February 2019

FOODANDBEVERAGE MATRIX RNI No: MAHENG/2018/75095

MONTHLY NEWSPAPER FOR F&B INDUSTRY Volume 1 / Issue 12 / Mumbai / February 2019 / Pages 24 / INR Rs 50/-

BUDGET 2019 ALLOCATES RS 1.92 LAKH CRORE TO FOOD MINISTRY; RS 1.84 LAKH CRORE SET ASIDE FOR FOOD SUBSIDY

T

he interim budget 2019 is a politically efficient budget that has stressed on agriculture and farmer progress and rural sector with announcement of direct income transfer of Rs. 6,000 to farmers, besides enhancing the outlay by over 43 per cent year-on-year to Rs. 2.89 lakh crore for 2019-20. The increase comes to 30 per cent when compared to the revised budget estimates for 2018-19, which was Rs. 2.22 lakh crore.

While presenting the Interim Budget in the Lok Sabha for 2019-20, Finance Minister Piyush Goyal, said agriculture is the main driver of the rural economy and there is a need to provide income support to farmers with small and marginal land holdings, who are facing problem of lower returns.

The total outlay for the Ministry of Food Processing Industries is Rs. 1,196 crore in 2019-20 as against Rs. 1,000 crore in the revised budget for 2018-19. The government has allocated of Rs. 1.92 lakh crore for the Food Ministry, out of which Rs. 1.84 lakh crore has been set aside for food subsidy.

The government has earmarked Rs. 75,000 crore for the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) in the total allocation of Rs. 1.50 lakh crore for agriculture and allied activities.

The rural sector has received Rs. 1.39 lakh crore.

In fact the income support will be transferred directly to the bank accounts of the farmers in three equal installments of Rs. 2,000 each.

The government has allocated Rs. 20,000 crore for the PM-KISAN in the revised estimates of the current year as the scheme will be effective from December 1, 2018. The government has allocated Rs. 14,000 crore for the crop insurance Contined to page no 4

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February 2019 | Food And Beverage Matrix

FOODANDBEVERAGE MATRIX

MONTHLY NEWSPAPER FOR F&B INDUSTRY Dear Readers,

Editor’s Note

On behalf of “Food and Beverage Matrix”, I would like to thank all of you for your continuous support.

The Codex Committee on Spices and Culinary Herbs (CCSCH) has proposed standards for dried oregano, dried or dehydrated ginger, and garlic along with dried basil, dried cloves and saffron during recently held fourth session at Thiruvananthapuram, Kerala.

Draft standards on spices and herbs like oregano, ginger, garlic, chilli pepper and paprika, basil, nutmeg, cloves, and saffron but turmeric and cardamom could not be discussed during the event due to time limitations, but it will surely be taken up.

The committee decided to revise the standards for chilli paprika and nutmeg, as well, will be taken in next meeting.

Overall 15 spices were supposed to be discussed in the meeting, but the committee took only six including dried oregano, dried roots, rhizomes and bulb, dried or dehydrated ginger,

garlic, basil, cloves and saffron, for discussion on standards.

The session was chaired by Dr M R Sudharshan, former research director, Spices Board India, Ministry of Commerce and Industry, Government of India. It was attended by 26 member countries, one member organisation and one observer organisation.

The session looked at matters referred to by the Codex Alimentarius Commission and its subsidiary bodies on the agenda for proposing draft standards for select spices and herbs. It is important to mention here that CCSCH was formed at the behest of India, which is also the host country for it.

Value addition and food processing was on chart when India growth story for the next 10 years was in discussion by the current government however, as the interim Budget 2019-20 is out now, and we could not hear even mention of this subject in the Interim Budget 2019-20. While presenting the budget the focus was found shifted

to making India self-sufficient in food production and exporting to world to support its need and organic production was marked as vision of the government for the next 10 years. Modern agricultural technological intervention and value addition would lead us through “High farm production and productivity”. Focus of attention shall be given to development of integrated approach for agriculture and food processing/packaging, maintenance of cold chain etc for the next 10 years.

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February 2019 | Food And Beverage Matrix

EAT HEALTHY – LIVE HEALTHY BY SAMYAK LODHA

1gm Sachet of Stevilite provide only 3.75 calories against 20 calories of sugar.

It is a formula which is free

from any aftertaste. Thus u enjoy the sweetness of sugar naturally with no calories.

M

.

B. Sugars & Pharmaceuticals Ltd. is a world renowned company engaged in producing Sucrose & other pharma products. They are also producing specialty sugar products since year 2000.

A pack of 50 sachets is designed for In a recent launch of their new diabetic friendly product “STEVILITE” Mr Lodha told above mantra. He further described Stevilite as a natural, health friendly & diabetic friendly product.

It is the only sugar free which can be safely given to children. It’s a leaf extract of Stevia Rebaudina plant.

MARKETING DIRECTOR SAMAYAK LODHA, MB SUGARS

the convenience of consumers. Now it is available for leading hotels, restaurants & tea & coffee outlets.

They can provide a natural & healthier alternative to their guests.

For inquiries send us mail at mbho@mbsugars.com n Contined from page no 1

scheme — Pradhan Mantri Fasal Bima Yojana for 2019-20 — as against Rs. 13,000 crore a year ago.

Goyal said the farm loans have increased to Rs. 11.68 lakh crore in 2018-19. Total allocation for interest subsidy for short-term credit to farmers has been increased from Rs. 15,000 crore for 2018-19 to Rs. 18,000 for 2019-20.

He said the benefit of two per cent interest subvention would be provided to the farmers pursuing activities of animal husbandry and fishery who avail loans through the Kisan Credit Card (KCC).

The budget has provided benefit of 3 per cent interest subvention for disaster-affected farmers for the entire period of reschedulement — from the earlier period of one year — besides interest subvention of 2 per cent.

Centrally-sponsored schemes such as Pradhan Mantri Krishi Sinchai Yojana (PMKSY) Rashtriya Krishi Vikas Yojana, National Mission on Horticulture and Sub-Mission on Agriculture mechanisation have slight changes in their allocation for 2019-20.

For the rural sector, the government has earmarked Rs 60,000 crore for the Mahatma Gandhi National Rural Employment Guarantee Scheme that aims at enhancing livelihood security of rural households.

The government had allocated Rs. 61,084 crore for the scheme in the revised estimates for the current year from Rs. 55,000 it had earmarked when the Budget for 2018-19 was announced. The government intends to break the urban-rural divide in the country; Goyal said road construction works under the Pradhan Mantri Gram Sadak Yojana (PMGSY) has been tripled.

The allocation to the PMGSY has been enhanced to Rs. 19,000 crore for 2019-20 from Rs. 15,500 crore in the revised budget of current yearn

Food And Beverage Matrix | February 2019

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February 2019 | Food And Beverage Matrix

KAMANI BAKERY CHALLENGE 2018 REWARDS THE BEST IN THE INDUSTRY

M

umbai, January, 2019: AAK Kamani Pvt. Ltd, India’s leading specialty oils and fats manufacturer, organised the first Mega ‘Kamani Bakery Challenge’ in Mumbai.

The challenge was judged by eminent chefs from the industry which includes Chef Suresh Thampy from Holiday Inn Mumbai, Chef Mohammed Imran from Leela Hotels and Chef Vikas Sharma from Travel Food Services Private Ltd. Mega Kamani Bakery Challenge was a grand finale competition where the winners from the Kamani Bakery Challenge from cities of Pune, Ahmedabad and Kolhapur competed. Mega Kamani Bakery Challenge gave a platform to all the participants to innovate and promote healthy products. This live competition took

place at AAK Kamani’s Customer Innovation Centre, a Centre of Co-Development that collaborates with customers to achieve their business goals.

The 1st Mega KBC winners were Pradeep Sweets from Pune who won the award in the health category and Ismail Bakery from Pune who won the award in the innovation category.

Commenting on the success of the event, Mr. Arun Varma, Vice-President, Sales and Marketing, AAK KAMANI said, “We have always been a believer of healthy living and building a fitter generation. We at AAK Kamani strongly believe in being a Co-Development partner of our customers to improve and innovate their products by providing expert solutions. It gave us great pleasure to host the 1st Mega Kamani Bakery Challenge event in Mumbai for all the winners to compete and create innovative and healthy products.

Mega Kamani Bakery Challenge is an avenue we have been eagerly looking forward to. It

recognizes some of the brightest talents in our industry and pushes them to think beyond their routine work to create innovative products.

Commenting on their win in the health category, “Nikhil Bansal” from “Pradeep Sweets” said "Being recognized as a winner of the Mega Kamani Bakery Challenge is a great accomplishment for us. AAK Kamani has successfully provided us a platform that motivated us to achieve milestones in reinventing healthy food. We are extremely thankful to the entire team of AAK Kamani” Commenting on their win in the Innovation category, “Musa Ansari” from “Ismail Bakery” said, “Today our customers are on a constant hunt for innovative offerings.

Mega Kamani Bakery Challenge is a great learning experience and we would like to thank AAK Kamani for their continuous efforts to help the baking community innovate and grow our business.”

The short-listed products were judged by the jury on the parameters of taste and texture, design and production, health and innovation. “It’s a great initiative by AAK Kamani to promote innovation and recognize the talented bakers for creating healthier variations of products at Mega Kamani Bakery Challenge. We are happy to be associated with Mega Kamani Bakery Challenge and appreciate the efforts put up by the entire team of AAK Kamani” said Chef Vivek kadam, Executive Pastry Chef, ITC Maratha Mumbai.

About Kamani Bakery Challenge and Mega Kamani Bakery Challenge AAK Kamani Pvt. Ltd. started the Kamani Bakery Challenge & Mega Kamani Bakery Challenge Awards to recognize the talent of bakers and appreciate their quality work. Kamani Bakery Challenge Awards aim to provide them with a platform to innovate their products and come up with healthier variations of popular desserts. All the KBC winners from Pan India get a direct access to Mega Kamani Bakery Challenge in Mumbai to compete with other bakers.

About AAK Kamani Pvt Ltd AAK Kamani Pvt Ltd. is a leading producer of specialty oils and fats started in 1962. On offer are a wide range of products for specialized applications for the food industry.

Besides speciality fats for Bakery, Confectionary & Frozen Dessert, their products include a range of culinary oils.n

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February 2019 | Food And Beverage Matrix

DKSH SIGNS DISTRIBUTION AGREEMENT WITH NOVO NORDISK PHARMATECH FOR ELEVEN MARKETS IN ASIA PACIFIC DKSH and Novo Nordisk Pharmatech A/S, a leading global supplier of high-quality ingredients for the biopharmaceutical and pharmaceutical industries, have partnered to provide high-quality cGMP quaternary ammonium compounds in eleven markets across Asia Pacific.

D

KSH’s Business Unit Performance Materials, a leadingingredients and specialty chemicals distributor, will distribute Novo Nordisk Pharmatech’s pharmaceutical grade compounds (quats) to its large customer base in Australia, New Zealand, Japan, Indonesia, South Korea, Thailand, Malaysia, Philippines, China, Taiwan and Singapore.

Novo Nordisk Pharmatech manufactures its pharmaceutical quats in accordance with the cGMP Guide ICH Q7 for Active Pharmaceutical Ingredients (APIs), the highest available quality standard in the industry. The quats, Benzalkonium Chloride (BKC), Cetrimonium Bromide (CTAB), Cetrimide and Strong Cetrmide, act either as preservatives or active ingredients in a diverse range of applications, including ophthalmic, nasal, oral, dental or topical treatments and medical devices, such as wound care.

A/S is the leading worldwide supplier of recombinant insulin for cell growth media and pharmaceutical grade quaternary ammonium compounds (quats) for the pharmaceutical, biopharmaceutical industry.

DKSH was chosen for its proven experience in providing Market Expansion Services along the entire value chain and for its solid logistics infrastructure. As a regional expert with more than 150 years of experience in Asia, DKSH offers an omni-channel approach that presents a one-stop regional solution for its clients. DKSH provides tailored valued-added services and a deep capillary distribution network that will enable the distribution of Novo Nordisk’s products in the eleven markets across Asia Pacific.

Tanja Schaffer, Vice President, Global Pharmaceutical Industry, DKSH, commented: “We are very pleased to partner with Novo Nordisk Pharmatech in Asia Pacific. Their pharmaceutical grade quats are a perfect fit for our API portfolio. We look forward to providing the quats to our large customer base in the region and to building a prosperous relationship with Novo Nordisk Pharmatech.”

Steve Profit, Global Sales & Marketing Director at Novo Nordisk Pharmatech A/S, added: “For Novo Nordisk Pharmatech, it is critical that we have a distribution partner that shares our business ethics and drive to offer the best services to our customers, so we are delighted to have DKSH as our new distribution partner. Novo Nordisk Pharmatech’s FeF® GMP quats products fit perfectly with DKSH’s wide range of excipients, enabling the customers to take advantage of these synergies. Together, we will be able to offer the best quality and local distribution in the market. This will allow our customers to grow in this progressing global market.”

About Novo Nordisk Pharmatech A/S Novo Nordisk Pharmatech A/S was established in 1949 as FeF Chemicals, acquired by Novo Nordisk in 1986 and has been part of the pharmaceutical group since then. Novo Nordisk Pharmatech

About DKSH DKSH is the leading Market Expansion Services provider with a focus on Asia. As the term "Market Expansion Services" suggests, DKSH helps other companies and brands to grow their business in new or existing markets.

Publicly listed on the SIX Swiss Exchange since 2012, DKSH is a global company headquartered in Zurich. With 825 business locations in 37 markets – 800 of them in Asia – and 31,970 specialized staff, DKSH generated net sales of CHF 11.0 billion in 2017.

DKSH was founded in 1865.

With strong Swiss heritage, the company has a long tradition of doing business in and with Asia and is deeply rooted in communities and businesses across Asia Pacific.

DKSH Business Unit Performance Materials is a leading specialty chemicals distributor and provider of Market Expansion Services for performance materials, covering Europe, North America and the whole of Asia. The Business Unit sources, develops, markets and distributes a wide range of specialty chemicals and ingredients for pharmaceutical, personal care, food & beverage as well as various industrial applications. In addition, it creates innovative and cutting-edge concepts and applications in 29 innovation centers located worldwide.

With 100 business locations in 31 markets and around 1,010 specialized staff, Business Unit Performance Materials generated net sales of CHF 894.1 million in 2017. n

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February 2019 | Food And Beverage Matrix

BE MY VALENTINO WITH NESTLÉS’ LES RECETTES DE L’ATELIER RUBY CHOCOLATE

N

estle’s bags Ruby chocolate as a premium brand following successful launch of Kit Kat and Baci Perugina Limited Edition in yester year.

To the surprise of the consumers, Nestlé is introducing a new limited edition of Ruby variant of its premium chocolate range,

Les Recettes de l’Atelier, to celebrate Valentine’s Day. Nestlé’s latest innovation Les Recettes de l’Atelier bar is pink in colour and is made with chocolate derived from Ruby cocoa beans and raspberries. This variant provides an intense freshness of berry-fruitiness without the addition of any flavorings or colors.

Made with carefully selected, best quality ingredients sourced from around the world, Les Recettes de l’Atelier more or less translates as “recipes of the artisan’s shop”.

Launched in Switzerland and France in 2014 and selling in

Cat Mews, brand manager, from Nestlé UK said: “We are very excited about this special Ruby variant of Les Recettes de L’Atelier. We know how popular innovative and exciting confectionery is and, following the incredible success of Ruby chocolate, we are delighted to be able to offer this delicious chocolate in a premium bar. Les Recettes de l’Atelier is perfect for that.”

after more than a decade of developing the innovative flavo n

more than 15 countries, Les Recettes De l’Atelier was and has grown to become Nestlé’s fastest growing confectionery brand in Europe.

Swiss chocolatier Barry Callebaut created Ruby chocolate

The new Les Recettes de l’Atelier will be available exclusively in selected Sainsbury’s stores where they will be on sale for £3 ($3.92).

FSPCA COURSES FOR PREVENTIVE CONTROL FOR HUMAN FOOD

M

r. Manan Bajaj of TRESBON CONSULTING, Lead Instructors of FSPCA Preventive Controls for Human Food conducted two sessions Jan 24th-26th, 2019 in Mumbai and Jan 28th-30th, 2019 in Thane, all participants were evaluated and are Preventive Control Qualified Individuals (PCQI) as required for FSMA implementation. All the chapters of the FSPCA Course Curriculum were discussed in detail examples of Indian context and case studies prescribed in the Course curriculum. An introductory module related to Foreign Supplier Verification Program (FSVP) was also part of later session as the updated course curriculum includes optional delivery of FSVP Overview. These sessions bring the total could of PCQI’s Trained by Mr. Manan Bajaj to over 100.

We got very good feedback from all participants of the course and the Next session is tentatively planned in Mumbai in the month of March 2019n

Food And Beverage Matrix | February 2019

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SUGAR CANE GROWERS GET NOTHING FROM FARM PACKAGE

n consequence of the tiff between the millers and the government, the sugarcane farmers are going to suffer, even as a big relief package for the distressed farmers in the country is set to be announced soon.

The sugar industry had been told categorically that no package for sugarcane sector can be expected now as the government in September last year provided a package worth Rs. 5,500 crore to support the sugar sector by way of offsetting cost of cane and facilitating export of sugar from the country.

production. It had led sugar prices in the global market to fall to 12 cents per pound, making it difficult for the domestic millers to compete in the global market, he said.

In order to help millers clear farmers’ dues, the government has also decided to provide financial assistance to sugar mills at the rate of Rs 13.88 per quintal of cane crushed in sugar season 2018-19 to offset the cost of cane. However, the millers found it “inadequate”.n

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While there is no proposal for any package from the Food Ministry, the PMO may take a different view of the issue considering the upcoming general elections, because Sugarcane is closely associated with the politics of Maharashtra and Uttar Pradesh.

Estd. 1979

In the last two months, the millers have made several demands to the government for assistance in terms of bridge loan and increase in Minimum Selling Price (MSP) to improve cash liquidity to enable them to release cane payments.

Last month, NCP chief and de facto sugar leader in Maharashtra Sharad Pawar wrote to Prime Minister Narendra Modi seeking the government’s intervention for the release of collateral sugar held with the public sector banks (PSBs) to boost exports which were stuck due to the difference in subsidy payment.

But officials in the Food Ministry are questioning why the millers failed to export seven million tonnes under Minimum Indicative Export Quota (MIEQ) with the government compensating the expenses towards internal transport, freight, handling and other charges.

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The drop in the crude oil prices had led to the reduction in the demand of ethanol, which had forced the industry in Brazil to shift focus back on the sugar

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February 2019 | Food And Beverage Matrix

WHO IS RESPONSIBLE FOR FOOD SAFETY AND FOOD HYGIENE IN INDIA’S EATING PLACES?

I

n India eating out is no longer considered a once in a while indulgence during a festive occasion. Irrespective of economic class more and more people go out to eat because it is convenient. For the working lot, it is a good alternative to cooking at home especially when time pressed.

To cater to the growing needs of consumers wishing to eat out, a number of eateries, casual dining, fast food joints, quick service restaurants, takeaways and even caterers have taken to food business in a big way. However, can the consumer be really sure that all these mushrooming eating joints provide safe and wholesome food? Are they maintaining food safety and food hygiene in the preparation, handling, storage, and transportation of foods?

With the rise in the eating out culture, there is a growing concern about food safety too. The responsibility of food safety lies with the Food Authority, the Food Business Operators (FBOs) and also the consumers themselves? The FSSAI made the laws and ensuring they are being followed, the FBOs need to be in compliance with the law as due diligence and consumers need to go to those eating places that are licensed and are following what they are supposed to follow.

A food license ensures food safety to a large extent as FBOs have to comply with the conditions of the license. One of the main conditions for grant of license is that they need to follow food safety, food hygiene and sanitation requirements mentioned in Schedule 4 of the FSSAI regulations. The Licensing Authority also undertakes periodic food safety audits and inspections of the licensed establishments through its own or agencies authorized for this purpose by the FSSAI, therefore licensed FBOs to ensure they are in compliance of food safety parameters.

Non-compliance with this provision by an FBO can attract penalty under section 55 of the Food Act or even cancellation of license. Consumer need to be alert and curious about it, after all it is there responsibility.

The World Health Organisation (WHO) defines food hygiene as the “conditions and measures necessary to ensure the safety of food from production to consumption”. Lack of adequate food hygiene measures can lead to contamination of foods which in turn can cause foodborne diseases, like food poisoning. It is the responsibility of all FBOs to ensure that they have taken all food hygiene and sanitation measures so that the food served in their restaurants is safe for the consumer to eat and does not cause serious diseases. Maintaining food safety and food hygiene enables FBOs to comply with the food laws in the country and also protect the reputation of their businesses besides ensuring consumers are safe.

Food can become contaminated at any point during preparation, processing, storage, distribution, or transportation.

Everyone in the food production chain needs to maintain food hygienic as that prevents harmful bacteria from contaminating food. One of the biggest factors leading to foodborne illnesses is cross-contamination from the hands of the food service employees. Bacteria can also spread from raw meats and unwashed vegetables to ready to eat or cooked foods so they must be kept separately.

Other places from where bacteria can spread to foods is from packaging material, food processing equipment like mixers and grinders, unclean cookware and kitchen cloths and dirty work surfaces. All raw materials and ingredients used in preparing foods must be safe and appropriately stored to prevent contamination.

Data on studies carried out after food poisoning outbreaks point to five main risk factors and these are •

Not holding food in the proper temperatures (temperature abuse)

•

Contamination from equipment (cross contamination)

•

Inadequate cooking time (inadequate process controls)

•

Food ingredients from unsafe sources (inadequate supply chain control)

•

Poor personal hygiene of food handling staff, especially poor hand washing habits or working when sick (No adequate controls on food handlers)

Temperatures play a key role in preventing contamination and so they must be maintained before preparation, during display after preparation, when food is served hot, when food is served cold, after cooking and when reheating food.

It is important to cook the food thoroughly up to the recommended temperatures and duration of time. All utensils must be cleaned thoroughly with detergent and hot water to prevent contamination. FBOs must purchase raw foods and ingredients only from licensed vendors so foods can be prepared safely for consumers.

It is equally important to ensure that food service employees are aware and adequately trained to follow safe food practices and FBOs must impress on them the need to follow good personal hygiene practices.

Other food safety precautions that FBOs must keep in mind are that water used in the preparation of foods or water that comes in contact with food for cleaning, heating or steaming must be potable drinking water. Ice must be made of potable water especially if it comes in contact with food or drink and must be produced, handled and stored hygienically. Utensils and work surfaces that come in contact with raw meat, unwashed vegetables and soil from vegetables need a thorough cleaning and sterilizing. Chopping boards and utensils for preparing raw meats and all other foods must be separate (color coding can be useful control). One other way that food can get contaminated is from the drip when defrosting foods so adequate precautions must be taken so the drip does not enter other foods. Beyond the question not only veg and non-veg food, allergen cross contamination and cross contact is also an emerging concern in our country due to changing food habits and its impact on immunity, it is already a very big concern in many countries.

Sometimes FBOs tend to overlook the design of their premises and that it meets regulatory requirements.

There must be enough working space and appropriate storage conditions to store raw materials and ingredients.

Walls, floors, ceilings, doors, windows and work surfaces must be of a material that does not attract dirt and mould and is easy to clean. There must be adequate washing facilities

including hand washing facilities and toilets for staff, adequate ventilation, lighting, proper drainage and waste disposal and a separate storage area for cleaning agents and disinfectants.

Adequate measures must be taken to prevent pests and insects from contaminating food both in storage and during preparation. Food waste must be stored in containers that cannot be tampered with by pests or stray dogs and cats. Vehicles and containers used to transport food must meet hygiene standards and must have a temperature control so the food is protected from getting contaminated.

One of the biggest food safety precautions the FBOs are responsible is to make sure their food service staff is fully conversant with all personal hygiene best practices. FBOs must provide soap for hand washing as well as hygienic clothing, gloves, hair covering and also have advised the handlers on when and where to wear and remove this protective clothing.

Food handlers must be sufficiently knowledgeable about the factors that can cause contamination and crosscontamination of foods like cutting boards, clothing, utensils, raw meat and vegetables. They must not smoke, spit, sneeze, touch face or hair, or eat food while handling food for consumers. They must wash hands after touching raw meat, going to the toilet, blowing their nose, after touching phones and mobiles or handling money. They must not wear jewelry when handling foods. If ill and suffering from infectious diseases or skin infection they must not be permitted to work.

I urge consumers to consider all above before choosing an food eatery for you and your family, I strongly believe that consumer’s demand can bring considerable change and hence will support the FSSAI in improving food safety scenario of our country.

Manan Bajaj, Director Tresbon Consulting Solutions and Services Pvt. Ltd. Mumbai.

Food And Beverage Matrix | February 2019

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RATIONALIZATION OF GST AND REFORMING THE FARM SECTOR; EXPECTATION FROM INTERIM BUDGET THIS YEAR

T

he food-processing industry’s top expectations from the government during this budget session are rationalization of GST, creation of infrastructure at the farm gate and higher budgetary allocation for the food ministry. Processing of food, primarily fruits and vegetables, is crucial for doubling farmers’ income, as the government has promised, say industry executives.

Last year budgetary allocation for the Ministry of Food Processing Industries was nearly doubled to Rs. 1,400 crore and this has boosted the expectations of the sector.

Also the present government has set the tone for the foodprocessing sector through various measures.

The roadmap for the next term or the next government will be to rationalize tax rate that is as high as 28% on some some of the food products.

Food industry is very much important then, the film industry and if cinema ticket can be made cheaper, tax slabs can also be brought down for food products, making them more affordable.

The government realises that growth of the food-processing sector and job creation in allied sectors is an answer to the rural distress and ensure that farmers don’t have to seek for loan wavers. So it is important that the next government to abolish GST on the sector.

It is extremely unfortunate that while farmers are compelled to discard fruits and vegetables in the glut season, if someone converts those produces into pulp, it attracts 12% GST. The world has found a solution to save wastage of natural produce by strengthening primary processing to catch the glut produce and convert it into a stable form.

Food processors said for the next five years, the government must encourage indigenous development of low-cost food-processing equipment, particularly for the micro, small & medium scale enterprises that comprise 90% of the food processing application in the country.

Besides reforming the farm sector, the government should allocate more funds for the rural sector to build a better road network. Also, higher job creation in rural India will foster demand for food products.

Cluster development should be the focus for the government instead of only focusing on large-scale food parks ad focus should shift to the development of pack houses, point of sale and

logistics infrastructure.

The CII recommends accelerated depreciation to equipment and machinery used in all segments of the food-processing industry, tax deduction at 200% under Section 35 for promoting the ‘Made in India’ brand abroad, benefits under section 35 AD for cold-chain projects that commenced operation prior to April 2012, and extension of benefits given to infrastructure projects to food parks as well.n

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February 2019 | Food And Beverage Matrix

GOVIND MILK – A PATHWAY OF RURAL DEVELOPMENT. Govind Milk & Milk Products Pvt Ltd established with the intention to help the farmers as the Cooperative milk union was unable to support the farmer. At Govind, the best procurement & processing system is practiced to process milk to produce milk products. A well planned system perfectly in tandem with the cattle farmers for fresh milk procurement.

There is excellent connectivity between the farmers & bulk milk coolers to transport & store the collected milk. A fully integrated dairy processing unit at par with international standards, with the capacity of 10 LLPD in Phaltan. The

efficient front end of dairy unit is supported an equally robust backward integration.

Well maintained harmonious relation with the cattle farmers is achieved through the practice of partnering in true spirit by providing and facilitating veterinary guidance & service and imparting the required knowledge on latest global technique to help increase in yield.

The Dairy farmers have been educated on many indigenously developed solution like loose housing, Calf rearing, and balanced food production achieving an extraordinary results.

The synergetic association with cattle farmers has resulted in the upgrade

of technology and process benefiting the community at large.

Govind does not own the farms or the cattle but relies on the dairy farmers to provide the most critical row material to the company. In its mission to insure the benefit for the farmer & quality to consumer, Govind has undertaken some unique partnering initiative with the dairy farmers. A team of veterinary experts from Govind Milk conducted extensive research over a period and devised a unique low cost concept of loose housing for the cattle. It facilitate free movement of cattle in a designated area which access to 24 hours water, feed & comfort.

The total area is depending upon the number of the cattle demarcated with fencing made from low cost resources available with the farmer like bamboo, dried branches of trees, T protect the animal from heat during day time there is shade. A Grooming brush is strategically mounted in the loose housing farm, takes care of natural instinct of an animal to rub his body against to a hard surface to groom itself.

The cattle get natural environment to live in which has resulted in easy let down of milk, improving both quality and quantity of milk.

The poultry in the farm have a symbiotic relationship with the cattle. They wean the cattle off the pests and keep the animal healthy and happy. Less use of medicine reduces the antibiotic residues in milk. The loose housing also produce quality manure.

Fodder management is very essential part of dairy farming.

Phaltan being a rain deficit area going through lean periods of green fodder availability. The scientist in Govind trained to farmers to preserve the green fodder called as silage. The scientist at Govind come up with a solution for farmers to reduce the cost of production such as Contined to page no 15

Food And Beverage Matrix | February 2019 Contined from page no 14

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SINGH OPENS MOTHER DAIRY’S FIRST MILK PROCESSING PLANT IN EASTERN INDIA

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Azolla which is a wonder food to cattle., Hydroponic fodder a tool which can used in scarcity of green fodder , inclusion of sprouts in diets of cattle, Milk replacer for better calf growth and pashu chocolate for good nutrition.

Govind believes that improving production is not only one thing but a holistic approach.

is became a backbone of rural development which have generated substantial employment in this area.

The ecosystem perpetuated

by Govind is helping the interdependent relationship of three industries i.e. crop farming; dairy farming & poultry in the region. The

The cattle farms of a successful farmers have been developed as model farms and serves as training center for the other farmers. Learning from the fellow farmer who have benefited by implementing the new techniques is providing to be an effective tool in re skilling the farmers.

The unique partnering model used by Govind , has benefited by multiple stakeholder. I t promoted the concept of ‘happy cow’ that is at the center stage of all dairy activity. The quality of life and economics of dairy farmer has improved. This has been also benefited to bank as farmer is able to repay loan in time. Thus the consumer gets better quality milk and milk products.

increasing per capita income from dairy farming and world class innovations introduced has succeeded in retaining many young farmers in Phaltan. The dairy industry is continuous dependent on quality input of milk. The elaborate explanation of the procurement processes at Govind brings out clearly that over the years, through the practice of the true partnership model, where the dairy farmers also prospered through the growth of company, Govind has succeeded in creating a harmonious environment through which the company continues to get a quality supply of milk through the year.n

The dairy activities of Govind

adha Mohan Singh, minister of agriculture and farmers’ welfare, Government of India, inaugurated Mother Dairy’s state-of-the-art milk processing plant at Math Banwari, near Pipra Kothi in Motihari, Bihar, recently.

The state deputy chief minister Sushil Kumar Modi was the chief guest of the ceremony, which was also attended by Bihar tourism minister Pramod Kumar; Members of Legislative Assembly (MLAs) Rajesh Kumar Gupta, Shyam Babu Prasad Yadav, Sachindra Prasad Singh and Raju Tiwari; Dilip Rath, chairman, National Dairy

Development Board (NDDB), and Mother Dairy officials.

Singh has played a key role in providing market access to the dairy farmers of Motihari and ensuring fair and remunerative prices for their produce. Working towards the cause of rural prosperity, he inaugurated the Bapudham Milk Producers Company on the auspicious occasion of Gandhi Jayanti in 2017.

The producers’ company paved the way for a streamlined and transparent milk collection system, wherein farmers started pouring milk, which was serviced to the markets of Delhi and Kolkata. b

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February 2019 | Food And Beverage Matrix

DEMYSTIFYING LEAN What is so great about JIT?

application of Ford production system and further improvisation, Deming’s teaching of management and TWI. Let us go through the history of each of these points.

Toyoda’s spirit of built-in quality

LS Kannan

Associate Partner Paradigm Services Pvt Ltd I am excited to get into the subject of Lean.

I have a strong opinion that either the methodology called Lean or the term Toyota Production System fail to transfer the true meaning of what is happening inside Japanese industries especially inside Toyota. You will also appreciate the thought as we proceed through this article and couple of articles that follow.

The 3Ps of Lean As we have seen in the previous blog, before trying to understand a tool or methodology, let us look at the 3 Ps of Lean, viz., Philosophy, Principles, and Practices.

Ocean of knowledge is shared with us in the past 2 decades about the tools and techniques of Lean; starting from Value stream map, kanban, andon, poka-yoke, line balancing and what not. We became befriended with a handful of Japanese terminologies as well. Here, we will focus more on the Philosophy and Principles of socalled Lean by getting to the roots and learning its history.

Lean is a perfect blend of Toyoda’s spirit of built-in quality, Ohno’s

Yes! You are right. There seems to be a spelling mistake. Is it Toyoda or Toyota? The Toyota Motor Corporation is a softened name of Toyoda - the mother plant. Toyoda was known for its automatic looms they manufactured and exported to Europe and US from the 19th century. In 1924 Sakichi Toyoda built a company called Toyoda Automatic Loom Works. It produced automatic looms with Sakichi’s designs. He constantly improved the products and came up with looms that would automatically detect defects and stop.

This system was called Autonomation (automation with a human touch) or jidoka in Japanese.

This invention literally eliminated the need for manual inspection and the strain of checking every inch of fabric that is woven. This improved the human productivity of the mills by 30 times. This is also the basis of modern day mistake-proofing.

In 1929, Kiichiro Toyoda (son of Sakichi) sold the patent rights of those mistake-proofed automatic looms to an English loom manufacturer and invested the money he got from that deal to build Toyota Motor Corporation in 1930.

Kiichiro prepared himself with education and hands-on experience of designing engines. He also visited Ford’s plant in the US to understand the manufacturing process. We have already seen the pioneering and adventurous manufacturing practices

of Ford from 1903 in an earlier article (Ford Production System).

Forced to be Lean We have also seen the impact of World War 2 on Japanese industries and economy in another blog “The Hidden Treasure of Japan”. When Japanese government wanted auto companies to manufacture more trucks to support transportation and infrastructure development, manufacturers were scrambling to

find factory machinery, working capital, labour and even space. They could not even imagine the luxury of excess working capital, huge inventories or high speed dedicated lines which were very common in American Industrial World. Japanese companies were forced to have less space, less number of inventories, less working capital, less workforce and so on.

Kiichiro’s vision As Kiichiro made several visits to the US and seen Ford’s plants, he wanted to build a similar moving assembly line. He discussed this idea with his team back in Japan. But they found that they could adapt Ford’s system.

This is because Ford had dedicated lines for every component and the plant did not need change over (changing the setting of machines when we change from one component to another component) and Toyota could not afford to store such amount of inventories either.

Kiichiro was smart enough to observe the synchronised working of consumption and top-up of materials in supermarket aisles of US. Kiichiro along with his Production Chief Taiichi Ohno started working on such model for their assembly line. The result of this long journey of more than 30 years is what we have today as Just in Time Production (JIT).

I prefer calling it Flow Production System.

Why people talk so much about JIT? “It will reduce the amount of inventory we are holding; so we will reduce the inventory carrying cost. What else?” I heard people so frustratingly ask this question. When we compare the actual saving from Flow Production System, the reduction in inventory carrying cost is negligible. JIT multiplies the earning capacity of your assets.

Do you agree that when a customer is giving you an order, he is ready to pay you? Imagine he is holding money in his hands waiting for you to deliver the product or service and receive his money. The money is holding against your order is literally your money. You take so much time to deliver goods or services to receive your money from the customer.

Business cycle & Cash to cash cycle Consider a manufacturing case; you received a customer order on day 1 and you deliver the requirement on day 60. You receive your payment for the supply on day 90 (with 30 days credit period).

But you need to pay to your supplier on day 30 (same 30 days credit period), pay salary to your employees and other overheads on day 30. On that day you are still 60 days away from receiving your money from the customer. Hence, you need to pay all your expense at least twice from your pocket. This is called Working Capital if I am right.

The cycle of cash out (payments) and cash in (receivables) of working capital is called cash to cash cycle.

And this is what TPS tries to reduce.

By reducing this the working capital - actual burden on business getting reduced.

What is Velocity of a process?

So, what has to flow in a production?

Conventionally, people - meaning, they have to work non-stop. Then the machines to run non-stop. Even today, we can see some Plant in-charges, driving the people and machines crazy to maximise output. That’s ok, right?

Contined to page no 17

Food And Beverage Matrix | February 2019 Contined from page no 16

But in Flow Production System, the material or information has to flow non-stop from Raw Material to Finished Product as quickly as possible. This is what we call as velocity (speed and direction).

Higher the velocity better will be the profitability of the company.

If the velocity is increased, the cashto-cash cycle time gets reduced.

Consider our previous example, where we pay our dues on day 30 and customer makes payment to us on day 90. Here, the cash to cash cycle is 60 days. If we talk in money terms, the working capital earns a profit after 60 days.

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Amazing, right!

your investment is doubled. Of course, you may need to pay the costly lean consultants!

Say your working capital is Rs. 1000 and your profit margin is 10%, then your Rs.1000 earn Rs.100 rupees as profit every 60 days. Hence, in a year, your Rs.1000 rupees earn Rs. 600 as profit. Imagine that we have reduced your cash to cash cycle time by 50% to 30 days. Now, wear an investor’s spectacle! Your same Rs. 1000 investment is going to earn Rs.100 profit every 30 days; it goes around 12 times a year bringing you Rs. 1200 as profit.

Notice, that the investment, infrastructure, people, plant capacity, and all other resources remain same (or even less). But your profit has doubled, i.e., the earning capacity of

MOC SIGNED BETWEEN INDIA AND JAPAN IN THE FIELD OF FOOD PROCESSING SECTOR

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overnment has given its approval to the Memorandum of Cooperation (MoC) between India and Japan in the field of food processing sector.

This bilateral cooperation in the field of food processing between India and Japan will be mutually beneficial to both the countries. It will be profitable for the food processing sector in both these countries.

The MoC will promote understanding of best practices in food processing in the two countries.

It will also help in improving the food processing sector including the improved market access which will lead to equity and inclusiveness.

The bilateral cooperation will also lead to the betterment of the food processing sector in the country. It will lead to the introduction of innovative techniques and processes. This beneficial cooperation will also help in increasing food processing in the country by getting access to best practices and better marketsn

Next We have discussed 2 of 3 points of Philosophy of Toyota Management System namely, the built-in quality and flow production system.

Let us discuss •

The people aspect of the Toyota Philosophy,

•

The principles of TPS,

•

History of globalisation of Lean and

•

Compatibility of Lean with Six Sigma in the future article.

LS Kannan Associate Partner Paradigm Services Pvt Ltd

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February 2019 | Food And Beverage Matrix

FSSAI TO LABEL PACKAGED FOOD PRODUCTS WITH OVER 1% OF GM FOOD

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he Food Safety and Standards Authority of India (FSSAI) has decided to go ahead with labelling packaged food products with over one per cent of Genetically Modified ingredients, thereby defying the pro-GM crop groups.

GM food lebelling will now be a part of GM food regulation itself. We have taken a view to reduce it to one per cent.

Labelling of GM food is required in Europe, Australia, New Zealand, Japan, South Korea, Brazil and China.

FSSAI CEO Pawan Kumar Agarwal, the scientific committee of the food regulator has green-signaled labelling of GM food items for manufacture, sale and distribution in India with a threshold value of one per cent.

Earlier, the threshold of five per cent was being considered. However, the scientific committee zeroed in on one per cent following consultations with all the stakeholders.

The FSSAI had come under severe criticism after environmental watchdog Centre for Science and Environment (CSE) reported in July last year that 21 of the

If the maximum residue level (MRL) of GM ingredients reaches one per cent, food products will have to display a message on their packaging that they contain GM food and a notification in this regard will be issued following approval by the government. randomly picked 65 food products, including that for newborns, from different retail outlets in the country were found GM positive in its lab tests.

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“The decision on banning or limiting the use of antibiotics in food products would be notified in the next two to three months.

FSSAI has petitioned by the industry that antibiotics in products generally come from primary sources such as through fodder or medical treatment. They also need time to set up lab test facilities,” said FSSAI chief.

He said some antibiotics would be allowed but their presence in food products should be below the prescribed MRL. Agarwal also said, “The food regulator had taken a strict view of the food safety norms being flouted by restaurants that have tieups with e-commerce food service companies. These e-commerce companies have identified 10,400 such restaurants that failed to follow the safety norms.

The list has been shared with the state governments.

The state governments are in the process of closing them down or persuading them to follow norms to keep their licenses (active).

New labs are coming up in some states with the support of the central government.

The state food labs system is currently weak. Once these labs are operational, testing will be more robust.

We are working with states to create posts and fill them up”n

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February 2019 | Food And Beverage Matrix

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February 2019 | Food And Beverage Matrix

INDIA BAKERY EXPO 2019 IS ONE OF THE BIGGEST BAKERY B2B EXHIBITION CONDUCTED IN ASIA. EVENT HIGHLIGHTS:

I

t is organized by Tamilnadu Bakers Federation India (TNBF) run by professionals in the baking industry. TNBF’s main aim is to promote the bakery industry by sharing technical & trade knowledge amongst its members.

TNBF also acts as a liaison with various organization involved in food processing, both governmental and private located in India and abroad.

Having tasted the success of 3 Editions of India Bakery Expo, TNBF steps up in conducting the 4th Edition of India Bakery Expo 2019 on May 24-26, 2019 at Chennai Trade Centre, Nandambakkam, Chennai, India.

India Bakery Expo will be a unique platform for the bakery industry in India. It will be a B2B Trade Fair for Bakery Industry and is poised to return Stronger, Bigger, and Comprehensive platform in the fast changing face of the Bakery Industry. The confluence of Materials, Machineries, Ingredients, Technology, Proficient and Young Bakers under one roof. It serves as an opportunity to explore the bakery industry all over World, now that we have extended our platform for the participation of overseas bakery industries as well. The objective of this event is to aspire & focus towards addressing the Bakery Industry as a standalone and prospective industry to the Government, Media & Society.n

•

3 Days Exhibition in Hall No.2 & Hall No.3

•

120+ Exhibitors, 20000+ Business Visitors, 6160 sq.m. of Exhibition Area

•

Seminars & Workshop on Bakery Technology

•

Food Safety & Hygiene

•

Bakery Art Festival, Cake Decoration, Cake Competition

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Innovative Bakery Products

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Live Baking and Technology Demos of Foreign Chefs

•

Participations from Association Members, Nodal Agencies and Media

GOVT ISSUES EASE OF DOING AGRI-BUSINESS INDEX CIRCULAR TO RANK STATES

I

n order to rank the states through an Index, i.e., Ease of Doing Agri-Business, the Government has circulated a concept note along with parameters for developing an Index to all states and UTs (Union Territories), inviting their views.

It has kept in mind the fact that there is a need to develop a competitive spirit between the states, which, in turn, will ensure that its reform agenda is implemented at a desired pace by all states and UTs. The Government has been reorienting the agriculture sector by focussing on an income-centredness, which goes beyond achieving merely the targeted production. The income-oriented approach focusses on achieving high productivity, reduced cost of cultivation and a higher remunerative price on the produce, with a view to earn higher profits from farming.

The concept is to consider farming not solely as a production-oriented activity carried out to achieve food security for the country, but also as a business activity carried out by the farmer as entrepreneur.

The proposed Index has taken the aspects of increasing production/ productivity, increasing price realisation of agri produce and decreasing input costs of production, risk mitigation and investmentrelated attributes.

Agriculture being a state subject, the state governments undertake the development of perspective plans and ensures effective implementation of the programmes/schemes.

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Also, the Government of India supplements the efforts of the state governments through various schemes/programmes. The index will obviously help in fostering agriculture among states by promoting a competitive spirit amongst the states.

This information was given by Parshottam Rupala, minister of state for agriculture and farmers’ welfare, in Lok Sabha recently

Food And Beverage Matrix | February 2019

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