In the new WTO led freer trade environment, Indian food industry can compete Globally only if it is price and quality competitive .Due to the liberalization of Indian economy and the onset of WTO regime, quality Competitiveness will matter most in Indian food industry. Hence serious consideration had given to quality issues in Indian food industries. The Indian government is motivating the dairy and other food processing industries for adoption of food safety and quality assurance mechanisms such as Total Quality Management (TQM) including ISO 9000, ISO 14000. Hazard analysis and critical control points (HACCP). Good Manufacturing Practices (GMP), Good Hygienic Practices (GMP).And this essay also contains Indian Government Regulation’s in the Dairy Processing Sector.
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India has two types of sectors for the marketing of milk and its products, one is “organized sector” and another is “unorganized” sector. The unorganized sector accounts for 88% of total milk production in India and it includes marketing of raw milk and traditional products such as locally manufactured ghee, fresh cheese, and sweets. The organized sector accounts for 10-12% of total milk production in India and it includes the dairy cooperatives and organized private dairies which produces Western-style dairy processed products based on pasteurization. The share of organized sector in the total milk production handling is increasing by the years (FAO, 2002).
India has now become the largest producer of milk in the world, with estimated production of about 81 million tons in 2001(FAO, 2002).Milk production in India accounts for more than 13% of the total world output and 57% of total Asia’s production. Top five milk producing nations in the world are India, USA, Russia, Germany and France (http://www.aavinmilk.com/dairyprofile.html).
After the formation of World Trade Organization(WTO), there were some instances where foreign buyers refused to accept Indian processed food products from Indian food processing industries which did not follow HACCP system.Due to this Industries which are exporting were paying lare amounts of money to foreign consultants for HACCP Implementation (CM, 1997).And also implementing HACCP system has become mandatory for food companies after the formation of World Trade
Organization(WTO) and this is due to HACCP is recommended by the Codex Alimentarius Commission (CAC) and the CAC recommendation has been approved by the Agreement on Sanitary and Phytosanitary Measures (SPS) reached under the signs of WTO (Satish Y. Deodhar, 2001).
It is an international Body which was established by Food and Agriculture Organization (FAO) and World Health Organization (WHO) of the United Nations with an objective to protect the health of consumers and to ensure fair practices in the food trade. It gives specifications for International Standards for the safety and quality of food codes of good manufacturing practice. The Standards, guide lines and recommendations specified by Codex Alimentarius commission was recognized worldwide for international trade and negotiations and also for settling of disputes by WTO.
(Source: GOVERNMENT OF INDIA OUTCOME BUDGET OF MINISTRY OF FOOD PROCESSING INDUSTRIES FOR 2008-2009)
Government of India (GOI) Ministry of food processing industries Financial Scheme for Quality Assurance, Codex Standard 2008-2009.
Objectives of this Scheme:
1. Motivating the food processing industries in order to adopt food quality and safety assurance systems such as Total Quality Management (TQM) which includes ISO 9000, ISO 14000 and safety assurance systems such as Hazard analysis and critical control points (HACCP),Good Manufacturing Practices (GMP) and Good Hygienic Practices (GMP).
2. To make the food processing industries ready to face them to global competition in international trade after the WTO formation.
3. To prepare the food processing industries in such a way that itv will stick to strict quality in hygiene norms.
4. Enhaning the product produced by food processing industries which will accept by overseas buyers.
5. To prepare Indian food processing industry in technologically up to date which will practice international best practices.
The Scheme included the following activities:
1. Total Quality Management (TQM).
2. Promoting of Quality Assurance / Safety Concept.
3. Bar Coding.
4. Strengthening of Codex Cell.
5. Upgrading Quality Control Laboratories.
6. Research & Development Programmes for food processing industry
1. Total Quality Management (TQM)
Ministry of Food Processing Industries (GOI) is running a Plan Scheme which is promoting food processing industries to adopt food quality and safety assurance systems such as ISO 9000, ISO 14000, Hazard Analysis and Critical points (HACCP), Good Manufacturing Practices (GMP), Good Hygienic Practices (GHP) .And it has assisted 10 food processing units to implement the HACCP, IS09000, GMP, GHP practices during the year 2007-2008.
2. Setting Up/Up gradation of Quality Control Laboratory
Strengthening or Setting up or Networking of laboratories will help in introduction of quality and safety systems in food processing industries and maintaining quality of the product at every level of production. Ministry of Food Processing industries (GOI) has started a plan scheme for setting up/ up gradation of quality control laboratory with objectives like ensuring adoption of National food standards, assisting food industries to develop and implement quality management systems such as ISO9000, HACCP etc., analyzing the samples received from food processing industries, and other stake holder and training in the areas relating to quality improvement through own expertise.
The Ministry of food processing industries (GOI) has approved financial assistance to the some organizations during the year 2007-2008 for setting up and up gradation of food testing laboratories like Maarc Lab private limited, Pune.,Council for Food Research and Development, Government of Kerala.,Indian Institute of Technology, Kharagpur.,Pradeshik Cooperative Dairy Fed. Ltd, Lucknow.,. AcharyaN.G. Agricultural University, Hyderabad and A.P. State Agro Industries Dev.Corpn.Ltd. Hyderabad.
(Source: GOVERNMENT OF INDIA OUTCOME BUDGET OF MINISTRY OF FOOD PROCESSING INDUSTRIES FOR 2008-2009)
Indian Government Regulation’s in the Dairy Processing Sector:
Compulsory legislation
1. Prevention of Food Adulteration Act, 1954
The Act was created in Indian Parliament in 1954 in order to prevent adulteration of food and it Rules were formed in the year 1955 .The PFA Act includes food standards, general procedures for sampling, analysis of food, powers of authorized officers, nature of penalties and other parameters related to food. It will give standards to food additives, preservative, coloring matters, packing & labeling of foods, prohibition & regulations of sales etc. Amendments are incorporated in PFA rules with the recommendation made by the Central Committee of Food Standards (CCFS) which has been setup by Central Government of India under the Ministry of Health and Family Welfare comprising members from different regions of the country. The provisions of PFA Act and Rules are implemented by State Government and local bodies as provided in the rules. The provisions of the Act are mandatory and contravention of the rules can lead to both fines and imprisonment.
(Source: http://www.fssai.gov.in/PFA.aspx)
2. Milk and Milk Product Order (MMPO)
The Govt. of India had announced officially the Milk and Milk Product Order (MMPO) 1992 on 9.06.1992 under the provisions of Essential commodity Act, 1955.According to this order any person or dairy plat handling more than 10000 liters per day of milk or 500 Million tons of milk solids per annum needs to be registered with the registering authority appointed by the Central Government of India. This order aims at to maintain and increase in supply of liquid milk of desired quality in the interests of the general public and also helps in for regulating the production, processing and distribution of milk and milk Products. So far suitable amendments were made by Government of India for this order from time to time in order to make it more liberal and oriented to facilitate the dairy entrepreneurs. The latest amendment was made on 26/03/2002. At present there is no restriction on setting up of new milk plant but requirement of registration is for enforcing the prescribed standards of quality and food safety. The salient features of the new amendments include sanitary, hygienic condition, quality, food safety issues and flexible inspection of dairy plant.
(Source: http://dahd.nic.in/milkorder.htm)
3. Standards on Weights and Measures (Packaged Commodities) Rules, 1997
These Rules species obligatory conditions should be maintained for all milk and milk products which are in packed form with respect to declarations on quantities contained. And they are operated by the Directorate of Weights and Measures, under the Ministry of Food and Civil Supplies (Government of India).
4. Export (Quality Control and Inspection) Act, 1963
This act was operated by Export Inspection Council (Government of India). According to this Act all exportable milk and milk products should undergo compulsory pre-shipment inspection for quality control. And the quality control and inspection are administered through a network of more than fifty offices located around major production centers and ports of shipment
5. Pollution Control
The milk processing industry should take no Objection Certificate from Pollution Control Board which is Compulsory.
Voluntary Standards
In India there are two organizations which deal with voluntary standardization and certification systems in the food sector. They are:
1. Bureau of Indian Standards (BIS)
BIS has two types of activities, one is formulation of Indian standards in the processed foods sector and the other is implementation of standards through promotion and through voluntary and third party certification systems. BIS standards cover raw materials permitted and their quality parameters, hygienic conditions under which products are manufactured and packaging and labeling requirements.BIS will give “ISI” mark that can be exhibited on product packages to those manufacturers complying with standards laid down by the BIS. BIS has made mandatory certification for food colors or additives, vanaspati (Hydrogenated vegetable oil), containers for packing, milk powder and condensed milk.
2. Directorate of Marketing and Inspection (DMI)
Agricultural Produce (Grading & Marking) Act was formed in the year 1937 which had given power to Central Government of India to frame grade standards for agricultural produce. It has formulated certain Standards under scientific manner and is popularly known as AGMARK standards. Recently food safety factors are being incorporated in these standards in order to compete in World trade and they are harmonized with international standards keeping in view the WTO requirements. They will provide Certification to adulteration prone milk products like Butter and Ghee in order to benefit producer/manufacturer and consumer. The Certification mark under the Agricultural Produce (Grading & Marking) Act is popularly known as “AGMARK”.
(Source: http://agmarknet.nic.in/right_DMI.htm)
Other Government Regulations
1. Industrial License:
Normally in India no license is required for setting up a Dairy Project but a Memorandum has to be submitted to the Secretariat for Industrial Approvals (SIA) and an acknowledgment is to be obtained.
2. Foreign Investment:
A prior approval from the Secretariat of Industrial Approvals, Ministry of Industry(Government of India) is required in order to Foreign investment in Indian Dairy Industry.
3. Foreign Technology Agreements:
It also requires prior approval from the government of India .
4. Import of capital Goods
Import of capital goods for dairy processing industry is allowed if it is financed through Foreign Equity and it also need of approval from the Secretariat of Industrial Approvals.
5. Import of Second Hand Capital Goods
Second hand machinary can be imported if it meets conditions like minimum residual life of 5 years, equipment age should not be more than 7 years old, certificate from the Chartered Engineers of the country of origin certifying the age , the Residual life is to be produced and import will be allowed only for actual users.
(Source: indiadairy.com)
The Management Systems Certification (MSC) activity of the Bureau of Indian Standards (BIS):
It consists of a series of activities with which it will assess the capability of an organization’s Management Systems such as IS/ISO 9001:2000(Quality Management Systems), IS/ISO 14001:2004( Environmental Management Systems ),IS 18001:2000(Occupational Health and Safety Management Systems),IS15000:1998 ( Food Hygiene – Hazard Analysis and Critical Control Point (HACCP) System )and the combination of two or more than two systems (integrated management systems) and it will provide third party Certification to the organizations.
BIS offers certification to the following standard:
IS/ISO 9001:2000: This standard comes under Quality Management Systems Certification Scheme (QMSCS) provided by Bureau of Indian Standards and it is identical to ISO 9001:2000 -`Quality Management Systems ‘. IS does not provide any form of consultancy services for implementation of the requirements of IS/ISO 9001:2000 standard as under its Quality Management Systems Certification Scheme, BIS grants licenses against IS/ISO 9001:2000 standard. Accreditation of BIS QMSCS by Raad voor Accreditatie (RvA), Netherlands, is a testimony of BIS QMSCS operating to internationally accepted criteria. BIS Quality Management Systems Certification Scheme is accredited by RvA for twenty three sectors.
IS/ISO 14001: This standard comes under Environmental Management Systems Certification Scheme (EMSCS) and is identical to ISO 14001 -`Environmental Management Systems’. This standard helps the organizations to achieve and demonstrate sound environmental performance. It does not provide any form of consultancy services for implementation of the requirements of IS/ISO 14001 but it grants licenses against IS/ISO 14001 standard.
IS 18001:2000: This standard comes under Occupational Health and Safety Management Systems and helps in good health and safety performance ensuring an accident-free industrial environment. This will also improves organization’s smooth and effective functioning.
IS 15000:1998: This standard comes under Food Hygiene -Hazard Analysis and Critical Control Point (HACCP) – System and it is designed to identify and prevent microbial and other hazards in food production. It helps the producers, processors, distributors, exporters, etc, of food products to utilize technical resources efficiently and in a cost effective manner in assuring food safety .It does not provide any form of consultancy services for implementation of the requirements of IS15000 standard as under its HACCP & HACCP-Quality Management Systems (QMS) Certification Scheme but it grants licenses against IS 15000 (HACCP stand-alone certification) or IS 15000 integrated with IS/ISO 9001:2000 standard (HACCP integrated with QMS Certification).
The Benefits of BIS Certification for management systems:
It improves both internal operational benefits and external marketing advantages of an organization. And it also provide an assurance of consistent quality, pollution prevention, waste reduction, safety and health of employees to highly competitive international market-place, customers, governments, general public, employees and stakeholders .
(Source: Bureau of Indian standards Management Systems Certification Quality Manual, issue 1, 2004).
Major problem associated with quality standards:
Small holders have difficulty complying with SPS/ QUALITY STANDARDS (FAO, 2002).
Conclusion:
There is need of Training of suitable man power on Quality and food safety management systems such as ISO Standards ,good hygienic practices and good manufacturing practices and application of concept and principles of sanitary and phyto sanitary (SPS ) and Hazard Analysis and critical control point ( HAACP ) systems throughout the food Chain from farmer to consumer , becomes important for producing quality milk products. So, Indian government should take proper measures in order to improve people skill in the quality and safety management systems so that Indian dairy sector Quality and Safety management systems will improve.
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