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IGIDR-IFPRI -Opportunities for Ensuring Safe Food,  Anjani Kumar, IFPRI
IGIDR-IFPRI -Opportunities for Ensuring Safe Food,  Anjani Kumar, IFPRI
IGIDR-IFPRI -Opportunities for Ensuring Safe Food,  Anjani Kumar, IFPRI
IGIDR-IFPRI -Opportunities for Ensuring Safe Food,  Anjani Kumar, IFPRI
IGIDR-IFPRI -Opportunities for Ensuring Safe Food,  Anjani Kumar, IFPRI
IGIDR-IFPRI -Opportunities for Ensuring Safe Food,  Anjani Kumar, IFPRI
IGIDR-IFPRI -Opportunities for Ensuring Safe Food,  Anjani Kumar, IFPRI
IGIDR-IFPRI -Opportunities for Ensuring Safe Food,  Anjani Kumar, IFPRI
IGIDR-IFPRI -Opportunities for Ensuring Safe Food,  Anjani Kumar, IFPRI
IGIDR-IFPRI -Opportunities for Ensuring Safe Food,  Anjani Kumar, IFPRI
IGIDR-IFPRI -Opportunities for Ensuring Safe Food,  Anjani Kumar, IFPRI
IGIDR-IFPRI -Opportunities for Ensuring Safe Food,  Anjani Kumar, IFPRI
IGIDR-IFPRI -Opportunities for Ensuring Safe Food,  Anjani Kumar, IFPRI
IGIDR-IFPRI -Opportunities for Ensuring Safe Food,  Anjani Kumar, IFPRI
IGIDR-IFPRI -Opportunities for Ensuring Safe Food,  Anjani Kumar, IFPRI
IGIDR-IFPRI -Opportunities for Ensuring Safe Food,  Anjani Kumar, IFPRI
IGIDR-IFPRI -Opportunities for Ensuring Safe Food,  Anjani Kumar, IFPRI
IGIDR-IFPRI -Opportunities for Ensuring Safe Food,  Anjani Kumar, IFPRI
IGIDR-IFPRI -Opportunities for Ensuring Safe Food,  Anjani Kumar, IFPRI
IGIDR-IFPRI -Opportunities for Ensuring Safe Food,  Anjani Kumar, IFPRI
IGIDR-IFPRI -Opportunities for Ensuring Safe Food,  Anjani Kumar, IFPRI
IGIDR-IFPRI -Opportunities for Ensuring Safe Food,  Anjani Kumar, IFPRI
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IGIDR-IFPRI -Opportunities for Ensuring Safe Food, Anjani Kumar, IFPRI

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Indira Gandhi Institute for Development Studies(IGIDR), and the International Food Policy Research Institute (IFPRI) on …

Indira Gandhi Institute for Development Studies(IGIDR), and the International Food Policy Research Institute (IFPRI) on
‘Harnessing Opportunities to Improve Agri-Food Systems’ on July 24-25 , 2014 in New Delhi.
The two day conference aims to discuss the agricultural priority of the government and develop a road map to realise these priorities for improved agri food systems.

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  • 1. Food Safety Issues in India: Opportunities and Challenges Anjani Kumar International Food Policy Research Institute IFPRI-South Asia Regional Office, NASC Complex, Pusa New Delhi 110 012 India E-mail: anjani.kumar@cgiar.org Web: www.ifpri.org
  • 2. International Food Policy Research Institute  Changes in consumer demand and preferences  Increasing demand for greater food safety,  Increasing awareness among consumers and policy makers  NGOs, consumer groups, research institutes, media  Complex nature of food safety hazards,  Advances in contamination detection methods  Emergence of private standards driven by supermarkets and modern value chains  Integrated approach to ensure food safety  Greater attention on compliance with FSM at farm level Growing concerns of food safety
  • 3. International Food Policy Research Institute Past studies and gaps  Evolution and implementation of regulatory framework  Henson & Jaffee, 2006; Henson & Reardon, 2005; Buzbey & Frenzen, 1999; Buzbey, Frenzen, & Rasco, 2001; Antle, 1999; Roberts & Marks, 1995.  Impact of SPS and TBT on trade  Hooker & Caswell, 1999; Maskus & Wilson, 2001a, 2001b; Otsuki, Wilson, & Sewadeh, 2001.  Welfare effects of food standards  Calvin & Krissoff, 1998; Kumar & Kumar, 2003; Moenius, 2004; Otsuki et al., 2001; Paarlberg & Lee, 1998.
  • 4. International Food Policy Research Institute Past studies and gaps  Consumers’ willingness to pay for food safety attributes  Roberts, 2007; Rozan, Stenger, & Willinger, 2004; Zhiang, Mao, & Gale,2007;Goldberg and Roosen, 2007; Annett et al., 2008; Roy et al., 2010.  Cost of compliance-focused on processing  Gould, Smukowski, & Bishop, 2000; Jensen & Unnevehr, 2000; Mortlock, Peters, & Griffith, 2000.  Majority of these studies carried out in developed countries  Studies in developing countries context are scarce  status of adoption  cost of compliance  determinants for adoption and  impact on performance
  • 5. International Food Policy Research Institute Potential Sources of Food Safety Hazards Agri Input Supply Farming Assembly Storage Processing Value addition Wholesaling Export/Import Retailing Consumption Sale of banned or restricted pesticides Contaminated water and soils Improper storage, drying and pest control Contaminated water Improper storage Contaminated water Seed borne and animal born diseases Improper pesticide application Poor waste management Use of banned food additives/substances Unhygienic transport Poor sanitation Improper waste water management Improper animal health practices Industrial pollutants Poor sanitation Improper handling and packaging Improper storage Industrial pollution Unhygienic handling and transport Cross contamination Use of prohibited chemicals Improper packaging Inadequate pollution control and waste management
  • 6. International Food Policy Research Institute Food safety and the Indian domestic market Consumers 19th Century 20th Century 21st Century Emphasis on staples Food security Food adulteration Traditional recipes, locally produced food Knowledge of food benefits limited Eat to sustain body function and enjoyment Protect public from food supposed to cause illness and death Diversification towards HVF and perishables Global food supply Processed food-complex products & ingredients Increased awareness about link between diet and health Eat to enhance health and quality of life Demand for regulated safe food and information
  • 7. International Food Policy Research Institute Food safety and Indian export market Country Items European communities Lack of harmonization of egg products standards Different MRLs for pesticides, drugs and other contaminants Russian Federation Problem in market access for bovine meat, egg products, and ban on plant products China Delay in finalization of protocols, Approval of processing units for meat, market access for basmati rice Japan Stringent plant quarantine procedures, unfair trade practices for flowers, ban on import of fresh grapes
  • 8. International Food Policy Research Institute Food safety and Indian export market Country Items USA Mangoes (HCC), Litchi (AMF), Pomegranate, Grapes ((Use of Sulphur Pads), organic standards Australia Ban on mango and other fruits (fruit flies and weevil) New Zealand Ban on mango and other fruits (fruit flies and weevil) Mexico Market access for Basmati rice
  • 9. International Food Policy Research Institute Why Regulate?  Ensure safety of food produced/manufactured  Ensure consumer gets what he pays for  Protect consumer from being misled
  • 10. International Food Policy Research Institute How? By ensuring 1. Hygiene and Safety of Food Manufactured 1. Safety of ingredients 2. Safe level of usage of Additives (chemicals) 3. Safe level of nutrient addition 2. Proper Consumer information and ways & means to Trace the Product - Labeling Regulation 3. Consumers are not misled – Claim Regulation
  • 11. International Food Policy Research Institute Responsibility lies with all stakeholders 1. Regulators /Advisors 2. Industry 3. Consumer 4. Scientists & researchers
  • 12. International Food Policy Research Institute Governance  Domestic market  Department of health  Export  EIC  APEDA/MPEDA  Import  Quarantine  Entry points  Nodal agencies
  • 13. International Food Policy Research Institute Measures for Food Safety Compliance  Export inspection council of India  Quality control and pre-shipment inspection to ensure minimum standards  1000 products have been notified  Export certification are mandatory for dairy, poultry, egg, meat and meat products  System of export inspection and certification  Consignment –wise inspection  System based approach for in-process quality control  Self-certification  Food safety management system based certification ……..
  • 14. International Food Policy Research Institute Challenges of Food Safety Compliance  Policy and regulatory environment  Smallholder agriculture  Weak extension systems  Poor infrastructure and services in the marketing system  Cultural issues  Inadequate grades and standards for domestic market and poor enforcement  Dominance of informal markets  Lack of pro-activity in addressing food safety issues  Huge investment  Increase in cost which may affect competitiveness  To build trained manpower  Impact on trade flow  Social conflict
  • 15. International Food Policy Research Institute Impact on industry structure  Small firms may become suppliers to large firms and may go out of business.  The standard appears to favour larger establishments, not because of economies of scale but also because of the infrastructure facilities required by such standards.
  • 16. International Food Policy Research Institute Challenges for smallholders  How to produce safe food  How to be recognized as producing safe food  How to be competitive  How to deal with asymmetry of information about consumer demands and safety
  • 17. International Food Policy Research Institute Opportunities  National market of more than 1.3 billion people  Structural change in demand towards HVCs  Better market access for expanding global food trade  Higher price in world market  Expanding market of functional foods
  • 18. International Food Policy Research Institute Constraints/problems in implementation  Lack of Transparency  Complexity of SPS standards  Varying threshold limits  Insufficient participation in standard setting process  Irrelevance of the standard to the production environment  Domestic regulatory problems  Infrastructure and resource related problems
  • 19. International Food Policy Research Institute Determinants for Food Safety Compliance  Education/skill  Scale  Integration with modern chains  Collective action  Infrastructure  Price
  • 20. International Food Policy Research Institute  Consumers  Ability  Willingness  Producers  Efficiency  Access to markets  Government  Funding aid programmes  Creating infrastructure Who should bear the additional cost?
  • 21. International Food Policy Research Institute NationalCentreforAgriculturalEconomicsandPolicyResearch,NewDelhi Anjani Kumar Policy Implications  Scale of production and compliance  Adoption intensity non-neutral to scale  Predominance of smallholders likely to continue  Motivation of encouraging smallholders for higher adoption of food safety practices  Cost of compliance and smallholders  Cost of compliance against interest of smallholder farmers  Economies of scale in the adoption of food safety measures could exclude smallholders  Funding and policy support of the government to minimize the cost burden for the smallholders  Adoption intensity and market price of produce  Positive association between price and adoption intensity  Expenditure incurred on compliance does have a payoff
  • 22. International Food Policy Research Institute Thank you

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