Snapshots of Food Industry News
Harsimrat Kaur Badal roots for 100 percent FDI in food products
Harsimrat Kaur Badal, Union Food Processing Industries Minister, has in a letter, urged Prime Minister, Narendra Modi, to consider 100 percent foreign direct investment (FDI) in multi-brand retail of food products. Presently India permits 51 percent FDI in the multi-brand retail sector. The Food processing Minister feels that this would benefit farmers as well as the common man. The letter has been forwarded to the Department of Industrial Policy and Promotion (DIPP) as it is they who will look into this issue. Badal says that 100 percent FDI in multi-brand retail of food products made in India would give a boost to this sector. It would also encourage the development of cold chains much required by the food processing sector.
The multi-brand retail segment in India employees millions and is dominated by mom-and-pop stores. The BJP government is opposed to the idea of allowing FDI in multi-brand retailing. However, the previous UPA government had approved the policy which the present government has not yet done away with. A 100 percent FDI would act as an incentive for global players to begin operations in India especially as the government is taking steps to attract foreign investments in the country. For the present moment, the government has only cleared UK-based Tesco’s proposal in the multi-brand retail sector.
Brahmins Foods and Vinayaka Foods join hands
Brahmins Foods India Ltd producers more than 100 types of foods which include spices, condiments, breakfast cereals, whole grain flours, pickles and specialty foods. The company also has a wide marketing network in India and abroad and a business worth Rs.60 crore. On the other hand, Vinayaka Foods and Beverages is a leader in the catering business in Kerala and have recently launched their range of ready-to-eat (RTE) traditional Kerala curries and various payasams. The agreement between the two company’s states that Brahmins will market Vinayaka’s products in other Indian markets as well as overseas.
The RTE products have been manufactured using retort technology and have a shelf life of over 6 months. Besides these products, other products are also in line. The two companies encourage vegetarianism and so this tie-up will be advantageous for people who prefer vegetarian foods. The Gulf countries provide the largest market for these products outside Kerala where consumers are willing to pay a little extra for them. Brahmins also have dealers for their products in the US, Europe, and Australia.
Tata Trusts and Mars, Incorporated sign MoU for Agriculture and Food Safety
Tata Trusts and Mars, Incorporated have joined hands in order to develop agriculture in India. They intend to develop tools that would increase crop productivity, farm income, and sustainability of certain commodities. Besides agriculture one of the major aims is to address the problem of mass nutrition. They will jointly conduct research on nutritional guidelines that will help combat anemia and other kinds of malnutrition which are of particular concern to children in India. Mars is already a Global leader in nutritive foods and sustainable agriculture and the philanthropic Tata Trusts comprising of Sir Dorabji Tata Trust, Sir Ratan Tata Trust, and Navajbhai Ratan Tata Trust works towards helping Indian communities.
The signed MoU also states that the two partners will work together on food safety. Here the main concern will be to reduce Aflatoxin contamination in India’s food supply chain. Aflatoxin is a naturally occurring, the poisonous chemical produced by certain moulds and is one of the critical food safety issues in India. Mars has the necessary expertise in Aflatoxin contamination and they will also be using their Global Food Safety Center in China to conduct future research in this area. Mars, Incorporated is a US-based private, family-owned business that owns brands like M&M’S, Pedigree, Doublemint and Uncle Ben.
Product approval for foods with ‘safe’ ingredients may not be needed
The FSSAI may remove the need for product approvals if the ingredients used in these products have clearance or are deemed safe. The FSSAI’s proposed regulation may require product approval only if a new ingredient or additive is introduced. This is the globally accepted norm and if it becomes operational then it will come as a big relief to the food processing industry. The FSSAI is working on a new product approval system as the advisory system has been quashed by the Supreme Court as it was deemed to have no legal standing. The FSSAI had outlined the product approval system through an advisory in the May 2013 which was being enacted as a regulation. Also, the FSSAI has particularly come in for some criticism from the food processing ministry after the nationwide ban of Nestle’s Maggi noodles.
While the FSSAI discontinued the product approval process after the court’s ruling, it uploaded a circular on its website on August 26, which said the product approval process will be brought back as a regulation. Now the FSSAI is reviewing the entire product approval system rather than just the regularisation of the advisories. The food regulator has uploaded a list of permitted food additives and food items in which they can be used and the recommended maximum level. The FSSAI say that they are making all endeavors to expedite the regulations governing the products in Section 22 of the FSS Act, 2006.
Archana says
Dear FSH Team, Please suggest the FSSAI panel to make a mandatory system of testing the water used for processing in each and every industry. As our fresh water itself is having high content of heavy metals due to parallel sewage lines, excess use of fertilizers and untreated water left as such in fresh water.
Dr. Saurabh Arora says
Dear Archana, It is already a mandatory provision and water reports are required at least every 6 months.