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Food safety authority gets less than half of what it sought New Delhi: The Food Safety and Standards Authority of India has been allocated less than half the funds it had sought from the government for the five years to March 2017, but will wait until a mid-term review late next year to decide if needs more money, an FSSAI official said. “FSSAI had originally demanded Rs5,000 crore (under the 12th Five-Year Plan), which was later cut to Rs4,600 crore by the working group in its recommendations. Now, it has been further slashed and the government approved only Rs2,350 crore,” this official said. The agency was informed about the allocation in January, the official said. “The mid-term review of the Plan will most likely happen by the end of next year. If FSSAI finds that this allocation will not be sufficient, then it will surely raise (a) demand for enhancing the amount,” the official said. FSSAI chairman K. Chandramouli said: “We had asked for Rs5,000 crore during the 12th Plan. This was sought keeping in mind the huge work to be done during this period.” As a new organisation, FSSAI’s biggest challenge is to evolve standards of food safety and implement them, he said on the sidelines of a seminar by the Indian Beverage Association in New Delhi on Friday. FSSAI was set up in 2008 after the Food Safety and Standards Act was passed in 2006. It became active only after regulations of the Act were notified in 2011. The agency is working to bring on board about 55 million people engaged in various food businesses and register them with the organisation by February 2014, Chandramouli said. Currently, only one million licences have been issued to food and beverage operators. To check and maintain food standards, FSSAI is in the process of setting up testing laboratories, he said. “Our aim is to have at least one laboratory in each state initially. Later, we plan it to increase this to at least one lab for every 20 districts in the next five years,” he added. There are currently 72 government laboratories, which are to be upgraded during this period. Simultaneously, 33 new such testing centres will be set up. On food imports, Chandramouli said: “Our country imports lot of food items now. Though there is no fixed figure available, but Rs2-3 lakh crore of foods come to India every year.” “We don’t have food and safety standards in the country which deal with food products across the spectrum. For this, we need to get the state governments and other stakeholders on board,” Chandramouli said, adding implementation of the FSSAI Act continues to remain a challenge. Vidhi Choudhary contributed to this story. India gets Rs 2,350 crore outlay for 12th Five-Year Plan NEW DELHI: The Food Safety and Standards Authority of India is understood to have been allocated Rs 2,350 crore under 12th Five-Year Plan as against Rs 5,000 crore it had sought for the period. According to official sources, although theFood Safety and Standards Authority of India (FSSAI) is not fully satisfied with this allocation, it will not raise its demand for an increase immediately. "FSSAI had originally demanded Rs 5,000 crore, which was later cut to Rs 4,600 crore by the Working Group in its recommendations. Now, it has been further slashed and the government approved only Rs 2,350 crore," the official said. The decision about the fund allocation for it in the 12th plan was intimated to FSSAI in January this year, the official said. "The mid-term review of the Plan will most likely happen by the end of next year. If FSSAI finds that this allocation will not be sufficient, then it will surely raise demand for enhancing the amount," the official said. When contacted, FSSAI Chairperson K Chandramouli said: "We had asked for Rs 5,000 crore during the 12th Plan. This was sought keeping in mind the huge work to be done during this period." FSSAI is a new organisation and the biggest challenge is to evolve standards of food safety and then implement it, he said on the sidelines of a seminar by the Indian Beverage Association here. The FSSAI was set up in 2008 after the Food Safety & Standards Act was passed in 2006. It became active only after regulations of the Act were notified in 2011. As per its plan, the FSSAI is working to bring on board about 5.5 crore people, engaged in various food businesses, and register them with the organisation by February 2014. "...The target is to register and issue licences to about 5.5 crore food business operators across India by February 2014," Chandramouli said. To check and maintain food standards, the country needs many testing laboratories and FSSAI is in the process of setting up these, Chandramouli said. "Our aim is to have at least one laboratory in each state initially. Later, we plan it to increase this to at least one lab for every 20 districts in the next five years," he added. At present, there are 72 government laboratories, which are to be upgraded during this period. Simultaneously, 33 new such testing centres will also be set up. On food imports, Chandramouli said: "Our country imports lot of food items now. Though there is no fixed figure available, but Rs 2-3 lakh crore of foods come to India every year." BUSINESS-STANDARD.com FSSAI seeks Rs 5,000 cr to set up food safety labs across the country The fund is proposed to be used during the in the 12th Five-Year Plan The Food Safety and Standards Authority of India (FSSAI) has sought Rs 5,000 crore from the Government for setting up food safety labs across the country, said K Chandramouli, chairperson, FSSAI. The fund is proposed to be used during the in the 12th Five-Year Plan. FSSAI also plans to register and license 55 million food and beverage firms, manufacturers and vendors, including companies in the unorganized sector, by February 2014 to harmonise food safety standards, Chandramouli said on the sidelines of an Indian Beverage Association seminar here today. “We do not have food and safety standards in the country which deal with food products across the spectrum. For this, we need to get the state governments and other stakeholders on board,” Chandramouli said. At present, just one million licences have been issued to food and beverage operators. Chandramouli said that implementation of the FSSAI Act continues to remain a challenge. Samachar.com and Newkerala.com Indian Beverage Industry will continue to witness double digit growth: IBA New Delhi, Apr 12 : The Indian Beverage Industry is at the cusp of a revolution, fuelled by changing lifestyles, a growing middle class, rapid urbanisation and increased disposable income. The Indian Beverage Association(IBA) expects the beverage industry to continue its strong growth trend, witnessing double digit growth during the current year. This growth will be despite the recessionary trends being shown by most economies the world over, including the Indian economy. Experts from the Indian beverage industry made these remarks at a seminar organised by the Indian Beverage Association in Delhi on the subject 'Agenda For Growth: Indian Beverage Industry -- Leveraging International Practices'. The nonalcoholic ready to drink beverage industry has been growing at a compounded annual growth rate of 13 per cent since 2009 and is one industry that has defied the slowing economic growth. The seminar was addressed by some leading voices from the Indian and International beverage organisations like Rakesh Kacker, Secy, Govt of India, Ministry of Food Processing Industries; K Chandramouli, Chairperson, FSSAI; Geoff Parker, President, International Council of Beverages Associations, and Patricia Vaughan, Senior Vice President, American Beverage Association. At the deliberations in the seminar, speakers observed that the macro indicators and the demographic dividend favour robust growth for the beverage industry in India. With an enabling policy regime, which includes a more rational tax structure, frequent consultations with the industry on food regulations, giving the industry its due recognition as manufacturers of high quality, healthy and nutritious products as well as life critical products like water, will further help the industry realise its potential. As an industry that has strong backward linkages with agriculture, its growth will also benefit millions of farmers across the country. One of the key areas of intervention where the beverage industry expects Central and State government intervention is in the area of GST and Direct Tax Code (DTC). The beverage industry has learnt that the earlier plan of single rate for both Central GST and State GST is reportedly being talked about as three different rates. This defies economic logic and is indicative of difficulty in moving forward the proposal of Constitutional amendment in Indian Parliament. The IBA also suggests that the beverage industry be made a key stakeholder in the introduction of GST and should be a natural partner in the process of consultation while formulating the plan and roll out of GST. The extent of involvement of industry currently in the consultation process needs to be scaled up and made more intense and frequent. Similarly, the VAT rate of six per cent is applicable to fruit juice and fruit juice based drinks. Despite the states coming to an understanding that fruit juice and fruit juice based drinks will be under six per cent VAT rate, some states have increased the VAT substantially. The move to increase VAT on fruit juice and fruit juice based drinks will subvert growth of the juice industry as also the development of the fruit and vegetable processing industry. Further, some states have also increased the VAT on carbonated soft drinks. Soft drinks industry is already reeling under margin pressure due to high rate of taxes it is already paying to the Central and State Governments. This increase in taxes will therefore have to be passed on to the consumer leading to an increase in the price of the soft drinks, which will restrict purchase of soft drinks by the general mass. This in turn will have a chain effect on the beverage industry and industries that depend on the beverage industry. An increase in price also favours spurious manufacturers to sell their products on the basis of the cost arbitrage. On the regulatory front, the industry expects that the food safety authorities remove roadblocks and provide much faster clearances and approvals on ingredients and new products, without compromising the safety and quality of new products. This is most relevant incase of proprietary foods where inordinate delays result in food and beverage companies having to wait for many months before launching new products. The Indian Beverage Association also suggested that CODEX should be made a reference point for national food control agencies. The CODEX international food standards, guidelines and codes of practice contribute to the safety, quality and fairness of international food trade. Referencing to CODEX will help the Indian Beverage Industry contribute a higher share to global food and beverage trade, which is estimated at USD 200 billion dollar, globally. Mr Arvind Varma, Secretary General, Indian Beverage Association, said, 'The non-alcoholic ready-to-drink beverage industry is one of the largest investors in the country and has contributed significantly to the growth of allied industries. This industry is witnessing robust growth, driven by a combination of factors such as increased investments and innovations. However, the government needs to take a long term view on the industry while formulating policies or else there is a chance this industry's growth may get derailed. IBA aims to act as a catalyst to enable the non-alcoholic beverage industry to play an increasingly significant role in the growth of the economy, by providing employment opportunities and driving income growth and therefore has raised its expectations with the government authorities.'' Industry players also felt that research and development prowess will be the 'unlock' to move beyond global brands and develop local, indigenous products to suit regional palates, thereby driving further growth in the market. These innovations are meant to address the low per-capita consumption of packaged beverages and will create both direct and indirect impact. --UNI fnbnews.com Indian beverage industry's double-digit growth will continue, says IBA The Indian Beverage Association (IBA) expects the country's beverage industry to continue to grow in double digits in 2013, despite the recessionary trends being shown by most economies the world over, including the Indian economy. Speaking at an IBA-organised seminar titled 'Agenda for Growth: Indian Beverage Industry – Leveraging International Practices' in Delhi, experts from the beverage industry stated that it could witness a revolution, fuelled by changing lifestyles, a growing middle-class, rapid urbanisation and increased disposable incomes. Participants in the seminar included Rakesh Kacker, secretary, Ministry of Food Processing Industries, Government of India; K Chandramouli, chairman, Food Safety and Standards Authority of India (FSSAI); Geoff Parker, president, International Council of Beverages Associations, and Patricia Vaughan, senior vice-president, American Beverage Association. The non-alcoholic ready-to-drink beverage segment has been growing at a compound annual growth rate (CAGR) of 13 per cent since 2009, and is one of the segments that have defied the slowing economic growth. Arvind Varma, secretary general, IBA, said, "The non-alcoholic ready-to-drink beverage industry is one of the largest investors in the country and has contributed significantly to the growth of allied industries. This industry is witnessing robust growth, driven by a combination of factors such as increased investments and innovations.” “However, the government needs to take a long-term view on the industry while formulating policies or else there is a chance this industry’s growth may get derailed,” he stated. “IBA aims to act as a catalyst to enable the non-alcoholic beverage industry to play an increasingly significant role in the growth of the economy, by providing employment opportunities and driving income growth and therefore has raised its expectations with the government authorities,” Varma added. IBA's suggestions At the deliberations in the seminar, speakers observed that the macro-indicators and the demographic dividends favour robust growth for the beverage industry in India. “With an enabling policy regime, which includes a more rational tax structure, frequent consultations with the industry on food regulations, giving the industry its due recognition as manufacturers of high quality, healthy and nutritious products as well as life-critical products like water, will further help the industry realise its potential,” IBA stated. As an industry that has strong backward linkages with agriculture, its growth will also benefit millions of farmers across the country.
One of the key areas where the beverage industry expects Central and state government intervention is goods and service tax (GST) and direct tax code (DTC). IBA also suggested that the beverage industry be made a key stakeholder in the introduction of GST, and should be a natural partner in the process of consultation while formulating the plan and roll-out of GST. The extent of involvement of industry currently in the consultation process needs to be scaled up and made more intense and frequent.
The value-added tax (VAT) rate of six per cent is applicable to fruit juice and fruit juice-based drinks. Despite the states coming to an understanding that VAT would be charged at the rate of six per cent on fruit juice and fruit juice-based drinks, some states have increased the VAT substantially. The move to increase VAT on fruit juice and fruit juice-based drinks will subvert the growth of the juice industry as also the development of the fruit and vegetable processing industry. The soft drink industry is already reeling under margin pressure due to the high rate of taxes it is paying to the Central and state governments, but some states have also increased the VAT on carbonated soft drinks. This increase in taxes will, therefore, have to be passed on to the consumer leading to an increase in the price of the soft drinks, which will restrict purchase of soft drinks by the general mass. This, in turn, will have an adverse effect on the beverage industry and industries that depend on the beverage industry. An increase in price also favours spurious manufacturers to sell their products on the basis of cost arbitrage.
Industry players also felt that their prowess in research and development would help them move beyond global brands and develop local, indigenous products to suit regional palates, thereby driving further growth in the market. These innovations are meant to address the low per-capita consumption of packaged beverages and will create both a direct and an indirect impact.
The industry also expects that the food safety authorities remove roadblocks and provide much faster clearances and approvals on ingredients and new products, without compromising the safety and quality of new products. This is most relevant in case of proprietary foods, where inordinate delays result in food and beverage companies having to wait for many months before launching new products. IBA also suggested that CODEX should be made a reference point for national food control agencies. The international food standards, guidelines and codes of practice laid down by CODEX contribute to the safety, quality and fairness of international food trade. Referring to CODEX will help the Indian beverage industry contribute a higher share to the global food and beverage trade, which is estimated at $200 billion dollars. |
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