indian initiatives in traceability ……… approaching towards...

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___Asia-Pacific Trade Facilitation Forum 2011

4th-5th October, 2011

Seoul, Korea

______________

Indian initiatives in Traceability

……… approaching towards

Single window Certification

Sudhanshu

Deputy General Manager, APEDA,

Ministry of Commerce & Industry&

Vice President, GS1 India

Ministry of Commerce & Industry

___Asia-Pacific Trade Facilitation Forum 2011

4th-5th October, 2011

Seoul, Korea

______________

Indian initiatives in Traceability

……… approaching towards

Single window Certification

Sudhanshu

Deputy General Manager, APEDA,

Ministry of Commerce & Industry&

Vice President, GS1 India

Ministry of Commerce & Industry

11


What is What is TraceabilityTraceability in General ?in General ?

• Ability to trace the history, use or location of an entity by means of recorded information

• Ability to follow the movement of food through specified stages of production, processing and distribution


Traceability as per Codex

• Ability follow the movement of food through specified stages of production, processing and distribution.”

Codex Alimentarius Commission


Why Why TraceabilityTraceability is required ?is required ?

• Food safety and traceability is becoming concern of importing countries

• Due to increasing consumer awareness about food safety aspects, such tools are required


Traceability Drivers- Stringent Regulatory/buyer requirements

Demanding regulations:

� US FDA’s speed related traceability requirement – 4 hrs. one up / one back reqmts.

� EU Food Law (178/2002 –General Principles and reqmts of European Food Law)

� U.S. Bioterrorism Act (2002)

� ISO 22005: 2007

� HACCP (ISO 22000:205)

� BRC (British Retail Consortium), IFS (Int’l Food Std –German/French distribution cos)

� SQF (US Food Marketing Institute)

� Can-Trace (Canadian Food Law)

� Food Sanitation Law (Japan)

� HR 2749 – The Food Safety Enhancement Act of 2009


Traceability Drivers- Consumer concerns and needs

Was this grown organically?

Do they test their products on animals?

Is this healthy?

Does it contain peanuts or other

allergens?

Is the packaging

recyclable?

Are the employees treated well and

paid fairly?

Does this company act responsibly

toward shareholders?

Is the farming and harvesting done in a sustainable fashion?

Could I get this less expensively?

They ask themselves many questions

before making a purchase.

Today's consumers are informed and aware.


What approach is required ?What approach is required ?

� Firstly, evolve national procedures & policies for Quality

& Product Standardization, co-opting all stakeholders in

the supply chain from Public and Private sector, for each

product

� Secondly, put in place the Standards & Agencies

� Thirdly, build centralized, national level, internet based,

traceability system, with low cost of ownership for India’s

large number of farmers & entrepreneurs


Recent outbreak of E.Recent outbreak of E.ColiColi in Germanyin Germany

• The issue began in the second week of May .

• More than 10,000 samples were taken and analyzed and

E.Coli could not be detected and confirmed

• On 5th July , the case was closed after identification of

the food and the source of infection

• The learning from the investigation was that the only way

out is to intensify the investigation on tracing back

and tracing forward


Final outcome Final outcome -- TraceabilityTraceability

• Provides a tool for the establishment of product

authenticity, reliability, identification of the problem

areas for the purposes of tracking and product

recall


Traceability Drivers

Lack of traceability exposes food companies to huge risksLack of traceability exposes food companies to huge risks

E.Coli contaminated spinach recall...

Then it spread to lettuce

...became a criminal investigation

China Milk Recall


Traceability Drivers

• Recall of 9.5 million

toys in US and 11

million in others

countries.

Europe – Belgium- Coca Cola

Recall

• 5 months to recover the sales

• 249 cases of illnesses in

Belgium

• Recall of 15 million cans and

bottles

• Crisis cost $200 million in

expenses and lost profit

U.S. – Toys Recall


67% of Food Companies with

$5 B or More in Sales had Recalls that Cost $20 M

or More in 2007

Source: AMR Research

GrapeN etG rapeN etG rapeN etG rapeN et Source: AMR Research


Connection betweenTraceability and recalls

Traceability system provides:

� Visibility to location of food products/consignments in Supply Chain

� Unique identification of each player in Supply Chain (raw matls supplier to

finished products mfgr to intermediate distribution chain partners to retailer)

� Unique identification of products/consignments and qty held in Supply Chain

and by whom

“Accurate, timely and fast recalls can only be effected if traceability systems

which provide accurate product identification, partner identification and location

of products/ consignments at all times are in place”

Recall is a use case of traceability


Command and Control – national Recall situation Map

60 minutes after Recall Released – show GLN locations who have

opened Recall Notification and have submitted questions (Orange). NOTE ISSUE WITH GA


Command and Control – global recall situation Map


Traceability -Indian initiatives

Traceability -Indian initiatives


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APEDAAPEDA’’s s GrapeN etG rapeN etG rapeN etG rapeN etG rapeN etG rapeN etG rapeN etG rapeN et

AA traceabilitytraceability System for Fresh System for Fresh

Grapes Exported from India to EU Grapes Exported from India to EU

a pilot for promoting exports in a pilot for promoting exports in

Indian Agriculture SectorIndian Agriculture Sector


Grapes Scenario in IndiaGrapes Scenario in India

• Grapes is among the Top Ten Fruits of India, in terms of

production

• 1.6 million metric tons produced, majority in

Maharashtra, Andhra Pradesh & Karnataka

• 40000 plus farmers

• 100 plus exporters

• India is the 12th largest producer in the world, but among

the highest in terms of productivity per hectare1919


Maharashtra

Andhra PradeshKarnataka

Grape Growing StatesGrape Growing States


2121

•• Registration, record keeping & monitoring of farmsRegistration, record keeping & monitoring of farms

•• Product standardization & inspection strengthenedProduct standardization & inspection strengthened

•• Implementation of Good Agricultural Practices Implementation of Good Agricultural Practices

•• Exports only from recognized packExports only from recognized pack--houseshouses

•• Pesticide Residue analysis by ISOPesticide Residue analysis by ISO--1702517025

•• NABL compliance labs.NABL compliance labs.

•• Setting up of NRL for periodic checks and alertsSetting up of NRL for periodic checks and alerts

•• Regular training programs for all concernedRegular training programs for all concerned

What was done beforeWhat was done before GrapeNetGrapeNet ??


2222

� STAGE I: a Government of India regulation - Regulation of

Export of Fresh Grapes from India through monitoring of pesticide

residues.

�Standards to meet international market demands

�Agencies to test compliance with these standards

�And no export of fresh grapes can happen to European Union

without adhering to this system.

� STAGE II: IT enable the regulation, compliance and monitoring

�integrating all the stakeholders in the supply chain of Grapes

export from India, with a centralized database.

APEDAAPEDA’’ss ImplementationImplementation


No

Yes

Fail

Pass

Forwarded to Lab

Print label By Exporter Deposited amount

With Cheque/DD

State Govt. Agency

Laboratory

Register Farm

Sample Collection

Recommendation

(after 45 days)

You cannot export from this farm

Sample Receive at Lab Payment for Testing

Exporter

Lot Creation

Create/Print Pallet Label

Add Packing

Details

Forward

To lab

Lot Creation

Generate Agmark

Inspection id

Agmark Inspection

report entry

Payment

For CAG (optional )

Payment for CAG

Issue CAG Certificate

Payment for PSC Issue PSC Certificate

Create Consignment

Agmark

Lot Forward by Exporter

CAG ID

Payment by Lab

PSC Payment for PSC Issue PSC Certificate

Apply for PSC

Residue Analysis GrapeN etG rapeN etG rapeN etG rapeN et:

Functions


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�� An internet basedAn internet based traceabilitytraceability software systemsoftware system

�� Monitors fresh grapes exported to the European UnionMonitors fresh grapes exported to the European Union uptoupto the farm the farm level. level.

�� An endAn end--toto--end system for end system for �� monitoring pesticide residue, monitoring pesticide residue,

�� achieve product standardization and achieve product standardization and

�� facilitate tracing back from retail shelves to the farm of the Ifacilitate tracing back from retail shelves to the farm of the Indian ndian grower, grower,

�� through the various stages of sampling, testing, certification athrough the various stages of sampling, testing, certification and nd

packingpacking. .

GrapeN etG rapeN etG rapeN etG rapeN etG rapeN etG rapeN etG rapeN etG rapeN et featuresfeatures

�� Direct stakeholders of APEDA Direct stakeholders of APEDA

are Exporters, Pack houses / are Exporters, Pack houses /

processing plants, processing plants,

Laboratories & State Laboratories & State

Government DepartmentsGovernment Departments

�� Farmers are indirect stake Farmers are indirect stake

holders, through State holders, through State

Agriculture / Horticulture Agriculture / Horticulture

departments departments


2525

GrapeN etG rapeN etG rapeN etG rapeN etG rapeN etG rapeN etG rapeN etG rapeN et at www.at www.apedaapeda..govgov.in.in


PhytosanitaryCertificate (PSC)

number

S(MAH)2/GR/0000


S(MAH)2/GR/0000


Agmark Certificate Number

GEO/GR/09/0000


GEO/GR/09/0000


AgmarkInspection Report ID

200922066513


200922066513


ResidureAnalysis Report

2/01335/02/0900


2/01335/02/0900 MH06091148102


Residue Analysis Report

MH06091148102


MH06091148102


AuthorisedPacker


Exporter


TraceabilityTraceability at displayat display

• Traceability through labels pasted on Pallets/Cartons

• Pasted in barcode as well as

Human readable format

• Leads to the Plots from where

Grapes have been sourced

GrapeN etG rapeN etG rapeN etG rapeN et – a live preview


4343

Major GainsMajor Gains

• Self confidence among farmers

• Culture for food quality and safety

• Farmers earned 40% more value

• Benefits went to 40,000 farmers and 115 exporters

• FOB realization rose from 8 Euro to 11.5 Euro per

carton of 3 kg.

• Value – addition through improved packaging

• EU labs accepted that Indian labs are better

GrapeN etG rapeN etG rapeN etG rapeN et44

Accolades - GrapeNet

� National Award for E- Governance (Year 2008)

� E Asia Award (Year 2009)


Further Developments

• Success in grapes sector encouraged to

replicate and set up traceability system for :

o Pomegranates (AnarNet)

o Organic products (TraceNet)

o Peanuts (Peanut.Net)

o All fruits & Vegetables

(HortiNet – Under development)


Tracenet Coverage

• Farmers : 4.7 lakhs

• Individual operators : 1101

• Certification bodies : 20

• Scope certificates : 4064

• Transaction certificates : 11469

• Stakeholders : Farmers, Exporters, Certification bodies,

Laboratories


First Traceability system for export of organic products from India implemented at National

Level


Tracenet CertificatesTracenet CertificatesScope CertificatesScope CertificatesScope Certificates Tracenet CertificatesTracenet Certificates


Tracenet CertificatesTracenet Certificates

Transaction CertificatesTransaction CertificatesTransaction Certificates


Certificates of ExportCertificates of ExportCertificates of Export

Peanut.Net CertificatesPeanut.Net Certificates


Stuffing CertificateStuffing CertificateStuffing Certificate



Certificate of AnalysisCertificate of AnalysisCertificate of Analysis



Overall achievementOverall achievement

• All mandatory certificates generated before customs

which leads to single window certificate ( to the

possible extent)

• Setting up of National MIS for the product

• Organising the supply chain

• Assurance to buyers


Future vision

• Integeration with customs to make a single

window certification system with traceability

• Cover other products in the ambit of

traceability


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indian initiatives in traceability ……… approaching towards...

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