nl food processing july 25 - july 31, 2015

© Gyan Research and Analytics Pvt. Ltd., 2015

Policy News ❑ SOPA and USSEC sign MoU to promote soya foods A Memorandum of Understanding (MoU) was signed by the Soya Oil Processors Association (SOPA) and the US Soyabean Export Council (USSEC) to increase exports to India. Only 5 out of the 8 million tonnes of soya meal produced is for local consumption. Hence, the local consumption is being increased so that dependence on exports could be reduced. However, the USSEC has signed this agreement in the hope that India would emerge as a platform for exports of soyabean from the US. But the deal with the USSEC might incur a loss for SOPA, since imports might get cheaper. According to this agreement, both the parties would be working with the Indian government. Soyabean would be included in midday meals and people would be made aware about soya food products which would facilitate development of new products.

Industry News ❑ Food Safety bans sale of jaggery A ban has been imposed by the Food Safety Department on the sale of 5 tonnes of jaggery near Chitode, on suspicion of adulteration. In a raid, officials found that five out of 15 tonnes of jaggery and its powder were mixed with sodium hydro sulphate, an injurious chemical that brings colour while transforming sugarcane juice into jaggery. Market authorities have been prohibited from selling jaggery until further decision.

❑ Venky’s under FSSAI scanner; reduces processed chicken products supply Venky’s, a subsidiary of VH Group of Pune, has cut down its supply of processed foods for the last two months after coming under the Food Safety and Standards Authority of India’s (FSSAI) scanner. Venky's crispy chicken burger patty and chicken Arabic style kofta failed to make the FSSAI cut in April. According to Venky’s, Codex and EU standards are followed for all products. Besides delivering to meat retailers, Venky’s also supplies to Dominos, McDonalds and KFC. According to some retailers in Mumbai, it is having distribution problems.

❑ FDA raids Amul godown The Food and Drugs Administration (FDA) raided the Amul godown in Ghaziabad and took away six different milk product samples for analysis in the regional testing laboratory. The samples that were taken for testing included standardised milk, homogenised milk, badam shake, fresh cream, ice creams and ghee. The officials also ordered the destruction of milk pouches that were stocked in the godown and were curdling. According to Amul, curdling occurs due to the damage during transit.

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Food Processing NewsJuly 25, 2015 – July 31, 2015


❑ Food processing to grow by 40 – 50 percent The potential growth of the food processing sector has been projected at 40 to 50 percent per year. Food processing could be the most prominent industry in the ‘Make in India’ programme. By standardizing hygiene and cleanliness, food products could enter the global markets as well.

❑ McCain, Kellogg and Tata Starbucks fail to receive FSSAI approval The FSSAI has rejected applications from McCain, Kellogg and Tata Starbucks on the ground that proper supporting documents for assessment of safety were not submitted. Kelloggs’ K Oats and Honey & K Red Berries were rejected, along with red bean sauce, sea salt and honey vanilla flavoured syrup. McCain Foods’ Battered Pepper and Cheese Bites and 34 items of Tata Starbucks were also rejected. In cases of non-‐compliant samples, steps are taken by FSSAI or state authorities, in accordance to FSS Act, 2006. Investment News

❑ Dabur enters ready-‐to-‐drink segment Dabur has forayed into the ready-‐to-‐drink beverages segment with the launch of its latest product Hajmola Yoodley. The product comes in six variants -‐ Kabhi Kala Kabhi Khatta, Golmaal Golgappa, Jhakaas Jaljeera, Go Goa Guava, Nimboora Shikanji and Awaara Aam Panna. A pack of 250 ml would be priced at INR 30. A campaign to promote Hajmola Yoodley has also been planned.

❑ Hector Beverages hires Maxus Hector Beverages has hired communications consultant Maxus as the media agency for its Paper Boat brand. Maxus bagged the account following a multi-‐agency pitch. For the distribution of its beverages across general outlets, Hector Beverages has inked an agreement with Indo Nissin, the manufacturer of Top Ramen.

❑ Lulu Group and Kahala sign tie-‐up Lulu Group’s food and beverage segment, Tablez Food Company, has signed a deal with Kahala Brands of the US to facilitate the entry of Cold Stone Creamery into India and Sri Lanka. Besides setting up 40 outlets, Tablez would make an investment of INR 75 -‐ 85 crore in the next five years. The first outlet in India would be set up Kochi, followed by outlets in Bangalore and other Tier-‐I cities; five stores have been planned in Sri Lanka as well. Further, Tablez would invest around INR 160 crore for the expansion of its food and beverage business in India. Apart from partners for the Cold Stone brand the company is looking to acquire food and beverage companies in the country.

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Source: Ministry Of Food Processing Industries

Weekly Snapshot

Scheme-‐wise Expenditure in Food Processing Industry in 2014-‐15 (*till December 31, 2014)

Plan Budget Estimate (INR Crore)

Revised Estimate (INR Crore)

Actual Expenditure*

Scheme for Infrastructure Development 315.00 229.62 227.87

Scheme for Technology Upgradation/ Establishment/ Modernization of Food Processing Industries

160.00 157.03 144.16

Scheme for Quality Assurance, Codex Standards, R&D and Promotional Activities

36.00 41.28 37.63

Scheme for Human Resource Development 4.00 3.75 3.64

Scheme for Strengthening of Institutions 75.00 43.00 41.42

National Mission on Food Processing 180.00 125.32 124.77

Capital Section 0 0 0

Total Plan 770 600 579.49

Deduct Recoveries -‐ -‐ 11.93

Net Total (Plan) 770 600 567.56

Total Non-‐plan 15.86 17.74 10.82

Deduct Recoveries -‐ -‐ -‐

Net Total (Non-‐plan) 15.86 17.74 10.82

Grand Net Total (Plan + Non-‐plan) 785.86 617.74 578.38

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