High Court relief for Tata Starbucks as release of syrups get nod

Tuesday, 13 May 2014 - 6:35am IST | Agency: DNA

In a relief to Tata Starbucks Company, the Bombay high court directed the customs department at Nhava Sheva port to release a consignment of flavoured syrups used by the coffee chain to prepare its beverages. 

Imported from USA, the consignment was stopped at the port after the Food Safety and Standards Authority of India refused to grant a No Objection Certificate (NOC).

In its order, a division bench of justices VM Kanade and AK Menon, allowed the company to take the consignment which has already arrived and is kept at the port. "In our view, instead of complying with the provisions of the Act and Rules and Regulations framed thereunder, they have acted in an arbitrary and capricious manner and detained the goods of the petitioner (Starbucks)."

Starbucks is a joint venture company of Tata Global Beverages Limited and Emerald City CV, which is an affiliate of Starbucks Corporation, USA. The company operates Starbucks Cafes in which speciality coffees, coffee beverages and other items are sold in India. Around 43 such cafes are in operation all over the country.

The consignment was stopped at the port in February after the authority claimed that the flavoured syrups did not meet the requirements laid down under the Food Safety and Standards (Food Product Standards and Food Additives) Regulations, 2011.

Appearing for the company, senior counsel Iqbal Chagla argued that the syrups do not contain 65 per cent of soluble solids and thus is a proprietary food (a food that has not been standardised under these regulations) under the category, and since it is used as an additive in flavoured beverages it is not sold to the consumers directly. Thus, the regulations would not apply to the product.

It was also argued that the company has been importing these products since July 2012 and they have been cleared for almost two years. After February 2014, all the consignments have been detained at the port.

Appearing for the authority, advocate Mohammed Pracha argued: "The regulations are formed to avoid dumping of sub-standard goods into India and thus causing a health hazard to the public at large."

The court, however, observed, "It is not stated by the respondents that these products are unsafe for human consumption. It is also an admitted position that in respect of number of proprietary foods, no standard has yet been fixed by them."

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European Union revokes Indian poultry meat import ban after five years

Saturday, May 17, 2014 08:00 IST 
Libin Chacko Kurian, Mumbai

The European Union (EU) recently lifted the ban on Indian poultry meat imports to its member countries. The ban was imposed in 2009, owing to concerns about bird flu. However, the former has urged Indian exporters to adhere to stringent quality checks, and implement the amended model health certificate that would be issued by the Export Inspection Council of India for the export of poultry meat products.

Meat products, treated stomach, bladders and intestines prepared from the fresh meat of domestic poultry, including that of farmed and wild game birds, are exempted from the ban, with conditions. Since the import of poultry products from India commenced in 1997, the products have been accepted in the European markets, as they are not only of a superior quality, but also reasonably-priced.

In 2012-13, India exported 5,77,864.24 million tonne poultry products (worth approximately Rs 494.94 crore) overall. For the Indian poultry industry, it was an opportunity, as the European market for poultry and poultry products is huge. But exporters from India opined that the EU’s quality specifications are very stringent, and hence, exports to the EU member nations may not be very profitable.

Moreover, the commerce ministry and the Agricultural and Processed Food Products Export Development Authority (APEDA) have warned Indian exporters to be careful about consignments to Europe. Nagpal Chirkutrao Lohakare, assistant general manager, APEDA, said, “EU banned Indian poultry meat in 2009, due to the spread of the bird flu. But we succeeded in preventing the epidemic from spreading.”

“India has a great history of exploiting poultry products and meat to European countries. We would be able to continue exporting poultry meat, as the impediments have been removed. The European nations are a good destination for our poultry products,” he added. 

Sunil Kumar, the authority’s general manager, said, “A transition period upto September 30, 2014 has been given for consignments accompanied by the existing health certificate, provided that the certificate was signed before July 30, 2014. Exporters are advised to comply with in respect of exports of poultry meat and products to EU.”

An official of the commerce ministry stated on the condition of anonymity that the EU’s changes in policy reeked of international politics. “The ban on Indian vegetables and fruit, such as mangoes, was also a part of this plan. Earlier, India expressed its concerns about insects found in chocolate imported from EU. The ban was termed premature and involved many calculated decisions,” he added. 

“Even the recent revoking of the ban on poultry meat came with a number of restrictions concerning quality, which were not feasible for Indian exporters or the government. India was severely hit by the unwanted ban,” the official said. 

In its decision notice, EU said, “The exporting counry must ensure credible inspection and controls throughout the production chain and all the relevant aspects of hygiene, animal health, animal welfare and public health. The Border Inspection Posts (BIP) of all European nations would check the items imported.”

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Booming bottled water market still has space for local players

By RJ Whitehead, 08-May-2014

Rising awareness of safety and hygiene following incidents of waterborne diseases in major cities across India has seen the consumption of packaged bottled water in India grow five fold since the late ‘Nineties. 

India’s bottled water industry witnessed a boom in the late 1990s, soon after Bisleri launched its packaged drinking water in the country. Today, Indians are consuming more than 20 litres of bottled water per head each year, compared to just 4-5 litres 15 years ago, research by ValueNotes has noted.

This significant growth was fuelled by a surge in advertising to give the message that “bottled water is pure and healthy”. Today, alongside greater health awareness, the poor quality of tap water and the ease of availability of bottled water, consumption of bottled water is on the increase.

Speedy growth

According to the study, the total Indian market for packaged water was valued at Rs60bn (US$1bn) for 2013 financial year, of which the top five players accounted for 67% of market share. The market is now expected to grow annually at a rate of 22% to reach Rs160bn (US$2.7b) by 2018.

Packaged drinking water, which holds about 85% of the market, is also witnessing strong growth due to other factors, including changes in lifestyle and an increase in foreign tourist arrivals. 

Natural mineral water, on the other hand, which falls under the premium water segment and is primarily consumed by urban residents owing to its high cost, will witness growth that will be restricted to consumers in cities.

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