Showing posts with label policy. Show all posts
Showing posts with label policy. Show all posts

Friday, 5 July 2013

ANOTHER BLAH BLAH ABOUT STREET FOODS-NEW DECLARATION BY FSSAI!

What are the chances of one getting sick after consuming foods from vendors who serve their "mouth watering" products under the open air without worrying too much about hygiene and sanitation or the likely chance of the same to be vitiated by hundreds of smoke emitting automotive vehicles passing in front of them? Obviously there does not appear to be any major food poisoning episodes in India during the last three decades putting to rest the speculation in this regard by the western educated food scientists based on their perception of science! Could this be due to the extraordinarily tough stomachs Indians possess or is there any other strong reason? Probably these vendors are not as irresponsible as being made out by "scientific" surveys undertaken from time to time by scientists! One of the major reasons could be that most foods offered are cooked on the spot and served hot leaving very little chance of contamination from pathogenic microbes. Those which are not served hot are either sour tasting or salt laden or laced with sour curds that, here also there is very little chance of the customers getting sick. Against this background the recent proposal from Delhi to initiate a "certifying" scheme for these small players, purveyors of tasty local foods, may be somewhat out of place and it will likely to end up as an harassment tool that might be deployed by petty officials to extract extortion from them. Here is a take on this new "awakening" in Delhi about the safety of street foods, after doing nothing for ages!  

"Vendors wearing gloves while serving up plates of pani puri or donning a chef's hat while stirring spicy bhel may soon be a regular sighting to Mumbai's street food culture. Street food is set to become certifiably safer with the central government kicking off their Safe Street Food project across fifteen cities in India including Mumbai, Delhi, Hyderabad, Bangalore, Ahmadabad, Kolkata, Patna, Lucknow, Varanasi, Dehradun, Bhubaneshwar, Agartala, Jammu, Trivandrum and Chennai. The project will take off in November this year. Food Safety and Standard Authority of India's (FSSAI) that launched the Safe Street Food project plans to use officials from the state Food and Drugs Administration (FDA) to narrow down food stalls at Juhu and Girgaon Chowpatty as a part of the pilot project. Prior to the implementation, a detailed project report has been sought by FSSAI from all states. FDA officials are currently seeking information on 80 food stalls in Juhu and 28 stall in Girgaon about their working practices. "We are closely studying the cooks to see if they maintain hygiene while cooking. We are also observing how they store food and dispose garbage," said Kamlesh Sankhe, joint commissioner (food), FDA. Apart from training the street vendors on handling preparation, storage and presentation of food, the central government has instructed the state and BMC to develop an infrastructure at street food hotspots to make them more tourist-friendly. "We have repeatedly requested the civic and state authorities to provide sheds as protection from the rain and winds. Toilet facilities, waste disposal and drainage facilities should be provided as well," said Atul Gupta, treasurer, Girgaon Bhelpuri Khadya Peey Vikreta Industrial Products Co-operative Society Limited".

The response from the organization that represents street vendors is logical and correct. In stead of a window dressing approach, what the government must do is to relocate these vendors to food complexes with complimentary facilities like safe water supply, access to clean toilet and clean environment. Every city in this country should have a few such infrastructure set ups immediately for shifting the existing vendors and establishing new players with minimum hassles. The street food lovers in this country, millions in number will owe a debt of gratitude to the government, if it thinks in this direction. Of course in a country where every exercise by the government has more publicity value than substance, it may be too much to expect such progressive measures to be implemented in the foreseeable future! 

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

Friday, 7 June 2013

IS SUGAR BECOMING BITTER?-A MINISTER'S PRIORITY!

In India the citizens are left wondering as to how many caps a minister can wear simultaneously, miserably failing to do any thing properly and efficiently! Any one watching the sordid cricket "circus" on the electronic media during the last one week must have noticed that it is the politicians who "manage" cricket in this country though none of them would have even handled a bat or a ball in their life. Same is true with all sports bodies where politicians, even in their seventies and eighties refuse to allow others younger and more knowledgeable than them to assume responsibility. Analogous to this, the cooperatives in this country also are "infested" with politicians of all hues and colors and even when they assume ministerial responsibilities , their industry interests are above that of the poor citizens. Here is an example of the agriculture minister of the country canvassing for the interests of the cooperative sugar industry by demanding from his own government to make sugar more expensive to the consumer through import policy manipulation! Probably he must be thinking that the citizens affected by such rise in sugar prices, will forget it during election time! Further he must be sure that electorates are just fools not capable of punishing him for his misdeeds and will reelect him every 5 years without fail! Here is his case.

"The minister said that despite drought in Maharashtra, India's sugar production in the 2012-13 crop marketing year that will end on September 31 is expected to be around 25 million tonnes. When these are added to the season's opening balance of six million tonnes, it will leave the country with around eight million tonnes in stocks when the current  season ends. "Therefore, availability of sugar will be much more than domestic consumption , despite the drought in Maharashtra. Hence, we do not need imports at this stage," Pawar is believed to have written. According to industry officials, usually, the country's opening balance of sugar is around 4.5 million tonnes. Giving another reason for increasing the import, officials said the minister let as international prices of sugar have been falling in the last few months, the Indian market has also dropped. The domestic price has seen a steady fall since October 2012, which has led to the accumulated cane arrears and hence, the import duty should be hiked, Pawar wrote. India's sugar production has stabilised at  23-25 million tonnes because of a declining recovery ratio. Recently, the government partially removed some of the decades-old curbs on the  Rs 80,000 crore sector, which is expected to boost its efficiency in the coming years. It abolished the levy sugar mechanism, under which millers had to sell a fixed portion of their annual produce to the government for distribution through ration shops at cheap rates. It also gave the mills freedom to sell any quantity of sugar at any point of time."

More concessions government gives, higher is the appetite for making money at a faster pace as far sugar industry is concerned. It was very recently that government decontrolled the sugar sector, removing the levy sugar system for two years and with this one policy change sugar sales by the manufacturers are now driven purely by supply-demand dynamics. Though this sector was happy initially, it soon realized that its fortunes are influenced by international sugar market prices as India, being a member of WTO has to ensure free trade as a part of its commitment to the world body. As the global sugar prices are falling, imports are cheaper than that expected by the industry. The domestic industry is not able to make killing profits as it has hoped and hence this demand by the minister who is also a prominent sugar baron to increase import duty substantially so that domestic prices can also be raised! Why the poor sugarcane producers are being used as a pawn in this dirty game should e understood in this context. The rich sugar barons have money for every thing in life but plead  that liquidity problems prevent them from paying the mandated minimum price for the sugarcane crop to the farmers when it is delivered at their factory gate. It is time that the government stands up to their machination, does not buckle under their lobby and does not sacrifice the interest of the poor farmer.  

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

Friday, 24 May 2013

STREET VENDORS IN INDIA-THE ELECTION EVE ATTENTION FROM THE GOVERNMENT!

World over street foods are offered from the side pavements of many roads in major cities and towns where real estate is exorbitantly expensive and non-affordable to most small scale food vendors. It is true that this is a despicable practice due to its nuisance value to the citizens who are forced to walk on busy roads endangering their lives in the process. From time to time eviction efforts are made by the civic authorities but without much lasting success. Though most street vendors are supposed to be poor, they bribe the police as well as the civic officials to continue with their business without any harassment and hindrance. Since this sector has grown rapidly due to the affinity of even well to do citizens to the hot foods served by them on the road side, wishing away this phenomenon is no more possible and it has assumed a different dimension from a humanitarian angle. It is unbelievable that in India there are about 10 million hawkers across all the cities and towns doing a thriving business and since they constitute a sizable vote bank, the present political dispensation ruling in the country, in a desperate effort to expand its vote bank,  has cast its eyes on this group promising many things to attract their loyalty. A bill to offer many sops to these vendors has been just cleared by the government which is sought to be rushed through the Lok Sabha shortly. Here is a take on this new "sop avatar" being pushed through hastily for reaping the "harvest" in the forthcoming national election.

Ahead of the 2014 elections, the UPA government on Wednesday offered a major sop to the about 10 million street vendors across India – a part of its targeted aam admi vote bank. After hanging in fire for over a year, the Union cabinet cleared the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Bill, which once enacted will go a long way in protecting the rights of vendors by giving them legal protection. Presently, there is no law to regulate and safeguard the interest of urban street vendors in India The bill mandates municipalities to set up restriction free vending zones/ night bazaars where hawkers can sell their wares without being harassed by the authorities. Town vendor's committee which will have representatives from municipalities as well as vendor associations will demarcate space where vendors can operate. The Housing & Urban Poverty Alleviation ministry which is piloting the bill intends to introduce it in the ongoing budget session of the Parliament. However, it looks unlikely with the opposition continuing to disrupt the session. The bill will allow anyone over 14 years to apply and register as street vendor on payment of one time fees. Once registered, the vendors would be given identity cards entitling them to sell their wares in specified vending zones. It will do away with the existing license system that has become a tool of harassing the street vendors. In a city, 2.5 % of the total population would be eligible to register as street vendors. Besides, it will also help authorities regulate hawking activities in public spaces such as pavements, parks, and thoroughfares. The bill was earlier introduced in Lok Sabha last September and was subsequently referred to the Standing Committee on Urban Development. The committee which made several recommendations such as allowing vendors outside railway stations to be included under the bill's ambit were incorporated by the urban poverty alleviation ministry in the draft bill that was cleared by the cabinet Wednesday.

It was almost 25 years ago that the issue of street hawkers was brought to national attention and a few NGOs did try to bring in reforms to streamline the vending kiosks emphasizing on hygiene, sanitation and consumer safety. Many civic bodies introduced a sort of licensing and monitoring their activities through their health department officials. Even international attention was focused for some time on street vending which is prevalent in many countries in Asia and lot of efforts were made to "modernize" the kiosks with emphasis on cleanliness, safe water use and strict personnel hygiene. The present Bill is a good initiative and if properly drafted to cover the entire gamut of the issue, it can be a significant step in creating a win-win situation to both the vendors as well as the consumers. Unfortunately political chicanery to steal credit may yet derail the Bill. It is imperative that all political parties irrespective of their color or creed or biases contribute in refining the Bill so that it is practical, useful and of immense benefit to the urban consumers.    

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com
          

Friday, 17 May 2013

IS THE FOOD GRAIN POLICY OF GOI IN SHAMBLES? APPARENTLY SO!

The food glut scare is giving no sleep to the babus in Delhi who are running helter skelter to find a way to manage the grain stocks, old as well as new, now being procured without inviting Supreme Court wrath or consumer backlash. As there are no long term policies in place governing agricultural production and export, the dynamics of grain flow change from day to day. If exports are allowed to day, it could be banned tomorrow when there are some protests from the people. The crop pattern in the country also is highly skewed with water guzzling crops like Sugarcane, Banana and wineyard grapes getting preference in water utilization policies pursued during the last few years. Immediate concern is whether surplus food grains over and above that is required for domestic consumption between the harvests as well as for food security, reported to be sufficient to feed half the population for an year, can be safely exported without causing any price distortion in the market place. Some experts feel that it is safe to export a predetermined quantity of grains as a part of a long term export policy with flexibility to increase whenever there is too much of a surplus. However a timid government with the 2014 election uncertainties staring at it, does not seem to have the courage to open up grain export for earning valuable foreign exchange. Here is a take on this issue which is a "hot potato" for Delhi to handle comfortably! 

"India should adopt an 'open' policy for food grains exports so that small farmers are benefited from prevailing higher global food prices, Shenggen Fan, Director General, International Food Policy Research Institute (IFPRI) on Friday said. India must also reduce rising food subsidy by 'better' targeting of Public Distribution System, Fan observed. "At present the PDS is not well targeted which is leading to pilferage of food grains. By reducing food subsidy, more financial resources could be allocated for research and development in agriculture," Fan told FE. "India being the biggest the rice exporter must have an open export policy for increasing farm income realistion ," Fan commented. India has emerged as the world's biggest rice exporter in 2012 surpassing Thailand with shipment of around 10 million tonnes after a four year old ban on rice exports were lifted in 2011. He said China may increase the volume of rice import from India in coming years because of rise in cost of farm production. China's total rice import was 2-3 million tonnes from Vietnam and India last year. "It is just a beginning and China's rice import from India could enhance in the coming years with cost of labour, water and land increasing. Also, it is cheaper to import food grains from India instead of providing subsidies to farmers," Fan, the head of the key global think tank observed India has a huge food grain stocks – mostly rice and wheat, due to bumper production last year. The rice and wheat output was reported at record 104.32 million tonnes and 93.90 million tonnes, respectively. Due to US drought, the global food prices are expected to higher and volatile during the year, He said due to uncertainty in supplies of wheat, corn and other crop because of drought in many parts of the world is expected to keep supplies situation 'volatile'. "We need stability in higher food prices as because of lack market access small farmers have not been able to take advantage of the prices," Fan said while predicting that global food prices during the year will be 'high and volatile'. On level of poverty in Asian countries like India and China, Fan observed, "The region as a whole is not on track in meeting the millennium development goal (MDG) of cutting the rate of undernourishment by half between 1990 and 2015." "India accounts for some 217 million or a quarter of all undernourished people globally. As a result, India is likely to miss the MDG target," he said. Calling for hiking investment in the agricultural research, Fan observed that agricultural spending in research and development generally has the largest positive effects on growth and poverty reduction. "For each unit of local currency spent on the agricultural R&D, on average 11 local currency units are returned. For every rupee invested in agri-research in India,Rs 13.5 is returned," a IFPRI study has stated. "Indian government should increase investment in agriculture, rural infrastructure and education as these have high payoffs in terms of raising smallholder farmers' productivity and incomes," Fan noted."

Is it not remarkable that Indian farmer has not failed the country in spite of enormous odds faced by him with severe water scarcity and limited support from the governments at the Center as well in the states and this year also a bumper harvest is predicted? Scores of farmers are starving and committing suicide with a sickening regularity because of many socio-economic reasons and the farm operations are increasingly becoming economically unviable with too many uncertainties. The small land holdings in the hands of small and marginal farmers cannot be expected to generate adequate cash for meeting the daily necessities of life for them. Cooperative model for integrated development of land does not seem to be working except in the case industrial crops like Sugarcane and Banana, that too monopolized by big land holders with powerful political connections. Under these circumstances Government must encourage exports in a big way and utilize the earnings for improving the lots of the poor farmers of India.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

Tuesday, 14 May 2013

IS THE FOOD GRAIN POLICY OF GOI IN SHAMBLES? APPARENTLY SO!

Many international experts believe that India has reached a tipping point as far decision making is concerned and if GOI does not face the daunting task of addressing the grain surplus on its hands, future governments and the nation will have to pay a heavy price for shirking the responsibility. Shockingly the very fear GOI is having regarding food inflation if massive export is allowed right now is going to haunt it later because locking up the grains under unsafe conditions and starving the market can lead to only sharp increase in prices which is already being experienced by the middle class population most of whom will have to depend on free market grains for their day to day sustenance. With the general election due any times now, sooner this policy jam is removed better it will be for the country at large. Here is some critical commentary on this vexatious issue now being faced by the country.   

"India should adopt an 'open' policy for food grains exports so that small farmers are benefited from prevailing higher global food prices, Shenggen Fan, Director General, International Food Policy Research Institute (IFPRI) on Friday said. India must also reduce rising food subsidy by 'better' targeting of Public Distribution System, Fan observed. "At present the PDS is not well targeted which is leading to pilferage of food grains. By reducing food subsidy, more financial resources could be allocated for research and development in agriculture," Fan told FE. "India being the biggest the rice exporter must have an open export policy for increasing farm income realistion ," Fan commented. India has emerged as the world's biggest rice exporter in 2012 surpassing Thailand with shipment of around 10 million tonnes after a four year old ban on rice exports were lifted in 2011. He said China may increase the volume of rice import from India in coming years because of rise in cost of farm production. China's total rice import was 2-3 million tonnes from Vietnam and India last year. "It is just a beginning and China's rice import from India could enhance in the coming years with cost of labour, water and land increasing. Also, it is cheaper to import food grains from India instead of providing subsidies to farmers," Fan, the head of the key global think tank observed India has a huge food grain stocks – mostly rice and wheat, due to bumper production last year. The rice and wheat output was reported at record 104.32 million tonnes and 93.90 million tonnes, respectively. Due to US drought, the global food prices are expected to higher and volatile during the year, He said due to uncertainty in supplies of wheat, corn and other crop because of drought in many parts of the world is expected to keep supplies situation 'volatile'. "We need stability in higher food prices as because of lack market access small farmers have not been able to take advantage of the prices," Fan said while predicting that global food prices during the year will be 'high and volatile'.On level of poverty in Asian countries like India and China, Fan observed, "The region as a whole is not on track in meeting the millennium development goal (MDG) of cutting the rate of undernourishment by half between 1990 and 2015." "India accounts for some 217 million or a quarter of all undernourished people globally. As a result, India is likely to miss the MDG target," he said. Calling for hiking investment in the agricultural research, Fan observed that agricultural spending in research and development generally has the largest positive effects on growth and poverty reduction. "For each unit of local currency spent on the agricultural R&D, on average 11 local currency units are returned. For every rupee invested in agri-research in India,Rs 13.5 is returned," a IFPRI study has stated. "Indian government should increase investment in agriculture, rural infrastructure and education as these have high payoffs in terms of raising smallholder farmers' productivity and incomes," Fan noted. 

The argument that India must invest more on agricultural research is well reasoned one and to add to this it may be appropriate that more focus is made on pulses and oil seeds, both in tremendous short supply currently. According to dispassionate observers GOI's obsession with crops like cereals, sugarcane and other crops, ignoring the precarious situation vis-a-vis pules and oil seeds can further exacerbate the food security problem in the coming years. A population fed on a predominantly carbohydrate diet cannot be expected to be healthy as per present nutritional norms. It is time GOI addresses these issues without losing further time and take a long term agricultural policy decision based on domestic food needs and export potential for commodities in which the country has excelled itself.  

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

Monday, 14 January 2013

"DESI" FARMERS FLOURISHING IN "VIDESHI" LANDS!- A PARADOX!

A perennial question that has been begging for an answer in independent India is whether the country will ever be self-sufficient vis-a-vis the basic foods like cereals, pulses and edible oils? When the much hyped Green Revolution was at its pinnacle, many citizens in this country entertained hope that self-sufficiency was achievable one day or the other. But with each passing day the pessimistic population is increasing and for a valid reason. The agricultural policy of the country, if there is one, is a sham with neither the NPC nor the GOI having any clue regarding the direction the country is moving. Year after year the gap between demand and supply is widening at an alarming rate when it comes to pulses and edible oils. As for the cereals, though adequate production is being achieved to meet the statistical average per capita need, due to economic compulsions many poor families have limited or no access to them at affordable price. The global demand for food grains may provide an outlet to the surplus production of many farmers through export but the restrictive and unpredictable export policy of GOI is a dampener to such efforts. Naturally the suppressed entrepreneurial energy of aspirational Indian farmers can find expression only in a foreign land with free environment and minimum hassles by way of government interference. Here is the story of the farmers from Punjab region who are making it big in countries like Ukraine, Uzbekistan, Georgia and other erstwhile states of former Soviet Union, cocking a snook at the GOI leaving it red faced! 

Singh, 38, is one of a new wave of farmers pioneering one of the world's more unlikely migrations. During a recent spell as a cook in Dusseldorf, Germany, he heard about thousands of acres of fertile land on former collective farms lying fallow in Georgia for want of manpower. The contrast with his native Punjab, with its surging population and high land prices, was striking. So two months ago, he and three friends flew from Amritsar to Tbilisi, the Georgian capital, to seal a deal for the lease of 50 hectares. Back for a short break and some tandoori chicken, Singh said he was very happy with the move, even if he remains slightly vague about the geography of his new home. "We are paying $950 [£580] for each hectare for a 99-year lease. You'd not get much for that in the Punjab. I'm not sure if the farm is in the north or south but it is sort of over by Turkey and Armenia," he said.Singh and his associates are far from alone. A growing number of Punjabi farmers are heading for Georgia. Agents in major towns such as Jalandhar are advertising Georgian land deals and business is brisk. "It started a while back, just a dozen or so. Maybe now it is hundreds. Once words spreads there will be many. They come to me for passports. They are looking for pastures new," said JS Sodhi, the bureaucrat who issues travel documents in Amritsar, the nearest major city to Manochahal.The farmers of the Punjab, known as the grain basket of India, have long searched overseas for new land. An earlier wave of migrants went to Canada, where urbanization meant thousands of farms were empty. More recently, Punjabi farmers have been buying or renting thousands of hectares in Ukraine, Uzbekistan and across eastern and central Africa."Punjabi people are always going to different countries. They are very adventurous and enterprising," said Sodhi.

The success of these entrepreneurs will depend to a large extent on their ability to respect the local population and its ethos and culture. Identifying themselves with the local citizenry and working for their uplifting through better employment opportunities and working conditions can be expected to endear them to their country of adoption. The idea that foreigners are allowed to own land by these countries must have strong reason and that could be to increase food production to meet the local demand. Therefore any marketing efforts must keep in view the food situation in that country and at least a part of the local need must be met from the production achieved by the Indian entrepreneurs. Probably Indians can be expected to learn valuable lessons from their foreign enterprises in course of time and must keep in mind the catastrophic experience of early Indian settlers in Africa who had to flee from these countries under tragic circumstances. Let it be a win-win situation for both the Indians and the countries of their adoption.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

Sunday, 18 November 2012

FOLIC ACID IN BREAD-UNIVERSAL FORTIFICATION NECESSARY?

The issue of food fortification is a complex one and authorities world over are pulled between the desire to improve the health of their population and apprehension regarding the adverse effect of universal fortification. In a case like iodization of salt there was irrefutable data that even those having adequate iodine level in their system are not adversely affected by iodine coming from fortified salt. However this is not true with fluoridation of water because fluorides in excess can cause problem in many cases. In a country like the US most processed foods are fortified, obviously to restore part of the nutrients lost during manufacturing process but the over all effect of such fortification is still uncertain, some even claiming that such fortification improves only the financial health of the pharma industry which makes these nutrients for supply to the food industry! Latest controversy comes from New Zealand where animated discussions are taking place to make fortification of bread with Folic acid vitamin mandatory. The obvious basis is that such fortification prevents birth of children with neural tube defect (NTD). Like other cases this is also a complicated issue that can have multiple dimensions. Here is a take on this.

"Plans to introduce mandatory folic fortification in a bid to reduce the number of babies born with neurotube defects have been rejected by the Government. Minister for Food Safety Kate Wilkinson said today bakers will be able to decide whether or not tofortify their bread products with folic acid, as they have done for the last two years. "Folic acid plays an important role in reducing NTDs in babies, but fortification of bread is only one part of a wider package of initiatives," said Wilkinson. The plan has been advocated by the Paediatric Society in a bid to see a reduction in neural tube defects which can cause conditions such as spina bifida. However, the food industry has advocated to keep the status quo, saying any change reduces consumer choice and exposes the entire population to folic acid. Food & Grocery Council (FGC) chief executive Katherine Rich said it made no sense to effectively expose every man, woman and child to high levels of a folic acid in an attempt to reach a small number of women. "There is enough evidence to suggest our folate levels have increased considerably under voluntary fortification and that with more time to continue this work that trend is expected to continue. "The food industry supports the Government's aim of improving folate levels in women of child-bearing age." Rich said the last report to the Ministry for Primary Industries showed there were 34 lines of packaged fortified breads already available for consumers".

The argument that to target a small percentage of population vulnerable to NTD, it is not justifiable to force the entire population to consume higher level of Folic acid is indeed valid. Besides the economic cost involved in fortification, no one knows the long term effect of consuming higher levels of Folic acid in humans than that recommended for sound health. Probably voluntary efforts by the industry to target pregnant women only through special Folic acid enriched products may be more logical than making such practices mandatory. Besides it is normal for pregnant women to take additional nutrient supplements during pregnancy as per the advice of their doctor. After all it must be remembered that a normal balanced diet based on a variety of natural foods like whole cereals and pulses, fruits, vegetables and spices may not need any supplementation at all at any time in life. For those eating meat and fish regularly the question of Folic acid deficiency may not arise at all.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

Sunday, 4 November 2012

FDI IN INDIAN RETAIL-WILL THE "PROMISED DREAM" FRUCTIFY?

The FDI debate does not seem to be fading away even after GOI notified the policy of 51% investment in retail business by foreign players. Probably the fervor with which the PM and other ministers are using this as an achievement of the government frequently, is giving opportunities to those opposing the new policy with equal vigor to keep the controversy going! Umpteen number of articles have appeared, supporting as well as opposing the move to allow foreign investors in retail business and one of the most illuminating critique which appeared recently gives a balanced view. Here is a take on this much discussed issue.  

"In the mid-1980s, Pepsico came up with a proposal to bring in a 2nd horticultural revolution in Punjab. It was hailed as a path-breaking initiative that would put an end to the continuing distress on the farm. It was expected to usher in the latest technology, improve farm research and extension, create supply-chain infrastructure, and provide marketing linkages from farm to the fork. I remember the kind of excitement that prevailed all around. Politicians, bureaucrats, economists, agricultural scientists and even the Bhartiya Kisan Union (BKU) joined the chorus. All my efforts to reason out the hollowness of the claims, based on Pepsico's own studies, were simply lost in the din and noise created by the drum-beaters. Some 15 years after the project was approved, Pepsico's horticultural revolution is all but forgotten. Agriculture has gone from bad to worse.  The food bowl of the country has also become a major hot spot for farmer suicides. While the soft drink giant remains busy marketing its colas, Pepsico has not been held accountable for its failed promises. It will never be punished for selling a fake dream to the beleaguered farming community.  It is now the turn of Wal-Mart and other big retail giants. FDI in retail is once again being projected as a panacea for all the ills plaguing Indian agriculture. FDI in retail will lay out back-end infrastructure, bring in a chain of cold storage and improved transportation thereby reducing crop losses; remove middlemen which rob the farmers of profits, and thereby provide him higher prices; bring in improved technology to help in crop diversification; and of course create millions of jobs. The cheerleaders are once again on the road. This time, it is the corporate controlled electronic media that is drumming up the hype. Having spent Rs 52-crore in two years for lobbying alone, and after the recent New York Times exposure showing how Wal-Mart bribed its way to control 50 per cent of the retail market in Mexico, the Union Cabinet finally allowed big retail to set shop. If Wal-mart could bribe its way in Mexico, what makes us think they have not been able to do so in India?  
The well reasoned argument by the author of the above analysis demolishes the oft repeated assertion by the government that FDI in retail is a panacea for solving the problems of unemployment and low income agricultural families in India. Some how the GOI seems to be a great admirer of Goebbels, the propaganda minister under the Nazi regime during World War II, who perfected the art of telling a lie million times to sound it as truth! For example the oft repeated figures of food losses used to justify FDI were totally divorced of truth, magnifying the losses several fold with no scientific basis! Similarly the argument regarding increased farm income once foreign players establish their mega stores in India or increased employment resulting from their investments cannot be sustained if experiences in other countries who jumped into the FDI band wagon earlier is any reckoner to go by. In stead of touting lies and half truths to justify the new policy, GOI should have the gumption to say that in a free economy competition is the drive engine for better efficiency and there fore domestic players will become more efficient in the face of international competition. The allegation that foreign majors have bribed the decision makers for promulgating this new policy is a serious one and must be investigated for finding the truth. 

Friday, 2 November 2012

NEW TRANSPARENCY POLICY FOR RESTAURANTS-KERALA INITIATIVE

Kerala is supposed to be a 100% literate state in the Indian Union and hence one would expect the population there to be more sensitive to laws of the country which need to be respected by every citizen. The recent report that the hoteliers in that state are flouting the orders of the state High Court is some what disturbing. During the last two years the attitude and behavior of hoteliers all over the country have witnessed a sea change with prices of food preparations being hiked indiscriminately for no rhyme or reason. It defies logic as to why a cup of coffee should cost Rs 10 plus or an idli plate cost Rs 20-25 or a dosa cost Rs 25-30! Of course there is some inflation which is causing marginal rise in the market prices of raw materials but the prevailing prices do not justify such deep escalation, bordering almost on fleecing the customers. Added to this the food regulations are not being followed scrupulously with no one afraid of the law. Here is a take on this unfortunate development affecting millions of consumers who depend on hotel food for meeting their day to day needs.

Even as most of the hoteliers and restaurant owners in the city have started displaying price list of foods, they are yet to comply with the provisions of the Food Safety Regulations for exhibiting ingredients used in their food. As per the provision of the Act, the seller of the food articles is bound to display the ingredients used in foods being sold. High Court lawyer Basil Attipetty, who had obtained an order from the consumer court for enforcing the rules relating to display of price lists, said that the regulations had made it mandatory for sellers of any food stuff to display its ingredient list in their shops. He said that the High Court had recently emphasised the need for regulating the prices of even hotel foods and thereby preventing fleecing by hoteliers. Mr. Attipetty said that the Ernakulam Consumer Disputes Redressal Forum had also ordered displaying of price lists of food stuff in terms of the Kerala Food Stuffs (Display of Prices by Catering Establishment) Order, 1977. He said that some of the hotels were yet to exhibit the price list of food stuff in compliance with the forum's order. He had contended that as per the order, the police and local bodies and civil supplies department had the power to direct hotels and restaurants to display the price list of food stuffs. The forum had also directed the Kochi City Police Commissioner and Superintendent of Police, Aluva Rural, to file a report after implementing the order of the forum. He pointed out that the police officers were yet to file a report on the compliance of the directive. The High Court had also expressed its concern over the soaring prices of hotel foods and suggested bringing in a law to hold the price line of hotel food.

Price control is not a desirable step in a democracy, if it can be avoided. The hoteliers must have self restraint as well as sufficient sensitivity to the feelings of their customers. No body is holding a brief for the way the insipient FSSAI is functioning at present and there must be realistic moderation of rules equitable to both the consumer as well as the hotelier. The rules regarding display of prices along with quantity served must be enforced at any cost and violators must be meted out exemplary punishment. Same is true regarding the nature of ingredients used either through the Menu card or through display. Consumer has a right to know whether the preparations contain any ingredient not to his liking. For example use of ingredients like Garlic, Onion, Chilli and other spices may not  be liked by some and such display will help them to avoid preparations containing these objectionable ingredients. While insisting on such practices the authorities must also look into the practical difficulties faced by the catering industry in meeting such aspirations of the consumer. 

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

Monday, 9 July 2012

RAW MILK CONSUMPTION-THE "SAFETY" DEBATE

Why should the milk undergo the routine thermal processing involving heating to 161F for 15 seconds or any other heat treatment before marketing? Any school going kid will answer this question as every one knows it is a highly perishable commodity incapable of keeping in good quality even for a day without getting spoiled and becoming unfit for human consumption. There are many bacteria in milk by the time it is extracted from the milch animal and as it is one of the richest sources of vital nutrients for growth of any living organism, it is no wonder these bacteria proliferate quickly causing chemical, physical and microbiological changes in the material. Why some people are defying this scientific truth and still advocate consumption of raw milk is puzzling. Most charitable explanation could be that such irrational practices arise out of ignorance prevailing among some people. According to knowledgeable scientists, nutritionists, health pundits and toxicologists, raw milk consumption has the potential to make people sick through contamination with pathogenic bacteria like Salmonella, virulent E.coli, Listeria, Campylobacter etc with undesirable consequences like fever, head ache, diarrhea, abdominal pain, vomiting besides other long term health problems. Here is a commentary on this queer phenomenon of a few people stubbornly campaigning against pasteurization process and encouraging consumption of only raw milk.       

"Earlier this year, the U.S. Centers for Disease Control concluded a 13-year study and reported raw-milk products are 150 times more likely to cause foodborne illnesses than pasteurized dairy foods. In January, 81 people in four states developed intestinal infections from raw milk traced to a Franklin County dairy farm, according to the state Department of Health. They were sickened by campylobacter bacteria, which causes fever, diarrhea, vomiting and headaches. At least nine people were hospitalized. "The health issues are considerable," said James Dunn, Ph.D., an agricultural economist at Penn State University. "It doesn't have to be a big mistake to have a big implication. When you pasteurize milk, it kills the germs." Conventional milk is pasteurized in a process that typically heats milk to 161 degrees for 15 seconds to kill bacteria. Advocates of raw milk, though, say it can cure illnesses and protect against diseases. "Pasteurization is the greatest destruction of nutrients of anything we have in this country," said Sally Fallon Morrell, president of the Weston A. Price Foundation, a nutrition advocacy organization based in Washington, D.C. "Raw milk is an extremely nutrient-dense food." Unpasteurized milk helps protect against asthma, allergies and skin problems and builds strong teeth and bones, Ms. Morrell said.
"These things need to be looked at more," she said.

Some of the justifications touted by the protagonists of raw milk cannot stand scientific scrutiny and many of their claims are just outlandish. It is not correct to say that pasteurization destroys nutrients, creates lactose intolerance, causes allergy and kills active cells supposed to beneficial. Of course the argument that babies fed on breast milk thrive well is a perfectly valid one but it must be remembered that milk is directly transferred from the mother to the child without any out side intervention , thereby eliminating the chances of contamination of the ingested milk. In contrast commercial operations like milking, use of containers, milking environment, chilling, bulk transport, packing etc can cause havoc to the microbial quality of milk and only pasteurization process can stop this eventuality. The compulsions of modern life like ready access to milk 24x7, distribution time, retailing and storage in kitchen for consumption as and when needed all make it imperative to preserve the milk at least for a few days. Not only fluid milk but products made from raw milk including soft cheeses like Brie, Camembert, Queso Fresco, Panela, Asadero etc are also considered risky to consume, especially by vulnerable consumers like pregnant women, old people and those with weakened immune system. An interesting issue is that consumption of raw milk in the US has caused only less than 1000 milk related safety episodes since 1998 and therefore it would be better to leave those insisting on consuming raw milk to continue to do so, in stead of arguing the case against the practice.   

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

Monday, 2 July 2012

SUPER SIZED SODA AND POLITICS-WHAT IS THE REALITY?

Many ideas are emerging for the policy makers to attack the problem of food related health disorders such as over weight, obesity, CVD, diabetes etc. Unfortunately none of them seems to be working with many logistical and social problems cropping up during the translation of these policies into reality. Latest to arrive on the scene is a "ban" being attempted in New York by its well meaning Mayor to prevent the retailers from offering large volume beverage packs for sale. According to the framers of such a policy, consumers buy large sized bottles of high sugar beverages like soda, may be unconsciously, as a part of their mindset buying the most economic size disregarding the risks involved in consuming them regularly on their health. It makes sense because even the limited 16 ounce bottle, permitted under the proposed law, will provide more than 60 gm of sugar, much above the recommended level of 44 gm per day per adult by some health professionals. Naturally the question that begs for an answer is why such a size is selected knowing fully well the sugar load caused by consumption of a 16 oz bottle of soda. More shockingly the hostile reaction by many consumers to the above ban defies logic. It is interesting to listen to the comments by different groups to the ban proposal.  

"Reaction to the proposal came from many fronts on Thursday, falling along two general tracks. The idea was either sound health policy rooted in research, or a perfect illustration of a supersize government gone too far. Some health experts said there might be some correlation between restrictions on soft drinks — many locales, including New York, already ban or limit them from schools — and a leveling off, or in some places even a decline, in childhood obesity. But one researcher whose work was cited by City Hall in defense of the policy said in an interview Thursday that he did not think it would work. At least two candidates for next year's mayoral race also came out against the proposal Thursday, to varying degrees. Christine C. Quinn, the City Council speaker, said that by limiting personal choice, rather than promoting knowledge, "It seems to me to be more on the punitive side of things." And William C. Thompson Jr., the former city comptroller who lost to Mr. Bloomberg in 2009, released a statement saying, "This move does nothing to teach people about positive nutritional values and sounds more like parlor talk than real solutions for the obesity epidemic." The proposed ban — the first in the nation — would prohibit the sale of any cup or bottle of sweetened drink larger than 16 fluid ounces, though consumers would not be prohibited from getting refills or multiple servings.  It would apply to virtually an entire gamut of drinks including energy drinks and iced teas, but not to diet sodas, fruit juices, dairy drinks and alcoholic beverages, or to beverages sold in groceries or convenience stores. It would take effect in March 2013, after public hearings".
The attitude of the beverage industry is totally negative and instead of cooperating with the law makers who framed this policy in the interests of the citizens, industry has gone on a blitzkrieg attacking the government for this socially benevolent policy. In what way it is adversely affected by this new restrictions is not clear though there may be apprehensions about possible downturn in business which is misplaced. After all any one wanting to binge on high sugar beverages always has the option of buying more than one bottle of 16 oz till his hearts content! One is remained of the tactics of a reputed coffee chain which offers its products under the "small" category which itself has 12 oz while other versions have larger volumes of the drink! Though it has an 8 oz version also, 99% of the consumers never know about it as this is not offered unless one insists on it. Obviously industry does not want to do any thing related to consumer well being voluntarily and only such forceful measures can bring in results.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

Friday, 1 June 2012

POLICY PARALYSIS-IMPACT ON FARM FRONT


The present government in India is being criticized by many dispassionate observers for not taking right decisions at right time on many issues leading to distortions in the development of the country. This situation often described as "policy paralysis" can have long term consequences on the orderly progress of the nation affecting the lives of the 1.2 billion plus people inhabiting the country. There is no unanimity within the government itself as reflected by the divergent views expressed by the ministers on many issues that concern the nation. Latest to come to the fore is regarding the export policy which is causing lot of heart burns among some sections of farming community. Whether it is the wheat, sugar or cotton, government invariably takes long time to decide what to do with the surpluses putting every body involved in unnecessary suspense, some time causing economic losses in the process.  Recent open letter by the Agri Minister to the Prime Minister criticizing some of his own colleagues is a classical example of such a policy paralysis whereas what is needed is a dynamism to address the issue promptly before any damage is done. Here is a take on this episode which could have been avoided if there is a vibrant government sensitive to the needs of the country. 
"Irked by curbs on milk, cotton and sugar exports, Agriculture Minister Sharad Pawar has shot off a letter to Prime Minister Manmohan Singh stating that the government's policies are hurting farmers who are being asked to subsidise the industry. Pawar wrote to the Prime Minister yesterday, a day after group of ministers disallowed cotton export beyond 13 million bales for the current marketing year. He strongly criticised Food Ministry headed by KV Thomas and the Textile Ministry under the charge of Anand Sharma for the policies which are "ambivalent" and go against farmers. Describing restriction on cotton exports as "retrograde", the NCP chief said: "Indian cotton farmers should not be asked to bear the burden of subsidising the textile mills. "Compromising the interest of small cotton farmers to benefit the textile magnates is indeed a travesty of justice. Moreover, it defies logic to permit the consumer of cotton (textile industry) to dictate terms to cotton producer...". Similarly, he said the "negative approach" of the Food Department in allowing sugar exports has led to heavy losses in export earnings which could have been used to clear cane arrears to farmers that have crossed Rs8,000 crorePawar told the Prime Minister, "On numerous occasions I have discussed with you the need to have farmer-centric agriculture policy...On each of these occasions, I have found you in consonance with these ideas. "However, despite this our government has time and again taken decision which go against the interest of the farming community and adversely impacts its growth and stability". High input cost and low realisation from his produce has pushed the farmer into a corner where he fights for his survival, he said, underscoring the need for a free trade regime to ensure a remunerative prices to farmers".
Whether farmer or consumer is supreme is a question that must be haunting the government as any action taken in agricultural front should be equitable to both. Inordinately high prices paid to the farmer can have negative consequences on the consumer in the form of high food inflation making the lives of many poor citizens miserable. Similarly unduly favoring the consumers by depressing the prices of agri commodities will have disastrous impact on the agri front affecting the production and availability adversely. Free trade regime as is being talked about is ideal but if agri production is affected by drought or other reasons, the market conditions can get distorted because of mismatch between demand and supply. Whether any responsible government in India which depends on rain Gods too frequently to come up with normal agri production can adopt such a model is doubtful. Unless a stable and dynamic export policy regime is put in place both farmers and consumers are bound to suffer. When taking decisions the impact of the same on the domestic front should not be ignored. While cotton and sugar are commodities which can be left to the free market forces, more care is needed when it comes to milk and food grains, prices of which in the domestic market should not be allowed to be distorted due to excessive exports.  
V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

Tuesday, 22 May 2012

TO BE OR NOT TO BE!-THE POLICY PARALYSIS ON WHEAT

Is it not a fact that on every issue that confronts the nation there are at least two opinions and in a democracy there there can be as many views as the population itself? Latest issue that is inviting rave views concerns the bumper production of food grains being claimed by the government and what should be done with it because the grain storage capacity cannot accommodate the entire grains procured by the government agencies at an MSP considered high by many economic pundits. Added to this there are proposals to increase the MSP further to play to the farm lobby interest. Extent of wastage due to rotting of wheat which are stored in Godowns and open space under the CAP system is no body's business with even the Supreme Court castigating the government for its shirking of the responsibility to feed the nation qualitatively and quantitatively. The paradox and irony of the situation are graphically illustrated by a recent report which is highlighted below.

"Why are we paying Rs 20 for a kilo of atta when India has gathered a historic wheat harvest of 90 million tonne, enough to comfortably feed us all? Why is bread going out of the reach of lakhs of school kids, when grain is rotting in government godowns? Why is the Manmohan Singh government willing to subsidize wheat exporters but not ready to sell more in ration shops? There is only one answer to these troubling questions: it's no accident, it is policy. It starts with the government's inability to say stop. Government supplies wheat to ration shops and welfare feeding programmes through the Food Corporation of India. This year, after keeping aside buffer and strategic reserves, the FCI can be comfortably off with 35 million tonne. On April 1, when the new wheat marketing season began, government started with 20 million tonne left over from last year. And it has bought 10 million tonnes more since then. In other words, government can shortly exit the market. FCI has enough space to store this wheat safely. Thefood subsidy bill would be manageable. And there would be ample wheat left with farmers for food companies to buy. With a minimum support price of Rs 12.80 per kilo, atta would not cost us more than Rs 16. But this scenario doesn't reckon with politics. The government does not dare stop buying as long as even one farmer in Punjab and Haryana wishes to sell. The political reprisal would be swift and deadly. Till two years ago, there was a natural limit to government purchases because FCI was largely absent in other wheat-growing states. Then, under pressure from other chief ministers desperate to replicate Punjab's political success with wheat, government allowed states to buy on FCI's behalf. This opened the floodgates. Madhya Pradesh and Rajasthan began offering farmers the MSP plus Rs 1 per kilo extra, creating a stampede of sellers. Bihar, Gujarat, and Maharashtra are also buying enthusiastically". 

While large farmers are cozying up to the government to reap big profit from their large holdings, it is the small and marginal farmer with a tendency to commit suicide because of the inequities that stare at them are adversely affected, no matter how high the MSP is! How about the consumer who is sidelined in this raging debate and what are his thoughts? Desperation, frustration and helplessness are his fate! Why not government sit up and take note of the daily sufferings inflicted on him by the policy paralysis that is evident for the aam aadmi of this country? It is true that there is no magic bullet to save the country from chaos brought upon by the present power class which seems to be more obsessed in staying in power "at any cost". But displaying statesmanship and ability to recognize the sensitivity and sufferings of the people should be the hallmark of good governance and lot of the problem that face the country can be sorted out through sincere consultation and cooperation among the political class. Any body at Delhi listening?

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com