INDIA'S WTO "WOES"-DOMESTIC COMPULSIONS VS INTERNATIONAL COMMITMENTS

Can India afford to antagonize the World Trade Organization (WTO) and if so what will be the consequences? These are relevant questions in the context of latest salvo from WTO regarding India's faulty export policies. Historically India has been practicing highly protective trade policies with severe restrictions placed on imports and exports. The excise duty regime was used to slap high import duty on imports so that domestic products could compete with them price-wise. Similarly high export subsidies were in place to support inefficient domestic industries to gain a foot hold in the global market. The situation changed dramatically once India became a signatory to WTO regime in the nineteen nineties. Once India is part of the global trading community, there are certain handicaps for continuing with a purely domestic agenda. Government of India (GOI) cannot be blamed entirely for this situation because it has its first obligation to its citizens and others come only after this constitutional responsibility is discharged. It is here GOI is is pulled between its political compulsions and international commitments. It will be interesting to see how GOI is going to resolve this dilemma.

"The World Trade Organisation has slammed India for its protective trade policy on food items that prevents exports at a time when world is facing record food prices. In its review of India's trade and economic policies, the WTO observed that India was one of the highest user of anti-dumping and a frequent user of safeguard measures against imports from other countries. "Trade policy seems to be lacking an overall thrust and is being conducted mostly on a sector or product basis," it said. India uses trade policy to attain short-term goals such as containing inflation, although it aims to provide a stable trade policy environment to reach its long-term goals, the report said. This use of trade policy for short term non-trade-related objectives may detract from the stability sought, as it requires constant fine-tuning of policies to attain these short-term goals. Focusing on two farm products, cotton and onions, the report highlighted how the government changed its policies frequently to meet its domestic needs, restricting, canalising, prohibiting and allowing free exports of the product within a short period. "This has resulted sometimes in actions with an anti-export bias (such as setting minimum export prices or applying export taxes), in contrast with the asserted general goal of seeking export expansion," it said. The country also links the use of import restrictions and licensing, and other non-tariff measures, or NTMs, to domestic policies. For example, NTMs are relaxed when imports are necessary to alleviate inflation or shortages. State trading is also used as a policy tool, to ensure, a "fair" return to farmers, food security, the supply of fertiliser to farmers, and the functioning of domestic support price systems, the report said. Between January 2006 and December 2010, India initiated 209 anti-dumping investigations against 34 trading partners, compared with 176 reported in its last review. On December 31, 2010, 207 anti-dumping measures were in force, compared with 177 on June 30, 2006. Since its last review in 2007, India has also imposed several safeguard measures, the report notes. On the positive side, India's average applied tariff rate declined to 12% in 2010-11, from 15.1% in 2006-07. Commenting on India's FDI policy, the report said that while the economy seems to be more open to FDI as a result of the recent policy changes, even where FDI is allowed up to 100% and under the automatic route, specific conditions or permits apply, which could in some cases be more restrictive than an explicit investment cap".

India being an agriculture oriented country, the performance of farming sector depends on the rains and it is true to say that the Monsoon rains decide the performance of the economy to a large extent. Recent examples regarding onion, sugar and wheat bring out this unenviable situation sharply. One cannot forget how the sky rocketing onion prices literally brought the government to a standstill and same situation repeated itself vis-a-vis sugar and wheat exports. In spite of large quantities of wheat rotting in the open due to the failure of the government to install adequate grain storage facilities in the past, GOI was afraid of exporting the surplus for fear of increase in domestic wheat price once export is cleared. Same is rue with sugar in spite of the fact India is the second largest producer of sugar after Brazil. While it is easy for WTO to "slam" GOI's flip flop policies which have a bearing on world food prices, there is no ready solution to the dilemma of GOI facing the proverbial Hobson's choice! One wonders whether this situation is unique to India or whether other agriculture products exporting countries also face similar difficulties during times of adverse natural conditions affecting the crop yields significantly. WTO ought to come up with a strategy to deal with such extra ordinary situations having bearing on global food prices.

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

FOOD TRUCK PHENOMENON-CAN IT WITHSTAND THE FATIGUE FACTOR?

Street foods always had their following in many countries and no matter what steps are taken to discourage people from patronizing these foods, many of them prepared and served under some what indifferent hygienic conditions, the phenomenon is here to stay. It is very difficult to understand the precise reasons why people flock around these mobile eateries though taste and economic factors must be playing a major role. World over the focus has shifted from uprooting these vendors to rehabilitate them through training and better infrastructure. Whether it is in Thailand or in India road side vending plays a crucial role in catering to mostly low income customers while the so called Food Truck business in the US is a recent development being patronized by those requiring fast service with minimum over head cost on their fare. In the last few years the Food Truck business has been growing at a phenomenal rate in the US and naturally the policy makers are in a fix to decide whether this is just a passing fancy or there will be continued growth of this sector in the coming years. Here is a take on this developing scenario.

"It finally dawned on me that the sole reason people repeatedly ask this question is because of the rapid growth of the food truck movement over the last two years. Does rapid growth necessitate a rapid and nearly instantaneous decline in growth? That's really what I think people are asking. It could be more simply stated as "When is this ending?" which, in my opinion, is totally natural as the mind wants to reconcile any new phenomena under some form of restrictive time classification. So, in order to dissect this question, I will attempt to answer a few questions on food trucks and fads in general. First, how long must something stay in popular demand before being considered a fad? My instinct tells me that in order for a thing to pass out of fad-dom, its ascent to the top must last significantly longer than its descent into oblivion. Was MySpace a fad? Silly Bandz? Whether or not Justin Timberlake can revive the social network to its former glory is to be seen, but that's another discussion altogether. Not to say both weren't wildly successful, but they both went away nearly as quickly as they came. Eventually, hype wears off and actual value of a good or service is measured against feasible alternatives. This is truly the core of the fad question, determining the actual value versus the perceived value (layered in by hype.) With food trucks, there is an actual need being fulfilled, the convenience of quality food at an affordable price. This is probably the easiest to identify as a primary reason for frequenting food trucks and carts. The long lines and the overextended hype for certain vendors may antagonize the fad argument, but new restaurants are not immune to the same treatment of popularity at launch. Good luck getting a reservation to the newest restaurant you just read about in The New York Times this Saturday night".

Doubts about the sustainability of food trucks have arisen because new developments always face the fatigue factor due to which consumers develop disinterest over a period of time or the new players take their customers for granted affecting the quality of service. Added to this the bureaucratic procedures and controls increasingly being applied for starting new joints may discourage new entrepreneurs from venturing into this area. There is also the pressure from the established catering industry for restricting expansion of food trucks because of apprehension regarding the economic impact on their traditional type of catering business. If rules and regulations that govern food truck business are tightened further and brought on par with regular catering industry, cost of the service is bound to go up significantly. However involvement of reputed Chefs in starting food truck business can still be an attractive factor that can pull in customers who like novelties in food preparations. The biggest advantage for food trucks is their mobility and use of IT enabled Tweeter service to keep the customers informed about their whereabouts.

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

LABELING UNDER "TRAFFIC LIGHT" SYSTEM-WILL IT BE EQUITABLE TO ALL?

The million dollar question that haunts the consumers and policy makers world over is whether the existing food labeling practices really serve the purpose for which it is intended and if not what further needs to be done. If the label declarations are meant to fulfill the "right to know" obligation by the processing industry, the present label declarations can be considered adequate and nothing more needs to be done. However the ever growing obesity epidemic that is being witnessed in may affluent countries casts a shadow regarding the "effectiveness" of communication between the consumer and the industry. Why do people continue to consume high calorie, high fat, high salt containing foods though their levels in the product are declared on front of the label in a legible manner? Could it be because many consumers, some illiterate and others inattentive, fail to understand the implications of consuming such foods? Probably the advocates promoting the graphic depiction mode to be included in the label have most of such consumers in mind and their case is that color coded safety signals may catch attention more easily than facts and figures conveyed at present. While the UK has promoted such a system, the EU did not want the same to be introduced in its member countries. Australia wants to include the traffic light system as a mandatory practice for food industry in the country though the industry is opposing it tooth and nail. Here is a report about the turmoil that is prevailing in that country on this issue.

"Food industry groups such as the Australian Food and Grocery Council and key players in the sugar industry oppose the traffic light system -- which imposes green, amber and red indicators based on fat, sugar and salt contents in food -- arguing that it could turn consumers away from some natural products such as milk, which contains fat and saturated fat, or fruit juice, which contains natural sugar. The Nationals' conference in Canberra at the weekend passed a resolution against the traffic light system after Queensland senator Ron Boswell produced examples that gave sultanas three green lights and a red light for sugar -- the same as for confectionery. The examples produced by the food and grocery council also show milk scores three amber lights -- for fat, saturated fat and sugar -- and a green light for salt. Coca-Cola scores green lights for fat, saturated fat and salt, and a red light for sugar. While sections of the food industry are opposed to the move, recommended in the January food labelling report by former federal health minister Neal Blewett, consumer group Choice and public health advocates are strongly in favour of it".

It is true that there are incongruities in the system which is based on the levels of sugar, fat, salt, fiber etc as being pointed out by its opponents and these are to be addressed before it can become universally acceptable. How can a soft drink like Coca Cola can get a green light while natural apple juice attracts the red color? If this system can be refined and some of these anomalies are rectified there is no reason why the traffic light system cannot work reasonably well to equip the consumer to make wise choices while going through the retail market isles. One may recall the red or green "dot" sign appearing in the food packets manufactured in India which has high relevance in a country like India where vegetarianism predominates and millions of Indians are grateful to the industry for introducing such a system enabling them to buy more processed foods with confidence. Same way traffic light system can also be a boon to many consumers if properly designed and practiced.

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

SYMBOL BASED LABELING-NEED FOR A NEW INITIATIVE

One of the critical questions that haunt the policy makers all over the world is whether the consumers are able to get the much needed information about the products they are buying from the market and this has led to mandatory front of the pack labeling in food products manufactured and marketed by the industry. When it comes to food labeling, it is supposed to educate the consumer regarding various critical parameters like weight, price, manufacturing date, expiry date, ingredient details, nutritional content and any other information relevant to the products in side the pack. There are two constraints that restrict the real utility of labeling, especially in developing countries. First most consumers are not literate, especially in English making the declaration irrelevant to them. Second the significance of nutritional content declaration is some what blurred by the relative ignorance about their connection to good health. It is here that symbol based labeling becomes helpful. Some countries have already introduced traffic light symbols to distinguish foods which are bad from the health angle from those considered health-friendly. It is felt that such symbol based labels are much more relevant in developing countries and this has been well articulated by the premier nutrition agency, National Institute of Nutrition (NIN) in India recently.

The National Institute of Nutrition (NIN) has proposed changes to labeling regulations for food packaging in India to one that is symbol-based, to ensure the majority of the Indian population understands the product nutrition information communicated. According to NIN scientist Dr G M Subba Rao, while food labelling regulations in India are on par with that of developed countries such as the US and UK, a recent study conducted by NIN with support from WHO-India has revealed that there is still a pattern of poor label comprehension amongst Indian consumers. One of the main reasons is the low level of literacy prevalent in India. However, even amongst the better-educated consumers, the problem of low label comprehension persists due to a lack of nutrition literacy – a problem also present in developed nations. Food labelling is essential in promoting healthy eating habits and increasing consumer nutrition knowledge in a country plagued by an increase in obesity and other related diseases, says Rao. "Food labelling should be considered an important approach to help consumers make healthy food choices by providing nutrition information on the pack," he explains. "We have therefore suggested emphasis be given to exploring and experimenting with symbol-based labelling on food packs so as to provide nutrition education to all sections of the society." Indian labelling regulations were last updated in 2007, when the government decreed that all processed foods have food labelling as part of a national programme promoting cardiovascular health.

If one goes by the experience of wealthy countries where such symbol based labeling is in vogue, consumer indifference to the nutritional value of foods in preference to taste and flavor is making the labeling transparency some what ineffective. How far traffic light system of labeling has helped the western population is still uncertain as it may take some time to assess its impact. Added to this uncertainty the food industry is not playing a fair game by not willingly adopting such progressive measures. It is true as one of the top industry captains said recently that consumers must decide what type of foods they want from the industry and it is the responsibility of the former to lead a healthy life by buying only good foods. But to do this consumer needs the help of the industry to tell which foods are healthy and which ones are unhealthy and symbol based labeling is nothing but a way of communication with the consumer.

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

IS THIS REALLY A MIRACLE SUBSTANCE?-THE PLANT ANTHOCYANINS

Even those consumers not well versed with food and nutrition know that colored fruits are best for their health if consumed in sufficient quantities every day as a part of a balanced diet. Scientists have known for quite some time that these colored fruits have the health protecting phytochemicals coming under the category of Anthocyanins which consist of over three hundred different and distinct chemical entities. These substances are often referred to as miracle chemicals capable of doing wonders in human body. The problem in translating the current knowledge for benefiting consumer health lies in delivering adequate quantities through daily diet as the concentration of Anthocyanins in fruits is not considered sufficient calling for high level of consumption which is not practical. Isolation of Anthocyanins is not difficult but preserving their effectiveness is handicapped by their vulnerability to decompose easily. Now comes the news that some researchers in the US have been able to make stabilized Anthocyanin concentrates that can be shelf stable for a period as long as an year. Litterarily making them into a nutraceutical ingredient for use by the food industry for enhancing the health credentials of a variety of processed food products, the innovation may spur further interest in exploiting such plant substances for the benefit of the humanity.

"From fighting cancer to fighting wrinkles, the uber-healthy compound that gives red and purple fruits and vegetables their brilliant color will hit store shelves within a year as a new ingredient in food products and cosmetics, a lead scientist at the N.C. Research Campus says. Dr. Mary Ann Lila announced Monday in Kannapolis that N.C. State University and Rutgers University scientists have figured out a way to extract and stabilize the natural substance, called anthocyanins, and sell it to food, healthcare and pharmaceutical companies. "The thing that's so exciting about anthocyanins is that they almost seem too good to be true," said Lila, director of N.C. State's Plants for Human Health Institute in Kannapolis. Anthocyanins provide a wide range of health benefits, from preventing chronic disease to improving the appearance of skin. For years, people have consumed cranberry juice to cure urinary tract infections, thanks to the anthocyanins in cranberries. Now, people who don't want the sugar in cranberry juice or don't like the tart taste instead can eat food containing the powdery, all-natural substance, Lila said".

How far this development will help the food industry is a matter of conjecture though the scientists concerned are upbeat about the prospects of their innovation becoming a major breakthrough for the growth of the well being food industry in the coming years. There is still some uncertainties regarding the bioefficacy of these preparations as no long term human trials have been performed to confirm the real impact on the health. Also to be kept in mind is the effect of artifacts that might be formed during the extraction process and the difficulty in getting products consistent in quality from batch to batch. Even if the products get the GRAS status eventually, the industry should not be allowed to make claims with out valid scientific evidence.

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

THE PAPER "TIGER" ROARS AGAIN-ANY ONE LISTENING?

India is a country which is better known for its profligacy in making laws with good intention. Unfortunately most of the laws are ineffectively enforced giving encouragement to the citizens to break them with impunity! Is this not making the citizens compulsive law breakers every day? One may recall that there was a big hue and cry regarding the pollution caused to the environment by indiscriminate use of plastics, especially the ultra thin "carry bags" used commonly by the consumers to cart their purchases to their home. After debating for years about imposing a ban on the manufacture and use of such thin bags, a law was promulgated to make it "illegal" to make and use bags from films less than 40 microns. But this law is rarely enforced and thin bags are still in use in many states. The latest law is regarding banning of chewing tobacco by the FSSAI because of its supposed harmful effect on human health. Why it has taken the "Authority" so many years to impose a ban, though the deleterious effect of tobacco was known for decades, is still a mystery. Here is a take on this "development"!

"Chewing tobacco, like gutka and paan masala, has been included among banned "food products" in the government's new food safety guidelines. The move has been welcomed by health activists. Coming close on the heels of a ban on the usage of plastic pouches to package chewing tobacco and pan masala, the Food Safety and Standards Authority of India (FSSAI) under the health ministry issued a notification prohibiting tobacco to be used as an ingredient in any food product. The food safety notification which was announced in early August says: "Product not to contain any substance which may be injurious to health. Tobacco and nicotine shall not be used as ingredients in any food product." Clearing the air about terming tobacco as a food product, V.N. Gaur, director of FSSAI, said that chewing tobacco, like gutka or pan masala, can be called food because it is consumed like any other food product".

If one carefully reads the interpretation, it is easy to infer that the ban only applies to foods that contain tobacco or nicotine and whether chewing tobacco products like paan masala can be considered a food is open to differing views. What is food needs a clear understanding and normally it is understood that only substances swallowed through the oral route can be considered a food. In this case only some chewing tobacco products are swallowed while others are spit out after some chewing. One has not yet heard the last word on this "hot" issue and the multi billion rupees chewing tobacco industry is unlikely to take any such ban lying down. If GOI does not ban cigarettes and other tobacco products knowing well that they are injurious to health because of the huge "income" contributed by this industry in the form of excise duty to the exchequer, with what face it can single out the chewing tobacco industry for a ban? A valid question indeed!

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

"OXIDATIVE STRESS"-COMBATING THE ILL EFFECTS

Though the issue of antioxidant benefits for human health is still being debated, there appears to be near unanimity that colored juices, most of which contain polyphenolic substances have health protecting abilities in one way or the other. Fruits and vegetables in general are healthy foods viewed from any angle and no wonder the new "food plate" icon replacing the earlier food pyramid concept includes these plant foods in the plate almost to the extent of 50%. While wholesome fruits and vegetables when consumed provides a variety of nutrients, the extracted juice is devoid of some of them including fiber. But extracted juices can still be rich in antioxidant phytochemicals with some of them having very high ORAC values. One of the recent studies using juices from some of the colorful fruits like Pomegranate has further confirmed this fact.

"Oxidative stress is known to contribute to the development and progression of atherosclerosis. Early signs of the disease include macrophage cholesterol accumulation and foam cell formation, which can result from increased uptake of oxidised low-density lipoprotein (LDL) and/or a reduced rate of high-density lipoprotein (HDL)-mediated cholesterol efflux from cells. Dietary polyphenols, such as those present in some beverages, exhibit potent antioxidant and cardioprotective activity. Studies have shown that consumption of grape juice, red wine, blackcurrant and pomegranate juice can increase serum antioxidant potential, exerthypolipidaemic and anti-inflammatory effects, inhibit LDL oxidation and decrease monocyte migration. Wonderful-variety pomegranate juice (WPJ) was also found to protect atherosclerotic patients from further development of the disease".

The moot question is about the availability and affordability of these juices to people with limited income as most of these fruits are priced beyond the reach of bulk of the population. It is most unfortunate that processed foods with high calorie density, high salt content are available in the market at a fraction of a cost of nutrient dense foods like fruits and vegetables, be it in India or any where in the world. In a country like India a substantial portion of the production is lost due to pre-harvest and post-harvest mismanagement and added to this the country wide operation of pre-harvest contractors and exploitative middle men make most horticulture produce over prized in the market.

Is it not a paradox that with a wide ranging climate conditions prevailing in the country, almost all fruits and vegetables can be grown in the country but these produce still cost high to the consumers and if this is not mismanagement, what else it is? It is time India is transformed into a "doing country" from its present image as a "talking country"!

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