Market

Market
Showing posts with label fraud. Show all posts
Showing posts with label fraud. Show all posts

Saturday, March 12, 2011

THE SAFFRON "FRAUD"-A GLOBAL PHENOMENON?

Saffron is considered the costliest amongst spices commanding as much as Rs 50000 a kilogram in the international market and highest quality saffron is supposed to be produced in Spain. One can imagine the extent of money that can be made even if there is a 1% adulteration of this spice with extraneous matters! But it is nothing but scandalous to hear about 50-90% adulteration of saffron that is reported to be taking place, the fraud estimated at millions of dollars globally. Poor consumers have no way to know how bad the saffron being bought from the market in good faith as there are no quick tests to determine purity. Here is a take on saffron fraud reported from Europe.

"Food officials have begun an investigation into claims that "red gold" is routinely adulterated with other, worthless parts of the crocus flower in a scam that is defrauding thousands of gourmands. The Food Standards Agency (FSA) has asked its counterparts in Spain to test the saffron being exported from that country after being tipped off that supposedly "pure and genuine" saffron on sale in the UK is of poor quality, and fails to supply the usual colour and aroma. An amateur cook in Britain prompted the investigation by using his own money to buy large quantities of saffron to be tested at labs owned by the Ministry of Industry, Tourism and Commerce in Spain, one of the largest exporters. His findings prompted the FSA to intervene. Saffron should be painstakingly harvested from the stigma of crocus sativus linnaeus, some 85,000 of which are needed to produce a single kilogram. Under international standards, the finest saffron – which sells for £6 a gram, £6,000 a kilo – should have only 0.5 per cent of "floral waste" and 0.1 per cent "extraneous matter". But the results on 10 brands purchased and sent for analysis, passed on by the amateur cook to The Independent, suggest that the use of other parts of the crocus range from between 40 per cent and 90 per cent. In other words, some "top-quality" saffron allegedly contains as little as 10 per cent of actual saffron".

One may recall the big saffron fraud that was going on in the sacred temple of Tirupati some years ago when it was discovered that even government approved samples were grossly adulterated with materials of non-saffron origin and saffron is an integral ingredient in the famous laddus sold as prasad to the unsuspecting devotees. One does not know whether such practices are still continuing though there is practical difficulty in getting 100% pure saffron, especially in a country like India which a "paradise" for food adulterators. It may not be any consolation for Indian consumers to know that saffron adulteration is a "universal" phenomenon! Probably the standards and prices of saffron should be linked based on purity, similar to milk which is priced depending on the fat and solids contents.

V.H.POTTY

Tuesday, June 15, 2010

HIGH TECH "DECEPTION"-NEED FOR INCREASED VIGILANCE


The statement that"deception, thy name is food industry" is becoming increasingly apt to describe some of the actions of a few major players in this sector continuously striving to mislead consumers regarding the true strength of their products. It is true that labeling provisions are becoming more and more stringent in many countries to preempt such attempts and give the consumer a modicum of confidence regarding the quality and safety of marketed foods offered to them by the retailers. But high stakes involved in making money through devious means are temptations enough for engaging high paying consultants to find loopholes in the law so that rules can be circumvented. Here is an example of a multinational food player blatantly exploiting the vulnerability of the consumer to claims on good health and well being

"The Federal Trade Commission barred Kellogg's last year from running ads saying Mini-Wheats are "clinically shown to improve kids' attentiveness by 20 percent." To claim "benefits to cognitive health, process or function provided by any cereal or any morning food or snack food," was a no-no, unless the claims were true. But the F.T.C.'s order covered only cognitive abilities. So just as it was signing its consent, Kellogg's was starting a new campaign in which "Snap, Crackle and Pop" called out to parents from the Rice Krispies box promising to help "support your child's IMMUNITY."

What is so galling is that a giant like Kellog's receives only a notice and a negotiated settlement is reached with the concerned authorities! A spurious claim like the one made by this company should have attracted severest strictures and massive punitive steps. Probably the common perception of many consumers that high and mighty amongst the processors "can get away even with murder" seems to be true. Otherwise it is difficult to understand the impunity with which the same company is scheming to repeat the same offense in other products even before the ink has dried in the negotiated agreement!
V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

Sunday, November 8, 2009

SUGAR 'FRAUD' IN EUROPE-MILKING THE SUBSIDY SYSTEM!

Developing countries are often blamed for high corruption supposed to be widely prevalent in practically every sphere of human activity. Compared to the economic frauds committed by large players with strong financial and political clout in some of the richest countries in the world, corruption in third world countries pales into insignificance. Latest skeletons to emerge from the"cup boards" of these countries is the gigantic sugar scam running into millions of dollars, thanks to the much despised agricultural subsidy program that is put in place in many of the super rich countries of the West.

"In the sprawling European subsidy program — which lavishes more than 50 billion euros ($75 billion at current exchange rates) a year in agricultural aid — no commodity is more susceptible to fraud, chicanery and rule-bending, experts say, than simple household sugar. Across Europe there are some 2.5 million acres of beet fields that will produce 16.7 million metric tons of sugar this year for an industry worth 7 billion euros. Last year the European Union spent 475 million euros in price supports for sugar, including export subsidies. Then it spent another 1.3 billion euros on restructuring aid to reform a subsidy regime so that lavish it even prompted cold-weather Finland to start producing more sugar". Unfortunately the subsidized sugar, intended for consumption within the EU, finds its way to destinations out side the region distorting global sugar prices due to ineffective control of sugar movement across the continent..

The ingenious way to milk the subsidy system by the organized industry goes to show the extent to which man can stoop down to make an extra buck! Who is the real beneficiary in this charade is not clear but sugar producing nations like Brazil, India and others must watch out to country act such misdemeanors in order to protect their own sugar industry.

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