FICCI today organised a seminar on Deciphering the WHO NUGAG guidelines on the Use of Non-Sugar Sweeteners (NSS). The seminar provided an overview of the latest scientific evidence and recommendations on NSS from the WorldFICCI today organised a seminar on Deciphering the WHO NUGAG guidelines on the Use of Non-Sugar Sweeteners (NSS). The seminar provided an overview of the latest scientific evidence and recommendations on NSS from the World Health Organization (WHO) and leading Indian experts. FICCI acknowledged the pressing need for action and emphasised the importance of adopting measures that promote ‘Smart choices, smart benefits and a smart future’.As per the recent study conducted by the Indian Council of Medical Research–India Diabetes (ICMR-INDIAB), confirming that India is home to 101 million diabetics, making India a diabetic nation today.Prominent experts from medical, nutritional, and scientific fields, including Dr. V. Mohan Padma Shri Awardee, Dr. B. Sesikeran, Dr. Mangesh Tiwaskar, Dr. Rajeev Chawla, Dr. Jagmeet Madan, and Dr. Pulkit Mathur, actively participated in the seminar, sharing their perspectives, and enriching the discussions. Ms Jyoti Vij, Additional Director General, FICCI, and Mr Tarun Arora, President of FICCI Centre for Nutrition Excellence, expressed their opinions regarding the reasoning behind these guidelines. The focal point of the discussion emphasised the crucial role that low/no-calorie sweeteners play in decreasing sugar and calorie consumption, assisting in weight management, and enabling product reformulation in accordance with public health recommendations.During the event, renowned speakers mentioned the following:Mr Tarun Arora, President FICCI Centre for Nutrition Excellence, said, “The WHO guidelines say substantive discussions are required, and country-specific policy is required. The discussion among the experts in India clearly indicates that the status quo on sweeteners is to be maintained, and long-term studies in the country are required.”Dr V Mohan, Chairman and Chief of Diabetology – Dr. Mohan’s Diabetes Specialities Centre, Chennai, said, “It is recommended to reduce the carbohydrate – sugar intake. Substituting added sugar in tea/ coffee with one to two tablets is just fine. What is not ok is excess consumption of products just because it doesn’t have sugar. We have just completed a study on replacing added sugar in daily tea/ coffee/ milk with sweeteners to understand its effect on health, and we are presenting the results in ADA. This is one of the largest randomised clinical studies on sweeteners done so far in India.”Former Director National Institute of Nutrition, ICMR -Hyderabad Dr B Sesikeran, emphasized that the risk of consuming sugar is much higher than the minimal risk associated with sweeteners, with limited data from India. He advocated for further research and data generation to manage risks effectively.Esteemed authority Dr Rajeev Chawla, Senior Diabetologist and Director, North Delhi Diabetes Centre, New Delhi, Past President, RSSDI said “The alarming rise in type-II diabetes and the staggering number of individuals with pre-diabetes necessitates urgent action and awareness. There is a need to advocate for the use of non-nutritive sweeteners, approved by global regulatory bodies, to provide sweetness without compromising the management of diabetes.”Dr Jagmeet Madan, a distinguished figure serving as the Principal, Professor, Director (Research and Consultancy), Sir Vithal Das Thackersey College of Home Science (Autonomous), SNDTWU, Mumbai, National President, Indian Dietetic Association, said, “Prediabetes, Insulin resistance is striking sub-clinically across young adults today both in overweight and lean obese. It is evident that the key determinants are total empty calories and the quality of food in the diet. Priming the taste buds to get acquainted with less sweet tastes right from childhood is crucial. While following a healthy diet, these sugar swaps with sweeteners can be a stepping stone which can help in reducing the added sugar intake.”Dr. Mangesh Tiwaskar, a highly regarded Consultant Physician and Diabetologist at Shilpa Medical Research Centre, Mumbai said, “sweeteners can promote diet healthfulness by increasing the palatability of nutrient foods and beverages. He further stated that NNS consumption may be a marker for other positive health behaviours and lifestyles. As far as the BMI is concerned, all the non-nutritional sweeteners are either weight neutral or sometimes help you to sustain lost weight. Evidence reveals that the use of NNS influences the microbial composition of the oral mucosa,” he added. “Numerous human studies and clinical reviews have unanimously concluded that low-calorie sweeteners (LCS) have no impact on appetite, hunger, or the desire for sweetness. It is now well-established that LCS consumption does not affect the normal physiological mechanisms related to hunger and appetite, as affirmed by scientific research,” he stated.Dr Pulkit Mathur, an esteemed professor and the head of the Department of Food and Nutrition and Food Technology at Lady Irwin College, University of Delhi, emphasised the need for more data to understand the consumption of NNS and their effect on health. These studies need to have a well-defined study design, with a larger sample size, more homogenous samples, and monitoring the overall diet esp. mapping the total energy intake. The portion size intake is very crucial to manage the issues of overweight/ obesity today. medgatetoday@gmail.comSave my name, email, and website in this browser for the next time I comment. 256/6 office no.02, Pocket 10B, Jasola, New Delhi, Delhi 110025 Email: info@medgatetoday.com Phone: +91 11 26946348Line In today’s marketplace, being a good business citizen can give you an edge over competitors while simultaneously

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Union Minister for Food Processing Industries Harsimrat Kaur Badal today launched Swachhta Pakhwada, a 15-day observance of cleanliness campaign by the ministry.The campaign will run from 16th to 31st October. On the occasion the Minister also launched a booklet titled “Waste to Wealth Technology” prepared by Indian Institute of Food Processing Technology, Thanjavur, Tamilnadu.Inaugurating the booklet, the Minister said Ministry of Food Processing Industry holds cleanliness with utmost importance. She called on industry chambers present on the occasion to participate in the campaign and promote the idea of Swachhta becoming a way of life. Smt Badal requested industry leaders present at the event to apprise their units of the importance of Swachhta.During the 15-day campaign nodal officers of the Ministry will visit Mega Food Parks, Abattoirs, Cold Chains and other assisted projects to review cleanliness measures at the sites. On 18th October officials of the Ministry will take out a cleanliness drive in and around the office premises. Industry bodies like ASSOCHAM, FICCI, DICCI, PHDCCI, AIFPA and CII will organise Swachhta Awareness Programme in selected Municipal schools across Delhi. Awareness events and training camps for street vendors on food safety will also be organized across various locations in the city.Indian Institute of Food Processing Technology will hold an essay competition on Swachhta Mission at the institute, the winner of which will be awarded a cash prize of Rs 10,000. National Institute of Food Technology Entrepreneurship and Management will organise an intensive cleanliness drive in its campus and its adopted villages.Dr. Rakesh Sarwal, Additional Secretary and other senior officers of the Ministry, Dr. Chindi Vasudevappa, Vice Chancellor, NIFTEM, Dr. C. Anandharamakrishnan, Director, IIFPT along with senior officials representing various Industry Chambers were present during the occasion.

With increasing output from the agriculture sector leading to a rise in food processing activities, India will be able to cater to the international markets by exporting more processed foods, Commerce Minister Suresh Prabhu said on Friday."Among other sectors, food could be a very important sector (for exports) because now when we have large quantity of agriculture and horticulture products coming in, we will have to process it," he said at the inauguration of the 11th edition of "FICCI Foodworld India 2018" with the theme "Capitalising Food Processing in the Digital Era". "When we process it, we need not only cater to the domestic market but we can export it."The minister said the food processing industry professionals should develop processed food items that appeal to the palate of the consumers in export markets."This segment needs to be exploited aggressively apart from exporting Indian food products for use by Indians overseas," he added. Prabhu said the processed, ready-to-eat food produced under good regulation on safety and standards was a great opportunity for the manufacturing sector with the attendant benefit for downstream industries. According to the minister, although technology will bring in lot of redundancy and many sectors will be impacted, food processing is a sector which will survive all such transitions."We are trying to identify sectors which would be growing at a much faster rate than before, and clearly in my opinion, food is one such sector," he said. Emphasising on the need for exports of marine products, Prabhu said he had urged the Marine Products Export Development Authority to prepare a strategy for export of marine products from India.

Having paid heed to the food processing industry’s problems, the ministry of food processing industries (MoFPI) stated that it was taking steps to keep the rate of tax as low as possible for the industry. This was stated by food processing industries minister Harsimrat Kaur Badal.

She was addressing the sector, consumers, food processing industry stalwarts and the media at the Global Convention for Food Business and Industry, which took place in Mumbai on Thursday was a part of the Federation of Indian Chambers of Commerce and Industry (FICCI) Foodworld India’s eighth essay.

Badal said, “I thank FICCI for giving me an opportunity to meet food processing industry stalwarts, and prime minister Narendra Modi for separating MoFPI from the ministry of agriculture. Although the food processing industry is a very big industry, we haven’t explored it.”

“Therefore, for the growth of this sector, me, as a part of the government, and the people representing the industry should work in collaboration. In the days to come, food consumption is going to be thrice the current level. This would be a huge challenge for the government. Our aim should be to grow more in order to feed everyone,” she added.

The minister added, “The population is growing day by day, and our wastage of food is estimated to be worth Rs 40,000 crore, which is a huge loss and a very scary scenario. In the days to come, food processing is going to play a very major role.”

“Most of the food produced in the country is from farms, so we have to educate the farmers about technology to produce more. If the produce increases, the processing industry would grow, and food worth Rs 40,000 crore can be saved,” she added.

“The collection centres should be as close to the harvest point to minimise the wastage. As everyone knows, the previous government was voted out due to the rise in onion prices,” Badal stated.

“Even if processed onion, tomato and potato products were made available to the consumers at slightly higher prices, neither the government nor the consumer would have a problem,” she added.

“We have a youth force aged under 35. This force can be turned into assets by empowering them with skills. The food processing industry is an industry where even an illiterate person can develop his/her skill and use it for the development of the industry. Every industry has its own problems. I would like to address the problem of small food industries, who are grappling with many problems,” the minister added.

“The food processing industries have a lot of issues with the Food Safety and Standards Authority of India (FSSAI),” Badal stated.

“I am trying to work towards finding solutions to them, so that the industry’s growth won’t be hampered. I am also trying to adopt international ideas for the growth of our industry, but for that we would have to take baby steps,” she added.

“We are setting up food parks. The prime minister inaugurated two mega food parks, and our ministry has sanctioning seven more,” informed Badal.

Addressing the industry about the government’s initiatives, Siraj Hussain, secretary, MoFPI, said, “The food processing industry is helping in the growth of the economy in a big way.”

“Last year, the food processing industry contributed an estimated $350 billion to India’s economy, and this year, it increased by about $100 billion (to $450 billion),” he added.

“The important issue which we need to address is losses in supply chain. Our industry is receiving huge investments by the private sector. We are also trying our best to bring improvements in fruit, vegetables and other perishables,” Hussain informed.

The secretary added, “States like Himachal Pradesh, Uttarakhand, Maharashtra and Gujarat are attracting a lot of investment by the private sector, but the same is not the case with the states in the North-East, Bihar and Jharkhand, because they have not realised their potential yet.”

“States can learn from the best practices of other states. In order to help the investors, our ministry have launched a investor portal with FICCI,” he informed.

“The switch to the goods and service tax (GST) regime would help the industry grow. Right now, the tax rates differ from state to state. For instance, if one state levies four per cent tax, another would be charging 16 per cent tax. This must be harmonised. We are communicating with the finance ministry to reduce the taxes,” Hussain said.

“Some firms in the sector requested that taxes be done away with. It is unlikely that there would be no taxes, but efforts are on to keep the tax as low as possible,” he added.

The meet also had sessions titled ‘Growth Imperative for food processing industry’ and ‘Evolving Indian Food Consumer’, where the who’s who of the industry discussed the processed food industry in detail.

Union Minister of Food Processing Industry Harsimrat Kaur Badal today said that food inflation can be curbed if the industry managed to control wastage of food during harvesting and transportation.

To control the food wastage, she disclosed that her aim is to create collection centres and primary processing centres as close to the harvest point as possible.

Speaking after inaugurating the FICCI 'Foodworld India 2014' conference here, she stated that food wastage plays a very important role in inflation.

'Because of wastage, market availability declines and that directly leads to inflation. So if we control it we can control inflation,' she said.

If rising food prices worry the consumer, they worry politicians as well, she said, observing that governments have fallen when onions reach Rs 40 a kg.

Noting that eighteen percent of the food produced in the country is wasted, Ms Badal said the food processing industry could play a very important role here.

'Food processed is food saved,' she stated.

Over Rs 40,000 crore worth of food is wasted, most of it during harvesting and transportation, she said and talked about her aim of creating collection centres and primary processing centres as close to the harvest point as possible.

The Minister cautioned that at the rate at which India's population is growing at 1.5 per cent per year, the food consumption demand is likely to go up three times in another few years.

With agricultural land shrinking, growing more food from less land to feed more people is a huge challenge, she observed and said that there are huge opportunities for the food processing sector.

Ms Badal called upon industry to educate farmers about the latest agricultural technologies and good practices, so that they can produce more and get better value from the land.

The Minister earlier released an annual report on 'The Indian Food Industry : Keeping Pace with Evolving Consumer Needs', jointly brought out by FICCI and ATKearney.

Strengthening of backward and forward linkages will help in controlling the food wastage, which is estimated at over Rs 40,000 crore, and also aid in curbing inflation, Food Processing Minister Harsimrat Kaur Badal said today.

"The food wastage plays a very important role in inflation. Because of wastage, market availability declines and that directly leads to inflation. So if we control it (wastage) we can control inflation," she said here after inaugurating the 'FICCI Foodworld India 2014' conference.

Eighteen per cent of the food produced in the country is wasted. If rising food prices worry the consumer, they worry politicians as well, she said and noted that governments have fallen in the past when onion rates reached Rs 40 a kg.

The Minister opined that further strengthening of backward and forward linkages in the industry would go a long way in controlling the wastage. The food processing industry could play a very important role here.

"Food processed is food saved," she stated, adding, over Rs 40,000 crore worth of food is wasted, most of it during harvesting and transport.

Badal said the rate at which India's population is growing - at 1.5 per cent per year, the food consumption demand is likely to go up three times in another few years.

With agricultural land shrinking, growing more food from less land to feed more people is a huge challenge. There are huge opportunities for the food processing sector, which will play a key role in addressing these challenges, she said.

Badal called upon the industry to educate farmers about the latest farm technologies and good practices so that they can produce more and get better value from the land.

On the occasion, the Minister also released an annual report on Indian food processing industry titled 'Keeping pace with evolving consumer needs'.

In his address, Siraj Hussain, Secretary, Ministry of Food Processing Industries, said all participants in the food chain had tremendous opportunity to contribute to the rapid growth of the industry. The Government is addressing the losses in the supply chain, and has made headway in the case of grapes, apples and bananas.

Hussain said very soon the industry will see a welcome change in taxation policies as the country shifts to GST. It is unlikely that there will be zero taxation on food, but the Centre is trying to keep it as low as possible.

Minister for Food Processing Industries, Smt. Harsimrat Kaur Badal has emphasized the need to reduce wastages in food supply chain. She was speaking on the occasion of the inauguration of FoodWorld India at Mumbai today. Food World India, a global convention of food business and industry has been organized by the Federation of Indian Chambers of Commerce and Industry(FICCI).

Smt. Harsimrat Kaur Badal has said that the food processing industry through backward linkages can help the farmers with inputs and better farm practices so that the industry gets good quality raw material and farmers get better prices for their produce in a win-win partnership. So the way out is to make the food processing sector grow. This will also reduce inflation and will benefit the consumer. The Minister underlined that food processed is food saved. She also emphasized the need for providing skills and skill development and invited concrete suggestions from the industry.

Food World India has brought together CEOs and stalwarts of processed food industry to discuss strategy to align India's opportunities with the global trends in food business and to address the challenges affecting the growth of the sector in India.

Shri Siraj Hussain, Secretary, Ministry of Food Processing Industries highlighted the need to address regional imbalances so that the potential of all regions of the country that have surplus production, is fully realised.

The key findings of the study titled Indian Food Processing Industry: Keeping Pace with evolving consumer needs, carried out by FICCI-AT Kearney was also shared with the major stakeholders of food processing industry.

The study indicated that the food processing industry needs to drive breakthrough innovation especially by creating innovative products for the countrys 700 million rural consumers. It needs to differentiate itself through consumer awareness on one hand and through superior food quality, safety, and hygiene on the other; moving ultimately towards self-regulation. At the same time, beyond taste, consumers are focusing on price and quality. The industry will need to assess the perceived value of products and the price people are willing to pay.

India's agri-business companies are likely to attract more funds in the coming years with more potential seen in the farm sector by venture capital and private equity funds, a latest KPMG-FICCI report said on Wednesday.

The opportunities in the food processing industry are significant, which is expected to reach a size of Rs 4 lakh crore by 2014-15 fiscal, contributing around 6.5 per cent to the gross domestic produce, it said.

"Venture capital and private equity funds have shown high level of interest towards various food and agri ventures in India. ...while all segments of agribusiness are expected to attract funding in the future," according to the KPMG-FICCI report released in Hyderabad on Wednesday.

Agri-technology-based segments are expected to receive higher relative share of funding over others, it said, adding the double-digit growth of vast Indian agri-business has triggered a surge in private equity (PE) placements and merger and acquisitions (M&A) over the past few years.

Noting that Indian food value chain is on the verge of a great transformation, consulting firm KPMG India Retail Head Rajat Wahi said: "Continuous financial and regulatory support from government, increasing participation of private and public corporates, and increasing exposure of foreign players is likely to spur investments in developing the infrastructure across value chain right from farm inputs to the consumers."

According to the report, agri-product companies with presence in edible oils and spices have attracted high investor interest with more than 40 transactions in this space over the last five years.

Agri-logistics is the other area that has been attracting a lot of attention from investors with over USD 60 million invested just in 2012, it said.

India's food processing industry is expected to hit Rs 4,00,000 crore by next fiscal, making up for roughly 6.5% of gross domestic product, as increasing urbanisation and higher disposable incomes are expected to drive demand for such items, according to a joint study by FICCI and KPMG.

The industry was worth Rs 3,30,000 crore in 2011-12, according to the latest available data. The sector grew at a compounded growth rate of 9% between 2008 and 2012, much above the 3% growth rate for agriculture.

"The industry is witnessing very low levels of food processing, while domestic and export demand exist and are growing...The sector also possesses the potential to reduce the burden of subsidies and raise the farmers' incomes simultaneously," said the study.

Increasing organised retail penetration and the government’s proposed mega food parks will encourage business expansions in the food processing sector, which will ensure higher realisation for farmers and a reduction in wastages, the report said.

Around 30% of the country's food produce gets wasted annually mainly due to the lack of adequate post-harvest infrastructural facilities and inefficient supply chain management.

Only 7% of commodities sold by farmers are graded before sale. The unreasonably long supply chain results in a sharp rise in the total cost, factoring in procurement, transit and other taxes and service charges levied at various stages.

So farmers get only 25-60% of what the consumer pays for the produce, the report said, adding that improving supply chain can benefit the consumers and producers by 20-25%.

“Indian food value chain is on the verge of a great transformation ? from one characterised by high wastage, low processing and low global contribution to one that is more streamlined, more integrated and more significant in the global trade. Continuous financial and regulatory support from government, increasing participation of private and public corporates, and increasing exposure of foreign players is likely to spur investments in developing the infrastructure across the value chain right from farm inputs to the consumers,"said Rajat Wahi, partner and head of retail at KPMG (India).

In spite of huge supply advantages, the country's share in the global processed food trade is still around 1.5%.

Late last month, a report by UK-based Institution of Mechanical Engineers also said as much as 40% of India’s fruits and vegetables and roughly 22% of wheat are lost annually due to poor cold storage facilities and infrastructural bottlenecks.

The Indian food value chain is on the verge of a great transformation - from one characterised by high wastage, low processing and low global contribution to one that is more streamlined, more integrated and more significant in the global trade, according to a FICCI-KPMG report on ‘Enhancing Competitiveness of Indian Food Chain’.

Indian farmers could benefit from information and communication technology in a big way if they get organised and become literate in computers, experts said today.

Speaking at a round-table conference on development of information technology for agriculture at the World Agricultural Forum Congress 2013 here, FICCI Co-Chair J A Chowdary said that application of communication technology already benefits farmers in the form of mobile phones.

He cited examples of a farmer from the backward Anantapur district who took pictures of his crop and used it to consult experts, as well of another farmer in Hyderabad who used web-based technology.

Farmers also received various other information on their mobile phones, he said, adding that there are software companies in Hyderabad which offer information like prevailing market price of their their produce, he said.

Tech Mahindra's Senior Vice-President V Srinivas Rao said farmers could benefit further if they are organised into groups and computer literacy is spread among them so that they may access the Internet.

Providing information in local languages would be useful, he said, stressing that affordability of applications is important.

Indian farmers could benefit from information and communication technology in a big way if they get organised and become literate in computers, experts said today.

Speaking at a round-table conference on development of information technology for agriculture at the World Agricultural Forum Congress 2013 here, FICCI Co-Chair J A Chowdary said that application of communication technology already benefits farmers in the form of mobile phones.

He cited examples of a farmer from the backward Anantapur district who took pictures of his crop and used it to consult experts, as well of another farmer in Hyderabad who used web-based technology.

Farmers also received various other information on their mobile phones, he said, adding that there are software companies in Hyderabad which offer information like prevailing market price of their their produce, he said.

Tech Mahindra's Senior Vice-President V Srinivas Rao said farmers could benefit further if they are organised into groups and computer literacy is spread among them so that they may access the Internet.

Providing information in local languages would be useful, he said, stressing that affordability of applications is important.

While Opposition parties criticised the Cabinet's decision of taking the ordinance route for the implementation of National Food Security Bill, agricultural experts and industry associations have asked the government to fix leakages in the Public Distribution System (PDS) and investment in improving production, storage and transportation of food grains before the implementation of the proposed legislation.

“The biggest challenge is to stop leakages in existing PDS and sustain production of food grain for meeting the grain requirement year after year,” Ashok Gulati, chairman, Commission for Agricultural Costs and Prices (CACP) told FE.

Gulati also cautions the government on sustaining the availability of food grains, estimated at around 62 million tonne annually, for meeting the demand towards the implementation of the food Bill, which envisages providing highly subsidised foodgrains to 67% of the country's population.

“Every three to four years, there is a possibility of drought and we need to remind ourselves that foodgrain production dropped by 38 million tonne to 174 mt in 2002-03 from the 212 mt reported in the previous year because of drought,” Gulati said.

He also questions the food Bill provisions of providing 5 kg of foodgrain per person per month while official data on consumption says that actual foodgrain intake is around 10 kg per head per month.

Meanwhile, FICCI in a statement stated that the food Bill is expected to cost the exchequer about R1,25,000 crore annually, which will substantially increase the costs.

"One of the biggest issues that comes to fore is access and it is quite surprising that the government is willing to fall on the old PDS to allocate food grains under the Bill. PDS has not been streamlined over the years and remains plagued with inefficiencies," Ficci secretary general A Didar Singh said in a statement.

Just a few weeks prior to the commencement of the monsoon session of Parliament, the Cabinet on Wednesday approved promulgating an ordinance to implement the Food Security Bill.

The principal opposition party’s president Rajnath Singh said: “They are bringing it through an ordinance. It is just a political gimmick in a hurry".

He wondered what prevented the government from taking up the Bill for the last nine years (UPA rule) and holding a debate in Parliament.

Even the CPI(M) Politburo said the government had "failed to bring in a proper legislation for nearly four years for the consideration of Parliament, and now an ordinance is being promulgated. The ordinance route shows contempt for Parliament and is anti-democratic”, a party statement said.

Meanwhile, Olivier De Schutter, United Nations Special Rapporteur on the Right to Food, said the food law had 'global significance': "It is an important movement for the right to food in India. It can inspire many countries to do the same thing."

The industry has questioned the timing and feasibility of the massive food security programme, a day after the UPA government enacted an ordinance to this effect.

Industry body FICCI in a note has called the announcement “premature” and said the country is not ready for it. The industry worry also stems from the fact that the ordinance comes at a time when the government is trying to push fiscal consolidation.

“While there is no denying the fact that right to food and attaining proper nutrition should be the basic provision for every citizen in the country, the recent announcement seems a little premature and that the country is yet not fully prepared to roll out such a programme,” says Didar Singh, secretary general, FICCI.

Pointing to the execution difficulties and pressure on the fiscal situation, the chamber says the actual execution of the scheme will be marred by challenges. It says the fiscal cost of the scheme will rise substantially going forward. The Bill is expected to cost the exchequer around Rs 1.25 lakh crore. The budgeted amount for the food subsidy this fiscal is Rs 90,000 crore and an additional Rs 10,000 crore has been budgeted for the Bill this year.

But going ahead, the fiscal cost is expected to rise substantially. The use of the Public Distribution System (PDS) system for the scheme has also come in for criticism. “One of the biggest issues that comes to the fore is the access and it is quite surprising that the government is willing to fall on the old PDS to allocate food grain under the Bill. The PDS has not been streamlined over the years and remains plagued with inefficiencies,” says Singh.

There are also fears that this will set in motion a massive chain reaction of the government buying all the food grain in the country and the subsequent logistical nightmares and losses on account of it.

As 75% of the rural population will be eligible for food grain under the National Food Security Bill, most farmers will conveniently sell their grain at the MSP (which is the most competitive) and again come to the government for their consumption. This may result in a substantial increase in government procurement and start of a chain reaction i.e. more procurement, more storage, more losses, etc. and lead to a situation where the government ends up buying all the foodgrain produced in the country.

Credit Rating Information Services of India Limited (CRISIL) research believes proper implementation of the food security Bill will lower spending on foodgrain by below poverty line households and free up resources for spending on other goods and services.

Expressing concern over the ordinance on food security, industry body FICCI today said it comes at a time when the country is trying hard to get back on the path of fiscal consolidation.

"While there is no denying the fact that right to food and attaining proper nutrition should be the basic provision for every citizen in the country, the recent announcement seems a little premature and the country is yet not fully prepared to roll out such a program," FICCI Secretary General A Didar Singh said.

The chamber said that the actual implementation of the scheme would be marred by challenges, besides questioning the fiscal sustainability of the food programme. It is expected to cost the exchequer about Rs 1,25,000 crore annually which would substantially increase the fiscal cost, it said.

"One of the biggest issues that comes to fore is the access and it is quite surprising that the government is willing to fall on the old Public Distribution System (PDS) to allocate food grains under the Bill. The PDS has not been streamlined over the years and remains plagued with inefficiencies," Singh said.

FICCI said that as 75 per cent of the rural population would be eligible for food grains under National Food Security Bill (NFSB), most farmers would conveniently sell all grains at Minimum Support Price (MSP) and again come to the government for their consumption. This might result in government procurement increasing substantially and start off chain reaction, i.E., more procurement, more storage and more losses.

Yesterday, government decided to come out with an ordinance to give nation's two-third population the right to 5 kgs of foodgrain every month at highly subsidised rates of Rs 1-3 per kg. The Ordinance is being promulgated just weeks before the scheduled Monsoon session of Parliament. Even after the Ordinance, the Bill will have to be approved by both the Lok Sabha and the Rajya Sabha.

Meanwhile, apex traders' body CAIT termed the government's decision to bring an ordinance on food security as an "election gimmick" and said it will put pressure on the exchequer.

"Such a decision is in contravention of the policy of the government to curtail subsidies. The Rs 1,25,000 crore government support for this will put pressure on the exchequer and government's expenditure may overshoot estimates," Confederation of All India Traders (CAIT) Secretary General Praveen Khandelwal said.

Expressing concern over the ordinance on food security, industry body FICCI today said it comes at a time when the country is trying hard to get back on the path of fiscal consolidation.

"While there is no denying the fact that right to food and attaining proper nutrition should be the basic provision for every citizen in the country, the recent announcement seems a little premature and the country is yet not fully prepared to roll out such a program," FICCI Secretary General A Didar Singh said.

The chamber said that the actual implementation of the scheme would be marred by challenges, besides questioning the fiscal sustainability of the food programme. It is expected to cost the exchequer about Rs 1,25,000 crore annually which would substantially increase the fiscal cost, it said.

"One of the biggest issues that comes to fore is the access and it is quite surprising that the government is willing to fall on the old Public Distribution System (PDS) to allocate food grains under the Bill. The PDS has not been streamlined over the years and remains plagued with inefficiencies," Singh said.

FICCI said that as 75 per cent of the rural population would be eligible for food grains under National Food Security Bill (NFSB), most farmers would conveniently sell all grains at Minimum Support Price (MSP) and again come to the government for their consumption. This might result in government procurement increasing substantially and start off chain reaction, i.E., more procurement, more storage and more losses.

Yesterday, government decided to come out with an ordinance to give nation's two-third population the right to 5 kgs of foodgrain every month at highly subsidised rates of Rs 1-3 per kg. The Ordinance is being promulgated just weeks before the scheduled Monsoon session of Parliament. Even after the Ordinance, the Bill will have to be approved by both the Lok Sabha and the Rajya Sabha.

Meanwhile, apex traders' body CAIT termed the government's decision to bring an ordinance on food security as an "election gimmick" and said it will put pressure on the exchequer.

"Such a decision is in contravention of the policy of the government to curtail subsidies. The Rs 1,25,000 crore government support for this will put pressure on the exchequer and government's expenditure may overshoot estimates," Confederation of All India Traders (CAIT) Secretary General Praveen Khandelwal said.

Expressing concern over the ordinance on food security, industry body FICCI Thursday said it comes at a time when the country is trying hard to get back on the path of fiscal consolidation.

"While there is no denying the fact that right to food and attaining proper nutrition should be the basic provision for every citizen in the country, the recent announcement seems a little premature and the country is yet not fully prepared to roll out such a program," FICCI Secretary General A Didar Singh said.

The chamber said that the actual implementation of the scheme would be marred by challenges, besides questioning the fiscal sustainability of the food programme. It is expected to cost the exchequer about Rs 1,25,000 crore annually which would substantially increase the fiscal cost, it said.

"One of the biggest issues that comes to fore is the access and it is quite surprising that the government is willing to fall on the old Public Distribution System (PDS) to allocate food grains under the Bill. The PDS has not been streamlined over the years and remains plagued with inefficiencies," Singh said.

FICCI said that as 75 percent of the rural population would be eligible for food grains under National Food Security Bill (NFSB), most farmers would conveniently sell all grains at Minimum Support Price (MSP) and again come to the government for their consumption. This might result in government procurement increasing substantially and start off chain reaction, i.E., more procurement, more storage and more losses.

Yesterday, government decided to come out with an ordinance to give nation's two-third population the right to 5 kgs of foodgrain every month at highly subsidised rates of Rs 1-3 per kg. The Ordinance is being promulgated just weeks before the scheduled Monsoon session of Parliament. Even after the Ordinance, the Bill will have to be approved by both the Lok Sabha and the Rajya Sabha.

Meanwhile, apex traders' body CAIT termed the government's decision to bring an ordinance on food security as an "election gimmick" and said it will put pressure on the exchequer.

"Such a decision is in contravention of the policy of the government to curtail subsidies. The Rs 1,25,000 crore government support for this will put pressure on the exchequer and government's expenditure may overshoot estimates," Confederation of All India Traders (CAIT) Secretary General Praveen Khandelwal said.

Expressing concerns over non-utilisation of special funds allocated for growth and development of rural India, the Governor of Punjab and UT Administrator Shivraj V Patil lamented the half-hearted approach of private players in taking initiatives in the food processing sector. He was addressing a gathering at the inauguration of a national conference on 'Linking Growth Drivers of Food Processing Industries' organised by Associated Chambers of Commerce and Industry of India (ASSOCHAM) Monday.

He said in India there are associations like ASSOCHAM, FICCI and CII which help in bringing entrepreneurs together to see that policies which are conducive for the development of industry, agriculture and other activities are working well, and also trying to see how produce can be sold in the market and be exported.

"The industry should set up research and development (R&D) centres in rural areas to help the farmers in getting their due share for their produce thereby avoiding the middle man and making agro-products available to common man at affordable prices. The corporate sector needs to work directly with farmers without engaging the middle man as it would also help to abate food inflation," said Patil.

The governor said there is no dearth of funds for establishing food processing units. Money is available but it has not been fully disbursed by the banks in the rural areas. These funds are transferred to NABARD to disburse for its full utilisation. He said only the private sector can help in strengthening and promoting the food processing industry by developing their own research and development wings.

In its study, the chamber has suggested that the industry must switch to renewable sources of energy like solar and wind power as the rural sector suffers from acute power shortage.

"The government should adopt a stable policy for encouraging private trade procurement. A liberal credit policy for farmers, large investments in developing infrastructure for storage and preservation of fruits and vegetables to avoid wastage, industry-friendly movement of the grains are some of the pre-requisites to achieve the desired results in the food processing sector in rural India," highlighted the ASSOCHAM study.

The governor said the need of the hour is to find out the ways to check the problems being faced by food processing sector and to understand emerging demand and trends in the food market.

On the occasion, Patil also released a book, Study on Value Addition in Agricultural Products in India.

A three-day exhibition dedicated to the Indian food industry, Annapoorna - World of Food India, 2012, will be held in Mumbai from September 26, providing an opportunity to participants to share information and know-how, and establish contact with prospective buyers.

The trade event will be organized by Koelnmesse YA Tradefair Pvt. Ltd., an Indian subsidiary of Koelnmesse GmbH, Germany and the Federation of Indian Chambers of Commerce and Industry (FICCI).

"As a pure B2B fair, Annapoorna - World of Food India offers the Indian food industry a unique platform for information, contacts and ordering. Annapoorna World of Food India is again concurrent to International Food Service India - trade fair featuring equipment for the food trade and catering services," said Koelnmesse in a press statement.

"This unique combination on one hand one hand makes the trade fair interesting for purchasers from all sales channels, such as the wholesale and retail trade, importers and trading companies and on the other hand, the fair also addresses experts from the out-of home market, such as catering companies, hotels, resorts, restaurants and food service suppliers," it added.

Koelnmesse said that the Indian food and beverage industry, with a population of more than 1.2 billion and food constituting a major part of the consumer's budget, has a prominence next to no other businesses in the country.

The Indian overall food consumption market is forecast to climb to USD344 billion in 2025, with compound growth at 4.1%. "Growing incomes, falling poverty, changing lifestyles and companies racing to capture India's middle and upper middle class consumers will cause the food market to evolve dramatically in the coming years," the organizer added.

The last edition of Annapoorna - World of Food India in 2011 was participated by 169 exhibitors from 17 countries and 6,295 trade visitors from 41 countries visited the event.

The forthcoming exhibition, which will be held at Hall no. 6, Bombay Exhibition Center, Mumbai, will have over 150 exhibiting companies from over 15 countries including country pavilions from Canada, Germany, Korea, Spain, Sri Lanka, USA and a concept pavilion on European food and beverages, according to the release.

The product lines going to be displayed by the exhibitors are expected to be witnessed by around 6000 trade visitors majorly from across the Indian sub-continent. The product spectrum at the fair ranges from basic foodstuffs, processed food and beverages, convenience products, frozen food products, dairy products, bakery goods, fruits and vegetables, etc.

The issue of basic research in food science is a neglected one and the Government is working on a master plan proposal to correct it in the 12th Plan, said Mr Ashok Sinha, outgoing Secretary, Ministry of Food Processing Industries (MoFPI).

“We need to boost our research and development in order to lessen wastage and the Ministry along with the industry has to now find answers through R&D for the problems that all stakeholders know exist,” said Mr Sinha.

He was speaking at a stakeholder consultation to identify focus areas in R&D in the area of food processing organised by FICCI.

The R&D allocation for the Ministry for 2011-12 is Rs 8 crore against Rs 6 crore for last year and 18 projects will be cleared this year, said Dr U. Venkateswarlu, Joint Secretary, MoFPI.

Dr T. Ramasami, Secretary, Ministry of Science and Technology, suggested the adoption of a consortium approach to R&D in public private partnership mode.

The world’s largest foods company, Switzerland-based Nestle, is all set to increase its dominance of the fast growing baby food market in India with the launch of its global brand Neslac, which it hopes will also help it increase its market share against rivals such as Farex from Heinz India.

“Honey-flavoured, with a blend of protein, iron, calcium and multivitamins, Neslac is expected to be formally launched soon,” at least two people familiar with the development told Financial Chronicle. The product will be priced at Rs 189 for a 500 gm pack, said the officials. In India, the infant nutrition brand is targeted at kids above two years of age. A Nestle India spokesman said the company “does not comment on market speculation”.

According to Mehul Desai, associate analyst with KR Choksey Shares & Securities, Nestle India commands almost 60 per cent of the Rs 1,500-crore infant foods and nutrition market with brands such as Cerelac and Nestum (infant foods), Lactogen, Nestogen and Nan (infant milk). “Nestle’s baby food and nutrition products comprise 15 per cent of the company’s total sales,” said Desai.

Neslac is positioned as a food for babies ranging from one to three years of age. It’s sold along with its variants under diverse names -- in markets like Pakistan and Malta it’s marketed as Neslac Honey with Bifidus, a probiotic; Neslac BL Bifidus with DHA in Singapore; Neslac Evaporated in Greece; Neslac Excella Gold in Malaysia; and Nelsac Gold Toddler in Australia amongst others.

The infant food market in India is a premium segment which offers companies high margins as Indian parents want the best for their babies, said marketers. “However, in India sales mainly come from metros. Consumers in tier-II and III cities still use traditional products. With more brands Nestle will try to move deeper into tier-II, tier-III and rural markets,” Desai said.

The Indian nutraceuticals market, estimated at $1 billion, has been growing at a compound annual growth rate of 18 per cent for the last three years, driven by functional food and beverages categories. However, the latent market in India is two to four times the current market size and is estimated at $2-4 billion with almost 148 million potential customers, according to a FICCI-Ernst & Young study titled “Nutraceuticals - Critical supplement for building a healthy India”.

For ensuring smooth credit flow to the food processing sector, the government must set up a specialised bank on the lines of Nabard which would ensure speedy disbursal of funds, a FICCI survey on Tuesday said.

“Private sector participation in food processing is limited because of high capital intensive nature of the business, volatility of farm loan advances along with with high transaction costs,” the FICCI survey titled ‘Challenges before the Indian Food Industry’ noted.

The survey also said that challenges for the food processing industry include lack of access to credit, paucity of processing plants with cost effective technologies, constraints in raw material production, lack of applied research, inadequate value addition, food safety laws, poor market intelligence.

Asking for incentives under the single window clearances, FICCI survey which covered 250 companies and a total of 125 responses, has asked for creation of single window so that no separate rules and regulations comes from different ministries to impact the sector.

It also points out that the growth in the food processing industry would result in increase in farm gate prices, reduce wastage, ensure value addition, promote crop diversification, generate employment opportunities as well as export earnings.

The food processing sector is plagued by inadequate infrastructure and lack of a comprehensive national policy, a FICCI survey reported today.

"Despite the Indian food industry's growth potential to touch $258 billion by 2015 from the current level of $181 billion...The industry is buffeted by 15 major challenges that have depressed its yield levels," a FICCI survey that comprised of 125 top industry officials' views across the country, said.

Inadequate infrastructure facilities and the need for a comprehensive national policy were the prime concerns voiced by the industry leaders. Availability of trained manpower, food safety laws and inconsistency in central and state policies are other areas of concern.

Shirjeet Mishra, Executive Director, HUL and also chairman of FICCI's Food Processing Committee, said processed food manufacturing firms were facing problems of inconsistent quality of raw materials and high levels of wastage, caused by a fragmented supply chain.

Quoting a KPMG report, he said the existing food cold storage facilities could accommodate 21.7 million tonnes of produce compared with the requirement of more than 31 million tonnes.

"A comprehensive national policy should incorporate tax breaks for the (food) processing (industry) and promote the development of valuable agri-business and agro-industry models, based on different agro-climates and regions," he said.

The government had recently pegged India's annual loss of agri products, fruits and vegetables at Rs one lakh crore and said that setting up of cold chains and back-end infrastructure could cut down losses by more than half.

Besides, rating agency Crisil had pointed out that almost 50 per cent of the annual wastages could be prevented if fruit and vegetable retailers had access to specialised cold storage facilities and refrigerated trucks.

The research firm estimates that the vegetable and fruit wastages in 2009-10 was at about Rs 63,000 crore.

Industry chamber FICCI today sought government intervention to set up a dedicated fund and a high level panel for faster development of the $181- billion food processing sector that is reeling under acute shortage of skilled manpower.

The rising demand for specific skill sets and available supply has eroded the competitiveness of the sector, the survey based study of FICCI said. The study on Rising Skill Demand: A Major Challenge for Indian Food Industry, reveals that about 60 per cent of the 250 participant firms were not satisfied with their employees' current level of technical skills and knowledge.

As the sector is projected to become a $285-billion industry by 2015, it would face further pressure on the manpower front, the study said, adding the sector would require 23 lakh production managers, engineers, quality controllers and R&D specialists. "Meeting this demand would be challenging, since 80 per cent of the total work force in the food processing sector comprises people having lower-end skill set," it said.

Due to lucrative job opportunities in other sectors, there was scarcity of production managers and engineers in this sector, which needs to be addressed, said the study.

Respondents felt that the courses offered by various institutions are outdated and it was imperative to review the course curriculum to match industry expectations. "The government should immediately formulate a task force of all the stakeholders...to get the course curriculum across all institutions and training institutes reviewed and updated," it said.

The chamber also felt there was a need for immediate adoption of ITI's by the food processing industry in various clusters to upgrade the lower-end skills. Besides, the government should allocate separate budget for human resource development.

Food prices are likely to soften by next month, according to the Planning Commission Deputy Chairman, Mr Montek Singh Ahluwalia.

Speaking at a seminar organised by FICCI, Mr Ahluwalia said the current inflationary trends are being fuelled by the food inflation.

He said, “At the moment, the dominant part of concern on inflation is food price inflation. With the fear of negative effect of drought being reduced, there will be a softening of food price inflation next month.”

The Planning Commission Deputy Chairman added that inflation at present is due to the problems in the supply side and not because of excess liquidity.

Delivering his special remarks at the seminar, Mr Ahluwalia said the timing of withdrawal of stimulus packages would be crucial, “Pre-mature withdrawal of stimulus packages might wipe out all the gains in the past year.”

He added that while the fiscal deficit of India has been considered to be high by the world over the years, at present it does not pose a problem.

“India's fiscal deficit should not be seen as overspending. India's debt-GDP ratio has traditionally been considered to be high, but the US and the UK's debt-GDP ratio is much higher than ours.” Mr Ahluwalia added that the Planning Commission would start interacting with Union ministries over the next two to three weeks over their demands for gross budgetary support for the next fiscal, amid reports that ministries have asked for a steep hike in resources in the Plan outlay.

“We have yet to get from handful of ministries their actual demands. But, the Planning Commission will now discuss with the ministries over the next two to three weeks, what their demands are, which ones of them are justified and to what extent they can be fitted within the resources available,'' he said.

“So, sometime between now and may be early February, we will have a number (for GBS). In the meantime, I am afraid, you just have to speculate. We have not even started the process,” added the Planning Commission Deputy Chairman.

The Federation of Indian Chambers of Commerce and Industry (FICCI) has taken up the cause of the food and beverage industry to oppose a government move to make celebrity brand endorsers responsible for product claims as part of a new advertisement code.

Food companies such as PepsiCo, Hindustan Unilever and Nestle have united under the industry association to take up the matter with the Food Safety & Standards Authority of India, an autonomous statutory body under the health ministry, that recently announced regulations on food advertisements.

“We are discussing the matter with the food authority to find a solution. There is ambiguity in the terms of interpretation of the proposed advertising code, and there are grey areas that need to be sorted out,” said Sameer Barde, assistant secretary general at Ficci.

When contacted, PI Suvrathan, the chairperson of the Food Safety & Standards Authority of India (FSSAI), said the authority was looking into the matter. “Industry has expressed concern and we are examining if some clarity is required. But we will go ahead with our overall plans on claims made in advertisements of foods and beverages.”

One of the clauses in the proposed advertisement code says, “celebrities and prominent people who promote food should recognise their responsibility towards society and not promote food in such a way so as to undermine a healthy diet”.

Celebrity endorsements are common in the food and beverage industry, be it MS Dhoni endorsing Pepsi or Aamir Khan promoting Coca-Cola. Making endorsers accountable for the claims brands make will impact thousands of companies, said Mr Barde.

The proposal has invited criticism from advertising and talent management firms as well. “Celebrities can only be held responsible if, for example, they talk to under-age consumers, or promote over-consumption,” said Rohit Ohri, managing partner at JWT, India’s largest ad agency that works on the PepsiCo account among others.

Pepsi has a history of using some of the country’s highest paid brand ambassadors including Amitabh Bachchan, Shah Rukh Khan and MS Dhoni.

An official of a leading Mumbai-based foods company, who did not want to be named, said, “Sachin Tendulkar promotes consumption of eggs as part of a National Egg Coordination Committee (NECC) campaign, so can it be construed that if you eat eggs, you can become as good as Sachin?”

Anirban Das Blah, MD of talent management firm Kwan, said that the celebrity has no way of verifying product claims. “It is the company that is obligated to verify claims if the need arises,” he said. The code of self regulation in all advertising of foods and beverages is being implemented by the health ministry under the Food Safety & Standards Act.

It was made public to companies in October-end. As of now, there is no legal framework regulating advertising standards in India, and the Advertising Standards Council of India (ASCI) only monitors ads which make misleading claims.

Most countries around the world monitor or regulate content of food and beverage advertising through self-regulation. Globally, companies like Unilever, Coca-Cola, PepsiCo, Kellogg’s, General Mills, Kraft Foods and General Mills have come together under the EU Pledge to self-regulate responsible advertising.

The Federation of Indian Chambers of Commerce and Industry (FICCI) has taken up the cause of the food and beverage industry to oppose a government move to make celebrity brand endorsers responsible for product claims as part of a new advertisement code.

Food companies such as PepsiCo, Hindustan Unilever and Nestle have united under the industry association to take up the matter with the Food Safety & Standards Authority of India, an autonomous statutory body under the health ministry that recently announced regulations on food advertisements.

“We are discussing the matter with the food authority to find a solution. There is ambiguity in the terms of interpretation of the proposed advertising code, and there are gray areas that need to be sorted out,” said Sameer Barde, assistant secretary general at FICCI.

When contacted, PI Suvrathan, the chairperson of the Food Safety & Standards Authority of India (FSSAI), said the authority was looking into the matter. “Industry has expressed concern and we are examining if some clarity is required. But we will go ahead with our overall plans on claims made in advertisements of foods and beverages.”

One of the clauses in the proposed advertisement code says, “celebrities and prominent people who promote food should recognise their responsibility towards society and not promote food in such a way so as to undermine a healthy diet”.

Celebrity endorsements are common in the food and beverage industry, be it MS Dhoni endorsing Pepsi or Aamir Khan promoting Coca-Cola.

Making endorsers accountable for the claims brands make will impact thousands of companies, said Mr Barde.

The proposal has invited criticism from advertising and talent management firms as well. “Celebrities can only be held responsible if, for example, they talk to under-age consumers, or promote over-consumption,” said Rohit Ohri, managing partner at JWT, India’s largest ad agency that works on the PepsiCo account among others.

Pepsi has a history of using some of the country’s highest paid brand ambassadors including Amitabh Bachchan, Shah Rukh Khan and MS Dhoni.

An official of a leading Mumbai-based foods company, who did not want to be named, said, “Sachin Tendulkar promotes consumption of eggs as part of a National Egg Coordination Committee (NECC) campaign, so can it be construed that if you eat eggs, you can become as good as Sachin?

Anirban Das Blah, MD of talent management firm Kwan, said that the celebrity has no way of verifying product claims. “It is the company that is obligated to verify claims if the need arises,” he said. The code of self regulation in all advertising of foods and beverages is being implemented by the health ministry under the Food Safety & Standards Act.

It was made public to companies in October-end. As of now, there is no legal framework regulating advertising standards in India, and the Advertising Standards Council of India (ASCI) only monitors ads which make misleading claims.

Most countries around the world monitor or regulate content of food and beverage advertising through self-regulation. Globally, companies like Unilever, Coca-Cola, PepsiCo, Kellogg’s, General Mills, Kraft Foods and General Mills have come together under the EU Pledge to self-regulate responsible advertising.

India's food industry is poised to grow by a huge 42.5 per cent to $258 billion by 2015 from $181 billion, throwing up opportunities for investments across the entire value chain, says a study. The study by FICCI-Ernst & Young said the per capita disposable income has increased by 8% over the last five years. And "a large part of the increase in income will go towards expenditure on food." "The current per capita expenditure on food is 1/6th that of China and 1/16th that of US with a significant opportunity for growth in the future," it said.

The Indian food industry is poised to grow by 42.5 per cent from Rs. 8, 43,460 crore ($ 181 billion) to Rs.12, 02,280 crore ($ 258 billion) by 2015 and at the rate of 76 per cent to Rs.1481880 crore ($ 318 billion) by 2020, throwing up huge opportunities for investment across the entire value chain, according to a study done by FICCI in collaboration with Ernst and Young.

The study, ‘Flavours of Incredible India – Opportunities in the Food Industry’ notes that the Indian food industry was a significant part of the Indian economy, with food constituting about 30 per cent of the consumer wallet. The key drivers for growth in the sector are an increase in per capita disposable income by eight per cent over last five years that has led to an increase in per capita consumption expenditure on food by 20 per cent over the same period.

India is one of the largest producers of milk and meat products. The contributors or producers can look forward to increase yield substantially through better technology and processes. As a result, the sector presents opportunities for participation amongst players in farming, infrastructure, storage and logistics, etc. to meet the demand of food products both locally as well as the international markets, says the report.

The study noted that there were three key critical success factors that needed to be considered to tap the opportunity offered by the Indian food industry.

These include the local market delivery incorporating local tastes and preferences, price-value offering and communication to increase consumer awareness.

A significant study released by FICCI and Ernst & Young has revealed that the Indian food industry is pegged to grow by a whopping 42.5 per cent from $181 billion to $258 billion by 2015. By 2020, the industry size is expected to reach a figure of $318 billion. This steady and remarkable growth is expected to boost investment across the value chain, according to the study.

The findings of the study suggest that an increase in per capita disposable income by 8 per cent over the past five years has simultaneously led to an increase in per capita consumption expenditure on food by 20 per cent over the same period. A large part of the increase in income will go towards expenditure on food, the study points out.

The study discloses that as much as 70 per cent of the current food spending by the Indian consumer is on agri-products. Additionally, two-thirds of this spending is on primary and secondary processed products. In agri-products, fruits and vegetables is the largest consumption category and accounts for over 50 per cent of the total volume of food consumption.

Milk and milk products and meat and marine products contribute the remaining 30 per cent of consumer food spending. However, they have been growing at a faster rate as compared to agri products.

Some of the opportunities in the flourishing food sector in India at present include setting up of warehouses, infrastructure, growth in food consumption and spending and creating an expanding base for value added products. Food companies can now redefine their goals. They can test the increasing per capita consumption and spending power of the Indian consumer through new product introduction, improved availability and targeted consumer education. The study states, “While India’s consumption of grains and cereals is comparable to global levels, an opportunity exists for companies to drive and increase the consumption of fruits and vegetables, milk and milk products and meat and marine products.”

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To help the Indian food sector become a Rs 13,20,000-crore industry by 2015, FICCI has asked the Centre to take some steps including setting up of an inter-ministerial working group to clear the bottlenecks in this area. The inter-ministerial working group should be under the leadership of the ministry of food processing and address issues that are holding this sector back, the industry body said in a statement. The domestic food industry was at Rs 8,80,000 crore in 2006-07, the FICCI said. The chamber had also asked the government to restructure tax system to reduce the impact of multiple levies on this sector that will help in lowering the end prices of products. Besides, it also recommended creating a better environment for modern food retailing and implementing the amended Agricultural Produce Market Committee (APMC) Act and the Food Safety and Standards Act (FSSA). It said the retail industry would be a major driving factor for the food industry as the retail sector is likely to grow by 30 per cent in the next five years.