WASTAGE OF FOODS IN INDIA-THE NEVER ENDING "SAGA"!

Way back in early nineteen sixties, practically every food scientists in India were chanting the now familiar "mantra" that 35% of the country's food was being wasted and urgent measures were required to stop this enormous waste which would only assure food security. After billions of rupees spent on food conservation research during the last 50 years and successfully managing the Green Revolution that ensured plentiful supplies of food grains, is it not a quirk of irony that same "waste mantra" is still repeated ad naseum to day by the Minister for Food Processing Industry at the Center, who might not have been even borne at that time? There is no dearth of conservation technology in the country to prevent the waste and scientific design of grain storage structures is within the reach of the government, if it really desires to arrest the grain wastage. Unfortunately what is lacking is the political will and dynamism on the part of the government that obstructs a long term vision.

While scientists can be excused for raising the wastage bogey to justify their research programs and funding, it is a shame on the part of the government to continue to take this stand, without even carrying out a scientific study on extent of food wastage in the country, areas where such wastage occurs and the reasons for the same. But for the occasional expose by the media now and then, especially during rainy season, no one seems to be over concerned about the waste, if it really takes place. The "Save Grain Campaign" of the Food Ministry had spent millions of rupees in making farmers aware of the simple techniques of storage and conservation, especially in rural areas and it is doubt full whether there is really any waste of grains in the country side.

Then who is wasting them? Could it be Food Corporation of India and the State Ware Housing Corporations which procure grains, store them and supply to thousands of Ration Shops across the country? According to FCI annual report filed before Lok Sabha, wastage is placed at about 1% which could work out to less than a million ton. Recent Supreme Court intervention ordering GOI to distribute food grains being held by the agencies under it free of cost to poor hungry people does not speak well for a country like India with aspirations to become a super economic power one day. While pronouncing the order probably the learned judges do not seem to have been correctly informed about the "grain dynamics" and the concept of food security through buffer stocks. Food grains are vulnerable to infestation if not properly stored and fumigated with chemicals like Phosphine or Methyl Bromide. High moisture in the grains due to improper drying after harvest can attract fungal attack but it rarely happens unless unseasonal rains are encountered

According to the Minister "the level of wastage of agricultural food items is estimated to be 30-35% valued at about Rs. 30,000/- crores in the country, occurring at various stages of handling after harvesting due to fragmented farming, lack of adequate post-harvest infrastructure such as lack of cold storages / cold chain facilities, transportation, proper storage facilities etc". The pious and vague statement that "the wastage would be reduced by promoting the development of food processing, strengthening of post harvest infrastructure and filling the gaps in the supply chain" does not mean much except that the Minister has mastered the right vocabulary to impress his audience! The citizen in the country must have been sick hearing this statement because this has been the stand of GOI for the last 5 decades!

One difference this time that may be a source of hope for the Indian citizen is the fiscal provision in this year's budget for improving the cold storage infrastructure which is more relevant to handling of horticultural produce which is vulnerable to spoilage due to their high degree of perishability. If the cold storage and frozen food distribution facilities are strengthened spoilage of fruits and vegetables can be reduced significantly and if these schemes are implemented as promised, credit must be go to the government. But there is big "if" whether these grandiose plans materialize any time in the near future.

V.H.POTTY

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http://foodtechupdates.blogspot.com

RETAIL BUSINESS-POLICY UNCERTAINTIES

The debate about allowing foreign investments in the retail business does not seem to be subsiding though two governments have come and gone since beginning of this decade. While Vajpayee government could not take a decision to allow 100% foreign investments, partial opening of this sector was achieved when cash and carry model investment was allowed for whole sale merchandising. The first UPA government was hamstrung by its vulnerability to pressure by the Left which was totally opposed to organized retailing under the excuse that small business enterprises and family stores would suffer, unable to face the marketing muscle of global retail giants. With new UPA government with a clear mandate, now at the helm of affairs at Delhi, sans the Left, expectations were high that India would open up its retail sector to foreign players soon. How ever the first sign of the low priority for this area came when there was no mention about it in the address to the Parliament by the President and the Government has no intention, at least for the time being, to open up this sector was confirmed by the concerned minister a few days ago.

The ostensible reason for delaying a decision seems to be the stand taken by some experts that their is real danger of large scale unemployment when big muscled retailing giants take over the market, pushing out the 8 million and odd small retailers in the unorganized sector into oblivion. Same argument in the past delayed modernization of food industry in sixties and seventies of the last millennium and setting up of large scale processing units by organized players in food sub-sectors like rice milling, flour milling, oil refining, snack foods, fruit and vegetable processing, meat processing, poultry processing, spice processing, soft drinks etc during the last two decades did not contribute to any significant unemployment. Besides there are big Indian investors equal to foreign companies in terms of resources who are not barred from entering the retail sector by the present policy. The institution of family stores that dots this country cannot be easily brushed away by a few international companies and even if they are affected to any significant extent, it is going to be a slow process spanning many years ahead. The fact that even after the entry of big Indian investors into retailing more than a decade ago, the share of organized retail business has not gone beyond 5% at present is a telling commentary on the strength of indigenous unorganized retailers of this country.

Recent announcement by IKEA, the $ 31 billion, Swedish home products giant putting on hold their plans to open up 25 retail show rooms with an investment of $ 1 billion is a set back to the aspirations of the Indian consumers to enjoy the high quality, innovative, easy to assemble and long lasting home products which happen to be the strength of this company. IKEA, world wide, sells 12000 products through its 296 retail show rooms and is a pioneer in the flat pack furnitures and accessories, bathroom and kitchen items of high quality with novel features. It is beyond any body's comprehension as to how IKEA out lets are going to harm local products because there are no similar products in the Indian market made locally! The high end expertise of IKEA would have helped to horn the skill of Indian workers who are not exposed to quality products in their life. IKEA is already out sourcing from India products worth Rs 1900 crore an year for selling in more than three dozen countries under their brand and this would have expanded several fold if they were allowed to do business in the country. Presently it employs about one lakh people in India for its sourcing operations.

It is really unfortunate that retail business continues to be kept out of the purview of foreign companies who could have brought considerable expertise into the dynamics of organizing and successfully running large scale procurement and distribution of consumer goods. The recent ranking of India as the top desired investment destination for retail business, outscoring Vietnam, Hongkong and others is a wonderful opportunity for India to entice investors with policies that would be equitable to all the stake holders. GOI must provide a level playing field in the retail business and in the interests of the consumers as well as the skilled workers of the country, this area must be open to all investors irrespective of their nationality. One of the tragedies of Indian retailers is that they do not know how to respect the consumers and understand their aspirations. Sooner we have exposure to international retailing culture, better it will be for the country in the long run.

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