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GS Paper: GS3-10.Food processing and related industries in India-scope’ and significance, location, upstream and downstream requirements, supply chain management

  • What is Shrinkflation?

    Why in the news?

    • As input prices turn inflationary, the FMCG (Fast-Moving Consumer Goods) segment faces the spectre of shrinking packs, impacting consumer choices and industry dynamics.

    What are FMCGs?

    • Fast-moving consumer goods, also known as consumer packaged goods, are products that are sold quickly and at a relatively low cost.
    • Examples include non-durable household goods such as packaged foods, beverages, toiletries, candies, cosmetics, over-the-counter drugs, dry goods, and other consumables.

    What is Shrinkflation?

    • Shrinkflation is a business practice where companies reduce the size or quantity of a product while keeping its price the same.

    Causes for Shrinkflation:

    1. Cost Management: It helps companies manage rising production costs, such as raw materials or labor, without sacrificing profitability.
    2. Market Competition: In competitive markets, companies may use shrinkflation to maintain their market share by keeping their prices competitive.

    Effects of Shrinkflation:

    • Consumer Perception: If consumers notice the change, it can lead to negative perceptions of the brand, loss of trust, and reduced customer loyalty.
    • Accuracy of Inflation Measurement: Shrinkflation complicates accurate measures of inflation since the price remains constant while the quantity decreases.
    • Limitations: Companies can only implement shrinkflation discreetly and for a limited number of times before consumers become aware and react negatively. Overuse can damage brand reputation.

    PYQ:

    [2015] With reference to inflation in India, which of the following statements is correct?

    (a) Controlling the inflation in India is the responsibility of the Government of India only

    (b) The Reserve Bank of India has no role in controlling the inflation

    (c) Decreased money circulation helps in controlling the inflation

    (d) Increased money circulation helps in controlling the inflation

  • Pioneering Collaboration for Lab-Grown Fish

    Introduction 

    • ICAR-Central Marine Fisheries Research Institute (CMFRI), headquartered in Kochi, collaborated with Neat Meatt Biotech, a private-sector start-up specializing in lab-grown meat technology.
    • This Memorandum of Understanding (MoU) marks the first initiative of its kind in India.

    Understanding Lab-Grown Fish

    • Lab-Grown Fish Definition: Lab-grown fish, a type of cultivated or cultured meat, is seafood produced in a laboratory setting without the need to raise and slaughter animals.
    • Production Process: Specific fish cells are isolated and grown in a controlled laboratory environment using animal-free media. The goal is to replicate the taste, texture, and nutritional qualities of traditional fish meat.

    Roles of CMFRI and Neat Meatt

    • CMFRI’s Responsibilities: Under the MoU, CMFRI will focus on genetic, biochemical, and analytical aspects of the project. Its cell culture lab will research early cell line development for high-value marine fish species, including pomfret, kingfish, and seerfish.
    • Neat Meatt’s Expertise: Neat Meatt, with expertise in cell culture technology, will lead in optimizing cell growth media, developing scaffolds or microcarriers for cell attachment, and scaling up production via bioreactors. The company will also provide consumables, manpower, and additional equipment.

    Addressing the Need for Lab-Grown Fish

    • Growing Demand: The demand for seafood is increasing, creating pressure on wild resources.
    • Overfishing Consequences: Overfishing has led to population declines in certain species and negatively impacted marine ecosystems.
    • Environmental Benefits: Lab-grown fish meat can reduce the reliance on traditional fishing, offering antibiotic-free, contamination-free, and pollution-free alternatives.

    Global Pioneers in Lab-Grown Fish

    • Leading Nations: Several countries are advancing lab-grown fish technology. Israel is a frontrunner, followed by Singapore, the United States, and China.
    • Recent Developments: Israel-based Forsea Foods successfully produced lab-grown freshwater eel meat. Israel’s Steakholder Foods, in collaboration with Umami Meats in Singapore, 3D printed the first-ever ready-to-cook fish fillet from laboratory-grown animal cells.

    Bridging India’s Gap

    • Accelerating Development: The CMFRI-Neat Meatt partnership aims to expedite India’s progress in lab-grown seafood to ensure it doesn’t lag behind countries like Singapore, Israel, and the USA.
    • Leveraging Expertise: CMFRI’s marine research and Neat Meatt’s technological prowess form a collaboration that promises a sustainable future for seafood production in India.
    • Timeline Expectation: Dr. Sandeep Sharma of Neat Meatt anticipates establishing the project’s proof of concept within a few months.

    Expanding Lab-Grown Meat

    • Wide Range: Beyond fish, lab-grown meat development encompasses chicken, pork, lamb, beef, and more.
    • Global Industry Growth: The lab-grown meat industry has expanded to over 150 companies across six continents, with $2.6 billion in investments.
    • US Regulatory Clearance: In June 2023, the US Department of Agriculture approved the sale of lab-grown chicken meat, allowing companies like Good Meat and Upside Foods to supply it to restaurants and supermarkets.

  • Tax ‘HFSS’ foods, view it as a public health imperative

    LocalCircles Survey: 79% citizens in favour of tax on high fat, sugar and salty (HFSS) foods

    Central idea 

    The article advocates for the immediate implementation of High Fat Sugar Salt (HFSS) taxes in India to tackle health risks, emphasizing their role in encouraging healthier choices, driving industry reformulation, and reducing the economic strain on healthcare. It positions HFSS taxation as a vital public health imperative to address market failures and promote a sustainable food system.

    Key Highlights:

    • Rising Health Risks: High Fat Sugar Salt (HFSS) foods contribute significantly to health issues like obesity, diabetes, and high blood pressure. The global burden of Non-Communicable Diseases (NCDs) in India has surged from 38% in 1990 to 65% in 2019, with 1.2 million deaths annually attributed to dietary risks.
    • Economic Impact: Overweight and obesity’s economic impact in India was estimated at $23 billion in 2017, expected to rise to $480 billion by 2060. The ultra-processed food sector in India grew at a compounded annual growth rate of 13.4% between 2011 and 2021.
    • Global Trend of Taxation: Many countries, including Denmark, France, Hungary, Mexico, South Africa, the UK, and the US, have implemented taxes on HFSS foods to combat obesity. Colombia’s recent “junk food law” serves as a model for other nations.
    • Market Failures and Externalities: The consumption of HFSS foods leads to negative externalities in the form of increased healthcare expenditures, imposing societal costs. Taxes are proposed as a targeted tool to curb detrimental consumption habits, reducing societal burdens.
    • Need for HFSS Tax: The article argues for taxing HFSS due to market failures, negative externalities, and internalities. Unlike sin goods, HFSS taxation aims to incentivize the industry to reformulate products for healthier alternatives and prompt consumers to choose a healthier diet.
    • Designing Effective HFSS Tax: Properly designed HFSS taxes can be non-regressive and fiscally neutral. Differentiated tax rates based on nutritional quality can incentivize product reformulations. The goal is to make healthier alternatives more affordable and accessible.
    • Inconsistencies in GST Rates: Current GST rates on ultra-processed foods do not align with nutritional content. Uniform tax rates overlook variations in sugar, salt, and nutritional impact, limiting their impact on altering consumption patterns.
    • Public Health Imperative: HFSS taxation is positioned not just as an economic or fiscal policy concern but as a public health imperative. Effective taxes, combined with nutrition literacy and food labeling, can combat overweight and obesity, fostering a more sustainable and equitable food system.

    Key Challenges:

    • Resistance from Industry: The food industry may resist HFSS taxes, viewing them as detrimental to profits. Balancing industry interests with public health objectives poses a challenge.
    • Designing Optimal Tax Rates: Determining the right tax rates that effectively deter HFSS consumption without being regressive requires careful consideration and analysis.
    • Consumer Awareness: Ensuring that consumers are aware of the health implications of HFSS foods and understand the purpose of taxes is crucial for the success of such interventions.

    Key Terms/Phrases:

    • HFSS Foods: High Fat Sugar Salt foods, known for their negative impact on health.
    • Negative Externalities: Detrimental effects of HFSS consumption on society, leading to increased healthcare costs.
    • Internalities: Harm caused to individuals due to limited understanding influenced by marketing.
    • Market Failures: Situations where the market does not efficiently allocate resources, leading to suboptimal outcomes.
    • Non-regressive Tax: A tax that does not disproportionately burden lower-income individuals.
    • Nutritional Quality: The nutritional content and health impact of food products.

    Key Quotes:

    • “HFSS taxation in India should not be merely seen as an economic or fiscal policy concern but it deserves to be considered a public health imperative.”
    • “Effectively designed taxes can reap multiple benefits — they can act as a deterrent to consuming HFSS; promote healthier food choices; prompt manufacturers to reformulate foods; improve public health outcomes…”

    Key Statements:

    • “The imperative for taxing HFSS arises from significant market failures associated with their consumption, contributing to negative externalities and internalities.”
    • “HFSS taxation in India should be both non-regressive and fiscally neutral, creating a level-playing field between HFSS and their healthier alternatives.”

    Critical Analysis:

    The article provides a comprehensive overview of the health and economic challenges associated with HFSS consumption in India. It effectively argues for the implementation of HFSS taxes as a public health imperative and highlights the need for well-designed, non-regressive tax policies. The emphasis on creating a fiscal environment that incentivizes healthier choices and product reformulation adds depth to the analysis.

    Way Forward:

    • Collaborative Approach: Engage stakeholders, including the food industry, health professionals, and policymakers, to collaboratively design and implement effective HFSS tax policies.
    • Continuous Evaluation: Regularly assess the impact of HFSS taxes on consumption patterns, health outcomes, and industry practices, making adjustments as needed.
    • Public Awareness Campaigns: Launch campaigns to educate the public about the health risks associated with HFSS foods and the purpose of taxation, fostering informed choices.
    • International Best Practices: Learn from and adapt successful strategies from countries that have effectively implemented HFSS taxes to address obesity and improve public health.
    • Research and Innovation: Encourage research on the nutritional content of food products and innovative ways to reformulate HFSS items for healthier alternatives.

  • Hidden Costs of Agri-Food Systems  

    Central Idea

    • A recent United Nations Food and Agriculture Organization (FAO) report highlights the enormous hidden costs of global agri-food systems, totalling over $10 trillion.
    • In countries like India, these costs, amounting to nearly 11% of GDP, manifest in various forms such as increased poverty, environmental damage, and health issues.
    • The report suggests a transformation of agri-food systems, advocating for multi-cropping systems as a solution to enhance farmer well-being, community nutrition, and ecological health.

    About Agri-Food Systems 

    • “Agri-food systems” refer to the complex network of activities, processes, and actors involved in the production, processing, distribution, and consumption of food.
    • This system encompasses everything from agricultural production (farming) to the final food products consumed by individuals.

    Intensive Agriculture: Impacts and Trends

    • Green Revolution Legacy: India’s agricultural productivity boost over the past five decades has largely been due to mono-cropping and chemical-intensive farming, particularly in paddy and wheat cultivation.
    • Nutritional and Ecological Consequences: This shift has led to a decline in crop diversity, impacting household nutrition and causing ecological issues like groundwater depletion.
    • Economic Viability: The privatization of agricultural inputs has increased farmer indebtedness, making agriculture increasingly unviable in India.

    Crop Favoritism and Food Security Concerns

    • Public Distribution System (PDS): The National Food Security Act 2013 ensures food security for a significant portion of the Indian population, but the procurement policy heavily favours rice and wheat.
    • Decline in Coarse Grains: The focus on rice and wheat has led to a reduction in the cultivation of nutritionally rich coarse grains.
    • Water-Intensive Crops: Policies have also encouraged the cultivation of water-intensive cash crops like sugarcane, impacting biodiversity and water resources.
    • Impact of Global Trade: International market fluctuations and trade relations have historically influenced food production systems in countries like India, affecting local agricultural practices and crop choices.

    Promise of Crop Diversification

    • Agroecology Principles: Multi-cropping systems, rooted in agroecology, can revitalize land and soil health while providing diverse crop yields.
    • Ecosystem Services: These systems offer multiple benefits, including cash provision, food production, and ecosystem services like nitrogen fixation and biodiversity support.
    • Nutritional and Environmental Benefits: Diversified farming can improve soil health and provide a more nutritious food basket, addressing the hidden costs of current agricultural practices.

    Challenges and Transition Strategies

    • Gradual Transition: A systematic shift from mono-cultivation to diversified farming is necessary, involving stages like non-pesticide management and natural farming practices.
    • Economic Modelling: Preliminary economic models suggest that diversified farming can sustain farm incomes and improve ecological outcomes in both the short and long term.
    • Addressing Transition Challenges: Overcoming hurdles related to local seeds, market access, labor requirements, and institutional support is crucial for a successful transition.

    Conclusion

    • The FAO report underscores the urgent need to transform agri-food systems to address their hidden costs.
    • Multi-cropping systems offer a viable path forward, promising to enhance ecological health, farmer well-being, and community nutrition.
    • However, this transition requires concerted efforts from various stakeholders, including institutions, policymakers, and farmers, to create economic incentives and support mechanisms for adopting sustainable agricultural practices.

  • Decline in Food Safety Standards across India: A Closer Look

    food safety

    Central Idea

    • Four years after the Food Safety and Standards Authority of India (FSSAI) introduced a state-wise index to encourage improvements in food safety, alarming trends have emerged.
    • A significant number of large Indian states have witnessed a drop in their food safety scores in 2023 compared to 2019.
    • This analysis delves into the details of these findings, highlighting the key parameters, their weights, and how the states fared.

    Understanding the State Food Safety Index (SFSI)

    • FSSAI has developed the State Food Safety Index to measure the performance of states on various parameters of Food Safety.
    • It was first rolled in 2018-19.
    • This index is based on the performance of the State/ UT on five significant parameters set by the Health Ministry, namely
    1. Human Resources and Institutional Data
    2. Compliance
    3. Food Testing – Infrastructure and Surveillance
    4. Training & Capacity Building and
    5. Consumer Empowerment
    • In 2023, a new parameter, ‘Improvement in SFSI Rank,’ was added, altering the weightages of existing parameters to maintain a total score of 100.
    • The Index is a dynamic quantitative and qualitative benchmarking model that provides an objective framework for evaluating food safety across all States/UTs.

    Highlights of the 2023 Report

    [A] Steepest Decline in Scores:

    • Maharashtra: Witnessed the most significant drop, with a score of 45 in 2023 compared to 74 in 2019.
    • Bihar: Scored 20.5 in 2023, down from 46 in 2019.
    • Gujarat: Recorded a score of 48.5 in 2023, a sharp decline from 73 in 2019.

    [B] Key Parameter Findings:

    • Food Testing Infrastructure: Witnessed the most substantial decline, with the average score dropping to 7 out of 17 in 2023 from 13 out of 20 in 2019.
    • Compliance: Received the highest weightage in 2023 but experienced a drop in scores for states like Jharkhand, Punjab, Himachal Pradesh, Madhya Pradesh, and Bihar.
    • Consumer Empowerment: Scored the highest in Tamil Nadu, while Bihar saw a significant decrease in this parameter.
    • Human Resources and Institutional Data: Experienced a decline in scores for states like Tamil Nadu and Uttar Pradesh.
    • Training and Capacity Building: Recorded an improvement, with the average score increasing to 5 out of 8 in 2023 from 3.5 out of 10 in 2019.

  • Will QR Codes improve access to Food Labels?

    qr code food

    Central Idea

    • The Food Safety and Standards Authority of India (FSSAI) has recommended the incorporation of QR codes on food products, a significant step toward ensuring food safety and accessibility, especially for visually impaired individuals.
    • This move holds paramount importance in a country with one of the world’s largest markets for packaged foods and a rising burden of non-communicable diseases (NCDs), largely driven by the consumption of pre-packaged foods.

    QR Code move by FSSAI

    • Comprehensive Data: QR codes will contain extensive product information, including ingredients, nutritional facts, allergens, manufacturing date, best before/expiry/use-by date, allergen warnings, and customer contact information.
    • Compliance: This initiative aligns with the FSSAI’s Food Safety and Standards (Labelling and Display) Regulations, 2020, and the Rights of Persons with Disabilities Act, 2016, emphasizing accessibility for individuals with disabilities.

    QR Code Origins

    • Invention: QR codes, two-dimensional matrix barcodes, was invented in 1994 by the Japanese company Denso Wave for labelling automobile parts.
    • Enhancing Brand Image: For food manufacturers, QR codes offer advantages such as improving brand image, fostering customer loyalty, and enhancing operational efficiency.

    Significance of the Initiative

    • India’s Market Dynamics: India’s burgeoning market for packaged foods, coupled with a surge in NCDs, underscores the need for informed consumer choices.
    • Consumer Rights: The initiative empowers consumers to make informed decisions and verify if the product aligns with its advertised attributes.
    • Front-of-Pack Labelling: The FSSAI is urged to combine QR codes for visually impaired individuals with front-of-pack labelling (FOPL) warning labels, ensuring a comprehensive approach.

    Global Trends in QR Usage

    • Top Users: Countries like the U.S., India, France, and the U.K. are among the leading users of QR codes.
    • Market Growth: The global packaged food market, estimated at $303.26 billion in 2019, continues to expand, with QR codes playing a pivotal role in providing consumers with essential product information.
    • Consumer Preference: Consumers increasingly consider food packaging as important as the product itself, with QR codes serving as a technology that enhances information accessibility and influences buying behaviour.

    Conclusion

    • The introduction of QR codes on food products by the FSSAI is a crucial step toward enhancing food safety and ensuring consumers have access to comprehensive product information.
    • In an era of rising health concerns and growing markets for packaged foods, this initiative empowers consumers to make informed choices and underscores the importance of clear food labelling.
    • QR codes are emerging as a global trend, simplifying information access and improving consumer experiences.

  • India’s record Food Production

    Food Production

    Central Idea

    • Recent data from the agriculture ministry has revealed that India achieved record-high food production in the 2022-23 fiscal year.
    • However, this surge in production appears to be at odds with the government’s decision to restrict the export of key staples like wheat and rice, as well as the persistent trend of rising food inflation.

    Food Production Statistics

    • Record-High Food Production: The agriculture ministry estimates food production for 2022-23 at a historic 329.7 million tonnes, marking a 4.5% increase from the previous year.
    • Cereal Production: Major cereal production, including rice and wheat, rose by 4.9% and 2.6%, respectively. Coarse grain production surged by 12%, while pulses production experienced a 4.4% year-on-year decline but remained 6% higher than the five-year average.
    • Challenges Faced: These estimations were made despite adverse conditions such as subpar monsoons affecting rice output and late rains causing damage during crop harvesting.

    Inconsistencies in the Data

    • Export Curbs: In September 2022, India imposed export curbs on broken rice and imposed a 20% duty on certain varieties due to expected domestic production challenges. These curbs have since intensified.
    • Wheat Export Ban: Last year, a miscalculation of wheat harvest, primarily due to a heatwave, led to export bans in May 2022, despite promises to bridge global supply gaps after Russia’s invasion of Ukraine.
    • Rising Food Prices: Despite record production and export restrictions, retail prices for cereals have continued to surge. Wheat and rice prices have been in double digits, with consumer cereal prices up by 11% year-on-year, and pulses registering a 16.4% increase. As of October 21, retail prices for rice and wheat flour were 12.7% and 5% higher year-on-year, respectively.

    Prospects for 2023-24

    • Kharif Production Estimate: The first advance estimate for kharif production, typically released in September, is yet to be published. This year’s monsoon, with the lowest rainfall in five years and uneven distribution, is expected to impact rice production, the main kharif crop.
    • Pulses and Oilseeds: Additionally, reduced rainfall in several states may affect pulses and oilseeds production. Retail prices for specific pulse varieties like tur (pigeon peas) have already surged by 38% compared to the previous year.

    Challenges in Robust Crop Estimations

    • Reliability of Data: National crop yield estimates rely on crop-cutting experiments conducted by state revenue and agriculture departments, raising concerns about the accuracy of data collection, particularly in understaffed state departments.
    • Remote Sensing: India is using remote sensing to cross-verify the data, yet reliability remains a challenge, especially for crops with multiple harvests.
    • Horticulture Crops: Estimating yield for horticulture crops, which are harvested in stages, is even more complex than for food grains.

    Conclusion

    • India’s agricultural landscape presents a perplexing scenario with record-high food production, export restrictions, and stubborn food inflation.
    • The government’s efforts to stabilize prices through export curbs have not yielded the expected results.
    • As India navigates the complexities of its agricultural sector, it must address the discrepancies in data collection and explore innovative approaches to ensure accurate estimates and sustainable food security.

  • What is the Amul versus KMF controversy?

    amul

    Central idea

    • Amul, the country’s largest dairy player, announced on April 5 that it would supply milk and curd through e-commerce portals in Bengaluru.
    • The announcement was met with opposition from Kannadigas, who saw it as an attempt to threaten the iconic Nandini milk brand of the Karnataka Milk Federation (KMF).

    Political Controversy

    • The Amul vs. KMF row turned into a political tool in poll-bound Karnataka.
    • Dissenting sections expressed fears that Amul would eat into the market of Nandini and pose a threat to its business in the state.
    • The ruling government was accused of attempting to privatize the milk sector and “finish off” a home-grown product.

    A quick backgrounder

    • Both Amul Dairy and KMF are successful examples of adopting the three-tiered ‘Anand’ model of dairy procurement.
    • Farmers supply milk to dairy cooperatives at the village level, which is then procured by milk unions at the district and state levels.
    • There are 16 district milk unions in Karnataka supplying milk to the dairy cooperatives.
    • KMF provides competitive prices to dairy farmers.
    • KMF corners most of the market share for surplus milk provided by farmers in the state.

    Anand Model of Dairy Procurement

    • It is a system of milk collection and distribution pioneered by the Amul cooperative in Anand, Gujarat, India.
    • This model has revolutionized the dairy industry in India by providing a fair price to dairy farmers, eliminating the need for middlemen, and improving the quality of milk.
    • Under the Anand model, farmers are organized into dairy cooperatives, which collect and market their milk.
    • The cooperatives are managed by the farmers themselves and are supported by the infrastructure and marketing expertise of the Amul cooperative.
    • The farmers are paid a fair price for their milk, which is based on its quality and quantity, and they receive regular payments for their milk.

    Why are people protesting?

    • Overpricing: The pricing difference between Amul’s toned milk and Nandini’s toned milk was highlighted, with Amul’s milk priced at ₹54 per litre and Nandini’s at ₹39 per litre.
    • Unhealthy competition: KMF’s online presence in the state could create unhealthy competition with Amul’s online presence, despite the pricing difference, according to the federation.

    The turf war

    • The KMF is the second-largest milk cooperative in India after Amul.
    • While Amul and KMF compete in neutral regions like Mumbai, Nagpur, Goa, Hyderabad, and Chennai markets, they have not clashed on home turfs.
    • Karnataka is a milk-excess market that meets the needs of the state and exports surplus to other states.
    • KMF plans to write to the National Dairy Development Board, requesting it to direct Amul not to venture into the Bengaluru market and concentrate on milk-deficient states.

    Clarification by Amul

    • Amul clarified that it was launching its fresh milk and curd only for a niche market through e-commerce channels and not through the mass market distribution network.

     

  • FSSAI sets standards for Basmati Rice

    basmati

    In a bid to promote the business around basmati rice, the Food Safety and Standards Authority of India (FSSAI) notified standards for basmati rice. They will be enforced from August 1, 2023.

    Food Safety and Standards Authority of India (FSSAI)

    • The FSSAI is an autonomous body established under the Ministry of Health & Family Welfare, Government of India.
    • It has been established under the Food Safety and Standards Act, 2006 which is a consolidating statute related to food safety and regulation in India.
    • It is responsible for protecting and promoting public health through the regulation and supervision of food safety.
    • It is headed by a non-executive Chairperson, appointed by the Central Government, either holding or has held the position of not below the rank of Secretary to the Government of India.

     

    Basmati Rice

    • Basmati, pronounced is a variety of long, slender-grained aromatic rice which is traditionally grown in India, Pakistan, and Nepal.
    • As of 2019, India accounted for 65% of the international trade in basmati rice, while Pakistan accounted for the remaining 35%.
    • Many countries use domestically grown basmati rice crops; however, basmati is geographically exclusive to certain districts of India and Pakistan.
    • India accounts for over 70% of the world’s basmati rice production.
    • The areas which have a geographical indication are in the states of Punjab, Haryana, Himachal Pradesh, Delhi, Uttarakhand, Western Uttar Pradesh and Jammu and Kashmir.

    What are the standards set out by FSSAI?

    • Fragrance: Basmati has the characteristic fragrance identified with this variety and is free from artificial fragrances and colouring.
    • Grain size: The authority has also set standards on parameters such as average size of grains and their elongation ratio after cooking.
    • Vital contents: It has set the maximum limits for moisture, amylose content, uric acid, damaged grains and presence of non-basmati rice.
    • Varieties included: The standards are applicable to brown basmati rice, milled basmati rice, parboiled brown basmati rice and milled parboiled basmati rice.

    Economics of Basmati

    • Basmati rice is exported out of India and had an annual forex earning of Rs 25,053 crore during 2021-22.
    • India accounts for two-thirds of the global supply of basmati rice.

    Significance of the move

    • FSSAI hopes that the standards would protect consumer interest and ensure the quality of basmati rice.
    • In 2020, India’s application for a geographical indication tag recognised in the European Union market was put on hold after Pakistan opposed the move.
    • Before this, in 1997, Texas-based Company RiceTec developed American basmati varieties and patented them.
    • These were introduced in the international market as ‘Kasmati’ and ‘Texmati’.
    • However, the patent was contested in the year 2000 by the Centre for Scientific and Industrial Research (CSIR), India’s premier science and industry organisation, saying the term ‘basmati’ could be used only for rice grown in India and Pakistan.

     

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  • Combating micronutrient malnutrition through food fortification

    malnutrition

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    Context

    • When it comes to nutrition, or more specifically micronutrient malnutrition, there is an urgent need to address the maladies that poor nutrition can inflict on the masses, especially given the diverse populations in India.

    What is malnutrition?

    • Malnutrition refers to deficiencies, excesses or imbalances in a person’s intake of energy and/or nutrients.
    • The term malnutrition covers 2 broad groups of conditions.
    • One is ‘undernutrition’ which includes stunting (low height for age), wasting (low weight for height), underweight (low weight for age) and micronutrient deficiencies or insufficiencies (a lack of important vitamins and minerals).
    • The other is overweight, obesity and diet-related non-communicable diseases (such as heart disease, stroke, diabetes, and cancer).

    What are micronutrients and why they are so important?

    • Micronutrients are vitamins and minerals needed by the body in very small amounts.
    • They perform a range of functions, including enabling the body to produce enzymes, hormones and other substances needed for normal growth and development.
    • However, their impact on a body’s health is critical, and deficiency in any of them can cause severe and even life-threatening conditions. This can lead to reduced educational outcomes, reduced work productivity and increased risk from other diseases
    • Deficiencies in iron, vitamin A and iodine are the most common around the world, particularly in children and pregnant women.
    • Low- and middle-income counties bear the disproportionate burden of micronutrient deficiencies.
    • Many of these deficiencies are preventable through food fortification and supplementation, where needed.

    malnutrition

    The worrying status of malnutrition in India

    • According to National family Health survey (NFHS): As in NFHS-5 data, every second Indian woman is anaemic, every third child is stunted and malnourished, and every fifth child is wasted.
    • According to an FAO Food Security Report for 2021: India ranks 101 out of 116 countries in the Global Hunger Index 2021, with a 15.3% undernourished population, the highest proportion of stunted children (30%), and wasted children (17.3%).
    • Higher rate of stunting: The picture the Global Nutrition Report 2021 paints is cause for concern, noting that stunting among children in India is significantly higher than the Asian average of 21.8%.

    How the countries are tackling malnutrition?

    • Since the 1920s, developed countries and high-income countries have successfully tackled the issue of malnutrition through food fortification.
    • Of late, the low-and middle-income countries, such as India, have pursued food fortification as one of the strategies to tackle micronutrient malnutrition.
    • The health benefits accruing from food fortification have made 80 countries to frame laws for the fortification of cereal flour, and 130 countries with iodised salt, where 13 countries have mandated rice fortification.

    malnutrition

    What is food fortification?

    • Food fortification is the process of adding nutrients to food.
    • For instance, rice and wheat are fortified with iron, folic acid and vitamin B12, and salt fortified with iron and iodine. Iodised salt has been in use for the past few decades.

    malnutrition

    How India is tackling malnutrition and anemia?

    • Fortified rice though PDS: Pilot projects on the distribution of fortified rice have been taken up in select States, including Maharashtra (Gadchiroli district) as part of a targeted Public Distribution programme for the masses.
    • Scaling up the distribution through various food security schemes: The programme has been a success in terms of preventing cases of anaemia from 58.9% to 29.5%, within a span of two years, prompting the central government to declare the scaling up of the distribution of fortified rice, the major staple diet of 65% of the population, through the existing platform of social safety nets such as the PDS, ICDS and PM-POSHAN.
    • Cost-effective strategy: Experiences from the different States on the fortified rice project, so far tally with the results of global programmes that use fortified food as a cost-effective strategy.
    • Reduction in anaemia: The study found a promising reduction (29.5%) in the prevalence of anaemia among women, adolescent girls, and children put together in Gadchiroli district.

    Case study of Noon meal scheme in Gujarat

    • In Gujarat, an eight-month long study on multiple micronutrient fortified rice intervention for schoolchildren (six-12 years) in 2018-2019, as part of the Midday Meal Scheme, found increased haemoglobin concentration, 10% reduction in anaemia prevalence, and, more importantly, improved average cognitive scores (by 11.3%).

    The probable outcome according to NITI Aayog

    • Iron deficiency anaemia is a major public health concern, because it is responsible for 3.6% of disability-adjusted life years or DALYs (years of life lost due to premature mortality and years lived with disability) according to the World Health Organization (WHO) i.e., a loss of 47 million DALYs, or years of healthy life lost due to illness, disability, or premature death (2016).
    • According to NITI Aayog (based on WHO meta-analysis on the impact of rice fortification), a rice fortification budget of around ₹2,800 crore per year can save 35% of the total or 16.6 million DALYs per year with no known risk of toxicity.
    • In India, the cost of one DALY lost due to iron deficiency anaemia (IDA) is approximately ₹30,000, while the cost of averting an IDA-related DALY is only ₹1,545, resulting in a cost-benefit ratio of 1:18.
    • Rice fortification, which costs less than 1% of the food subsidy bill (2018-19), has the potential to prevent 94.1 million anemia cases, saving ₹8,098 crore over a five-year period.

    Concerns over the excess of per capita nutrients intake?

    • Despite the programme’s proven efficacy, activists have expressed concern that excess iron overload from fortified rice has been dangerous for Jharkhand’s tribal population suffering from sickle cell anaemia and thalassaemia.
    • Iron levels in fortified rice range from 28 mg to 42.5 mg, folic acid levels from 75 mcg-125 mcg, and vitamin B12 levels from 0.75 mcg to 1.2 mcg (FSSAI standards).
    • Considering the per capita intake, in a family of three members with a rice consumption of approximately 60 grams per person, the additional intake is 2.45 mg of iron. This in fact compensates our daily losses of iron from the body, which is 1 mg-2 mg per day.

    Conclusion

    • Given its proven efficacy and cost-effectiveness, food fortification can help us in reducing micronutrient deficiencies and address overall health benefits. The intervention, carried out with precautions is the key to address the issue of the malnutrition.

    Mains question

    Q. What is micronutrient malnutrition? Food fortification programmes have made great strides in India, reducing micronutrient deficiencies in recent decades but more efforts are needed. Discuss

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