Food Processing Industry: Issues and Developments
Should packaged food content be labelled?
Note4Students
From UPSC perspective, the following things are important :
Mains level: Should packaged food content be labelled?
Why in the News?
A report by the Access to Nutrition Initiative (ATNi), a global non-profit, reveals that food and beverage companies generally sell less healthy products in low- and middle-income countries (LMICs) than in high-income countries (HICs).
What does the report published by the Access to Nutrition Initiative state?
- Lower Health Ratings in LMICs: The report assessed 52,414 products from 30 of the world’s largest food and beverage manufacturers. It found that products sold in LMICs had an average Health Star Rating (HSR) of 1.8, whereas those in HICs averaged 2.3. This indicates that the portfolios of these companies are less healthy in poorer markets.
- Healthier Product Sales: Only 30% of the assessed companies have a strategy to price their healthier products affordably for lower-income consumers. This lack of accessibility contributes to dietary issues in these regions.
- Micronutrient Data Availability: The report highlighted that micronutrient data were available for a smaller proportion of products in LMICs compared to HICs, complicating efforts to address nutritional deficiencies.
- Call for Action: The ATNi challenges companies to derive at least 50% of their sales from healthier products by 2030, a target that only a small fraction currently meets.
How does a Health Star rating system work?
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Why have non-communicable diseases become so common in India?
Non-communicable diseases have become increasingly prevalent in India due to several factors:
- Dietary Shifts: There has been a significant increase in the consumption of highly processed foods that are high in sugars and fats, contributing to obesity and diabetes.
- According to the Indian Council of Medical Research (ICMR), unhealthy diets account for over 56% of the total disease burden in India.
- Affordability Issues: More than 50% of Indians cannot afford a healthy diet, exacerbating nutritional deficiencies alongside rising obesity rates.
- Lifestyle Changes: Reduced physical activity and urbanization have also played roles in this epidemic, leading to a dual burden of undernutrition and obesity.
Can front-of-pack labelling help?
Front-of-pack labeling could significantly influence consumer behavior and public health outcomes:
- Effectiveness of Warning Labels: Studies from countries like Chile and Mexico show that mandatory warning labels on sugary beverages have led to decreased consumption. This suggests that clear labeling can help consumers make healthier choices.
- Need for Mandatory Policies: Activists argue that voluntary measures taken by companies have been insufficient. They advocate for mandatory regulations on front-of-pack labeling to effectively communicate nutritional information related to high sugar, fat, and sodium content.
Conclusion: The Access to Nutrition Initiative report emphasizes the urgent need for healthier food portfolios in LMICs (Low- and Middle-Income Countries), equitable pricing, and front-of-pack labeling to combat non-communicable diseases. These steps align with SDG 3 (Good Health and Well-being), promoting healthier lives globally.
Mains PYQ:
Q Can the vicious cycle of gender inequality, poverty and malnutrition be broken through microfinancing of women SHGs? Explain with examples. (UPSC IAS/2021)
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Food Processing Industry: Issues and Developments
Wide-ranging reforms undertaken in food-processing sector in last 10 years
Note4Students
From UPSC perspective, the following things are important :
Mains level: Food Processing Industry;
Why in the News?
Prime Minister Narendra Modi stated on Thursday that over the past decade, India has implemented “comprehensive” reforms to revolutionize the food-processing sector.
What are the steps taken by Govt in food processing industry in India?
- Priority Sector Lending: In April 2015, food and agro-based processing units were included as agricultural activities under the Priority Sector Lending norms, facilitating easier access to credit for these businesses.
- FDI Policies: The government allows 100% Foreign Direct Investment (FDI) under the automatic route for the food processing sector, encouraging foreign investment and technological transfer.
- Special Food Processing Fund: A fund of ₹2,000 crore was established with NABARD to support food processing projects and infrastructure development.
- Regulatory Reforms: The Food Safety and Standards Authority of India (FSSAI) shifted from product-by-product approvals to an ingredient-based approval process in 2016, simplifying compliance for businesses.
- Infrastructure Development: Initiatives such as the Pradhan Mantri Kisan Sampada Yojana (PMKSY) aim to create a robust infrastructure for food processing through cold storage facilities, processing units, and logistics support.
Status of food processing industries in India
- Economic Contribution: The sector accounts for approximately 13% of India’s total exports and 6% of industrial investment. It is expected to generate around 9 million jobs by 2024.
- Growth Rate: The industry has been growing at an average annual rate of about 11.18% over recent years, indicating significant potential for expansion.
- Market Share: Despite being one of the largest producers of agricultural commodities, India’s food processing sector represents only about 10% of total food production.
What are the still challenges present in food processing industry in India?
- Inadequate Infrastructure: A lack of cold storage and transportation facilities leads to over 30% post-harvest losses.
- Fragmented Supply Chains: The supply chain is highly fragmented, causing inefficiencies and increased costs due to poor connectivity and coordination among stakeholders.
- Regulatory Complexities: The industry is burdened by a complex web of regulations that can hinder business operations and compliance efforts.
- Lack of Skilled Labor: There is a significant shortage of skilled professionals in areas such as food technology and quality control, which hampers innovation and adherence to safety standards.
- Limited Technology Adoption: Many processors still rely on outdated technologies, which affects productivity and product quality. High costs and lack of technical expertise further inhibit technological advancements.
What should be done by Govt to resolve these challenges? (Way forward)
- Infrastructure Investment: Increase investments in cold chain logistics and transportation infrastructure to minimize post-harvest losses and improve supply chain efficiency.
- Financial Support Mechanisms: Facilitate easier access to finance through specialized loans for small and medium enterprises (SMEs) in the food processing sector.
- Skill Development Programs: Enhance vocational training initiatives focused on food technology and safety management.
- Regulatory Simplification: Streamline existing regulations to reduce bureaucratic hurdles. A unified regulatory framework could help clarify compliance requirements and foster a more conducive environment for business operations.
- Promote R&D Investment: Encourage investment in research and development to foster innovation within the sector.
Mains PYQ:
Q Elaborate the policy taken by the Government of India to meet the challenges of the food processing sector. (UPSC IAS/2019)
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Food Processing Industry: Issues and Developments
[pib] FSSAI Directive on Fruit Juices
Note4Students
From UPSC perspective, the following things are important :
Prelims level: FSSAI and its Functions, Various initiatives led
Why in the News?
- FSSAI has mandated the immediate removal of any claims stating ‘100% fruit juices’ from labels and advertisements of reconstituted fruit juices by all Food Business Operators (FBOs).
- FBOs must utilize existing pre-printed packaging materials before September 1, 2024, to comply with the directive.
Compliance Guidelines on Fruit Juices
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Issues with such ‘Sweetened juice’
- Misleading Marketing Practices: FSSAI has observed numerous FBOs inaccurately labelling various types of reconstituted fruit juices as 100% fruit juices.
- Regulatory Assessment: Upon evaluation, FSSAI determined that such claims are misleading, especially when the major ingredient is water, and the primary ingredient is present in limited concentrations or when the juice is reconstituted using water and fruit concentrates or pulp.
About Food Safety and Standards Authority of India (FSSAI)
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Functions of FSSAI include:
- Setting Standards: FSSAI sets standards for food products and regulates their manufacture, storage, distribution, sale, and import, to ensure that food items are safe for consumption.
- Licensing and Registration: FSSAI grants licenses and registrations to food businesses based on their compliance with food safety standards and regulations.
- Inspections and Monitoring: FSSAI conducts inspections, surveillance, and monitoring of food products and food businesses to ensure compliance with food safety standards.
- Awareness and Education: FSSAI works towards creating awareness about food safety and hygiene among food businesses and consumers. It provides information and education programs to promote safe food handling practices.
- Research and Development: FSSAI undertakes research and development activities related to food safety and standards.
Health Awareness Initiatives by FSSAI
- “Heart Attack Rewind”: This is FSSAI’s inaugural mass media campaign, designed to support its goal of eliminating trans-fat from India by 2022.
- FSSAI-CHIFSS Collaboration: FSSAI has partnered with the CII-HUL Initiative on Food Safety Sciences to foster collaborations between industry, the scientific community, and academia to enhance food safety.
- State Food Safety Index (SFSI): Developed by FSSAI, the SFSI evaluates states’ performance on five key parameters of food safety: Human Resources and Institutional Data, Compliance, Food Testing Infrastructure and Surveillance, Training & Capacity Building, and Consumer Empowerment.
- Eat Right India Movement: This is a joint initiative by the Government of India and FSSAI aimed at revolutionizing the country’s food system to ensure safe, healthy, and sustainable food for all citizens.
- Eat Right Station Certification: FSSAI awards this certification to railway stations that meet the benchmarks outlined in the Food Safety and Standards Act, 2006, ensuring the provision of safe and wholesome food to passengers.
PYQ:[2018] Consider the following statements:
Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 |
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Food Processing Industry: Issues and Developments
38% Indians consume fried snacks and processed foods, only 28% consume healthy food
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Global Food Policy Report 2024
Mains level: Emerging Trends in India related to the consumption of unhealthy food
Why in the news?
A global report highlights a significant rise in unhealthy food consumption in India, surpassing intake of vegetables, fruits, and other nutritious foods.
- Global Food Policy Report 2024: Food Systems for Healthy Diets and Nutrition was released by “the International Food Policy Research Institute (IFPRI)”.
About CGIAR:
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Emerging Trends in India:
- Increase in consumption of unhealthy food: There is a significant increase in the consumption of unhealthy foods such as salty or fried snacks compared to nutritious options like vegetables and fruits. About 38% of the population consumes unhealthy foods, while only 28% consume all five recommended food groups.
The consumption of processed foods and ready-made convenience foods is rising. From 2011 to 2021, malnutrition in India increased from 15.4% to 16.6%.The prevalence of overweight adults rose from 12.9% in 2006 to 16.4% in 2016.
Processed food consumption is on the rise in India
South Asian Highlights
- Processed Food Consumption: Increasing intake of processed foods like chocolates, salty snacks, beverages, and ready-made meals in India and other South Asian countries.
- Malnutrition Rates: High levels of undernutrition and micronutrient deficiencies coexist with rising rates of overweight, obesity, and diet-related noncommunicable diseases (NCDs).
- Food Budget Trends: Packaged food spending in India’s household food budgets nearly doubled from 6.5% to 12% between 2015 and 2019.
Issue of Double Malnutrition:
- Double malnutrition refers to the coexistence of undernutrition and micronutrient deficiencies with overweight and obesity, or diet-related noncommunicable diseases (NCDs).
- High levels of undernutrition (stunting and wasting) and micronutrient deficiencies persist even as overweight and obesity rates increase.
- More than two billion people, especially in Africa and South Asia, cannot afford a healthy diet.
Dietary Guidelines by ICMR:
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Way forward:
- Strengthen Nutritional Policies: Develop and enforce policies that promote the consumption of nutritious foods. Implement taxes on unhealthy foods and subsidies for fruits, vegetables, and other micronutrient-rich foods.
- Regulate Processed Foods: Implement strict regulations on the marketing of unhealthy foods, especially targeting children.
Mains PYQ:
Q How far do you agree with the view that the focus on the lack of availability of food as the main cause of hunger takes the attention away from ineffective human development policies in India? (15) (UPSC IAS/2018)
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Food Processing Industry: Issues and Developments
What is Shrinkflation?
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Shrinkflation
Mains level: NA
Why in the news?
- As input prices turn inflationary, the FMCG (Fast-Moving Consumer Goods) segment faces the spectre of shrinking packs, impacting consumer choices and industry dynamics.
What are FMCGs?
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What is Shrinkflation?
- Shrinkflation is a business practice where companies reduce the size or quantity of a product while keeping its price the same.
Causes for Shrinkflation:
- Cost Management: It helps companies manage rising production costs, such as raw materials or labor, without sacrificing profitability.
- Market Competition: In competitive markets, companies may use shrinkflation to maintain their market share by keeping their prices competitive.
Effects of Shrinkflation:
- Consumer Perception: If consumers notice the change, it can lead to negative perceptions of the brand, loss of trust, and reduced customer loyalty.
- Accuracy of Inflation Measurement: Shrinkflation complicates accurate measures of inflation since the price remains constant while the quantity decreases.
- Limitations: Companies can only implement shrinkflation discreetly and for a limited number of times before consumers become aware and react negatively. Overuse can damage brand reputation.
PYQ:[2015] With reference to inflation in India, which of the following statements is correct? (a) Controlling the inflation in India is the responsibility of the Government of India only (b) The Reserve Bank of India has no role in controlling the inflation (c) Decreased money circulation helps in controlling the inflation (d) Increased money circulation helps in controlling the inflation |
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Food Processing Industry: Issues and Developments
Mission Palm Oil: Achieving Self-sufficiency in Edible Oil Production
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Mission Palm Oil, Key stats on India's Edible Oil Imports
Mains level: NA
Why in the news-
- The Prime Minister highlighted the National Mission on Edible Oils – Oil Palm (NMEO-OP) during his visit to Arunachal Pradesh, inaugurating the first oil mill under this mission.
Why discuss this?
- This results in a substantial outflow of $20.56 billion in foreign exchange, the need for self-reliance in edible oil production has become paramount.
Edible Oil Consumption in India: Key Facts
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Mission Palm Oil: A Catalyst for Self-Reliance
- It is a Centrally Sponsored Scheme launched in 2021 targeting a substantial increase in oil palm cultivation and crude palm oil production.
- It has been introduced with a particular emphasis on the Northeast region and the Andaman and Nicobar Islands.
Objectives:
- Expand oil palm acreage by an additional 6.5 lakh hectares by 2025-26
- Increase crude palm oil production to 11.2 lakh tonnes by 2025-26, reaching up to 28 lakh tonnes by 2029-30.
- Increase consumer awareness to maintain a consumption level of 19.00 kg/person/annum till 2025-26.
Focus Areas
(1) Fixing of Viability Price
- Oil palm farmers currently produce Fresh Fruit Bunches (FFBs), from which the industry extracts oil.
- Presently, FFB prices fluctuate with international Crude Palm Oil (CPO) prices.
- The Government of India will now assure price stability for FFBs, known as Viability Price (VP), shielding farmers from international CPO price fluctuations.
- A Formula Price (FP), set at 14.3% of CPO and adjusted monthly, will be established. Viability gap funding will be the difference between VP and FP, directly disbursed to farmers’ accounts via Direct Benefit Transfer (DBT) when necessary.
(2) Input Assistance
- The scheme’s second major focus is to significantly enhance input assistance/interventions, including:
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- Increasing assistance for oil palm planting material from Rs. 12,000 to Rs. 29,000 per hectare.
- Boosting support for maintenance and intercropping interventions.
- Providing special assistance of Rs. 250 per plant for replanting old gardens to rejuvenate them.
- Offering special assistance tailored for the North-East and Andaman regions, including provisions for half-moon terrace cultivation, bio-fencing, land clearance, and integrated farming.
Try this PYQ from CSE Prelims 2019:
Among the following, which one is the largest exporter of rice in the world in the last five years?
(a) China
(b) India
(c) Myanmar
(d) Vietnam
Practice MCQ:
Consider the following statements:
- India is the world’s biggest importer of vegetable oils.
- The top three vegetable oil imports include – soybean, palm and groundnut oil.
Which of the given statements is/are correct?
(a) Only 1
(b) Only 2
(c) Both 1 and 2
(d) Neither 1 nor 2
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Food Processing Industry: Issues and Developments
Pioneering Collaboration for Lab-Grown Fish
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Lab-Grown Fish
Mains level: Read the attached story
Introduction
- ICAR-Central Marine Fisheries Research Institute (CMFRI), headquartered in Kochi, collaborated with Neat Meatt Biotech, a private-sector start-up specializing in lab-grown meat technology.
- This Memorandum of Understanding (MoU) marks the first initiative of its kind in India.
Understanding Lab-Grown Fish
- Lab-Grown Fish Definition: Lab-grown fish, a type of cultivated or cultured meat, is seafood produced in a laboratory setting without the need to raise and slaughter animals.
- Production Process: Specific fish cells are isolated and grown in a controlled laboratory environment using animal-free media. The goal is to replicate the taste, texture, and nutritional qualities of traditional fish meat.
Roles of CMFRI and Neat Meatt
- CMFRI’s Responsibilities: Under the MoU, CMFRI will focus on genetic, biochemical, and analytical aspects of the project. Its cell culture lab will research early cell line development for high-value marine fish species, including pomfret, kingfish, and seerfish.
- Neat Meatt’s Expertise: Neat Meatt, with expertise in cell culture technology, will lead in optimizing cell growth media, developing scaffolds or microcarriers for cell attachment, and scaling up production via bioreactors. The company will also provide consumables, manpower, and additional equipment.
Addressing the Need for Lab-Grown Fish
- Growing Demand: The demand for seafood is increasing, creating pressure on wild resources.
- Overfishing Consequences: Overfishing has led to population declines in certain species and negatively impacted marine ecosystems.
- Environmental Benefits: Lab-grown fish meat can reduce the reliance on traditional fishing, offering antibiotic-free, contamination-free, and pollution-free alternatives.
Global Pioneers in Lab-Grown Fish
- Leading Nations: Several countries are advancing lab-grown fish technology. Israel is a frontrunner, followed by Singapore, the United States, and China.
- Recent Developments: Israel-based Forsea Foods successfully produced lab-grown freshwater eel meat. Israel’s Steakholder Foods, in collaboration with Umami Meats in Singapore, 3D printed the first-ever ready-to-cook fish fillet from laboratory-grown animal cells.
Bridging India’s Gap
- Accelerating Development: The CMFRI-Neat Meatt partnership aims to expedite India’s progress in lab-grown seafood to ensure it doesn’t lag behind countries like Singapore, Israel, and the USA.
- Leveraging Expertise: CMFRI’s marine research and Neat Meatt’s technological prowess form a collaboration that promises a sustainable future for seafood production in India.
- Timeline Expectation: Dr. Sandeep Sharma of Neat Meatt anticipates establishing the project’s proof of concept within a few months.
Expanding Lab-Grown Meat
- Wide Range: Beyond fish, lab-grown meat development encompasses chicken, pork, lamb, beef, and more.
- Global Industry Growth: The lab-grown meat industry has expanded to over 150 companies across six continents, with $2.6 billion in investments.
- US Regulatory Clearance: In June 2023, the US Department of Agriculture approved the sale of lab-grown chicken meat, allowing companies like Good Meat and Upside Foods to supply it to restaurants and supermarkets.
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Food Processing Industry: Issues and Developments
Hidden Costs of Agri-Food Systems
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not Much
Mains level: Agri-Food Systems
Central Idea
- A recent United Nations Food and Agriculture Organization (FAO) report highlights the enormous hidden costs of global agri-food systems, totalling over $10 trillion.
- In countries like India, these costs, amounting to nearly 11% of GDP, manifest in various forms such as increased poverty, environmental damage, and health issues.
- The report suggests a transformation of agri-food systems, advocating for multi-cropping systems as a solution to enhance farmer well-being, community nutrition, and ecological health.
About Agri-Food Systems
- “Agri-food systems” refer to the complex network of activities, processes, and actors involved in the production, processing, distribution, and consumption of food.
- This system encompasses everything from agricultural production (farming) to the final food products consumed by individuals.
Intensive Agriculture: Impacts and Trends
- Green Revolution Legacy: India’s agricultural productivity boost over the past five decades has largely been due to mono-cropping and chemical-intensive farming, particularly in paddy and wheat cultivation.
- Nutritional and Ecological Consequences: This shift has led to a decline in crop diversity, impacting household nutrition and causing ecological issues like groundwater depletion.
- Economic Viability: The privatization of agricultural inputs has increased farmer indebtedness, making agriculture increasingly unviable in India.
Crop Favoritism and Food Security Concerns
- Public Distribution System (PDS): The National Food Security Act 2013 ensures food security for a significant portion of the Indian population, but the procurement policy heavily favours rice and wheat.
- Decline in Coarse Grains: The focus on rice and wheat has led to a reduction in the cultivation of nutritionally rich coarse grains.
- Water-Intensive Crops: Policies have also encouraged the cultivation of water-intensive cash crops like sugarcane, impacting biodiversity and water resources.
- Impact of Global Trade: International market fluctuations and trade relations have historically influenced food production systems in countries like India, affecting local agricultural practices and crop choices.
Promise of Crop Diversification
- Agroecology Principles: Multi-cropping systems, rooted in agroecology, can revitalize land and soil health while providing diverse crop yields.
- Ecosystem Services: These systems offer multiple benefits, including cash provision, food production, and ecosystem services like nitrogen fixation and biodiversity support.
- Nutritional and Environmental Benefits: Diversified farming can improve soil health and provide a more nutritious food basket, addressing the hidden costs of current agricultural practices.
Challenges and Transition Strategies
- Gradual Transition: A systematic shift from mono-cultivation to diversified farming is necessary, involving stages like non-pesticide management and natural farming practices.
- Economic Modelling: Preliminary economic models suggest that diversified farming can sustain farm incomes and improve ecological outcomes in both the short and long term.
- Addressing Transition Challenges: Overcoming hurdles related to local seeds, market access, labor requirements, and institutional support is crucial for a successful transition.
Conclusion
- The FAO report underscores the urgent need to transform agri-food systems to address their hidden costs.
- Multi-cropping systems offer a viable path forward, promising to enhance ecological health, farmer well-being, and community nutrition.
- However, this transition requires concerted efforts from various stakeholders, including institutions, policymakers, and farmers, to create economic incentives and support mechanisms for adopting sustainable agricultural practices.
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Food Processing Industry: Issues and Developments
Halal Certification Ban in Uttar Pradesh: A Comprehensive Overview
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Halal
Mains level: Read the attached story
Central Idea
- On November 18, the Uttar Pradesh government imposed a state-wide ban on the “production, storing, distribution, and sale of halal certified edible items.”
Understanding Halal and Halal Food
- Definition of Halal: ‘Halal’ is an Arabic term meaning ‘permissible’ in English.
- FAO Guidelines on Halal Food: The Food and Agriculture Organization defines halal food as compliant with Islamic Law, including specific slaughter methods.
- Vegetarian Food and Halal: Generally, vegetarian food is deemed halal unless it contains prohibited substances like alcohol.
- Labeling of Halal Products: Products claimed as halal must visibly display this on their labels.
Halal-Certified Products
- Purpose of Certification: Halal certification ensures food preparation adheres to Islamic law and is free from contamination.
- Certification Bodies in India: Various private companies in India, like Halal India Pvt Ltd and Jamiat Ulama-i-Hind Halal Trust, offer halal certification. Some are government-recognized, while others are not.
Controversy Surrounding Halal-Certified Products
- Legality: The debate centers on the legality of certificate-issuing authorities and allegations of targeting specific religious communities.
- Parallel Authority issue: The Indian government does not require halal certification; FSSAI certification is the standard for edible products.
- International Trade and Halal Certification: As per the USDA 2022 report, halal certification is not essential for export or import trade permissions.
- Religious violations: A case was filed against entities in Lucknow for purportedly exploiting religious sentiments to enhance sales through halal certification.
Legal Aspects of Halal Certification
- Complaints against Certification: Complaints have emerged against companies for allegedly issuing forged halal certificates for financial benefits.
- Accusations of Illegal Certification: These companies are accused of lacking official recognition to issue halal certificates.
Halal Certification System in India
- Certifying Agencies: Various agencies provide halal certification to Indian companies, products, or food establishments.
- Government Accreditation: The National Accreditation Board for Certification Bodies under the Quality Council of India accredits these Halal Certification Bodies.
- Advantages of Certification: Certification from recognized bodies benefits companies in both domestic and international markets.
- DGFT Guidelines: The Directorate General of Foreign Trade mandates that only facilities with valid certification from accredited bodies can export ‘halal certified’ meat and meat products.
- Government’s i-CAS Scheme: The ‘India Conformity Assessment Scheme’ was developed to regulate the halal certification process.
Implications of the Ban
- Quality confusions: The ban aims to address confusion over food quality standards and align with the Food Safety and Standards Act.
- Curbing forged certification: Companies issuing forged certificates are accused of fostering social unrest and betraying public trust.
- Economic Impact: There are apprehensions about a potential conspiracy to undermine the sales of non-halal certified products.
- Financial Misuse: There are allegations that profits from these activities could be funneled towards supporting terrorist organizations and anti-national activities.
Conclusion
- This ban reflects the complex interplay between food safety regulations, religious practices, and commercial dynamics.
- It highlights the need for a balanced approach in addressing such multifaceted issues.
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Food Processing Industry: Issues and Developments
Will QR Codes improve access to Food Labels?
Note4Students
From UPSC perspective, the following things are important :
Prelims level: QR Code
Mains level: Food safety governance in India
Central Idea
- The Food Safety and Standards Authority of India (FSSAI) has recommended the incorporation of QR codes on food products, a significant step toward ensuring food safety and accessibility, especially for visually impaired individuals.
- This move holds paramount importance in a country with one of the world’s largest markets for packaged foods and a rising burden of non-communicable diseases (NCDs), largely driven by the consumption of pre-packaged foods.
QR Code move by FSSAI
- Comprehensive Data: QR codes will contain extensive product information, including ingredients, nutritional facts, allergens, manufacturing date, best before/expiry/use-by date, allergen warnings, and customer contact information.
- Compliance: This initiative aligns with the FSSAI’s Food Safety and Standards (Labelling and Display) Regulations, 2020, and the Rights of Persons with Disabilities Act, 2016, emphasizing accessibility for individuals with disabilities.
QR Code Origins
- Invention: QR codes, two-dimensional matrix barcodes, was invented in 1994 by the Japanese company Denso Wave for labelling automobile parts.
- Enhancing Brand Image: For food manufacturers, QR codes offer advantages such as improving brand image, fostering customer loyalty, and enhancing operational efficiency.
Significance of the Initiative
- India’s Market Dynamics: India’s burgeoning market for packaged foods, coupled with a surge in NCDs, underscores the need for informed consumer choices.
- Consumer Rights: The initiative empowers consumers to make informed decisions and verify if the product aligns with its advertised attributes.
- Front-of-Pack Labelling: The FSSAI is urged to combine QR codes for visually impaired individuals with front-of-pack labelling (FOPL) warning labels, ensuring a comprehensive approach.
Global Trends in QR Usage
- Top Users: Countries like the U.S., India, France, and the U.K. are among the leading users of QR codes.
- Market Growth: The global packaged food market, estimated at $303.26 billion in 2019, continues to expand, with QR codes playing a pivotal role in providing consumers with essential product information.
- Consumer Preference: Consumers increasingly consider food packaging as important as the product itself, with QR codes serving as a technology that enhances information accessibility and influences buying behaviour.
Conclusion
- The introduction of QR codes on food products by the FSSAI is a crucial step toward enhancing food safety and ensuring consumers have access to comprehensive product information.
- In an era of rising health concerns and growing markets for packaged foods, this initiative empowers consumers to make informed choices and underscores the importance of clear food labelling.
- QR codes are emerging as a global trend, simplifying information access and improving consumer experiences.
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Food Processing Industry: Issues and Developments
Iron Fortification: Health Risks of Excessive Iron Intake
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Iron fortification
Mains level: Read the attached story
Central Idea
- Iron is an essential mineral for bodily functions, but excessive intake can be harmful.
- Fortification of food with iron is a suggested method for treating iron deficiency anemia.
- Excess consumption of fortified foods or simultaneous consumption of multiple fortified foods can lead to excessive iron intake.
What is Iron Fortification?
- Iron fortification refers to the process of adding iron to food products to increase their iron content.
- It is done using various forms of iron, such as iron salts or iron powders, which are added to the food during processing.
- It is a public health strategy employed to address iron deficiency, particularly in populations where inadequate iron intake is prevalent.
- The goal is to provide a significant portion of the recommended daily iron intake through fortified foods, contributing to the prevention and treatment of iron deficiency anaemia.
Implications for Iron Overload
- Comorbidities: Iron overload conditions, such as thalassemia, hemochromatosis, and chronic liver disease, have impaired iron excretion mechanisms.
- Blooding events: Iron absorption is balanced by steady and minimal excretion, except during bleeding events.
- Menstrual bleeding: Women can excrete iron through menstrual bleeding, while men are less capable of iron excretion.
- Oxidative stress: Increased iron intake can lead to oxidative stress, cellular damage, and impaired mitochondrial function.
- Heart ailments: High serum ferritin levels (a marker of iron storage) are associated with an increased risk of chronic diseases such as high fasting serum glucose, high total cholesterol, high triglycerides, and hypertension.
- Liver damage: Very high amounts of iron can activate hepatic stellate cells and cause excessive deposition of extracellular matrix in the liver. Prolonged liver iron overload can lead to liver fibrosis and cirrhosis.
Challenges and consequences
- Minimal absorption: Only a small percentage of ingested iron from fortified foods is absorbed, with the rest passing through the intestine.
- Digestive issues: Unabsorbed iron can cause inflammation in the gastrointestinal lining and disrupt the colonic microbiota, leading to abdominal discomfort and gastrointestinal issues.
- Issues with nutrition absorption: Excessive iron in the gastrointestinal tract can impair the absorption of other essential minerals like zinc and copper and potentially result in other deficiencies.
Way Forward
- Implement individualized strategies for iron intake rather than mandatory fortification programs to avoid unsupervised high iron intake across diverse populations.
- Ensure thorough monitoring and detection of adverse events related to iron intake.
- Precision in public health approaches is necessary to prevent the risk of iron overload and potential long-term chronic illnesses associated with excess iron.
- Evaluate the specific dietary iron needs of different population segments to avoid unnecessary excess iron consumption.
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Food Processing Industry: Issues and Developments
Cell-Based Meat: An Environmentally Friendly and Ethical Alternative
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Cultural meat mechanism
Mains level: Cultural meat, potential advantages and challnges
Central Idea
- Cell-based meat, also known as cultured meat, is a promising alternative to traditional meat production that could offer ethical and environmental benefits. However, there are still many unknowns about its safety, nutritional value, and potential health risks that must be addressed.
What is Cell-based meat in short?
- Cell-based meat, also known as cultured meat, lab-grown meat, or clean meat, refers to meat produced from animal cells grown in a laboratory, rather than from animals raised and slaughtered for meat.
Steps in the process of producing cell-based meat
- Cell isolation: A small sample of cells is taken from an animal through a biopsy, which could be done using a needle or a small incision. The cells are typically muscle cells, which are capable of replicating and forming muscle tissue.
- Cell culture: The cells are then placed in a culture medium, which provides the necessary nutrients and growth factors for the cells to multiply and form muscle tissue. The medium typically contains fetal bovine serum (FBS), which is derived from the blood of a cow fetus, but scientists are working to develop plant-based and other alternatives to FBS.
- Tissue engineering: The muscle cells are then placed on a scaffold, which can be made of various materials such as collagen or cellulose. The scaffold provides structure and support for the cells to form muscle tissue.
- Bioreactor cultivation: The scaffold with the muscle cells is then placed in a bioreactor, which provides a controlled environment for the muscle tissue to grow. The bioreactor can be adjusted to provide the right levels of oxygen, nutrients, and other factors for optimal growth.
- Harvesting: Once the muscle tissue has grown to the desired size, it is harvested and processed into the final product, which can take various forms such as ground meat or whole cuts.
Report on cell-based meat market
- A 2021 report by United States-based analytics firm Markets and Markets estimated that the global cell-based meat market will reach $214 million by 2027 at a compound annual growth rate of 61.4 per cent.
- The report cites increasing concerns over animal welfare, environmental sustainability, and the growing demand for protein-rich foods as key drivers of market growth.
- The firm recently received approval from Singapore Food Agency for its ‘chicken bites’ made from cultured meat. It is a significant step toward the future of food.
Advantages of cell-based meat
- Environmental sustainability: The production of cell-based meat requires fewer resources such as land, water, and energy compared to traditional meat production. It also produces fewer greenhouse gas emissions.
- For instance:
- A recent study published by Switzerland-based research publisher Frontiers mentions cell-based meat could reduce greenhouse gas (GHG) emissions by up to 78 per cent and land use by up to 99 per cent.
- Another study by ACS Publications said that cell-based meat production could reduce GHG emissions by up to 96 per cent and land use by up to 99 per cent compared to traditional beef production.
- Ethical: Cell-based meat production does not involve animal slaughter and hence is considered more humane.
- Healthier: Cell-based meat can be produced with lower levels of saturated fat and no antibiotics or hormones. It can also be tailored to provide specific nutritional benefits.
- Food security: As the global population continues to increase, traditional meat production may not be able to keep up with the demand for protein. Cell-based meat can provide an alternative source of protein that can be produced in a controlled and sustainable manner.
- Pathogen-free: Cell-based meat is produced in a sterile and controlled environment, reducing the risk of pathogen contamination.
- For instance: A team of researchers published a report in ScienceDirect in 2018, which says that cell-based meat production could reduce the risk of contamination by bacteria such as E. coli and Salmonella. This would largely be due to the elimination of animal slaughter and reliance on antibiotics in animal husbandry.
- No harmful growth hormones: Lab-grown meats are free of growth hormones as well. Commercial livestock factories use these hormones to expedite the growth of farm animals. Their excess use has harmful health outcomes.
- For instance: A European Union-appointed research committee examined six growth hormones used in raising cattle. It concluded that the growth hormones had developmental, neurobiological, genotoxic, and carcinogenic effects.
Potential challenges of cell-based meat
- Culture medium: Researchers have yet to develop a culture medium that is completely free of animal-derived components. The use of fetal bovine serum, for example, contradicts the ethical standards of lab-grown meat production.
- Health effects: The health effects of consuming cell-based meat are still unknown, and there are concerns about dysregulation and the development of cancerous properties in cultured meat.
- Consumer acceptance: Most consumers still prefer natural products and may be hesitant to adopt cell-based meat due to its “unnatural” origins. Educating consumers about the safety, quality, and sustainability of cell-based meat will be important for its commercial success.
- Variety: Researchers have not yet developed true muscle with an organized network of blood vessels, which makes it difficult to reproduce the original flavor and taste of meat derived from different species.
- Cost: Currently, the production of cell-based meat is more expensive than traditional meat production. As the technology advances and economies of scale are achieved, it is expected that the cost will decrease, but it may take some time before cell-based meat becomes cost-competitive with traditional meat.
Way ahead
- Addressing the cost: Currently, cell-based meat is expensive to produce. Research and development should focus on finding ways to reduce production costs and making the final product more affordable.
- Improving the taste and texture: While cell-based meat is similar to traditional meat, there are still some differences in taste and texture. Researchers need to work on improving the taste and texture to make it more appealing to consumers.
- Increasing variety: Currently, only a limited range of cell-based meats are available. Researchers need to work on producing different types of meat to offer consumers a wider range of options.
- Addressing regulatory concerns: As cell-based meat is a new technology, there are still some regulatory concerns that need to be addressed. Governments and regulatory bodies should work with the industry to establish guidelines and regulations to ensure the safety and quality of cell-based meat products.
- Educating consumers: Consumer awareness and education are key to the success of cell-based meat. People need to be made aware of the benefits of cell-based meat and be educated about how it is produced and the safety and quality standards that are in place.
Conclusion
- Cell-based meat can be the food of the future as it is free of antibiotics, germs, and doesn’t emit GHGs. However, their success depends on developing new cell lines and optimising growth conditions to produce meat that is more similar in texture, flavour, and nutritional composition to traditional meat. The health risks and consumer acceptance of cell-based meats are still largely unknown, so rigorous testing and regulatory oversight are needed to meet high safety standards.
Mains question
Q. Cultured meat is becoming a promising alternative to traditional meat production, however there are also potential risks associated with it. Discuss.
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Food Processing Industry: Issues and Developments
Mandatory requirements for Packaged Commodities
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Rule for Packaged Commodities
Mains level: Read the attached story
The Department of Consumer Affairs, Legal Metrology Division has notified a draft amendment to the Legal Metrology (Packaged Commodities) Rules 2011 making some compulsions.
Discrepancies over Packaged Commodities
- The Division has observed that many manufacturers/packagers/importers do not clearly label necessary declarations or prime constituents on the front of packaged commodities.
- It is common for consumers to assume that brands’ claims are accurate, but such claims are usually misleading.
- Such disclosure are deemed essential in order to protect consumer rights.
What are the mandatory provisions under the Legal Metrology (Packaged Commodities) Rules, 2011?
- It is mandatory under the Rules, to ensure a number of declarations, such as the:
- Name and address of the manufacturer/packer/importer,
- Country of origin,
- Common or generic name of the commodity,
- Net quantity,
- Month and year of manufacture
- Maximum Retail Price (MRP) and
- Consumer care information.
- As a consumer-oriented policy, all pre-packaged commodities should also be inspected.
- Rule 9(1)(a) provides that the declaration on the package must be legible and prominent.
- The consumers’ ‘right to be informed’ is violated when important declarations are not prominently displayed on the package.
What are the proposed amendments?
- As many blended food and cosmetic products are sold on the market, the key constituents need to be mentioned on the product packaging.
- Additionally, the front side of the package must contain the percentage of the composition of the unique selling proposition (USP).
- Also, packages displaying key constituents must display a percentage of the content used to make the product.
- The new amendments has suggested that at least two prime components should be declared on the package’s front side along with the brand name.
- Currently, manufacturers list the ingredients and nutritional information only on the back of the packaging.
- This declaration must also include the percentage/quantity of the USPs of the product in the same font size as the declaration of the USPs. However, mechanical or electrical commodities are excluded from this sub-rule.
Back2Basics: Consumer Rights
Consumer right is an insight into what rights consumer holds when it comes to the seller who provides the goods.
In general, the consumer rights in India are listed below:
(1) Right to Safety
- Means right to be protected against the marketing of goods and services, which are hazardous to life and property.
- The purchased goods and services should not only meet their immediate needs, but also fulfil long term interests.
- Before purchasing, consumers should insist on the quality of the products as well as on the guarantee of the products and services. They should preferably purchase quality marked products such as ISI, AGMARK, etc.
(2) Right to be Informed
- Means right to be informed about the quality, quantity, potency, purity, standard and price of goods so as to protect the consumer against unfair trade practices.
- Consumer should insist on getting all the information about the product or service before making a choice or a decision.
- This will enable him to act wisely and responsibly and also enable him to desist from falling prey to high pressure selling techniques.
(3) Right to Choose
- Means right to be assured, wherever possible of access to variety of goods and services at competitive price. In case of monopolies, it means right to be assured of satisfactory quality and service at a fair price.
- It also includes right to basic goods and services. This is because unrestricted right of the minority to choose can mean a denial for the majority of its fair share.
(4) Right to be Heard
- Means that consumer’s interests will receive due consideration at appropriate forums. It also includes right to be represented in various forums formed to consider the consumer’s welfare.
(5) Right to Seek redressal
- Means right to seek redressal against unfair trade practices or unscrupulous exploitation of consumers. It also includes right to fair settlement of the genuine grievances of the consumer.
- Consumers must make complaint for their genuine grievances. Many a times their complaint may be of small value but its impact on the society as a whole may be very large.
(6) Right to Consumer Education
- Means the right to acquire the knowledge and skill to be an informed consumer throughout life.
- Ignorance of consumers, particularly of rural consumers, is mainly responsible for their exploitation.
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Food Processing Industry: Issues and Developments
Rising global food prices: Causes and Solution
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Consultative Group on International Agricultural Research (CGIAR)
Mains level: Paper 3- Food crisis due to price shocks
Context
This increase in global food prices which manifested itself in the three food price crises since the 1960s offers some pertinent lessons for global food systems and the international community.
Managing year-to-year volatility Vs. periodic spikes in food prices
- Year-to-year volatility is easily managed by most countries through changes in their trade and domestic policies.
- But steep and severe periodic price shocks can lead to some sort of a crisis at the global and national levels.
- Implications: The crisis can emerge in the form of food shortages, trade disruptions, a rise and spread in hunger and poverty levels, depletion of foreign exchange reserves, a strain on a nation’s fiscal resources, a threat to peace, and even social unrest in some places.
History of food crises after since adoption of Green Revolution
- Data from Food and Agriculture Organization of the United Nations, the World Bank/International Monetary Fund show that since the onset and the adoption of Green Revolution technology in the early 1960s, the world has been struck thrice by food price crises.
- First shock-1973-76: The first shock was experienced during 1973-76 when the food price index (based on prices in U.S. dollars) doubled in nominal terms.
- Declining trend: For the next two decades, food prices in real terms followed a declining trend and were at their lowest around 2002.
- After this, nominal as well as the real prices of food began rising.
- Second crisis-2008: This momentum built up to culminate in the next food price crisis of 2008, which was further intensified by 2011.
- While the price shock began softening after 2014, food prices did not move back to their pre-2006 level.
- Third crisis-2020: This time the increase in the food price index happened very quickly and it turned out to be very big – it has taken the food price index to its historically highest level.
- Cause outside agriculture: All the three food price crises were triggered by factors outside agriculture.
- They were not caused by any serious shortfall in agriculture production.
- The interval between crises is reducing: The interval between two consecutive price shocks has narrowed down considerably and the severity of shock is turning stronger.
What are the causes responsible for the recent food price crisis?
- 1] Covid-19 and Ukraine crisis: It was triggered by supply disruptions due to COVID-19 and further aggravated by the Russia-Ukraine war.
- The current food price spike first began in vegetable oils and then expanded to cereals.
- Higher the global trade higher disruption: The effect of global trade disruption will be higher for commodities that are traded more and vice-versa.
- 2] Diversion of food for biofuel: Another factor underlying the rising trend and spikes in food prices is the diversion of food for biofuel needs.
- When crude prices increase beyond a certain level it becomes economical to use oilseeds and grains for biodiesel and ethanol, respectively.
- The second reason for the use of food crops for biofuel is the mandates to increase the share of renewable energy resources.
- 3] Increased cost of agrochemicals and fertilisers: Food prices are also expected to go up in the current and next harvest season because of an increase in the prices of fertilizer and other agrochemicals.
Way forward for India
- Transmission of international prices to domestic prices can be prevented only if there is no trade.
- 1] Trade policy changes: This transmission of global prices to the domestic market can be moderated through trade policy and other instruments.
- When international prices go too low, India has checks on cheap imports to protect the interests of producers; and when international prices go too high, the country liberalises imports and imposes checks on exports to ensure adequate availability and reasonable food prices for domestic consumers.
- 2] Buffer stock: The policy of having a buffer stock of food staples has also been very helpful in maintaining price stability, especially in the wake of global food crises.
- 3] Strategic liberalisation: India should continue with a policy of strategic liberalisation, as followed in the past, to balance the interests of producers and consumers.
- 4] Maintain image as a reliable and credible exporter: The importance of agriculture exports to mop up food and agriculture surplus from the country is increasing.
- Ongoing trends in domestic demand and supply imply that India will be required to dispose of 15% of its domestic food output in the overseas market by 2030.
- This underscores the need to maintain India’s image as a reliable and credible exporter.
- However, it is important to differentiate between the two situations: disturbing normal export and regulating exports exceeding the normal level.
What are the implications for India?
- Increased prices in India: Export and import in the agriculture sector constituted 13% of gross value added in agriculture during 2020-21.
- Therefore, some transmission of an increase in global prices on domestic prices is inevitable.
- Wheat export ban and implications: The recent ban on wheat exports and restrictions on the export of other food commodities by India need to be seen in the light of an abnormal situation created by spikes in international prices.
- Some experts see it as a setback to India’s image as a reliable exporter as this move is seen to disrupt (regular) export channels.
- A closer examination of data reveals that India’s action to ban or restrict food exports is not disrupting its normal exports.
- India was a very small exporter of wheat, with its share in global wheat trade ranging between 0.1% to 1% during 2015-16 to 2020-21.
- The international market is looking for around 50 million tonnes of wheat to compensate for the disruption in wheat exports from Russia and Ukraine.
- If India had not imposed a ban on wheat export, it would have resulted in a severe shortage of wheat within the country.
Global impact and suggestions
- As the steam of Green Revolution technology slowed down with the start of the 21st century, food prices began increasing in real terms.
- New breakthroughs required: The world requires new breakthroughs such as Green Revolution technology, for large-scale adoption in order to enable checks on food prices rising at a faster rate.
- Increase spending on agri-research: This in turn requires increased spending on agriculture research and development (especially by the public sector and multilateral development agencies).
- Strengthen global agri-research system: There is a need to strengthen and rejuvenate the global agri-research system under the Consultative Group on International Agricultural Research (CGIAR) which is heading towards disarray.
- Rethink biofuel protocols: Biofuel protocols have contributed to the global food crisis for the second time in the last 15 years.
- Diversion of land under food crops and food output for biofuel should be carefully calibrated with implications for food availability.
Conclusion
- The last three food price crises were primarily caused due to an increase in energy prices and disruptions in the movement of food across borders.
- Factors related to climate change are going to be an additional source of supply shocks in the years ahead.
- Therefore, the global community must plan to have a global buffer stock of food in order to ensure reasonable stability in food prices and supply.
Back2Basics: Consultative Group on International Agricultural Research (CGIAR)
- CGIAR (formerly the Consultative Group for International Agricultural Research) is a global partnership that unites international organizations engaged in research about food security.
- CGIAR research aims to reduce rural poverty, increase food security, improve human health and nutrition, and sustainable management of natural resources.
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Food Processing Industry: Issues and Developments
Report flags Risk of Fortified Rice
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Rice fortification
Mains level: Issues with fortified food
A report has flagged issues due to threats posed to anaemic persons over iron over-nutrition created by rice fortification.
Highlights of the report
- No prior education: The activists discovered that neither field functionaries nor beneficiaries had been educated about the potential harms.
- No warnings issued: There were no warning labels despite the food regulator’s rules on fortified foods.
- No informed choice: The right to informed choices about one’s food is a basic right. In the case of rice fortification, it is seen that no prior informed consent was ever sought from the recipients.
What are the risks highlighted?
- Thalassemia, sickle cell anaemia and malaria are conditions where there is already excess iron in the body, whereas TB patients are unable to absorb iron.
- Consumption of iron-fortified foods among patients of these diseases can reduce immunity and functionality of organs.
Endemic zones identified
- Jharkhand is an endemic zone of sickle cell disorder and thalassemia, with a prevalence of 8%-10%, which is twice the national average.
- Jharkhand is also an endemic zone for malaria — in 2020, the State ranked third in the country in malaria deaths.
What is Fortification?
- The Food Safety and Standards Authority of India (FSSAI) has explicitly defined fortification.
- It involves deliberate increasing of the content of essential micronutrients in a food so as to improve the nutritional quality of food and to provide public health benefit with minimal risk to health.
Types of food fortification
Food fortification can also be categorized according to the stage of addition:
- Commercial and industrial fortification (wheat flour, cornmeal, cooking oils)
- Biofortification (breeding crops to increase their nutritional value, which can include both conventional selective breeding, and genetic engineering)
- Home fortification (example: vitamin D drops)
How is fortification done for rice?
- Various technologies are available to add micronutrients to regular rice, such as coating, dusting, and ‘extrusion’.
- The last mentioned involves the production of fortified rice kernels (FRKs) from a mixture using an ‘extruder’ machine.
- It is considered to be the best technology for India.
- The fortified rice kernels are blended with regular rice to produce fortified rice.
How does the extrusion technology to produce FRK work?
- Dry rice flour is mixed with a premix of micronutrients, and water is added to this mixture.
- The mixture is passed through a twin-screw extruder with heating zones, which produces kernels similar in shape and size to rice.
- These kernels are dried, cooled, and packaged for use. FRK has a shelf life of at least 12 months.
- As per guidelines issued by the Ministry of Consumer Affairs, Food and Public Distribution, the shape and size of the fortified rice kernel should “resemble the normal milled rice as closely as possible”.
- According to the guidelines, the length and breadth of the grain should be 5 mm and 2.2 mm respectively.
But why does rice have to be fortified in the first place?
- India has very high levels of malnutrition among women and children.
- According to the Food Ministry, every second woman in the country is anaemic and every third child is stunted.
- Fortification of food is considered to be one of the most suitable methods to combat malnutrition.
- Rice is one of India’s staple foods, consumed by about two-thirds of the population. Per capita rice consumption in India is 6.8 kg per month.
- Therefore, fortifying rice with micronutrients is an option to supplement the diet of the poor.
What are the standards for fortification?
- Under the Ministry’s guidelines, 10 g of FRK must be blended with 1 kg of regular rice.
- According to FSSAI norms, 1 kg of fortified rice will contain the following: iron (28 mg-42.5 mg), folic acid (75-125 microgram), and vitamin B-12 (0.75-1.25 microgram).
- Rice may also be fortified with zinc (10 mg-15 mg), vitamin A (500-750 microgram RE), vitamin B-1 (1 mg-1.5 mg), vitamin B-2 (1.25 mg-1.75 mg), vitamin B-3 (12.5 mg-20 mg) and vitamin B-6 (1.5 mg-2.5 mg) per kg.
How can a beneficiary distinguish between fortified rice and regular rice?
- Fortified rice will be packed in jute bags with the logo (‘+F’) and the line “Fortified with Iron, Folic Acid, and Vitamin B12”.
Advantages offered
- Health: Fortified staple foods will contain natural or near-natural levels of micro-nutrients, which may not necessarily be the case with supplements.
- Taste: It provides nutrition without any change in the characteristics of food or the course of our meals.
- Nutrition: If consumed on a regular and frequent basis, fortified foods will maintain body stores of nutrients more efficiently and more effectively than will intermittently supplement.
- Economy: The overall costs of fortification are extremely low; the price increase is approximately 1 to 2 percent of the total food value.
- Society: It upholds everyone’s right to have access to safe and nutritious food, consistent with the right to adequate food and the fundamental right of everyone to be free from hunger
Issues with fortified food
- Against nature: Fortification and enrichment upset nature’s packaging. Our body does not absorb individual nutrients added to processed foods as efficiently compared to nutrients naturally occurring.
- Bioavailability: Supplements added to foods are less bioavailable. Bioavailability refers to the proportion of a nutrient your body is able to absorb and use.
- Immunity issues: They lack immune-boosting substances.
- Over-nutrition: Fortified foods and supplements can pose specific risks for people who are taking prescription medications, including decreased absorption of other micro-nutrients, treatment failure, and increased mortality risk.
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Food Processing Industry: Issues and Developments
Debate over Front of Pack Labelling (FoPL) of Packaged Food
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Health Star Rating System, FOPL
Mains level: Read the attached story
The Food Safety and Standards Authority of India (FSSAI) is expected to issue a draft regulation for labels on front of food packets.
What is FoPL?
- In India, packaged food has had back-of-package (BOP) nutrient information in detail but no FoPL.
- Counter to this, FoPL can nudge people towards healthy consumption of packaged food.
- It can also influence purchasing habits.
- The study endorsed the HSR format, which speaks about the proportions of salt, sugar, and fat in food that is most suited for consumers.
- Countries such as the UK, Mexico, Chile, Peru, Hungary, and Australia have implemented FoPL systems.
What warranted such rating in India?
- Visual bluff: A lot of Indian consumers do not read the information available at the back of the packaged food item.
- Burden of NCDs: Also, India has a huge burden of non-communicable diseases that contributes to around 5.87 million (60%) of all deaths in a year.
- Healthy dietary choices: HSR will encourage people to make healthy choices and could bring a transformational change in the society.
- Supreme Court order: A PIL seeking direction to the government to frame guidelines on HSR and impact assessment for food items and beverages was filed in the Supreme Court in June 2021.
Which category of food item will have HSR?
- All packaged food items or processed food will have the HSR label.
- These will include chips, biscuits, namkeen, sweets and chocolates, meat nuggets, and cookies.
- However, milk and its products such as chenna and ghee are EXEMPTED as per the FSSAI draft notified in 2019.
Will there be pushback from food industry?
- Negative warning: Some experts opposed the use of the HSR model in India, suggesting that consumers might tend to take this as an affirmation of the health benefits rather than as a negative warning of ill effects.
- Lack of awareness: This is significant because there is lack of awareness on star ratings related to consumer products in India.
- Impact on Sale: Certain organisations fear it might affect the sale of certain food products.
When will the rating come into force?
- FSSAI’s scientific panel recommends voluntary implementation of HSR format from 2023 and a transition period of four years for making it mandatory.
- It noted that the proposed thresholds are in alignment with the models implemented in other countries and ‘WHO population nutrient intake goals recommendations’.
- FSSAI will analyse the nutritional information in 100 mg of packaged food.
- The food safety compliance system licensing application portal will have a module for generating certificates wherein a licensee can enter details of a product.
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Food Processing Industry: Issues and Developments
Unlock India’s food processing potential
Note4Students
From UPSC perspective, the following things are important :
Prelims level: PLIS
Mains level: Paper 3- Food processing industry in India
Context
One of the largest producers of fruits and vegetables in the world to boost processed food in large quantities, India has formulated a unique Production-Linked Incentive Scheme (PLIS) which aims to incentivise incremental sales.
Progress made so far
- A sum of ₹10,900 crore has been earmarked for the scheme.
- Beneficiaries have been obliged to commit a minimum investment while applying for the scheme.
- Under Category 1, firms are incentivised for incremental sales and branding/marketing initiatives taken abroad.
- Assuming the committed investment as a fixed ratio of their sales and undertaking execution of at least 75% of the projects, the sector is likely to witness at least ₹6,500 crore worth of investment over the next two years.
- New alternatives are being explored which have immense potential in replacing the staples of rice and wheat in the form of Nutri-cereals, plant-based proteins, fermented foods, health bars and even fresh fortified foods for pets.
- By welcoming the new brands in the category, PLIS aims to create an enabling ecosystem for innovation in both food products and processes.
Way forward
1] Improve infrastructure
- A study in the United States concluded that a 1% increase in public infrastructure increased the food manufacturing output by 0.06% in the longer run (https://bit.ly/3rOeE0l).
- This correlation holds good for India too as a higher investment is being concentrated in States such as Andhra Pradesh, Gujarat, Maharashtra, Tamil Nadu and Uttar Pradesh.
- These States as reported by the Good Governance Index 2020-21, ranked among the highest in the ‘Public Infrastructure and Utilities’ parameter with ‘Connectivity to Rural Habitations’ showing the highest improvement.
2] Improve profitability in export
- For the exports market, it is now established that sales promotion is positively related to increased sales volume, but inversely related to profitability.
- To bridge this gap, of the 13 key sectors announced under the PLIS, the ‘Food Processing PLIS’ earmarks a dedicated Category 3 for supporting branding and marketing activities in foreign markets.
- This ensures that India’s share of value-added products in the exports basket is improved, and it may leverage on its unique geographical proximity to the untapped markets of Europe, the Middle East/West Asia, Africa, Oceania and Japan.
3] Access to credit
- The access of micro, small, and medium enterprises (MSMEs) to finance is a perennial problem in the country, predominating due to a lack of proper credit history mechanism for MSMEs.
- Smart financing alternatives such as peer-to-peer (P2P) lending hold potential for micro-food processors.
- Access to working capital has in theory been addressed by the Trade Receivables Discounting System (TReDS), a platform for facilitating the financing/discounting of trade receivables of MSMEs through multiple financiers.
Conclusion
With growing populations, changing food habits and unrestricted use of natural resources, nations must come together and lay out a road map for a common efficient food value chain.
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Food Processing Industry: Issues and Developments
National Mission on Edible Oil-Oil Palm (NMEO-OP)
Note4Students
From UPSC perspective, the following things are important :
Prelims level: NMEO-OP
Mains level: Oilseeds and India
The Centre has increased the financial outlay for the National Mission on Edible Oil-Oil Palm (NMEO-OP).
About NMEO-OP
- National Mission on Oilseeds and Oil Palm (NMOOP) was implemented during the 12th Five Year Plan, to expand the oil palm areas and increase the production of edible oils.
- It was later merged with the National Food Security Mission.
- NMEO-OP aims to resolve to allow India to be independent or self-reliant in edible oil production.
- Through this mission, more than ₹11,000 crores will be invested in the edible oil ecosystem.
- The government will ensure that farmers get all the needed facilities, from quality seeds to technology.
- Along with promoting the cultivation of oil palm, this mission will also expand the cultivation of our other traditional oilseed crops.
Why such a mission?
- India is one of the major oilseeds growers and importers of edible oils.
- India’s vegetable oil economy is the world’s fourth-largest after the USA, China & Brazil.
- The oilseed accounts for 13% of the Gross Cropped Area, 3% of the Gross National Product, and 10% value of all agricultural commodities.
- During the last few years, the domestic consumption of edible oils has increased substantially and has touched the level of 18.90 million tonnes in 2011-12 and is likely to increase further.
- A substantial portion of our requirement of edible oil is met through the import of palm oil from Indonesia and Malaysia.
- It is, therefore, necessary to exploit domestic resources to maximize production to ensure edible oil security for the country.
Alternative sources
- Oil Palm is comparatively a new crop in India and is the highest vegetable oil yielding perennial crop.
- With quality planting materials, irrigation, and proper management, there is a potential of achieving 20-30 MT Fresh Fruit Bunches (FFBs) per ha after attaining the age of 5 years.
- Therefore, there is an urgent need to intensify efforts for area expansion under oil palm to enhance palm oil production in the country.
- Tree Borne Oilseeds (TBOs), like Sal, Mahua, Simarouba, kokum, Olive, Karanja, Jatropha, Neem, Jojoba, Wild Apricot, Walnut, tung etc. are cultivated/grown in the country under different agro-climatic conditions.
- These TBOs are also good sources of vegetable oil and therefore need to be supported for cultivation.
Try answering this PYQ:
Q.An objective of the National Food Security Mission is to increase the production of certain crops through area expansion and productivity enhancement in a sustainable manner in the identified districts of the country. What are those crops?
(a) Rice and wheat only
(b) Rice, wheat, and pulses only
(c) Rice, wheat, pulses, and oilseeds only
(d) Rice, wheat, pulses, oilseeds, and vegetables
Post your answers here:
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Food Processing Industry: Issues and Developments
[pib] Operation Greens Scheme
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Operation Greens Scheme
Mains level: Not Much
The Union Minister of Food Processing Industries has provided useful information regarding the Op Greens Scheme.
Operation Greens Scheme
- Ministry of Food Processing Industries launched the Operation Greens scheme in November, 2018.
- The scheme aims for integrated development of the Tomato, Onion, and Potato (TOP) value chain.
- It aims to promote Farmer Producers Organizations (FPOs), agri-logistics, processing facilities and value addition etc. in identified production clusters.
- Under the scheme, state-wise funds are not allocated as the scheme is demand-driven and projects are approved as per scheme guidelines on the basis of applications received for setting up of projects in eligible production clusters.
Objectives:
- To enhance value realization of TOP farmers
- Reduction in post-harvest losses
- Price stabilization for producers and consumers and
- Increase in food processing capacities and value addition etc.
Key provisions
- Short term intervention by way of providing transportation and storage subsidy @ 50% and
- long term intervention through value addition projects in identified production clusters with Grant-in-aid @ 35% to 70% of eligible project cost subject to maximum of Rs. 50 crore per project
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Food Processing Industry: Issues and Developments
Experts raise concerns over mandatory food fortification
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Fortification of food
Mains level: Under-nutrition issues
In a pushback against the Centre’s plan to mandatorily fortify rice and edible oils with vitamins and minerals, a group of scientists and activists have warned of the adverse impacts on health and livelihoods.
Food Fortification
- Food fortification is defined as the practice of adding vitamins and minerals to commonly consumed foods during processing to increase their nutritional value.
- It is a proven, safe and cost-effective strategy for improving diets and for the prevention and control of micronutrient deficiencies.
Types of food fortification
Food fortification can also be categorized according to the stage of addition:
- Commercial and industrial fortification (wheat flour, cornmeal, cooking oils)
- Biofortification (breeding crops to increase their nutritional value, which can include both conventional selective breeding, and genetic engineering)
- Home fortification (example: vitamin D drops)
Advantages offered
- Health: Fortified staple foods will contain natural or near-natural levels of micro-nutrients, which may not necessarily be the case with supplements.
- Taste: It provides nutrition without any change in the characteristics of food or the course of our meals.
- Nutrition: If consumed on a regular and frequent basis, fortified foods will maintain body stores of nutrients more efficiently and more effectively than will intermittently supplement.
- Economy: The overall costs of fortification are extremely low; the price increase is approximately 1 to 2 percent of the total food value.
- Society: It upholds everyone’s right to have access to safe and nutritious food, consistent with the right to adequate food and the fundamental right of everyone to be free from hunger
Issues with fortified food
- Against nature: Fortification and enrichment upset nature’s packaging. Our body does not absorb individual nutrients added to processed foods as efficiently compared to nutrients naturally occurring.
- Bioavailability: Supplements added to foods are less bioavailable. Bioavailability refers to the proportion of a nutrient your body is able to absorb and use.
- Immunity issues: They lack immune-boosting substances.
- Over-nutrition: Fortified foods and supplements can pose specific risks for people who are taking prescription medications, including decreased absorption of other micro-nutrients, treatment failure, and increased mortality risk.
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Food Processing Industry: Issues and Developments
[pib] PMFME Scheme
Note4Students
From UPSC perspective, the following things are important :
Prelims level: PMFME Scheme
Mains level: Not Much
The centrally sponsored Pradhan Mantri Formalization of Micro food processing Enterprises (PMFME) Scheme, launched under the Aatmanirbhar Bharat Abhiyan marks the completion of its one year.
PMFME Scheme
- The PMFME Scheme is a centrally sponsored scheme that aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry.
- It aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector,
- It further aims to promote formalization of the sector and provide support to Farmer Producer Organizations, Self Help Groups, and Producers Cooperatives along their entire value chain.
- The scheme envisions to directly assist the 2,00,000 micro food processing units for providing financial, technical, and business support for upgradation of existing micro food processing enterprises.
Major component of the scheme
One District One Product
- Under the One District One Product (ODOP) component of the PMFME Scheme, the Ministry of Food Processing Industries approved ODOP for 137 unique products.
- The GIS ODOP digital map of India has been launched to provide details of ODOP products of all the States and UTs.
- The digital map also has indicators for Tribal, SC, ST, and aspirational districts.
- It will enable stakeholders to make concerted efforts for its value chain development.
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Food Processing Industry: Issues and Developments
FSSAI recognizes new precision Iodine Value Analyser
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Precision Iodine Value Analyzer
Mains level: Not Much
The Council of Scientific and Industrial Research-Central Scientific Instruments Organization (CSIR-CSIO) has developed and transferred the technology of Precision Iodine Value Analyzer (PIVA).
What is Precision Iodine Value Analyzer?
- It is an instrument for the measurement of the degree of unsaturation (iodine value) in vegetable oils.
- This indigenous food testing equipment was recognized by the Food Safety and Standards Authority of India (FSSAI) on World Food Safety Day on June 7, 2021.
- It has applications in oil extraction units, quality control and assurance labs, food regulatory authorities, soaps and cosmetics, bakeries, meat industry, paint industry, biodiesel analysis, and charcoal industry.
- It is also useful in determining adulteration in edible oils and fats.
Measuring iodine value
- Iodine value is conventionally determined using manual titration and a few analytical instruments based on automated titration.
- However, these methods take a longer time to analyze, are costly, and use toxic chemicals.
- Researchers at CSIR-CSIO developed a rapid analysis technique that takes just three minutes to carry out the same analysis.
- Currently, PIVA has been calibrated and tested for coconut, sunflower, mustard, palm, rice bran, soybean, groundnut, olive oil, and ghee.
- This new development is a part of the ongoing effort to strengthen the food testing capabilities by introducing quick and advanced food testing kits.
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Food Processing Industry: Issues and Developments
FSSAI caps transfats in foods
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Trans fats
Mains level: Health threats posed by Trans Fats
The FSSAI has amended its rules to put a cap on trans fatty acids (TFAs) in food products just weeks after it tightened the norms for oils and fats.
What are the new rules?
- Food products in which edible oils and fats are used as an ingredient shall not contain industrial Trans fatty acids more than 2% by mass of the total oils/fats present in the product, on and from 1st January 2022.
- In December, the FSSAI had capped TFAs in oils and fats to 3% by 2021, and 2% by 2022 from the current levels of 5%.
- The 2% cap is considered to be the elimination of trans fatty acids, which is to be achieved by 2022.
What are Trans Fats?
- Trans fatty acids are created in an industrial process that adds hydrogen to liquid vegetable oils to make them more solid, increase the shelf life of food items and for use as an adulterant as they are cheap.
- They are present in baked, fried and processed foods as well as adulterated ghee which becomes solid at room temperature.
- They are the most harmful form of fats as they clog arteries and cause hypertension, heart attacks and other cardiovascular diseases.
Why need such regulation?
- As per the World Health Organisation (WHO), approximately 5.4 lakh deaths take place each year globally because of intake of industrially-produced trans-fatty acids.
- The WHO has called for the elimination of industrially-produced trans-fatty acids from the global food supply by 2023.
- The latest FSSAI rules signal the completion of the process of regulating trans fats in India.
- The move will make a big difference in the health harm caused by this unwanted ingredient.
- This allows FSSAI and the State-level food safety machinery to focus on implementation and enforcement of the WHO recommendations.
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Food Processing Industry: Issues and Developments
[pib] PM Formalization of Micro Food Processing Enterprises Scheme
Note4Students
From UPSC perspective, the following things are important :
Prelims level: PM-FME Scheme
Mains level: Food processing industry and the required reforms
Union Minister for Food Processing Industries has inaugurated the capacity building component of the Pradhan Mantri Formalization of Micro food processing Enterprises scheme (PM-FME Scheme).
The event also sought the launch of the GIS One District One Product (ODOP) Digital Map of India.
Practice question for mains:
Q.What is the PM FME Scheme? Discuss its potential to neutralize various challenges faced by India’s unorganized food industries
PM-FME Scheme
- Launched under the Aatmanirbhar Bharat Abhiyan, the PM-FME Scheme is a centrally sponsored scheme.
- It aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector.
- It seeks to provide support to Farmer Producer Organizations, Self Help Groups, and Producers Cooperatives along their entire value chain.
- Under the PM-FME scheme, capacity building is an important component.
- The scheme envisages imparting training to food processing entrepreneurs, various groups, viz., SHGs / FPOs / Co-operatives, workers, and other stakeholders associated with the implementation of the scheme.
Features of the scheme
- The Scheme adopts One District One Product (ODODP) approach to reap the benefit of scale in terms of procurement of inputs, availing common services and marketing of products.
- The States would identify food product for a district keeping in view the existing clusters and availability of raw material.
- The ODOP product could be a perishable produce based product or cereal-based products or a food product widely produced in a district and their allied sectors.
- An illustrative list of such products includes mango, potato, litchi, tomato, tapioca, kinnu, bhujia, petha, papad, pickle, millet-based products, fisheries, poultry, meat as well as animal feed among others.
- The Scheme also place focus on waste to wealth products, minor forest products and Aspirational Districts.
About ODOP Digital Map
- The GIS ODOP digital map of India provides details of ODOP products of all the states to facilitate the stakeholders.
- The digital map also has indicators for tribal, SC, ST, and aspirational districts.
- It will enable stakeholders to make concerted efforts for its value chain development.
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Food Processing Industry: Issues and Developments
PM Formalization of Micro Food Processing Enterprises (PM FME) Scheme
Note4Students
From UPSC perspective, the following things are important :
Prelims level: PM-FME scheme
Mains level: Food processing industry and the required reforms
The Ministry for Food Processing Industries (MoFPI) has launched the PM Formalization of Micro Food Processing Enterprises (PM FME) as a part of “Atmanirbhar Bharat Abhiyan”.
Practice question for mains:
Q.What is the PM FME Scheme? Discuss its potential to neutralize various challenges faced by India’s unorganized food industries.
PM FME Scheme
- It aims to provide financial, technical and business support for upgradation of existing micro food processing enterprises.
- It is a centrally sponsored scheme to be implemented over a period of five years from 2020-21 to 2024-25 with an outlay of Rs 10,000 crore.
- The expenditure under the scheme would to be shared in 60:40 ratios between Central and State Governments, in 90:10 ratios with NE and the Himalayan States, 60:40 ratio with UTs with the legislature and 100% by Centre for other UTs.
Features of the scheme
- The Scheme adopts One District One Product (ODODP) approach to reap the benefit of scale in terms of procurement of inputs, availing common services and marketing of products.
- The States would identify food product for a district keeping in view the existing clusters and availability of raw material.
- The ODOP product could be a perishable produce based product or cereal-based products or a food product widely produced in a district and their allied sectors.
- An illustrative list of such products includes mango, potato, litchi, tomato, tapioca, kinnu, bhujia, petha, papad, pickle, millet-based products, fisheries, poultry, meat as well as animal feed among others.
- The Scheme also place focus on waste to wealth products, minor forest products and Aspirational Districts.
Credit facility provided
- Existing Individual micro food processing units desirous of upgradation of their unit can avail credit-linked capital subsidy @35% of the eligible project cost with a maximum ceiling of Rs.10 lakh per unit.
- Seed capital @ Rs. 40,000/- per SHG member would be provided for working capital and purchase of small tools.
- FPOs/ SHGs/ producer cooperatives would be provided a credit-linked grant of 35% for capital investment along the value chain.
- Support for marketing & branding would be provided to develop brands for micro-units and groups with 50% grant at State or regional level which could benefit a large number of micro-units in clusters.
Why need such a scheme?
- The unorganized food processing sector comprising nearly 25 lakh units contribute to 74% of employment in the food processing sector.
- Nearly 66% of these units are located in rural areas and about 80% of them are family-based enterprises supporting livelihood rural household and minimizing their migration to urban areas.
Challenges faced
- The unorganised food processing sector faces a number of challenges which limit their performance and their growth.
- These challenges include lack of access to modern technology & equipment, training, access institutional credit, lack of basic awareness on quality control of products; and lack of branding & marketing skills etc.
- Owing to these challenges; the unorganised food processing sector contributes much less in terms of value addition and output despite its huge potential.
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Food Processing Industry: Issues and Developments
[pib] Scheme for formalization of Micro Food Processing Enterprises (FME)
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Scheme for formalization of Micro Food Processing Enterprises (FME)
Mains level: Food processing industry and the required reforms
The Union Cabinet has given its approval to a new Centrally Sponsored Scheme – “Scheme for Formalization of Micro food processing Enterprises (FME)” for the Unorganized Sector on All India basis.
Practice question for mains:
Q. Discuss the scope and significance of Food Processing Industries in India. Also discuss how can it benefit India becoming the global food store.
Background
- There are about 25 lakh unregistered food processing enterprises which constitute 98% of the sector and are unorganized and informal.
- Nearly 66 % of these units are located in rural areas and about 80% of them are family-based enterprises.
- This sector faces a number of challenges including the inability to access credit, high cost of institutional credit, lack of access to modern technology, inability to integrate with the food supply chain and compliance with the health & safety standards.
- Strengthening this segment will lead to a reduction in wastage, creation of off-farm job opportunities and aid in achieving the overarching Government objective of doubling farmers’ income.
Details of the Scheme for FME
- The Union Cabinet has sanctioned an outlay of Rs.10,000 crore.
- The expenditure will be shared by GOI and the States in the ratio of 60:40.
Salient features
- It will be a Centrally Sponsored Scheme. Expenditure to be shared by the Government of India and States at 60:40.
- 2, 00,000 micro-enterprises are to be assisted with credit linked subsidy.
- The scheme will be implemented over a 5 year period from 2020-21 to 2024-25.
- Cluster approach.
- Focus on perishables.
Support for Individual micro-units:
- Micro enterprises will get credit-linked subsidy @ 35% of the eligible project cost with a ceiling of Rs.10 lakh.
- The beneficiary contribution will be a minimum of 10% and balance from the loan.
- On-site skill training & Handholding for DPR and technical upgradation.
Implementation strategy
- The scheme will be rolled out on All India basis.
- Seed capital will be given to SHGs (@Rs. 4 lakh per SHG) for the loan to members for working capital and small tools.
- Grant will be provided to FPOs for backward/forward linkages, common infrastructure, packaging, marketing & branding.
Administrative and Implementation Mechanisms
- The Scheme would be monitored at Centre by an Inter-Ministerial Empowered Committee (IMEC) under the Chairmanship of Minister, FPI.
- A State/ UT Level Committee (SLC) chaired by the Chief Secretary will monitor and sanction/ recommend proposals for expansion of micro-units and setting up of new units by the SHGs/ FPOs/ Cooperatives.
- The States/ UTs will prepare Annual Action Plans covering various activities for implementation of the scheme, which will be approved by the Government of India.
- A third-party evaluation and mid-term review mechanism would be built in the programme.
- The State/ UT Government will notify a Nodal Department and Agency for implementation of the Scheme.
Establishment of a National Portal & MIS
- A National level portal would be set-up wherein the applicants/ individual enterprise could apply to participate in the Scheme.
- All the scheme activities would be undertaken on the National portal.
Benefits of the Scheme
- Nearly eight lakh micro-enterprises will benefit through access to information, better exposure and formalization.
- Credit linked subsidy support and hand-holding will be extended to 2,00,000 micro-enterprises for expansion and upgradation.
- It will enable them to formalize, grow and become competitive.
- The project is likely to generate nine lakh skilled and semi-skilled jobs.
- The scheme envisages increased access to credit by existing micro food processing entrepreneurs, women entrepreneurs and entrepreneurs in the Aspirational Districts.
- Better integration with organized markets.
- Increased access to common services like sorting, grading, processing, packaging, storage etc.
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Food Processing Industry: Issues and Developments
Market Intelligence and Early Warning System (MIEWS)
Note4Students
From UPSC perspective, the following things are important :
Prelims level: MIEWS, TOP
Mains level: Ensuring fair prices for TOP produce
The Union Food Processing Ministry has launched a new Market Intelligence and Early Warning System (MIEWS) portal to monitor the prices of TOP crops – Tomato, Onion and Potato.
About MIEWS
- MIEWS portal is the first-of-its-kind platform for ‘real-time monitoring’ of prices of tomato, onion and potato.
- The system has been designed to provide advisories to farmers to avoid cyclical production and issue early warnings in situations of gluts.
- It will simultaneously generate alerts for price intervention under the terms of Operation Greens (OG) scheme.
- It will generate early alerts in case there is going to be a major change in the prices of these crops.
- This will help in planning and timely intervention for price stabilization. The portal can be accessed at this link- http://miews.nafed-india.com.
Utility of MIEWS
The MIEWS would:
- Monitor the supply situation for timely market intervention,
- Assist in rapid response during times of glut to move the produce from glut regions to regions with deficit supply.
- Provide inputs for export/import decision making.
Back2Basics
Operation Greens
- In the budget speech of Union Budget 2018-19, a new Scheme “Operation Greens” was announced on the line of “Operation Flood” to promote Farmer Producers Organizations (FPOs #), agri-logistics, processing facilities and professional management.
- Accordingly, the Ministry has formulated a scheme for integrated development of Tomato, Onion and Potato (TOP) value chain.
- Under the OG Scheme, during a glut situation, the evacuation of surplus production from producing areas to consumption centres will be undertaken in the following cases:
- When the price falls below the average market price at the time of harvest in the preceding 3 years.
- When the price falls more than 50 percent in comparison to the previous year’s market price at the time of harvest.
- When the price falls below the benchmark, if any, fixed by either the state or central government for a stipulated period.
For additional readings, navigate to:
https://mofpi.nic.in/Schemes/operation-greens
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Developments in Food Processing Industry
The food processing industry in India is increasingly seen as a potential source for driving the rural economy as it brings about synergy between the consumer, industry and the farmer. However, food processing activity is still at a nascent stage in India with low penetration.
Importance of Food Processing Industry
- It holds the potential of reducing enormous wastage of agricultural produce in the absence of processing technologies and cold chain facility
- It is labour-intensive industry, which has the potential to employ 13 million people directly and 35 million people indirectly
- This will also lead to increase in farm income, generate employment opportunities, foster forward and backward linkage effects, contribute to exports and integrate Indian economy with the rest of world
What is the magnitude and size of this industry?
India is strategically located at the centre of the Middle-East and South-East with a long coastal line and easy sea connectivity as well as plenty of raw material for long period which can attract multi-national companies instead of food processing.
It is the 5th largest industry and has the highest rate of growth as well as a very high employment elasticity. Currently, it accounts for nearly 16% of total employment in the organized manufacturing sector and 32% in unorganized sector.
What are the factors which can drive this industry?
- India’s demographic profile with 65% of population below 30 years of age
- Fast changing consumption patterns
- Increase in disposable incomes of the people
- Fast increase in the number of working women, who prefer the packaged food
- Growth of organised food retail in India
- Nearly 55% of the total expenditure on an average is spent on food and grocery in rural areas and nearly 40% in urban areas and only 10% of what we grow is processed in India
What are the challenges faced by FPI?
- Indifference of policy makers as very little outlays are allocated in Five Year Plans. In the XI FYP, an outlay of Rs. 4000 crore was earmarked out of which significant proportion was not spent
- The legislation’s like APMC Acts, Essential Commodities Act, etc restricts free movement of commodities
- Very poor infrastructure i.e. near absence of technologies, incubation facilities, pre-cooling chambers, irradiation facilities, etc < Food Irradiation is a technology that improves the safety and extends the shelf life of foods by reducing or eliminating microorganisms and insects>
- High tariffs in the form of high excise duties as well as import duties
- Non-tariff barriers in the form of stringest regulation of laboratory testing, grading, sampling and packaging
- Lack of entrepreneurship, as 70% of the total value of food processing items manufactured in India is dominated by the unorganised sector
- Lack of training facilities related to this industry
- Very low Research & Development
- Indian agriculture focuses on traditional crops rather than market-oriented agriculure with diversified commercial crops
What are the Govt efforts to promote this industry?
XI Five Year Plan: Govt. recognized the potential of this sector and launched Mega Food Park. It also adopted various measures such as modernization of Abattoir (Slaughter houses), modernization of meat shops, upgradation of street food, effective implementation of Food Safety and Standards Act 2006, technology upgradation, entrepreneurship development programme, setting up of training institutes, etc
Mega Food Park
These are the parks with state-of-art infrastructure related to all of the facilities required for food processing industry with their captive power plants, transportation and other hygienic facilities to attract food processing units to avail of this infrastructure for manufacturing food-processed items.
The target was to set up 30 Mega Food Parks, but only 9 came up.
XII Five Year Plan: There was significant shift in govt. policy towards this industry in XII FYP, as it allocation to the tune of 4-times as compared to XI FYP, with an outlay of Rs. 15000 crore. It also launched National Mission on Food Processing, in the background of the success of National Mission on Horticulture.
National Mission on Food Processing
The mission has two main principles: Decentralization and Outreach.
The mission is totally centrally sponsored and the responsibility of its implementation lies with the state govt., who will have to take initiative in organizing the unorganized food processors into SHGs (Self-Help Group) and provide them training and other facilities. State govt. will have to bring about synergy between agriculture and food processing industries.
Budget 2016-17
Govt. has decided to allow 100% FDI in multi-brand retail for food products produced and processed in India will play a catalytic role in leapfrogging Indian economy.
Future
It will be the endeavor of policy makers to ensure that food processing industry conform to global standards of health and hygiene and adopt CODEX standards (related to food safety) laid down by Food & Agriculture Organization and WHO, for the protection of consumer health.
Food processing needs a fillip in the form of better logistics, access to credit, technology indigenisation and implementation of food safety laws.
Suggested Readings:
Untapped potential of food processing – The Hindu
Food Processing in India – Make in India