. The process of decanting was repeated 8 times till the bitterness taste was not experienced. Table : Proximate Compassion S. No. Constitutes 1 Moisture 2 Protein 3 Fat 4 Total Carbohydrate 5 Ash Percentage (%) 13.0 1.6 0.9 83 1.2 It has been observed that the traditional knowledge on wild food plants like Curcuma angustifolia and its ethnic preparations is on sharp decline. Unless efforts are made to educate the younger generations about their importance, it may be lost in near future. Efforts should make from every end to improve the food security in rural areas and in the improvement of wild food status, whose potential as source of nutrition is currently undervalued. Steps are needed to undertake extensive education about their importance as a nutritionally balanced food and as a direct and indirect source of income particularly for the resource poor families. Therefore, it is an area that warrants initiation of studies on postharvest management and value addition of this precious produce. (Soumitra Tiwari and Yashwant Kumar are from the Department of Food Processing and Engineering and Hanuman Bobade from Department of Food Science and Technology, Punjab Agricultural University, Ludhiana) Fig.2,3,4: Tikhur halwa, barfi and Jalebi respectively AgriBusiness & Food Industry w May 2013 27 horticulture Horticulture in J&K Kashmir is proud to supply 90% apple requirement of India .... Ghulam Hassan Mir S tating that agriculture sector has been incentivized, the Minister for Agriculture Production Ghulam Hassan Mir recently said that Kashmir valley is proud to cater to the 90% apple requirement of the Indian population. â€œIt is our duty to launch latest post-harvest projects under private and public sector to full fill the demand of the market which would help the growers as well,â€? he said while replying to the discussion on demand of grants of his department. He said that three cold stores are functioning in valley and four more are in pipeline. Fruit exports He said that the turnover on account of export of fruits of the state has reached a level of Rs 4200 crores as on date. Saying that there is tremendous demand of high-density fruit plants among the farmers, the Minister called upon all the legislators to motivate the educated youth of their respective areas for the development of high- density 28 nurseries of fruit plants for which the horticulture department is providing incentives under various centrally sponsored schemes. He said Government has launched multi-pronged strategies to promote agriculture and its allied sectors on scientific lines. Crop diversification He said as agriculture being the backbone of Stateâ€™s economy, all the resources are being pooled to give fillip to production and productivity. The Minister said that the Department has shifted its focus from the cultivation of food grains to total diversification in agriculture produce. The Minister said that high income generating crops like fruits, flowers, vegetables, medicinal plants and allied activities like sericulture have been incentivized and encouraged. He said this will increase agriculture income and help to generate gainful employment in farm sector. Exempting tax Mir also said that the present Coalition Government has given special focus to this important sector by exempting tax on most of the agriculture inputs for the benefit of farmers. He said that to make agriculture AgriBusiness & Food Industry w April May 2013 and its allied sectors profitable, thrust has been given to introduction of latest agritechniques and use of farm machinery in farm sector to lower the production cost. Kisan mela He said in this direction Kissan Melascum-Farm machinery exhibition are being held at district level in first phase and now directions has been passed to conduct such melas at Panchayat level to make farmers aware about latest techniques and its utilization at their doorstep. Plant research The Minister said that first time a mechanism has been adopted for close coordination between research and extension departments of SKUAST with agriculture and its allied sectors to percolate the benefit of new crop and fruit plant research to common farmers. He said that stress is being given to revival of indigenous varieties of the State, adding that SKUAST-K has launched a pilot project for Muskbudej and Kambad for its revival as it has huge market potential at national and international level. He said that steps are being taken to bring other indigenous varieties under this ambit. Seed replacement With the strenuous efforts of Horticulture The agriculture mINISTER of J&k said the Department has shifted its focus from the cultivation of food grains to total diversification in agriculture produce. HE said high income generating crops like fruits, flowers, vegetables, medicinal plants and allied activities like sericulture have been incentivized and encouraged agriculture department, Mir said Seed Replacement Rate (SRR) of the State has gone up over the last four years from 10% to 24.78% in Paddy and from 10.79% to 29.77% in wheat and efforts are on to reach the level of 33%, the national benchmark. Focus on saffron Saying that saffron is heritage cash crop of the J&K, the Minister said that an ambitious National Mission for the rejuvenation of saffron in the State, with an investment of Rs 372.18 crores has been launched. It is expected that production of saffron would double in the State by the end of four years. He said under the mission more and more areas are being covered under the saffron cultivation and SKUAST-K has been asked to find the feasibility of other areas in valley where this heritage crop would be cultivated for boosting the rural economy. Procurement Mir said that Department of Agriculture, Jammu has taken up market intervention for the last two years to prevent distress sale of their food-grains produce by farmers. He said Agriculture Department Jammu facilitated an all-time high procurement of 92,499.45 quintals of wheat grains and 36,118.95 qtls of paddy grains by FCI with the active involvement of the CAPD Department. Productivity The Minister said the Chakroi Seed Multiplication Farm is being developed and upgraded at a cost of Rs.30 crores in Jammu Division for production of high quality Basmati seeds of traditional variety of R S Pura. Besides in order to further increase the production/ productivity of local Basmati variety of R S Pura, measures are also being taken under various Centrally Sponsored Schemes like Rashtriya Krishi Vikas Yojana, National Food Security Mission and Macro Management of Agriculture. So far an amount of Rs 11.5 crore stands utilized on this account, he added The Minister said under Command Area Development, 16 projects are under execution in J&K State with total command area of 1,68,922 hectares, out of which 69,536 hectors have been covered by way of construction of field channels and field drains. Sericulture Saying that Sericulture continues to be a subsidiary occupation for rural families of the State, the Minister said annually 900 MTs of cocoon are being produced to generate an income of Rs 11.93 crore for silkworm rears. The income generation has shown an increase of 24% over the previous years. Infrastructure Underlining the importance of Horticulture in boosting the rural economy, Mir said that there is a need to focus on infrastructure for post harvesting as it is only way to compete with international market. He said the State Government is providing funding for creation of postharvest infrastructure. Commercial floriculture Underscoring the need to develop the floriculture on commercial lines, The Minister asked the youth to opt it as a profitability activity as the department has adopted commercial floriculture which include providing of financial and technical assistance and development of post-harvest facilities and marketing channels for the benefit of the growers. He said sufficient progress has been made in cultivation of various kinds and varieties of cut flowers like Carnation, Lillium, Gladolus, Marigold and Tulip. Mir said commercial floriculture is picking up fast in both the divisions of the State adding that the area under cultivation has increased to 350 hectares during 2012-13 with annual turnover of about Rs.14.50 crores. Earlier, the Minister moved that a sum of Rs. 1151.97 crores be granted to the Government to defray the charges which will come in the course of payment during the year ending March 31, 2014. Food & fruit Processing potential Minister of state for Industries & Commerce, Sajjad Ahmad Kichloo recently underlined the significance of food processing industry in Jammu & Kashmir, stating that the sector has the potential to become beacon of industrial development in J&K. The Minister said this while inaugurating a seminar on â€œNational Mission on Food Processing and Capacity Buildingâ€?. More than 100 entrepreneurs participated in the seminar. The AgriBusiness & Food Industry w May 2013 29 horticulture Middlemen affecting Kashmir apple trade: Nabard Survey K ashmir’s acres of undulating apple orchards may soon be waste lands, according to a survey by the National Bank for Agriculture and Rural Development (NABARD). The Rs. 4,000-crore industry has been brought to its knees by a network of middle-order market functionaries comprising pre-harvest contractors (PHCs), commission agents (CAs) and wholesalers — who are the real and the only assured beneficiary of the Valley’s apple produce, not the farmers. The survey on “Marketing System and Price Spread of Apple in Kashmir” may compel Reserve Bank of India (RBI) to reframe its guidelines and directives to the financial institutions in Jammu and Kashmir as it has shown that the banks have been continuously “encouraging feudal system and usurious lending by commission agents” in violation of rules and regulations. Burdened by the usury imposed by PHCs and CAs, the grower ekes out a marginal income despite the end-user in Delhi, Mumbai and Bangalore buying the product at three times the cost. The Kashmiri grower is constrained to sell the apples at just Rs. 40 or Rs. 45 a kilo – Rs. 5 more than his production cost — but the consumer in Mumbai pays between Rs. 90 and Rs. 120. According to the survey, there are around 3000 CAs — 250 in Parimpora (Srinagar), 250 in Narwal (Jammu) and 2,500 elsewhere in Kashmir division. The Fruit Mandi of Sopore, known as APMC Market Sopore, which is Asia’s largest fresh fruit market after Azadpur in Delhi, has 500 CAs. The wholesalers and CAs, mostly based in Delhi, employ the local PHCs for the purpose of making the growers “captive” and “distress sellers”. The survey calls the modus operandi as ‘interlocking of informal credit and output markets’. It has been significantly pointed out that in flagrant violation of the Jammu and Kashmir Agricultural Produce Marketing [Regulation] Act of 1997, even in 2012 it is the grower in valley who is forced to pay commission to the CA in Delhi for forwarding and trading of apple. It is the other way round in the rest of the country. 30 AgriBusiness & Food Industry w May 2013 programme organized by SIDCO in association with National Skills Foundation of India was aimed to make entrepreneurs aware about National Mission on Food Processing and to train and sensitize them on vital issues related to food processing. Commissioner/Secretary, Industries & Commerce, Shant Manu, Director, Union Ministry of Agriculture, Ravi Kumar, CEO of National Skill Development Foundation, Satyendra Arya, Director Industries & Commerce, Jammu, Gulzar Qureshi, MD SIDCO, Muhammad Muazzam and MDs of J&K Cements, SICOP, JKI, EDI & KVIB were present on the occasion. Addressing the gathering, the Minister emphasized the need to provide fillip to the food processing sector by making certain technical interventions to boost the industry, an official statement said. “The topography of the state is conducive to support food processing industry provided we make a few effective technical interventions. Capacity building and use of modern technology can go a long way in the growth of food sector in the State,” he added. The Minister also said the sector offered huge potential in terms of employment generation. “The Food Processing Sector contributes 7 per cent to the country’s GDP and provides employment to about 13 million people directly,” he said, asking the youth to lap up the opportunities in this growing sector. Referring to the strong advantages the State has in terms of climate and soil, the Minister urged the prospective entrepreneurs to focus attention on fruit processing sector. “J&K is the highest temperate fruit producing state in the country. After tourism, the fruit industry is the most important industry in the State. So we have no dearth of quality raw material available with us,” he said, adding the diverse agro-climatic conditions facilitated growth of different kinds of fruits and vegetables. Calling upon the participants to make use of the training to be imparted by experts in food processing during various Technical Sessions, the Minister said under National Mission on Food Processing, funding and loans to set up new food processing units and modernization of existing units will be provided. Earlier, in his address, Shant Manu, gave detailed description of the package of incentives being offered to the entrepreneurs in the State. He informed the Minister about the collaboration of the State Industries Department with National Skill Foundation of India and various other Central Government agencies to increase the capacity of the entrepreneurs. Czech to help Kashmir’s farmers Ambassador of Czech Republic, Miloslva Stasek recently met Minister for Agriculture, Ghulam Hassan Mir. The Minister briefed the Ambassador about the initiatives taken by the state Government to boost the activities of Agriculture, Horticulture and other allied sectors. He said that government exempts Tax and VAT on agriculture inputs. The Minister gave him a detailed account of agriculture activities and its allied sectors in three regions of the state adding that saffron, apple, walnut and Basmati rice are being produced in the state in abundance which is world famous. During the interaction, the Ambassador offered introduction of Czech technology in J&K for storage purposes in the field of Agriculture, Horticulture and Vegetable produce besides providing modern farm technology particularly tractors and mini tractors. The Ambassador said the Czech Republic would also provide soft loan to the state farmers and entrepreneurs on lowest interest rate of 3 per cent for Cold Storage projects, the rider for the financial assistance is to use Czech technology in these projects. He said that the republic would check the modalities with India for export of walnut and saffron from Kashmir and Basmati rice from Jammu. He said in “our country, there is great demand of walnut during festivals.” The Ambassador said that Agriculture Minister of the Republic is also planning to visit J&K. n chocolate India & Chocolate Ferrero’s differentiation strategy brings dazzling success Sagar Malviya & Ratna Bhushan I n a small factory on the outskirts of Pune, a handful of employees spend most of their time thrashing out innovative tiny toys. They send the toys to school kids for approval before these are mass-produced. That’s still only half the job done. The toys are then sent to Baramati, a rural area some 100 kilometres from Pune, where the company in question, chocolate maker Ferrero India, packs them as a surprise toy inside its Kinder Joy chocolate egg. This surprise factor and other differentiation strategy in packaging and distribution seem to have paid off as Kinder, the German word for children, has helped the Italian chocolate maker beat Swiss giant Nestle’s chocolate division in incremental sales growth last year. Ferrero India, which also sells Nutella spread, Ferrero Rocher chocolate and Tic Tac breath mint in the country, added Rs. 80 crore year-on-year to its revenues of nearly Rs. 341 crore in the year ended August 2012, according to its recent filing with the Registrar of Companies. Nestle India’s chocolate division added Rs. 69 crore in its kitty last year despite being three times bigger than Ferrero with sales of Rs.1,169 crore in the year ended December. Experts attribute this largely to the firm’s differentiation strategy. “Tic Tac has made its way into stationery shops, while the premium Rocher chocolate packs are available at small kirana stores as well,” says an industry source. The ladoo-shaped Ferrero Rocher can be found on the shelves of even traditional mithai shops, which are otherwise considered direct rivals. A Ferrero India spokesperson says, “Innovation and close attention to customer requirements have led to the creation of unique products.” Ferrero India was set up about five years ago with headquarter in Bengaluru. After a brief market test in south India, it launched its products at the national level in May 2010. The firm makes Kinder Joy and Tic Tac at its Baramati factory. Officials close to the company say Rocher isn’t the big focus of the company yet. Its Indian operations accounted for less than 1% of Ferrero International’s revenues of € 7.8 billion (approx Rs.55,000 crore) last year. Ferrero managed to grow its India business more than 30% in spite of a slowdown in consumer spending as well as having its products priced at least 30% higher than the rival brands. Experts say catering to a niche segment worked in its favour as it largely averted direct competition with existing brands from Nestle and Cadbury. Ashutosh Chakradeo, head of buying and merchandising at HyperCITY Retail, a hypermarket format promoted by retail chain Shoppers Stop, says, “Ferrero Rocher as a product is a 365-day gifting option with an international halo around the brand with its premium positioning.” Debashish Mukherjee, partner and Asia foods head at consulting firm AT Kearney, says, “Ferrero is catering to two large gaps that existed in the Indian market —“midpremium gifting space as well as products specifically designed for kids in India.” In fact, Rocher was a favourite gifting option even before Ferrero set up its operations in 2007. Even today, many retailers have the fear of running out of stock. “We have started blocking our orders for Ferrero during Diwali because experience tells us that there is always a greater risk of under stocking the product where demand far exceeds supply,” says the head of a supermarket. Industry watchers, however, warn that Ferrero will run into tougher competition in India as market leader Cadbury is becoming aggressive in the premium gifting segment by pushing its Swiss chocolate brand Toblerone. The legendary triangular chocolate bar already has 2% share in modern trade within a year of its launch. Chandramouli Venkatesan, director, India and Asia Pacific developing markets (chocolates), for Mondeleez International, which owns Cadbury India, says Cadbury has been growing by over 30% since the last three years in India as affluent Indians are spending more. “Premium in our category is growing very substantially,” he says. Courtesy: ET AgriBusiness & Food Industry w May 2013 31 News Retail Corporate Spencer’s Retail will bring more imported food items S pencer’s Retail is looking to increase the share of imported food items in its total food basket. The retail chain also plans to bet big on categories such as bakery, dairy, fruits and vegetables and imported food items to strengthen its food business. According to Chief Executive Mohit Kampani, imported items, which currently account for nearly 4.5 per cent of its turnover, would be increased to 8 per cent in next three years. (Spencer’s does not share turnover details.) “In 2013-14 we intend to take the sale of imported items to around 5.5 per cent of our turnover and to 8 per cent in another three years,” Kampani said. Of the 12,000 SKUs (items for sale), around 3,500 are imported items. “Imported recipes are picking up across metros. We want our customers to get products which you do not get locally,” he said. Under the ‘Unique to Spencer’s’ concept, the company plans to introduce products in categories including bakery, fruits and vegetables, liquor, frozen items, imported food and dairy products either under private label or by using its sourcing strength. Over 60 per cent of its sales come from food items. Nearly one-third of the total assortment at the retail chain would include the Unique to Spencer’s categories in 2-3 years, he said. “We are looking at providing experiential food to our customers. We want Spencer’s to be considered as the most preferred retailer in these identified categories,” Kampani said. The RP-Sanjiv Goenka owned chain will leverage its back-end operations to ensure that items unique to the retail chain are made available, he said. 32 food & beverages Health & Nutrition commodity marine Dairy Fairprice to drive Future Group’s private label strategy G roup-owned KB’s Fairprice is expected to drive the group’s private label strategy to get better margins and improve profitability for the convenience and neighbourhood store format. Kishore Biyani, Chairman, Future Group, said, “KB's Fairprice will be the key channel and catalyst for the growth of company-owned FMCG (fast moving consumer goods) brands and help make Future Consumer Enterprises among the leading FMCG companies in the country. KB’s Fairprice is housed under Future Consumer Enterprises, which is a subsidiary of Future Ventures, a Future Group company. In 2008, Biyani had announced ambitious plans for the group’s entry into private brands in categories such as FMCG, household consumer durables, electronics and apparel, with a target to reach a sales turnover of Rs 10,000 crore. At present, private labels contribute 40 per cent of KB’s Fairprice’s sales turnover, but going forward, this is expected to soar. Private labels brands such as Golden Harvest (staples), Ektaa (community based products) and Sach (toothpaste, juice, ghee) will get adequate shelf space at the ‘neighbourhood’ AgriBusiness & Food Industry w May 2013 formats of KB’s Fairprice. However, the company is to stay away from the premium segment in categories such as lifestyle and baby care, where it will continue to stock established brands. K. Radhakrishnan, President, KB’s Fairprice, said, “We will challenge the market leaders with our private brands and prove that they are equally good products. However, it would be the commodity driven categories such as staples where we would like to establish a presence, more than the premium categories such as soaps and baby care where the known brands would continue to rule.” Future group’s foray into the cashand-carry format, in partnership with the Hong Kong-based Li&Fung, will also help in servicing formats such as KB’s Fairprice in the future. As part of its cash-and-carry business, the group has recently created a market called ‘World Market’ in Bengaluru, with average shops size ranging from 400 sq ft to 550 sq ft. These shops will offer traders and wholesalers an opportunity to buy, own, invest and run their own shop. Considering the group is already getting ready to serve other retailers, it would also be in a position to service its own retail formats. “As part of the cash-and-carry business, it is the most logical step to take, as we expect cash-and-carry to help in consolidating sourcing operations within the group-owned formats,” added Radhakrishnan. KB’s Fairprice expects to break even in the next two years. Retail Corporate food & beverages Health & Nutrition commodity marine Dairy News GCCI Conference Big retail chains will not displace small players: Biyani Reliance Retailâ€™s turnover crosses Rs. 10,000 mark F R oreign Direct Investment (FDI) in organized retail sector should not be a major bone of contention for small retailers (kiranawallas) as the Indian consumption pie is big enough for everyone to have their fair share. More than retail FDI, India needs to be concerned about its capability to manufacture consumer products locally. "Until now rise of local retail chains, or entry of big international retail brands, has never created displacement," said Kishore Biyani, CEO, Future Group that runs chain of mega-malls under the brand Big Bazaar, across India. He was in Ahmedabad to attend an active session on "FDI in Retail: The Way Forward", organised by Gujarat Chamber of Commerce & Industry (GCCI). Allaying fears that FDI in retail will harm India's prospects, Mr Biyani stressed what India needs to focus on is its manufacturing prowess. "Retailers, whether foreign or domestic, are basically into trading of goods. They buy an X product from a manufacturer and selling it to the consumer. Their role is limited to being intermediaries," he elaborated. According to him, advent of foreign participation via FDI in retail will lead to direct and indirect job creation and most of all lead to creation of new demand that the local manufacturing sector can capture and capitalize on. "I don't see much of local manufacturers that can seize these opportunities," he said. Citing an example of his own company, he said five years ago his electronic store used to sell nearly 50% local electronic products the share of Kishore Biyani which has come down instead of rising. While disagreeing with an audience query that Indian manufacturers are not given level playing field, he said, "There is need to produce quality and cost effective products by local manufacturers along with brand building exercise." There are only a handful of Indian brands that command respect internationally, he said. Citing the instance of garment brands, he said though India is a major producer of raw materials with large consumer base, there are only a handful of Indian brands in garmenting. Replying to a media query on his plans for the cash and carry business in rural India through Aadhar Retail, taken over from Godrej in 2008, he said "We plan to further expand that business segment in near future." In 2011, Future Ventures had launched its first "Aadhaar Wholesale" store at Kalol, 30 km from Ahmedabad. India's retail sales are $500 billion (Rs 25 lakh crore) at present and expected to double in six years. Currently, only 6% of the market share is held by organized retail and by 2020 the figure is likely to touch 15%. Indian Food Retail growing at a rapid pace: Industry Report R esearch and Markets has announced the addition of the "Indian Food Retail Market Forecast to 2017" report to their offering. The report categorizes the Indian Food Retail Market into seven segments and provides a detailed overview of the past and present performance and future outlook of each segment. Over the past five years (2008-2012), the Indian Food Retail Market has grown at a rapid pace. The Indian food retail is the fastest growing sector among the Indian retail market and is expected to sustain its growth in the coming years. â€œIndian Food Retail Market Forecast to 2017â€? is a comprehensive research that contains detail statistics, in-depth analysis, and quality research on Indian food retail market. etail business of Reliance Industries crossed the Rs 10,000 crore mark in turnover during 2012-13, a growth of 42 per cent, on account of continued store expansion across all format sectors. "The retail business accomplished a milestone by crossing a turnover of Rs 10,000 crore in the last financial year. Turnover grew by 42 per cent to Rs 10,800 crore as compared to the previous year," Reliance Industries Ltd (RIL) said in a statement. The business achieved cash breakeven with earnings before Depreciation, Finance Cost and Tax expense ( PBDIT) of Rs 78 crore, it added. RIL Chairman and Managing Director Mukesh Ambani said: "We are delighted to see our retail business achieving a milestone of annual revenue crossing Rs 10,000 crore and will further strengthen our position in this sector." The company said it continued expansion across all format sectors. "Despite challenging macroeconomic conditions, the company witnessed strong same store sales growth ranging from 7 per cent to 18 per cent across format sectors over last year," it added. Keeping pace with the new store roll out, the retail business opened 184 new stores during the year, RIL said. At the end of March 2013, the company operated over 1,450 stores in 129 cities across India. Last year, Reliance Retail had launched 'Reliance Digital Express' providing technology solutions. Reliance Brands, a group firm, had also announced partnership with REISS, Superdry, Dune, Brooks Brothers and Stuart Weitzman during the year. The joint venture between Reliance Brands and Iconix, which owns Ed Hardy and London Fog brands for India, signed a long term license relationship with Arvind Lifestyle Brands and Kapsons respectively. AgriBusiness & Food Industry w May 2013 33 News Retail Corporate Customs directed to speed up clearance for farm produce T o boost exports of perishable agro items, the Revenue Department has asked Customs officials to accord speedy clearance to such cargo and directed that "routine" checks should be done only in special cases. "...Export consignments of perishable agricultural goods should not be examined in a routine manner and should be examined only in cases of specific intelligence...," the Central Board of Excise and Customs (CBEC) communication to Customs said. Examination even in case of specific intelligence has to be done with prior permission of concerned Assistant Commissioner/Deputy Commissioner of Customs, it added. The directions follow the suggestion of a Parliamentary Standing Committee on Commerce. It said that to promote export of Agriculture and Processed Food products, the Customs authorities must be sensitised to accord priority clearance to perishable agro products cargo. During 2011-12, India exported fruits and vegetables worth Rs 4,801 crore. The floriculture export was Rs 365.32 crores in 2011-12. The CBEC further said that perishable cargo which is taken up for examination "should be given Customs clearance on the same day itself". In cases where there are contraventions of Customs law, it said, "necessary legal action shall be taken but, in this case too, it shall be ensured that the perishable cargo is dealt with in such a manner...So that it is not unduly held up in ports/airports etc". Further, as a trade facilitation measure, the CBEC has decided to extend the facility of 24x7 Customs clearance for export consignments of perishable agricultural export goods at all air cargo complexes across the country. 34 food & beverages Health & Nutrition commodity marine Dairy Andhra CM meets Pawar seeking Mega Food Processing Park R ecently, A n d h r a Pradesh Chief Minister N. Kiran Kumar Reddy met Union Agriculture Minister Sharad N. Kiran Kumar Reddy Pawar who visited the state to inaugurate plant health management training wing in the National Institute of Plant Health Management at Rajendra Nagar. The Chief Minister requested Pawar to sanction a Mega Food Processing Park in Nizamabad district. There was a proposal to set up an Agro and Food Processing Industrial Park in Nizamabad district, an industrially backward area in Telangana. Smart Agro Industries Corporation Pvt Limited had come forward and evinced interest in setting up this facility. Smart Agro Industries Corporation Pvt. Ltd was promoted by a group of NRI entrepreneurs, living in the US and hailing from Telangana. The proposed project envisages food, agro-processing and related industries and thereby, adds value to the local agricultural inputs, which had been the missing link for the local industry to compete and thrive in regional and national markets. The state government led by Chief Minister N. Kiran Kumar Reddy had been proactively assisting/facilitating the project and had provided about 370 acres in Nandipet Mandal in the district for this purpose. The Chief Minister informed the Union Minister that in September, 2012 the proposal of M/s. Smart Agro Industries Corporation Pvt. Ltd was found eligible and kept in waiting list. AgriBusiness & Food Industry w May 2013 The Chief Minister requested that the proposal of Smart Agro Industries Corporation Pvt. Ltd may be approved at the earliest. Moratorium on poultry loans He also urged the Union minister to grant a moratorium for a period of one year on repayment of term loans availed by the poultry industry -including farmers, breeding farms, integrators and hatcheries. Among the other issues that came discussion were grant of interest subvention of at least 6% for a period of two-three years, rescheduling of outstanding term loans and sanction of additional working capital loans. The Chief Minister suggested that the Food Corporation of India may be directed to allocate and release at least two lakh tonnes each of damaged wheat and rice for exclusive use of poultry farmers at a subsidised price of 50 per cent of the minimum support price (MSP). He also suggested that poultry farmers, breeding farms and integrators may be allowed to import soya meal for their captive consumption, at zero rate of customs duty, for a period of one year. Aquarium The Chief Minister also asked Sharad Pawar to set up a World Class Aquarium in Andhra Pradesh as assured by the Centre. Palm Oil Farmersâ€™ Request He informed the Union Minister that Oil Palm farmersâ€™ Association had requested implementation of the formula recommended by the Commission for Agricultural Costs and called for import duty on crude Oil and Palm Oil. Retail Corporate food & beverages Health & Nutrition commodity Branding can put India in the club of top 5 farm produce exporters I ndia can become one of the world’s top five exporters of farm produce and generate greater returns for its farmers apart from giving assured quality to consumers if extensive investment is made on branding of food and fresh farm products, the third Food and Agriculture Integrated Development Action Report (FAIDA) jointly prepared by Confederation of Indian Industry (CII) and McKinsey and Company said. “In India the move towards brands has picked up vigour in the last decade and the Indian consumer’s tastes and preferences were in line with the global trends with an overwhelming 84 per cent supported branded items… which makes a strong case for a large opportunity for branding in various fresh and processed categories,” the report said. India’s share in the Rs 90 lakh-crore world food market is just two per cent and it exported only eight per cent of the food it produced between 2006 and 2010, which rose to 12-13 per cent by 2012. Packaged food is likely to grow by 9 per cent annually to become a Rs 6 lakh-crore industry by 2030. The report said in India the extent of branding in food items is mixed. In edible oil almost 40 per cent of the market is captured by branded products, while in flour it is 10 per cent, in rice it is 10 per cent, in dairy products it is 20 percent and it less than two per cent in sugar. “Lack of safety standards, completely undifferentiated products and sub-scale units currently unshackle the branded food industry in India, which can be pushed up and extended to fresh food as well,” the report said. It said, globally, examples Chiquita and Dole in banana and pineapple, Greenvale in potatoes, Foster Farms in poultry are instances were branding has been successfully extended to fresh food and vegetables. However, to expand India’s share in the world food market on the back of branding, the report highlighted some key points, which included categorising key sources of supplies based on several parameters, efficiency in procurement and minimisation of post-harvest and onfarm losses, aggressive marketing of the brand and launching variants of the same product to help the customer see value. Branding campaigns like the ‘Incredible India’ campaign could be undertaken to showcase India’s food diversity as well and thereby the corresponding potential of the market, the report said. “Branding will help consumers see the difference between the same product, which does not happen now, hence he declines to pay a premium for branded items,” said Adil Zainulbhai, chairmanIndia of McKinsey and Company. The report also advocated launching a ‘National Agriculture and Food Export Mission’ in select categories by the government targeted at select products in identified markets. N. Thiruambalam becomes new head of CavinCare Foods C avinKare Pvt Ltd has appointed Nellaiappan Thiruambalam as the new Director and CEO of its personal care and foods division. He will also head the company’s international business and strategic alliances. Thiruambalam was the CMD of Heinz India before joining CavinKare. He has three decades of work experience in the consumer goods, institutional and commercial segments in India, Asia and across the globe, according to a press release. He has also had stints at GSK and GE Lighting. Thiruambalam holds an MBA in marketing and finance from IIM, Kolkata. He is also an alumnus of Regional Engineering College, Trichy. Thiruambalam will join CavinKare’s Mumbai office. marine Dairy News Govt plans to set up warehouses abroad to help SME exporters U nion Commerce Ministry is planning to help the pharmaceutical exporters by setting up common warehouse facilities in some foreign countries so that small and medium scale drug makers can cut down on their expenses. The Ministry has already gathered inputs from the industry on the possible steps to help the exporters, as part of the Brand India Pharma campaign. One of the difficulties faced by the SMEs was huge expenditure on using warehouse facilities abroad. Accordingly, the department has firmed up plans to open warehouses facilities in some key markets, especially in the African countries, through the Pharmaceutical Exports Promotion Council of India (Pharmexcil). Depending on the success of the first one, the government will help Pharmexcil to open more warehouses in countries like Japan in the next phase, sources in the Ministry informed. The industry has also submitted its views on wide ranging issues regarding the customs, non-tariff barriers, patents, counterfeit drugs, bank loans, registration of products abroad etc. Based on the inputs, country-specific strategies are being worked out by the authorities. Pharamexcil is opening the first overseas warehouse in Nigeria, a key market for Indian exporters, Nipun Jain, SME Panel chief of Pharmexcil, said while confirming it. The agency had already identified the place checked the land in the African country. “By using the warehouse of the Government, SMEs will be able to save upto 75 per cent of their rent expenditures and thereby improve the export performance,” he pointed out. The first overseas warehouse, expected to be ready in a couple of months, will give 75 per cent, 50 per cent and 33 per cent subsidies for three years respectively. It will have facilities for APIs, formulations and other pharma products. AgriBusiness & Food Industry w May 2013 35 News Retail Corporate Sunny Leone endorses XXX energy drink food & beverages Health & Nutrition hen a single brand such as Red Bull dominates the Rs 200-crore energy drink category, it gives a chance for more players to enter the category. Clarity in regulations regarding the amount of caffeine used in these drinks is also making more companies eye the relatively nascent category. ctress Sunny Leone recently shot for a 'XXX' brand of drink at Mumbai's Filmistan. Actor-producer Sachiin Joshi, who was last seen in 'Mumbai Mirror', said he wanted to work with Leone, who has now earned popularity in Bollywood. Sachiin has also signed Sunny as a brand ambassador for his company's energy drink XXX. According to company sources, over 5 years of product development and research has helped in creating the XXX Energy Drink. XXX Energy Drink in 250 ml carbonated cans are manufactured, filled and bottled in state-of-the-art facilities in Dubai and India (Pune), under GMP and hygienic conditions and contains various vitamins and herbs to give you Energy. The Variants The brand XXX Energy Drink comes in three variants – REJUVE, NICOFIX and MINUS. Rejuve is slightly sweeter, the taste keeps drinker guessing what it is made of. Nicofix can be found at most places likes pubs, bars restaurants, public places airport etc. Minus is the energy drink that is claimed to help burn the excess fats. 36 marine Dairy New entrants in energy drink segment heat up market W A commodity TARGETING THE YOUTH From smaller companies like the Pune-based Greenways Foods & Beverages to big textile companies like Raymonds (Kamasutra energy drink), the number of energy brands is on the rise with the youth as their target audience. “We will take Red Bull by its horns and become the next big player after it in this market. Our product will be healthy with half the amount of caffeine used by Red Bull,” says Nitin Gupta, Managing Director, K.G Functional Beverages, which launched the ‘Restless Action’ drink. Pegged a notch lower than Red Bull at Rs 90 for 250 ml (Red Bull sells for Rs 95), Restless expects to take the category forward and has pitted itself against the market leader. Meanwhile, Pune-based Greenways Foods & Beverages is also re-entering the category with its brand I can. Sachin Chopda, Managing Director, Greenways Foods Beverages said, “When there is a single leader like Red Bull, there is room for a second and third player to make mark in this category which has always been there for more than decade in this country.” But, there have been a large number of energy drink brands which have fallen out of the category after making heavy investments. Indian brands like Cloud Nine and XXX have suddenly become low-key after advertising heavily across media and even associating with certain IPL teams. Amway has also withdrawn from the category after launching its XL brand of energy drink four years ago. Piruz Khambatta, Chairman & Managing Director, Rasna, said, “We are trying to introduce the concept of an Indian energy drink by adding herbs, which will be mass and priced lower than brands like Red Bull.” Karishma Kapoor becomes Brand Ambassador of Danone Foods D anone Foods & Beverages India has signed Bollywood actor Karisma Kapoor as its brand ambassador. The company said in a statement that the TV commercials will feature Karisma Kapoor. AgriBusiness & Food Industry w May 2013 “Our new 360 degrees campaign will bring the new message across to our consumers and Karisma Kapoor, being a young mother and a successful working woman, embodies the essence of our brand ethos,” Danone Food & Beverages India General Manager Jochen Ebert said. The company said that the new marketing campaign would involve initiatives like TV commercials, outdoors, cinemas and extensive initiatives like sampling across consumer touch points. Danone sells various products in the country, including flavoured yoghurts and milk. Retail Corporate food & beverages Health & Nutrition commodity Hassad Foods buys over 51% stake in Bush Foods (from left) Virkaran Awasty, MD of Bush Foods Overseas Pvt. Ltd; Nasser Al Hajri, Chairman, Hassad Food; and Hassan M. Al-Amadi, Ambassador of Qatar to India, at a press conference in New Delhi T he petrodollars from West Asia have begun to flow into the Indian food sector. Hassad Food Company, part of the Qatar Investment Authority, the Sovereign Wealth Fund of Qatar, announced the acquisition of a majority stake in Delhi-based Bush Foods Overseas Pvt Ltd, a basmati rice and ready-to-eat products maker for an undisclosed sum. BOARD The privately-held Bush Foods markets premium basmati rice under brands such as Neesa, Himalayan Crown and the Indian Star. It clocked a turnover of Rs 1,340 crore for the yearended March 2013. As part of the deal, Hassad has bought out the undisclosed stake held by Standard Chartered Private Equity in Bush Foods and also acquired an additional stake from the Awasty Family. However, Virkaran Awasty will continue to be the Chairman and Managing Director and run the company. INVESTMENTS “Bush Foods is our first investment in India and it may open doors for others. We have acquired more than 51 per cent stake and have invested over $100 million,” said Nasser Mohammad Al Fuhaid Al Hajri, Chairman and Managing Director of Hassad Food. However, he refused to quantify the exact investment. Hassad sees a big opportunity in the unexplored Indian food segment, Al Hajri said, adding that his company had earmarked about $500 million to invest in India over the next three to five years. OTHER SEGMENTS Spices, ready-to-eat and processed food and meat, vegetables and fruits are the categories in which Hassad Food would be exploring opportunities in India, Al Hajri said. The Bush Foods buy-out will position Hassad Food on the global business map as a major supplier in the basmati rice domain. “Our mission is to own and develop efficient, profitable, growth-oriented global brands, contributing to the welfare of Qatar and other societies,” he said. “It is a landmark marquee moment,” said Awasty, CMD, Bush Foods, referring to the investment by Hassad. Awasty expects to use part of the proceeds in augmenting the capacity and brand promotion among others. CAPACITY, EXPORTS Bush Foods currently has basmati rice processing capacity of 1.8 lakh tonnes and its exports stood at Rs 500 crore last fiscal. The company recently forayed into the spices segment, where it sees a major growth potential along with the readyto-eat category of products. Hassad-Bush Food is the second such deal where a global firm has acquired stake in the Indian basmati rice firm. In 2011, US food major, McCormick, had formed a joint venture Kohinoor Foods to market the latter’s basmati rice in India. marine Dairy News Govt not to permit IKEA to retail food items; can open cafes S wedish firm IKEA can be allowed to run restaurant and cafe along with single brand furniture stores, but it won't be allowed to engage in retailing of food items, commerce and industry minister Anand Sharma recently told lawmakers in the Lok Sabha. Sharma said IKEA recently sought permission for single brand retail trading of its products and establishment of IKEA restaurants and cafes. "The proposal has been recommended by the FIPB (Foreign Investment Promotion Board) to the extent that IKEA can have a restaurant/ cafe in accordance with their global model but cannot engage in retailing of food items," Sharma said in written reply in the Lok Sabha. He said the Indian government has proposed the condition on IKEA that "food and beverages can be sold within IKEA restaurant/cafe located in the IKEA retail store. No food items shall be retailed off the shelf in any other part of the retail store." The FIPB has approved the world's largest furniture maker IKEA's proposal to invest Rs.10,500 crore in single brand retail business in India. The proposal is yet to be approved by the cabinet. Overseas investment proposals worth above Rs.1,200 crore have to be approved by the cabinet. AgriBusiness & Food Industry w May 2013 37 News Retail Corporate Dabur, Capital Foods to cash in on cookingpaste segment food & beverages Health & Nutrition BUILDING THE MARKET Nitin Jain, Brand Head, Hommade, Dabur India, said, “Being the pioneer in the cooking-paste segment, it is our job to build the category and equity for the Hommade brand. “It has been 17 years since Hommade was launched. Even today, we are trying to convince consumers about the taste and convenience associated with this segment.” Recently, the FMCG company held its national culinary contest short-listing 30 Mumbai housewives for a finale, based on their secret recipes, as part of the Dabur Hommade HomeStar contest. The winner is to be flown to New York and will dine with Michelin-starred chef, author and TV judge Vikas Khanna in his restaurant, Junoon. “Such contests help in building further equity for our brand and the category. “We are exploring more options in convenience foods, as the cooking-paste segment is now catering to working professionals who are pressed for time, and not just housewives,” added Jain. Apart from just the basic gingergarlic paste, Dabur Hommade also has products such as tomato puree and coconut milk, in its portfolio. 38 marine Dairy Indian mango trade in full swing T hough cooking pastes, which give food that distinctive flavour and aroma of freshly ground herbs and spices, are in their infancy, pioneers like Dabur and Capital Foods are pepping up the segment, by dropping prices and introducing innovative contests for housewives. While Dabur, with its brand Hommade, has a contest for housewives with a free trip to the US, Capital Foods is dropping price points with a new brand, to attract more consumers. The cooking-paste market is estimated at Rs 55-70 crore and is growing at 30 per cent. Ginger-garlic paste dominates the segment, and is one of the primary cooking ingredients. Pickle companies such as Mother’s Recipe, Nilon’s and Priya have also entered this segment. commodity O n a farm nestled between mountains in a peaceful area of India's Raigad district, hundreds of trees are laden with luscious mangoes. Workers scan the trees for fruits that are ripe for picking and delicately pluck them, then carefully place them in the shade out of the glare of the strong afternoon sun. The Alphonso mango season is in full swing. The UAE has a huge appetite for the Alphonso and is India's biggest importer and re-exporter of mangoes in terms of value. The Emirates imported 22 million kilograms of the fruit in the financial year between 2011 and last year, generating more than 1 billion rupees (Dh67.3 million), according to figures from the Indian Agricultural and Processed Food Products Export Development Authority. Known as "the king of fruits", the pricey Alphonso mango has a rich aroma, sweet taste, melt-in-mouth texture and a golden colour once fully ripened. The prized fruit can sell for more than three times the price of other varieties of mango, of which there are more than 1,000 in India. "The taste is not only sweet - it's different," says Sandesh Maruti Patil, the owner and manager of the Bhaktij mango farm in Raigad. "It's a status thing. When someone eats the first Alphonso of the season, they tell people." Patil gave up a career in homeopathic medicine for the more lucrative mango industry. His farm, which has about 1,000 trees, can produce up to 14,000 mangoes a day. He supplies exporters and local buyers and most of the mangoes on his farm are ultimately destined for the UAE and the wider Arabian Gulf region. India is the world's biggest grower of mangoes, with a 40 per cent share of total world production data from the UN Food and Agriculture Orgnanization. It produces more than three times the amount of mangoes than the next-largest AgriBusiness & Food Industry w May 2013 market, which is China. Total exports of mangoes from India reached 59,000 tonnes in the financial year of 2011, valued at 1.63bn rupees. India even used mangoes as a bargaining chip in 2007 in a trade deal with the United States to pave the way for the sale of Harley-Davidson motorcycles in India. In 2007, India eased emission guidelines for imported motorbikes to allow Harley-Davidson to enter the Indian market. This was a trade deal in exchange for mango exports to the US. The US had banned mango exports from India for years before this because of concerns over the levels of pesticides used. Prices of the fruit swing dramatically depending on supply and demand during the Alphonso harvesting season, which typically runs from mid-March to May. On Mr Patil's farm, the mangoes are currently selling for about 500 rupees per two dozen. That compares with about 1,400 rupees last year. "Last year the rates were very high," says Patil. "This year from mid-March the rates have gone down." He says this is because of an increase in the supply of mangoes that have been produced in recent weeks compared with the same time last year. But he adds that over the entire season, he expects mango production to reach similar levels to last year, predicting that mango supply will slow next month compared with last year. "The last three years have not been good for mangoes," says Patil. "Because of the climatic changes we're getting a long winter season." Fahad Exports is based in the APMC fruit market, in Vashi, Navi Mumbai, where many of the mangoes from the farms in Raigad and other areas including Ratnagiri are sent. Shuja Merajuddin, who runs Fahad Exports, says he sends most of his mangoes to Dubai. Rising costs are eating into exporters' profits this year, he adds. "Demand is the same from Dubai this year but the sale price is less," he says. "At the same time, our costs have increased. The packing costs are more, freight rates are higher, port fees have risen and cooling storage costs have increased because of higher electricity prices." Retail Corporate food & beverages Health & Nutrition commodity CII-McKinsey Report Poultry, milk, snacks to drive packaged food industry growth T he packaged food segment is likely to grow 9 per cent annually to become a Rs 6 lakh crore industry by 2030, dominated by milk, sweet and savoury snacks and processed poultry, among other products, says a new report. The CII-McKinsey report on “India as an agriculture and high value food powerhouse by 2030” says the emphasis on branding could further enhance realisations of packaged foods by up to 30 per cent, besides driving the growth of the country’s processed food sector. Packaged milk, as a category, is projected to grow from $7.76 billion to $32.9 billion by 2030, registering an annual growth of 8 per cent. About 73 per cent of the milk sold by 2030 would be branded, against 31 per cent at present. Sweets and savoury snacks will be second largest category at an estimated $16.39 billion by 2030 from $1.28 billion in 2010, clocking a 13 per cent growth annually. Processed poultry products will clock the fastest growth of 17 per cent per a year to $8.34 billion by 2030, against $398 million in 2010. Similarly, biscuits will see an 8 per cent growth to touch $13.14 billion in 2030, followed by fruit beverages at $12.20 billion and vegetable and edible oils at $10.33 billion. Packaged atta (wheat flour) is expected to grow 13 per cent to $8.15 billion from $574 million in 2010. BRANDING “Branding could drive the next growth wave in the country’s food processing sector,” said Adil Zainulbhai, Chairman, McKinsey & Company in India. The food processing sector is plagued by issues such as lack of appropriate infrastructure, safety standards and integrated policy and vision among others, he added. “Scaling up the front-end retail will drive investments in infrastructure and there comes the branding opportunity,” marine Dairy News Jackfruit now getting popular in North India Zainulbhai said. Branding as a concept can be extended to fresh food as well, he said, citing the example of Mahagrapes – a branding initiative undertaken by the Maharashtra Government in collaboration with the grape growers co-operative in the State. Indians are now spending more on high-value foods and consumption was shifting from plant-based to animalbased protein, thanks to the rising disposable incomes. “We are in the early phase of this shift and the demand for high-value produce – including fruits and vegetables – is expected to go up significantly over the next 20 years,” he said. The report – which has studied the potential for five crops – soyabean, mango, banana, potato and poultry in States such as Tamil Nadu, Gujarat, Maharashtra, Bihar and Punjab, suggested 12 interventions that could transform and accelerate growth in the country’s food and agriculture sector to support consumption demand changes over the next 20 years. AGRI TECH MISSION These include creation of a National Agricultural Technology Mission, a National Farm Gate to Market Infrastructure Authority, on the lines of National Highways Authority of India, for developing pan-India agri-infrastructure to attract private investments in cold chain and storage among others. “Driven by the changing consumption pattern, the future of agriculture and food sectors will lie in crop diversification to high-value crops and higher value addition. Revisiting some of the current legislations and taking focussed policy initiatives could make India a food hub in Asia,” said Rakesh Bharti Mittal, Chairman, CII National Council on Agriculture. J ackfruit is gaining acceptance as a vegetable, especially as a substitute for meat in dishes, according to an expert. Shree Padre, who has been working on creating awareness about jackfruit cultivation for the past several years, said that jackfruit is basically used either as a fruit or as a vegetable. It is also a main ingredient in the preparation of many value-added products. Raw jackfruit, as a vegetable, is gaining popularity in northern India, and a majority of them are being used as a substitute for meat in the preparation of various dishes. Nearly 40 hotels in Nagpur region are using jackfruit as a substitute for meat in their cuisines. This is a development over the past five years, he said. Stating that jackfruit satisfies many parameters of meat in the preparation of various food items, he said a majority of the around 50,000 tonnes of jackfruit sent from the south to north go to the kitchen table. Padre was part of a team to the Vidharba region to study the potential of jackfruit there. On the jackfruit crop potential in Vidharba region, he said the cultivation is not that big. Because of the awareness about this crop in the past five years, a minuscule component is coming to the market. Padre said that raw jackfruit as a substitute for meat has not gained prominence in southern India. With proper extension activities, raw jackfruit can be introduced in south Indian hotels as a substitute for meat, he said. AgriBusiness & Food Industry w May 2013 39 News Retail Corporate Like humans, rats too love chips: Research food & beverages Health & Nutrition 40 marine Dairy Eating whole fruit is better than juice: Research A German research team has discovered that both humans and rats can't stop eating potato chips. The findings that were presented to the American Chemical Society represent a phenomenon called hedonic hyperphagia that is associated with eating for pleasure with an inability to stop even when not hungry. The scientists fed one group of rats normal rat food and another crushed potato chips, and monitored their brains using functional magnetic resonance imaging. T h e y found t h a t different parts of their brains lit up in different ways as they chomped. The researchers theorised it must be the fat and carbs in the chips that were responsible, but when the rats were given a diet of only fat and carbs, they still preferred the chips. So, they concluded that the two chemicals could only partially explain the attraction and there had to be "something else that make them so desirable". But they had no idea what else could be besides the chemical ingredients. A part of the answer may lie in the fact that the areas of the brain that lit up differently in the insatiable rodents were areas associated mainly with reward, addiction and hunger. Interestingly, about a decade ago, neuroscientists in France and the US investigating the effects of meditation on the brain using similar fMRI protocols found almost the same patterns of cerebral activity in people who meditated continuously. Yet, when those exact areas of the brain were artificially stimulated with electrodes, the subjects said it didn't "feel the same". There seemed to be something else, they said, that made them meditate. commodity J uicing is being promoted by many as a useful strategy for weight loss. But for those who have undergone surgical weight loss, the trend of extracting the liquid from produce, can pose many risks. “Juicing in general reduces the fiber content and therefore decreases the feeling of fullness gained by eating fresh, crisp fruits and vegetables,” says Ashley Barrient, MEd, LPC, RD, LDN, dietitian, Loyola Center for Metabolic Surgery and Bariatric Care.” Patients who consume whole fruit and vegetables report greater fullness and overall satisfaction with their diet.” Barrient specializes in working with weight-loss patients. “The concentrated sugar and caloric content of juice can result in Dumping Syndrome which includes diarrhea, rapid pulse, cold sweats, nausea and uncomfortable abdominal fullness,” says Barrient. The sugar and calorie content of juice is much greater than the sugar content of whole fruit and vegetables, and it takes several pieces of produce to make an average-sized portion, she reports. The concentrated sugar and caloric content of juicing also discourages weight loss post surgery and increases the risk for weight regain in the future. “Aim for a diet rich in lean protein and dairy, fruits, and vegetables and ensure adeqquate water intake,” says Barrient. She also emphasizes the importance of supplementing diet with required vitamins and minerals for lifetime following weight loss surgery. “The most successful diets are those that can be sustained,” says Barrient. “For most people, juicing is a trend, and trends do not last.” Orthorexia: the obsession with perfect diet O rthorexia is a relatively new term for a disorder where a person becomes obsessed with the “perfect diet," the cleanliness of food and eating on a highly regulated regime. Recent studies were unable to determine who can fall into the orthorexic trap, but it seems women are a high-risk group, Fox News reported. Orthorexics can be under pressure to stay fit and young while experiencing life stress on an intense, long-lasting level. Not managing the pressure may lead them to cope in drastic ways, feeling they have to walk the tightrope between looking good and meeting the demands of a hectic lifestyle. Can healthy eating actually harm your health? Caring about what you eat is a great thing, but when it turns into an obsession and a hunt for perfection, you AgriBusiness & Food Industry w May 2013 can do permanent damage to your body on several levels. A very restrictive diet means you may miss out on nutrients your body needs. Some of the foods orthorexics tend to restrict, or completely remove from their diets are dairy, meat, eggs, gluten and grains, good quality fats found in foods like olive oil, avocado, nuts and seeds, grass-fed beef, grass-fed dairy and pasture-raised eggs. Apart from missing out on nutrients, the health of your mind and the quality of your thoughts can have a huge impact on your body. Placing yourself under regular mental stress can trigger stress hormones like cortisol and adrenaline. Normally, these hormones are meant to fire when you`re in a threatening situation to boost energy supply for immediately action. Retail Corporate food & beverages Health & Nutrition commodity Seminar on Tea & Health Demand for orthodox tea may boost exports establish letters of credit in India easing transactions. “With the situation in Iran improving, tea exports are likely to increase to 20 million kg this year,” he added. H aving witnessed over seven per cent drop in 2012, tea exports are expected to grow by over nine per cent in 2013. According to M.G.V.K. Bhanu, Chairman of Tea Board, the growth in exports would be aided by a strong demand for orthodox tea in CIS countries and Iran. India is likely to export over 220 million kg (mkg) of tea in 2013, compared with 201.08 mkg in 2012. Tea exports from India stood at 215.42 mkg in 2011. ORTHODOX VARIETY “There is likely to be a good demand for orthodox tea from the CIS countries and Iran this year,” Bhanu told newspersons on the sidelines of a seminar on Tea and Health recently held in Kolkata. Export of India’s orthodox tea to Iran witnessed a dip in 2012 in the wake of sanctions imposed by the US and European Union on Iran. India’s tea exports to Iran stood at around 13 mkg in 2012. With the Reserve Bank of India granting permission to Central Bank of Iran to open rupee accounts with Staterun UCO Bank, Iranian importers could PRICES The lower demand from Iran led to some producers cutting down the production of orthodox tea, which led to firming up of prices. Average price of orthodox tea, which was close to Rs 109 a kg in 2011, firmed up to Rs 156 in 2012. In 2013, the prices of orthodox tea are likely to remain firm on the back of a steady demand from CIS countries and Iran, he pointed out. India should concentrate on high value tea for exports so as to achieve better unit realisation, he said. PRODUCTION India’s tea production is expected to be marginally up at 1,115 mkg in 2013 (Jan-Dec). The country produced nearly 1,111.76 mkg in 2012 – 3.24 mkg lower than in 2011. FIRST FLUSH The decline in production was primarily on the back of inconsistent weather in the Assam Valley and other tea-growing areas of North India. Though the early season (first flush) tea production was almost stagnant at last years’ level due to poor rains in North India, however, there has been some improvement in rains post March 15. “We expect to cross the production level achieved in 2011,” Bhanu said. To subscribe AgriBusiness & Food Industry Call : 011-64521572 or E-mail : email@example.com marine Dairy News Indian cocoa production expected to double by 2025 C ocoa production in the country is expected to double to 30,000 tonnes by 2025, a top official of Directorate of Cashewnut and Cocoa Development Board (DCCD) said. At present, the country is producing only 15,600 tonnes against the demand of 45,000 tonnes from the evergrowing chocolate industry, requiring large-scale imports, DCCD Director Venkatesh Hobbali told reporters. Speaking on the sidelines of a national seminar on ‘Cocoa Development in India—Issues and Strategies’ here, he said the country imported cocoa worth Rs 804 crore in the last fiscal. He added that the domestic production, mainly concentrated in Tamil Nadu, Andhra Pradesh, Kerala and Karnataka, is expected to touch 30,000 tonnes by 2025. Though Kerala was cultivating cocoa in smaller area, it contributed a major share of 7,000 tonnes and Tamil Nadu’ s share was 1,500 tonnes, Venkatesh said. Earlier, inaugurating the seminar, Tamil Nadu Agricultural University Vice-Chancellor K Ramasamy asked the scientists to be equipped to know the minute details, before introducing or suggesting any seedlings or seeds to the farmers. Enhancing quality, yield and productivity, would be beneficial for the end-users, in this case chocolate industry, but the scientists, who stood for farmers, should take care the interests of 65 per cent of the population depending on agriculture, Ramasamy said. Ramasamy has asked the Directorate to sanction a Centre of Excellence for Cocoa to TNAU, which can serve as a model farm for the farmers to visit and undergo hands on training on different aspects of cocoa cultivation. AgriBusiness & Food Industry w May 2013 41 News Retail Corporate Indian dairy industry proposes India-EU FTA T he dairy industry, led by the country’s largest milk cooperative that owns the Amul brand, has opposed the proposed India-EU free trade agreement (FTA) on the ground that it would led to subsidised dairy products from Europe flooding India. “This will rob the domestic dairy industry and 80 million farmers that are connected to it, from t h e i r rightful access to a growing market within India,” said R.S. Sodhi, Managing Director, Gujarat Cooperative Milk Marketing Federation, in a press release. Sodhi argued that the Government had encouraged the co-operative model in the dairy sector with active policy protection. “It does not make sense that now dairy trade will be opened up to unfair competition from subsidised European exports under this FTA, just when it shows potential to grow into a vibrant industry,” he said. Farmer body Bharatiya Kisan Union (BKU) is also opposed to the proposed trade pact which, it claimed, would benefit the EU more as more than 60 per cent of Indian farm exports already go to the EU duty free. So far, India has protected the dairy sector in all the free trade pacts signed including ones with the Asean countries, Japan and South Korea. 42 food & beverages Health & Nutrition commodity marine Dairy After Pakistan, Europe too keen to adopt India’s milk pouch system M other Dairy, Gandhinagar, a unit of the Gujarat Co-operative Milk Marketing Federation (GCMMF) has now emerged as world's largest milk film manufacturer. And, the Indian dairy model of supplying daily milk to consumers in the form of pouches is now being adopted by the western world and even in neighbouring Pakistan. Marketers of Amul brand, GCMMF, has enhanced the milk film producing capacity of the Bhat village-based plant near Gandhinagar as the demand for pouched milk is fast increasing in the country. The plant, which had a capacity of producing 8,000 metric tonnes of milk film, now can produce 17,000 metric tonnes a year with capacity expansion that was carried out with Rs 80 crore investments. To top it, the homegrown dairy major has already decided to double the milk film producing capacity from the present 17,000 metric tones per annum to 34,000 metric tones per annum by next year. If one puts all dairy brands together, a total of 8 crore milk pouches are sold daily across India. Of these, Amul counts for 1.80 crore milk pouches. "Even after expansion, the entire capacity of our Gandhinagar plant is fully utilized for packaging our own products including milk, buttermilk and dahi. Now, we will be doubling this capacity," managing director of GCMMF R S Sodhi said. "For the western world, supplying milk in pouches was earlier an unthinkable idea. Traditionally, they have used plastic jars for supplying milk to their AgriBusiness & Food Industry w May 2013 consumers. But now they too are shifting and adopting the Indian model b e c a u s e supplying milk in pouches in easy, cost-effective and environment friendly. In Pakistan and some parts of Europe, they have already started supplying milk through pouches while we regularly get delegations to study the milk film packaging at our plant," said Sodhi. Named 'Amul Sealk', the Gandhinagar plant of GCMMF is the backbone of Amul's liquid milk business and ensures supply of milk film (about 424 brand variants) to 16-member unions of the federation which are having about 41 milk packing stations across India. The fully automatic plant with machineries imported from Germany manufactures three-layer polythene from 100 per cent virgin material. "This film is very environment friendly," said Sodhi. The habit of Indian women of stocking empty milk pouches and selling it to kabadi or pastiwallas ensure that these pouches are re-cycled for manufacturing of irrigation pipes used in the agriculture sector and for manufacturing of tarpaulin sheets used during monsoon. "You will never find empty milk pouches in dustbins or garbage bins as even after the milk is drained out, the empty pouches remain a profitable business for waste pickers!" he said. Retail Corporate food & beverages Health & Nutrition commodity Tirumala Milk has prepared a Rs 200crore expansion plan NEW LOGO The company has also announced revamped branding. “We have found several counterfeit products in the market mimicking our logo that sported the picture of Lord Venkateshwara. So, we have decided to change the logo to check such attempts,” he said, after launching the new logo. Besides, the company unveiled products with longer shelf life. “We are going to hit the North Indian urkey has gained the right to export dairy products to the European Union once again after a period of 13 years, Agriculture Minister Mehdi Eker said. “The EU’s Directorate General for Health and Consumers h a s confirmed that Turkish f i r m s c o m p l y with EU standards for selling dairy products to the EU members. The legislation about the issue will enter into force on April 3,” Eker said at the introduction meeting of the dairy exports project, which is being carried out by the ministry and the Packaged Milk and Milk Products News G B. Brahma Naidu (right), Managing Director of Tirumala Milk Products, with his co-directors releasing ‘Tringo', the flavoured milk in Tetra Fino packaging in Hyderabad shelves by entering Delhi market in the next two months. Depending on the response, we will pan out to other States in the North,” he said. INVESTMENTS The company, which raised Rs 100 crore from Carlyle Asia Growth Capital IV three years ago, has no plans to invite further private equity. “We have been getting queries from Europe and other places, showing interest in investing in us. But we don’t have any plans to infuse more funds,” he said. Turkey to export dairy products to EU T Dairy EU not willing to allow Indian dairy products: Sodhi T irumala Milk is currently on expansion mode. This includes a Rs 100-crore processing facility at Melamuthur with a capacity to process 4 lakh litres a day. When it is ready, the total capacity of the dairy would go up to 19 lakh litres a day. “We are also planning to set up an integrated dairy at Vinukonda in Guntur district with an investment of Rs 100 crore,” B. Brahma Naidu, Managing Director of Tirumala Milk, said. The company, which registered a turnover of Rs 1,500 crore and a profit of Rs 110 crore in 2012-13, is targeting a turnover of Rs 2,000 crore this financial year. marine Industrialists Association (ASÜD). The minister stated that Turkey’s dairy exports to the EU had been halted in 2000 when the union took a decision on dairy exports regulations and found Turkey’s standards low. He also said that Turkey had not been able to export dairy products to other countries that also applied the same EU standards. “Some Middle East countries did not import dairy products from Turkey because it could not be exported to the EU,” he said. The EU did not allow Turkey to export dairy products because Turkey was not able to provide safeguards against animal diseases, did not take adequate measures on animal health, or provide control mechanisms in the dairy production phase, including hygiene and laboratory conditions. u j a r a t Cooperative Milk Marketing Federation GCMMF has called upon the govt of India to safeguard Indian farmers’ vital interests while negotiating Free Trade Agreement (FTA) with the European Union. The cooperative major has sent a detailed letter to the Commerce Minister in this regard. In his letter, R.S.Sodhi MD of GCMMF has said the EU is not willing to allow Indian dairy products to sell on the European market on one excuse or another while it wants an easy access for its own milk products in India. Talking to Indian Cooperative Sodhi said, “The EU through large scale export subsidies to farmers makes its own products much cheaper than the actual costs. This is unfair and a flagrant violation of the principle of level playing field”. According to Sodhi, the EU even insists on getting protection for some of its cheese brands so that the Indian companies could not copy them. However, it is strange that they themselves demand freedom to market Indian local products like paneer and lassi here, said Sodhi. The GCMMF has also argued that the West refuses to follow the basic international trade norms especially in areas where India enjoys comparative advantage. The EU barely takes steps to check biopiracy, patenting of things Indian without paying royalties and several other infractions. Ayurvedic medicines, neem and many other products are stark examples, Amul MD has pointed out. Experts say negotiations are at an advanced stage and the FTA is likely to be hashed out soon. New Delhi has to be focused as well as careful in its approach or else millions of petty milk farmers of India would get reduced to utter poverty, warn experts. AgriBusiness & Food Industry w May 2013 43 44 AgriBusiness & Food Industry w May 2013 AgriBusiness & Food Industry w May 2013 45 46 AgriBusiness & Food Industry w May 2013 Date of Publishing 24-25 Every Month Date of Posting 1-2 Every Month Postal Regn. No. DL. (S) - 01/3028/2013-15 R.N.I. Regn. No. DELENG/2003/11672