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Food Safety Issues in India: Opportunities and
Challenges
Anjani Kumar
International Food Policy Research Institute
IFPRI-South Asia Regional Office, NASC Complex, Pusa
New Delhi 110 012 India
E-mail: anjani.kumar@cgiar.org
Web: www.ifpri.org
International Food Policy Research Institute
Changes in consumer demand and preferences
Increasing demand for greater food safety,
Increasing awareness among consumers and policy makers
NGOs, consumer groups, research institutes, media
Complex nature of food safety hazards,
Advances in contamination detection methods
Emergence of private standards driven by supermarkets and modern
value chains
Integrated approach to ensure food safety
Greater attention on compliance with FSM at farm level
Growing concerns of food safety
International Food Policy Research Institute
Past studies and gaps
Evolution and implementation of regulatory framework
Henson & Jaffee, 2006; Henson & Reardon, 2005; Buzbey & Frenzen, 1999; Buzbey,
Frenzen, & Rasco, 2001; Antle, 1999; Roberts & Marks, 1995.
Impact of SPS and TBT on trade
Hooker & Caswell, 1999; Maskus & Wilson, 2001a, 2001b; Otsuki, Wilson, &
Sewadeh, 2001.
Welfare effects of food standards
Calvin & Krissoff, 1998; Kumar & Kumar, 2003; Moenius, 2004; Otsuki et al., 2001;
Paarlberg & Lee, 1998.
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Past studies and gaps
Consumers’ willingness to pay for food safety attributes
Roberts, 2007; Rozan, Stenger, & Willinger, 2004; Zhiang, Mao, & Gale,2007;Goldberg
and Roosen, 2007; Annett et al., 2008; Roy et al., 2010.
Cost of compliance-focused on processing
Gould, Smukowski, & Bishop, 2000; Jensen & Unnevehr, 2000; Mortlock, Peters, &
Griffith, 2000.
Majority of these studies carried out in developed countries
Studies in developing countries context are scarce
status of adoption
cost of compliance
determinants for adoption and
impact on performance
International Food Policy Research Institute
Potential Sources of Food Safety Hazards
Agri Input
Supply
Farming Assembly
Storage
Processing
Value addition
Wholesaling
Export/Import
Retailing
Consumption
Sale of banned or
restricted
pesticides
Contaminated
water and soils
Improper storage,
drying and pest
control
Contaminated water Improper storage Contaminated
water
Seed borne and
animal born
diseases
Improper pesticide
application
Poor waste
management
Use of banned food
additives/substances
Unhygienic
transport
Poor sanitation
Improper waste
water
management
Improper animal
health practices
Industrial
pollutants
Poor sanitation Improper handling
and packaging
Improper storage
Industrial
pollution
Unhygienic
handling and
transport
Cross contamination
Use of prohibited
chemicals
Improper packaging
Inadequate pollution
control and waste
management
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Food safety and the Indian domestic market
Consumers
19th Century 20th Century 21st Century
Emphasis on staples
Food security
Food adulteration
Traditional recipes, locally
produced food
Knowledge of food benefits
limited
Eat to sustain body function
and enjoyment
Protect public from food
supposed to cause illness and
death
Diversification towards HVF
and perishables
Global food supply
Processed food-complex
products & ingredients
Increased awareness about
link between diet and health
Eat to enhance health and
quality of life
Demand for regulated safe
food and information
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Food safety and Indian export market
Country Items
European communities Lack of harmonization of egg products
standards
Different MRLs for pesticides, drugs and other
contaminants
Russian Federation Problem in market access for bovine meat, egg
products, and ban on plant products
China Delay in finalization of protocols, Approval of
processing units for meat, market access for
basmati rice
Japan Stringent plant quarantine procedures, unfair
trade practices for flowers, ban on import of
fresh grapes
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Food safety and Indian export market
Country Items
USA Mangoes (HCC), Litchi (AMF), Pomegranate, Grapes
((Use of Sulphur Pads), organic standards
Australia Ban on mango and other fruits (fruit flies and weevil)
New Zealand Ban on mango and other fruits (fruit flies and weevil)
Mexico Market access for Basmati rice
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Why Regulate?
Ensure safety of food produced/manufactured
Ensure consumer gets what he pays for
Protect consumer from being misled
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How?By ensuring
1. Hygiene and Safety of Food Manufactured
1. Safety of ingredients
2. Safe level of usage of Additives (chemicals)
3. Safe level of nutrient addition
2. Proper Consumer information and ways & means to Trace the Product - Labeling Regulation
3. Consumers are not misled – Claim Regulation
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Responsibility lies with all stakeholders
1. Regulators /Advisors
2. Industry
3. Consumer
4. Scientists & researchers
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Governance
Domestic market
Department of health
Export
EIC
APEDA/MPEDA
Import
Quarantine
Entry points
Nodal agencies
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Measures for Food Safety Compliance
Export inspection council of India
Quality control and pre-shipment inspection to ensure minimum standards
1000 products have been notified
Export certification are mandatory for dairy, poultry, egg, meat and meat products
System of export inspection and certification
Consignment –wise inspection
System based approach for in-process quality control
Self-certification
Food safety management system based certification
……..
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Challenges of Food Safety Compliance
Policy and regulatory environment
Smallholder agriculture
Weak extension systems
Poor infrastructure and services in the marketing system
Cultural issues
Inadequate grades and standards for domestic market and poor
enforcement
Dominance of informal markets
Lack of pro-activity in addressing food safety issues
Huge investment
Increase in cost which may affect competitiveness
To build trained manpower
Impact on trade flow
Social conflict
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Impact on industry structure
Small firms may become suppliers to large firms and may
go out of business.
The standard appears to favour larger establishments, not
because of economies of scale but also because of the
infrastructure facilities required by such standards.
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Challenges for smallholders
How to produce safe food
How to be recognized as producing safe food
How to be competitive
How to deal with asymmetry of information about
consumer demands and safety
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Opportunities
National market of more than 1.3 billion people
Structural change in demand towards HVCs
Better market access for expanding global food trade
Higher price in world market
Expanding market of functional foods
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Constraints/problems in implementation
Lack of Transparency
Complexity of SPS standards
Varying threshold limits
Insufficient participation in standard setting process
Irrelevance of the standard to the production environment
Domestic regulatory problems
Infrastructure and resource related problems
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Determinants for Food Safety Compliance
Education/skill
Scale
Integration with modern chains
Collective action
Infrastructure
Price
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Consumers
Ability
Willingness
Producers
Efficiency
Access to markets
Government
Funding aid programmes
Creating infrastructure
Who should bear the additional cost?
International Food Policy Research Institute
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Anjani Kumar
Policy Implications
Scale of production and compliance
Adoption intensity non-neutral to scale
Predominance of smallholders likely to continue
Motivation of encouraging smallholders for higher adoption of food safety practices
Cost of compliance and smallholders
Cost of compliance against interest of smallholder farmers
Economies of scale in the adoption of food safety measures could exclude
smallholders
Funding and policy support of the government to minimize the cost burden for the
smallholders
Adoption intensity and market price of produce
Positive association between price and adoption intensity
Expenditure incurred on compliance does have a payoff
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Thank you