Indian schools to ban junk food in 2013

By Ankush Chibber, 30-Aug-2012

Junk food will be banned from sale in and around Indian schools after India’s food agency indicated it would follow guidance from a local court to restrict their availability.

In a reply to the Delhi High Court, the Food Safety and Standards Authority of India (FSSAI) said it had heeded the court’s direction to formulate the standards on quality and safe food in schools.The FSSAI has appointed AC Nielsen to formulate the standards after inviting proposals from various expert agencies that do similar work.In January, the same court gave the FSSAI a period of six months to frame standards on the sale of junk food and aerated drinks in and around educational institutions in the country.

New guidelines by early next year

The new guidelines will be completed by Mar 22 next year, the date the court has set for another hearing on the Public Interest Litigation (PIL) under which a non-governmental organisation (NGO), the Uday Foundation, sought a direction banning sale of junk food and aerated drinks in and around schools

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Biscuit makers to hike prices by 10 to 20%; Rise in raw material costs

Wednesday, August 29, 2012 08:00 IST 
Akshay Kalbag, Mumbai

After bread, the price of biscuits, another staple food for the common man, is set to experience a steep hike - 10 to 20 per cent.

The reason for the hike is the same as in case of bread - unprecedented rise in prices of raw materials used to make biscuits.

This was informed by K P Mohandas, secretary-general, Indian Biscuit Manufacturers' Association (IBMA), as among the key challenges the biscuits sector was facing in the country, while speaking to FnB News over telephone.

In fact, according to Mohandas, smaller players in the industry not only had to deal with raw material price hikes but suffered even more as they were discriminated against by the respective state governments, which levied 13.5-14 per cent value-added tax (VAT) on products manufactured by them. 

As a way out, Mohandas suggested, "We would like them to reduce it to five per cent so that it is on par with edibles that aren't consumed by the commoner."

He added, "Three or four years ago (i.e. in 2008-2009), excise duty - known as Central Value-Added Tax (CENVAT) - was applicable to all biscuits, irrespective of their maximum retail price (MRP)."

"Now, biscuits whose MRP exceeds Rs 100/kg are subject to eight per cent CENVAT, and that is what we have urged the government to abolish. To the inexpensive ones, CENVAT does not apply," he explained.

Even then, "Everybody is affected by the price hike (which dates back four years), but bigger biscuit makers have the financial muscle to cope with it," he said.

As for the rising input costs, Mohandas observed, "The price of wheat flour, which had risen by 15 per cent in August 2011, had skyrocketed to approximately 30 per cent in August this year. And sugar prices have risen by 22 per cent this year, which are higher than the 18 per cent hike during the corresponding period last year."

He continued, "Vegetable oil prices, which rose by 14 per cent last year, have registered a 17 per cent increase this year; those of milk or skimmed milk powder have risen from 11 per cent to 16 per cent, and there has been a 10 per cent increase in the prices of packaging material and laminates are up by one per cent."

Incidentally, these figures are for north India only. The percentage of hikes in other parts of the country (namely the east, north-east, south and west) is higher. The reason for this is because the costs incurred in transporting raw material to these regions are added to the price of the raw material.

Not only that, a further increase is expected in the prices because of the low agricultural output, which in turn is a result of the drought-like situation across the country. The costs of electricity, fuel and transportation have also escalated in recent times. The latter is because of the periodic hikes in the prices of petrol and diesel.

While that is the scenario with regard to input costs, IBMA points out, biscuits are hygienic snacks consumed all over India, irrespective of the strata one belongs to, and a staple for the common man in both rural and urban areas. Further, biscuit makers operate on thin margins, because they are price-sensitive and the market is highly competitive. It is for these reasons that the body wants the Central government and all the ministries concerned to look into the issue and take urgent measures to salvage the situation. 

Mohandas states, "As the apex forum for the biscuit industry, IBMA made representations to prime minister Manmohan Singh, finance minister P Chidambaram, agriculture and food industries minister Sharad Pawar, food and public distribution minister K V Thomas and the secretaries of the ministries concerned to stop the export of wheat and sugar with immediate effect."

"We want to ensure that there is adequate availability of the raw material here, so that biscuit manufacturers - bulk consumers of wheat - can participate in the Food Corporation of India's (FCI) Open Sales Scheme. In fact, FCI should increase the quota of wheat for the open market as well," he said

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Now carbonated lassi for Indians

By Ankush Chibber, 23-Aug-2012

Cola makers in India might have a battle on their hands if a recent breakthrough in making a carbonated version of lassi, a traditional Indian yoghurt-based drink, is commercialized.

A glass of lassi - could soon be carbonated...The breakthrough has come via scientists at the National Dairy Research Institute (NDRI), who have discovered a bacteria strain, Leuconostoc Ln 27, which will be used to manufacture carbonated sweet lassi.

A spokesperson for the research institute confirmed to FoodNavigator-Asia that the scientists have been able to use the strain in the preparation of the carbonated lassi, for which they have filed a patent.

According to him, since Indian laws do not allow patenting of organisms, the beverage itself will be patented. The drink would be healthier than regular lassi as well, being 35% less in calories and 65% lower in sugar content.

“The drink will not have any artificial sweetener either. Ln 27 releases a very high level of natural sweetener, mannitol, when it reacts with sugar in curd.  What we get is a sweet mixture with high value mannitol that preserves the sweetness, and a low sugar content,” he said.

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India raises concerns over soda carcinogens

By Ankush Chibber, 22-Aug-2012

Following moves in the US, India will investigate whether carbonated drinks should bear cancer warnings.

The Food Safety and Standards Authority of India (FSSAI) has asked its scientific panel to study the carcinogen content of carbonated beverages sold in India.

The state of California recently added ammonia sulfite or 4-MI – a coloring additive commonly used in fizzy drinks to its list of cancer-causing chemicals – and requiring on-can warnings of levels passed a threshold.“This is a recent warning. The matter has already been referred to the scientific panel of the FSSAI. If the panel finds it necessary, we will take action in this regard,” said K. Chandramouli, chairperson at the FSSAI.The colouring ingredient was added by California to its carcinogens list after a study showed the chemical is linked to cancer in mice and rats.

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FSSAI seeks immediate compliance to guidelines on imported food samples

Thursday, August 23, 2012 08:00 IST 
Nandita Vijay, Bengaluru

The Food Safety & Standards Authority of India (FSSAI) has issued guidelines regarding the harmonisation of laboratory parameters for analysis of imported food samples.

 These have been finalised in consultation with the Central Food Technological Research Institute (CFTRI), Mysore. Following this development, FSSAI, in a communiqué via F. No. 06/QAS/2012 import issues/FSSAI to all referral and authorised labs, has stated that the order should come into effect immediately.

Imported food will now need clearance based on these guidelines, according to Dr Dhir Singh, director, QA&S, FSSAI, in the communiqué. 
(Download the guidlines )  

As per the FSSAI list, there are 37 categories of imported food with methods for standardisation. The details on the limits of contents and methods of analysis followed have been provided. The list of products covers processed baby food milk powder including cheese. Fat oils and fats covering crude palm oils, crude sunflower oil, rapeseed or mustard oil, crude degummed soyabean oil, RBD palmoline, and olive oil.

Further, all fresh fruits, raw sugar, poppy seeds, raisins, salt and spices inclusive of dry fruits’ nuts / betel nuts / curry powder / masala powder, saffron, split cassia, cloves mace, garlic powder, cereals and pulses, red and green lentils, fish and fish products, as also meat covering frozen, canned, and chopped products are covered. 

There is also a category for additives like ammonium bicarbonate, monosodium glutamate, phosphoric acid, and enzymes. In the thermally processed fruits and vegetable products there are tomato paste, juices, squashes, besides, a sweets and confectionary category, which includes chewing gum.   

Bakery products, fruit and vegetable products like dates, proprietary foods, flavouring substances, macaroni products, sweetening agents, alcoholic and non-alcoholic beverages, dehydrated fruit and vegetable products, processed vegetables like olives in brine, flavouring agents, cereals and cereal-based products, culinary pastes and other sauces, carbonated and sweetened beverages and seasoning powders also form a key part of the list. 

The FSS regulations dealing with microbiological parameters of milk and milk products mention the microbiological limits at production stage by the industry. But as per the regulations, no defined limits have been given for microbiological analysis of milk and milk products, and the parameters and limits for cheese samples have been those followed under the PFA Act. 

The methods of analysis are based on directorate-general of health services, ministry of health & family welfare, and Association of Official Analytical Chemists. The guidelines are also in consultation with the norms of Bureau of Indian Standards and Alpha methods are based on American Public Health Association. 

According to a section of the food industry represented by MTR Foods, ITC Foods, and Kohinoor Foods, the guidelines for imported products will put a check on the quality. 

With the profusion of food retailers vending a variety of imported foods, the norms will now keep tabs on the contents, according to officials from the Karnataka Food Safety Commissioner’s office. 

Bombay High Court transfers anti-FSSR petition; MMMA to move apex court

Tuesday, August 21, 2012 08:00 IST 
Akshay Kalbag, Mumbai

Angered by the Bombay High Court's transfer of the petition filed against the Union of India and the state of Maharashtra by about half-a-dozen trade bodies engaged in the production, processing and sale of eatables without a verdict, and the lame excuses offered by top-ranking legal officials in New Delhi, a trade delegation comprising office-bearers of the Mumbai Mewa-Masala Merchants' Association (MMMA) will soon move the Supreme Court and the concerned ministries to inform them about the controversial Sections of the Food Safety and Standards Regulations (FSSR), 2011.

In a telephonic conversation with FnB News, Lakhubhai, secretary, MMMA, confirmed that there were technical and legal hurdles in obtaining product approval certificates. He added, "We will comply with the Act and obtain licences, but we all feel that the regulations are not only impractical to adhere to, but biased towards food business operators (FBOs) who can use their clout to bend the law as well.

 Another worrisome aspect of these regulations is the increase in corrupt practices that food safety officers (FSOs) indulge in. Inspector Raj is likely to come back, and the impact will be worse." Product approval certificates are mandatory for obtaining licences under FSSR. 

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Entry of players from other businesses causing cashew prices to drop

Saturday, August 18, 2012 08:00 IST 
Akshay Kalbag, Mumbai

Though India is the world’s second-largest cashew nut producer, this year, for the past few months, only two to three containers of the dry fruit have left the Indian ports. Compared to this, India's cashew nut exports were worth over Rs 40 billion in 2011 and some 300 containers were exported.

And the country has another reason to be concerned – there has also been a sharp decline in the yield over the past twelve months.

According to Anu Prasad, general manager, The Kailas Cashew Exports, Kollam, Kerala, the main reason for the drastic drop in cashew nut prices is the entry of players who were not engaged in the cashew business, in the fray, “merely because they thought it was profitable.”

He also said, “Bigger competitors in the cashew supply chain have tried to monopolise the market, and if a company starts dictating terms, not only does it adversely affect the price and demand in the local market, but also our credibility in the international market.”

“The United States, for instance, does not trust Indian cashew exports, and prefers to import from Vietnam,” Prasad stated, categorically. Vietnam, incidentally, is the market leader in the production of the nut, and Indonesia, Brazil and a few African countries round off the top ten.

“We had to import raw cashew nut (RCN) from Africa at a much higher price per ton, and to avoid a loss, the sellers were about to inflate prices, but could not do so because the market crashed at that point,” he said.

Like everything else, cashew nut exports were also not spared by the weakening of the rupee. While there was a sharp drop in the same, there was a massive hike in the unit value. Even in the local market, Prasad said retailers are selling it in the range of Rs 500-Rs 600 per kg.

All this is bound to intensify our labour turnover issues at every level as well. However, Prasad said sales will hopefully pick up in the next couple of months, which is a festive period across India. 

Food prices skyrocket as India's agri sector faces drought, low output

Friday, August 17, 2012 08:00 IST 
Akshay Kalbag, Mumbai

With the Indian Meteorological Department officially admitting to a drought-like situation recently, agriculture, which primarily relies on rains for normal output, and all allied sectors such as food processing, are gearing up for a fresh round of hike in prices of raw materials and its cascading effect - spike in prices of the final product - processed food.

It is estimated the prices of raw materials have gone up by 20-30 per cent in India (and roughly the same overseas). As a result, a 10 per cent increase in the prices of the final products appears to be par for the course for now. 

But experts from the food processing industry say that eventually the final product could cost almost as much as, if not more than, the raw material because of factors beyond the manufacturers' control. 

Industryspeak
M A Tejani, managing director, Gits Foods Products Pvt Ltd, Pune, and president, All India Food Processors Association (AIFPA), explains, “First of all, it would be incorrect to refer to the current climatic condition as drought. We are halfway through the monsoon, and the possibility of a contrary situation cannot be ruled out. Of course, it will not make any sense for farmers to sow new seeds in anticipation of a delayed end to it and heavy rains.” 

“Rainfall has reduced by about 20-25 per cent of what it was at the same time last year. As a result of that, the quantity of perishables has reduced by about 30-35 per cent this Kharif season,” he said

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Two stay orders challenging FSSA's Regulation 31(7) vacated in Panruti

Saturday, August 04, 2012 08:00 IST 
Akshay Kalbag, Mumbai


The Madras High Court has vacated stay orders against two petitions. One was filed by the Panruti Chamber of Commerce and Industry in Panruti, Tamil Nadu, and another by a private firm.


Both of these challenged the Food Safety and Standards Authority of India (FSSAI) regulations, particularly Regulation 31(7).] These have now gone for appeal to the Divisional Bench.

R Kaleeswaran, honorary secretary, Karaikudi Bakery Owners' Association, told FnB News via telephone, "There has been an interim stay on all cases. Tamil Nadu's food safety commissioner had specified counter grounds to include the FSSAI as one of the respondents." 

"All the cases before the Madurai Divisional Bench have been transferred to the Madras High Court. There has been no counter-objection on the cases on which interim stays have been obtained in Madurai yet," he said. 

"But there are 11 interim stay orders in the Chennai High Court, and four in the Madurai High Court. These challenge Sections 3; 3(1); 3(1)(a); 3(1)(z)(a); 33; 35; 37; 50-65 (which pertain to penalties) and 77 of the Food Safety and Standards Act, 2006," Kaleeswaran informed, adding that FSSAI has violated Section 14 of the Indian Constitution. 

McDonald's, Burger King, KFC accused of violating Chilean law banning toys in kids' meals.

Friday, August 03, 2012 08:00 IST 

A new law in Chile aims to take some of the fun out of fast food by forcing McDonald's, Burger King, KFC and other restaurants to stop including toys and other goodies with children's meals.

The companies are still using toys to draw in Chile's increasingly chubby children more than a month after the ban took effect on June 7, Senator Giudo Girardi said as he filed a formal complaint on Wednesday with the health ministry.

"These businesses know that this food damages the health of children and they know that the law is in effect. They're using fraudulent and abusive means," Girardi said.

The complaint also targets makers of cereal, popsicles and other products that attract children with toys, crayons or stickers, as well as markets that sell these foods.

If Chile's health ministry upholds his allegations, the companies could be forced to remove the goodies or face nominal fines.

The Associated Press left messages seeking reactions from spokesmen for McDonald's Corp, Burger King Worldwide Inc and KFC's owner, Yum Brands Inc.

Girardi said he wrote the law because nearly a quarter of Chile's six-year-olds now suffer from childhood obesity — and that its passage came despite seven years of industry lobbying.

"These corporations threatened that if the law was approved there would be no more money for children's foundations, the sick, or athletes, but we were finally able to create a great alliance between the civil society and scientists to defeat these lobbyists," the senator said.

McDonald's Happy Meals — marketed as "Cajitas Felices" in Spanish — have been a major draw for frur-year-old Florencia Moraga, who was playing with her Ice Age movie toys on Wednesday night with her father Ricardo at a restaurant in downtown Santiago.

"I loooove McDonald's because of the toys in the Happy Meal," Florencia said.

Moraga said he takes his daughter every two weeks to the fastfood chain, but would not come back if she becomes overweight.

"She's healthy, skinny, but a kid with obesity was just sitting next to us. If I were his father I wouldn't bring him here," he said.

The Washington-based Centre for Science in the Public Interest sued McDonalds over using toys to market its food to children in 2010, but the claim was dismissed in April. San Francisco banned restaurants last year from providing toys along with meals high in fat, salt, and sugar, but McDonalds has continued providing toys there by charging consumers a small fee for the goodies. A similar measure was defeated in New York.

The experience of both US cities helped Girardi craft his "junk food law," his spokeswoman, Carol Bortnick, said.

Sara Deon, an activist with Corporate Accountability International, campaigned for the measures in San Francisco and New York, and praised Chile for passing its law. But she said, “Chilean public servants should have no illusions about implementing it.”

"Judging from McDonald's response to similar health laws in the US we'd expect the corporation to respond as it long has: it will fight tooth and nail to continue marketing to children," she said. "It will take every opportunity to blame parents for today's health epidemic. Marketing to kids is core to McDonald's brand and to its bottom line."

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