This presentation talks about the future of food biotechnology, consumer perspective and its Scope in India

1. Future of Food Biotechnology,
Consumer Perspectives,
and Scope in India
Presented by:
Antra Fuloria-15
Surbhi Agarwal-21
Shriya Verma-52
Priyanka Kumari-35
Judith Anne Johnson-10

2. What is Farming?
• It is the activity or business of growing crops and raising
livestock.

3. What is Food Technology?
• Food technology is the application of food science to the
selection, preservation, processing, packaging,
distribution, and use of safe food.
• Related fields include analytical chemistry,
biotechnology, engineering, nutrition, quality control, and
food safety management.

4. What is Food Biotechnology?
• Food biotechnology is the science of employing the tools of modern
genetics to enhance beneficial traits of plants, animals, and
microorganisms.
• This enhances the traditional method of crossbreeding, or combining
different varieties of plants or animal species to bring out specific
traits.
• This breeding process, which also occurs in nature, has been used by
farmers in crop production for centuries.
• In the last 20-30 years, this method has been enhanced through
biotechnology to allow for faster, more accurate results.
• More recently, producers have utilized recombinant DNA, in which
the DNA from one plant, animal, or microorganism is transferred to
another in order to introduce new, desirable traits.

5. Why do we need genetically
modified food?
• Meeting the needs of a growing population: Thomas Malthus
(1803)predicted that population growth would inevitably
outpace resource production,and therefore that misery(hunger
& starvation)would endure. Undoubtedly, application of
science and technology in agriculture and food and beverage
manufacturing has negated these predictions and fed population
growth .

6. Extended shelf life
• The first steps in genetic modification were for food producers to
ensure larger profits by keeping food fresher, longer.
• This allowed for further travel to and longer availability at markets,
etc
• Example: This transgenic tomato (FlavrSavr) had a "deactivated"
gene (Antisense approach).
• This meant that the tomato plant was no longer able to produce
polygalacturonase, an enzyme involved in fruit softening.
• The premise was that tomatoes could be left to ripen on the vine and
still have a long shelf life, thus allowing them to develop their full
flavour. Normally, tomatoes are picked well before they are ripe and
are then ripened artificially.
• These tomatoes were the first GM fruit sold in the US and were sold
as tomato purée in the UK. Apples, raspberries and melons with
delayed ripening have also been developed.

8. High nutritive value
● Some plants, during processing, lose some of the vital
nutrients they once possessed.
● Others are grown in nutrient poor areas.
● Both these problems can be solved by introducing genes into
plants to increase the amount or potency of nutrients.
● This is called as ,“Biofortification”
● Examples:
● "Golden rice" – enrichment with carotenoids (provitamin A):
This project produced a rice cultivar with enhanced levels of
beta-carotene and other carotenoids, which are metabolic
precursors of vitamin A. Because rice naturally contains only a
negligible amount of beta-carotene, vitamin A deficiency is
widespread in regions of the world where rice is a staple food.

9. Some more examples:
• Modified oil content and composition (e.g. polyunsaturated fatty acids such as
linoleic acid, laureic acid) for maize, soybeans, rapeseed and other oil crops:
These modified crops could be important in the fight against cardiovascular
disease, obesity, and certain forms of cancer.
• Higher content of protein or amino acids, or modified amino acid composition for
enhanced nutritional value: For example, a GM potato was developed in India
containing one third more protein including essential, high quality nutrients. The
novel gene came from the protein-rich amaranth plant. Another example
is LY038, a maize line with enhanced lysine content for improved animal feed
quality. It is now awaiting authorisation in the EU.
• Gluten-free wheat: Celiac sprue patients cannot tolerate the protein gluten
(something similar to an allergy).
• Higher levels of beneficial antioxidant compounds (e.g. lycopene, flavinols found
in tomato) to prevent cardiovascular diseases and certain forms of cancer.
• Elimination or reduction of undesirable substances like allergens or toxic
substances (e.g. caffeine, nicotine).

11. Herbicide/Pest/Disease
resistance
• Resistant to non selective herbicides/insecticides.
• Also facilitate low or no tillage agricultural practices.
• Can manage weeds without the need of some of the more
environmentally damaging herbicides.

12. Resistance against
herbicides/pests/disease
s examples:• Corn
Almost 85 perecent of corn grown in the U.S. is genetically modified. Even
Whole Foods’s brand of corn flakes was found to contain genetically modified
corn. Many producers modify corn and soy so they are resistant to the herbicide
glyphosate, which is used to kill weeds.
• Yellow Crookneck Squash and Zucchini
Numbers of this GMO veggie are relatively small, but genetically modified
yellow squash and zucchini can be found in two different species in the U.S. The
species contain protein genes that protect against viruses.
• Alfalfa
Cultivation of genetically engineered alfalfa was approved in 2011, and consists
of a gene that makes it resistant to the herbicide Roundup, allowing farmers to
spray the chemical without damaging the alfalfa.

13. To increase production
• Milk
To increase the quantity of milk produced, cows are often
given rBGH (recombinant bovine growth hormone),
which is also banned in the European Union, as well as
inJapan, Canada, New Zealand and Australia.

14. Biopharming
• Some of the most exciting advances in genetically altered plants are
for non-food sources. Edible vaccinations are one such area.
• The genetic engineering of plants has the potential to provide edible
plant vaccines that could be used to immunize individuals against a
wide variety of infectious diseases ranging from cholera to
potentially AIDS.
• One such example:
• the transgenic potato plants that have been produced and tested
successfully by utilizing a genetically engineered food to deliver a
pharmaceutical immunization against diarrhea.

16. Food safety refers to all those hazards, whether chronic or acute, that may
make food injurious to the health of the consumer. It is not negotiable.
Quality includes all other attributes that influence a product’s value to the
consumer. This includes negative attributes such as spoilage,
contamination with filth, discoloration, off-odours and positive attributes
such as the origin, colour, flavour, texture and processing method of the
food
FOOD SAFETY AND FOOD
QUALITY

17. Food and Drug Administration
The Food and Drug Administration (FDA or USFDA) is a
agency of the United States Department of Health and
Human Services.
The FDA is responsible for protecting and promoting public
health through the regulation and supervision of food safety
and dietary supplements and animal foods & feed[5]
TheUnited States Department of Agriculture (USDA),is responsible
for developing and executing policy on farming, agriculture, forestry,
and food.
It aims to meet the needs of farmers and ranchers, promote agricultural
trade and production, work to assure food safety, protect natural
resources, foster rural communities and end hunger in the United
States and internationally.

18. The Food Safety and Standards Authority of
India (FSSAI) is an agency of the Ministry of Health &
Family Welfare, Government of India. The FSSAI is
responsible for protecting and promoting public
health through the regulation and supervision of food safety

19.  Multiple food laws
 Varied quality/safety standards
 Rigid and non responsive standards
 Poor information dissemination to consumers
Pre FSSAI Scenario

20.  Nine different laws and eight different
ministries governing the food sector
 Laws framed by different Ministries/Depts.
With different perspective and enforcement
approach
 Overlapping laws with different quality
standards & labelling requirements

21. 1
• To consolidate multiple laws and establish
single point reference system
2
• To establish Food Safety and Standards
Authority
3
• To regulate the manufacture, storage,
distribution, sale and import of food products
4
• To ensure availability of safe and wholesome
food for human consumption
Objectives of FSSA

23. Consumer perceptions about the effectiveness of food safety authorities.
Vijesh V. Krishna, and Matin Qaim Appl. Econ. Perspect.
Pol. 2008;30:233-251
©2008 by Oxford University Press

24. Packaging and Labeling Regulations
General Requirements and Manner of Labeling.
• The name of Food and List of Ingredients.
• Nutritional Information.
• Declaration regarding Veg or Non-veg.
• Declaration regarding Food Additives.
• Name of Manufacturer or packer and Country of Origin.
• Net Quantity.
• Lot No. /Batch No./Code No.
• Date of manufacture or packing and Best Before or Use By Date.
• Instructions for Use.
• Specific Requirements and Manner of Labeling for Infant Milk Substitute
and Infant Foods.
• Specific Labeling Requirements of edible oils and fats, permitted food
colors and irradiated foods.
• Specific Requirements and Manner of Labeling of Other Food Products.
• Specific Restrictions on product labels and advertisement.
• Exemptions from labeling requirements.

25. Consumer
the lens through which
we see the world...
But how do we evaluate a consumer’s view?
Perspective
s

26. Conceptual framework for consumer attitudes toward Bt vegetables
and pesticide residues.
Vijesh V. Krishna, and Matin Qaim Appl. Econ. Perspect. Pol. 2008;30:233-251
©2008 by Oxford University Press

27. • Developed countries show more acceptance for
Genetically Modified products. Typically USA.
• However, In Europe, there is a strong opposition
to GM food products.
Europeans on an average place a 23-43% premium
on Non GMO’s.
Source: Plant Biotechnology and Agriculture: Prospects for the 21st Century
By Arie Altman, Paul M. Hasegawa
Regional
Differences

28. The Indian Scenario-
Biotech chapattis
• Research by Anand, Mittelhammer and McCluskey(2007)
• Sample size, n=600 (Delhi and Patna)
• Methodology: Personal interviews on acceptance of GM
wheat
Information provided Observation
When no information is
provided
Consumers WTP a slight
premium
When “Producer-friendly
information” given
WTP increased
When information about
health hazards told
Reacted negatively

29. • It shows Lack of awareness about GM
crops in India
• African continent shows a similar trend.

30. Consumer perceptions of
food biotechnology in Asia:
2008 consumer survey
By
AFIC, The Asian Food
Information Centre
Discussing important findings of:
For India,
Sample Size,
n =204(From New Delhi)

36. What influences result
analysis of a survey?
• Lack of Awareness among consumers
• Manipulative questions
• Sample size
• Sample bias: Most surveys cover urban population
• Personal interests of enterprises or political parties or
government
• Paid Research Papers... So only old resarches studied for
this study.

41. • ‘Producers’ are
becoming ‘consumers’
Farmers are unable to buy
expensive GM seeds.

42. Why do farmers oppose
GMOs?
• Discriminating buyers
• Inferior crops
• Contaminate natural
crops and seeds
• Extensive use of
synthetic chemicals,
insecticides and fossil
fuels
• Corporate control

44. • Questioning the
very ‘vegetable’
nature of
plants.

46. Regulatory agencies for food
safety

49. FOOD PROCESSING IN INDIA

50. INTRODUCTION
MARKET SIZE AND STATISTICS
• India is the world’s second–largest producer of fruits and vegetables
• India and is ranked fifth in terms of production, consumption, export and expected
growth.
• India is the single largest producer of milk in the world, with the production
estimated at 137.7 MT.
• 14 per cent of manufacturing Gross Domestic Product (GDP)
• 13 per cent of India’s exports and six per cent of total industrial Investment.
• Indian food service industry is expected to reach US$ 78 billion by 2018.The Indian
gourmet food market is currently valued at US$ 1.3 billion and is growing at a
Compound Annual Growth Rate (CAGR) of 20 per cent. It is expected to cross US$
2.8 billion by 2015.
• Food Processing Industry is one of the major employment intensive segments
contributing 13.04% of employment generated in all Registered Factory sector in
2012-13.
• Food is the biggest expense for an urban and rural Indian household constituting
share of 38.5% and 48.6% of the total consumption expenditure of households in
2011-12 respectively.

51. REASONS TO INVEST
• 195.25 Million Hectares of Gross Cropped Area.
• 65.26 Million Hectare of Net Irrigated Area.
• 127 agro-climactic zones.
• 138 cold chain projects are being set up to develop supply chain
infrastructure.

52. GROWTH DRIVERS
Food
Processing
Demand
Drivers
Growing nuclear
families and working
women
Rising demand for
functional food
(oatmeal, etc)
Increasing modern trade
formats and private label
penetration
Increasing
urbanization –
lifestyle and
aspirations
Changing
demographics – Rise in
disposable incomes
Increasing
spending on food
products

53. INDUSTRY SEGMENTATION
The major Food Processing
Industries in India are:
• Fruits and vegetables processing
industry
• Seeds and grains
• Marine products
• Meat products
• Milk and milk products

54. SHARE OF FOOD IN CONSUMER SPENDING ACROSS INCOME
CLASS

55. MOFPI

56. GOALS OF MOFPI
• Better utilization and value addition of agricultural produce
• Minimizing wastage at all stages in the food processing chain
• Induction of modern technology into the food processing
industries
• Encourage R&D in food processing for product and process
development
• Improved packaging;
• Provide policy support, and support for creation of
Infrastructure,
• Promote export of processed food products.

57. SCHEMES STARTED BY MOFPI
 Mega food park
 Cold chain, value addition and preservation infrastructure
 Setting up / modernization of abattoirs

58. Mega food park;
• Aims at maximum value addition, minimum wastage,
increase farmer’s income and create employment in
rural sector.
• Harsimrat Kaur Badal, has inaugurated the first of its
kind Rs 136 crore (US$
21.76 million) mega international food park at
Dabwala Kalan, Punjab.
Cold chain, preservation
infrastructure
 Total of 49 projects have been planned across the
country, of which 10 are in progress
 setting up integrated and complete cold chain
facilities, preservation infrastructure facilities, value
addition facilities, and irradiation facilities
Funding in 12th Five Year
plan (2012-17), $M
677
349
58
Mega Food
Parks
Integrated
cold chains
Modernizat
ion of
abattoirs

59. Government Initiatives
Some of the major initiatives taken by the Government of India to
improve the food processing sector in India

60. • Union Budget 2016-17 has proposed 100 per cent
FDI through FIPB (Foreign Investment Promotion
Board) route in marketing of food products
produced and manufactured in India.
• All of the ration cards in India have been
digitised and 42 per cent of the digitised ration
cards are now linked to Unique Identification
(UID) or Aadhaar cards.
• Government of India plans to allow two Indian
dairy companies, Parag Milk Foods and
Schreiber Dynamix Dairies, to export milk
products to Russia for six months, after these
companies got approval for their products by
Russian inspection authorities.

61. • The Food Safety and Standards Authority of India
(FSSAI) has issued new rules for importing products, to
address concerns over the entry of sub-standard items
and simplify the process by setting shelf-life norms and
relaxing labelling guidelines.
• The Food Safety and Standards Authority of India
(FSSAI) under the Ministry of Health and Family
Welfare has issued the Food Safety and Standards
(Food Product Standards and Food Additives)
Regulations, 2011 and the Food Safety and Standards
(Contaminants, Toxins and Residues) Regulations, 2011
which prescribe the quality and safety standards,
respectively for food product
• The Ministry of Food Processing Industries has taken
some new initiatives to develop the food processing
sector which will also help to enhance the incomes of
farmers and export of agro and processed foods among
others.

62. • Spices Board, set up by the Ministry of Commerce to develop
and promote Indian spices worldwide, aims spice exports of
US$ 3 billion by 2017. and value added products globally
under the brand names ‘Spices India’ and ‘Flavourit’ by
opening premium retail outlets abroad in partnership with
private investors.
• The Government of India has approved the setting up of five
numbers of Mega Food Parks in the states of Bihar,
Maharashtra, Himachal Pradesh and Chhattisgarh. The
Government plans to set up 42 such mega food parks across
the country in next three to four years.
• In the Budget 2015-16, a corpus of Rs. 2,000 crore (US$
293.44 million) was created under National Bank for
Agriculture and Rural Development (NABARD) to provide
cheaper credit to food processing industry. Excise duty on
plant and machinery for packaging and processing has been
brought down to six per cent from 10 per cent

64. • Deduction of expenditure:
• 1. Businesses permitted 100% deductions:
a) Setting up and operating a cold chain facility.
b) Setting up and operating warehousing
facilities for storage of agricultural produce.
• 2. Businesses permitted 150% deduction, provided
the taxpayer has commenced business on or after the
Ist of April, 2012.
a) Beekeeping and the production of honey and
beeswax.
b) The setting up and operation of a
warehousing facility for the storage of sugar.

65. • Exempted activities:
• Service tax may not be levied on items contained in the
negative list. These are services including processes
carried out at an agricultural farm including tending,
pruning, cutting, harvesting, drying, cleaning, trimming,
sun-drying, fumigating, curing, sorting, grading, cooling
or bulk packaging and such operations which do not alter
the essential characteristics of agricultural produce but
make it only marketable for the primary market.
• Service tax is exempted in the following instances:
• Mechanized food grain handling system, machinery or
equipment for units processing agricultural produce as
foodstuff, excluding alcoholic beverages
• Services provided by goods transport agencies for
transportation of fruit, vegetables, eggs, milk, food grains
or pulses in a goods carriage.
• Services such as loading, unloading, packing, storage or
warehousing of agricultural produce.

66. • This tax incentive is available at the rate of 100% tax
exemption for the first 5 years of operations. After 5
years, the rate is 25% of the profits. However, in the
case of a company, the rate of tax is 30% of profits,
after 5 years of operations. This benefit is available
only for ten years provided that such business has
commenced with effect from the 1st of April, 2001.
• This incentive is provided for new units in the
business of processing, preservation and packaging of
fruits or vegetables, meat and meat products, poultry,
marine or dairy products. However, in the case of
businesses relating to meat, meat products, poultry,
marine products or dairy products, the above
incentive is available to only those units who have
started their production after the 1st of April, 2009

67. • Projects for the installation of mechanized food grain
handling systems and pallet racking systems in mandis
(agricultural produce markets) and warehouses for food
grains and sugar.
• Cold storage, cold rooms (including facilities for farm
level pre-cooling) or industrial projects for the
preservation, storage or processing of agricultural
produce, apiaries, horticultural production, dairy, poultry,
marine produce and meat.
• Consequently, all goods related to food processing,
imported as part of the project, irrespective of their tariff
classification, would be entitled to uniform assessment at
a concessional customs duty of 5%, plus countervailing
duties as applicable.

68. • Food Products:
• Nil excise duty in milk, milk products, vegetables, nuts & fruits –
both fresh and dried.
• Against a standard excise duty of 12%, processed fruits and
vegetables carries a merit rate of 2% without CENVAT or 6% with
CENVAT.
• Food Processing Machinery:
• All refrigeration machinery and parts used for the installation of cold
storage, cold room or refrigerated vehicles for the preservation,
storage, transport or processing of agricultural, apiary, horticultural
and marine produce as well as dairy and poultry, are exempt from
excise duty.
• Machinery for pasteurising, drying, evaporating, etc. used in the
dairy sector is exempt from excise duty

69. Investments

70. Some of the major investments in this sector in the recent past are:
• Swiggy, a food delivery start-up owned by Bundl Technologies
Private Limited, has raised Rs 230.34 crore (US$ 33.80 million) in a
Series C funding round, with its existing investors SAIF Partners,
Accel Partners, Norwest Venture Partners and Apoletto Asia Ltd
contributing 79 per cent of the new funds raised.
• Gujarat Cooperative Milk Marketing Federation (GCMMF), popularly
known as 'Amul', plans to invest Rs 5,000 crore (US$ 733.6 million)
to establish ten new processing plants as well as expand the current
capacity to touch 32 million litres per day (MLPD) capacity by 2020.
• American doughnut chain Dunkin' Donuts has tied up with local
online grocery delivery platform Grofers for home-delivery of its
packaged and freshly made products.

71. • Private Equity (PE) firm India Value
Fund Advisors (IVFA) plans to invest
around US$ 100-150 million in the food
business in India over the next two
years.
• Mahindra & Mahindra's (M&M) agri-
commodities division has announced its
entry into pulses retailing under the
brand ‘NuPro’ with Tur dal being the
first offering under the brand.
• Zomato, a restaurant search and
discovery platform, has raised US$ 60
million from Singapore government-
owned investment company Temasek,
along with existing investor Vy Capital,
in order to explore new business
verticals.
• ITC Limited plans to invest Rs 800
crore (US$ 117.4 million) to set up a
world-class food processing facility in
Medak, a district located in Telangana.
The company has also formulated plans
to enter the dairy market

73. References:
• http://www.greenpeace.org/india/Global/india/report/GM
_Food_Security_Brief.pdf
• http://www.fewresources.org/gmos--biotechnology.html
• http://www.ilsi-india.org/Conference-on-biotechnology-
based-sustainable-
agriculture/Session%20III/Dr.%20George%20Fuller.pdf
• Plant Biotechnology and Agriculture: Prospects for
the 21st Century
By Arie Altman, Paul M. Hasegawa(Google Books)
• http://re.indiaenvironmentportal.org.in/files/Consume
r-perceptionsIndia.pdf