THE "OILY" MESS-THE CONTINUING SAGA OF INDIAN CONSUMER

Edible oil has always been the "Achilles Heel" of the Government of India while the pulses situation borders on a trauma! No matter who rules the country the edible oils and pulses have always been the "playing field" for hoarders, industry, traders and importers to make money at the expense of the citizen. Except playing lip sympathy Government has proved its impotence in addressing the problem of shortage with the oil mafia holding the consumer to ransom year after year. Whether oil is an essential commodity required ad libitum for the health of the consumer is a bigger question that was never answered, considering it is one of the root causes of obesity and other food related diseases. If the per capita availability of edible oils in the country is taken into consideration it meets the average nutritional need of a person but averages never tell the real story with consumption invariably being lop sided. A report that the vegetable oil imports have registered a quantum jump recently is alarming though the reasons for this undesirable development may be many. Here is a gist of the above report which deserves serious attention by all concerned to think about the way India can get out of this perennial trap.

"A sustained slowdown in domestic oilseed crushing activity has led to an increase in the import of vegetable (veg) oil in recent months. Consequently, overall import of veg oil shot up 73 per cent in the second quarter of the current oil year (November 2011–October 2012) as against 31 per cent growth in the first quarter, to meet a deficit created by lower production from domestic sources. Data compiled by the Solvent Extractors' Association (SEA) showed overall veg oil import rose 95 per cent to 897,404 tonnes in April alone, compared with 475,123 tonnes in the corresponding month of the previous year. During the last quarter of the current oil year, import surged to 2.52 million tonnes (mt) compared to 1.46 mt in the same period last year. With a marginal decline in the first quarter, owing mainly to increased availability from domestic sources on intensified local crushing, the overall import of veg oil recorded a 31 per cent increase at 4.71 mt, against 3.6 mt in the comparable period last year".

Is there a serious flaw in the planning of agriculture in this country and if so who is responsible for it? Can all those who ruled in the past and present can be absolved of the responsibility in bringing the country to such a sorry pass? Excuses are galore when it comes to enforcing accountability but such excuses need to be brushed away mercilessly to punish those guilty. What type of planning is done by the much touted National Planning Commission during the last 5 decades? It is simply common senses to understand that the production problems of oil seeds and pulses are closely linked to the agricultural policy and the governments do not seem to have the required determination to evolve a long term policy for the agriculture. After all farmers will produce only those crops that will give maximum returns to his labor. Look at the sugarcane policy which ensures high returns in the range of Rs 50,000  per acre and if the land is suitable or water is available 365 days as in areas near Mandya District in Karnataka, farmers cannot be forced to switch over to other crops. It is for the government to persuade the farmers to grow certain crops as a part of the national policy through various fiscal incentives. Unless this is done India will remain a massive importer of oils and pulses eternally.

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

SMALL IS BEAUTIFUL-HOW ABOUT COMPETITION?

Most small scale and home based food industries fail when it comes to marketing their products and facing the heat of competition from the organized brands is their "Achilles heel". But in a small town in the US the micro enterprise operating entrepreneurs have found a way to compete with national brands through their products with some USPs, most important one being their local credentials. Though their prices are higher because of their disadvantage vis-a-vis "economy of scale", this handicap is more than made up with quality and uniqueness of the products made by them. In stead of placing their products in national super market chains, they largely sell through local and regional retailing outlets. Here is a take on this interesting phenomenon.

"Country Day products are among more than a dozen locally manufactured foods found in many area grocery stores. Small, independent local producers compete with the behemoths of the grocery aisle such as Kraft, Tyson, ConAgra and Smithfield. "What gives them their edge is their quality and their uniqueness," said Joe Fasula, co-owner of Gerrity's Supermarket, which has nine regional stores. "It comes down to setting yourself apart. You have to compete on price or some intangible quality about yourself. These guys hold their own."

Probably there is a lesson to be learned from the above example for thousands of micro enterprises in other parts of the world and that is not to depend on large retail chains but use smaller stores for selling their products. Of course there still could be problems regarding credibility of their products for which sustained efforts need to be taken to instill confidence in the local population. Quality will ultimately sell and combined with assured safety products from small local enterprises can out sell even the best brand in the local market. 

V.H.POTTY

http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

THE MOTHER OF ALL STATISTICS!-AN INSIGHT INTO US FOOD SECTOR

Reliable data can only be the basis for any future planning and this is the Achille's Heel with most developing countries. Take for instance the situation in India where critical data and information are neither available nor accessible easily even if they exist. Such an environment is ideally suited for many consultants to proliferate and spin money in the name of "Reports". It is doubtful if these reports are worth the paper on which they are written. While there are a few multinational consultants who thrive in the country mainly on government grants for making such reports, there are also agencies, often managed by retired bureaucrats and others making money at the expense of the tax payer of this country. Contrast this with the fantastic range of statistics available freely on different facets of trade and industry, society, environment, economic status etc at both macro and micro levels in many developed countries. Here is a sample from the US.

"Among the relevant data in the report:

• "Individuals age 15 and over in the United States spent, on average, 1.22 hours per day engaged in eating and drinking activities."

• "Also in 2009, the average household in the United States spent $6,372 on food – which includes money spent on food at home and money spent on food away from home."

• 41 percent of that total was spent on food away from home.

• More than 2 million workers – 1.5 percent of civilian workers in the United States – are employed as cooks.

• 75 percent of those cooks are employed in eating and drinking establishments; 25 percent work in places including hospitals, schools and nursing homes.

• Fast food cooks earn the least nationwide, at an average hourly wage of $8.97; institutional cooks earn the most, at $12.44.

• Cooks in Honolulu earn the most, on average, at $14.72 per hour; cooks in the Morganton, N.C., area earn the least, at $7.49 per hour.

• Cooks in the Puget Sound area earn an average of $11.05 per hour, while bartenders earn $9.27 and wait staff earn $8.59".

Most despicable reality is that even on crucial area of food adulteration and food poisoning there is no worth while information in India conveying the impression that Indian consumers are "happy" with the safety of foods provided to them by the manufacturers, traders, retailers and caterers! Many activist organizations have brought out the fact that India is a major haven for food adulterators and fraudsters with a benign food safety "Authority" unable to do any thing due to the bureaucratic nature of the agency and grossly understaffed technical facilities and infrastructure. The country also does not have a clue regarding the need for trained food technologists and technicians, required by the industry as well as the service sector. It was amusing to read about a recent report from Kerala where there appears to be a dearth of skilled artisans in preparing Latcha Parotha, a favorite wheat preparation of the population there and the restaurants trying to woo experienced "cooks" by offering Rs 10000 per month! Indians have no idea about the diversity of eating habits amongst them selves because there are no reliable data generated based on field level surveys. Unless reliable and extensive macro and micro data are generated the country's planning will always be faulty and behind the time.

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