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Vol. 10, Issue 11, April 2018,
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Vol. 10, Issue 11 -April- 2018
LESS POWER CONSUMPTION
Vol. 10, Issue 11 -April- 2018
Vol. 10, Issue 11 -April- 2018
Vol. 10, Issue 11 -April- 2018
Indiaďż˝s Only Monthly Newspaper for Food, Beverage & Allied Sectors
Vol. 10, Issue 11, April 2018,
Mega Food Park in Ajmer
in the State of Rajasthan. The sector would contribute towards doubling farmerâ€™s income in the coming years.
nion Food Processing Industries Minister Harsimrat Kaur Badal inaugurated Mega Food Park in Ajmer. The Ministry of Food Processing Industries is creating mega food parks with modern infrastructure facilities for food processing along the value chain from farm to market with strong forward and backward linkages through a cluster based approach. The Food Processing Park that is created with modern infrastructure will benefit the farmers, growers, processors and consumers of Rajasthan and bordering areas hugely and prove to be a big boost to the growth of the food processing sector
The amenities being created at Central Processing Centre (CPC) of this Mega Food Park comprise cold storage of 5,000 tonnes, deep freeze of 2,550 tonnes, individual quick freezing of 2 tonnes per hour, dry warehouse for raw materials of 2,500 tonne capacity and dry warehouse for finished goods of 5,000 tonnes. The Food Park is being set up at a cost of Rs. 113.57 crore and will benefit around 25,000 farmers in Ajmer as well as neighboring districts.
MoFPI calls for Integrated Cold Chain Projects proposal
ith the objective of reducing the distance between Farm & Fork, the ministry of food processing industries (MoFPI) will provide financial assistance to set up Integrated Cold Chain Projects under Pradhan Mantri Kisan Sampada Yojana (PMKSY). MoFPI has issued a notice inviting expressions of interest (EoIs) from potential promoters for two schemes under the PMKSY, namely backward and forward linkages in the processed food industry and integrated cold chain and value addition infrastructure.
The Park will also provide direct and indirect employment to 5,000 persons and also benefit about 25,000 farmers.
The ministry stated that the interested investors may submit their proposal through the online portal and only as per the revised guidelines which was updated in February 2018.
The real beneficiaries will be the farmers and the agriculturalists, which can now look at better support systems to bring their product to the market and get concomitant benefits.
As per the notice, the deadline for submitting the EoIs will be April 30, 2018. Proposals submitted via physical mode will not be accepted. The submitted proposals will be evaluated on a monthly
basis till the total number of proposals under the scheme that is 50, gets exhausted. Meanwhile, the ministry has also issued an EoI inviting proposals for the integrated cold chain and value addition infrastructure scheme with the aim to set up integrated cold chain projects in the country. The willing entrepreneurs were instructed to submit their proposals, with the relevant details, as per the revised operational guidelines of the scheme updated as of March 8, 2018. The objective of PMKSY, launched on August 23, 2017, is to target creation of infrastructure and increasing capacities of processing and preservation in the entire supply chain of the food processing sector, from the farm to the retail outlets. It will help in integrating food processing units and food trade with the farmers by creating employment opportunities.
Vol. 10, Issue 11 -April- 2018
FOOD PROCESSING NEWS
Sriganganagar will be a Jammu vendors waiting for cold storage units for fruits food processing hub: Vasundhara
arwal mandi, Jammu, have been requesting the Government as well as Horticulture Department to start an atmosphere storage facility, so that the vendors can export the apples, but their demand has not been met.
“We had two plots at the Narwal mandi, which were suitable for establishing the controlled atmosphere storage facility and we approached the Horticulture Department many times in this regard, but to no avail,” Rajesh Gupta, added.
Even after giving assurance to the fruit and vegetable vendors, there is no sign of initiative by the Government and the Horticulture Department.
He also said since the project involved finances of Rs. 10 to 15 crores, the department was offered to take up its establishment in public private partnerships (PPP), but without any success.
Rajinder Gupta, President, Vegetable and Fruit Mandi Association, Narwal, said, “In summer, fruits shrink due to high temperature and their quality gets weaker, that leads to low prices. If fruits like apple and apricot are preserved under controlled atmosphere, we can obtain good prices.” Some of the essential varieties of apples grown in Kashmir valley are Ambri, Delicious, American Teral, Maharaji, Piazratbali, Kesari and Royal Misri, while nearly 500 varieties of mango, each with a typical taste and flavour, are found in the Jammu, which is supplied to Delhi, Punjab, Haryana and Rajasthan.
Giving presidential address, Prafulla Samal, Minister, MSME,W&CD, SSEPD expressed satisfaction over successful implementation of the International Trade Fair and holding of 4 seminars, which have been well attended and well received by the existing as well as budding entrepreneurs. Odisha is bestowed with natural and agro resources, offers employment opportunities in food processing sector and assured best facilitation to the entrepreneurs. Economic Advisor from Ministry of Food Processing Industry, B.K. Behera said that over Rs.1 lakh crore worth of food is wasted in India, which can actually feed many small countries. “There is a need for waste reduction by setting up of food processing units, which has large employment potential. Though India occupies the status of leader in food production, but only 10 per cent of food is processed.” Director of Indian Institute of Packaging (IIP), Mumbai Dr. N.C. Saha, stated that food processing is globally a $770 billion market providing employment to over 5 billion people. “Packaging is an integral part of food processing.
She also directed the officials to hold discussions with food processing companies based in Israel, Dubai and other countries so that MoU can be signed with them in the upcoming global Rajasthan agritech get together in Jodhpur.
Denying the claim, S.K. Fotedar, Deputy Director, Planning and Marketing, Horticulture Department, said there was a scarcity of land in the area, as many shops needed to be accommodated in the Narwal mandi. Deputy Director, said, “The controlled atmosphere storage is impossible in the present scenario”. He, however, maintained that nearly 250-300 kanals under the Forest Department occupation were lying vacant contiguous to the mandi and if that land was acquired, the storage system could be established there.
Odisha holds immense potential for MSMEs in Food Processing & Packaging
seminar on “Food Processing in Odisha with Focus on Packaging” was held on the sidelines of Odisha MSME International Trade Fair, 2018. Presentations and topics on newer technologies that could be adopted by entrepreneurs of Odisha for Ragi, Rusk, Millets, Jackfruit, Tamarind, other fruits and vegetables processing. Adoption of intelligent packaging was mainly highlighted as the need of the hour. With attractive incentives up to Rs.5 crore available under the Odisha Food Processing Policy coupled with benefits under Kissan Sampada Yojana, entrepreneurs can set up food processing industry in 2 mega Food Parks developed at Deras for the marine sector, MITS Food Park for the mixed products at Rayagada and other industrial estates.
the farmers for 15 days and work on the plan.
Asia Pacificcountries constitute 3rd largest market in packaging sector.” He added that packaging is a combination of science, art and technology, which not only adds self-life to a food product, but also adds to the value of the product. In the context of the food items like rasagola, talgur, tamarind paste, spices produced abundantly in Odisha, setting up of state of the art packaging units in Odisha is an attractive proposition. Packaging will enhance branding, improve preservation and ensure value addition. L.N. Gupta, ACS, MSME stated that Odisha is the 4th largest shrimp producer in the country and 9th largest fish producing state. It has 25 lakh MT of surplus cereal production and more than 32 lakh MT of surplus rice. Besides, it produces 100 lakh tons of vegetables, 85,000 MT of cashew, 6.5 lakh tons of spices and 20 lakh tons of milk, which altogether offer a huge potential for food processing industry in the state. “Odisha offers opportunity of investment in primary processing from ‘cleaning & sorting’ to ‘chilling & freezing,’ Secondary processing from ‘making slices & pulps to cut/fried chilled items and Tertiary processing from ‘manufacturing ketchups & jams’ to Ready-to-Eat (RTE) meals.” CEO of Milk Mantra, Srikumar Misra, emphasized on the need by entrepreneurs to focus on innovation of products based on market demand. “The products should be nutrition based and convenience led. In regards to dairy sector, there is a need to educate the consumers to adopt the practice of utilizing the fresh milk rather than powder milk because of higher nutritional value of the former.” Director of Agriculture & Food Production, Muthu Kumar stated that government is laying emphasis on clustered growth in the agri business sector and accordingly, efforts are being made to develop clusters of turmeric cultivation, ginger cultivation, chilly and for certain fruits. President of UCCI, Ramesh Mohapatra informed that at present there are 15 aqua hatcheries in the state, the production of which is going to rise to 27 shortly. “Odisha has 24,000 hectares of land under aquaculture, which is providing nearly 1 per cent of the total employment in the state.”
hief Minister Vasundhara Raje said Rajasthan Sriganganagar will soon be made the hub of food processing and logistics units would be set up. During an interaction with farmers and traders in Sriganganagar, Raje aimed the industry and agriculture departments to hold discussions with
She also added, for National Agricultural Cooperative Marketing Federation of India and Rajasthan State Co-Operative Marketing Federation Ltd. (RAJFED), Rs. 498 crore funds has been sanctioned. The farmers can soon get compensation of the crops purchased on support price. A farmer, Ved Prakash Sharma complained about the poor superiority tissue culture plant that was purchased from the horticulture department. The chief minister directed the officials to register an FIR against the company. Raje further intended to provide compensation to the farmer.
Two mega cold chain facilities to come up in Kerala
leading cold chain turnkey solution provider Rinac India Ltd. has been received the order to set up two mega integrated cold chain facilities in Kerala. The tender is to establish integrated cold chain facilities for bulk handling and processing of food and perishables for Kerala Industrial Infrastructure Development Corporation (KINFRA) and Kerala State Industrial Development Corporation (KSIDC). The combined value of both the orders stands at Rs.32.81 crore. KINFRA has given Rinac the contract to set up an integrated cold chain facility consisting of cold storage, ripening chambers and spice processing unit at KINFRA Mega Food Park, Kozhippara, Palakkad. KSIDC received the contract for design, construction, supply, installation and commissioning of a 3,000-tonne cold storage facility in the approved Mega Sea Food Park at IFC Pallipuram, Cherthala. The facilities will be set up on an area of 2.5 acres in KINFRA Mega Food Park and one acre at KSIDC Sea Food Park, respectively. The
projects will be completed in 12 months’ time. Rinac has executed mega projects for setting up perishable cargo handling facilities at the international airports in Kochi, Delhi and Bengaluru, the India Food Park, Tumkur, North East Mega Food Park, Guwahati and cold chain projects under NHM/ MOFPI’s integrated cold chain and the mega food park scheme on a turnkey basis.
Tamil Nadu will soon get mega food parks across state: Panneerselvam
n a bid to promote food processing in state, the Tamil Nadu government would soon set up mega food parks that would lead to creation of jobs in rural areas of the state, Deputy Chief Minister O. Panneerselvam said. During a budget session Panneerselvam said that in addition to the proposed Mega food parks, an ‘Ultra Mega Food Park’ would also be set up on a 450-acre land at Pelakuppam village in Villupu-
ram distric. The mega food parks would evolve as hubs for food processing in fruits and vegetables, fisheries, dairy, poultry and meat by encouraging private investment and are expected to generate substantial employment in rural areas, he noted. The Mega Food Parks would be established in Theni, Virudhunagar, Tuticorin, Erode, Cuddalore, Salem, Dindigul, Tirunelveli, Tiruvannamalai and Krishnagiri districts. Stating that a strong and dynamic food processing sector plays a vital role in reducing wastage in the farm sector, Panneerselvam said, “With an aim to creating conducive environment for the food processing industry, an exclusive food processing policy will be unveiled in 2018-19.”
Vol. 10, Issue 11 -April- 2018
Coca-Cola plans to cut 250 and 350 jobs — mainly management positions Globally, Coke employs more than 100,000 people. James Quincey, Coca-Cola’s CEO, has promised to transform Coke into a “total beverage company and are taking the necessary steps in a Coke way — humanely and with dignity — but productive.
oca-Cola’s net revenues dropped 20 per cent during the fourth quarter, according to its most recent earnings report, in part due to the process of refranchising bottling facilities. Sales of branded water, sports drinks, and tea and coffee beverages — a focus of growth for the company — were up compared to its core soda business as consumers trend away from sugary drinks and toward healthier and lower-calorie ones.
Hence Coca-Cola plans to cut between 250 and 350 jobs — mainly management positions at its Atlanta headquarters — as part of an ongoing reorganization. The layoffs will start this week and be staggered during the next few months. The company will eliminate some jobs, “re-orient others” and create new positions, so it hasn’t stopped hiring. These newly announced cuts are separate from the company’s reduction of about 1,200 jobs worldwide announced last year, with about half of those taking place in Atlanta. Coke has about 8,000 total employees in its North American business unit, with about 5,000 of them working in Atlanta or at another facility in Alpharetta, Georgia.
Coke’s soda competitors, along with Big Food manufacturers, have also been laying off staff as they look to consolidate operations and trim wherever they can in the face of slumping sales. PepsiCo announced last year it would cut 80 to 100 jobs after sales dropped 40 per cent following adoption of a soda tax. With Coca-Cola overhauling its bottling operations, the company no longer needs as many people in these positions. It appears these layoffs are part of a broader reset rather than a sign of an underlying problem. As the company looks to expand its presence in the beverage space — and develops new technology to make its drinks more appealing — Coca-Cola will likely look to boost its ranks in these areas. Three years ago, Coke announced that it planned to cut operating costs by $3 billion by 2019, and Quincey said last year that target had increased to $3.8 billion. That’s a big target and a tough goal to reach just from reducing administrative overhead unless more job cuts — and/or major changes to its product lines — are in the works.
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Vol. 10, Issue 11 -April- 2018
Manpasand nutritional drink portfolio under “Siznal”
Facing the heat of threat PepsiCo converts slice into carbonated drink timated Rs. 22,000 crore soft drink category, and sell on the back of distribution in smaller captive markets, priced almost half that charged by the multinationals, with limited costs on marketing and advertising, and direct reach to retailers.
hirendra Singh Chairman and Managing director of Manpasand have launched nutritional drink portfolio under “Siznal.” He made a blend of fruit and vegetable juices as people now a days have great demand of these types of juices. He grew in rural northern India and later founded Vadodara based Manpasand Beverages in the state of Gujarat. Singh is looking to encourage consumers with new products, by making healthy drinks its majority. Siznal will come in the varieties of Carrot and Orange, Cucumber and Spinach, Beetroot and Carrot, and Pomegranate and Carrot. It will be available through general trade, modern retail stores, food chains, and institutional tie ups. Dhirendra Singh said, “Siznal is a blend of fruits and vegetables juices with the goodness of honey. The brand
doesn’t contain any preservatives or added sugar and is high on nutritional value.” The product will be available in PET bottles, each bottle priced at Rs 25. The company is focusing on healthier beverages and to help farmers by procuring their produce in competitive prices. The company has completed setting-up of its sixth manufacturing facility in Gujarat. Singh said Manpasand aims to grow assertively across India, and keep logistics cost low along with capacity rise. “We will produce the entire range of Fruits Up, carbonated and non-carbonated, Jeera Sip, Siznal, along with our flagship brand, Mango Sip,” he added.
Indian companies challenge study claiming 90 per cent of bottled water contaminated by microplastics On average, plastic particles in the 100 micron (0.10mm) size range -known as microplastics -- were found at an average rate of 10.4 plastic particles per litre. Even smaller particles were more common, averaging about 325 per litre. According to Ramesh Chauhan, Chairman and Managing Director, Bisleri International, Bisleri water undergoes a stringent 10-step purification process.
ndian bottling companies have challenged the findings by the report, led by Orb Media, a US-based non-profit that 90 per cent of bottled water from leading brands are contaminated by microplastics, saying they enforce strict quality control. The report said that there was widespread contamination with plastic debris including polypropylene, nylon and polyethylene terephthalate (PET) in 93 per cent of the 259 individual bottles across 11 brands sold in nine countries, including Brazil, China, India, Indonesia and the US. Plastic was identified in 93 per cent of the samples. Particle concentration ranged from zero to more than 10,000 in a single bottle. The brands tested included Aqua (Danone), Aquafina (PepsiCo), Bisleri (Bisleri International), Dasani (Coca-Cola), Epura (PepsiCo), Evian (Danone), Gerolsteiner (GerolsteinerBrunnen), Minalba (Grupo Edson Queiroz), NestlÃ© Pure Life (NestlÃ©), San Pellegrino (NestlÃ©) and Wahaha (Hangzhou Wahaha Group). The findings suggested that a person who drinks a litre of bottled water a day might be consuming tens of thousands of microplastic particles each year.
epsiCo is converting one of its key brands - mango drink Slice - into carbonated fruit drinks so that it can compete with the increasing threat of low-priced regional brands. It has been priced about 30 per cent cheaper than its existing range of juices and aerated drinks and would be in 250 ml PET packs, with artificial sweeteners. Slice, which competes with rival Coca-Cola’s Maaza and Parle Agro’s Frooti will continue to be exist in its original variant as well. Prime Minister Narendra Modi had first urged cola companies to blend aerated drinks with 5 per cent juice from fruits produced by farmers and PepsiCo has complied with it and have also started adding fruit juice in carbonated beverages, in line with a request from Prime Minister Modi to the beverage industry,”. Over two hundred B-brands, or regional brands contribute well over 15 per cent share of the es-
As per the WHO, packaged drinking water is a lifeline for many of the 2.1 billion people worldwide who lack access to safe tap water and it is valued at $147 billion per year; bottled water is the fastest-growing beverage market in the world. Also the potential to cause chronic diseases, contamination of drinking water with pathogenic micro-organisms can cause a number of waterborne diseases. However, the researchers are not yet sure about the extent and consequences of it on human health, the Orb report said.
MNCs across the beverages and foods space are increasingly taking their big brands hyperlocal to fight off smaller, regional players, which thrive on lower costs and localized flavours According to the existing tax slabs, if fruit juice is added to aerated drinks, they are taxed at 40 per cent effectively. But if aeration is added to fruit juice, then the goods and services tax (GST) is 12 per cent. Coca-Cola and PepsiCo had lobbied for removal of the 12 per cent cess in this year’s Budget but no changes were made on the taxation. Further, absolute margins on the low-cost drinks are thin, but large companies are pushing these to gather volumes. Cola companies are pulling all stops to get consumers back. In Japan, Coca-Cola is experimenting with alcoholic drinks to bring consumers into its fold.
Currency shortage lifts PepsiCo budget making a mark on the local market driven by their affordability. Varun Beverages corporate affairs manager, Fungai Murahwa, said cost cutting measures and affordability will give his company an edge. “We expect the project to cost around $40 million from the initial budget of $30 million due to an increase in the prices of raw materials triggered by foreign currency shortages”, he said.
All Bisleri production facilities have their own quality testing labs that ensure that every Bisleri product is made as per guidelines set by the Bureau of Indian Standards (BIS) and WHO (World Health Organisation). PepsiCo India also opposed the findings saying Aquafina maintains rigorous quality-control measures, sanitary manufacturing practices, filtration and other food safety mechanisms which yield a reliably safe product for enjoyment anywhere in the world. According to PepsiCo the science of microplastics and microfibers is in its infancy. Microplastic particles are found across our environment, including soil, air and water.
Soft drinks consumption in urban markets is declining because of health concerns over sugar, consumption of bigger brands in two and three-tier and rural markets is under pressure because the consumers here are price sensitive and show preference for the lower-priced B-brands. In this regard even rival Coca-Cola had piloted Kinley Flavors in localised flavours such as lemon, jeera and orange. The brand, though, is being revisited, and is yet to be rolled out across markets.
everages giant PepsiCo India is facing currency shortage in Zimbabwe. Recently company’s Indian arm Varun Beverages, has started manufacturing operations in the country, but says the cost of setting up its plant might spiral from the initial budget of $30 million to about $40 million due to foreign currency shortages. Most companies in Zimbabwe are struggling to secure to foreign currency to import equipment and important raw materials. This has seen some firms increasing prices of the products due to cost from premiums on foreign currency bought on the parallel market. PepsiCo has already seen spent $22 million on phase one of the plants, with more capital expected to be invested as the project progresses. The plant will be built in phases, totaling four on completion. This will see an increase of Pepsi branded soft drinks and other brands. PepsiCo started operations last month and its products are already
As we speak phase 1 has been completed and it cost the company around $22 million and there are three phases to follow. Phase two is expected to be completed by September this year,” said Fungai. He said the beverages manufacturer had so far employed 150 people. However, Pepsi said it will not increase prices of its products, and plans cost cutting measures to avoid the need to hike its prices. Murahwa said: “I don’t think that the company will increase prices anytime soon as we are doing backward integrations in order to manage costs of production”. “Future investments will depend on how well the current investment is performing, as well as new opportunities that may arise. Competition is good for the economy in general and for the beverage industry in particular.” PepsiCo said it will launch its new water product called Aquaclear in the next next few days. The products will retail for $0,25 per 500 ml
Vol. 10, Issue 11 -April- 2018
Pepsi to introduce fruit juices under the Slice brand
epsiCo Inc. is ready to introduce fruit juice drinks under the Slice brand with an affordable range. Company is bringing back Slice in its unique form as an aerated drink with 10 per cent real fruit juice, just as it first introduced the product in the US in 1984. Vipul Prakash, senior vice-president (beverage category), PepsiCo India said, “We will shortly be introducing an affordable range of locally relevant fruit juice drinks with fizz under the Slice brand,” The new range of Slice, PepsiCo India said in a statement, “fruit juice drink with fizz” that will include both “ethnic favourite’s like jeera, guava chili and mainstream flavours like apple, lemon, orange and clear lime”. “All these variants will have over 11 per cent juice,” the company added. According to the company, the new range of fizzy Slice will have fewer calories in line with PepsiCo’s global agenda of lowering calorie content in its products.
Priced at Rs12 for 250ml PET bottle, fizzy Slice will be about 30per cent cheaper than other carbonated and non-carbonated drinks that PepsiCo sells in India. By the lower pricing, PepsiCo is hoping to gain share in rural and semi-urban markets that are rising faster than the metro markets and are currently conquered by juice and regional cola brands, such as Bovonto in Tamil Nadu and Jayanti Cola in non-metro northern India, among others. “By riding on both company and franchise go-tomarket sales and distribution infrastructure, we want to dial up growth and market access for our juice products in these key rural, ROU (rest of urban) markets,” PepsiCo said in the statement. In its new version, Slice will come with a few twists more fruit content, less calorie and with new flavours, some of which are ethnic Indian. To be sure, this is the first category addition for Slice that PepsiCo India Holdings Pvt. Ltd launched in India as a mango drink in 1993. It aims to have at least two third of portfolio with 100 calories or less from added sugars per 355ml of serving by 2025. Frooti-maker Parle Agro also launched the fizzy version of Frooti—the first brand extension for the popular mango drink launched 32 years ago. The company also sells Appy Fizz. The launch of Frooti Fizz, came four months after the Food Safety and Standards Authority of India (FSSAI) set new standards for carbonated fruit beverages defining the category. Prime Minister Narendra Modi, had in urged companies like Coca-Cola Co. and PepsiCo Inc. to mix natural fruit juices (at least 5per cent) in aerated beverages to help boost fruit sales for Indian farmers.
FOOD PROCESSING NEWS
Vol. 10, Issue 11 -April- 2018
FOOD SAFETY NEWS
Nestle adopts regional cluster approach to fast-track growth; to reduce salt content in Maggi Narayanan said the company is working on reducing salt and sodium content in Maggi noodles by 10 per cent over the next 12-18 months, in line with evolving consumer preferences. Nestle has reduced sodium and salt content in Maggi noodles by about a third over the past few years, and last year, reduced sugar content in chocolate brand Milkybar and Milo milk drink.
ackaged foods maker Nestle India has kicked off a regional, cluster approach for brands, marketing and activation to fasttrack growth and has identified enhanced nutrition as a core focus area, company Chairman Suresh Narayanan said . “The maker of Maggi instant noodles, KitKat chocolate and Cerelac infant foods, which crossed Rs. 10,000 crore in sales for the year ended December 2017, will push increased penetration of products for volume-led growth, which would lead to profitability, he said.” “We are evolving a structure to divide markets into 10-15 clusters, and are segmenting product variants, distribution, sales, marketing and communication in relevant geographies,” Narayanan said. Product segmentation would mean regional variants of existing brands across the portfolio, for example, for ketchup, coffee and confectionery. The India arm of the Swiss company is targeting minimum 3-5per cent incremental sales each from the regional variants.
Nestle will accelerate innovation and is looking at a dual strategy of hyper localisation and bringing in new products from its global portfolio including protein supplements, in line with its objective of broadbasing its portfolio as a multi-brand company. Narayanan said of the over 40 new products that were launched last year, about 10-15 per cent needed to be re-tweaked or discontinued, while the rest were successful. He said premium coffee and snacks were potential categories the company is actively exploring venturing into. Its mainstay brand Maggi contributed 35 per cent of the company’s reported growth in 2017, while 25 per cent growth came from new products. Narayanan said the company, which follows a January-December ’17 accounting year, is optimistic on the consumption outlook. “The last couple of quarters have been fairly encouraging in terms of urban consumption, along with relatively stable commodity prices. Rural growth could be impacted by monsoons, but we expect mid to high single growth,” he said.
FSSAI gives relief agents & distributors of direct selling firms by easing rules of their direct sellers on its own instead of each direct seller getting individual registrations. Direct selling is a form of retail in which products are marketed directly to consumers through a network of agents.
ast year, Food Safety and Standards Authority of India (FSSAI) had issued guidelines for direct selling companies, bringing their agents under its domain which hampered business. Earlier the food regulator had mandated that all food business operators will need to take relevant FSSAI licenses, to be updated on a quarterly basis, along with details and identities of the sales force. Companies will need to take undertakings of their agents and be liable to sampling and checks by the authorities.
The direct selling industry being an extremely popular self-employment model across the world has almost doubled , in India since 2011 to reach Rs. 12,620 crore in 2016 and is expected to grow at a compounded annual growth rate (CAGR) of about 4.8 per cent to reach Rs. 15,930 crore in 2021, according to a study undertaken by industry body Assocham. Then again in a latest notification direct selling companies, like Herbalife and Amway can now get bulk registration on behalf
And also their agents and distributors that involved with direct selling companies will no longer need to have storage facility or premises for registering with the Food Safety and Standards Authority of India (FSSAI). According to FSSAI these direct sellers do not have premises/storage facility and therefore find it difficult to obtain registration as direct sellers from Registering Authority. The Direct Selling Agents are attached to Direct Selling Entities (DSE) which are responsible for safe storage and transportation of food products. Also the direct sellers will now have to submit lesser number of paper for registration.“...Registration of such mobile direct sellers could be done by respective registering authority on production and verification of their identity certification/authorization issued by Direct Selling Entities along with personal identity proof.
FSSAI sets guidelines for food recall plans
he Food Safety and Standards Authority of India (FSSAI) has set new guidelines for the food companies to submit their details of the procedures and mechanisms that they have put in place internally to retrieve their food or food products from the food chain in case a product is found to be unsafe for consumption, top 200 companies has directed to submit their plans, as part of its efforts to implement food recall guidelines. They will also need to give details of their recall management teams tasked with the food recall plan. Some of the companies that the FSSAI has written to include Hindustan Unilever, ITC, Cargill India, Nestle India, Patanjali Ayurved, PepsiCo India, Coca-Cola India, Mondelez India, Tata Global Beverages, Marico, Kellogg’s India, Bisleri International, GSK Consumer Healthcare and Dabur India. The letter has also been sent to other key domestic players such as Kohinoor Foods, Parag Milk Foods, Mother Dairy, Mawana Sugars, Harvest Gold and Havmor Ice creams. They will need to submit their plans within the next two months. Pawan Agarwal, CEO, FSSAI, said, “While we
have initially asked the top 200 companies to submit their fresh food recall plans, we will also ask other food companies to do the same. This plan will need to give details on the procedures and mechanisms these companies have put in place in case of an emergency event where they would need to recall a food product.” “Food Business Operators carry the prime responsibility of implementing the recall, and for ensuring compliance with the recall procedure at its various stages including follow-up checks to ensure that recalls are successful and that succeeding batches of the food products are safe for human consumption,” according to the guidelines issued by FSSAI. He added that while all companies need to submit these plans at the time of licensing, the regulator has now asked them to submit a fresh plan. While in developed countries, food companies are known to regularly recall their products as per the established protocol, the last time a massive food recall plan was kicked off in India was when Nestle India faced the Maggi Noodles crisis in 2015.
Karnataka government to launch fortified food for children
arnataka health department will be launching five fortified food products with additional nutrients, which will be made mandatory for children’s consumption with the aim of making children healthy and strong. The five products planned to be fortified are milk, salt, oil, rice and wheat. When this plan is executed, Karnataka will become the second state to make mandatory fortified food products available to its masses, after Rajasthan. The state health department officials had convened a meeting to execute the plan to introduce fortified food products and identify nutrients that will be added to these products. Another round of meeting is planned this time with officials of FSSAI. The health department identified these five food products for fortification because these are consumed on a daily basis by children as well as adults. As part of the plan, producers of fortified food have to ensure that adequate and required nutritional supplements are added to these products. Senior health department officials told that with inadequate nutrients children suffered from various health issues. “For instance, due to lack of vitamin A, children have problems with eyesight. Similarly, due to lack of vitamin D, bones become
weak. In order to create a strong generation, we need to provide children with the required nutrients,’’ said a department official. Harshavardhan B, Joint Commissioner, Food Safety Commissionerate, said that a meeting was also convened with the stakeholders concerned. “We are going to launch it in the state very soon. We will be the second state to make fortified food products mandatory after Rajasthan. Once it is launched, manufacturers and vendors have to sell these products. People should check if these contents are there in these products, and only then buy’’. The health department also plans to publicise the fortified food products as awareness is important. The senior official said, “With the help of media, we will sensitise people and make them buy these products after all, it is for their benefit”. Prof. M. B. Rajegowda, an agrometeorologist, who works at UAS, said, “We have requested agriculture minister Krishna Byregowda to give incentives or better support price for such products that have additional nutrients. We need to encourage growers of such products,’’ he added. He said based on geographical area and rainfall pattern, not just these food products, even vegetables and fruits can be added with nutrients.
‘Serve Safe Food” by Nestle India
erve Safe Food’, a program run by Nestle India in collaboration with Food and Drugs Administration (FDA), Maharashtra and NASVI, will train street vendors in the state of Maharashtra through a mobile van, they will get training on critical and important subjects of health, hygine, safe food handling, waste disposal and entrepreneurship along with that the aim is to help improve the livelihoods of street vendors across the state, with the support of Food and Drugs Administration (FDA) Maharashtra Chief Minister of Maharashtra, Shri Devendra Fadnavis inaugurated Project ‘Serve Safe Food’ Project ‘Serve Safe Food’ has already benefited close to 5000 street food vendors across India since its launch in November 2016 and will help an additional 3600 street food vendors across the state of Maharashtra. Shri Devendra Fadnavis, said, “If we can make street food vendors aware of the importance of food safety and hygiene it will
lead to a brighter future for them. This proposal is a great way to not only make sure healthy food for consumers but also facilitate street food vendors to maintain better livelihoods.” Mr. Suresh Narayanan, Chairman and Managing Director, Nestle India, added, “We want to build and distribute knowledge through collaborative partnerships to help improve food safety in the country. I would sincerely like to thank the Government of Maharashtra and NASVI for supporting this initiative and enabling all the participants.” Dr. Swati Piramal, Director on the Board, Nestle India and Vice Chairperson, Piramal Enterprises Limited said, “Enhancing livelihoods and ensuring safe food is at the core of Nestle India’s societal initiatives. This training programme will enable street food vendors to serve clean and hygienic food. This scheme will go a long way in improving the livelihood of street food vendors and ensuring that Food served to people is safe and healthy.”
FOOD SAFETY NEWS
Vol. 10, Issue 11 -April- 2018
Red eyes on FSSAI traffic light system
ppose on FSSAI’S imposition of traffic light system for food items in school canteens has started. Manufactures of food items kept under red label (“discourage availability in schools”), raised voices against FSSAI orders. “There are so many practical ways to develop health awareness. Why attack our industry?” said Dr Subodh Jindal, president of the All India Food Processors. Indian food manufacturers have this month strongly objected to pre-draft legislation which would colour code food served or available in, schools. A consultation paper, called Food Safety and Standards (Safe and Wholesome Food for School Children) Regulation, 2018, is currently open to stakeholder feedback, and encompasses food sold or served anywhere on a school’s premises, including vending machines. The would-be regulation outlaws all ‘HFSS foods’ (high in fat, salt, or sugar) in schools, including HFSS food advertising, and under the law a wide range of operators and areas must be compliant, including: manufacturers, processing, packaging, storage, transportation, distribution, food services, and catering services. The colour chart to which all food provision in schools would adhere under the new law, places foods into three categories: Red (“discourage availability in schools”), Yellow (“select carefully/ to be eaten occasionally in small portion size and reduced frequency”), and Green (“always on the menu at least 80 per cent of the food available should be from this category”). Dr. Subodh Jindal, president of the All India Food Processors’ Association told IEG Policy that he does not support the traffic light system: “Each consumer is unique in their food consumption needs and are best assisted by studying nutrition labels on food packaging. Indian food manufacturers already provide nutritional information on their products, so where is the need for traffic light labelling?” He said the system is “too simplistic” and could confuse consumers. Jindal said he would like to see clear evidence that traffic light labeling works before industry is forced to adopt it, and cited additional concerns over the cost of re-designing and re-labeling food packaging. “There are so many practical ways to develop health awareness. Why attack our industry?” - Dr. Subodh Jindal. Pawan Kumar Agarwal, CEO of the Food Safety and Standards Authority of India (FSSAI), told IEG Policy that whiles the regulation is in progress it is still a way from finalisation. He said the authority had “not finalised even the draft” regulation. “What is online is a pre-draft. It will become a draft when it is sent to the minister,” he said.
Keen to assuage industry concerns, Agarwal confirmed that the “concerns of food businesses” would be looked into before finalising the draft regulation. He said that while re-labelling was part of the plan, time would “obviously” be given to businesses to make required changes. Agrawal conceded that greater understanding was still required in order to detail what constitutes healthy and unhealthy foods to ensure more precise guidance. And he said that the possibility of voluntary regulation was still on the table: “This is also a question that will be addressed when we look at the comments on the draft, namely, whether the purpose will be served by keeping it voluntary. All of these things are open as of now,” he said. Jindal believes that methods of driving awareness around food choice and physical fitness, such as children’s engagement in health promotion activities in schools is a more reasonable way forward.
E-commerce companies violating labelling guidelines: CERC
-commerce companies in India are not an adhering to the labelling guidelines mandated by the government, Ahmedabad-based consumer rights body, Consumer Education and Research Centre (CERC) said on the eve of World Consumer Rights Day (WCRD). The findings are a result of a survey conducted by CERC. Ministry of Consumer Affairs (MoCA) amended the Legal Metrology (Packaged Commodities) Rules, 2011, through a notification on June 23, 2017. The new regulations, that came into force from January 1, 2018, mandates e-commerce firms to display MRP of goods along with other mandatory labeling information on their websites. However, the survey, conducted across product categories of food, toys, household items and shoes on popular e-commerce portals like Amazon, Snapdeal, Flipkart and Bigbasket, revealed gaps in compliance. It was found that companies did not display of MRP, there was a variation in MRP from portal to portal and manufacturing date, use before date, best before or expiry date were not mentioned, a
violation of mandatory labelling requirements of Food Safety and Standards Authority of India (FSSAI). “The ministry should institute a system to monitor compliance with labelling regulations. Especially display of MRP and other labelling requirements, on all e-commerce portals and to have stringent enforcement mechanisms for the same,” said Pritee Shah, chief general manager of CERC. None of the portals carried images of any product displayed on the product label showing MRP. Where an image of the label was available, it showed the printed word ‘MRP’ with a blank space after it. The product Figaro Olive Oil Tin 500 gm showed MRP of Rs. 495 on Amazon and MRP of Rs. 700 on Snapdeal. According to the survey, none of the portals carried images of actual product label showing the date of manufacture and use before, best before or expiry dates for food products. The portal pages also did not carry these details of food products.
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Vol. 10, Issue 11 -April- 2018
Walmart to set up store in Vizag Rajneesh Kumar said “We have acquired roughly four acres near Autonagar on lease and will complete the construction in two months with a built up area of 56,000 sq ft and parking facility for 150 cars”.
almart India is ready to start up its store in Vizag Gajuwaka Andhra Pradesh. The store openings will also provide direct and indirect job opportunities. It will be the fourth Walmart best price store in Andhra Pradesh. Walmart India will open its store at Gajuwaka here later this year. It will be the fourth Walmart Best Price store in Andhra Pradesh. The store, which sells consumer packaging goods, general merchandise, electronic appliances, fresh fruits, vegetables and dairy products, is now at advanced stage of construction at Gajuwaka. Walmart India Chief Corporate Affairs Officer
The store, he said, will generate 2,000 direct and indirect jobs. Almost 90 to 95 per cent of the products will be sourced from local farmers and vendors. The firm would sell the Araku Valley Coffee and Girijan Honey made by the Girijan Cooperative Corporation. Walmart has stores in Vijayawada, Rajahmundry and Guntur in the State. Officer Kumar said the company was in search of another site for opening a second store in a centrally located place in the city. “We also have plans to set up wholesale cash and carry stores at Tirupati, Nellore, Kurnool, Nellore, Kadapa and other locations,” he added. During 2018, Walmart will open five to seven stores across the country.
Grofers raises Rs. 400 crore in fresh funding round led by Softbank Our efforts have clearly contributed in making sure we have a clear path to profitability as well as the largest market share in the online grocery segment; having grown four-fold in the last one year for monthly sales in excess of `100 crore”, said Albinder Dhindsa CEO and co-founder Grofers.
o make largest share in Indian grocery market segment online grocery delivery platform Grofers has raised Rs. 400 crore in a fresh funding round led by SoftBank Group, Tiger Global and Apoletto Asia. Company in its recent release said that it has now cumulatively raised $226.5 million with this latest Series E funding round. According to Grofers, it will continue to invest in building private labels and supply chain improvements. A significant amount of investment will go towards building infrastructure and technology and efficient supply chain management to achieve deeper penetration in the cities where it has its presence. “This fresh round by our existing investors is a vote of confidence and trust in the turnaround at Grofers. We took some hard decisions to fix parts of the business that were not scaling well.
Grofers, founded by Saurabh Kumar and Albinder Dhindsa in 2013, has previously raised $166.5 million from investors like SoftBank, Sequoia Capital and Tiger Global.Online grocery market in India is expected to touch $1 billion by this year compared with $600 million in 2016. The online grocery delivery market in India has started to witness increased competition with other leading player BigBasket having raised funding to the tune of $300 million led by China’s Alibaba. Besides these players, the leading horizontal marketplaces like Amazon and Flipkart are also making a strong foray into the online grocery delivery space.
group campaigning for a ‘GM-free’ India has written to the Food Safety and Standards Authority of India, asking it to crackdown on sale of all genetically modified food in Indian supermarkets and initiate prosecution against those violating the law.
locations all over the country such as Bengaluru, Noida and Mumbai, it said. Neither Genetic Engineering Appraisal Committee (GEAC) nor FSSAI have not approved any of these products, Kavitha Kuruganti, co-convenor of the Coalition for a GM-Free India, said.
The GM foods are not permitted to be sold under the Indian Food Safety and Standards Act.
As mentioned by Union Health Minster in Parliament on December 29, various companies have been illegally importing and selling genetically modified soyabean and canola oil for human consumption, the group said.
In a letter to the Chief Executive Officer Pawan Kumar Agarwal and Chairman Ashish Bahuguna of the FSSAI, the Coalition for a GM-free India said that certain brands of imported packaged food are openly being sold. The label on various products says ingredients could be genetically modified, in various stores in
MCG major ITC said Aashirvaad atta has become Rs. 4,000-crore brand in wheat flour market with around 28 per cent share in the branded segment. The company as part of its expansion plans is also expanding brand Aashirvaad into new segments as milk and ghee in the dairy category, besides spices, instant mixes, ready meals etc. ITC Divisional Chief Executive Foods Division Hemant Malik said “Aashirvaad is India’s number one branded packaged atta with a consumer spend of over Rs. 4,200 crore, The brand has been growing at the rate of 16-17 per cent CAGR over the last many years and we hope to continue this growth momentum.” Branded wheat flour market is growing rapidly in India and around 60 per cent of households purchase wheat 25 per cent, loose wheat flour and balance 15 per cent buys packaged wheat flour. Malik said, “we are having 28 per cent share of that (packaged wheat flour). The company is now offering customised atta blends in wheat flour category in accordance with regional preferences; and in health segment, it has sugar release control atta, and multi grains etc. We have customised blends for different regions. We have also crafted variants in the health and wellness space which includes Aashirvaad Multigrain atta and Aashirvaad Sugar
“We request you to take strictest action to all those who are violating the law and ensure that un-approved products must be removed from the shelves immediately, whether in a packaged form or lose,” Kuruganti said.
Release control atta.” The company has extended Aashirwad brand into cow ghee and also launched Aashirwad milk last month in Munger at Bihar. “Now the brand Aashirvaad has spices and salt. All the basic staple food, we believe that Aashirvaad brand has a great efficiency.” The company is leveraging its network of e-Chaupal and chaupal sagar to source quality products from the farmers. It will also evaluate some other segments like maida, suji, besan for expansion of Aashirwad brand. Besides, ITC also exports Aashirwad atta to 32 countries, including US, Canada and Middle East, targeting the Indian diaspora. The export is presently about 7 per cent of total sales. Clarifying on recent videos being circulated in social media platforms such as Whatsapp and Facebook alleging the company mixes plastic in Aashirvaad atta, ITC said those are ‘malicious’ and are ‘wrongly’ claimed. Malik said, “What is being shown as plastic in these mischievous videos is actually wheat protein which is a mandated component of atta by the FSSAI. Protein is an integral part of any atta/wheat. This protein is what binds the atta. Without this protein, it is not possible to roll chapattis. There is a court order issued in ITC’s favour which restrains the circulation of such fake videos on social media.”
Truefarm Foods gets online platform for products cious organic alternatives. Truefarm aims to provide 100 per cent nutrition with cent per cent organic source through its products.
Company claimed that it currently clocks an average of 25,000 orders a day with an order value of 1,400 and turned operationally profitable in Delhi-NCR on a per-order basis.
Demand to remove GM Food from market
ITC’s Aashirvaad becomes Rs. 4,000 cr brand ventures into new segments
ith several companies opting to make use of digital space for greater market presence, Truefarm Foods - organic food company based on nutrition science has taken the right move in this regard promoting Digital India. The company has launched its products on Amazon India. To make India healthy, Truefarm offers a wide range of products such as pulses, superfoods, spices and nuts, breakfast cereals, flours and sweeteners. They intend to replace food items in daily diet with healthier, chemical free, nutritious and deli-
Truefarm products are priced from Rs. 45 to Rs. 850. It is encouraging consumers to eat healthy organic food and helping them meet their nutrition goals without the use of chemical supplements. Besides, Truefarm helps farmers adopt sustainable agriculture that enriches the soil and also helps farmers get better commercial value for their crop. Founder of Truefarm Foods, Ravi Jakhar said, “We are excited about our product launch on Amazon. It is a wonderful platform that makes it convenient for consumers to buy products with in depth research and allows us to communicate with our consumers about our innovative nutrition science based organic food products.”
Swiggy to foray Coimbatore, Kochi The strongest markets for Swiggy are Bangalore, Chennai and Hyderabad, and the expansion will further rigid up the company’s position in southern India. The company had entered three new cities, Ahmedabad, Chandigarh and Jaipur, in last three months.
nline food ordering and delivery podium Swiggy has decided to spread its wings in Coimbatore and Kochi as part of efforts to strengthen presence in the south. The company has more than 25,000 restaurant partners across 13 cities in the country.
Swiggy Vice President-Marketing Srivats T.S. said, “Southern India is essential to our vision of ‘changing the way India eats’. Coimbatore and Kochi are some of the fastest growing Indian cities that have a thriving local culinary culture.”
Vol. 10, Issue 11 -April- 2018
Mondelez, Nestle hike prices, feel the crush of domestic rivals
acing a tough competition from domestic rivals, international confectionary giant Nestle, Mondelez and Perfetti Van Melle will hike the prices. Global firms such as Perfetti Van Melle, Mondelez and Nestle either remained stagnant or lost share last calendar year, hurt by higher prices of their wares in a stressed market due to demonetisation. Marketers feel even a 50 paise price hike could impact growth in the price sensitive category. Local candy makers, including Parle, ITC and DS Foods grabbed shares from multinationals in the Rs. 7,500-crore confectionery segment, as per latest Nielsen data sourced from industry officials. Over the past three years, Mondelez India relaunched Halls from 50 paise earlier to Re. 1 and
Mondelez International plans to shut two factories in Brazil
ondelez International is planning to close its facilities in Bauru and Piracicaba, cities in the state of São Paulo, by the end of the year. Production will move to two other factories, one further south in Curitiba and another further north in Vitória de Santo Antão.
doubled its price of Choclairs to Rs. 2 while Perfetti Van Melle India launched most of its candies including Alpenliebe at Re. 1 and upwards. Parle Products, however, kept their product prices unchanged. “Post demonetisation, lot of lower denomination currency came back into circulation that had helped sales for a 50 paise product. But at the same time, the practice of consumers accepting a Re. 1 toffee from grocers stopped to a large extent,” said B Krishna Rao, category head at Parle Products that sells brands including Mango Bite and Poppins. Parle gained 160bps in 2017 with 16per cent in the confectionery space, while Perfetti lost share marginally by 20bps at 10.2 per cent. Including chewing gums, Perfetti is by far the market leader controlling nearly a quarter
of the overall market. As a category, the entire industry has been trying to move to Re. 1 price point after increase in the price of sugar, other raw materials and even packaging costs. The focus has been on premiumisation with significant growth achieved for the Re. 1 and above portfolio in the confectionery segment. Growth has been achieved through introduction of differentiated offerings under the Candyman range,” said a spokesperson at ITC that gained 130 bps to reach at 10.2per cent share. To be sure, India’s leading chocolate makers too posted near decade-low growth in sales last fiscal, as health-conscious consumers cut back on discretionary buying in a slowing economy. Mondelez, India’s largest chocolate make and Nestle’s chocolate divisions saw sales rise by about 6 per cent each in the year to March 2017 — better than a year ago but far from
the double-digit growth the candy rivals have seen in most of the last decade. Yet, they remain bullish in the candy segment that has also seen a rush of new players both from large food companies such as DS foods as well as regional local brands. “As leaders in chocolates and strong challengers in other categories we operate in, we continue to invest and innovate our brands,” said Amit Shah, associate director — marketing (gum, candy & beverages) at Mondelez India, that sell Halls and Cadbury Choclairs. Perfetti too posted below 1 per cent growth for the second consecutive year last fiscal and said competition is getting intense, especially in the candies segment. Whilst we had moved much of our portfolio from the 50 paise price point to Re. 1, with product value addition, the bulk of the market stays at 50 paise, leading to strong market challenges,” it said in the annual filing with the Registrar of Companies last year.
“These changes are part of the company’s global strategy,” Mondelez said in a statement. “Since 2014, the company has been thoroughly reviewing its supply chain with the goal of maintaining economic sustainability and business evolution in the mid and long terms.” The closures will mean confectionery; cream cheese and powdered desserts will be produced at the site in Curitiba. Chocolate products, as well as biscuits, will be made at the factory in Vitória de Santo Antão. “The company remains committed to Brazil,” Mondelez added, noting the country houses its largest business in Latin America
Lindt Chocolate luring consumers from emerging market
wiss chocolate maker Lindt & Spruengli believes that it enjoys “enormous potential” and is trying to attract more sweettoothed consumers in Japan, China, South Africa, Brazil and Russia According to Lindt this positive trend is being powered by consumers’ growing demand for quality, greater purchasing power and also a growing desire for chocolate with a high cocoa content. Lindt, a leader in the affordable luxury chocolate segment informed that its subsidiaries in those five countries had produced “an above average result” in 2017, with organic growth of 12.4 percent.
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For now, sales hit an all-time record for the 175-year-old company of more than 4 billion Swiss francs (3.45 billion euros, $4.3 billion). Lindt feted an improved market situation for key raw materials -- cocoa beans, cocoa butter and sugar -- with “much better harvests in 2016/17, allowing the previous record-high prices to ease back to normal levels”. That should allay chocolate lovers’ fears of an imminent crisis for their favourite treat. It was good news all round, bar in the United States, the world’s largest chocolate market but a weaker one for Lindt, where company sales dipped slightly. The dip came even as Lindt sought to attract customers with new packaging and discounts over Christmas, and with the relaunch of a sugar-free chocolate line.
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Vol. 10, Issue 11 -April- 2018
India�s Only Monthly Newspaper for Food, Beverage & Allied Sectors
Vol. 10, Issue 11, April 2018,
Indian Food Processing I
nterestingly the Gujarat Mondelez-Cadbury Distributors Forum has stopped all transactions with the Mondelez alleging unfair business practices by local distributors. The forum says Mondelez is compelling the distributors to conduct sales to outlets that do not have a licence from the Food Safety and Standards Authority of India. Mondelez of course has denied it, stressing that its relationship – like many in the FMCG industry – is with the distributor partners to whom stock is sold and work on auto replenishment mode revenue is based on what is sold to these distributors – who in turn sell stock to retailers. I agree over here with the giant chocolate manufacturer as big food companies never conducts business in a non-compliant manner. But the news is that the dispute may now spread to Delhi, Andhra Pradesh, West Bengal, Maharashtra, Haryana and Telangana. Global firms such as Perfetti Van Melle, Mondelez and Nestle have hiked the cost of their candies as local candy makers like Parle, ITC and DS Foods have grabbed shares from multinationals in the Rs. 7,500-crore confectionery segment. The global candy companies either remained stagnant or lost share by higher prices of their wares in a stressed market due to demonetisation. And now marketers feel even a 50 paise price hike could impact growth in the price sensitive category. Over the past three years, Mondelez India relaunched Halls from 50 paise earlier to Re. 1 and doubled its price of Choclairs to Rs. 2 while Perfetti Van Melle India launched most of its candies including Alpenliebe at Re. 1 and upwards. Parle Products, however, kept their product prices unchanged, citing that post demonetisation; lot of lower denomination currency came back into circulation that had helped sales for a 50 paise product. In line with its global nutrition objectives, PepsiCo is all set to reduce salt content in Kurkure and the first low-salt Kurkure packs have been recently rolled out. In India PepsiCo has successfully reduced 21 metric tonnes of sodium from entire snack portfolio till last year and aim to reduce sodium in 75 per cent of the food’s portfolio by 2025. PepsiCo, which makes Lays and Doritos besides Kurkure snacks, and soft drinks including Pepsi cola and Mountain Dew, will reduce sodium and fat content in snacks and sugar content across its juices and carbonated drinks by 2025. According to its global commitments, three quarters of its global foods portfolio will contain sodium volumes less than 1.3 milligrams per calorie, and that at least three-quarters of its foods will not exceed 1.1 grams of saturated fat per 100 calories by 2025. FSSAI has revised the existing standards for oils and fats and has added new standards harmonised with those of Codex. These regulations could bring proper gradation of the oils, and the consumer will have a clear idea about what they is buying. The peroxide value is a vital parameter to assess the quality of edible oil, and so should be included in the safety parameter. The fatty acid composition is an important and reliable index to ascertain the authenticity of the oil. Nowadays, various fractions of palm oil are widely used in the different bakery, confectionery and chocolate products and are getting imported too. So their specification is also required. By 2025 maize will become the crop with highest production globally and in the developing world. In India, the potentiality of maize is not yet realised as most of the maize produced is used for animal feed and only a small portion utilized for human consumption. Radha Mohan Singh, the Minister of Agriculture and Farmers Welfare has called for a package of measures to boost maize production and productivity and realise its potential as the future cereal crop. He has stressed that there is an urgent need for a mix of strategies and interventions around technological innovations, promoting producer aggregation and linkages, enabling supporting infrastructure, forging public-private partnerships and appropriate policy measures. A report, led by Orb Media, a US-based non-profit revealed that 90 per cent of bottled water from leading brands is contaminated by microplastics, Indian bottling companies on Friday contested the findings, saying they enforce strict quality control. It exposed widespread contamination with plastic debris including polypropylene, nylon and polyethylene terephthalate (PET) in 93 per cent of the 259 individual bottles across 11 brands sold in nine countries, including Brazil, China, India, Indonesia and the US. The brands tested included Aqua (Danone), Aquafina (PepsiCo), Bisleri (Bisleri International), Dasani (Coca-Cola), Epura (PepsiCo), Evian (Danone), Gerolsteiner (Gerolsteiner Brunnen), Minalba (Grupo Edson Queiroz), NestlÃ© Pure Life (NestlÃ©), San Pellegrino (NestlÃ©) and Wahaha (Hangzhou Wahaha Group). PepsiCo and Bisleri have contested this finding that their bottled water maintains rigorous quality-control measures, sanitary manufacturing practices, filtration and other food safety mechanisms. Amul has reported an 8 per cent increase in turnover at Rs 29,220 crore this year. Its branded consumer products registered growth of 14 per cent over the previous year, with products such as cheese, butter, milk beverages, paneer, cream, buttermilk and dahi having expanded 20-40 per cent. The group turnover of Amul brand has crossed Rs 41,000 crores which is 10 per cent higher than last year. The Amul federation has been achieving a compound annual growth rate of more than 18 per cent for the past eight years because of higher milk procurement, continuous expansion in markets, launching of new products and adding milk processing capacities. Food safety, food security, health and clean environment are basic needs for survival. The food and beverage industry does its bit; and still is under scanner from critics and detractor. People need to understand that this industry is not only about fat, salt and sugar, as a matter of fact agro and food processing industry is the only one that can provide food security to the entire nation, as food shortage is just lurking around the corner.
eforms, liberalized foreign direct investment (FDI) policy and strong macro-economic indicators have resulted in the development of the production, processing, distribution and marketing of food and beverages (F&B) in India. The entry of foreign technical know-how, processes and products to India, availability of food through e-commerce, technological advancement through research and development to cater to the local tastes and health benefits, and so on made the marked the Indian food industry in the international map. “The food and beverage industry is the fifth-largest sector in manufacturing” Between April 2000 and June 2017,the Indian food processing sector received FDI worth $7.81 billion, making it the 13th largest sector receiving FDI in the country. In fact, 80 per cent of FDI in the food processing sector was received in the period since April 2012. FY17-18 is already showing strong promise for foreign investment in this sector, with $263 million invested in the April - June quarter (FY17 Q1), according to Department of Industrial Policy and Promotion (DIPP) Quarterly Fact Sheet (April 2000 to June 2017). Thanks to the entry of multinational companies and their expansion in the market. In fact, the global event World Food event in November, opened new arenas for the food industry, at the same time bringing it in global radar. It is during this event that global and Indian food companies, including Hershey, ITC, PepsiCo, Patanjali, Coca-Cola and Britannia, have assured to invest around Rs. 68,000 crore in India’s food and agriculture sector. Domestic firms ITC and Patanjali inked MoUs to invest Rs. 10,000 crore each. While PepsiCo said it will invest around Rs. 13,000 crore for setting up food and beverage plants, rival Coca-Cola said it will bring
in around Rs. 11,000 crore for juice bottling infrastructure and fruit processing plants and equipment. Similarly, Amazon, UAE’s Sharaf Group and Yes Bank are also among major investors, the statement from the ministry said. Britannia said it will invest Rs. 1,500 crore over the next three years to expand Anil Koradia its manufacturing facilities. With a population of 1.3 billion, India’s consumption market is projected to triple to $4 trillion by 2025 with the bulk of expenditure going into food products. “India is rapidly becoming a production hub for processed foods, which are increasingly consumed in India as well as exported to countries in South Asia, the Middle East and Africa” Within the domestic F&B industry, ten segments have especially gained increasing acceptability among the Indian consumers and all have recorded a high growth rate: According to the Ministry of Food Processing Industries of India (MoFPI) and the Confederation of Indian Industry (CII), apart from India’s strong macro-indicators and production base, it is affluence of working population with increase in disposable income and rising urbanisation leading to changing lifestyles and less time to prepare food at home, which has enhanced the food processing industry. “Also changes in taste and preference of the Indian consumers for local palate to international together with increase in tourism in India are a big factor contributing to the F&B Industry” Food Industry has also benefitted from innovative advertisements, rise in supermarkets and e-commerce boom creating increasing
Vol. 10, Issue 11 -April- 2018
Industry and the yera of exception Changes awareness among consumers and also making the products easily accessible to the consumers. According to Food and Agriculture Organisation of the United Nations, alongside the strong demand drivers, India has the largest diversified production base in the food sector. For instance, it is the largest producer of milk in the world, the second largest producer of fruits, vegetables and wheat, and the third largest of eggs, sixth in meat production and is a leading producer of spices, fish and plantation crops. “The contribution of the food processing sector to Gross Value Added (GVA), employment and investments is significant” Additionally, the progressive processes and bold reforms by the government, especially in the last three years, including the introduction of Goods and Services Tax (GST), replacement of the Foreign Investment Promotion Board with the online Foreign Investment Facilitation Portal, permitting 100 per cent FDI for retail trading in the food processing sector for food products that have been manufactured or processed within India; increasing investment in infrastructure projects, Food Safety and Standards Authority of India (FSSAI) aligning itself with Codex Alimentarius (literally, food code) international food standards, and so on. This reflects the government’s positive outlook, and a clear intent to develop the sector. Recently, according to the World Bank’s Ease of Doing Business Report 2018, India jumped 30 spots to the 100th rank (from 130th in 2017) among 190 countries on the basis of certain parameters (excluding reforms due to GST implementation). All the policy changes in the country resulted in the highest jump in a year by any country in the World Bank’s Ease of Doing Business ranking. “India is one of the fastest growing economies in the world, therefore demonstrating a strong business case for the global F&B industry. They can establish presence or plan on expanding operations in India as various segments of the Indian F&B industry will continue to witness tremendous growth in the foreseeable future” Furthermore, MoFPI is spearheading the initiatives of Government of India in supporting the food processing sector. The Ministry is making all efforts to encourage investments in the sector. It has approved proposals for joint ventures, foreign collaborations, industrial licenses and 100 per cent export oriented units. The Ministry has also launched the Pradhan Mantri Kisan Sampada Yojana (PMKSY) to supplement agriculture, modernize processing and decrease agri-waste. PMKSY is expected to augment technology infusion, create enhanced forward and backward linkages between farmer producer companies and the food processing industry, develop agro-processing clusters, create a robust supply chain infrastructure and promote skill development in the sector. PMKSY has an allocation of USD 901 million and is expected to leverage investment of USD 4.72 billion, handling 334 lakh Metric Tonnes(MT) agro-produces valuing USD 15.6 billion, benefit 20 lakh farmers and generate 530,500 direct or indirect employment in the country by the year 2019-20. “With an increase in demand for food products, abundant supply of raw materials and several incentives offered by the Government, food processing sector has emerged as one of the major growth oriented sectors in India” Medium and big players in food processing
industry mostly import critical components required for their processes. For small players in the industry, cost of the imported equipment is a big constraint and hence they go for local fabricated machines and equipment supporting local food processing equipment manufacturing industry..
Globally food safety is domineering; this was one weak point that dented the Indian F&B Industry image to some level in international markets. But with restructurings and development of Food safety law in India, safety in food standards has immensely improved and boosted.
However, currently the equipment manufactured in the country lack precision required for complex processes involved in food processing, due to dearth of advanced technology owing to limited research and development facilities available for local manufacturers.
Now the Food Safety and Standards Authority of India (FSSAI), the country’s apex food regulator, is working on a ‘one-nation, one-food-safety-law’ so that every state-level food authority follows a standard practice for the implementation, compliance and surveillance of food safety regulations, which in turn will ensure smoother operations for food companies.
The Government is encouraging the technological advancements for the industry by providing specific incentives to the food machinery sector in terms of duty reductions, duty exemptions etc. Given this scenario, there is an abundant opportunity for various multinational companies to explore the manufacturing of equipment for food processing sector in India. ‘’Another important aspect of this sector is employment generation. The availability of skilled manpower has been identified as one of the major challenges, which creates a lot of opportunities for unemployed youth to work as skilled manpower in the food processing sector’’ Ministry of Food Processing Industries is working in close collaboration with Food Industry Capacity and Skill Initiative (FICSI), the Sector Skill Council (SSC) in food processing. The FICSI is working on identification of job roles and competencies required for each job so as to develop National Occupational Standards for different sectors of food processing. It is forecast that India’s retail sector will show a growth of $1.3 trillion growth from $600 billion over the next three years; of which 70 per cent will be from food market. Ministry of Food processing is planning to create employment opportunity of around five lakh by 2022 with the investment under Sampada Yojana programme. Scarcity of food technologists, scientists and researchers with Entrepreneurship background exists in the country. There lies a huge gap between available and required skill in the country. Capacity building will create talent pool. Innovation needs to be linked to market need. Academic and research institutions need to develop technologies, which can be scaled up across the world. Industry interface is required for scaling up the technologies, promoting entrepreneurship and skill development in food processing sector in the country.
FSSAI plan to implement ‘one-nation, one-food-safety-law’ will remove state based problems and make things more transparent. Under this regime, state-level food safety officers will have to follow a 10-point codeof-ethics set by FSSAI. At present, there is no such thing, and food safety officers across states do things the way they think best. This should not be the practice, and there is a need to standardize this. Also under the regime, FSSAI wants to erase discrepancies in food safety regulations across states, and standardize surveillance, sampling and inspection. This is to enable states with good practices. To bring consistency in food testing, FSSAI is introducing guidelines that food testing laboratories will have to abide by. Under the draft norms, laboratories will have to come under the Indian Food Laboratory Network (InFolNet), a digital solution to connect all food labs in India to a centralised lab management system.
So far, 154 laboratories have listed on InFolNet. FSSAI has made this compulsory for all FSSAI-notified laboratories. With this, details of all tests and the results will be available on this. The regulator, which owns and operates two laboratories and has approved 82 others in various states, allocated Rs.482 crore earlier this year to strengthen the food testing infrastructure, including upgrading and modernizing laboratories. Besides, FSSAI will also set up 62 mobile testing labs. There are currently four mobile food testing labs in Punjab, Gujarat, Kerala and Tamil Nadu. In 2015, FSSAI questioned safety standards of Swiss packaged food company Nestle India Ltd’s Maggi instant noodles based on reports by one of its testing laboratories in Kolkata, prompting questions about the capacity and state of the laboratory. Under the new regime, the food regulator also wants to abolish intervention of multiple agencies for things such as import of food products. Going forward, there will be a single standard for every authority. In the End…. India’s food processing sector has the potential to attract USD 33 billion (about Rs. 2.14 lakh crore) in investments by 2024. The country’s food and retail market is expected to touch USD 482 billion by 2020, up from USD 258 billion in 2015, with recent reforms making the sector more competitive and market- oriented. There is a huge scope for large investments in food processing technologies, skill development and equipment as total food production in India is estimated to double in next 10 years. While the sector provides opportunity for growth, it needs to focus on product conformity with global standards and quality together with factors like logistics traceability and safety, quality of packaging and delivery. There is a need for policy intervention and field level changes for India to develop global competitiveness in many related sub-sectors and ensure that they are firmly entrenched in global value chains. Fast growth in food processing and simultaneous improvement in the development of value chain are of great importance to achieve favourable terms of trade for India’s agriculture sector both in domestic and international markets. Given the trade in production of food commodities, the food processing industry in India is on an assured track of growth and profitability, and even marginal reductions in post-harvest losses of fruits and vegetables, which are at about 25-30 per cent, will give better returns and improve farmers’ incomes.
Vol. 10, Issue 11 -April- 2018
EDIBLE OIL NEWS
Govt approves removal of export restrain on edible oils
move taken by the government to remove prohibition on export of all varieties of edible oils apart from mustard oil, it is expected to boost shipments of the product. Removing of margins on export of all edible oils is likely to provide additional marketing avenues for edible oils and oilseeds and will advantage the farmers by way of better realization for oilseeds.
ing on domestic production and demand, domestic and international prices and global trade volumes. The committee also includes secretaries from departments of commerce, agriculture, revenue, consumer affairs and the director general of foreign trade.
An official said, mustard oil will continue to be exported only in buyer packs of up to 5 kgs and with a minimum export price of USD 900 per tonne.
The statement added that the inter-ministerial committee, headed by Commerce Secretary, mandated to review the export of edible oils in consumer packs and calibrate MEP from time to time, has been discontinued.
The decision was taken at a meeting of the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi.
The production of oilseeds in 2016-17 has recorded a significant jump in comparison to past two years.
The government has also empowered a committee, chaired by Secretary, Department of Food and Public Distribution, to review the export and import policy on all varieties of edible oils and consider measures such as quantitative restrictions, prior registration, imposition of minimum export price (MEP) and changes in import duties depend-
â€œIt is expected that the production of oilseeds in 2017-18 is going to sustain at the same levels,â€? it added. Only certain edible oils can be exported in bulk and other oils only in consumer packs up to 5 kg with MEP.
14 per cent hike on import taxes of edible oil
o lift oilseed prices and support domestic supply from crushing, government raised import tax on crude and refined palm oil to the highest level in more than a decade in India. With this move country tried to support local farmers, helping cap edible oil imports in the 2017-18 marketing year. According to report, government raised 14 per cent up on vegetable oil from 30 per cent to 44 per cent while tax on refined palm oil to 54 per cent from 40 per cent. The country relies on imports for 70 per cent of its edible oil consumption. It is the fourth increase in import tax in less than six months that would push up domestic edible oil prices and support prices of local oilseeds like soybean and rapeseed. Domestic requirement of edible oil in the country around 25 million MT, the total production of the same is just about nine million MT. The entire gap is being met through imports which amount to approximately Rs. 70,000 to Rs. 75,000 crore per annum. Palm oil at present constitutes 70 per cent of the vegetable oil imports and is one of the lowest priced due to high productivity per hectare. The policy objectives should be to balance the interests of growers and consumers alike. At the same time the policy must ensure that poor consumers have access to cooking oil at affordable prices. Clearly, liberal policies or free market operations of the last quarter of a century in the country have
failed to protect domestic growers in so far as the oilseeds and veg oil sector is concerned. It is time we looked at the familiar vegetable oil sector from unfamiliar angles. First of all, there must a ceiling on the volume of imported edible oil. There is reason to believe that private trade imports excessive quantities for speculative purposes and floods the domestic market which in turn depresses domestic oilseed prices. A reasonable guess would be that up to 15 per cent of the current import volume is speculation driven and often it represents not genuine sale but stock transfer from the origin (Indonesia, Malaysia) to the destination market (India). Huge inventories (as much as two million tons) are often piled up in India which in turn depresses the domestic market. A ceiling on veg oil import (with a provision to review it every six months, depending on the exigencies of the situation) will reduce the quantum of arrivals and support domestic producers. Imports have to be monitored in terms of registration of contracts and tracking of arrivals. There is a long credit period for importers which encourages over-trading and fosters an unending loop of imports. Reducing the credit period can make a difference. In addition to dynamic changes in tariff values as practised at present, import duties should be varied dynamically so that imported oils are not cheaper than the MSP for domestic oils. Unless the government keeps the consumer in mind in making the policies, the undernourished families would continue to suffer.
Sluggish demand on linseeds oil
emand slips on Linseeds oil at the Vashi oils and oilseeds wholesale market following sluggish demand from paint and related industries. Linseeds oil are eased in terms of rupees by Rs. 2 per 10 kg to Rs . 858 as compared to Rs. 860. Castor seeds bold and castor oil commercial dropped due to inferior demand from soaps and shippers industries.
Groundnut oil and refined palmolein ruled stable in the absence of any large scale buying activity. Edible section, groundnut oil and refined palmolein closed unchanged at Rs. 870 per 10 kg and Rs. 712 per 10 kg, respectively. Non-edible section, castor seeds bold dipped by Rs. 30 per 100 kg to Rs. 4,240 from Rs. 4,270 on and castor oil commercial declined by Rs. 6 per 10 kg to Rs. 878 as against Rs. 884.
Vol. 10, Issue 11 -April- 2018
TEA & COFFEE NEWS
Starbucks keen to fill the cup & Darjeeling tea is facing an exisplate in Kolkata tential crisis due to lack of funds
tarbucks India launched its venture in Kolkata; with an expansion of its food offerings and desserts. Company food menu will increase with various meal options while also try to capture new consumer food habits. Company’s Chief Executive Officer, Sumitro Ghosh said, India has become the largest market in Asia in terms of food sales for Starbucks, the world’s biggest coffee retailer. “Starbucks is a beverage company, but the opportunity to expand into food is equally high in India. We are addressing both taste and health in coming up with our food offerings,” he said. While Starbucks already sells localised dishes like chatpata paratha wrap and murg kathi wrap across 113 stores in India, it has micro-localised two offerings for the just launched Kolkata operations. This includes two new Bengali based desserts chomchom tiramisu and chocolate rossomalai mousse. Ghosh added, “The food menu will increase, trying to address the variety of meal options. But again, we see numerous Indian consumers enjoy a red velvet cake for breakfast instead of eggs and bread. We are trying to capture these food habits.” He declined to share the contribution of food to Starbucks sales in India. Tata Starbucks clocked
net sales of Rs. 272 crore, a growth of 14 per cent, in the year ended March 2017 and narrowed its loss to Rs. 32 crores, according to latest regulatory filings. The company announced its entry into Kolkata with three stores and plans to open two more, thereby adding 24 outlets this year and taking the total count to 115. It has operations in seven cities Mumbai, the National Capital Region, Hyderabad, Chennai, Bengaluru, Pune and Kolkata. Tata Starbucks, the 50:50 joint venture between Starbucks Coffee Company and Tata Global Beverages BSE 0.97 per cent in India, wants to increase its food play in the country by micro localising cuisines, apart from benchmarking its expansion by taking into account not just coffee cafes but also quick service restaurants, CEO Sumitro Ghosh said. Starbucks is evaluating entry into tier-II markets and smaller cities and is identifying places where it can open more than one store to make it a viable operation, Ghosh said also added that, “While countries like China have far bigger operations with 3,000 stores, India has the potential to become one of the largest markets,” he said. The Indian business can potentially rank among top five markets for Starbucks, John Culver, group president of Starbucks International.
7 per cent rise in tea export in FY18 ume, exports to CIS countries, including Russia, Ukraine and Kazakhstan, were at 46.92 million kg in the April-January 2017-18, down from 49.63 million kg in the same period of 2016-17.
here has been nearly 7 per cent Indian tea export rise to 200.67 million kg during April-January period of 2017-18 (FY18) as compared to 188.10 million kg exported in the corresponding period of last fiscal. As per records released by Tea Board India, exports stood at Rs. 3,970.37 crore in the 10 months of the current fiscal, up by about 2.5 per cent from Rs. 3,874.82 crore in the year-ago period. In January, export was down marginally by 2.28 per cent to 20.55 million kg as against 21.03 million kg exported in the year-ago month. In value terms, exports during the month also fell to Rs. 408.74 crore, from Rs. 412.35 crore in January 2017. While exports to Russia, Ukraine, Kazakhstan and Germany fell, those for Pakistan, China, Iran and Egypt showed improvement. In vol-
Exports to the UK also fell to 13.66 million kg in the 10-month period of FY18 as against 13.96 million kg in the year-ago period while exports at 7.98 million kg to Germany during the period were also down from 8.76 million kg exported in corresponding months of 2016-17.
The Central Government through Coffee Board promotes production of coffee in Araku Valley by implementing the ‘Integrated Coffee Development Project’. The Coffee Board is a statutory organization under the administrative control of the Ministry of Commerce and Industry.The scheme
A spate of rating downgrades for the celebrated planters has made matters even worse. The major lenders to the tea sectors such as State Bank of India, UCO Bank and United Bank of India have cut down exposure to the Darjeeling tea over the years and are learnt to have decided against renewing fresh limits. Regrettably, banks have decided not to renew limits and downgrade the ratings of Darjeeling tea companies and last year Darjeeling tea industry underwent a severe financial crisis when Gorkha Janamurti Morcha had forced an indefinite strike from June 9 to September end. The trouble in the Himalayan foothills, which started with the announcement of making Bengali language compulsory in all West Bengal schools, snowballed into a major political crisis with 87 tea estates being completely shut for four months during the peak tea producing season. Darjeeling annually produces 8.7-9 million kgs of tea and momost are exported. Ratings of many Darjeeling tea companies have been downgraded to BBB from A which makes it difficult to get working capital loans from the
Tea exports to Pakistan stood at 12.73 million kg in the period under review, as against 9.65 million kg exported in the corresponding period of 201617. India’s tea exports to China during the period were at 6.66 million kg, up from 5.14 million kg. India achieved the immense tea exports during 2017 (January-December) after 36 years, attached at 240.68 million kg.
includes extending financial support for replanting and expansion, creation of water harvesting and irrigation infrastructures and mechanisation of coffee estate operations. Arabica coffee from the Araku Valley area has gained popularity as a high quality specialty coffee internationally. The Coffee Board has developed exclusive logos for coffee grown in the country based on their geographical distinctiveness. In the non-traditional areas, financial support is extended for consolidation of existing coffee plantations through gap filling and application of compost. Technical assistance is also provided by organising capacity building programs and field demonstrations. The Coffee Board facilitates collective marketing of Araku Coffee by providing incentives.
banks and the government’s directive to lenders such as Allahabad Bank, UCO Bank and United Bank of India, which are under the Reserve Bank of India’s prompt corrective action framework for their high sticky assets ratio, not to lend to lower rated borrowers made the situation worse for tea growers. The 87 tea estates in Darjeeling suffered nearly 67 per cent loss in production. The stoppage of work at the estates for four months resulted in overgrowth tea bushes. “o when the gardens reopened in October, the planters could not produce tea because the tea bushes were out of shape. The total estimated loss that Darjeeling tea industry suffered in 2017 is to the tune of Rs. 350 crore-Rs. 400 crore. The political unrest has severely disrupted the cash for the companies plus the loss of crop in Darjeeling is likely to have some adverse impact on overall revenues Darjeeling tea known as the champagne of teas by connoisseur tea drinkers, is very popular among the royal families of Japan and Sweden. Europe is a major market for Darjeeling tea and buyers are ready to shell out astronomical prices for these finest teas. In 2014, Makaibari tea, an iconic Darjeeling tea brand, had created a record by booking orders at a price of $1,850 per kg (Rs. 1.11lakh). The orders had come from tea importers in Japan, the UK and US. Trade sources said that first flush teas which are only exported fetch an average price of Rs. 4,000-Rs. 5,000 per kg.
Bulk tea export packaging standards being studied by IIP recommend necessary changes in packaging for improving the standard of bulk tea destined for exports, following several complaints from tea buyers.” The report is expected to be submitted in April.
Exports to Iran went up to 24.62 million kg, from 21.06 million kg. As much as 8.87 million kg of tea was shipped out to Egypt during the 10-month period of 2017-18, up from 2.98 million kg in the year-ago period.
Araku coffee being pushed for GI tag by Coffee Board ndia is where you get abundant coffee beans and there are varieties available in this country leaving consumers with different options. The Coffee Board has applied for registration of Araku coffee under Geographical Indications to protect the unique identity of the coffee grown by the tribal communities of Araku Valley in Visakhapatnam district of Andhra Pradesh. This was informed by Minister of State for Commerce and Industry C.R. Chaudhary, in reply to a written question in Lok Sabha.
arjeeling tea is facing an existential crisis for more reasons than one although it enjoys the coveted GI tag and is liked by tea connoisseurs across the world. It faced massive loss of production in 2017 due to a political lockdown for 104 days following the Gorkha agitation, tea planters are now gasping for funds before the critical new season, making the turnaround even more challenging.
IIP is also working on honey and kasundi (mustard paste) packaging for the West Bengal government. Kolkata Chapter of IIP is scheduled to organise a two-day national conference on packaging technology from March 14. Indian Institute of Packaging (IIP) working under the administrative control of Union Ministry of Commerce and Industry will organise a twoday national conference on ‘Emerging Packaging Technology-Optimising Performance and Cost” on March 14 and 15 in Kolkata. IIP is carrying out a study on the packaging standards in use for export of bulk tea, following complaints from buyers. Deputy Director of IIP, Bidhan Das said “We are carrying out the current practices of packaging used for export of bulk tea. We had been asked by the Tea Board to carry out a study and recommend. Tea Board has in practice the packaging standard of 2004, and in order to incorporate modern methods, an expert opinion has been sought. IIP will
Das further said, “We would give recommendation to the Board to standardise bulk tea packaging in view of development of new packaging materials. The institute has evaluated shelf-life of orthodox and CTC (crush, tear, curl) tea packaged with different packaging materials.” On a pan India survey conducted by the institute on packaging of food articles, he said around 2,000 samples were collected from organised food processing companies and no irregularities were found in these samples. “About 1,000 samples of pack from unorganised sector were collected. In this sampling, it was found that packaging materials in 3-4 per cent of the samples failed to comply with food grade,” he said.
Sanjiv Sarin re-appointed as the managing director and CEO of Tata Coffee
n a significant decision taken by board of directors, Tata Coffee has re-appointed Sanjiv Sarin as the managing director and CEO of the company for one more year. The board approved Sarin’s re-appointment based on the recommendation of the Nomination and Remuneration Committee.
Meanwhile, Tata Chemicals said its board today approved appointment of Padmini Khare Kaicker as independent non-executive director for five years with effect from April 1, 2018. Zair Langrana has been appointed as the executive director of the company for five years till 2023, the filing added.
Vol. 10, Issue 11 -April- 2018
Excessive Intake of sugar & transfat leads non-communicable diseases To address the issue of High Fat, Sugar and Salt (HFSS) in food and associated health risks, the Food Safety and Standards Authority of India (FSSAI) constituted an Expert Group. FSSAI has issued draft Guidelines titled ‘Guidelines for making available Wholesome, Nutritious, Safe and Hygienic Food to School Children in India’.
xcessive intake of sugar, sodium and transfats is the risk factor of Non-Communicable Diseases (NCDs). Indian Council of Medical Research (ICMR), said that per capita consumption of packaged items in India is low as compared to countries such as United State of America. The Minister of State (Health and Family Welfare), Anupriya Patel stated this in a written reply in the Lok Sabha that government of India is implementing National Programme for Prevention and Control of Cancer, Diabetes, Cardiovascular Diseases and Stroke (NPCDCS) in all the States/ UTs under National Health Mission (NHM). The objectives of the programme include inter alia awareness generation on healthy diet. For early diagnosis, population based prevention, control and screening for common NCDs such as diabetes, hypertension and common cancer viz. oral, breast & cervical has been initiated by Government by utilizing the services of the frontline-workers and health-workers under existing Primary Healthcare System. This process will also generate awareness on healthy diet and risk factors of common NCDs.
FSSAI has also undertaken initiatives to ensure delivery of safe, nutritious and healthy food for all citizens by an integrated approach through its Safe and Nutritious Food (SNF) campaign, covering home, school, work place and eating out. Under these initiatives, FSSAI is bringing out different series of booklets/pamphlets/flyers for consumer education and awareness. The school teachers are being trained to promote healthy diets among school children. A healthy lifestyle booklet has been developed for the school children which is jointly released by Union Minister of Health and Family Welfare and Union Minister of Human Resource Development. More than 500,000 copies have been distributed to the states for dissemination of information. Ministry of Human Resources Development is implementing National Programme of Mid-DayMeal in Schools with the objective to improve the nutritional status of children studying in Class 1 – VIII in Government and Government –Aided Schools, Special Training Centres (STC) and Madrasas & Maqtabs supported under Sarva Shiksha Abhiyan (SSA).
Good run for packaged food & beverage firms in third quarter vice-president, research (institutional equities), Edelweiss, said the broader trend of growing packaged food and beverage penetration in India remained intact, presenting an opportunity for these companies.
ountry’s top food and beverage companies appear to be putting the rough sales patch behind them as consumer spending kicks in. For the October-December 2017 period, companies, such as Nestlé India, Britannia, Varun Beverages, GlaxoSmithKline Consumer Healthcare, Heritage Foods, Parag Milk Foods, and Manpasand Beverages, reported good top line numbers. The good run is likely to continue in the coming quarters. Net sales growth for these firms hovered between 13per cent and 39per cent for the period under review, the highest in four quarters. Analysts said top line growth in this period was high because of a lower base in the year-ago quarter. The note ban crippled growth during the three months ended December 2016, said Sachin Bobade, senior analyst at Mumbai-based brokerage Dolat Capital. While performance at the bottom line level was mixed for these companies in the period under review, analysts said this could go up as companies reined in overall expenditure to improve net profit growth. Nestlé, Britannia, GlaxoSmithKline Consumer and Manpasand Beverages saw double-digit net profit growth between 19per cent and 65per cent for the quarter under review. While net profit growth for Heritage Foods declined 19per cent, Varun Beverages reported a loss and Parag Milk Foods reported a profit after a loss in the year-ago period. Abneesh Roy, senior
Both small and large companies in the sector, therefore, would take advantage of this as consumer sentiment improved. Last week, Nestlé said it was decentralising its decision-making procedure to have better consumer insights, focused offerings to different sets of people, and to revamp market penetration. The aim was to double turnover in the next two to three years from Rs 100 billion now. For this, the company has been setting up 15 virtual teams for different clusters, launching local variants of its established brands and coming out with targeted communication and regional distribution strategies, according to Suresh Narayanan, chairman and managing director, Nestlé India. The move, said Roy, came as Nestlé eyed growth in rural and semi-urban areas, the regions where it has a limited presence. Nestlé is targeting 100 towns in the country. Britannia is also widening its distribution network through a focus on direct reach, targeting rural areas, and investing in its brands to achieve profitable growth, managing director Varun Berry said. Britannia would introduce 50 products under existing as well as new categories by 2020 from 16 now. These launches would be supported by in-house R&D and marketing as well as manufacturing in new and existing factories, Berry said. The firm would also reduce wastage and improve efficiencies in the supply chain to achieve its target.
Biscuit industry demanded to lower GST rate So why is this industry being targeted when similar food products are subject to LOWER GST RATES, such as Sweets (5 per cent), Processed Dry fruits (5per cent), Tea (5 per cent), Juice, Namkeen, Jam &Jelly, Noodles, Pasta, Tomato Ketch-up (all 12 per cent) while GST at 18 per cent is imposed on Biscuit.
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BUNGE INDIA PRIVATE LIMITED #1 Victor Mansion, 1st Floor, Airport Road, Kodihalli, Bangalore 560 008 Phone: (080) 4115 1120, 24, Fax: (080) 41265075. www.masterlineonline.com Pune: No. 23, 3rd Floor, Kedar Empire, Paud Phata, Nr. Dasabuja Ganapati Mandir, Kothrud, Pune - 411 038. Tel: 020 4120 4069; Delhi: First Floor, NH-2, C-Block, Community Centre, Naraina Vihar, New Delhi - 110 028. Tel: 011 4587 0740; Kolkata: Block C, First Floor, Gooptu Court, No.7-A, Middleton Street, Kolkata - 700 071. Tel: 033 2289 1100; Mumbai: 601-C & 601-D, 6th Floor, The Capital, C-70, G Block, Bandra Kurla Complex, Bandra (East), Mumbai, Maharashtra - 400051. Telephone No: 022 66819500.
iscuit manufacturers, especially in the SME sector, have been hit very hard because of unjustified imposition of Goods & Services Tax (GST) at 18 per cent. This has slowed the growth in the industry and there is an urgent need to bring down GST rate to 12 per cent. Biscuit is made of agricultural products like wheat, vegetable oil, sugar and milk and higher production of biscuit would benefit larger number of farmers. Biscuit is highly Labour intensive, and stagnation in growth in production would adversely affect the industry which is estimated to provide employment to about 7.5 lakh workforces directly and more than 30 lakh persons indirectly in marketing, retail network, transport etc. Additionally it is also a mass consumption food product, hygienically processed and consumers of biscuit belong predominantly to the poorer. Biscuits are common product of consumption from a rickshaw puller to a low-wage laborer in search of hygiene, energy, nutrition at a low cost.
Indian Biscuits Manufacturers’ Association (IBMA) has urged the government to review their decision of imposing 18 per cent GST on Biscuit industry and bring down the GST rate to 12 per cent to avoid stagnation in growth of the industry. IBMA has already submitted detailed representation to the Hon’ble Prime Minister Mr. Narendra Modi, Union Finance Minister Mr. Arun Jaitley, and Union Minister for Food Processing Industries Ms Harsimrat Kaur Badal and also to the Finance Ministers of all states, who are members of the GST Council. IBMA delegation has also met Suresh Prabhu, Commerce and Industry Minister and Dr. Bijaya Kumar Behera, Economic Adviser, Ministry of Food Processing Industries. More meetings with Members of Parliament and other officials of various ministries are being organized. IBMA has also sought intervention and support from Members of Parliament from various political parties for favorable consideration of levy of GST at lower slab of 12 per cent.
Vol. 10, Issue 11 -April- 2018
SNACKS & BISCUITS NEWS
Big brand attract malicious rumours: PepsiCo India
PepsiCo to reduce salt content in Kurkure and its other products ant of Kurkure has 21 per cent less sodium, according to the snacks and beverages maker.
n line with its global nutrition objectives, PepsiCo is all set to reduce salt content in Kurkure and the first low-salt Kurkure packs have been recently rolled out. PepsiCo VP (snacks) Jagrut Kotecha said, “As per our performance with purpose agenda, we are working to develop our snack products through a stepwise reduction approach. In India, we have been successful in reducing 21 metric tonnes of sodium from our entire snack portfolio till last year and aim to reduce sodium in 75percent of our food’s portfolio by 2025. A recently launched vari-
PepsiCo, which competes aggressively against more than two thousand local brands in addition to established competitors including ITC, Parle and Haldiram in packaged salted snacks, is innovating aggressively through hyper localised variants, revamped packaging and penetrative distribution. PepsiCo, which makes Lays and Doritos besides Kurkure snacks, and soft drinks including Pepsi cola and Mountain Dew, will reduce sodium and fat content in snacks and sugar content across its juices and carbonated drinks by 2025. According to its global commitments, three quarters of its global foods portfolio will contain sodium volumes less than 1.3 milligrams per calorie, and that at least three-quarters of its foods will not exceed 1.1 grams of saturated fat per 100 calories by 2025.
Over the next 4-5 years, PepsiCo set to to double sales volumes of Kurkure
epsiCo India, in its snacks portfolio, targets to double sales volumes of Kurkure over the next 4-5 years. As reported before the company is also working on reducing the salt content in its snacks products, in line with its longterm global commitments. PepsiCo has also launched a new Kurkure MultiGrain variant, which has about 6 per cent of ragi grain, and comes with reduced sodium content. The company’s move to launch Kurkure’s multigrain variant, which uses the nutri-cereal ragi, is in line with the rising trend of consumers looking for great-tasting but guilt-free snacks, he added.
Jagrut Kotecha, Vice-President, Snacks Category, PepsiCo India, said that they have also refurbished the packaging and brand communication in line with evolving consumer trends and are also focusing on ramping up the distribution of the brand across traditional trade, modern trade and ecommerce channels.” In India, PepsiCo has been successful in reducing 21 metric tonnes of sodium from the entire snack
portfolio till last year, and aim to reduce sodium in 75 per cent of our food portfolio by 2025. Kotecha said, “The recently launched multigrain variant with power grain ragi is meeting our global agenda on sodium reduction with a 21.5 per cent less sodium”. PepsiCo India has also introduced a new youth-focused packaging for all the 40 variants of Kurkure, which emphasizes on the ingredients used in the products on the front of the packs. The company has worked for about 12 months on these new packaging designs and it involved the local team partnering with PepsiCo’s Global Design Group as well as an external agency. Despite intense competition from local and regional players, the company said that it has seen a double-digit growth in the salty snacks segment. It believes that focusing on regional variants has contributed significantly to the growth trajectory. The taste profiles in India change every 100-200 km. So over the last 2-3 years, PepsiCo has been developing a portfolio that meets the diversity in the consumers’ taste profile.
Indian biscuit industry to touch Rs. 400 bn by 2023 of biscuits which serves both in rural and urban area. The distribution network of players like Parle and Britannia are widely spread in the rural areas. It is very easy to find a Rs. 5 Parle biscuit in any traditional general shop in those areas.
ndia is the third largest producers of biscuits following United States and China. The biscuit market of India is driven by factors such as increasing income of consumers, shift to premium biscuits, more manufacturing facilities set up, growing health awareness, innovation in biscuits, attractive packaging, etc.
Along with the major biscuit players of India, many regional players are also into the production of biscuits. These players have similar production facilities like the renowned one. Their biscuits are well- labelled and packaged yet healthy to eat and available at a low price which makes it affordable for the low income consumers. To increase its sales and product value, companies have started to launch premium biscuits in small packets so as to increase the demand of their products in both rural and urban places.
The organized biscuit market accounts for more than 70 per cent of value share in the overall Indian biscuit market. The sector is expected to surpass the revenue figure of INR 400 billion by 2023. Organized market comprises of all the major players
Major companies operating in the biscuit market of India are ITC Limited, Britannia Industries Limited, Parle Biscuits Private Limited, Surya Food & Agro Limited and Unibic Foods India Private Limited.
epsiCo India Holdings Private Ltd is taking measures to assure consumers about the safety of Kurkure, in the wake of malicious rumours that the popular snack food contains plastic, said a senior company official. “I don’t know on what grounds the rumour is spread that Kurkure contains plastic. Normally big brands attract malicious rumours,” Vani Gupta, Marketing Director - Indian Snacks, said. “We don’t see such malicious campaign in other parts of India. Only in Tamil Nadu we see such malicious campaigns,” Gupta said. Some months back the associations of traders in Tamil Nadu had announced a ban on selling Pepsi and Coca cola brands.
Gupta said the company is taking counter measures in assuring the safety of Kurkure to mothers. According to her, it is better to assure the consumers about the safety rather than taking legal recourse against the rumour mongers. One of the steps is redesigning of the package with the words `Made with Dal, Corn and Rice’ printed on it. “In case of chips we know what it is made of. But it is not so with Kurkure. Hence we decided to adopt this strategy,” Gupta said. Pepsico Holdings held an event here where bloggers - mostly young women - were told about Kurkure and the production process. With the as-
sistance of an award winning chef, the participants also whipped up some dishes made with several variants of Kurkure. Gupta said: “Any food that is taken in moderate quantity is good. The problem crops up when one overdoes something.” Queried about the usage of palmolein oil in the making of the product instead of other oils like rice bran oil, Gupta said: “The oil suits well with the product. The usage of palmolein oil is not driven by costs.” “Many of our competitors play with the ingredient quantities when the prices fluctuate,” she added. “Even at home it is advisable to change the oil brands once in two months so as to derive the benefits offered by them. In the case of Kurkure the oil quantity used may not be much. Only children above the age of five should be given salty snacks. All food stuffs should be consumed in moderate quantities,” T. Shanthi Kaavery, a consulting dietician, said. From one variant in 1999, Kurkure has 40 variants and is also exported to several countries. “Kurkure is made in our plants in Canada and Bangladesh. The product is exported to Gulf countries.” She said the organised Indian snack food market is around Rs. 17,000 crore and is logging double digit growth. Gupta said the company offers various regional flavours under Kurkure brand.
Cookie maker Unibic planning for pan India um segment. In a market dominated by Britannia’s Good Day and Parle’s Hide & Seek, the company is looking to go beyond the 10 per cent share in the premium segment.
ookie maker Unibic is planning to set up a production base outside of south India as the company looks at breaking into the Hindi heartland apart from going deeper into markets in eastern India. The firm has its manufacturing plant located in Bengaluru, where it is has five production lines with a capacity to produce up to 100 tonnes a day. Nikhil Sen, Managing Director, Unibic Foods, said the intent was to have a deeper footprint in the northern and eastern India, especially the Hindi-speaking states such as Uttar Pradesh where it had not seen much success with its premium range of cookies. “You run at a disadvantage when you are running from a single location. Hence, we are looking at expanding beyond Bengaluru,” Sen added. The company is planning to launch its second manufacturing unit at a new geographical location in central India so that it can maintain control of the facility and distribution and cater to the markets in North India. He, however, did not divulge the exact location where the company is looking at for setting up this plant. Currently, the firm derives 60 per cent of its business from Karnataka, Kerala, Andhra Pradesh and Tamil Nadu. It is also seeing good traction in the northeast and the National Capital Region.The total cookie market is pegged at Rs. 75-80 billion of which around Rs. 40 billion forms the premi-
With cash at its disposal, Unibic is trying to create more awareness about the brand in markets that are more rural in nature, spending in below-the-line activities, innovative distribution channels, and getting the right packs in place.“We have to move to markets that are rural in nature. We are putting in Rs. 10 and Rs. 5 packs as penetration packs in these markets which will lead our distribution to the next level,” said Sen. The distribution network of rivals like Parle and Britannia are already widely spread in rural areas. Unibic is also looking to leverage the contract packaging (CP) model, if required. The Peepul Capital-backed firm utilised three CPs -one in the East and two in Hyderabad -when it was running short of stock in 2016. Eyeing the health segment, it recently launched a range of cookies using ingredients like oats, ragi, rice and corn. It has also ventured into the new segment of snack bars. However, with Britannia’s Nutrichoice, and ITC’s Farmlite, there’s already enough competition in the segment.Going beyond cookies, Unibic Foods will also look at new snacking products which are distinct and affordable in nature. “We have 30 odd variants of cookies but there is a lot of work to be done here. Once we have exhausted the geographical part of what we are doing today, we will look at products which do not require humongous spending and give us the opportunity to be one of the top three players within a reasonable period of time, added Sen.
Vol. 10, Issue 11 -April- 2018
Bühler Launches DRWE SmartWhite™ Rice Whitener.
or the first time, Global technology leader in Paddy Processing Industry, Bühler has launched modern patented innovative technology in 2-3 Tons per hour capacity rice whitener. This means even low capacity rice millers can now use best in class Whitening at amazingly affordable price. Low capacity rice mills in India find it difficult to get access to modern rice processing technology mainly due to higher cost of modern technology equipment’s. Due to this limitation, these mills end up doing lots of damages on the rice, which leads to wastage and labour lost. Also old traditional rice whitening methods are not hygienic. Bearing in mind that the product quality and value depends on the whiteness of the rice and the lowest possible proportion of broken, a high quality whitening machine is crucial to the economic success of a rice mill. Key Customer Benefits : ·Superior Performance, Lower broken, Improved rice whitening ·Energy efficient operation, 20 per cent less power consumption than competition · Hygienic operation and operator safety · Long cleaning intervals · Lower operational cost and easy maintenance In SmartWhite™ DRWE, there’s no compromise - it produces the highest whiteness with the lowest breakage.
Working Principle The SmartWhite™ DRWE uses the vertical, abrasive principle, which has been proven to achieve the highest head rice yield. Brown rice enters the Whitener via two inlets and is guided into the processing chamber by a feed screw. In the whitening chamber rice moves downwards like a spiral and leaves the machine via the conical retarding plate and the outlet hopper. The vertical brake bars reduce the speed of the product in the whitening chamber, thus increasing the whitening time and improving the whitening efficiency. The whitening intensity is adjustable by shifting the counterweights at the retarding plate. In SmartWhite™ DRWE, whitening intensity can be also adjusted by changing the frames positioning using simple innovative mechanism. This features provides finer control to get optimum performance.
Hapoos, Kesar to get dearer this summer
eather changes and unseasonal rainfall not only affected flowering of mangoes bu also long dip in production of Valsadi Hapoos and Kesar mangoes is estimated. Heavy dew and less heat are expected to result in nearly 30 per cent less production of these fruits in Saurashtra and south Gujarat. In Valsad district, which grew nearly 14 lakh tonnes Hapoos in Gujarat last year, bouts of rain in November, February and March affected flowering. Dr. D. K. Sharma, in charge of Navsari Agriculture University’s (NAU) Pariya farm, the biggest research centre of mangoes in south Gujarat, said, “We had nearly 65-70 mm of unseasonal rains in November 2017. Mango trees had just started flowering and rains led to big vegetative growth on the trees. This took away nutrition from the flowering. Adding to this problem, we had sudden rise in temperature that resulted in the flowering and small fruits withering away.” Sharma added that it is only the first flowering where fruits are little big now that would survive. But the fruits from the second flowering which are still small will wither away. We estimate 30 per cent decrease in the production. Rakesh Nayak,
a mango farmer from Pardi in Valsad, said that we had very good crop last year but this season it would be 25-30 per cent less due to withering of flowers. Nearly 34,000 hectare is under mango cultivation in Valsad district. Last year, good quality Hapoos sold at Rs. 800 per 20 kg in early part of season to settle at Rs. 700 per 20kg later. Kesar was sold at Rs. 750 per 20 kg and settled at Rs. 550 per 20 kg. This year, consumers will have to shell out at least 15 per cent more. In Gir, which is famed for Kesar, the mango production is expected to reduce by 33,000 metric tonnes compared to last year. Traders, who book orchards of mango growers for a lump sum amount, are now trying to negotiate the earlier decided prices. According to Gir Krushi Vasant Producers Company (GKVUS) supported by Nabard to help farmers selling their produce directly in cities, kesar production was last year was 2.11 lakh metric ton while this year, it is estimated to be around 1.78 lakh MT in Gir Somnath, Junagadh and Amreli districts. Dr. R.S. Chovatia, head of horticulture department in Junagadh Agriculture University said, “The climate change has affected kesar badly. The flowers are very sensitive and slight change in atmosphere affects them quickly. This year flowering was also affected due to unprecedented humidity and dew.” Prashant Patel, a farmer of Bamansa village near Talala, said that generally traders deal for the entire orchards in January but this year, many are trying to renegotiate by asking farmers to share the loss because production is not expected to be good. In my village, a trader fixed a deal for Rs. 4.50 lakh to by mangoes grown on 20 bigha orchard but they cancelled the deal before few days.
Vol. 10, Issue 11 -April- 2018
AGRO PROCESSING NEWS
Scientists cultivate bio-fortified New wheat varieties could allow maize to address ‘hidden hunger’. high fiber claims
aize, the third most important foodgrain following wheat and rice, is grown throughout the year in India. Popularly known as corn, it is used to make food items such as chips, flakes and popcorn. The hybrid varieties of maize currently grown in India, though rich in essential amino acids - lysine and tryptophan were poor in vitamin A. Therefore, now researchers at the Indian Agricultural Research Institute (IARI) have developed a maize variety which is rich in both Vitamin A and essential amino acids through the process of plant breeding. The new hybrid variety of maize is developed by crossing and has natural variations of three genes -beta-Carotene Hydroxylase, Lycopene-eta-Cyclase and Opaque2 - required for production of high amount of vitamin A and the two essential amino acids. The new hybrids, thus produced, have 4.5 folds more vitamin A content and similar amounts of lysine and tryptophan as earlier varieties. Vitamin A, a micronutrient, is required
for good vision, healthy teeth, skin and skeletal tissue. Deficiency of Vitamin A, predominately seen in developing countries, can cause blindness and increase the susceptibility of an individual to infectious diseases. Lysine and tryptophan are two essential amino acids -building blocks of protein -which cannot be synthesised by the body and must be supplied in the diet. Although vitamin A rich maize has been developed elsewhere, the new variety is important as it is rich not only in vitamin A but in two essential amino acids as well. In addition, the grain yield of new hybrids has been found to be similar to existing varieties, as evaluated by growing both varieties at two different locations in India. Researchers believe that bio-fortified high-yielding maize hybrid could help address micronutrient malnutrition. This bio-fortified maize can help in overcoming vitamin A deficiency in India. However, it is essential to sensitise farmers, policymakers and seed traders about this new development so that it can be commercially released.
Agri Leadership Summit in Rohtak of agricultural land. The state supplies 14 crore quintals of food grains to other states after meeting its own requirements. We have to convert agriculture sector to agriculture service by use of improved technology. We need to work collectively on challenges like climate change, water scarcity and soil health. We have to work together to deliver good nutrient food to people.”
he round table conference was held at Mela Ground in Rohtak. More than 50 foreign delegates from various countries visited the third Agri Leadership Summit, 2018 Principal Secretary of Agriculture and Farmers’ Welfare Department Abhilaksh Likhi announced. Among those who attended the summit included Minister Economic from Nepal Krishna Hari Pushkar, Ambassador Extraordinary and Plenipotentiary of Mongolia Gonchig Ganbold, Agriculture Attache, Ministry of Agriculture, Livestock and Food Supplies Dalci de Jesus Banolin, Counsellor from Spain Dr. Teresa Barras Benlloch and delegates from Zambia, New Zealand, Canada, Namibia, Germany, Uzbekistan, Georgia, Belgium, Ethiopia, Netherlands and Russia. Agriculture Minister OP Dhankar and Principal Secretary (Agriculture) said, “Haryana has 90 lakh acres
Dr. Rasha Omar, Country Head IFAD (UN) moderated the session, Dr. Likhi added, a brief presentation on Haryana’s Industrial Promotion Policy shall be given by Principal Secretary of Industries and Commerce Department Sudhir Rajpal. During the round table, discussions will be held on the experience of Haryana in developing the Agriculture and Agri Business sectors, global practices in the sector of agribusiness development and main opportunities for international investment in the Agri-Marketing, AgriBusiness, Agri-Industry and Food Processing sectors for higher economic growth, employment and farmers’ incomes.
turers to incorporate the wheat into reformulated products to boost their fiber content, and plans to increase the number of acres planted with the wheat in the coming growing season.
rcadia Biosciences, Inc. has developed new wheat varieties that may contain enough fiber to qualify for on-pack fiber claims under Food and Drug Administration rules. The wheat contains up to 94 per cent amylose, a carbohydrate molecule that is resistant to digestion. The ingredient is a resistant starch, which acts as a prebiotic, meaning it is digested slowly and feeds the so-called “good bacteria” in the gut. Ordinary wheat contains about 25-30 per cent amylose. The company says it is working with food manufac-
Agriculture Production Commissioner K. K. Mittal said that new policies will encourage prospective investors to put their money in the north eastern region.
The theme of the conclave was “Focus Assam The Future Food Basket of India”.
Neelima Dwivedi, Vice President Pepsico India Holding Private Ltd said that given the rolling demand for processed foods, there is a tremendous opportunity for growth in the sector.
o minimize wastage of agricultural and horticultural produce, while also providing raw materials to food processing industries, The Assam government is working on a proposal to set up primary processing centres at sourcing points.
Chief Secretary to the state department of industries and commerce Ravi Capoor said at the Food Processing Conclave organized by CII in association with the Union Ministry of Food Processing Industries (MOFPI).”These centres will be a major attraction for prospective investors as the state has an advantage in at least 8-10 key products such as bay leaf, banana, oranges and finest turmeric.” He also expressed confidence that the conclave will help facilitate market linkages between farmer producer companies and retail chain and big corporates.
ndian’s organic food industry is worth Rs . 2,600 crore and now will get a credibility boost from July, when standards and certification norms will kick in, helping to bridge a trust deficit for its produce among foreign buyers, mainly those in the US, Europe and China. Also the trade
Strict norms will bring in more trust of foreign buyers, as the traceability of organic products is not very well established and hence some companies with vested interests take advantage and start supplying conventional products in the garb of organic products. This has created a trust deficit among buyers and consumers.
Currently, less than 4 per cent of India’s agricultural produces is processed, while in countries such as Brazil, China and Indonesia, the percentages are 70, 23 and 50, respectively, she added. Low yield, inadequate infrastructure and absence of market linkages for farmers are the major impediments to growth of the sector, Dwivedi added. The conclave, ‘Focus Assam the Future Food Basket of India’ saw deliberations in two technical sessions on value addition and technology intervention and central and state government schemes and market linkage.
Indian Govt trying to keep wheat price steady ed, and in my view, it’s going to somewhere between 91-92 million tonnes”.
India’s Rs. 2,600-crore organic food industry to get credibility boost
Domestic growers of organic food have been demanding strict implementation of certification norms and penalties to prevent companies from selling poor quality products.
For food companies, dietary fiber that is present in the grain itself means there’s no need to add fiber to their products – a clear benefit for manufacturers eager to take advantage of consumer interest in fiber as well as the desire for shorter ingredient lists.
Assam to set up agri processing centres
Expressing satisfaction at the success of the Agri Leadership Summit, Dhankar said more than 1.60 lakh farmers had visited Rohtak in the past three days.
is seeking exemption from the goods and services tax to narrow the vast difference in prices between conventional and organic products.
Arcadia Biosciences says its new wheat varieties help answer demand for more natural, clean label packaged foods that also have the health benefits of dietary fiber and resistant starch. Resistant starch is an important component of dietary fiber, and research has shown it may contribute to digestive health, protect against the damage that precedes bowel cancer, and help prevent type 2 diabetes.
ndia is trying to keep local wheat price steady until farmers sell their wheat crops. Central government has dropped a plan to double a wheat import tax to 40 per cent, sources said; it expects imports to make up for a shortfall in domestic production for the third year in a row. Sources said that the three concerned ministries have decided against raising the tariff for now. The food, trade and finance ministries were considering hiking the tax to ensure that local prices remained stable and millions of domestic farmers got good returns for their harvest. Tejinder Narang a New Delhi-based analyst said, “We can now conclude that production will be less than expect-
The farm ministry forecast that this year’s harvest would reach 97.11 million tonnes against a target of 98.51 million tonnes. Local media quoted officials as saying output would even cross 100 million tonnes.Wheat demand in India, the world’s second-biggest producer and consumer of the grain, is estimated at about 100 million tonnes, with consumption rising by 1-1.5 percent a year. Traders said it was too early to accurately pin down India’s wheat imports this year, but most said they believed it could be between 2-4 million tonnes with the rest of the demand being met by stocks. Indian flour millers imported nearly 2 million tonnes of wheat last year and 6.5 million tonnes in 2016. Purchases by India could sustain the benchmark Chicago price that hovered. Most import cargoes are booked by flour millers near port cities in the southern parts of India, as they find it cheaper to buy from Australia, Russia and Ukraine.
Vol. 10, Issue 11 -April- 2018
Amul to launch ‘haldi doodh’ & Irish mocktail this summer
he two new drinks are to be launch by Amul Dairy for the first time in India. The Kaira District Co-operative Milk Producers Union Limited popularly known as Amul Dairy has started production of the two new varieties of milk which will be available to consumers. The Gujarat Co-operative Milk Marketing Federation (GCMMF) the apex marketing body of all the district dairy unions of Gujarat that markets Asia’s largest milk brand Amul, will soon launch ‘Haldi doodh’ (turmeric milk) nationally. And to satisfy the taste buds of generation next Haldi doodh will be launched across the country with an ‘Irish drink mocktail’ both being introduced for the first time in the country. Amul Dairy’s managing director Dr. K. Rathnam, adding that the two new varieties are being manufactured at the Amul Dairy plant in Anand by utilising the milk union’s existing infrastructure. “We have capacity to manufacture 1.50 lakh units of each of this products,” he added.
“Haldi is already known as a superfood for its immunity boosting properties. Particularly with milk, it forms a centuries old ayurvedic remedy for a host of ailments,” said GCMMF’s Managing Director R. S. Sodhi. “Not just in India, ‘Haldi doodh’ is celebrated globally and is famously called ‘turmeric latte’. At times, with a host of medicinal properties, it acts as a household remedy,” he said. The Irish drink mocktail on the other hand is inspired from the famous Irish coffee having its origins in Ireland. GCMMF officials said, with the launch of the new milk based beverages, the country’s largest co-operative is targeting Rs. 100 crore nearly 5 per cent of the total milk based beverage market. “We are confident that Irish drink is bound to disrupt the beverage category and become the new high of 2018,” the official added.
Solar Cold Room with TES Technology
eading refrigeration company Ice Make is now offering Solar powered stand - alone Cold Room. Stand-alone Solar Power is one of the best solutions for operating small cold storage system in rural areas where there is certain limit of power load. This Cold Room runs on Solar energy which is eco-friendly as well as cost saving. Ice Make Solar Cold Room uses new technology for energy backup called Thermal Energy Storage (TES) System, which contains PCM to store energy and gives a backup for 24 hours under certain conditions. Ice Make has built this Solar Cold Room with the storage capacity of 4 to 5 Metric Ton. This is specially designed to store products like Fruits & Vegetables, Flowers, Pharma and other Dairy Items with the storage temperature range of 2˚C to 10˚C. Solar Cold Room is also Hybrid type Cold Room designed to use throughout the year, even there is no sunlight it can be run by alternate power source i.e. Electric Power and/or DG Power. Unique Features: · 24 Hours Backup (No Door Opening) · Run with Variable range of power for maximum
use of solar energy · Solar Standalone · Grid & DG Set Hybrid · No Battery for Refrigeration · No Running Cost on Solar Supply · Low Maintenance · Portable - Easy to Shift The above features of Solar Cold Room make it best suited & affordable for farmers.
Maharashtra to float a chain of regional food parks
aharashtra government has taken the decision to float a chain of regional food parks to take ahead its policy of providing minimum support price (MSP) to the farmers across the state and it has shortlisted almost 12 to 14 mega food parks across Maharashtra.
The Niti Aayog has taken the decision to begin consultations with state governments to evolve a comprehensive MSP model which can be financially feasible and workable at the grassroots. Chief Minister Devendra Fadnavis has proposed the concept of incorporating the food park model towards sustainable agriculture and also higher income for the farmers. The food parks which have been planned spans across Satara, Ahmednagar, Wardha, Nagpur, Nashik, Jalgaon, Latur and Sindhudurg. At the Magnetic Maharashtra last month, the state government held detailed discussions with private players to take ahead the projects with a public-private partnership. The food park will play a significant role in taking ahead the government’s reforms for sustainable agriculture, double production and higher income for the farmers.The state has also made several key recommendations to the Central government for growth in the sector. Apart from the Centre, state reforms to push agro-industries reflect in the incentives taken by state government. Apart from power, government is using the group farming model to boost agriculture production and income of farmers which it believes could converge with food park projects. The fruits and vegetables processed in the state do not exceed 1.5 per cent of the overall production. Almost 35 to 40 per cent of the fruits and vegetables are wasted in absence of food processing units in state.
Vol. 10, Issue 11 -April- 2018
US ups anti-dumping duty on Indian shrimp to 2.34 pc
he United States Department of Commerce has increased the anti-dumping duty on Indian shrimp to 2.34 per cent from 0.84 per centin the preliminary results of the department’s administrative review for 2016–2017. The administrative review reports that Indian exporters have made below normal value sales to the US in the year of review and are subject to anti-dumping duties. There would be no impact on exports from India unless the final results of the review, expected in 120 days after the preliminary reports, are accepted by the Department of Commerce. India has been the largest exporter of frozen shrimp to the US in 2017 with 32 per cent share after some south Asian producers like Thailand suffered due to diseases in fish farms. The anti-dumping duty is calculated after individual examination of two mandatory respondents from nearly 231 Indian exporters. The anti-dumping duty on imports from Vietnam has been fixed at 25.39 per cent for the year in review. Seafood exporters pay a cash deposit based on the administrative review from which the US government applies the duties. The US Department of Commerce conducts such reviews on a periodic basis to update and assess duties. The US government imposed an anti-dumping duty on frozen warm-water Indian shrimps in 2004, saying that it was hurting US shrimp farmers. The Coalition
of Gulf Shrimp Industries (COGSI), an association of shrimp farmers, has been fighting against aquaculture shrimp imports into US, claiming that artificially low-priced imported shrimp from seven countries including India have suppressed and depressed domestic prices, eroded domestic sales, destroyed US jobs and eliminated the operating margins of domestic producers. The impact of the anti-dumping duty from 2004 was dramatic on Indian exports. Indian shrimp exporting companies to US fell to less than 75 from 228 at the time of imposition of the punitive duties. Currently, the punitive tariff on Indian shrimp exports stands at 0.84 per cent. In the last few years, Indian seafood exports are seen recouping its losses suffered due to the punitive tariff imposed by US in 2004 with the help of vannamei shrimp production, which is cheaper than the traditional black tiger. In 2016-17 India exported 11,34, 948 MT of seafood, principally frozen shrimp and frozen fish, worth 37,870.90 crore and provisional export figures for April-November 2017 have shown an increase of 18.72 per cent and 15.16 per cent respectively in volume and value (in US Dollars) of seafood exports. The export earnings are expected to cross $6 billion during the current fiscal, buoyed by aquaculture growth, enhanced processing capacity and favourable market conditions.
MPEDA foreign trade with Russia “Export of seafood products is also playing a key role in the country’s Gross Domestic Product,” says an MPEDA official. India, China, Indonesia, Ecuador and other countries are the top marine exporters in the world.
ccording to reports Marine Product Export Development Authority (MPEDA) official and exporters will take part in a foreign trade meeting to be held in Russia. The MPEDA is planning to hold meetings with the governments and buyers of various countries where the potential is largely untapped. The team headed by MPEDA Chairman A. Jayathilak, and comprising Deputy Director Archiman Lahiri and exporters will be part of the delegation from India. India had marine exports worth $ 5.7 billion during 2016-17. It targets to achieve exports of $ 6 billion during 2017-18.The country is exporting marine products to the U.S., Vietnam, Europe, Japan, and Russia.
According to an exporter, The MPEDA officers and exporters will meet the Russian delegation, including government officers and prospective buyers, and discuss the scope for market development. “About 10 marine exporters from India, including one from Andhra Pradesh, are part of the Indian delegation. The deliberations will be on the demand, specifications, quality, price, and other issues”. The Indian delegation, during its stay in Russia, will also meet other stakeholders, the official adds. “In India, Andhra Pradesh, Gujarat, West Bengal, Odisha, and Kerala are top producers of marine products. As the contribution of Andhra Pradesh is high, international exporters and buyers from the U.S., Vietnam, Europe, and other countries are focusing on the State,” say the officials.
Production surge of Indian shrimp Shrimp farm head calls for India wide union amid price disparities might result in a price fall
production surge of Indian shrimp might result in a price fall, say trade sources. Output of farmed shrimp was about 500,000 tonnes during the first three quarters of 2017, compared with 400,000 tonnes in 2016. Apart from India, the major producers of farmed shrimp were China, Ecuador, Vietnam and Indonesia. America is the largest market for Indian seafood. The US administration recently raised anti-dumping duty on Indian shrimp to 2.34 per cent, from 0.84 per cent. And, on shipment from Vietnam from 4.8 per cent last year to 25.39 per cent. Indian shrimp also goes to Vietnam for value addition and re-export to the US; this would be hit. India, in fact, appears to have become the world’s largest export of shrimp.“Production will be increasing as more and more areas are coming into (shrimp) farming in Odisha and West Bengal. However, access to capital remains a constraint; the seafood sector is capital-intensive,” said Adi-
tya Dash, managing director, Ram’s Assorted Cold Storage, a leading Odisha-based exporter. He says India could be at the top spot for another 15 years. In India, strong demand from North American and East Asian markets supported higher shrimp export at 420,500 tonnes, an increase of 33 per cent, making India the top world exporter. During the January-September 2017 period, average monthly export was 47,000 to 50,000 tonnes, mostly raw shell-on and peeled shrimp,” went a report from Globefish, an entity under the Food and Agriculture Organization of the United Nations. The destinations for India were America, Vietnam, the European Union, Japan and the UAE. Export increased to China and South Korea. The Globefish report says Indian export rose 42 per cent to the US market, compensating for supply declines there from Indonesia (three per cent less), Ecuador (1.4 per cent less), Thailand and Vietnam (seven per cent less). Import from China rose 39 per cent.
urai Balasubramanian, secretary of the Pattukottai Shrimp Farmers Association in Tamil Nadu claimed that there is a strong support among India’s shrimp farmers, to support price differences among different states for shrimps to protect shrimp industry. “It’s time for all farmers to get united. Farmers are the entire backbone of the aquaculture industry, feed companies, exporters, chemical manufacturers all depend on farmers”,said Balasubramanian. He suggested there should be a minimum “support price” for shrimp, just like in Thailand, to protect the shrimp industry and make it sustainable. It’s time for farmers to meet with an exporter’s consortium and sort this issue. He told Undercurrent News that at present there is price disparity, using Tamil Nadu and Andhra Pradesh as an example. Currently in Tamil Nadu
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farmers are being quoted INR 450 per kilogram for 30 count shrimp, INR 350 for 36/40, INR 320 for 46/50, and INR 300 for 53/60, he said. Meanwhile, in East Godavari, Andhra Pradesh, prices are at INR 410 for 28/30 count, INR 310 for 36/40, INR 280 for 46/50, and INR 270 for 60 counts. Even across the same state, in West Godavari, there are discrepancies 50 counts are going for INR 290, and 60 is INR 280. “All rates are diverse, and Andhra Pradesh’s price is very poor,” he said, laying the blame at the door of exporters. “At the recently concluded aqua expo India International Seafood Show I met different farming heads from states, and all were willing to merge all the unions, to make it more able to reach the government,” said Balasubramanian. If the prices noted above for Andhra Pradesh remain then many farmers will begin to incur losses, he said. Packers’ buying patterns have also changed recently, he said. “I have been hearing reports no processor is willing to buy 30 count materials. There are so many constraints; the only solution we have been thinking of is to get all farmers together from different unions.” In February Undercurrent reported that demand for larger shrimp was low, with the US not yet in the market. Instead, smaller sizes had received a boost from Chinese interest. The idea of a minimum “support price” for farmers is not new it was proposed to Undercurrent on a visit to Visakhapatnam in Andhra Pradesh, in December 2015. G. Pawan Kumar, Managing Director of Sprint Exports’ seafood division, told Undercurrent, “In the last year or so we have worked to bring our customers, the buyers, on board with understanding how supply works with regard to their contracts.
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Vol. 10, Issue 11 -April- 2018
India among countries to fight US against disrupting the DSB by blocking appointment of judges
ost members of the World Trade Organisation (WTO), including India have showed great unity on the face of a potential crisis. They have joined forces to beat the US action of disrupting the working of the dispute settlement body. In fact a large group of countries are working out a strategy to opt for an alternative mechanism of dispute resolution, provided for in the WTO rules, which would allow them to have arbitration outside the DSB. The group consists of countries like India, China, Australia, Canada, New Zealand, Argentina, Bolivia, Russia, Paraguay, Vietnam, the EU, Peru and Korea. The rule being considered to get around the problem of inadequate number of judges at the DSB is Article 25 of the Dispute Settlement Undertaking, which offers an alternative means of dispute resolution contingent upon mutual agreement of the parties. Under the dispensation, instead of approaching the DSB, the parties mutually agree on the procedures, including the selection of the arbitrators, and the
judgment is enforceable in the same way as when adopted through Appellate Body reports. WTO members who are eager to ensure that the dispute resolution system of the WTO does not get affected want to reach a mutual understanding amongst them on the use of this alternative mechanism permitted under Article 25. Once the understanding is reached disputes between members who are parts of the new understanding can be sorted out outside the DSB. The 60 members who proposed to the DSB last month to start the process of appointing judges are all part of the group looking for an appropriate alternative mechanism. While resorting to Article 25 (arbitration outside the Appellate Body) will sort out part of the problem, the disputes involving the US might still stay unresolved. But the US will certainly not agree to be part of an arbitration process that falls outside the DSB as it would defeat its very purpose of holding up selection of judges. Since the US is a part of many of the disputes, the countries party to such cases would not have access to the alternative mechanism to sort out their grievances.
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ITC’s Aashirvaad becomes Rs 4,000 cr brand
ith a share of 28 per cent in branded flour segment FMCG giant ITC Aashirvaad atta has become a Rs. 4,000-crore brand in the wheat flour market. “Aashirvaad is India’s number one branded packaged atta with a consumer spend of over Rs. 4,200 crore,” ITC Divisional Chief Executive Foods Division Hemant Malik. He further said that the brand has been growing at the rate of 16-17 per cent CAGR over the last many years and we hope to continue this growth momentum. The company as part of its expansion plans is also expanding brand Aashirvaad into new segments as milk and ghee in the dairy category, besides spices, instant mixes, ready meals etc. In India, branded wheat flour market is growing rapidly; and presently, around 60 per cent of households purchase wheat, 25 per cent buy loose wheat flour and balance 15 per cent buys packaged wheat flour, Malik said. “We are having 28 per cent share of that (packaged wheat flour),” he claimed. The company, he said, is now offering customised atta blends in wheat flour category in accordance with regional preferences; and in health segment, it has sugar release control atta, and multi grains etc. “We have customised blends for different regions. We have also crafted variants in the health and wellness space which includes Aashirvaad Multigrain atta and Aashirvaad Sugar Release control atta,” he said. The company has extended Aas-
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The company is also evaluating some other segments like maida, suji, besan for expansion of Aashirwad brand. “In the coming years, we could look at products as maida, suji, besan etc,” said Malik. Besides, ITC also exports Aashirwad atta to 32 countries, including US, Canada and Middle East, targeting the Indian diaspora. The export is presently about 7 per cent of total sales. Over the recent videos being circulated in social media platforms such as Whatsapp and Facebook alleging the company mixes plastic in Aashirvaad atta, ITC said those are “malicious” and are “wrongly” claimed. “What is being shown as plastic in these mischievous videos is actually wheat protein which is a mandated component of atta by the FSSAI. Protein is an integral part of any atta/wheat. This protein is what binds the atta. Without this protein, it is not possible to roll chapatis,” Malik said. The company had filed police complaints in Kolkata and Hyderabad. “There is a court order issued in ITC’s favour which restrains the circulation of such fake videos on social media,” he added.
In next 3 yrs, ITC’s Farmland will be available in 7 metros
ajor FMCG giant player in India, ITC that also sells fresh potatoes and apples under ‘Farmland’ brand and dehydrated onions and prawns under its Master Chef brand in Delhi, Hyderabad, Kolkata and Bangalore.
(24th-26th October 2018) Mumbai
hirwad brand into cow ghee and also launched Aashirwad milk last month in Munger at Bihar. “Now the brand Aashirvaad has spices and salt. All the basic staple food, we believe that Aashirvaad brand has a great efficiency,” Malik said adding that the company is leveraging its network of e-Chaupal and chaupal sagar to source quality products from the farmers.
In three years’ time, they plan to expand their presence in seven other metros. The company will first develop infrastructure in the city and consolidate its position and then move to other markets as part of its strategy. ITC Agri Business and IT
Group Head S Sivakumar said, “In next three years, we would have a complete range in all the seven metro. In a three year time frame, portfolio of Farmland and ITC Masterchef, whatever we want to put, all will be complete. We would develop our channel and then fill it up and then we would roll out in other markets. The work happens in all the products and depending on where we see opportunity of matching with the consumer need, then we decided to roll out.” ITC has forayed into milk segment through its brand Aashirvaad in Munger, Bihar and will extend it to other neighbouring regions. “This would also happen in the neighbouring states,” Sivakumar said, adding that it would also depend on availability of milk. He also said that there are no targeted marketing efforts by the company in this segment like other products. “In case of milk, the focus is elsewhere. In case, we get more milk then, we are selling it. Our focus in the milk segment is on value added products (as ghee and dairy whitener).” ITC also introduced Ghee under its Aashirvaad brand portfolio, plans to take it on national level. Presently, it is available in Delhi-NCR and Southern state markets. They mull to introduce variants in the ghee segment according to the regional preferences.
Vol. 10, Issue 11 -April- 2018
Vol. 10, Issue 11 -April- 2018
Govt helping farmers to process spices and herbs such a big platform it will give them opportunity to showcase the potential of the region.
he major project in the hills of cooperatives are setting up by the Bengal government the State Micro, Small and Medium Enterprises (MSME) Department comprising local farmers, for processing and packaging locally-grown herbs and spices. Since past six months the MSME Department has been working as to rope in local farmers for the cooperatives. They largely grow cardamom, basil (tulsi), turmeric and ginger. Necessary machines and gadgets will be provided to the farmers as for processing and packaging herbs and spices. The cooperatives themselves are going to sell the products, so that the profits go back to them. Chief Minister Mamata Banerjee will inaugurate the peak and this venture will be one of the highlights of the Hill Business Summit. Top entrepreneurs are going to attend the summit. Highlighting the forming of industrial cooperatives for the farmers in the Hills will help them get business. The major boost of the economy region is expected after the summit and it will be the first time that the people of hills will be exposed to
Hills are filled with forests and agro based resources. The Senior official of the MSME Department said, the project was under taken after a market study revealed that there is a immense demand for products like large cardamom, ginger, turmeric and basil. There is a huge demand for basil extract (‘tulsi arak’ in Bengali and ‘tulsi ark’ in Hindi), as it has high medicinal value. Senior official said “suppose there are 100 families involved in growing basil plants in the Hills. They will be brought under the cooperatives and will be provided with machinery for processing and packaging the same.” He also added that the dairy products of Kalimpong, the famous orchids grown in the region, local dresses and handicraft goods will also be highlighted at the business summit.
Vol. 10, Issue 11 -April- 2018
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