Indian Vegetable Oil Landscape & Regulatory Changes · 2012. 6. 7. · Prabodh Halde. Head –...
Transcript of Indian Vegetable Oil Landscape & Regulatory Changes · 2012. 6. 7. · Prabodh Halde. Head –...
Prabodh Halde
Head – Regulatory MARICO LTD
VP-AFST Mumbai.
Indian Vegetable Oil Landscape &Regulatory Changes
Malaysia – India P alm OilTrade Fair & Seminar 2012
7 - 8 June 2012ITC Maratha Hotel, Mumbai
Organized by :
What we will cover
Indian Food & Oil Industry
Transition form PFA to FSSAI
Impact on FBOsCompliance and penalties
Issues
Way forward
•Indian Food & Oil Industry
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Indian Economy
Today India is one of the biggest agro based country with strong economical growth, with a $ 800 billion GDP, growing at 6% annually (8% in 20010-11), is the world's 12th largest and one of its fastest growing economies
Though it is number one in Agricultural production, our Processing rates are far below compared to other developed countries.
Increasing middle class segment gives opportunity to food processing sector and thus it is called as rising sector.
New FSSAI act has also provided huge opportunity in various sectors including Nutraceutical and functional food
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John E. PetersM Dr. A.P.J Abdul Kalam
Hon’ble Ex. President INDIA 2020 a Vision for the new Millenium ( Chapter 4 Food, Agriculture & Processing )
India At A Glance
India will be word power in Food & Agriculture by 2020
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India India’s Rank in World Production
Arable Land (Million ha) 151 2Irrigated Land (Million ha) 55 1Wheat 72 2Rice, Paddy 124 2Coarse grains (including maize) 29 3Milk 91 1Fruits 47 2Vegetables 82 2Edible Oilseeds 25 3Pulses 15 1Sugarcane 245 2Tea 0.85 1Cattle (million) 186 2
An overview of Indian Agriculture
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Food processing sector
Food Processing
Fruits & vegetable processing
.Dairy
Meat & Poultry
.Marine .Grain processing
Oils and Fats
Beer and Alcohol
Consumer products
Biscuits
Snacks
beverages
PRESENT VALUE 5 LACS CRORE or 850 Billion USD
Indian Oil Industry
India has shown steady growth of 4.5% over last 10 years.
Per capita consumption of oil is 13.3kg/yearVs 24 Kg/year of world’s average.
In respect of volume Palm,Soya bean Oil and Mustard are three largest oils consumed in India
Palm -46%Soyoil – 16%Mustard – 14%
Imports are steadily increasing from 3% in year 1992 to 55% in year 2011.
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Indian Oil Industry
In India the oil seed productivity is very low 950 to 1000kg per hector ( 1/3 rd of world’s average)
The Production is stagnated at around 27 million MT/yr and oil demand is increasing by 7lacs tonnes per year and thus India has to depend on Imported oils.
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Import of Vegetable Oils Edible, Vanaspati & Non-edible for 2005 to 2010
(Qty.in Mn.T) Vegetable
Oils (Nov.-Oct.)
2009-10 2008-09 2007-08 2006-07 2005-06
Edible Oils 8.82 8.18 5.61 4.71 4.41 Vanaspati(E) --- 0.02 0.05 0.25 0.30 Non-edible 0.42 0.46 0.65 0.63 0.68 Total 9.24 8.66 6.31 5.59 5.39
Source : SEA Data
10
0
10
20
30
40
50
60
70
80
90
100
Qty
Edible oil status
Domestic Veg. Oil Availability
Import of Edible Oil
Self Sufficiency (%)
REF : SEA DATA
•Indian Food Laws
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Food Legislation – Milestones in India
1899 : States’ / Provinces’ own food laws with differencein standards for the same commodity --Conflicts in inter provincial trade.
1943 : Central Advisory Board for Central Legislation that brings in uniformity throughout the country.
1954 : Central Legislation –Prevention of Food Adulteration Act, 1954. Rules and Standards framed under the Act 1955.
2006: FOOD SAFETY & STANDARDS ACT – 2006
2011.: FSSR 2011
2012 – FSS Import Regulations
PH:PIM13
DEFINITION OF FOOD UNDER PFA ACT, 1954
“Food” means any article used as food ordrink for human consumption, other thandrugs and water and includes:-
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PH:PIM14
DEFINITION OF FOOD UNDER FSSA ACT, 2006
Food means any substance, whether processed, partiallyprocessed or unprocessed, which is intended for humanconsumption and includes primary food to the extent defined inclause (zx), genetically modified or engineered food or foodcontaining such ingredients, infant food, packaged drinking water,alcoholic drink, chewing gum, and any substance, including waterused into the food during its manufacture, preparation or treatmentbut does not include any animal feed, live animals unless they areprepared or processed for placing on the market for humanconsumption, plants prior to harvesting, drugs and medicinalproducts, cosmetics, narcotic or psychotropic substances:
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•FSSAI 2006
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PH:PIM16
FSSA, 2006
Food Safety and Standards Bill piloted by MOFPI, passed by parliament in Monsoon
session and approved by President in September, 2006
1955 2006
India then and now…….
PFA FSSAI
PH:PIM19
Objectives of FSSA
W
• To consolidate the laws relating to food• To establish food safety and standards authority of India
for laying down science based standards for articles of food.
H• To regulate the manufacture, storage, distribution, sale
and import of food products
Y• To ensure availability of safe and wholesome food for
human consumption
PH:PIM20
Where is the emphasis :
Minimum Effective
Legislation
Legislation should not
restrict competition
Include non regulatory measures
Innovations for Consumer Choice &
Health
Science base legislation
Risk Analysis
Evidential Analysis
Enforcement to enablement
Graded penalties
PH:PIM21
Critical Shifts – PFA to FSSA
Adulteration Safety
Several Authorities Single Authority
Prescriptive Standards General Standards
Inspection /Control Monitoring & Surveillance
PH:PIM22
FSSAI will replace the following acts :
FSSAIThe Prevention
of Food Adulteration
Act, 1954(37 of 1954).
The Fruit Products Order,
1955.
The Meat Food Products Order,
1973,
The Edible Oils Packaging
(Regulation) Order, 1998.
The Vegetable Oil Products
(Control) Order, 1947.
The Milk and Milk Products Order, 1992.
The Solvent Extracted Oil, De oiled Meal,
and Edible Flour (Control)
Order, 1967
Any other order issued under the
Essential Commodities Act, 1955 (10 of 1955). relating to
food.,
FSSAI STRUCTURE
State CommissionersChairman
Scientific Committee Scientific Panel
C E O International / Codex
Program Management
Inspection &Investigation Unit
Surveillance & Compliance
Unit
Laboratory Services
Advisory &Extension Services
CentralAdvisory
Committee
Legal Unit AdministrativeFinance Unit
-Programming
(Annual Reports & Planning)
-Implementation / & LiaisonWith States Advisory
ImportsR & D Trouble
Solutions
Monitoring(States)
Compliance)
ManpowerDevelopment
-Analytical Manuals-Accreditation
-Quality Assurance Prog-Analysts Training
Training & AwarenessAudio visual
Sampling TechniquesTo Regulators / industry including
Microbiological Sampling etc
Budgeting
Food Safety & StandardsAuthority Of India 23 Members
PH:PIM24
Salient features Defines the concept of “substandard”
and “unsafe food”;
emphasizes on the need on risk assessment; not trade restrictive
Provisions relating to functional and novel food
Prescribes graded penalties for offenses/violations
Improvement notices
Legislative Frame
FSSAI 2006
FSS RULES
2011
FSS
REGULATION 2011
FSS Regulations - Chapters
1. General-- Mainly Definitions
2. Licensing and Registration of food business
3. Packaging and Labeling regulations
4. Food Safety and Standards (Food Product and Food Additives)
5. Substances added to food
6. Prohibition and Restriction on sales
7. Contaminants,Toxins and Residues
8. Laboratory and Sample Analysis
Every container in which vanaspati, margarine, bakery shortening,
blended edible vegetable oils, mixed fat spread and refined vegetable
oil is packed shall bear;
The name/ description of the contents, “Free from Argemone oil”
The mass/ volume of the contents
Name and business particulars of the producer
Net weight of the contents in the container
Batch no, Month and Year of Manufacture
Indian Standards institution Certification Mark
Labeling Of Edible Oils And Fats
Important regulations
Food Safety and Standard regulations
2.2 Fats, oils and Fat emulsions1. Oils2. Partially hydrogenated soybean oil3. Edible fats4. Margarine and fat spread5. Hydrogenated Vegetable oils
Relevant Chapters & Clauses1. FOOD SAFETY AND STANDARDS (LICENSING AND REGISTRATION) REGULATIONS, 2011
Licensing and Registration of Food Businesses
2.1 Registration and License for Food Business
2.1.2 License of food business
2.1.3 Application for License
2.1.4 Processing of Application
2.1.5 Procedure for License under certain local areas
2.1.6 Commencement of business
2.1.7 Validity and Renewal of Registration and License
2.1.8 Suspension or cancellation of Registration certificate or License
2.1.9 Modifications, expansions, change in premises after grant of license and registration
2.1.10 Mode of payment
2.1.11 Transfer of Registration certificate or License
2.1.12 Appeal
2.1.13 Return
2.1.14 Food business operator to be bound by Directions or order
SCHEDULES
Schedule 1 List of Business under the purview of Central Licensing Authority
Schedule 2 Forms
Form B - Application for License / Renewal of license under FSSA
Form C - License Format
Form D - 1 Annual Returns to be filed for business
Annexures
Schedule 3 Fee for Grant/ Renewal of License / Registration / License Fees
Schedule 4 Part II - Practices to be followed by all Food Business Operators applying for License
Relevant Chapters & Clauses2. FOOD SAFETY AND STANDARDS (PACKAGING AND LABELING) REGULATIONS, 2011
Packaging and Labeling Regulations
2.1 Packaging
2.1.1 General Requirements
2.1.2 Product specific requirements
2.2 Labeling
2.2.1 General Requirements
2.2.2 Labeling of Pre packaged Foods
2.3 Manner of Declaration
2.3.1 General Conditions
2.3.2 Principal Display Panel
2.3.3 The height of numeral in the declaration
2.4 Specific Requirements/ Restrictions on manner of labeling
2.4.2 Labeling of edible oils and fats
2.5 Restriction on advertisement
2.6 Exemptions from labeling requirements
4. FOOD SAFETY AND STANDARDS (PROHIBITION AND RESTRICTION ON SALES) REGULATIONS, 2011
Prohibition and Regulation of Sales
2.1 Sale of certain admixtures prohibited
2.2 Restriction on sale of Til oil produced in Tripura, Assam and West bengal
2.3 Special provisions relating to Vegetable Oil and fat
Relevant Chapters & Clauses3. FOOD SAFETY AND STANDARDS (FOOD PRODUCT STANDARDS AND FOOD ADDITIVES) REGULATIONS, 2011
2 Food Product Standards
2.2 Fats, oils and fat emulsions
2.2.1 Oils
2.2.2 Interesterified Vegetable Fat
2.2.3 Partially Hydrogenated Soybean Oil
2.2.4 Edible Fats
2.2.5 Margarine and Fat Spreads
2.2.6 Hydrogenated Vegetable Oils
3.1 Substances added to Food
3.1.1. Food Additives
3.1.5 Anti-Oxidants
3.1.7 Anticaking Agents
3.1.8 Antifoaming agents in edible oils and fats
3.1.17 Other substances to be used in Specified limits
3.1.18 Carry over of Food Additive
Appendix A Table 4 List of food additives for use in edible oils and fats
5. FOOD SAFETY AND STANDARDS (CONTAMINANTS, TOXINS AND RESIDUES) REGULATIONS, 2011
Contaminants, Toxins and Residues
2.1 Metal Contaminants
2.2 Crop Contaminants and Naturally Occuring Toxic Substances
2.3 Residues
•Impact on Industry
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General ImpactAll Big manufacturing facilities will need to be licensed by Central Licensing Authority FSSAI New Delhi
All importers need to take import license from FSSAI.
Small players /warehouses/distributors will need to obtain a valid license from State Licensing Authority
New Products and Proprietary food need pre approval
All the licensed establishments will be subject to periodical inspections and food safety audits by respective licensing authorities
FSMS Plan and Food Recall process
General Impact
oReduction in court cases by adjudication processoAgmark & LM will continue as it is.
oNew Import regulations.
oNew food categorization systems.
oAdditive approval system.
o New section of food categorization : Section 22o Functional food and Nutraceuticalso More scope for product innovation
o New documents of label claims & Claim substantiations.
Food categorization
Food
Standard Food Proprietary Food
Novel Food/organic
food/GM food
Food for specific
nutrition
Health Supplement FSDU
Section 22
Restricted category
Food Business“Food business” means any undertaking, whether for profit or not and
whether public or private, carrying out any of the activities related to
any stage of manufacture, processing, packaging, storage,
transportation, distribution of food, import and includes
food services, catering services, sale of food or food
ingredients;
No Person Shall commence any food business unless he possesses valid
licence/Registration. ( Section 2.1 Licensing and Registration)
Non compliance will attract up to 6 months of Imprisonment and
5lacs of fine.
Licensing and Registration of Food Business
Central Licensing AuthorityState Licensing
AuthorityRegistering Authority
Designated Officerappointed by the ChiefExecutive Officer of theFood Authority of India in his capacity of Food Safety Commissioner
Food Safety Officer or any official in
Panchayats, Municipal Corporation or any
other local body in an area, notified as such
by the State Food Safety Commissioner
for the purpose of registration
Designated Officers appointed under
Section 36(1) of the Act by the Food Safety
Commissioner of a State or UT for the
purpose of licensing and monitoring.
Schedule 4 Requirements
1. Location and Surrounding
2. Layout and Design of Food Establishment Premises
3. Equipment
4. Facilities
5. Food Operations and Control
6. Management and Supervision
7. Food testing Facilities
8. Audit, documentation and Records
9. Sanitation and Maintenance of Establishment Premises
10. Personal Hygiene
11. Product Information and Consumer Awareness
12. Training
1.0 Dairy products and analogues 2.0 Fats and oils, and fat emulsions
3.0 Edible ices, including sorbet4.0 Fruits and vegetables
5.0 Confectionery 6.0 Cereals and cereal products
6.0 Cereals and cereal products 7.0 Bakery products
8.0 Meat and meat products 9.0 Fish and fish products
10.0 Eggs and egg products 11.0 Sweeteners
12.0 Salts, spices, soups, sauces, salads and protein products
13.0 Foodstuffs intended for particular nutritional uses
14.0 Beverages 15.0 Ready‐to‐eat Savories
16.0 Prepared Foods 17.0 Others
17 Food Categories
Proprietary Food Product Approval System
• NOC and Then Approval
• NOC and then approval
• No Approval
• Safety Study and then approval
Novel Produ
ct
Traditional
ProductNon
traditional but safe in
the Market
New to India but
proven outside
370 standard foodIn market more than 10000 food products
Food Product Approval SystemNew product/ingredient approval procedure
ProcessApplicant must apply to Director (PA) in prescribed forminitial screening of the application by the “Approval Screening Committee” Screening process place application under category A or category BCategory A – approval/rejection will happen basis the information furnishedCategory B – products that require further assessment in respect of safety etc. ; will be assessed by the scientific panel/expert group and thereafter scientific committee
ImpactProduct/ingredient approval is a time consuming processProduct launch timelines may be affectedStrong support in terms of research and science will be required
Review of standard process
1. Receiving suggestions -2. Examination of suggestions by SRC-02 months 3. Report of the specially constituted expert committees as per
requirement - 02 months 4. Consideration by Scientific Panel - 02 months 5. Consideration by Scientific Committee - 02 months 6. Consideration by Food Authority - 2 months 7. Approval by the Government and draft notification - 02 months 8. Time given for receiving public comments and notification to WTO,
SPS/TPT etc - 02 months 9. Disposal of comments and finalising the draft - 03 months 10. Approval of the Government and final notification - 02 months
20 Months
Compliance and Penalties
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Justice Dispensation System under the Act
ADJUDICATING COURTS
For Misbranding and sub standard food
For unsafe Food
FineFine with
Punishment
Fine and Penalties
Penalty for substandard food Rs 5 lacs
Penalty for misbranded food Rs 3 lacs
Penalty on misleading advertisement Rs 10 lacs
Food containing extraneous matter Rs 1 lac
Penalty for failure to comply with food safety officer
Rs 2 lacs
Penalty for unhygienic processing of food Rs 1 lacs
Punishment for unsafe food/Not having valid license
six months to 10 yrs of imprisonment
What we must do
Actionable
Study Import regulations and give feedback
Convert/Obtain a valid license from Central/State licensing authority
for all the manufacturing facilities and
warehouses/distributors/Retailors
Ensure compliance with all the conditions of license & Schedule 4
requirements at all times
FSMS Plan or Certification.
ActionableFile the nominations with the Licensing Authorities in
Form IX for all units/branches
Technical person needed as a supervisor in production
Water analysis /Testing of contaminants in to be done
once in six months
Proprietary food product approval if require.
Safety study from recognized institutes
Actionable
Business to be performed with only licensed/registered
vendors
Monitoring/Surveillance/Improvement notices
Product recall/traceability procedure compulsory
Internal audit/assessment on regular basis
Apply for specification changes
Put license number on label ( replace the EOP/VOP
Number)
ActionableFBO License for what Central/State
Head office Import /Rellebeller/Marketer Central
Manufacturing units Manufacturing and storing As per capacity
2P/3P Repacker /manufacture As per capacity
Company Depots Storage Central/State
C&FA Storage State
Distributors Wholesale trade State
Transporters Transportation State
Retailer Retailing State
Eligibility Criteria for LicensingCentral Licensing State Licensing Registration
Units processing & producing vegetable oil
by the process of solvent extraction and refineries including oil
expeller unit
More than 2 MT per day Up to 2 MT per day and turnover above
12 lakh
Less than 12 lakh
For FBOs operating in two or more states-
Storage capacity Capacity more than 50,000 MT
Capacity upto 50,000 MT
Packer/Repacker Turnover greater than 20 crores
Turnover upto 20 crores
Relabeller Turnover greater than 20 crores
Turnover upto 20 crores
Marketer Turnover greater than 20 crores
Turnover upto 20 crores
Transporterstransporting edible oil
Having more than 100 vehicles or turnover more
than 30 crores
Having upto 100 vehicles or turnover
upto 30 crores
Important AdvisoriesLicensing Documents : 14:05:2012Product approval – Dated 02.05.2012Advisory with regards to FSMS Plan : Dated 11.04.2012HS Code Advisory : Dated 10:04.2012Advisory on Licensing : Dated 25.01.2012Advisory/Clarification regarding expiry of licenses : Dated 10:01:2012Advisory dated 03:10:2011Advisory dated :3rd June 2012
• AV in crude Palm oil – Limit is 10
• Technical qualified person
• Unsap value for blended oil
• Acid value procedure for RBO based oil
• Acid value limit for refined oil /Palm oil
• FSMS certificate
Issues
ISSUESDefinition of Vanaspati needs to be changed in view of the changes being proposed to produce low TFA products
Clause of H2 generating facility in Hydrogenated vegetable oil–2.2.6(vi) needs to be deleted/modified
Palm stearine to be included in the list of edible oils & specs defined
Statutory labelling of sentence “ hydrogenated oil/fat used contains trans “ needs to be removed
To promote healthy/nutritional oil mix production definition of blended oil to be changed at the earliest.
ISSUES
Specification for Crude Oils to be included in FSSAI regulations ( which was part of SEODMO 1967)
Skilled manpower and their regular training to facilitate accurate testing / interpretation of results in case of advanced testing like TFA etc by GLC.
Properietary product approval system – Expensive/Time consuming and not required
Delay in grant of licenses
Should I need license to produce Eggs?
WHAT WE NEED
Procedures ( Path) should be very clear
WHAT WE NEED
Positive participation with authority for Regulation Making
WHAT WE NEED
Consumer safety is priority
WHAT WE NEED
No blind copy from west
WHAT WE NEED
NO OVER LOADING OF REQUIREMENTS
WHAT WE NEED
HOPES OF GOOD TOMORROW
Thank You Any Query…[email protected]…
9820278746