July 1, 2014 new deadline for FSSAI's logos, food registration numbers

Thursday, November 14, 2013 08:00 IST 
Abhitash Singh, Mumbai

 As the December 7, 2013 deadline for complying with the norms to bear the logo and registration or license numbers – made mandatory by the Food Safety and Standard Authority of India (FSSAI) – is approaching, the country's apex food regulator has extended the deadline to comply with the provisions for seven months. July 1, 2014 is the new deadline to become compliant with the provisions.

According to Mahesh Zagade, food commissioner, Food and Drug Administration (FDA) Maharashtra, the state would be the first in India to comply with the provisions before the set deadline. He said, “FSSAI has set very strict guidelines for food manufacturers. The notifications, which were issued in June 2013, state that every food business operator (FBO) in the country must obtain a 14-digit registration or licence number,which must be printed on food packages.”

“The move by the food regulator would not only help consumers, but also food safety officers (FSOs) to know whether the product has undergone quality checks and to bring down the instances of sub-standard products, reduce the number of bogus manufacturers and enhance accountability for complying with the provisions. FBOs from all over Maharashtra should complete their registration and licensing and printing their registration and license numbers on food packages,” Zagade added.

Zagade added, “Our FSOs are always ready to educate the FBOs about the importance of registration and licensing. They have also taken the initiative to call at least 200 FBOs to the FDA office or go to their premises to train them about the importance of having registrations and licenses and complying with the new guidelines to provide quality foods to the consumers. Since Maharashtra is leading in registration and licensing, FBOs of the state will also be the first to comply with the new deadline.”

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Lactalis "nears deal for dairy firm Tirumala"

By Raghavendra Verma | 15 November 2013

Lactalis is said to be close to securing a deal to buy a majority stake in Indian dairy business Tirumala Milk Products.

The French dairy giant is near to an agreement to buy 70% of Tirumala, India's Economic Times has reported.

Tirumala is controlled by family members but three years ago secured investment from private-equity group Carlyle, which now has a 20% stake. Earlier this month, Tirumala said its owners were in talks with Lactalis' domestic rival Danone. 

Tirumala is one of the largest dairy processors in southern India. The Hyderabad-based company processes and markets products including milk, butter, paneer (Indian cheese) and ice cream. It turned over INR14.2bn (US$223m) in 2012-13, 21% higher than in the previous year.

Satish Kulkarni, chairman of the Indian Dairy Association's south zone in Bangalore, told just-food Lactalis' purported strategy to invest in Tirumala was sound.

Kulkarni noted the Indian dairy sector was a major growth area, with milk production increasing annually by about 4%, while internationally the growth rate is 1.2% to 1.3%. Furthermore, he said India also produces milk at a competitive price and is therefore a potential stable source of raw material for the multinationals. "These companies can also use it as a base for exporting produce to other countries."

Lactalis could not be reached for comment at the time of writing.

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FSSAI labeling issue hits packaged food imports hard

Sounak Mitra & Viveat Susan Pinto  |  New Delhi/ Mumbai  

November 5, 2013

Categories across the board from chocolate to cheese, olive oil to biscuits have been impacted as a result of stand off between importers, food safety regulator

It is not just your favourite imported chocolate that went missing from shop shelves this festive season. Crispies such as Pringles, gourmet cheese, olive oil, biscuits, noodles, pasta, jams, honey, oats, sauces... you name it... were hardly to be found this Diwali as the Food Safety and Standards Authority of India (FSSAI), the country's apex regulator, came down heavily on importers overlabeling issues.

Government sources indicate that packaged foods worth over Rs 750-1,000 crore were stuck at various ports and airports across the country as the food safety regulator insisted that importers desist from using stickers on food products to indicate crucial details such as the product type, price and nutritional value. 

What's worse? The stand-off, on for the last three months, shows no signs of abating, as FSSAI refuses to budge from its position. “FSSAI’s move is in line with the law, and all companies – be it Indian or foreign – should comply with it. Stickers are temporary measures. When our norms are clearly laid out, companies must print them on the packs that are to be shipped to India,” an FSSAI official when contacted said. He declined to be quoted given the sensitivity of the matter.

But importers, irked by the lacklustre Diwali sales, say that if the issue is not sorted out soon enough could impact business during Christmas and New Year too. Almost 50-55% of packaged food imports in India happen during the festive season, since it is utilised mainly for gifting purposes besides consumption.  

Amit Lohani, convenor, Forum of Indian Food Importers, a body of food importers in the country, says FIFI has already made numerous representations to FSSAI in a bid to resolve the issue. "On October 31, FSSAI came out with a notification agreeing to one of our demands, which is to allow the food safety logo on a sticker. This is with immediate effect," Lohani, who imports confectionary, snacks and coffee among other products, said. 

Lohani points to other issues worrying importers. "Such as 100% sampling of containers coming into the country," he says. "Earlier sampling was to the extent of 5-10% not more. This was to give an idea of what the consignment was made up of. With 100% sampling of each and every container now, this is obviously leading to a huge delay. Containers are hardly getting cleared," says Lohani.

Slower product approvals are another issue bogging importers for a while now. Lohani says there are almost 11,000 applications pending approval from the FSSAI, with the body clearing just about 8-10 applications a day. "At this rate, the regulator will take about two to three years to clear the backlog," he says.

However, there are voices that speak in favour of the food safety regulator's recent moves. Says Saloni Nangia, president, Technopak Advisors; "The FSSAI's move to enforce labeling standards is a step in the right direction. India for long has been a dumping ground for products that are well past their sell-by-date. At least now there will be some accountability. Product quality is compromised with the use of stickers. FSSAI is attempting to stop that."

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Hearing of FSSAI chairman's appointment PIL scheduled for March 5, '14

Saturday, November 09, 2013 08:00 IST 
Ashwani Maindola, New Delhi

The upcoming hearing of the public interest litigation (PIL) challenging the recruitment and appointment of the chairperson of the Food Safety and Standards Authority of India (FSSAI) is 

scheduled to take place on March 5, 2014.

It was filed in the Delhi High Court by Lok Jagriti, a Ghaziabad-based non-governmental organisation (NGO) on May 29, 2013. The PIL stated that K Chandramouli, FSSAI's incumbent chief, did not fulfill the eligibility criteria for the post as desired under Section 5 of the Food Safety and Standards (FSS) Act, 2006.

During the first hearing on August 14, 2013, the court had asked for a reply from the respondents. This was filed on October 30, 2013. “The respondents denied all the charges made in the PIL and said that the appointment was done as per the rules and norms prescribed in the Act,” said Govindjee, the petitioner's counsel.

He said, “The respondents added that the FSS Act is in a nascent stage, and they are taking help from Codex regulations in formulating the regulations in India, which was countered by the petitioner by saying that there were some norms in Codex, which cannot be applied in India.”

The NGO also mentioned that while searching for the chairperson of the apex food authority, many people with scientific background were available but ignored, and only a person with administrative background was chosen.

It also stated that Chandramouli also acted as CEO of the authority, which is a case of conflict of interest as a person cannot hold two positions simultaneously in the authority under the rules prescribed in FSS Act, and it is only now the regular CEO was appointed.

The petitioner also informed that the next date of hearing was too far, and they would move an application for the early hearing of the case.

It is pertinent to mention here that under Section 5 (3) of FSS Act, the chairperson would be appointed by the central government from amongst the persons of eminence in the field of food science or from amongst the persons from the administration who have been associated with the subject, and are either holding or have held a position not below the rank of secretary to the government of India

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Happy Diwali

FOODKonnect wishes everybody a very 

Happy Diwali and a prosperous year ahead. 

Frustrated Wal-Mart lays consumer ambitions to rest with JV break-up

By RJ Whitehead,10-Oct-2013

Wal-Mart appears to have lost patience with its fraught ambition to enter Indian consumer retail, after deciding to buy out its local partner, Bharti Enterprises, from their six-year-old joint-venture.

The agreement is subject to finalization of definitive agreements and receipt of the necessary regulatory approvals.The two companies say they have reached an agreement to independently own and operate separate business formats in India and discontinue their franchise agreement in the retail business.

American giant staying in cash-and-carry

Once everything is in order, Wal-Mart will acquire Bharti’s stake in Bharti-Walmart, giving the world’s biggest retailer 100% ownership of all 20 stores in its Best Price Modern Wholesale cash and carry business.

Wal-mart said it plans to continue to grow this business while working with the government and interested stakeholders to create more preferable conditions for foreign direct investment in multi-brand retail.

Reading between the lines, the American giant has pretty much put its consumer retail plans on ice in the face of its high-profile political struggles as politicians have held sway on the thorny issue of foreign direct investment in multi-brand retail.

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Mrs Bector’s investor 'looking to divest stake in biscuits business'

02-Oct-2013

Rumours persist that one of India’s leading bakery and condiments companies is looking to sell off the controlling stake in its biscuits business to private equity investors.

Quoting “people in the know”, Business Standard reported that Motilal Oswal Private Equity is in talks with PE companies to sell its 23% share in the biscuits wing of Mrs Bector’s Foods, which contributes Rs450cr to Rs500cr (US$72m-80m) to the wider company’s Rs600cr (US$96m) annual revenue.

The sale can take place following a de-merger of the business’s operating units. Mrs Bector’s sells products under the brand name Cremica and supplies buns, liquid condiments, batter and breading to companies like McDonald’s, Hindustan Unilever, Big Bazaar, Air India and Domino’s.

MOPE retained its share in the biscuits business in 2010 when the Mrs Bector’s was split equally by founder Rajni Bector between his three sons.

The private equity company had earlier made its investment of Rs70cr (US$11.2m) in the North Indian company in 2010 by buying out the stake of Jade Garden, the Mauritius-based unit of US banking giant Goldman Sachs, which had invested in 2007, and is expected to make an exit of three times its investment.

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