www.CommodityIndia.com Comprehensive Agri-Commodity Intelligence
AS YOU FLIP
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CICILS announces the Election of
New President
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Juicifix – A pioneer in the cold
pressed juices Industry
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India expects a below Normal
Rainfall in 2015
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A Snapshot on 25
Chickpea : To
trade at high in
Komal Exotic Spices - Making a big name in the Spices Industry R&D is the key. A new industry practice that is developing is that a lot of food majors have started enlisting the help of wellinformed suppliers in their R&D process. These companies recognize that ingredients play an instrumental role in the development of the final product, and therefore often turn to the suppliers for their technical input on ingredient characteristics…..
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the near future
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Foreign Trade Policy 2015 – 2020
“Exotic Ecuador” to the School of
Culinary and Finishing Arts (SCAFA)
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Agriculture Policy News
PRO ECUADOR presents
Corporate News
10 Suncue - Advanced Grain Drying Technology Suncue husk furnace is the only furnace that has passed not only strict performance testing but also stringent air pollution testing in both Japan and Taiwan. Clean hot air generated by Suncue husk furnace can be controlled precisely within the range of ±1 0C…
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May 2015
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Comprehensive Agri-Commodity Intelligence President G. Srivatsava Vice President Vinayak Meharwade Research Team Abhijeet Anand Debajit Saha Kempa Reddy Maria Krupa Naveen R Sajana S Shruthi Santosh Soumya Vinay Soni Venkat Raman Marketing team Abhinaya SG Swapna BE Ravi Bhandage Minu Kavyashree Designer K. Radhika Praveen Circulation Shiva Kumar Jaisheelan Data Support Gajendra Sanjay Jayanth Kumar Prabhu Jakaty Ansuya S Corporate Office Bangalore #146, 1st Floor, Gopal Towers, Ramaiah Street, HAL Airport Road, Kodihalli, Bangalore - 560 008. Tel:+91 80 25276152/53, Fax:+91 80 25276154 email:
[email protected] web: www.CommodityIndia.com BUSINESS ASSOCIATE Alok Thakkar, 9425074420
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Dear Readers, Greetings and best wishes! As per the 2nd Advance Estimates for 2014-15, the total food grain production in the country is estimated at 257.07 million tonnes, as against a record production of 265.57 million tonnes in the previous year. There is a decrease of 8.50 million tonnes of total food grain production. The unseasonal rain in March has led to the huge crop loss of wheat in most of the wheat producing states in the country. The IMD in its first forecast of 2015 South West Monsoon has predicted a below normal rainfall. This is the second consecutive year, the country is facing the probability of less rainfall, which would add to distress of the already distressed farmers. If the prediction comes true, there are chances that prices of essential agricultural commodities could rise. The government should promote drought and flood resistant short duration crops. The farmers should be educated about the scientific storage of the grains. The government should also promote weather based insurance to the farmers and promote the usage of dryland crops. With the Government focusing on the “Make in India” initiative, the Foreign Trade Policy 2015-2020 unveiled on April 1 focuses on boosting domestic manufacturing and removing structural and procedural hurdles in exports of goods and services. Two new schemes have been introduced viz., Merchandise Exports from India Scheme (MEIS) and Services Exports from India Scheme (SEIS). Under MEIS scheme, the processed and packaged food items will receive highest support for the export purposes. India is globally known for its spices production and export. The market for blended spices is expanding because of the different uses of these products. Mr. Gopaal and Mr. Ganesh Ahuja of Komal Exotic Spices, one of the largest importers of exotic spices to India, elaborates the new opportunities in this sector. Suncue gives us a detailed explanation on how to reduce grain loss and increase revenue by using Advanced Grain Drying Technology when the grain is still fresh using low temperature. This would help millers and processors. There is a short write up on the rabi crop updates of coriander, chickpea, wheat and mustard. We also present an article on Cold Pressed Juice, a new concept with immense health benefits. Hope you enjoy reading the selections presented in the issue. Do let us know your views, comments and opinions. We would like to know your views and suggestions. Please write to us at
[email protected]
G Srivatsava
Edited, Printed & Published and owned by G. Srivatsava, on behalf of Foretell Business Solutions Pvt Ltd, #146, 1st Floor, Gopal Towers, Ramaiah Street, HAL Airport Road, Kodihalli, Bangalore - 560 008 & Printed at Hamsanikethan Printers, No. 126, CT Bed, Banashankari 2nd Stage, Bangalore - 560070.
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Komal Exotic Spices - Making a big name in the Spices Industry The father & son duo – Gopaal & Ganesh Ahuja – run a successful company “Komal Exotic Spices” in the business of importing & processing exotic spices & dry fruits in India. Together, they have expanded their roots from a humble office in Mumbai into a thriving multinational with backward & forward integrated operations. The edited interview excerpts…
What are the procedures followed during procurement process with respect to quality (there is a possibility of presence of chemical residue)? Do you think that doing contract farming in spices is economically viable? Gopaal B. Ahuja, here after referred as (GBA): Spices derive their value from aroma and pungency. This aroma is in-built by nature, not for people’s benefit, but to attract insects to itself for the purpose of pollination and hence propagation. A lesser-known fact is that pollination often plays an important role in the procurement process of spices & dry fruits. Pollination impacts the aromatic oil content, wherein post pollination the aroma/oil content dwindles. Thus when your goal is dry fruit or nuts, pollination is encouraged;
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whereas most spices like Cloves are procured pre-pollination, to preserve the oil/aroma. With regards to chemical residue, while the use of pesticides and fertilizers is on the rise in farmed spices; however this is not the case in plantation crops. Almost at all origins, plantation crops are naturally grown and tendered. Contract farming, especially organic contract farming is viable in certain spices like Chilies, Cumin and Fenugreek, besides others. In plantation crops, entire estates’ yield is contracted to the investor who then employs help to harvest. Ganesh G. Ahuja, here after referred as (GGA )- We usually know the areas we are buying from and hence are aware if they are using any pesticides, fertilizers etc.
We also always test the materials before dispatching them to our clients. We have not tried contract farming ourselves. Typically the spices we deal in are grown in remote regions that are difficult to monitor. The terrain is hilly and land parcels are smaller, thus making it even more difficult to survey. Also, application of technology is limited for growing and harvesting. And manpower requirements are high which is not a very comforting factor is for most companies, since availability and costs are always an issue. KES (Komal Exotic Spices) imports most of the exotic spices, how do you keep the quality in check during importing? (For ex the oil content is more in cloves and while importing from other countries the oil content varies) GBA: We at Komal Exotic Spices lay stress on buying the right quality to start with. We do not tap on suppliers who offer just cheaper rates. One must also understand that maintaining quality is an expensive process. Yes, oil content and aromatic notes do vary from country to country. We control these variables by customizing purchases as per the end use. Moisture check and right packaging is also very important. GGA: Over the years we have
May 2015
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setup our own procurements centers & developed channel partners across the world, who buy directly from the farmers, process the goods, and then
export directly to us or our clients. These centers/partners operate independently, but are regularly fed with information from us with regards to customer requirements, market trends, etc. They then try to match these requirements, and also continuously strive to enhance quality. When they are unable to achieve a certain requirement, we assist them further by way of technology – either adapt & apply, or develop new. It is amazing to see what technology can do to enhance quality. There have been times when we have adapted technology developed for fruits/vegetables and applied it to some spices, and it has given us great results! What opportunities are you seeing in blended spices market in next 5 years (India)? GBA: The usual spice powder mixes are in good demand and industry is catering to the different segments quite well. New brands are being
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launched in this space very frequently. So it is a burgeoning market. However, there does exist space for some newer, offbeat powder mixes and some new
recipes for success. Industry should invest in R & D. GGA: There are a lot of new products and blends being launched. Within India people from different regions have different taste. Hence more and more companies are starting to cater to region specific tastes. Like my father rightly said – R&D is the key. A new industry practice that is developing is that a lot of food majors have started enlisting the help of well-informed suppliers in their R&D process. These companies recognize that ingredients play an instrumental role in the development of the final product, and therefore often turn to the suppliers for their technical input on ingredient characteristics. A knowledgeable supplier plays two important roles: A) Quality Consistency – Ensuring the R&D team get the same
material to experiment, with, which will later be supplied for production (hence cutting time taken from the tabletop to manufacturing); B) Ingredient Expertise – They also often bring in their expertise on the ingredients, such as flavor & other key characteristics to help achieve the desired outcome. For instance – recommending a different place of origin, e.g.- Ginger chips from Nigeria were first tried reluctantly; but have now gained popularity due to its attractive package of desirable oil content at a lower price. Another instance – recommending Cubeb Pepper for a more soothing & binding effect in a masala. What is cubeb pepper? How it is different from normal pepper? Where does it grow (country)? Who are the consumers? GBA: Cubeb pepper is from the family of pepper but with a tail. It’s got a very pleasant aroma and soothing taste unlike black pepper, which is pungent. It grows mainly in Indonesia and is used/ consumed by very few chefs who are well versed with Mughlai cooking. Of late, masala powder makers have included it in their formulae as well. Besides culinary, Cubeb Pepper also has its usefulness in Ayurveda What is your understanding of announcement of introducing GST from next year Apr’16 from a manufacture’s point of view? Will it make business easy? GBA: Keeping my fingers crossed. It will make sense to invest in
May 2015
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pan India marketing rather than regional. Spice markets are very very regional and local due to varying taste preferences. But certainly pan India marketing and distribution will become less cumbersome due to doing away the need to have multiple state registrations for VAT. Presuming that all indirect taxes and levies are subsumed in to GST, maximum ease of doing business will go to liquor industry whereas spice powder industry will be the least gainer in terms of taxes. But ease of doing business will be of greater value and who knows, palates will be more pampered with Indian flavors from far-flung states! GGA: Manufacturers will also be able to take advantage of a more level playing field – currently even if a product is cheaper in Delhi, it may not be cheaper by the time it comes to Mumbai. Importantly, manufacturers prefer buying low value/high volume goods from the same state because they can set-
May 2015
Comprehensive Agri-Commodity Intelligence
off VAT and not CST. But once GST comes in, manufacturers will be able to procure goods from sources spread across India. This in turn will benefit quality conscious vendors like us, as we will be able to cater to more clients across India. You are also importing dry fruits, how the consumption has grown over last 10 years? What are you expecting the entire dry fruit segment will evolve in next 10 years with rising health consciousness and income? GBA: Consumption of dry fruits has risen tremendously as we have become the largest consumers of American Almonds, and also other dry fruits. Branding, branding and branding is the factor which will separate the men from the boys. Some domestic players like the Urmin Group of Ahmedabad show a deep understanding of branding that is evident in their extremely popular “Star Nuts” products. GGA: Interestingly dry fruits have become increasingly popular
with the younger generation. Top Premium biscuits & cookies manufacturers like Unibic, ITC and Britannia, catering to the tastes of Urban India and the growing Middle Class segments are now offering unique variants with Cashew, Almond & Raisins. Moreover, when Amazon started with its food-retailing venture in India (Gourmet foods), one of their very first offerings was packaged dry fruit. Perhaps seeing the growing demand & popularity, they are now offering everything from Chili-spiked Nuts to jars of honey with nuts dunked in. This also is an indicator of the future of the dry fruits industry. GBA: Of course, ultimately consumption is directly proportionate to the income of the consumers, which is rising. India will have the highest youth population that will be adding tremendously to growth and consumption. Awareness of health benefits due to proteins, antioxidants and soluble fibers is gaining currency for dry fruits. -----------------------------------------------For more details about Komal Exotic Spices, please visit our website www. komalexoticspices.com
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Suncue - Advanced Grain Drying Technology Drying while grains are fresh, using even, low-temperature fast drying, to reduce grain losses and increasing revenue
"Grain Drying" is very crucial in the Post-harvest processes. A better drying process can prevent from starch gelatinization, high broken rate, uneven dry, over- dry, or insufficientt dry. Hence, grains stored in the silos will be free from mildew damage, Aflatoxin, and losses. India yields enormous amount of paddy, wheat, corn, dal, spices annually. Only by means of drying while grains are still fresh, and using low temperature , even drying techniques, those plenty of grains harvested by machines can be handled timely and properly to avoid suffering from great losses due to mildew, and control profits on farmers’ own hand. With the rapid growth in harvesting mechanization, drying by manual and solar dry can no longer satisfy
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the demand of handling capacities of grains. Drying by sun still has the following unsolved problems : 1. It requires labors to flip. The moisture content and drying temperature can not be controlled evenly; thus, the quality of each batch will not be consistent. Over dry causes grain weight loss, under dry leads to grain mildew. Profit vanishes unconsciously. 2. Grain temperature is easily over 40 degree Celsius by exposure of thin layer of grains to the sun. Take paddy for example, once fissures happen due to high heat, broken rate tends to be much higher than drying by machine when milling. Grains can only be sold at lower price. 3. Grains will be contaminated by impurities and also suffer great losses from being smashed by car, eaten by birds or blown away by wind.
4. Drying grains on the road will jeopardize traffic; asphalt smell also will contaminate grain quality and more land space and labor consuming. In term of drying cost, solar dry is far higher than drying by machines and difficult in management. Assuming an annual paddy production for 10,000 tons, 6% loss due to uneven dry or yellowish paddy, the annual loss is about 600 tons. Broken rate is at least 30% if drying by sun, the annual loss is 3,000 tons a year. Take Indian Basmati rice for example, the market price for head rice is about US$ 2/kg; while broken rice can only be sold at half price of US$ 1/ kg. The annual loss will be up to 4.2 million US dollar. The only solution of saving the loss during drying is to implement “dry mechanization” and to dry immediately while grains
May 2015
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