Why Investors and Policy Makers not exploring this assured goldmine?

Why Investors & Policy Makers not exploring this assured Goldmine?

"Traditional Foods of India"

By: Vijay Sardana

Please study this map carefully, the goldmines are all over the country.
Market size of these products within India is Rs. 1300 million (Rs. 130 crore) plus global Market.

Historically, India was attacked and raided by outsiders because of our tasty foods due to species and flavours. All traders came to India in search of 'Taste of India' and later they became greedy and started controlling Indian territories.

One of the biggest criticism of modern food industry is we are promoting junk foods and food which are not balanced in nutrition. These processed foods are excessively loaded with carbohydrate, oils, sugar or salt. Very rarely you will find a food which is nutritionally balanced. To make it balanced food you should buy more food or food items to mix with it and this leads to cost escalation and cost of nutrition goes up.

Exercise for you: Whatever processed food you are consuming, please read the label and compare with your traditional food of your community? Find out which is more nutritious.

While analysing Government data on FDI you will find that all major investment in food industry in last few years have gone to produce so called junk food in India.

What can be the reasons?

1.Investment on nutritious foods are less profitable.

2. FDI is not keen to promote nutritious foods because it is difficult to make.

3.Investors do not have technology to make nutritious foods?

If these are not valid reasons, what else can be the reason.

Now read the map carefully:

Every cuisine is billion-dollar opportunity and may create 100 new start-ups in every state.

Traditional Indian foods are nutritious, taste and suitable to local climate and traditions. For global markets they offer varieties to consumers always looking for new taste and options.

Why these great traditional foods never took off as great food industry?

It is easy to make food, but it must meet the legal requirements as per the law.

The funniest part is Food Safety and Standards Authority of India is not ready to ensure safety and quality parameters of traditional foods due to lack of rules, testing methods, labs and procedures. In absence of any rules, all interpretation is left to food inspectors and laboratory analysts intelligence. The image and goodwill of food inspectors and labs are so low due to corruption in departments. The massive supply of adulterated foods to common man is one simple example of effectiveness of the concerned departments.

What will happen if investors invest in traditional foods?

This segment has huge export potential, but without domestic sensible laws, packaging standards and norms this is becoming difficult. This may lead to harassment by food inspectors. What should be the labelling declaration and claims no one knows.

Why traditional cuisines are not priority for FSSAI?

If FSSAI promotes, traditional foods, this will address malnutrition and create employment for substantial number of people in every city. Why FSSAi is not keen to address this national priority in place of promoting fortification based on failed concepts of 'Donors'? We must learn from Thailand how to address nutritional challenges.

What is the way forward?

1. All food processing related departments must spend resources to work on how to improve shelf-life of these traditional foods?

2. Packaging Research centers must invest resources on developing suitable packaging for these nutritious and traditional foods to make it convenient for transportation and consumption including for exports markets.

3. FSSAI must work on all aspects of food safety, food formulations, additives required, nutritional labeling and claims so that excellent quality product can be delivered to consumers globally.

4. FSSAI must train the inspectors and lab. staff to handle these innovative products so that ignorance of inspector should not became harassment of the investors.
5. FSSAI must ensure a system to minimize corruption so that Start-ups don't feel discouraged by rent seeking attitude of the inspectors. There must be online complaint system so that CEO and Chairman get complaints directly to take appropriate action.  There is no trust on the vigilance department because they all are from same system. This is classic case of Conflict of Interest. That is why Vigilance never take action against corrupt people and corrupt remains in system and hurts investment.

Some companies have initiated the process, but they are regional players only. Government must work out a "National Technology Plan for Traditional Foods" like what is done for traditional medicines and yoga. This must help in customization based on needs of global market and laws. 

If government works-out a meaningful policy, Indian traditional foods which are nutritious and healthy diets can easily be USD 100 billion market world over and may create millions of jobs. Proper FSSAI laws will help in addressing queries and issues in development of traditional food market. 

If we will fail, companies in other countries will do it. Many Indian pickles, spice mixes, snack foods are now made in many countries of the world and exported. They carry name from India but not made in India.

Will 'Swadeshi brigade' look at this vital sector, which can create employment, attract investment and ensure exports. Please make traditional foods a priority for FSSAI and Ministry of Food Processing and Research agenda at Food Research institutes.