Weekly Newsletter #Food Processing sector Highlights the Policy news, Industry news, Investments news and Weekly snapshot.

1. ©
Gyan
Research
and
Analytics
Pvt.
Ltd.,
2015
Policy
News
❑ 12,000
standards
established
by
FSSAI
for
food
ingredients
and
additives
12,000
standards
for
food
ingredients
and
additives
have
been
finalized
by
Food
Safety
and
Standards
Authority
of
India
(FSSAI),
abiding
by
Codex,
global
safety
standards.
This
was
undertaken
to
eliminate
the
lengthy
procedure
of
approval.
According
to
this
approach,
if
the
food
companies
maintain
the
set
standards,
they
do
not
need
to
ask
for
approval
of
food
from
FSSAI.
For
food
ingredients
and
additives,
12,000
standards
have
been
approved
by
FSSAI.
The
maximum
limit
for
usage
of
food
additives
has
been
set
by
FSSAI,
under
Ministry
of
Health.
This
is
to
make
sure
that
the
additive
intake
is
not
higher
than
the
acceptable
daily
intake.
Norms
have
also
been
set
for
usage
of
ingredients
for
processed
food.
Moreover,
standards
for
imported
food
would
also
be
set
shortly.
Industry
News
❑
Nestle’s
objection
in
blanket
ban
on
Maggi
The
Bombay
High
Court
was
told
by
Nestle,
that
high
lead
content
in
a
single
batch
of
Maggi
does
not
justify
the
decision
to
ban
the
product.
The
ban,
labeled
as
“illegal
and
unfair”
by
Nestle,
had
been
imposed
in
June
2015,
due
to
which
the
company
has
suffered
huge
losses.
About
25,000
to
30,000
tonnes
of
Maggi
had
been
destroyed
by
the
company,
subsequent
to
this
ban.
According
to
Nestle,
Maggi
has
been
tested
in
2,700
labs
across
the
country,
and
the
lead
content
was
below
0.5
per
cent.
❑ Fall
in
the
number
of
branded
coffee
outlets
In
March
2015,
the
number
of
branded
coffee
outlets
in
India
has
fallen
from
1,943
to
1,863,
in
spite
of
the
increased
consumption
of
coffee.
However,
there
had
been
an
entry
of
Starbucks
Coffee
last
year
in
India.
❑ Import
of
palm
oils
rises
to
23
per
cent
In
June
2015,
imports
of
palm
oil
in
India
increased
by
23
percent,
amounting
to
7,34,358
tonnes.
As
a
result,
total
import
of
vegetable
oils
increased
by
15
percent.
In
June,
imports
of
vegetable
oils
in
India
amounted
to
1.02
million
tonnes,
depicting
a
rise
from
the
previous
amount
of
8,83,679
tonnes.
Investment
News
❑ Mahindra’s
entry
into
branded
edible
oil
space
The
agri-­‐business
segment
of
Mahindra
and
Mahindra
has
made
an
intrusion
into
edible
oil
space.
It
was
by
the
brand
name
“NuPro”
with
the
introduction
of
Virgin
Kachchi
Ghani
Mustard
Oil.
The
main
objective
of
this
intrusion
was
to
create
a
linkage
between
Indian
consumers
and
farmers.
NuPro
aims
to
establish
itself
as
a
top
level
brand
for
pulses
and
edible
oils.
The
price
of
Virgin
Kachchi
Ghani
Mustard
Oil
of
NuPro
is
INR
144
per
litre
pack.
Besides
making
a
foray
into
edible
oils
sector,
the
company
also
plans
to
enter
other
sectors
of
oil
such
as
rice
bran,
soya
and
sunflower.
1
Food
Processing
News
July
11,
2015
–
July
17,
2015

2. ©
Gyan
Research
and
Analytics
Pvt.
Ltd.,
2015
Investment
News
❑ Irrespective
of
ban
on
Maggi,
food
processing
fails
to
attract
FDI
According
to
Department
of
Industrial
Policy
and
Promotion
(DIPP),
for
the
last
15
years,
the
FMCG
sector
had
never
received
much
of
Foreign
Direct
Investment
(FDI).
The
food
processing
sector
had
already
witnessed
decline,
even
prior
to
the
ban
on
Maggi.
This
sector
has
received
an
amount
of
INR
36,952.87
crore,
from
April
2000
to
March
2015.
Since
2000-­‐01,
the
FDI
in
this
sector
has
always
been
below
INR
1000
crore.
Exceptions
were
the
fiscal
years
2014-­‐15,
2013-­‐14,
2012-­‐13,
2009-­‐10
and
2001-­‐02.
According
to
DIPP,
during
April
2015
and
the
fiscal
years
2013-­‐14
and
2014-­‐15,
the
food
processing
sector
did
not
qualify
among
the
top
ten
sectors,
with
regard
to
total
inflow
of
FDI.
In
October
2013,
Coca-­‐Cola
and
PepsiCo
had
stated
that,
they
would
be
investing
$5
billion
and
$5.5
billion
in
the
country,
by
the
year
2020.
❑ INR
300
crore
plant
in
Telangana
planned
by
KMF
Karnataka
Milk
Federation
(KMF),
selling
milk
under
Nandini
brand,
plans
to
join
hands
with
Vijaya
Dairy,
in
order
to
establish
a
milk-­‐processing
plant
worth
INR
300
crore.
This
investment
could
even
increase
to
INR
500
crore,
if
value
added
products
and
milk
powder
are
included.
There
has
been
an
agreement
between
Telangana
Milk
Federation
and
KMF
for
supplying
60,000
litres
of
milk
per
day,
besides
the
sale
of
75,000
litres
and
55,000
litres
of
fresh
and
long-­‐shelf
milk
per
day,
respectively.
As
much
as
two
lakh
litres
of
milk
is
supplied
by
Karnataka
Milk
Body
to
Vijaya
Dairy
in
peak
summers.
Besides
selling
2
lakh
litres
of
milk
per
day
in
a
region,
the
KMF
has
agreed
to
supply
five
lakh
litres
of
milk
per
day
to
Telangana
Milk
Body.
❑ Tie
up
between
Omfed
and
Amul
Orissa
State
Cooperative
Milk
Producers'
Federation
Limited
(Omfed)
has
decided
upon
a
tie-­‐up
with
Amul,
in
order
to
scale
up
its
operations.
A
memorandum
of
understanding
is
to
be
signed
for
the
same.
As
a
result,
amount
of
milk
received
by
Omfed
has
increased,
and
the
surplus
is
to
be
distributed
to
other
states
in
India.
Amul
would
now
be
receiving
Omfed
milk
at
its
Kolkata
plant.
As
a
result
of
this
tie-­‐up,
Amul
has
assured
Omfed
of
improved
quality.
In
2014-­‐15,
Omfed’s
procurement
of
milk
had
been
4.45
lakh
litres
which
has
now
increased
to
6
lakh
litres.
Currently,
Omfed
is
selling
milk
through
4,500
outlets
inclusive
of
750
retail
points
in
Bhubaneswar.
2
Food
Processing
News
July
11,
2015
–
July
17,
2015

3. ©
Gyan
Research
and
Analytics
Pvt.
Ltd.,
2015
3
Weekly
Snapshot
FDI
in
Food
Processing
(INR
crore)
-­‐
2015
Month
FDI
January 215.89
February 272.71
March 320.05
April 155.06
FDI
in
Food
Processing
in
last
three
years
(INR
crore)
Fiscal
Year FDI
2014-­‐15 3,164.72
2013-­‐14 25,106.78
2012-­‐13 2,193.65
Share
of
the
entire
FDI
in
various
sectors
(%)
Sector Percentage
share
Food
Processing 2.51
Services 17.03
Construction
Development 9.54
Telecommunications 6.77
Source:
Ministry
of
Consumer
Affairs

4. ©
Gyan
Research
and
Analytics
Pvt.
Ltd.,
2015
4
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Food
Processing
News,
July
11,
2015
–
July
17,
2015
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