Beverages & Food Processing Times

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much-awaited The five-year agriculture road map from the poorest of the poor, will look agriculture road covers 2012-17 with an investment of after the trees and in return get the map of Bihar. Rs 1.52 lakh crore. It aims at raising benefits of the tree produce.“There is a need The road map also stressed inter-agri-growth to a minimum of 7 percent for another Green linking of rivers and irrigation per year, said Nitish Kumar.Revolution in the Nitish Kumar said Bihar would prepare schemes. It has fixed a target for cold country, and the another agriculture road map for the storage capacity. It is Mukherjee's first eastern parts of next five years. “We hope that private visit to the state after becoming the the country investors will invest in the agriculture president.

Mukherjee will also attend the including Bihar sector in the state.”The road map is the first of its kind in Darbhanga-based Lalit Narayan will play a vital the country. It focuses on food Mithila University's fourth role in it,” he said processing, food preservation, fisheries convocation.in Patna

In his speech, Nitish Kumar demanded Mukherjee, who and animal husbandry, the chief that Bihar be given a special category arrived here on a minister said.

According to the road map, 24 crore status. “It is high time Bihar should be two-day visit of trees will be planted in the next five accorded a special category status for Bihar, was years to increase the forest cover of the its development. I request President received by Chief ndia needs another Green state from 9 to 15 percent. Mukherjee to help the people of the Minister Nitish Kumar at the Patna Revolution, said President Pranab 'Vriksha Palaks', who will be selected state in this regard,” he said.airport.Mukherjee after unveiling the I

Pranab Mukherjee says India needs another Green Revolution

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he market for Organic food products total revenue of USD 3.5 billion in 2010 in India is growing at 20-22 per cent and had a CAGR of 16.2 per cent between Ta year, a top official from private 2006-2010, it said.

On India, the report said that the market for sector Yes Bank said."The market for organic foods is growing at organic food including exports is currently an compound annual growth rate (CAGR) valued at Rs 1,000 crore.

The report added that the country produced of 20-22 per cent," Yes Bank's Country around 3.88 million tonnes of certified Head, Food and Agribusiness, Girish organic products, that includes basmati, Aivalli told.

With rising spending power of the growing pulses, tea, coffee, spices and oilseeds.Organic foods industry presently is metro-middle class in the country and increased based, with about 95 per cent of the brands awareness towards chemical free food, existing in top 10 metros like Delhi (NCR), organic and natural products sector will Kolkata, Mumbai, Pune, Chennai, grow significantly in the coming years, he Bengaluru and other tier II cities, it said.added.According to government data, area under Yes Bank also released a report, 'Indian organic farming had risen to 1.08 million Organic Foods Market' at one-day hectares. In addition, 3.40 million hectares conference, Jaivik India, on proliferation of is wild forest harvest collection area.organic and natural products in the Indian The states doing well in organic farming market.are Madhya Pradesh (4.40 lakh hectares), The report said the global organic food and Maharashtra (1.50 lakh hectares) and Orissa beverages market is expected to grow from (95,000 hectares), the data added.USD 57.2 billion in 2010 to USD 104.5 Among crops cotton is the single largest billion by 2015 with a CAGR of 12.8 per crop accounting for nearly 40 per cent of cent.total area followed by rice, pulses, oilseeds Europe contributed to the largest share of and spices. India is the largest organic the organic foods market in 2010 with cotton grower in world, and accounts for 50 revenue of USD 27.8 billion, the report per cent share of total world organic cotton added.

The Asia-Pacific organic food market had a production, it said.

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News 3

remaining states of the country for roduction of vegetables and enhancing production and productivity fruits is on the rise. The P of horticulture crops including fruits production of vegetables and and vegetables. Under these missions, fruits in the country is estimated to be assistance is provided for establishment around 1,506 lakh tonne and 753 lakh of nurseries, seed production for tonne, respectively, during 2011-12. As vegetables, enhancing quality compared to this, the production in the production and productivity of fruits previous year (2010-11) was 1,466 lakh and vegetables through area expansion, tonne and 749 lakh tonne, according to protected cultivation, canopy information provided by minister of management, integrated nutrient and state for agriculture and food

water management, integrated pest management, rejuvenation of senile orchards, mechanization and human resource development.

The agriculture ministry is also implementing market intervention scheme for procurement of various horticultural commodities. The purpose of implementation of such a scheme is to protect the

processing industries.growers from making distress sales in

The government of India has been the event of a bumper crop when there implementing horticulture mission for is glut in the market, causing prices to North East and Himalayan States and fall below economic levels/cost of National Horticulture Mission in the production.

India's organic foods market growing at over 20%

Vegetable, fruit production on the rise

everages & Food Processing Times- -II-2012B Sep

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industry called agro-tourism," said Jagdeesh Holkar underlined the Phadnis also told the farmers how sing raw agricultural produce to Sunil Mankikar, a progressive farmer potential of the business of wines. orange can be used for making high-make high-value consumer U who is a part of the Wine Club and the "There is immense potential in the quality wines.goods can help the Indian chairman of the sanstha. He believes in Indian wine market for fruits other than farmer when it comes to getting the Another winery owner from Nashik, leading by example, so he has been grapes also," he said.right price for it, say several experts. Prabhakar Wagh believed that wine carrying out the activities he advises With health consciousness and sells only if there are good sellers

exposure to Western habits of fine around. "My winery sells around one dining, making wine from fruits is lakh litres of wine annually. Those with emerging as one such profitable the right marketing skills end up selling venture. all their produce," he said.

Nagpur Wine Lovers' Club along with PG Adsule, the director of National Indo-Israel Krushi Vikas Sanstha state Research Centre for Grapes, agreed agriculture department, National saying, "As of today, only 10ml per Research Centre for Citrus, capita consumption of wine is recorded Maharashtra State Horticulture and in India. However, with more state Medicinal Plants Board jointly awareness and more people turning to organized a workshop for farmers healthier alternatives to alcohol, this attending their three-day seminar on may grow up exponentially."agro processing to understand the art

"Indian grapes have been found to and economics of making wine out of

make better quality wines than the ones the fruits they grow. Experts told about

from France," informed Yogesh the example of grape growers from

Bhadane, wine making consultant for Western Maharashtra, whose fortunes

many wineries in India as well as have seen a turnaround after they took

France. "The soil quality here is far their produce to the wine makers,

superior to that in the European turning wine making into a profitable

countries, so the fruit and the wine allied activity.

made out of it are also better. We can the other farmers to take up. To prove this point, Akalpik Prabhune "It is disturbing to see the number of make around 20 types of grape wines

from Pune had brought along wines youngsters flocking to liquor bars. in the country. If more fruits were to be Telling the farmers enthralling tales of made from fruits like pineapples and Wine is a healthier alternative for these turned into wines, they could also help how wine industry turned around the strawberries that he is successfully social drinkers. It also means economic our indigenous wine industry scale new fortunes of grape owners from Nashik marketing since a couple of years. growth for the farmers who set up heights globally," he said.and its nearby villages, chairman of Wine Lovers' Club founder Sharad wineries and partake in the growing Indian Grape Processing Board

Beverages News 4

majors have been bringing in regional have," said Harish Bijoor of Harish Cola India, said, "The Indian market oca-Cola plans to relaunch flavours to broaden their basket of Bijoor Consults, a branding advisory has a lot of growth potential and the RimZim, once a popular masala C offerings to consumers. "Till a few firm. opportunity in the packaged beverage cola brand which it acquired years back, the focus was on the power segment is immense. Rimzim has a from Ramesh Chuahan in the 1990s. The masala soda category is estimated brands which were largely global. distinct Indian taste." India has Last year PepsiCo revived Duke's to be around Rs 500 crore with both

emerged as one of the fastest growing which was discontinued in 2004, and markets for Coca-Cola and its CEO earlier this year Coca-Cola Muhtar Kent, on a recent India visit, reintroduced Citra, a clear lime drink.announced an investment of $5 billion Coca-Cola plans to revive the RimZim till 2020.brand in parts of north India and will Coca-Cola India has already piloted give it a contemporary packaging, Citra and Crush as soft launches in signalling the rising element of very limited retail outlets. "Most of our localization in the portfolios of the two old brands are back in the market. big cola companies. The cola maker RimZim is perhaps the last remaining. had attempted to revive the brand with We will see how they do in the market a strong presence in Maharashtra a and then accordingly take them decade ago, but failed.national," Mukherjee said.In 1994, Chauhan sold his popular and PepsiCo, which acquired Duke & Sons home grown beverage brands, from the Pandole family in 1995, including Thums Up, Gold Spot, reintroduced it in a retro avatar last Limca, Maaza, Citra and RimZim, to year in Mumbai. "We have received a Coca-Cola, out of which Thums Up, great response from consumers and Maaza and Limca were retained by the retailers across Mumbai. With the world's largest cola maker while the addition of this new range of beverages others were junked. RimZim's is being to our vibrant portfolio, we look relaunched in keeping with a brand forward to further address pockets of study conducted by Coca-Cola that These companies were following the PepsiCo and Coca-Cola being the two opportunity and strengthen our regional indicated a strong recall of the brand global line which is rapidly changing big organized players in the space. presence," a PepsiCo India among consumers, a company official now. India is a multi-taste oriented RimZim used to be a popular brand in spokesperson said.said. market where the more localization a the 80s and 90s. Debabrata Mukherjee,

brand does the bigger share it will VP, strategy and innovations at Coca-In the last one year, both the cola

Turning fruits to wine has immense economic potential: Experts

Coca-Cola to relaunch RimZim of '80s

everages & Food Processing Times- -II-2012B Sep

5 everages & Food Processing Times- -II-2012B Sep

6

body's ability to deal with sores and It currently trails seaweed on – only to water – purest liquid on the onsidering some new superfood ulcers. supermarket shelves but the powdered planet. High concentrations of calcium, ingredients for your next Wheatgrass is traditionally served as a C variety is recommended for use from a potassium, magnesium and electrolytes product? We list some of the drink but the powdered varieties are smoothie ingredient to a crisp topping. essentially make it an isotonic sports biggest superfood trends in vogue in becoming more popular for use in Hemp drink in its own container. It must be 2010.

Like seaweed, hemp has been used for smoothies and even guacamole.Hardly a week goes by without an pointed out this is coconut water, not Fresh and juiced wheatgrass is widely medical reasons for centuries and has announcement telling consumers to eat the milk, meaning the benefits are lost used across the world, but so far the been a staple foodstuff in times of a certain food to avoid cancer or heart in your Thai green curry.concept of other wheatgrass-based famine. In China today, you can still Statistics from the US, the home of disease, or live longer. Even statistics products such as smoothies and buy roasted hemp seeds in the cinema, fast-food, show a major decrease in from the US, the home of fast-food, guacamole remain homemade, leaving in the same way you might eat soft drink and fast food sales. Its show a major decrease in soft drink a market open for the food industry. popcorn. benefits are impressive and relatively and fast food sales.

Containing omega 3 and 6, amino acids The food industry is a business like any unknown. Drunk regularly enough it Spirulina and complete protein, hemp seeds and other, and the more nutrients, vitamins reduces urinary problems such as Spirulina algae has been said to contain oil are used by those that have a low and minerals forced into an everyday strangury and polyuria, breaks up some of the highest concentration of product, the better its chances of being

on every office desk come the end of the week. Here we list some of the known, unknown and bizarre products to consider adding to food today to attract the more health-conscious buyer.SeaweedSeaweed has been used in Asian medicine for at least 3,000 years and a recent study by Newcastle University in the UK suggested it could be added to bread, biscuits and yogurt to reduce the fat absorbed by the body.Its nutritional value comes from the nutrients it assimilates from the oceans and the Earth's crust, resulting in it having one of the highest mineral concentrations of any food. It can regulate hormones, improve metabolism and make skin more youthful. It is also rumoured to be good for mental health.Purple Dulse seaweed is among the most popular as it avoids the fishy taste associated with some varieties. Products, such as crackers, sushi nori and dried seaweed are exported around the world by producers such as Chinese company Shantou Jiasheng and Saha Siam in Thailand.Wheatgrass Wheatgrass has been used in homeopathic medicine for some time

nutrients of any food, including fatty acid intake. It is especially kidney stones and kills intestinal now where it is noted for its acquired between 60%-75% vegetable protein. It beneficial to vegetarians and vegans, worms. It is even used to suppress taste. It has high concentrations of is rich in iron, magnesium, carotene and has been proven to be very good vomiting in cases of typhoid and chlorophyll, active enzymes and and B vitamins, especially B-12, which for skin and hair, and can be used as a malaria, and due to this and its vitamins, and is noted for its strong is used in tablet form to combat heart painkiller or to reduce anxiety. hydrating properties, is also touted as a anti-bacterial effect.

The seeds and oil are the most popular disease and improve mental alertness. hangover cure.Health-food enthusiasts claim it A recent study by the Dana Faber (legal) forms of hemp and can be used Most impressively, coconut water has purifies the liver, increases heart Cancer Institute and the Harvard for salad dressings, mayonnaise or just been used to replace plasma in blood function, improves digestion and it is Medical School showed it could be eaten raw, and are currently produced transfusions and was regularly used even heralded by some as being a food used to help fight influenza, mumps, by the likes of GranoVita and during the Second World War instead that can help prevent and cure cancer.and measles and might even inhibit Manitoba. Their full business value, of intravenous fluid.The more nutrients, vitamins and HIV's transition into AIDS. however, is yet to be exploited with minerals forced into an everyday

Vita Coca currently exports a variety of Taken mainly in powder and tablet very few ready-made products product, the better its chances of being coconut water juices across the globe.form, spirulina also acts as an appetite available to buy.popular.Among its more-obscure Cacaosuppressant and is already being given Coconut water touted benefits are increased tolerance This raw chocolate powder, normally Arguably one of the most underrated to undernourished children in India by to radiation, removal of heavy metals seen as a percentage on the front of superfoods, coconut water is the second the World Health Organization (WHO). from the body, and improving the

Good Health: T everages & Food Processing Times- -II-2012B Sep Health Report

Health Report 7

op Superfoodswrapper, contains epicatechin and is eyesight, strengthen legs, benefit the acid, Omega-3. One better thing about antioxidants, green tea is considered a also high in magnesium and other key immune system, and boost sexual Omega-3 as you age is how it has a nourishing drink since it contains nutrients. function and fertility. A 1994 study in positive effect on your brain's health. polyphenols. One added area where Studies by the University of California China also found it was beneficial to You can get Omega-3 in several fish, green tea seems to have a benefit is in and Harvard Medical School found those undergoing treatment for cancer. nuts and seeds, many of which are helping to prevent the development of members of a tribe who drank 40 cups classed as superfoods. tumours. a week reduced their chances of Your immune system may even benefit Some other good superfoods to eat are developing cancer, heart disease, from the properties of superfoods. Your tomatoes as they include something diabetes or suffering a stroke to less immune system is significant in known as Lycopene which is an than 10%. keeping you fit and garlic is an excellent antioxidant. Spinach can be Of course the draw-back to this example of a superfood which will an additional high-quality food since it ingredient is the high calorie count and help. One advantage of consuming includes a lot of iron and folate, and the need for high cacao content. As a garlic could be in how it helps to that is a B vitamin. Lutein, a nutrient product, high-cacao content chocolate reduce your cholesterol. One caution obtained in spinach is important for bars and drinks are becoming more with garlic is that if you suffer with visual healthiness as we grow older.and more popular. Superfoods are positively worth your stomach at all, it will not be Blueberries ingesting as they offer you a lot of advisable to consume it. Green tea can Like so many other foods mentioned vitamins and minerals and health be a choice for you personally, here, blueberries have been used as a boosting vitamins that you could be particularly if the thought of drinking a food source for centuries without their otherwise not take in through your The dried berries are more commonly lot of water, which as previously stated long-term health benefits being known. usual diet. found as a supplement and the juice is is a vital factor in your overall health, A study by the US Department of still a lot more common in Asia than it is something you cannot do. Rich in Agriculture discovered blueberries had is in Europe or the US. Some the highest antioxidant levels in a study companies, such as Alliance Himalayan that compared 40 other fruits and and Optima, have begun to make the vegetables. It has even been proven product available over the internet.they protect against cancer, heart Positives of superfoods with disease, Alzheimer's, arthritis, and You have become what you put inside could even combat aging and short- your body. That is so correct. For term memory loss. The source of their instance, amino acids absorbed on power is anthocyanin, a natural dye account of eating meat can be utilized present in their skin. by our bodies in repairing muscles. Quinoa Consuming the proper foods is Used as long as 5,000 years ago by the consequently crucial. Individuals Incas in South America, quinoa currently are consuming more (pronounced keen-wah) is a gluten-free 'superfoods' as these foods are shown seed, high in protein, magnesium, to enhance your health and give you manganese, copper and fibre. lots of necessary nutrients. But what "Quinoa is a gluten-free seed, high in

exactly are superfoods? Well, there are protein, magnesium, manganese,

a couple of sorts of foods, the good and copper and fibre. “Acting as a prebiotic

also the poor. Bad foods have empty (good bacteria), quinoa has been used

calories which will just make you fat if in preventing and treating

eaten in excess and good foods which artherosderosis, breast cancer, diabetes

have calories which will provide lots of and insulin resistance.

energy including antioxidants to help Quinoa is versatile and can be used in

you decrease illness and disease. dishes ranging from warming winter

Superfoods, as you'll have guessed, soups to refreshing summer salads and

come under high-quality fare.takes less than 15 minutes to cook.

Malnourishment is the ultimate effect Recent marketing strategies have

of the body not getting the right kind of turned to the breakfast market with

sustenance. The precise kind of fat is quinoa flakes being promoted as an

required, proteins for cell restoration alternative to oatmeal. Biona currently

and for energy you will need produces a rye and quinoa bread while

carbohydrates. Certainly, to add to all Suma is one of the most noted

this you cannot live without water. exporters of flaked quinoa.

There are also additional nutrients, for Goji berries example vitamins and minerals which Grown in China, Mongolia and Tibet, you will need but are harder to get into goji berries have been harvested by your diet. A fatty acid that we currently herbalists for 6,000 years. Normally know more about is Omega-3 and it served dried and resembling a red facilitates the fight against the raisin, goji berries, or wolfberries, are destructive type of cholesterol. rich in antioxidants, carotenoids, beta Superfoods are rich in lots of these carotene and zeaxanthin.nutrients and one such food is salmon Traditionally, the berries have been for its protein content with the fatty used to protect the liver, improve

everages & Food Processing Times- -II-2012B Sep

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trading community. The CM offered invitation to members of US-IBC and trade representatives for the Global Inventors' Summit 2012 at Indore on October 28-30.Talking about the investment-friendly climate and infrastructure in Madhya Pradesh, Chouhan said Madhya Pradesh has good road connectivity, water resources, power availability and technically skilled manpower that are most urgently required in industries.Senior director and policy analyst and acting executive vice president of US-India Business Council Diane Farrell, in her concluding remark, observed hief minister Shivraj Singh that such a pro-active approach will Chouhan has said that Madhya further foster trade relationship and Pradesh has fast emerged as Copportunities. It was agreed that investment destination. Automobile Madhya Pradesh will be the venue of engineering, pharmaceutical, IT-forthcoming Indo-Business Trade enabled services, tourism, food Meet. Place and time will be decided processing, textile and renewable later. Prior to attending US-Indo energy sectors offer immense Business Council conference, Chouhan investment opportunities.met senior officials ofInternational Chouhan was addressing a business Finance Corporation (IFC). The IFC conference organized by United States-officials were positive about the initial India Business Council and proposals of Madhya Pradesh. Confederation of Indian Industries at Discussions on investment assistance Washington DC.for water resources, health and road The US-IBC aims at promoting and infrastructure were held.strengthening trade and commerce

relations between Indian and US

programme chair.ome this November and over According to him, the event will thirty agri-business ventures are C address issues related to value chain expected to come under one such that consumers get lower prices, roof, seeking funding avenues as well increasing income level of farmers and as inking growth pacts at Hyderabad.also to be equipped to expand food Ficci along with the Andhra Pradesh production.government will be hosting 'Food 360',

an initiative that aims to void gaps “With FDI, the backdrop of between the lagging support to farmers agribusiness is expected to change. and bring together opportunities. Taking initiatives upto the field level is Select business ventures, under the of concern. This edition there will be business plan competition, would fetch special focus on IT in agriculture, dairy funding from Hyderabad Angels and and urban agriculture,” said JA other participating venture capitalist Chowdhury, co-chairman Ficci AP and and private equity partners. “In the first conference general chair.edition last year, there were about The conclave, to be held on November twenty ventures and this edition, 5 and November 6, would delve on technology startups with focus on issues like technology for raising agriculture will also participate,” said S productivity, mechanising farm Siva Kumar, group head, agribusiness operations, technology in food division of ITC and the Food 360 processing and marketing.

Shri Shivraj Singh Chouhan during the latter's Mumbai visit. He had also met the Chief Minister at Bhopal and expressed interest in investing in the state. MoU for this investment will be signed at the Global Investors' Summit proposed to be held at Indore in October.The Future Group has also inspected potential places in Indore and Bhopal

ndia's leading business giant Future for setting up food processing industry Group will invest Rs. 2500 crore in and related infrastructure. Under Ifood processing industry and infrastructure, cold chain, greenhouse,

infrastructure development in Madhya grading & packing facility and other Pradesh. This will create direct arrangements will be made.employment to 6,400 persons and It is noteworthy that Future Group is a indirect jobs to over 18 thousand. pioneer business house with over Rs. Future Group owner Shri Kishore 10 thousand 564 crore net worth.Biyani had recently met Chief Minister

ountry director of World Bank team onwards.Award presentation ceremony: Uptec's Ono Ruhal said that the team after flagship education centre held its Csincerely considering proposals of 17{+t}{+h} merit award presentation power, irrigation, roads and other ceremony. Similar felicitation ceremonies infrastructure facilities would soon take have already been held at other centres of action for their approval. Expressing his Uptec all over the state. Over 300 approval for development of barren land meritorious students have been honoured and on proposals regarding underground with cash prizes and 'certificate of merit'. water scheme, Ruhal said that the team Speaking on the occasion Bharat Bhasker, would also provide technical assistance for professor, information technology and other developmental schemes of the state. systems, IIM, Lucknow, congratulated the The World Bank team also assured to award winners and apprised them of the provide technical assistance of 10 million fact that India is a prime leader of the world US dollars in the widening of roads and in developing IT professionals par land reforms.

World Heart Day awareness: To spread excellence. He said that IT industry has awareness among public on the occasion of attained a level where the demand for World Heart Day, Sahara Hospital is specialised and super specialised IT organising a walkathon. The walkathon will professionals has increased manifold.

Elected: Agriculture production begin from Gate number 1 of Ram commissioner Alok Ranjan has been Manohar Lohia Park to Sahara Shaher, elected as member of the board of trustees Gomtinagar from 7.00 a.m. to 9.00 a.m.

Government constitutes food processing of Dewa Sharif in district Barabanki for a council: The government has constituted period of five years, informs an official State Food Processing Development release.

HR conclave: School of Management Council at the state level in order to Science, Lucknow in association with CII, implement food processing related schemes UP, organised HR conclave. Minister of of the government of India and to expedite state (Independent charge) Arvind Singh development of food processing industries 'Gope', in his address said, "The entire in the state. A government order to this world is recovering from recession and this effect has been issued, said secretary, food is the right time for improving skills of processing Rajan Shukla. He said that the corporate workers". He advised the HR chief minister will be the chairman of the heads of corporate sectors for taking care of council.

Annual general body meeting: The AGM of workers so that they could give their best to Sri Ayyappa Sewa Samithi ( Regd), the origination. GB Patnaik, principal Lucknow for 2012-2013 will be held, secretary to the governor of Uttar Pradesh September 30 at Lucknow Muthamizh talked about giving the humane touch to the Sangam, B-62, Sector E, Aliganj 2.00 p.m. work force by the corporate houses.

Madhya Pradesh to be venue of next Indo-US business meet

West Bengal to assist state schemes

Agro-ventures queue up to seek angel, VC, PE fundingAndhra initiative to help channel venture capital into agriculture

Future Group to invest Rs. 2500 crore in Madhya Pradesh

everages & Food Processing Times- -II-2012B Sep

Retail 9

Retail needs more than FDIfrom excessive control --- in particular, The service sector has more to gain of the market. Permitting foreign mid strong protest from dismantling archaic regulations like (than lose) from opening up of retail to players in retail sector of Indonesia, opposition parties, the UPA-II A Agricultural Produce Market organised operators. It will create new Malaysia, the Philippines, Brazil and Government has notified the Committee (APMC) and ensuring jobs for skilled and unskilled workers, Mexico has not resulted in large-scale opening up of FDI in multi-brand seamless movement of farm produce not only in retail but also in related displacement of local retail stores. It is retail. Now, with all speculation put to across States — to allow the farmers to areas such as banking and finance, naive to presume that Walmart or Tesco rest and the roughly $500-billion benefit from the growing consumerism logistics and transport. could do what Big Bazaar, Reliance Indian retail market opened to all

This will somewhat compensate for the and retail boom. FDI in retail will not Fresh or Spencer could not do, despite retailers — indigenous or foreign — it expected job losses arising out of solve the existing supply bottlenecks in being around for almost a decade.would be pertinent to analyse the allowing organised players (indigenous India's retail sector is already opened the food chain, which are the main opportunities and challenges arising or foreigners) in retail, if we can for indigenous (organised) operators. cause of food inflation.out of the latest move.address the problems of skill shortage There is no logic in keeping foreigners Will organised retail benefit India's

MANUFACTURING WOES and skill upgradation. out. Entry of foreign players means farm sector and improve the condition Organised retail can be an opportunity more competition, improved supply of its farmers? How will it affect

chain efficiencies and better manufacturing and services? offerings for consumers and, Will the India ride of foreign most likely, better prices for retailers be a smooth one? farmers.What it would mean for local

kirana shops? Will they lose ATTRACTING FDIout to competition from Given the high current organised players with access account deficit and imminent to cheaper finance and threat of downgrading, India technical knowhow?has no option but to do what FARM SECTOR all it can to attract FDI to PROBLEMStame the decline in rupee.India is the world's second The declining rupee will largest producer of fruit and cause increased fuel subsidy vegetables with annual that will, in turn, lead to production of more than 200 inflation, rise in interest rates million tonnes.and crowding out of private However, the total cold investment.storage capacity is not even In all probability, it will not be 50 million tonnes. Potatoes a smooth ride for foreign take up three-fourth of this, retailers in India. Dealing leaving almost no space for with fragmented small other perishable items. As a suppliers to comply with 30 result, 25-30 per cent ( per cent domestic sourcing compared to 1 per cent in norms will not be easy. To be Australia) of fruit and competitive, retailers will vegetables are wasted.need to remain in close Further, farmers have to sell proximity to their buyers and, at the time of harvest when yet not pay high rentals. the price of their produce is Given the prohibitive cost of low. So, they get one-third to retail space in Indian cities, one sixth of what the for domestic manufacturers, if they can SAFEGUARDS IN PLACE

this is easier said than done. Foreign consumers pay. To be fair to our policymakers, enough supply the right quality at the right retailers will also have to cope with the Though India allows 100 per cent FDI provisions have been made to price. However, India's manufacturing complexities of State taxation, in cold storage, this has not evoked safeguard the interests of kirana shops, sector is constrained by high capital especially taxes on moving goods out much of a response in the absence of farmers and small manufacturers by cost, stifling regulations, poor of or into a State.FDI in multi-brand retailing. imposing conditions (on foreigner infrastructure (and, of late, slowing FDI liberalisation in multi-brand retail Proponents of the policy claim that retailers) such as domestic sourcing demand). is, thus, both an opportunity and a organised retail, facilitated by FDI, will Unless these concerns are addressed, norms, entry at the discretion of States challenge. Whether India will benefit bring capital and technology, improve opening up multi-brand retail to foreign and permission to operate in cities with from it will depend upon whether it is quality consciousness and back-end players will lead to flood of imported a population of one million or more. supported by policy actions aimed at infrastructure. goods from low-cost countries such as Investment has to be made to create unleashing the animal spirits of India's It will minimise the role of

China or Bangladesh that may hurt back-end infrastructure.productive capacities; how the intermediaries and link the farmers If that is not enough, Competition vulnerable sectors like textile and government addresses the problem of directly to consumers. It will Commission of India can take care of garments.infrastructural bottlenecks and strengthen rural-urban linkages, Organised retail, being a volumes likely collusion and predatory pricing. business-unfriendly regulatory encourage agro-processing and check game, requires sourcing at lowest price. Moreover, retail being a Mode 3 environment is also an important post-harvest losses. This will improve India's high-cost manufacturing must service under GATS, India has enough factor.net realisation from agriculture. turn cost-efficient to benefit from local legroom to tweak its policies on FDI in That will decide whether opening up Besides, it can also be an effective sourcing by these multinational multi-brand retail without inviting India's retail sector was a prudent instrument for managing food inflation. retailers. WTO sanctions to suit its local policy decision or not.However, considering FDI in multi- Domestic sourcing requirement peculiarities. (Singh is Group Economist of a brand retail as a panacea for all the ills (though it may be contested at WTO) Evidence from China shows that even corporate house. Sharma is a research of the farm sector will be naive. It must can be an opportunity for the small after two decades of opening up its analyst - agri. commodities. The views be accompanied by policy actions manufacturers if backed by suitable retail sector to organised players, it are personal.)aimed at unshackling the farm sector follow-up action. accounts for not more than 20 per cent

everages & Food Processing Times- -II-2012B Sep

Organic Food News 10

farming process will generate six he Associated Chambers of million jobs directly and two million Commerce and Industry of T jobs in packaging and processing etc. India (Assocham), an apex body “Though most of agricultural fields are of trade association, said that adoption rain fed, the state has an immense of organic farming in Odisha can potential to bring even food crops generate about eight million jobs in under organic cultivation,” said D S next five years.

According to the Assocham study titled Rawat, ASSOCHAM secretary general - “Organic Odisha: Inching towards at the launching of the study report.

The report claims that organic farming organic farming”, promotion of this

can lead to wealth accumulation of a whopping Rs 23,000 crore and generate exports worth Rs 600 crore.He maintained that the net per capita income of a farmer can go up by more than 250 per cent from Rs 3,000 presently to Rs 10,500 by 2017.“Organic farming can be encouraged in the production of bananas, vegetables and milk in the state,” Rawat said.India's organic exports currently stood at 0.2 per cent of the total global organic exports. Out of the total 135 products in organic product portfolio, India exports only 86 products.The country exports only $100 million (in values) to the $ 60 billion global market that is growing by $ 5 billion annually, he maintained.Assocham study recommends that the state should increase cultivation through cluster approach to generate marketable surplus and provide economy of scale in marketing the products.The Assocham official said the state government should set up a model village in each district for encouraging the usage of organic fertilisers for protecting the land from residual effect of chemical fertilizers. Assocham has submitted the study report to the Chief Minister recently.The chamber has vowed to help the farmers by linking them with certification agencies and markets both domestic and international.It may be noted that Odisha has the maximum area of 26,300 hectares of total organically certified area of 170,000 hectares in the country. Odisha is followed by Jammu and Kashmir (22,316 hectares) and Rajasthan (22,105 hectares).The industry body has identified Kandhamal for setting up a cluster for turmeric while it will decide between two other districts Khurda and Koraput for establishment of another food processing cluster. The clusters will be set up in association with United Nations Industrial Development Organisation (Unido), Department of Industrial Policy and Promotion, Ministry of Food Processing and the state government.

Organic farming can create 8 mn jobs in Odisha

Assocham

everages & Food Processing Times- -II-2012B Sep

storage facilities in identified clusters. and cost-effective solutions must be tracking and mobile payment gateways he fact that the recent regulatory These clusters will take care of provided to make IT deployment easier are all important for this change. And, changes surrounding multi-brand T processing activities, which require in this market. all of this at a price which will bring a retail in India have split the cutting-edge technologies and testing smile to a small retailer.political and chattering classes neatly

Therefore, while the current notification down the middle, is proof that the retail on FDI in multi-brand retail expressly sector is of primary importance to the excludes e-commerce firms from its economy. Out of the $450-billion retail decision to allow up to 51 per cent FDI, market, organised retail accounts only the enlightened small retailer may find for 5 per cent. This effectively means protesting for removal of this clause that $427.5 billion is controlled by the more beneficial for them.unorganised retail, which seems tobe There is, thus, a need for disruptive most affected by the Government's technologies which enhance the ability decision to open up the sector to foreign of the small retailer to not only survive, direct investment (FDI).but thrive in the changed environment.While the pressures of competitive There are examples where this has been politics have compelled political parties successfully attempted and the time is to reach out to their constituents, the right to engage with tools that can truly urgent need to upgrade the supply-chain transform the unorganised sector infrastructure and introduce modern and retailing.scientific methods of retailing are being If anything, the contours of the debate ignored. Accordingly, this article surrounding multi-brand retail attempts to highlight:liberalisation need to change to address the mechanisms in place to attract FDI the core issues of whether and how it in the supply-chain infrastructure will impact modernisation of the sector; andsupply-chain infrastructure as well as a framework to transform the face of

facilities, besides the basic TIME IS RIGHT what measures can be initiated for the corner shops and small retailers, so Therefore, bold new solutions with infrastructure such as water supply, modernising the operations of smaller that they are placed at a significant handheld technology, supply-chain power, environmental protection retailers.competitive advantage.

systems, and communication.The current regulations envisage huge SUPPLY-CHAIN INFRASTRUCTUREinvestments in the supply-chain The retail sector depends heavily on the infrastructure, and this must be supply chain and logistics sector to stringently monitored and enforced to allow it to run smoothly. However, make sure that, within a reasonable supply chains are underdeveloped and time-span, there is end-to-end not well integrated with the cold storage connectivity between the farm and the infrastructure. This is fast becoming a retailer through negligible wastage.critical issue in India, as at present there

is wastage of 30-40 per cent between IT AS AN ENABLER

the farm and the retailer. Hundred per Until now, small retailers have found it

cent FDI is allowed under the automatic hard to access stable, low cost and

route in the storage and warehousing resilient information technology (IT)

sector, which includes warehousing of infrastructure.

farm products with refrigeration. The global providers which serviced Further, there are a significant number

large business were not interested in of government initiatives in this sector

small retailers, and the insignificant to provide funding and support for both

population of small retailers who did Indian and foreign companies. The Free

invest in an IT framework, had no brand Trade Warehousing Zone Scheme

security, certainty and known resilience.(FTWZ) was unveiled by the Many, if not most, small retailers do not Government to spark investments in have the time or resources to investigate this space. The scheme envisages the the suitability of an IT solution provider creation of world-class infrastructure and, often, perceive the risks as too high for warehousing of various products, as and the rewards not clear enough.well as transportation and handing In the UK, there are a few interesting facilities to support the integrated zones projects that have the potential to as international trading hubs. provide a massive competitive edge to

the local high-street retailers. They are END-TO-END CONNECTIVITY

backed up with a world-class delivery Further, five such warehousing zones

mechanism.have been established in strategic areas

Open High Street is a project that brings across India, which are linked by major

together local retailers on an Internet road, rail, air, and port networks.

platform and creates an incentive for the Furthermore, the Government also

local community to buy from them. This provides a series of direct and indirect

seems to be the flavour of the day with tax benefits for companies setting up

a similar project being tested in a small facilities under the FTWZ Scheme.

town in Wales.To supplement the push on this front,

The former is backed by Uniliver and the Ministry of Food Processing

the latter, a community initiative. Both Industries of the Government has come

projects, by providing the underlying out with the Mega Food Park Scheme

infrastructure, take local retailers to the which seeks to link agricultural

next level of customer satisfaction.production directly to the market by Similarly, small retailers in India need creating infrastructure for primary to realise the potential of IT enablement processing centres, together with cold and, at the same time, reliable, robust

Retail News 11

Smart solutions for the small retailer everages & Food Processing Times- -II-2012B Sep

Back Page 12

Lower processing, packaging costs of food make India attractive: Reporttarget of $20 billion in food-related rather than remaining loyal to one . opening up new possibilities of he food processing industry,

The report cheers reforms by the infrastructure from the private sector. partnership and bringing increased currently the fifth largest sector government in retail, expecting it to T By 2017, 50 Food Parks are expected investment.”in India's economy, is showing “greatly transform the industry, to be built potential for massive expansion,

across the particularly in the export market, a country, report by FICCI and Bain & Co says. providing Costs of processing and packaging accessible food can be up to 40% lower in India, transport and than parts of Europe, making it an processing attractive venue for investment. facilities to even Several multinational players are small farmers.bringing in new products to capitalise Growth is on the growing demand for packaged expected to be goods.faster in The report, which was launched at the relatively newer “Food World India 2012 Convention,” categories such pegged the packaged food industry at as flavored milk R1 lakh crore, the majority of which is and instant accounted for by dairy and biscuits. noodles, as Analysts predict growth rates for the compared with packaged food sector anywhere from categories like 9%-13% for the next 5-6 years. The bread and spices past few years have also seen increases that are large in investment, through joint ventures, today. Across foreign institutional investment and segments private equity (PE). Between 2008 and consumers are 2011, PE investment in the food and increasingly agriculture sector totaled $650 million .

In the coming years, the Indian willing to try government has set an investment new brands,

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