Food Processing Book
Food Processing Book
Food Processing Book
Rajkumar S. Adukia
B. Com. (Hons.), FCA, ACS, AICWA, LL.B, Dip.IFR (UK), MBA
Mobile +91 98200 61049/+91 93230 61049
Fax +91 22 26765579
Email rajkumarfca@gmail.com
Web: www.caaa.in
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Index
1. Introduction
1.1. Major areas
1.2. Benefits of food processing
1.3. Food processing in a nutshell
2. History of Food Processing
3. Global Food Processing Industry
4. Food Processing Industry in India
5. Government initiatives for the Food processing sector
5.1. Fiscal Incentives for the sector
6. List of laws applicable to the Food Processing Industry
7. Overview of Food Safety and Standards Act, 2006, Rules & Regulations
8. Overview of other laws applicable to the industry
9. Food Standards
10. Food Safety and Standards Authority of India
11. Regulatory Authorities
12. Organisations related to the industry
13. Important websites and addresses
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1. INTRODUCTION
The term 'food processing' is mainly defined as a process of value addition to the
agricultural or horticultural produce by various methods like grading, sorting and
packaging. In other words, it is a technique of manufacturing and preserving food
substances in an effective manner with a view to enhance their shelf life; improve
quality as well as make them functionally more useful. It covers spectrum of products
from sub-sectors comprising agriculture, horticulture, plantation, animal husbandry
and fisheries.
Food processing industry is one of the largest industry in India and is ranked 5th in
terms of production, consumption and export. Earlier, food processing was largely
confined to the food preservation, packaging and transportation, which mainly
involved salting, curdling, drying, pickling, etc. However, over the years, with
emerging new markets and technologies, the sector has widened its scope. It has
started producing many new items like ready-to-eat food, beverages, processed and
frozen fruit and vegetable products, marine and meat products, etc. It also includes
establishment of post-harvest infrastructure for processing of various food items like
cold storage facilities, food parks, packaging centres, value added centres, irradiation
facilities and modernised abattoir.
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The food processing sector comprises of two segments- Primary processed food and
Value added food. Primary segment comprises of packaged fruit and vegetables, milk,
flour, rice, spices etc and constitutes around 62% in value terms of the processed
foods. Value added segment includes processed fruits and vegetables, juices, jam &
jelly etc and holds around 38 % share in the total processed food.
In an emerging country like India, where growth with equity is a primary policy thrust,
the optimum development of the food processing sector will contribute significantly
in tackling several developmental concerns such as disguised unemployment in
agriculture, rural poverty, food security, food inflation, improved nutrition,
prevention of wastage of food etc. By serving as a bridge between agriculture and
manufacturing and by dealing with a basic need of all Indian citizens – the assured
supply of healthy and affordable food at all locations in the country, this sector has
the potential to be a major driver in India‘s growth in the coming years. In fact the
food processing sector has been growing faster than the agriculture sector.
The food processing industry includes a diverse group of companies involved in the
processing of products like fish, meat, milk, crops and water. It includes millions of
Small & Medium Enterprises (SMEs) worldwide and also some of the largest companies
in the world. Many of these companies deliver products directly to consumers, while
others specialize in Business-to-Business activities (ingredients, commodity markets).
Some companies directly participate in all areas of food production, from farming
activities through to final production and retail. Others are concentrated more at the
top end of the production chain or buy through commodity markets.
In fact, Food processing is one of the world‘s largest industries from the perspective
of the number of companies involved in the sector, as well as in terms of its total
economic value.
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Fruits & Vegetables
Fisheries
Whole Milk Powder, Skimmed milk powder, Condensed milk, Ice cream, Butter
and Ghee
Consumer Industry
Plantation
Benefits of food processing include toxin removal, preservation, easing marketing and
distribution tasks, and increasing food consistency. In addition, it increases seasonal
availability of many foods, enables transportation of delicate perishable foods across
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long distances and makes many kinds of foods safe to eat by de-activating spoilage
and pathogenic micro-organisms. Modern supermarkets would not exist without
modern food processing techniques, long voyages would not be possible and military
campaigns would be significantly more difficult and costly to execute. Processed
foods are usually less susceptible to early spoilage than fresh foods and are better
suited for long distance transportation from the source to the consumer. When they
were first introduced, some processed foods helped to alleviate food shortages and
improved the overall nutrition of populations as it made many new foods available to
the masses. Modern food processing also improves the quality of life for people with
allergies, diabetics, and other people who cannot consume some common food
elements. Food processing can also add extra nutrients such as vitamins.
The significant benefits for different stakeholders involved in food processing are:
Inputs
Production
Primary Processing
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Secondary Processing
Retailing
Primary Processing relates to conversion of raw agricultural produce, milk, meat and
fish into a commodity that is fit for human consumption. It involves steps such as
cleaning, grading, sorting, packing etc. Food Processing Industries usually deal with
higher levels of processing where new or higher value food products are
manufactured. From an analytical perspective food processing can be viewed as
different levels of processing – primary, secondary and tertiary. Hence processing
includes -
(b) Other Value-Added Processes: If there is significant value addition (increased shelf
life, shelled and ready for consumption etc.) such produce also comes under food
processing, even if it does not undergo manufacturing processes.
Fruits & Cleaning, Sorting, Slices, Pulps, Flakes, Ketchups, jam, juices,
vegetables Grading & Cutting Paste, Preserved & pickles, preserves,
Flavoured candies, chips, etc.
Grains & Sorting & Grading Flour, Broken, Rice Biscuits, noodles, flakes,
seeds Puff , Malt & Milling cakes, namkeen
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Oilseeds Sorting & Grading Oil Cakes Sunflower, groundnut,
mustard, soya, olive oil,
etc.
Beverages Sorting, bleaching Leaf, Dust & Powder Tea bags, flavoured
& Grading coffee, soft drinks,
alcoholic beverages
Meat & Sorting & Cut, Fried, Frozen & Ready-to-eat meals
Poultry Refrigerating Chilled
Marine Chilling & Freezing Cut, Fried, Frozen & Ready-to-eat meals
Products Chilled
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2. HISTORY OF FOOD PROCESSING
Food processing dates back to the prehistoric ages when crude processing
incorporated slaughtering, fermenting, sun drying, preserving with salt, and various
types of cooking (such as roasting, smoking, steaming, and oven baking). Salt-
preservation was especially common for foods that constituted warrior and sailors'
diets, until the introduction of canning methods. Evidence for the existence of these
methods can be found in the writings of the ancient Greek, Chaldean,
Egyptian and Roman civilizations as well as archaeological evidence from Europe,
North and South America and Asia. These tried and tested processing techniques
remained essentially the same until the advent of the industrial revolution. Examples
of ready-meals also exist from preindustrial revolution times such as the Cornish
pasty and Haggis. During ancient times and today these are considered processing
foods. Food processing has also helped create quick, nutritious meals to give to busy
families.
Modern food processing technology in the 19th and 20th century was largely
developed to serve military needs. In 1809 Nicolas Appert invented a vacuum bottling
technique that would supply food for French troops, and this contributed to the
development of tinning and then canning by Peter Durand in 1810. Although initially
expensive and somewhat hazardous due to the lead used in cans, canned goods would
later become a staple around the world. Pasteurization, discovered by Louis
Pasteur in 1862, was a significant advance in ensuring the micro-biological safety of
food.
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In the 20th century, World War II, the space race and the rising consumer society in
developed countries (including the United States) contributed to the growth of food
processing with such advances as spray drying, juice concentrates, freeze drying and
the introduction of artificial sweeteners, colouring agents, and preservatives such
as sodium benzoate. In the late 20th century products such as dried instant soups,
reconstituted fruits and juices, and self cooking meals such as MRE food ration were
developed.
In Western Europe and North America, the second half of the 20th century witnessed
a rise in the pursuit of convenience. Food processing companies marketed their
products especially towards middle-class working wives and mothers. Frozen foods
(often credited to Clarence Birdseye) found their success in sales of juice
concentrates and "TV dinners". Processors utilised the perceived value of time to
appeal to the postwar population, and this same appeal contributes to the success
of convenience foods today.
Food laws were among the earliest of enactments known to man. Governments over
many centuries have endeavored to provide for the safety and wholesomeness of
man‘s food by legal provisions and appropriate punitive action. Over the years also,
rude forms of fraud, such as adding worthless substances to food or extracting
valuable constituents from it, have been followed by sophisticated methods of
adulteration more difficult to detect. The birth of modern chemistry in the early
nineteenth century made possible the production of materials possessing properties
similar to normal foods which, when fraudulently used, did not readily attract the
attention of the unsuspecting purchaser. Later, better analytical methods were used
in food control work to detect adulterants. When scientists demonstrated that some
adulterants were dangerous to health, the aroused public demanded laws that would
both protect their health and prevent fraud.
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―Food Laws‖ in one form or another, such as religious tenets or prohibitions, were
inherent in all ancient civilizations and have come down to us from early times. It was
not until the late nineteenth and early twentieth century — with the urbanization of
societies and the depopulation of rural areas—that food laws, as understood today,
were prepared. This process was hastened by pressure that developed as the public
rebelled against the generally unhygienic conditions of the period.
Since the end of World War II, there have been major changes in the food industry,
and this development continues today; at the same time, our knowledge of the risks,
actual and potential, has considerably increased. Reorientation and further
consolidation of food laws have therefore become necessary to protect the health of
the consumer from the many new risks to which he has become exposed and over
which he has little personal control.
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3. GLOBAL FOOD PROCESSING INDUSTRY
The Global Processed Food Industry is valued at US $ 3.2 trillion and accounts for over
3/4th of global food sales. Despite the large size of the industry, only 6% of the
processed food is traded the world over as compared to bulk agricultural commodities
where 16% of produce is traded. Growth of the sector has been the highest in
developed economies, especially across Western Europe, North America, Japan and
Australia. USA is the single largest consumer of processed food and accounts for 31%
of global sales. The food processing sector has seen substantial growth in developing
economies with increase in GDP, per capita income and the resultant changes in
lifestyle. Organized retailing and availability of better processing technologies too
have contributed to the accelerated growth of the sector.
The food processing industry is characterized by intense competition, with the most
reliable firms performing well by focusing on efficiency in terms of fast processing
and distribution. The global economic recession had less effect on the food
processing industry than other industries due to rising demand for pre-packaged food.
The industry is becoming increasingly automated, and is therefore seeing labour costs
decline. The advantages of food processing include greater food consistency, longer
shelf life, removal of toxins, reduction of food borne diseases and cheaper food.
The global fresh meat market is expected to produce 300 million tons by 2015. A
rising global population and extensive urbanization are driving forces for the market.
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Asia-Pacific demand is growing in tandem with disposable incomes and meat
consumption.
Asia-Pacific leads the food processing industry in terms of market share. Market
growth in countries in Eastern Europe and Asia-Pacific continues as developing
countries enjoy a more favourable economic climate, with larger disposable incomes
and improved living standards. Demand for food that is light on preparation time
continues to grow in developed countries. Germany, The US, France and Austria are
among the major exporters of food processing machinery while the US, the UK,
Germany and France lead in importing.
China‘s processed food industry is expected to continue showing close to 35% yearly
growth from 2010 through 2013, mainly due to higher standards of living and improved
economic conditions. China‘s processed food market was left relatively unscathed by
the economic downturn. Growth will continue to be lead by meat processing, with a
forecast yearly growth of more than 15% for the next few years. Other leading food
market segments in China are dairy products and ready meals. Growth will likely
continue as China‘s 25% rate of processed food production catches up with the
average 80% rate in developed nations such as the US.
The main driving force behind the global food industry is technological innovation,
which concentrates on satisfying consumer demand for more tastes and easy-to-
prepare foods. Companies are focusing on innovation to boost profits, with 60% of
large companies and over 40% of medium sized enterprises investing in process and
product innovation. Over 99% of the EU food and beverage industry is comprised of
small-and-medium-sized enterprises. Danish, French and Greek food processing
companies dedicate a sizeable part of their profit to research and development, while
other countries such as Austria, Hungary and the Czech Republic lag further behind.
The main aims of research and development within the food processing industry are
better quality food, enhanced taste, cheaper prices and greater convenience. Other
industries recruited in the process include nanotechnology, biotechnology and other
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advanced information technology fields. Companies cut production costs by: reducing
waste; employing effective manufacturing techniques used in other industries;
optimizing automation to cut back on labor costs; and finding ways to cut down on
input materials such as energy.
The Indian food processing industry stands at $135 billion and is estimated to grow
with a CAGR of 10 per cent to reach $200 billion by 2015. The food processing industry
contributed 7% to India‘s GDP. The industry employs around 13 million workers
directly and about 35 million indirectly.
The industry is segmented into sectors namely, milk and allied products (dairy), meat
and poultry, seafood, bakery and confectionery, fruit and vegetables, grain, pulses
and oilseeds (staple) products, alcoholic and non-alcoholic products (beverages), and
packaged foods. The classification is not distinct as many processed products overlap
different segments.
India ranks No. 1 in the world in production of Milk (Fresh, whole, buffalo), Pulses,
Ginger, Chick Peas, Bananas Guavas, Papayas and Mangoes. Further, India ranks No. 2
in the world in production of Rice, Wheat, Potatoes, Garlic, Cashew Nuts,
Groundnuts, Dry Onion, Green Peas, Pumpkins, Gourds, and cauliflowers. With the
huge production base India can easily become the leading food supplier to the world
and at the same time serving its vast growing domestic market with over a billion
people.
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Investments in the registered food processing units have been growing in the recent
years. In 2007-08 the fixed capital of registered food processing units have increased
by 18.93% over the previous year.
Food processing industry in India is increasingly seen as a potential source for driving
rural economy as it brings synergy between industry and agriculture. A developed
food processing industry is expected to lead increase in farm gate prices translating
into increased rural incomes, reduce wastages, ensure value addition, promote crop
diversification, generate employment opportunities as well as export earnings. With
such a large and diversified production base coupled with low manpower cost and
modern technology, the Indian food processing sector is poised for growth, if the
advantages are leveraged optimally.
The growth is driven by the fact that the central government has given a priority
status to all agro-processing businesses. Government incentives in the field of mega
food parks, cold chain and exports benefits are also playing an important role in
promoting food processing.
The major challenges are investments at different points of the supply and value
chain, proper research, farm and lab connectivity, upgradation of technology,
increase in farm holding, skill and manpower training, backend and front-end
integration and cold chain integration.
The opportunities in the food processing industry are vast. However, there is a need
to improve technology and productivity to be competitive globally. As the economy
grows, the food processing industry will offer bigger opportunities to the new as well
as the existing players.
India has the second largest arable land of 161 million hectares and has the highest
acreage under irrigation. Next to China, India ranks second largest food producer in
the world and has the potential to immerge the biggest with its food and agricultural
sector. India accounts for less than 1.5% of international food trade despite being one
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of the world‘s major food producers, which indicates huge potential for both investors
and exporters.
Advantage India
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Mega Food parks
Logistics and cold chain infrastructure
Food safety Management Systems
Machinery and packaging
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5. GOVERNMENT INITIATIVES FOR THE FOOD PROCESSING SECTOR
In order to ensure that the Food processing sector gets the stimulus it deserves,
Ministry of Food Processing Industries (MOFPI) has been implementing a number of
schemes for Infrastructure development, technology up-gradation & modernization,
human resources development and R&D. The following schemes are currently under
implementation:
One of the major factors hindering the progress of agro/food processing in the
country is inadequate infrastructure. In order to address the problems of
infrastructural constraints in the food-processing sector, the Ministry of Food
Processing Industries has been implementing a Scheme for Infrastructure
Development since 11th Plan which includes the following components:
o Mega Food Park - The Scheme of Mega Food Parks (MFP) aims at
providing a mechanism to bring together farmers, processors and
retailers and link agricultural production to the market so as to ensure
maximizing value addition, minimizing wastages, increasing farmers‘
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income and creating employment opportunities in rural areas. Mega Food
Park envisages a well-defined agri/ horticultural-processing zone
containing state-of-the-art processing facilities with support
infrastructure and well-established supply chain.
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exports besides discouraging unauthorized slaughtering. Accordingly, a
plan scheme for establishing new abattoirs & modernization of the old
abattoirs was started in 2009.
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better monitoring of implementation and improved the viability of food
processing units. During 11th plan, 3239 units were assisted under the scheme.
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o Entrepreneurship Development Program (EDP) - The Ministry has been
providing Financial Assistance for conducting Entrepreneurship
Development Program (EDP) in food processing through Central/State
Governments Organizations, R & D Institutes, Universities, SNAs and
NGOs. The objective of EDP is to enable trainees to establish
commercially viable enterprises in food processing sector by providing
them basic knowledge of technology, project formulation, management,
instilling confidence and motivating them to join the sector as an
entrepreneur. The prospective entrepreneur are also made aware of the
opportunities, supported for availing credit facilities from
banks/financial institutions and other services from the development
organizations. Each group of trainees consist of not be less than 25 with
adequate representation from the SC/ST/women & minority
communities. Maximum financial assistance of Rs. 2.00 lakh per EDP is
provided to the institutions. The duration of the EDP is 6 weeks with a
follow-up phase of 12 months.
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iv. Scheme for setting up/ up-gradation of Quality Assurance/ Food Testing
laboratory/ R&D and promotional Activities
Quality and food safety have become competitive edge in the global market for
the enterprises producing and marketing foods products. Therefore, the
installation of ISO 14000, ISO 22000 Quality Management Systems and Hazard
Analysis and Critical Control Points (HACCP) based food safety system is
extremely desirable in view of the changing scenario of food market in the
international trade. With a view to motivating the food processing industries
for adoption/ implementation of food safety and quality assurance mechanisms
such as Total Quality Management (TQM) including, ISO 14000, ISO 22000,
HACCP, Good Manufacturing Practices (GMP), Good Hygienic Practices (GHP)
and prepare them to face the global competition in post WTO era, Ministry of
Food Processing Industries is implementing a Plan Scheme for Setting up/ Up-
gradation of Quality Control/ Food Testing Laboratory/ R &D and Promotional
Activity. The scheme has the following components:
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grant amount as professional fees for Programme Management Agency
(PMA) engaged for providing advisory and implementation services to
Food testing/ Quality Control Laboratories and follow up actions. When
the Ministry establishes/ sponsors such food testing laboratories, there is
no ceiling to financial assistance and the amount to be approved will be
decided on case to case basis. During 2012-13, the implementation of
the Scheme has been transferred to Indian Council of Agricultural
Research, (ICAR) New Delhi.
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of wastage & spoilage of food and food products, development of
technologies & methods for preservation of food products, identification
of new eco-friendly & better packaging material, development &
standardization of packaging technologies for food products,
fortification of staple food items to improve nutritional quality, change
& diversification in food habits, preferences and improvement in
consumer perception towards Food Safety, designing/ building of proto-
type equipments, standardization of the processing of preparation/
handling/ packaging/ storage/ transport/ distribution with emphasis on
food safety. It is expected to benefit all stakeholders including domestic
industry, the consumers, the exporters, entrepreneurs, micro, small and
medium enterprises, existing academic & research institutions, food-
testing laboratories, food standards setting bodies and Government.
Under this component, Central / State Government organization / IITs/
Universities etc. are supported by way of financial assistance to the
extent of 100% of the equipment cost / consumables / JRF / SRF. The
present level of assistance to private institutions includes grant in aid of
50% for equipment cost only. For the year 2012-13, the implementation
of the Scheme has been transferred to Science and Engineering Research
Board (SERB) New Delhi.
o Promotional activities –
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50% of the cost subject to a maximum of Rs. 3 lakh for organizing
seminars/ workshops and conducting studies/surveys etc. When the
Ministry sponsors/co-sponsors or commissions such events, the above
financial ceilings are not applicable. The Ministry on its own or in close
association with APEDA, CFTRI, Industry Associations etc. participates in
national/ international exhibitions/ fairs for disseminating information
regarding food processing industry, familiarizing the existing and
prospective entrepreneurs with modern techniques of production &
packaging, development of market, popularization of products and
promoting investment with focus on Food Processing Industries. The
Ministry Sponsors/ co-sponsors event organized by other organizations
provided at least 50% coverage is given to food processing sector.
Assistance of 25% of the actual rental for the space taken by the
Government/ Government organizations in fairs/ exhibitions abroad is
also provided subject to maximum of Rs. 20.00 lakh in a year. Assistance
is also provided for organizing study tours for exposure of various aspects
of Food Processing. The Promotional Activities component of the scheme
have since been transferred to National Mission on Food Processing for
implementation during the 12th plan.
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o Strengthening of Indian Institute of Crop Processing Technology (IICPT)
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NMFP. Flexibility will also be given to States to add components and deviate from
central guidelines subject to approval from the National Food Processing Development
Council (NFPDC).
The major Programme/Schemes to be covered under NMFP during 2012-13 are:
(i) Scheme for Technology Up-gradation / Establishment /modernisation of
Food Processing Industries.
(ii) Scheme for Cold Chain, Value Addition and Preservation Infrastructure
for Non Horticultural Products.
(iii) Scheme for Modernisation of Abattoirs (no targets for 2012-13 &
2013-14)
(iv) Scheme for Human Resource Development (HRD)
Creation of Infrastructure Facilities for Running Degree/ Diploma
/ Certificate Courses in Food Processing Technology.
Entrepreneurship Development Programme (EDP)
Food Processing Training Centre (FPTC)
Scheme for Promotional Activities
o Organizing Seminars/Workshops
o Conducting Studies/Surveys
o Support to Exhibitions/Fairs
o Advertisement & Publicity
Income Tax
Under sub-section (11A) of section 80 IB of the Income Tax Act, 1961 a deduction from
profits up to specified amounts [100% for the first 5 assessment years and thereafter,
25%(30% in the case of a company) for another 5 assessment years] is allowed in the
case of an undertaking deriving profit from the business of processing, preservation
and packaging of fruits or vegetables or from the integrated business of handling,
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storage and transportation of food grains subject to specified conditions, if such
undertaking begins to operate such business on or after the 1st day of April,2001.
With a view to encouraging preserving perishable food items like milk, poultry and
meat, the Finance (No.2) Act, 2009 amended subsection (11A) of section 80 IB to also
provide tax holiday in respect of the business of processing, preserving and packaging
of meat and meat products and poultry, marine and dairy products for units which
begin to operate such business on or after 01.04.2001.
Further, Finance (No.2) Act, 2009 also extended an investment-linked tax incentive by
way of insertion of a new section 35AD in the income tax Act, 1961 to the business of
setting up and operating cold chain facilities for specified products and to the
business of setting up and operating warehousing facilities for storage of agricultural
produce, commencing operations on or after 01.04.2009. As per this section 100%
deduction would be allowed in respect of the whole of any expenditure of capital
nature (other than on land, goodwill or financial instruments) incurred, wholly and
exclusively, for the purpose of the specified business during the previous year in
which such expenditure is incurred subject to specified conditions in order to give an
impetus to the setting up of food processing units.
To further encourage R & D across all sectors of the economy in the Union Budget
2011-12, weighted deduction on expenditure incurred on in house R&D has been
enhanced from 150% to 200%, Further, weighted deduction on payments made to
National Laboratories, Research Organisations, Colleges, Universities and other
institutions for scientific research enhanced from 125% to 175%.
While some processed foods items attract Nil Excise Duty such as condensed milk,
Compounded asafoetida, soya protein etc., others attract a concessional rate of 1%
subject to non-availment of Cenvat credit or 5% with Cenvat credit and 10% ad
valorem.
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Full exemption from excise duty has been extended to:
• Specified goods intended to be used for the installation of a cold storage, cold
room or refrigerated vehicle, for the preservation, storage, transport or
processing of agriculture, apiary, horticulture, dairy poultry, aquatic and
marine product and meat.
• Conveyer belt system used in cold storage facilities for the preservation,
storage, transport or processing agriculture, apiary, horticulture, dairy,
poultry, aquatic and marine produce and meat, Mandis and warehouses.
Central Excise duty is Nil by Tariff for Machines for cleaning, sorting or grading seeds,
grain or dried leguminous vegetables; machinery used in milling industry (flour
milling, rice milling etc.) or for the working of cereals or dried leguminous
vegetables.
Full exemption from excise duty is granted to trailers and semi-trailers used in
agriculture.
Customs duty
• Projects for the installation of mechanized food grain handling systems and
pallet racking systems in ‗mandis‘ and warehouses for food grains and sugar
• Cold storage, cold room (including for farm level pre-cooling) or industrial
projects for preservation, storage or processing of agricultural, apiary,
horticultural, dairy, poultry, aquatic and marine produce and meat.
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Consequently all goods imported as part of the project imports, irrespective of their
tariff classification, would be entitled to uniform assessment at concessional basic
customs duty of 5%. There is full exemption from customs duty to refrigeration units
required for the manufacture of refrigerated vans or trucks. Concessional customs
duty of 5 per cent is granted to specified agricultural machinery not manufactured in
India.
Service Tax
The following are exempt from the whole of service tax leviable thereon vide mega
exemption notification No.25 of 2012 -
Most of the processed food items have been exempted from the purview of licensing
under the Act, except items reserved for small scale sector and alcoholic beverages.
Foreign Direct Investment (FDI) is permissible for all the processed food products
under 100% automatic route (except for items reserved for Micro, Small & Medium
Enterprises, where FDI is permissible under automatic route up to 24%), subject to
applicable laws/regulations/securities and other conditions. FDI under automatic
route is approved at Reserve Bank of India (RBI) level and it does not require approval
of Foreign Investment Promotion Board (FIPB).
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6. LIST OF LAWS APPLICABLE TO THE FOOD PROCESSING INDUSTRY
A. FOOD LAWS
d. Food safety and standards (Food product standards and Food Additives)
regulation, 2011
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1) The Legal Metrology Act, 2009
C. FISCAL LAWS
D. LABOUR LAWS
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10) Industrial Disputes Act, 1947
19) Labour Laws (Exemption from Furnishing Returns & Maintaining Registers
by Certain Establishments) Act, 1988
F. ENVIRONMENTAL LAWS
1) The Environment (Protection) Act, 1986 & notifications issued under the
Act
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2) The Environment (Protection) Rules, 1986
13) The Water (Prevention and Control of Pollution) Cess Act, 1977
16) Air (Prevention and Control of Pollution) Union Territories Rules, 1983
19) The Indian Wildlife Protection Act, 1972 and The Wildlife (Protection)
Rules, 1995
G. LOCAL LAWS
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1) Municipalities Act of respective states
H. FOOD STANDARDS
1) AGMARK
3) Codex
4) HACCP
5) ISO-9000
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7. OVERVIEW OF FOOD SAFETY AND STANDARDS ACT, 2006, RULES &
REGULATIONS
The Food Safety and Standards Act received the assent of the President on 23rd
August, 2006 and came into effect on 5th August, 2011. All the provisions of the Act,
have come into force, except Sec.22 that deals with genetically modified foods,
organic food, functional foods, proprietary foods etc..
The Food Safety and Standards Act received the assent of the President on 23rd
August, 2006 and came into effect on 5th August, 2011. The Act officially repeals the
regulatory framework established by the previously existing eight food laws by
Notification F.No.P-15025/41/2011-DFQC, issued by the Ministry of Health and Family
Welfare on August 4, 2011, consolidating them into the Food Safety and Standards
Rules and Regulations 2011 under a single regulator - The Food Safety and Standards
Authority of India.
On May 5, 2011, the GOI Ministry of Health and Family Welfare published the final
Food Safety and Standards Rules, 2011 vide Notification No.G.S.R.362 (E) in the Indian
official gazette. As stated in the notification, these rules came into force on August 5,
2011. These rules specify enforcement mechanisms, sampling techniques, and other
legal aspects for implementing Section 91 of the Food Safety and Standards Act 2006.
On August 1, 2011, the Ministry of Health and Family Welfare published the final Food
Safety and Standards Regulations, 2011 vide Notification No. F.No. 2-15015/30/2010
in the Indian official gazette. The Food Safety and Standards Regulations, 2011, came
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into force on August 5, 2011. These regulations contain labelling requirements and
standards for packaged food, permitted food additives, colours, microbiological
requirements, etc.
The implementation of the Food Safety and Standards Act, 2006 formally repeals the
following laws –
vi. The Solvent Extracted Oil, De-Oiled Meal and Edible Flour (Control) Order,
1967,
viii. Any other order issued under the Essential Commodities Act, 1955 relating to
food.
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Authority, selection of Chairpersons and member of the Authority, function of
Chief Executive Officer, power of Central government to make rules and
powers to remove difficulties.
Section 90 relating to transfer of existing employees of central government
agencies governing various food related Act, /Orders to Food Authority,
invoked vide gazette notification dated 28.08.2008.
Food Safety and Standards Authority of India (FSSAI) established under Section
4 of the Act vide notification dated 5th September, 2008.
Chief Executive Officer of Food Authority was appointed on 30.09.2008.
Various sections (16-18,81-86,92 and 93) were invoked on 18.11.2008 and other
sections (11-15) relating to Central Advisory Committee, Scientific Committee,
Scientific Panel etc. were invoked vide notification dated 09.03.2008.
29.06.2009 - Section 99 notified.
31.07.2009 - Section 36-47 notified.
29.07.2010 - all remaining sections have been notified except section 22.
05.05.2011 - Rules notified
05.08.2011 - Regulations notified
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also by setting standards which, when effectively enforced by Commissioners in the
States would result in increased consumer welfare.
The Act is applicable to anyone who handles, processes, manufactures, sells, serves,
stores, distributes, transports or imports food.
The Act consists of 101 sections under 12 chapters and 2 schedules.
Chapter II of the Act, Secs.4 to 17, deals with the Food Safety and Standards Authority
of India.
The Food Authority consists of a Chairperson and 22 members out of which one-third
should be women, namely, 7 ex-officio members represent the Ministries or
Departments of Central Government viz. Agriculture, Commerce, Consumer Affairs,
Food Processing, Health, Legislative Affairs, Small Scale Industries; two
representatives from food industry; two representative from consumer organizations;
three eminent food technologists or scientists; five members to represent the States
and the Union Territories on rotation basis; two persons to represent farmers‘
organizations and one person to represent retailers‘ organizations. The head office of
the authority is at Delhi.
The Chairperson and the members other than ex officio members of the Food
Authority can hold office for a term of three years and eligible for reappointment for
a further period of three years subject to a maximum age of 65 years for Chairperson
and 62 years for member.
The mandate assigned to the Food Authority is laying down science based standards
for articles of food and to regulate their manufacture, storage, distribution, sale and
import, to ensure availability of safe and wholesome food for human consumption.
General provisions with regard to articles of food are covered under Chapter IV –
Secs.19 to 24 of the FSS Act, 2006.
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No article of food should contain any food additive or processing aid unless it is
in accordance with the provisions of the Act and Food Safety and Standards
(Food Products Standards and Food Additives) Regulations, 2011.
o ―Food additive‖ means any substance not normally consumed as a food
by itself or used as a typical ingredient of the food, whether or not it has
nutritive value, the intentional addition of which to food for a
technological (including organoleptic) purpose in the manufacture,
processing, preparation, treatment, packing, packaging, transport or
holding of such food results, or may be reasonably expected to result
(directly or indirectly), in it or its by-products becoming a component of
or otherwise affecting the characteristics of such food but does not
include ―contaminants‖ or substances added to food for maintaining or
improving nutritional qualities. (Sec.3(k) of the FSS Act)
o ―Processing aid‖ means any substance or material, not including
apparatus or utensils, and not consumed as a food ingredient by itself,
used in the processing of raw materials, foods or its ingredients to fulfill
a certain technological purpose during treatment or processing and
which may result in the non-intentional but unavoidable presence of
residues or derivatives in the final product.
No article of food should contain any contaminant, naturally occurring toxic
substances or toxins or hormone or heavy metals in excess of such quantities as
may be specified by the Food Safety and Standards (Contaminants, toxins and
Residues) Regulations, 2011.
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No person should manufacture, distribute, sell or expose for sale or despatch or
deliver to any agent or broker for the purpose of sale, any packaged food
products which are not marked and labelled in the manner as specified by the
Food Safety and Standards (Packaging and labelling) Regulations, 2011. Every
food business operator shall ensure that the labelling and presentation of food,
including their shape, appearance or packaging, the packaging materials used,
the manner in which they are arranged and the setting in which they are
displayed, and the information which is made available about them through
whatever medium, does not mislead consumers.
No advertisement should be made of any food which is misleading or deceiving
or contravenes the provisions of this Act, the rules and regulations made
thereunder.
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unsafe; which is misbranded or sub-standard or contains extraneous
matter; for which a licence is required, except in accordance with the
conditions of the licence; which is for the time being prohibited by the
Food Authority or the Central Government or the State Government in
the interest of public health.
o No food business operator should employ any person who is suffering
from infectious, contagious or loathsome disease.
o No food business operator should sell or offer for sale any article of food
to any vendor unless he also gives a guarantee in writing about the
nature and quality of such article to the vendor.
o Where any food which is unsafe is part of a batch, lot or consignment of
food of the same class or description, it will be presumed that all the
food in that batch, lot or consignment is also unsafe.
o General hygienic and sanitary practices to be followed by food business
operators are covered under Schedule-4 of the licensing regulations.
Liability of the manufacturers, packers, wholesalers, distributors and sellers
o The wholesaler or distributor will be liable under this Act for any article
of food which is supplied after the date of its expiry; Stored or supplied
in violation of the safety instructions of the manufacturer; Unsafe or
misbranded; Unidentifiable of manufacturer from whom the article of
food have been received; Stored or handled or kept in violation of the
provisions of the Act; received by him with knowledge of being unsafe.
o The seller will be liable for any article of food which is sold after the
date of its expiry; handled or kept in unhygienic conditions; misbranded;
unidentifiable of the manufacturer or the distributors from whom such
articles of food were received or received by him with knowledge of
being unsafe.
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Licensing and registration is covered under Sec.31 of the Act and the Food Safety and
Standards (Licensing and Registration of Food Businesses) Regulations, 2011.
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the completed application, a license is not issued within 60 days or the applicant has
not received any intimation of inadequacy or inspection report indicating defects
from the concerned Licensing Authority.
A Registration or license granted shall be valid and subsisting, unless otherwise
specified, for a period of 1 to 5 years as chosen by the Food Business Operator, from
the date of issue of registration or license subject to remittance of fee applicable for
the period and compliance with all conditions of license. Any application for the
renewal of a registration or license should be made in Form A or B of Schedule 2, as
the case may be, not later than 30 days prior to the expiry date indicated in the
license. The Registration or License shall continue to be in force till such time that
the orders are passed on the renewal application which in no case shall be beyond 30
days from the date of expiry of registration or license.
License for commencing or carrying on food business, which falls under Schedule 1 of
the licensing regulations, should be granted by the Central Licensing Authority.
License for commencing or carrying on food business which are not covered under
Schedule 1 will be granted by the concerned State/UT‘s Licensing Authority.
List of documents to filed along with the application for license to the Central / State
Licensing Authority –
1. Form-B duly completed and signed (in duplicate) by the proprietor/ partner or
the authorised signatory (mandatory for all).
2. Blueprint/layout plan of the processing unit showing the dimensions in
metres/square metres and operation-wise area allocation (mandatory for
manufacturing and processing units only).
3. List of Directors with full address and contact details (mandatory for companies
only)
4. Name and List of Equipments and Machinery along with the number, installed
capacity and horse power used (mandatory for manufacturing and processing
units only).
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5. Photo ID and address proof issued by Government authority of
Proprietor/Partner/Director(s)/Authorized Signatory. (optional)
6. List of food category desired to be manufactured. (In case of manufacturers).
7. Authority letter with name and address of responsible person nominated by the
manufacturer along with alternative responsible person indicating the powers
vested with them viz. assisting the officers in inspections, collection of
samples, packing & dispatch. (Mandatory for manufacturing and processors).
8. Analysis report (Chemical & Bacteriological) of water to be used as ingredient
in food from a recognized/ public health laboratory to confirm the portability
(mandatory only for manufacturing and processing units only).
9. Proof of possession of premises. (Sale deed/ Rent agreement/ Electricity bill,
etc.) (optional).
10. Partnership Deed/Affidavit/Memorandum & Articles of Association towards the
constitution of the firm. (optional).
11. Copy of certificate obtained under Coop Act - 1861/Multi State Coop Act - 2002
in case of Cooperatives. (wherever applicable).
12. NOC from manufacturer (mandatory for Re-labellers and Re-packers)
13. Food Safety Management System plan or certificate (if any).
14. Source of milk or procurement plan for milk including location of milk
collection centre‘s etc. in case of Milk and Milk Products processing
units.(wherever applicable).
15. Source of raw material for meat and meat processing plants. (wherever
applicable).
16. Pesticide residues report of water in case of units manufacturing packaged
drinking water, packaged Mineral water and/or carbonated water from a
recognized/ public health
17. Recall plan wherever applicable, with details on whom the product is
distributed. (Optional).
18. NOCs from Municipality or local body. (optional).
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List of food business falling under the purview of Central Licensing Authority -
I. Dairy units including milk chilling units equipped to handle or process more than
50,000 litres of liquid milk/day or 2500 MT of milk solid per annum.
II. Vegetable oil processing units and units producing vegetable oil by the process of
solvent extraction and refineries including oil expeller unit having installed capacity
more than 2 MT per day.
III. All slaughter houses equipped to slaughter more than 50 large animals or 150 or
more small animals including sheep and goats or 1000 or more poultry birds per day.
IV. Meat processing units equipped to handle or process more than 500 kg of meat per
day or 150 MT per annum.
V. All food processing units other than mentioned under (I) to (IV) including
relabellers and repackers having installed capacity more than 2 MT/day except grains,
cereals and pulses milling units.
VI. 100 % Export Oriented Units.
VII. All Importers importing food items including food ingredients and additives for
commercial use.
VIII. All food business operators manufacturing any article of food containing
ingredients or substances or using technologies or processes or combination thereof
whose safety has not been established through these regulations or which do not have
a history of safe use or food containing ingredients which are being introduced for the
first time into the country.
IX. Food Business Operator operating in two or more states.
X. Food catering services in establishments and units under Central government
Agencies like Railways, Air and airport, Seaport, Defence etc.
Returns
Every licensee should on or before 31st May of each year, submit a return
electronically or in physical form in ‗Form D-1‘ provided in Schedule 2 of the licensing
Regulations to the Licensing Authority in respect of each class of food products
handled by him during the previous financial year.
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Every licensee engaged in manufacturing of milk and/or milk products should file half
yearly returns for the periods 1st April to 30th September and 1st October to 31st
March of every financial year in form D-2, as provided in Schedule-2 of the licensing
regulations. Such returns should be filed within a month from the end of the period.
A separate return should be filed for every license issued under the Regulations,
irrespective of whether the same Food Business Operator holds more than one license.
Any delay in filing return beyond 31st May of each year will attract a penalty of Rs 100
per day of delay.
Penalties
Nature of offence Penalty
Selling food not of the nature or penalty not exceeding five lakh rupees
substance or quality demanded
Manufactures for sale or stores or sells or penalty which may extend to five lakh
distributes or imports any article of food rupees
for human consumption which is sub-
standard
Misbranded food penalty which may extend to three lakh
rupees
Misleading advertisement penalty which may extend to ten lakh
rupees
Food containing extraneous matter penalty which may extend to one lakh
rupees
Failure to comply with the directions of penalty which may extend to two
Food Safety Officer lakh rupees
Unhygienic or unsanitary processing or penalty which may extend to one lakh
manufacturing of food rupees
Imports or manufactures for sale, or where such adulterant is not
stores, sells or distribute any adulterant injurious to health, penalty not
exceeding two lakh rupees;
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where such adulterant is injurious
to health, penalty not exceeding
ten lakh rupees
No specific penalty is provided penalty which may extend to two lakh
rupees
Unsafe food where such failure or
contravention does not result in
injury, with imprisonment for a
term which may extend to six
months and also with fine which
may extend to one lakh rupees;
where such failure or
contravention results in a non-
grievous injury, with imprisonment
for a term which may extend to
one year and also with fine which
may extend to three lakh rupees;
where such failure or
contravention results in a grievous
injury, with imprisonment for a
term which may extend to six years
and also with fine which may
extend to five lakh rupees;
where such failure or
contravention results in death,
with imprisonment for a term
which shall not be less than seven
years but which may extend to
imprisonment for life and also with
fine which shall not be less than
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ten lakh Rupees.
Interfering with seized items Imprisonment for a term which may
extend to six months and also with fine
which may extend to two lakh rupees.
False information Imprisonment for a term which may
extend to three months and also with fine
which may extend to two lakh rupees.
Obstructing or impersonating a Food Imprisonment for a term which may
Safety Officer extend to three months and also with fine
which may extend to one lakh rupees.
Manufactures or distributes or sells or A sum not less than five lakh rupees in
imports any article of food causing injury case of death; not exceeding three lakh
to the consumer or his death rupees in case of grievous injury; and not
exceeding one lakh rupees, in all other
cases of injury.
a) Registration/Licensing of the Food Vendors: All the Food Vendors that have
been contracted by the company need to be Registered/Licensed under the
new FSS Act. Any Vendor that operates only in one state needs to get
registered with the FDA of the respective State, and for the Vendors who
operate in more than one state need to register with the Central Food Safety
Authority – FSSAI.
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Management System Plan. This plan ensures quality monitoring of the food
produced across the entire Food Manufacturing Process. This plan needs to be
reviewed annually and its implementation needs to be monitored.
d) Potable Water being used for cooking: All the Food Manufacturing bodies and
Food Serving Canteens need to get the water from their water source tested
for ―Potability‖. This would ensure that the water being used for cooking is
drinkable and is safe for Human Consumption.
The rules deal with the enforcement structure of the Food Safety and Standards
Authority and the procedures to be followed by the authorities. The procedure for
adjudication and appeal has also been enumerated.
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which falls under Schedule 1 of this regulation. The State/UT‘s Licensing
Authority is the licensing authority for food business not covered under
Schedule 1.
ii. Food Safety and standards (Packaging and Labelling) regulation, 2011
No person should manufacture, distribute, sell or expose for sale or dispatch or
deliver to any agent or broker for the purpose of sale, any packaged food
products which are not marked and labeled as per the Regulations.
iii. Food safety and standards (Food product standards and Food Additives)
regulation, 2011
No article of food should contain any food additive or processing aid except in
accordance with the Regulations.
iv. Food safety and standards (Prohibition and Restriction on sales) regulation,
2011
The regulation provides for prohibition of sale of certain admixtures;
restriction on use of certain ingredients; prohibition and restriction on sale of
certain products and restrictions relating to conditions for sale
v. Food Safety and Standards (Contaminants, Toxins and Residues) regulation,
2011
No article of food should contain any contaminant, naturally occurring toxic
substances or toxins or hormone or heavy metals in excess of such quantities as
may be specified under the Regulations.
vi. Food Safety and Standards (Laboratory and sampling analysis) regulation,
2011
The regulation provides for recognition and accreditation of laboratories,
research institutions and referral food laboratory; notified laboratories for
Import and procedure for sampling.
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8. OVERVIEW OF OTHER LAWS APPLICABLE TO THE INDUSTRY
Legal Metrology‖ means that part of metrology which treats units of weighment and
measurement, methods of weighment and measurement and weighing and measuring
instruments, in relation to the mandatory technical and legal requirements which
have the object of ensuring public guarantee from the point of view of security and
accuracy of the weighments and measurements. (Sec.2(g) of Legal Metrology Act,
2009)
The Legal Metrology Act, 2009 (Act 1 of 2010) repeals and replaces the Standard of
Weights and Measures Act, 1976 and the Standards of weights and Measures
(Enforcement) Act, 1985. The Act has come into force from 1st April, 2011.
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(h) Penalty for offences and compounding of offences;
(i) Appeal against decision of various authorities; and
(j) Empowering the Central Government to make rules for enforcing the
provisions of the enactment.
Any weight or measure which conforms to the standard unit of such weight or
measure (based on metric system or prescribed derived units) and also conforms to
the provisions of section 7 (i.e. the physical characteristics, configuration,
construction details, materials, equipment, performance, tolerances, period of re-
verification, methods or procedures of tests shall be such as may be prescribed) as
are applicable to it will be the standard weight or measure. Every non-standard or un-
verified weight or measure is liable to seizure and forfeiture.
The Legal Metrology (Packaged Commodities) Rules, 2011 has been framed under
section 52(2)(j) and (q) of the Act and has been amended on several counts, the latest
being made under GSR 4257(E) dated 05.06.2012.
Section 2(l) of the Legal Metrology Act, 2009 defines "pre-packaged commodity" as a
commodity which without the purchaser being present is placed in a package of
whatever nature, whether sealed or not, so that the product contained therein has a
pre-determined quantity.
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fast food items packed by restaurant/hotel
The items mentioned under the Second Schedule of the Packaged Commodities Rules
will have to be packed in quantities specified in that schedule. Baby food, weaning
food, biscuits, bread, butter, coffee, tea, cereals, pulses, milk powder, salt, edible
oils, rice and wheat flour, aerated soft drink, drinking water etc. are among other
products that manufacturers are required to pack and sell in standard sizes.
2) Environmental laws
Environmental law is a complex and interlocking body of statutes, common law,
treaties, conventions, regulations and policies which, very broadly, operate to
regulate the interaction of humanity and the rest of the biophysical or natural
environment, toward the purpose of reducing or minimizing the impacts of human
activity, both on the natural environment for its own sake, and on humanity itself.
The Indian constitution is amongst the few in the world that contains specific
provisions on environment protection. In the Constitution of India it is clearly stated
that it is the duty of the state to protect and improve the environment and to
safeguard the forests and wildlife of the country.
The Ministry of Environment and Forests and the pollution control boards (CPCB i.e.
Central Pollution Control Board and SPCBs i.e. State Pollution Control Boards)
together form the regulatory and administrative core of the sector.
This Act is an umbrella legislation designed to provide a framework for the co-
ordination of central and state authorities established under the Water (Prevention
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and Control) Act, 1974 and Air (Prevention and Control) Act, 1981. Under this Act, the
central government is empowered to take measures necessary to protect and improve
the quality of the environment by setting standards for emissions and discharges;
regulating the location of industries; management of hazardous wastes, and
protection of public health and welfare. Several notifications have been issued by the
Central Government under this Act for protection of ecologically-sensitive areas or
issues guidelines for matters under the Act. Some of the important notifications
issued under the Environment Protection Act, 1986 are:
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restrictions on the location of industries and the carrying on
processes and operations in different areas.
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providing transparency and a greater role to local
communities.
This Rules provide the procedure to control the generation, collection, treatment,
import, storage, and handling of hazardous wastes. Under this Rule, any Unit that
generates, collects, treats, imports, stores or handles hazardous wastes should obtain
authorisation, maintain necessary records and submit returns.
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and giving relief and compensation for damages to persons and property and for
matters connected therewith or incidental thereto.
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The Indian Wildlife Protection Act, 1972 and The Wildlife (Protection) Rules, 1995
It provides for the protection of birds and animals and for all matters that are
connected to it whether it be their habitat or the waterhole or the forests that
sustain them. There is a blanket ban on carrying out any industrial activity inside
these protected areas. It provides for authorities to administer and implement the
Act; regulate the hunting of wild animals; protect specified plants, sanctuaries,
national parks and closed areas; restrict trade or commerce in wild animals or animal
articles; and miscellaneous matters.
3) Labour laws
The law relating to labour and employment in India is primarily known under the
broad category of "Industrial Law". The prevailing social and economic conditions have
been largely influential in shaping the Indian labour legislation, which regulate various
aspects of work such as the number of hours of work, wages, social security and
facilities provided.
Under the Constitution of India, Labour is a subject in the concurrent list i.e. List III
of the Seventh Schedule of the Constitution of India where both the Central and State
Governments are competent to enact legislations.
As a result , a large number of labour laws have been enacted catering to different
aspects of labour namely, occupational health, safety, employment, training of
apprentices, fixation, review and revision of minimum wages, mode of payment of
wages, payment of compensation to workmen who suffer injuries as a result of
accidents or causing death or disablement, bonded labour, contract labour, women
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labour and child labour, resolution and adjudication of industrial disputes, provision
of social security such as provident fund, employees‘ state insurance, gratuity,
provision for payment of bonus, regulating the working conditions of certain specific
categories of workmen such as plantation labour, beedi workers etc.
The object of the Act is to ensure adequate safety measures and to promote the
health and welfare of the workers employed in factories.
The Act is applicable to the whole of India including Jammu & Kashmir. It covers all
manufacturing processes and establishments falling within the definition of ‗factory‘.
It s applicable to all factories using power and employing 10 or more workers, and if
not using power, employing 20 or more workers on any day of the preceding 12
months.
Welfare
Safety
Working hours
Overtime wages
Employment of women
Leave
Child employment
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b) Employees Provident Fund & Miscellaneous Provisions
Act, 1952
The Act provides for the institution of provident funds, pension funds and deposit
linked insurance fund for the employees in the factories and other establishments.
The Act extends to the whole of India except the State of Jammu and Kashmir. It is
applicable to all factories and establishments in which 20 or more are employed. It
will continue to apply to an establishment even if the number of persons employed
therein at any time falls below twenty. Where an establishment consists of different
departments or has branches, whether situated in the same place or in different
places, all such departments or branches shall be treated as parts of the same
establishment.
"Employee" means any person who is employed for wages in any kind of work, manual
or otherwise, in or in connection with the work of an establishment, and who gets his
wages directly or indirectly from the employer, and includes any person (i) employed
by or through a contractor in or in connection with the work of the establishment; (ii)
engaged as an apprentice, not being an apprentice engaged under the Apprentices
Act, 1961, or under the standing orders of the establishment. (Sec.2(f) of PF Act,
1952)
The Employees Provident Funds & Miscellaneous Provisions Act, 1952 was enacted
with the main object of making some provision for the future of the industrial worker
after he retires or for his dependants in case of his early death.
Three schemes have been framed under the Employees Provident Funds and
Miscellaneous Provisions Act, 1952, namely -
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The Three Schemes taken together provide to the employees an umbrella for the
rainy day in the shape of old age and survivorship benefits, a long term protection and
security to the employee and after his death to his family members, and timely
advances including advances during sickness and for the purchase/construction of a
dwelling house during the period of membership.
Contribution to EPF -
Administration of EDLI @ 0.01% of the wages/ salary by deposit to A/C. No. 22.
The ESI Act is a social welfare legislation enacted with the object of providing certain
benefits to employees in case of sickness, maternity and employment injury. Under
the Act, employees will receive medical relief, cash benefits, maternity benefits,
pension to dependents of deceased workers and compensation for fatal or other
injuries and diseases.
The Act extends to the whole of India. It applies to all the factories including
Government factories (excluding seasonal factories and mines), which employ 10 or
more persons on any day of the preceding twelve months. The act also applies to
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shops and establishments. Generally, shops and establishments employing more than
20 employees are covered by the Act.
All employees including casual, temporary or contract employees drawing wages less
than Rs.15,000 per month are covered. The ceiling limit had been raised from Rs.7500
to Rs.10,000 with effect from 01.10.06. The limit has further been raised to Rs.15,000
with effect from 01.05.2010. Apprentices covered under the Apprenticeship Act are
not covered under this Act.
Like most of the social security schemes, the world over, ESI scheme is a self-
financing health insurance scheme. Contributions are raised from covered employees
and their employers as a fixed percentage of wages. Presently covered employees
contribute 1.75% of the wages, whereas as the employers contribute 4.75% of the
wages, payable to the insured persons. Employees earning less than and up to Rs. 100
per day are exempted from payment of contribution. The responsibility for payment
of all contributions is that of the employer with a right to deduct the employees share
of contribution from employees‘ wages relating to the period in respect of which the
contribution is payable.
Employees covered under the scheme are entitled to medical facilities for self and
dependants. They are also entitled to cash benefits in the event of specified
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contingencies resulting in loss of wages or earning capacity. The insured women are
entitled to maternity benefit for confinement. Where death of an insured employee
occurs due to employment injury or occupational disease, the dependants are entitled
to family pension.
The Contract Labour (Regulation and Abolition) Act, 1970 regulates the employment
of contract labourers in establishments and by contractors.
The establishments covered under the Act are required to be registered as principal
employers with the appropriate authorities. Every contractor is required to obtain a
licence and not to undertake or execute any work through contract labour, except
under and in accordance with the licence issued in that behalf by the licensing
officer. The licence granted is subject to conditions relating to hours of work, fixation
of wages and other essential amenities in respect of contract.
The Act has laid down certain amenities to be provided by the contractor to the
contract labour for establishment of Canteens and rest rooms; arrangements for
sufficient supply of wholesome drinking water, latrines and urinals, washing
facilities and first aid facilities have been made obligatory. In case of failure on
the part of the contractor to provide these facilities, the Principal Employer is
liable to provide the same.
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The contractor is required to pay wages and a duty is cast on him to ensure
disbursement of wages in the presence of the authorised representative of the
Principal Employer. In case of failure on the part of the contractor to pay wages
either in part or in full, the Principal Employer is liable to pay the same.
The main object of the Minimum Wages Act, 1948 is to provide for fixing minimum
rates of wages in certain establishments. The Act is applicable to employees
employed in the employments specified in the Schedule appended to the Act.
―Employee‖ means any person who is employed for hire or reward to do any work,
skilled or unskilled, manual or clerical, in a scheduled employment in respect of
which minimum rates of wages have been fixed; and includes an out-worker to whom
any articles or materials are given out by another person to be made up, cleaned,
washed, altered, ornamented, finished, repaired, adapted or otherwise processed for
sale for the purposes of the trade or business of that other person where the process
is to be carried out either in the home of the out-worker or in some other premises
not being premises under the control and management of that other person; and also
includes an employee declared to be an employee by the appropriate Government;
but does not include any member of the Armed Forces of the Union. (Sec.2(i) of
Minimum Wages Act, 1948)
Under the Act both State and Central Government are ―Appropriate Governments‖ for
fixation/revision of minimum rates of wages for employments covered by the
Schedule to the Act. The minimum rates of wages also include Special Allowance
(Variable Dearness Allowance) linked to Consumer Price Index Number which are
revised twice a year effective from April and October. The rates of wages once fixed
are revised at an interval not exceeding of five years.
The minimum wages covers all workers in the sectors agricultural, industrial and
small-scale sectors.
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For checking the minimum wage rate log on to
http://www.paycheck.in/main/officialminimumwages. It gives state wise updated
minimum wage rate with their effective date.
Some of the types of employment covered under the Schedule are –
Agriculture
Confectionery and Daily products, Food Preservation etc.
Dal and Flour Mills
Ice Factories and Cold Storage
Oil Mills
f) Employee’s Compensation Act, 1923
All establishments hiring 20 workers and above must compulsorily register themselves
under the Employees‘ State Insurance Act (ESI Act). It is only those establishments,
which employ a lesser number of workers, and therefore to do not come within the
purview of the ESI Act that the Employees‘ Compensation Act applies to. Also if
employers fail to register themselves under the ESI Act, then they will be responsible
to pay compensation under the Employees‘ Compensation Act. The Act will be
applicable only to those persons considered workers and those employers as defined
under the Act.
Minimum rate of compensation payable to a worker has been enhanced from eighty
thousand rupees to one lakh twenty thousand rupees for death and from ninety
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thousand rupees to one lakh forty thousand rupees for permanent disability. Funeral
expenses has been raised from two thousand five hundred rupees to five thousand
rupees. Provision has been for re-imbursement of actual medial expenditure incurred
for treatment of injuries caused during the course of employment.
Every employee (including those employed through a contractor but excluding casual
employees), who is engaged for the purposes of employers business and who suffers
an injury in any accident arising out of and in the course of his employment, shall be
entitled for compensation under the Act.
The employer of any establishment covered under this Act, is required to compensate
an employee:
a. Who has suffered an accident arising out of and in the course of his
employment, resulting into (i) death, (ii) permanent total disablement, (iii)
permanent partial disablement, or (iv) temporary disablement whether total or
partial, or
(a) where death results an amount equal to fifty per cent of the monthly wages of the
deceased workman multiplied by the relevant factor; or an amount of fifty thousand
rupees, whichever is more;
(b) where permanent total an amount equal to disablement results from sixty the
injury per cent of the monthly wages of the injured workman multiplied by the
relevant factor, or an amount of sixty thousand rupees, whichever is more; For the
purposes of clause (a) and clause (b), "relevant factor", in relation to a workman
means the factor specified in the second column of Schedule IV against the entry in
the first column of that Schedule specifying the number of years which are the same
as the completed years of the age of the workman on his last birthday immediately
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preceding the date on which the compensation fell due. Where the monthly wages of
a workman exceed two thousand rupees, his monthly wages for the purposes of clause
(a) and clause (b) shall be deemed to be two thousand rupees only;
(c) where permanent partial disablement results from the injury (i) in the case of an
injury specified in Part II of Schedule I, such percentage of the compensation which
would have been payable in the case of permanent total disablement as is specified
therein as being the percentage of the loss of earning capacity caused by that injury,
and (ii) in the case of an injury not specified in Schedule I, such percentage of the
compensation payable in the case of permanent total disablement as is proportionate
to the loss of earning capacity (as assessed by the qualified medical practitioner)
permanently caused by the injury;
(d) Where temporary a half monthly payment of the sum disablement, whether
equivalent to twenty-five per cent of total or partial, results monthly wages of the
workman, to from the injury be paid in accordance with the provisions of sub-section
(2).
(1A) Notwithstanding anything contained in sub-section (1), while fixing the amount of
compensation payable to a workman in respect of an accident occurred outside India,
the Commissioner shall take into account the amount of compensation, if any,
awarded to such workman in accordance with the law of the country in which the
accident occurred and shall reduce the amount fixed by him by the amount of
compensation awarded to the workman in accordance with the law of that country.
(2) The half-monthly payment referred to in clause (d) of sub-section (1) shall be
payable on the sixteenth day - (i) from the date of disablement where such
disablement lasts for a period of twenty-eight days or more; or
(ii) after the expiry of a waiting period of three days from the date of disablement
where such disablement lasts for a period of less than twenty-eight days; and
thereafter half-monthly during the disablement or during a period of five years,
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whichever period is shorter : Provided that - (a) there shall be deducted from any
lump sum or half-monthly payments to which the workman is entitled the amount of
any payment or allowance which the workman has received from the employer by way
of compensation during the period of disablement prior to the receipt of such lump
sum or of the first half-monthly payment, as the case may be; and (b) no half-monthly
payment shall in any case exceed the amount, if any, by which half the amount of the
monthly wages of the workman before the accident exceeds half the amount of such
wages which he is earning after the accident. Explanation : Any payment or allowance
which the workman has received from the employer towards his medical treatment
shall not be deemed to be a payment or allowance received by him by way of
compensation within the meaning of clause (a) of the proviso.
(3) On the ceasing of the disablement before the date on which any half-monthly
payment falls due, there shall be payable in respect of that half-month a sum
proportionate to the duration of the disablement in that half-month.
(4) If the injury of the workman results in his death, the employer shall, in addition to
the compensation under sub-section (1), deposit with the Commissioner a sum of one
thousand rupees for payment of the same to the eldest surviving dependant of the
workman towards the expenditure of the funeral of such workman or where the
workman did not have a dependant or was not living with his dependant at the time
of his death to the person who actually incurred such expenditure.
The payment of Bonus Act provides for payment of bonus to persons employed in
certain establishments on the basis of profits or on the basis of production or
productivity and for matters connected therewith. It extends to the whole of India
and is applicable to every factory and to every other establishment where 20 or more
workmen are employed on any day during an accounting year.
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Every employee receiving salary or wages upto Rs. 10,000 p.m. and engaged in any
kind of work whether skilled, unskilled, managerial, supervisory etc. is entitled to
bonus for every accounting year if he has worked for at least 30 working days in that
year.
Where an employee has not worked for all the working days in an accounting year,
the minimum bonus of one hundred rupees or, as the case may be, of sixty rupees, if
such bonus is higher than 8.33 per cent, of his salary or wage for the days he has
worked in that accounting year, shall be proportionately reduced.
(a) he has been laid off under an agreement or as permitted by standing orders
under the Industrial Employment (Standing Orders) Act, 1946 (20 of 1946), or
under the Industrial Disputes Act, 1947 (14 of 1947), or under any other law
applicable to the establishment;
(c) he has been absent due to temporary disablement caused by accident arising
out of and in the course of his employment; and
(d) the employee has been on maternity leave with salary or wage, during the
accounting year.
The minimum bonus which an employer is required to pay even if he suffers losses
during the accounting year or there is no allocable surplus is 8.33 % of the salary or
wages during the accounting year, or Rs. 100 in case of employees above 15 years and
Rs 60 in case of employees below 15 years, at the beginning of the accounting year,
whichever is higher. If in an accounting year, the allocable surplus, calculated after
taking into account the amount ‗set on‘ or the amount ‗set of‘ exceeds the minimum
bonus, the employer should pay bonus in proportion to the salary or wages earned by
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the employee in that accounting year subject to a maximum of 20% of such salary or
wages.
The bonus should be paid in cash within 8 months from the close of the accounting
year or within one month from the date of enforcement of the award or coming into
operation of a settlement following an industrial dispute regarding payment of bonus.
The Act provides for a scheme for the payment of gratuity to employees engaged in
factories, mines, oilfields, plantations, ports, railway companies, shops or other
establishments. The Act enforces the payment of 'gratuity', a reward for long service,
as a statutory retiral benefit. The Act applies to every factory, mine, oilfield,
plantation, port and railway company; every shop or establishment within the
meaning of any law for the time being in force in relation to shops and establishments
in a State, in which ten or more persons are employed, or were employed, on any day
of the preceding twelve months; such other establishments or class of establishments,
in which ten or more employees are employed, or were employed, or, any day of the
preceding twelve months, as the Central Government may, by notification, specify in
this behalf.
on his superannuation
on his resignation
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on his death or disablement due to employment injury or disease
The amount of gratuity payable to an employee shall not exceed Ten lakh Rupees.
Gratuity limit has been increased from Rs. 3,50,000 to Rs. 10,00,000 with effect from
24.05.2010.
The Equal Remuneration Act, 1976 aims to provide for the payment of equal
remuneration to men and women workers and for the prevention of discrimination, on
the ground of sex, against women in the matter of employment and for matters
connected therewith or incidental thereto. According to the Act, the term
'remuneration' means "the basic wage or salary and any additional emoluments
whatsoever payable, either in cash or in kind, to a person employed in respect of
employment or work done in such employment, if the terms of the contract of
employment, express or implied, were fulfilled". Nothing in this Act shall apply:- (i) to
cases affecting the terms and conditions of a woman's employment in complying with
the requirements of any law giving special treatment to women; or (ii) to any special
treatment accorded to women in connection with the birth or expected birth of a
child, or the terms and conditions relating to retirement, marriage or death or to any
provision made in connection with the retirement, marriage or death.
This Act provides for the regulation and control of training of apprentices, and to
supplement the availability of trained technical employees for the industry.
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The Act requires employers to hire apprentices in certain designated trades as
notified by the Government.
Every employer is under obligation to provide the apprentice with the training in his
trade in accordance with the provisions of this Act and the rules made there under. If
the employer is not himself qualified in the trade, he has to ensure that a person who
possesses the prescribed qualification is placed in charge of the training of the
apprentice. Every employer has to provide adequate instructional staff, possessing
such qualifications as may be prescribed for imparting practical and theoretical
training and facilities for trade test of apprentices; and every employer is under
obligation to take apprentices in prescribed ratio of the skilled workers in his
employment in different trades.
Every woman is entitled to the payment of maternity benefit at the rate of the
average daily wage for the period of her actual absence immediately preceding and
including the day of her delivery and for the six weeks immediately following that
day.
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The average daily wage is calculated on the basis of the amount payable to her for
the days on which she has worked during the period of three calendar months
immediately preceding the date from which she has absented herself on account of
maternity, or one rupee a day, whichever is higher. To be eligible for maternity
benefit, a woman should have worked in an establishment for not less than 160 days
in the twelve months immediately prior to the date of her expected delivery. The
maximum period for which any woman can be entitled to maternity benefit is twelve
weeks.
If a woman dies during this period, the maternity benefit will be payable only for the
days up to and including the day of her death. However, if she delivers a child and
dies during the delivery or during the period of six weeks following the delivery, the
employer will be liable for the maternity benefits of the entire period of six weeks
immediately following the day of her delivery. If the child dies during this period, the
liability will be only up to and including the day of the death of the child.
In the event of a miscarriage, the woman must produce relevant proof that she has
suffered a miscarriage. This will entitle her to receive leave with wages at the rate of
the maternity benefit, for a period of six weeks immediately following the date of the
miscarriage.
Women who are ill on account of pregnancy, delivery, premature birth of a child or a
miscarriage are also entitled to a period of absence or to leave with wages at the rate
of maternity benefit for a maximum period of one month. However, they must submit
proof of their illness.
The unorganized sector can be defined as that part of the work force that have not
been able to organize itself in pursuit of a common objective because of certain
constraints such as casual nature of employment, ignorance or illiteracy, superior
strength of the employer singly or in combination etc. viz. construction workers,
labour employed in cottage industry, handloom/power loom workers, sweepers and
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scavengers, beedi and cigar workers etc. This sector is marked by low incomes,
unstable and irregular employment, and lack of protection either from legislation or
trade unions. The unorganized sector uses mainly labour intensive and indigenous
technology.
Out of 440 million workers in India, 93% of the workers are in the unorganized sector.
The contributions made by the unorganized sector to the national income, is very
substantial as compared to that of the organized sector. It adds more than 60% to the
national income while the contribution of the organised sector is almost half of that
depending on the industry.
This Act builds a social security system for the unorganized workers. It does the
following:
1. It redefines worker so as to include all types of workers, not only those who
have a fixed employer. In so doing, it brings in all the self employed workers as
well as casual, contract, home based etc.
2. It identifies each worker and gives him/her a unique social security number
and social security card.
3. It offers a variety of social security benefits to the unorganized worker.
These would include health insurance, maternity benefit and pensions. As these
schemes become successful, the trust and participation of workers‘ builds up,
and more funds come in, a variety of different benefits can be included such as
children‘s education, housing, skill building etc.
4. It binds the Central Government to providing a minimum amount of benefits
and funds.
5. It creates a structure, an architecture that works with but does not rely
solely on the Government system. It creates a participatory structure that
builds on already existing civil society, government and semi-government
organizations which have a good record.
6. It encourages the unorganized workers to organize around the social security
structures and benefits, creating a voice and space for them.
‘Unorganized Sector Worker‖ means a person who :
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1. works for wages or income; and
2. directly or through any agency or contractor or who works on his own or her
own account or is self employed; and
3. in any place of work including his or her home, field or any public place; and
4. who is not availing of benefits under the ESIC Act and the P.F Act, individual
insurance and pension schemes of LIC, private insurance companies, or other
benefits as decided by the Authority from time to time.
This includes all workers in all types of occupations including agriculture.
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9. FOOD STANDARDS
The Bureau of Indian Standards (BIS) is the national Standards Body of India working
under the aegis of Ministry of Consumer Affairs, Food & Public
Distribution, Government of India. It is established by the Bureau of Indian Standards
Act, 1986 which came into effect on 23 December 1986. The organization was
formerly the Indian Standards Institution (ISI).
One of the major functions of the Bureau is the formulation, recognition and
promotion of the Indian Standards. Product Certifications are to be obtained
voluntarily. For, some of the products like Milk powder, Milk-cereal based weaning
foods, Processed cereal based complementary foods for infants, sweetened condensed
milk, packaged, infant milk substitutes, Drinking Water, etc., certification is
mandatory because these products are concerned with health and safety.
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BIS has launched Food Safety Management Systems (FSMS) Certification IS/ISO
22000:2005 scheme which envisages grant of FSMS Certification license to
organizations according to IS/ISO 22000.
AGMARK
The word Agmark is derived from Agricultural Marketing. The Agmark standard was set
up by the Directorate of Marketing & Inspection (DMI), Ministry of Agriculture,
Government of India by introducing an agricultural produce Act in 1937. The word
Agmark seal ensures about quality and purity of the food products. The quality of the
product is determined with reference to the size, variety, weight, colour, moisture,
fat content and other factors are taken in to account.
Products available under AGMARK are pulses, wheat products, vegetable oils, ground
spices, whole spices, milk products, honey, compounded asafoetida, rice, tapioca
sago, seedless tamarind and gram flour; grading of these commodities is voluntary. On
the other hand grading of commodities like tobacco, walnut, spices, basmati rice,
essential oils, onion, potatoes are meant for export is compulsory under AGMARK.
CODEX
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food as well as codes of good manufacturing practices, guidelines to protect health of
the customers. These standards, guidelines and recommendations are recognized
worldwide for international trade and negotiations and also for settling of disputes by
WTO. There are Codex standards for fruits and vegetables, meat and poultry
products, pulses and cereals.
Codex standards usually relate to product characteristics and may deal with all
government-regulated characteristics appropriate to the commodity, or only one
characteristic. Maximum residue limits (MRLs) for residues of pesticides or veterinary
drugs in foods are examples of standards dealing with only one characteristic. There
are Codex general standards for food additives and contaminants and toxins in foods
that contain both general and commodity specific provisions. The Codex General
Standard for the Labelling of Prepackaged Foods covers all foods in this category.
Because standards relate to product characteristics, they can be applied wherever the
products are traded. Codex methods of analysis and sampling, including those for
contaminants and residues of pesticides and veterinary drugs in foods, are also
considered Codex standards.
Hazard Analysis and Critical Control Point (HACCP) is a process control system
designed to identify and prevent microbial and other hazards in food production. It
includes steps designed to prevent problems before they occur and to correct
deviations as soon as they are detected. Such preventive control system with
documentation and verification are widely recognized by scientific authorities and
international organizations as the most effective approach available for producing
safe food.
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hazard control. In doing so, the many drawbacks prevalent in the inspection approach
are provided and HACCP overcomes shortcomings of reliance only on microbial
testing.
ISO-9000
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controlled, these may prove to be harmful. These special features need to be given
due consideration while orienting ISO 9000 to this industry.
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10. FOOD SAFETY AND STANDARDS AUTHORITY OF INDIA
The Food Safety and Standards Authority of India (FSSAI) has been established
under Food Safety and Standards Act, 2006 which consolidates various acts & orders
that have hitherto handled food related issues in various Ministries and Departments.
The Ministry of Health & Family Welfare, Government of India is the Administrative
Ministry for the implementation of FSSAI. The Chairperson and Chief Executive Officer
of Food Safety and Standards Authority of India (FSSAI) have already been appointed
by Government of India. The Chairperson is in the rank of Secretary to Government of
India.
FSSAI has been mandated by the FSS Act, 2006 for performing the following
functions:
Framing of Regulations to lay down the Standards and guidelines in relation to
articles of food and specifying appropriate system of enforcing various
standards thus notified.
Laying down mechanisms and guidelines for accreditation of certification
bodies engaged in certification of food safety management system for food
businesses.
Laying down procedure and guidelines for accreditation of laboratories and
notification of the accredited laboratories.
To provide scientific advice and technical support to Central Government and
State Governments in the matters of framing the policy and rules in areas
which have a direct or indirect bearing of food safety and nutrition.
Collect and collate data regarding food consumption, incidence and prevalence
of biological risk, contaminants in food, residues of various, contaminants in
foods products, identification of emerging risks and introduction of rapid alert
system.
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Creating an information network across the country so that the public,
consumers, Panchayats etc receive rapid, reliable and objective information
about food safety and issues of concern.
Provide training programmes for persons who are involved or intend to get
involved in food businesses.
Contribute to the development of international technical standards for food,
sanitary and phyto-sanitary standards.
Promote general awareness about food safety and food standards.
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11. REGULATORY AUTHORITIES
The Ministry of Food Processing Industries (MFPI) was set up in July, 1988 to give an
impetus to development of food processing sector in the country. Subsequently vide
Notification No. Doc. CD-442/99 dated 15.10.99 this Ministry was made a Department
and brought under the Ministry of Agriculture. It was again notified as the Ministry of
Food Processing Industries vide Cabinet Secretariat‘s Note No.1/22/1/2001-cab.(1)
dated 06.09.2001.
A major issue facing the country is to ensure remunerative prices to the farmers for
their produce. If the surplus production of cereals, fruits, vegetables, milk, fish, meat
and poultry etc. are processed and marketed both inside and outside the country,
there will be greater opportunities for adding to the income of farmers and
employment. A strong and dynamic food processing sector plays a vital role in
diversification and commercialisation of agriculture, enhances shelf life, ensures
value addition to agricultural produce, generates employment, enhances income of
farmers and creates markets for export of agro foods. The Ministry of Food Processing
Industries is concerned with formulation and implementation of the policies and plans
for the food processing industries within the overall national priorities and objectives.
The Ministry acts as a catalyst for bringing in greater investment into this sector,
guiding and helping the industry, and creating a conducive environment for healthy
growth of the food processing industry. Within these overall objectives, the Ministry
aims at:
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• Encouraging R&D in food processing for product and process development.
• Create the critical infrastructure to fill the gaps in the supply chain from farm
to consumer.
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12. ORGANISATIONS RELATED TO THE INDUSTRY
NIFTEM would work as Sector Promotion Organization of the food processing sector.
Major objectives of NIFTEM drawn from its mandate are:
(i) Working as a 'One Stop Solution Provider' to all the problems of the sector.
(ii) Working for Skill Development and Entrepreneurship Development for the
sector.
(iii) Facilitating business incubation services with its ultra modern pilot plant
for processing of fruits and vegetables, dairy, meat and grain processing.
(iv) Conducting Frontier Area Research for development of the Sector.
(v) Developing world class managerial talent with advanced knowhow in food
science and technology.
(vi) Providing intellectual backing for regulations which will govern food safety
and quality and at the same time foster innovation.
(vii) Functioning as a knowledge repository in food processing domain such as
product information, production and processing technology, market trends,
safety and quality standards, management practices among others.
(viii) Working for upgradation of SME food processing clusters.
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(ix) Promoting cooperation and networking among existing institutions within
India and as well as with international bodies.
IICPT has NABL accredited food quality testing laboratory, food product development
laboratory, food microbiology laboratory, a state of the art hi-tech food processing
incubation center and food engineering laboratories. With its modern and world class
laboratories equipped with hi-tech instruments, IICPT is engaged in identifying
technologies for processing, preserving, value addition, by-product utilization through
bio-processing, and process and product development. The subjects of research IICPT
takes up are chosen with careful selection and approach. IICPT focuses their research
in areas like: non-destructive quality evaluation and grading of fruits and vegetables,
acoustic determination of fruits and vegetables maturity for harvesting, application of
soft X-rays for identifying internal blemishes in fruits and vegetables, development of
on-farm pre-coolers and vegetable washers, development of indigenous technology
knowledge based food, composite grains foods, energy saving in parboiling, improving
milling techniques of cereal grains, pulses, oil seeds and millets, food processing
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effluent treatment, creating ready to use dry mix fermented batter for idly and other
Indian foods, new food product development based on grains, fruits and vegetables,
fortification of processed foods for making health foods at affordable prices,
development of new equipments for puffing, multipurpose yard drying, parboiling, for
producing hand pound rice, reducing storage losses, economic utilization of biomass,
food industries by-product and waste utilization. Besides R & D, the institute started
offering bachelor, master and doctoral degrees in food processing technologies apart
from conducting non-formal short term certificate programs in food processing
related areas.
The government approved the setting up of Indian Grape Processing Board in January
2009. The main objectives of the Indian Grape Processing Board are:
(i) to focus on Research & Development, extension, quality upgradation, market
research and information, domestic and international promotion of Indian wine;
(ii) to set up facilities for wine analysis, testing for quality defining and label
standards, certification of wine and promoting Good Manufacturing Practices (GMP),
Hazard Analysis and Critical Control Point (HACCP)/ISO22000, 2005;
(iii) to promote cooperative efforts, backward and forward linkages between growers
and wine industry in general,
(iv) to formulate a vision, action plan for the growth of Indian wine sector including
research and development in new technologies/ processes and to foster sustainable
development of Indian wine industry.
The Board has since then been set up with its headquarters its Pune. The Executive
Committee of the Board has a total of 16 members including the Chairman.
National Meat and Poultry Processing Board (NMPPB) is an autonomous body registered
under the Societies Registration Act, 1860. The Board started functioning from a
leased accommodation at 7/6, Association of Municipalities & Development Authority
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(AMDA Building), Siri Fort Institutional Area, August Kranti Marg, New Delhi. This
industry driven institution works as a National hub for addressing all issues relating to
the meat and poultry processing sector. The Board was constituted on 27th February,
2009 with 19 Members including CEO and is managed by the industry itself. The Board
serves as a single window service provider for producers/manufacturers and exporters
of meat and meat products, for promoting & regulating the meat industry as a whole.
The Board has setup a Food Testing Laboratory at AMDA building, August Kranti Marg,
New Delhi. NMPPB Laboratory has hi-tech instruments for analyzing various
microbiological and physico-chemical parameters related to various food and food
products. The Board is making efforts for obtaining NABL Accreditation. The benefit
of this lab is available to its members at a concessional rate. NMPPB has also
undertaken a major outreach initiative involving all the stake-holders. Jointly with
Indian Institute of Crop Processing Technology (IICPT), the Board organized a series of
training programmes for meat workers across the country.
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Honey, Jaggery and Sugar Products.
Cocoa and its products, chocolates of all kinds.
Alcoholic and Non-Alcoholic Beverages.
Cereal and Cereal Products.
Groundnuts, Peanuts and Walnuts.
Pickles, Papads and Chutneys.
Guar Gum.
Floriculture and Floriculture Products
Herbal and Medicinal Plants
The plan schemes of the Authority are implemented under seven major heads:
Market Promotion
Capture Fisheris
Culture Fisheries
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Processing infrastructure & value addition
Quality control
Research and development
Viability gap funding
The Head Quarters of MPEDA is located at Kochi in Kerala. The regional offices of
MPEDA in Veraval (Gujarat), Mumbai (Maharashtra), Kochi (Kerala, Chennai (Tamil
Nadu), Visakhapatanam (Andhra Pradesh) and Kolkata (West Bengal) and six sub
regional offices at Goa, Mangalore (Karnataka), Kollam (Kerala), Tuticorin (Tamil
Nadu), Bhubaneswar (Orissa) and Guwahatti (Assam) are functioning as field offices
for implementation of various activities of the Authority besides engaging themselves
in export promotion of marine products by providing guidance and assistance to the
processing industry and the export trade.
Similarly six regional centres in Kochi (Kerala), Panvel (Maharashtra), Valsad
(Gujarat), Thanjavur (Tamil Nadu), Vijayawada (Andhra Pradesh), and Bhubaneswar
(Orissa) and four sub regional centres in Kannur (Kerala), Karwar (Karnataka),
Bhimavaram (Andhra Pradesh) and Kolkota (West Bengal) extend assistance to
augment production of shrimp to sustain and increase exports. MPEDA has also set up
three stand alone laboratories, other than the one in Head Quarters, at Bhimavaram,
Nellore in Andhra Pradesh & Bhubaneswar(Orissa) equipped with sophisticated
equipments like LC MS MS for testing various parameters.
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13. IMPORTANT WEBSITES AND ADDRESSES
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http://apeda.gov.in – Agricultural & Processed Food Products Export Development
Authority
www.taxguru.in
http://ncti-india.com/ - National Centre for Trade Information
Kotla Road,
India
Email: admn@fssai.gov.in
EPABX: 011-23236975
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Telefax: 011-23220994
New Delhi
Telefax- 011-24360934-36
Guwahati-781037
Assam
Telefax - : 0361-2332446
www.taxguru.in
New Marine Lines,
Mumbai-400020
Tele-fax- 022-22036801
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www.taxguru.in
Phone: 011-26494032
Fax:: 011-26492176
MPEDA
MPEDA House,
Panampilly Avenue
PB No. 4272
Cochin-682 036.
India
98
www.taxguru.in