Quality Issues in Agricultural

Presenter
Chandrmouli Singh
Institute of Agri Business Management Bikaner

19
Decembe
r 2013

MBA (AB) I Year
1
Outline


What is Quality



Quality Parameters for Agricultural Produce



Issues



Impact



Possible Solutions



Conclusion



References

Institute of Agri Business Management Bikaner

19
Decembe
r 2013

2
What is Quality


“Conformation to Specification”

Philip Crossby


Quality is the totality of features and
characteristics of a product or service that bear
on its ability to satisfy stated or implied needs

(ISO 8402/ISO 9000)

Institute of Agri Business Management Bikaner

19
Decembe
r 2013

3
Quality Parameters


ISO Family
 ISO

9001:2000

 ISO

15000:1998

 ISO

14001:2004

 ISO

22000:2005



AGMARK



HACCP

Institute of Agri Business Management Bikaner

19
Decembe
r 2013

Contd.
4


BRC



IFS



CODEX



SQF 2000



OHSAS 18001

Institute of Agri Business Management Bikaner

19
Decembe
r 2013

5

Contd.


Food Safety and Standard Act, 2006
 PFA,1954
 Essential Commodity Act,
 Fruit

Product Order

 Marine Food

Product Order

 Vegetable and
 Edible Oil
 Milk

1955

Oil (control) Order

Packaging (regulation) Order

and Milk Produce Order

Institute of Agri Business Management Bikaner

19
Decembe
r 2013

6
Issues

Institute of Agri Business Management Bikaner

19
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r 2013

7
Ban on Imports


Indian mangoes arrive in the U.S. after long
hiatus ( May 1, 2007, CNN Money)



Trouble spells for corn exporters as Vietnam
rejects shipments ( December 23, 2011 Business
Line)



After 2 years, city grapes to be served on German
tables (March 3, 2012 The Times of India)



Japan rejects prawn order, Odisha exporters
worried (September 27,2012 The Indian Express)

Institute of Agri Business Management Bikaner

19
Decembe
r 2013

Cont.
8


US rejects India's basmati exports due to
pesticides, price falls 23.5% (September 24, 2012
www.fbnews.com)



EU rejects three okra consignments from India
(November 29, 2012 Business Line)



Groundnut exporters' woes continueRussia's ban on groundnut imports from India
raises quality concern ( April 23,2013 Business
Standards)

Institute of Agri Business Management Bikaner

19
Decembe
r 2013

9
Lack of Awareness Among People
Table I: Awareness about the types of certificates
Certifications

Exporters and
Promoters

Customers

Retailers

ISO:9001:2000

96.84

85

90.63

HACCP

24.21

64

93.75

BRC

11.58

10

34.37

ISO:22000:2005

12.63

68

68.75

-

5

18.75

IFS

3.16

6

15.63

GMP

1.05

12

56.25

Global GAP

1.05

6

28.13

SQF 2000

Source: Sharma. Rajesh. Sharma Madhu. And Divashree. (2009) Awareness and
Status of Food Safety Certificates in India. National Conference on “Innovative
Marketing Strategies: Current Trends”. Pg 391-398
19
Institute of Agri Business Management Bikaner

Decembe
r 2013

10
Health Related Issues
Table II: Top five pathogens contributing to domestically acquired
food borne illnesses
Pathogen

Estimated number of illnesses

Norovirus

54,61,731

Salmonella, nontyphoidal

10,27,561

Clostridium perfringens

9,65,958

Campylobacter spp.

8,45,024

Staphylococcus aureus

2,41,148

Source: http://www.cdc.gov/foodsafety/facts.html
Institute of Agri Business Management Bikaner

19
Decembe
r 2013

11
Impact

Institute of Agri Business Management Bikaner

19
Decembe
r 2013

12
Loss to Nation and Farmers


50% decline in Grape export which cost about ₹
535.34 cr. (2010-11)



US rejected Okra of ₹51 cr. (2010-11)



Vietnam rejected ₹91.74 cr. corn (2011-12)



Shrimp of ₹
177 cr. rejected by Japan (2011-12)



Every year 20% of Indian consignments get
rejected which cost about ₹17221.36 cr.

http://agriexchange.apeda.gov.in/indexp/18headgenReportmonth.aspx#content
Institute of Agri Business Management Bikaner

19
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r 2013

13
Effect on Trade Relationship
Graph I: India Export of Principle Commodities Value in ₹ Cr (2011KUWAIT
12)
2%
Total: ₹86018.261Cr.
BANGLADESH PR
3%
MALAYSIA
4%
INDONESIA
5%
SAUDI ARAB
7%

IRAN
4%

NIGERIA
2%

others
39%

UAE
8%

USA
18%
VIETNAM SOC REP
8%

Contd.

http://agriexchange.apeda.gov.in/indexp/18headgenReportmonth.aspx#content
Institute of Agri Business Management Bikaner

19
Decembe
r 2013

14
Graph II: Major importing countries of Grape and exported value in lakh ₹
18000
16000
14000
12000
10000
8000
6000
4000
2000
0

14092.24

13989.1

12440.29

6448.44

5490.48
4092.24

3531.1

2009-10
2010-11
2011-12

http://agriexchange.apeda.gov.in/Market%20Profile/MOA/Product/GRAPES.pdf
19
Institute of Agri Business Management Bikaner

Decembe
r 2013

15
Expenses on Illness


Estimated cost of food borne illness in USA $152 billion annually



Indian scenario
Total no. of labours
in India

487 million

Average sick leave

7-10 days

3409 million

If we pay

₹ 100 only

₹340900 million

http://www.njeha.org/pdf/Michelle%20Malavet%20-%20Foodborne%20Illness%20Prevention.pdf
http://www.citehr.com/17068-leaves-per-law-company-policy.html
19
http://en.wikipedia.org/wiki/Labour_in_India

Institute of Agri Business Management Bikaner

Decembe
r 2013

16
Some Facts


With investment of ₹
17221.36 cr.



We can make
 Fund
 Mid

for ICDS (₹17700 cr.)

Day Meal Scheme (₹
13215 cr.)

 Rastriya Madyamik
 Medical Education

Institute of Agri Business Management Bikaner

19
Decembe
r 2013

Siksha Abiyan (₹3983 cr.)

and training (₹4727 cr.)

17
Possible Solutions


Role of APEDA



Global GAP



Formulation of new standards



Post Harvest Technology

Institute of Agri Business Management Bikaner

19
Decembe
r 2013

18
Conclusion


We need to create awareness among people about
Food Safety Certification



Short term training program and up-dated
literature may reduce losses due to ban



We need to control post harvest losses to secure
better quality production

Institute of Agri Business Management Bikaner

19
Decembe
r 2013

19
References


Sharma. Rajesh. Sharma Madhu. And Divashree. (2009)
Awareness and Status of Food Safety Certificates in India.
National Conference on “Innovative Marketing Strategies:
Current Trends”. Pg 391-398



Magazine: Agribusiness and Food Industry



Production and Operation Management: Kanishka Bedi



http://www.citehr.com/17068-leaves-per-law-companypolicy.html



http://agriexchange.apeda.gov.in/indexp/18headgenReport
month.aspx#content



http://www.cdc.gov/foodsafety/facts.html

Institute of Agri Business Management Bikaner

19
Decembe
r 2013

20


www.cert-int.com/



http://mofpi.nic.in/



http://www.iso.org/



http://www.standardsglossary.com/



http://www.fao.org/



www.indiastat.com/



http://www.thehindubusinessline.com/industry-andeconomy/agri-biz/trouble-spells-for-corn-exporters-asvietnam-rejects-shipments/article2741758.ece



http://www.downtoearth.org.in/node/290

Institute of Agri Business Management Bikaner

19
Decembe
r 2013

21


http://newindianexpress.com/states/odisha/article1274751.e
ce



http://news.agropages.com/Feature/FeatureDetail--911.htm



http://www.hindu.com/2009/06/15/stories/2009061556581
800.htm



http://www.globalgap.org/uk_en/what-we-do/the-ggsystem/certification/list-of-accreditation-bodies/

Institute of Agri Business Management Bikaner

19
Decembe
r 2013

22
“Quality is never an accident, it is always
the result of intelligent effort”

Institute of Agri Business Management Bikaner

19
Decembe
r 2013

23

Quality issues in agriculture

  • 1.
    Quality Issues inAgricultural Presenter Chandrmouli Singh Institute of Agri Business Management Bikaner 19 Decembe r 2013 MBA (AB) I Year 1
  • 2.
    Outline  What is Quality  QualityParameters for Agricultural Produce  Issues  Impact  Possible Solutions  Conclusion  References Institute of Agri Business Management Bikaner 19 Decembe r 2013 2
  • 3.
    What is Quality  “Conformationto Specification” Philip Crossby  Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs (ISO 8402/ISO 9000) Institute of Agri Business Management Bikaner 19 Decembe r 2013 3
  • 4.
    Quality Parameters  ISO Family ISO 9001:2000  ISO 15000:1998  ISO 14001:2004  ISO 22000:2005  AGMARK  HACCP Institute of Agri Business Management Bikaner 19 Decembe r 2013 Contd. 4
  • 5.
     BRC  IFS  CODEX  SQF 2000  OHSAS 18001 Instituteof Agri Business Management Bikaner 19 Decembe r 2013 5 Contd.
  • 6.
     Food Safety andStandard Act, 2006  PFA,1954  Essential Commodity Act,  Fruit Product Order  Marine Food Product Order  Vegetable and  Edible Oil  Milk 1955 Oil (control) Order Packaging (regulation) Order and Milk Produce Order Institute of Agri Business Management Bikaner 19 Decembe r 2013 6
  • 7.
    Issues Institute of AgriBusiness Management Bikaner 19 Decembe r 2013 7
  • 8.
    Ban on Imports  Indianmangoes arrive in the U.S. after long hiatus ( May 1, 2007, CNN Money)  Trouble spells for corn exporters as Vietnam rejects shipments ( December 23, 2011 Business Line)  After 2 years, city grapes to be served on German tables (March 3, 2012 The Times of India)  Japan rejects prawn order, Odisha exporters worried (September 27,2012 The Indian Express) Institute of Agri Business Management Bikaner 19 Decembe r 2013 Cont. 8
  • 9.
     US rejects India'sbasmati exports due to pesticides, price falls 23.5% (September 24, 2012 www.fbnews.com)  EU rejects three okra consignments from India (November 29, 2012 Business Line)  Groundnut exporters' woes continueRussia's ban on groundnut imports from India raises quality concern ( April 23,2013 Business Standards) Institute of Agri Business Management Bikaner 19 Decembe r 2013 9
  • 10.
    Lack of AwarenessAmong People Table I: Awareness about the types of certificates Certifications Exporters and Promoters Customers Retailers ISO:9001:2000 96.84 85 90.63 HACCP 24.21 64 93.75 BRC 11.58 10 34.37 ISO:22000:2005 12.63 68 68.75 - 5 18.75 IFS 3.16 6 15.63 GMP 1.05 12 56.25 Global GAP 1.05 6 28.13 SQF 2000 Source: Sharma. Rajesh. Sharma Madhu. And Divashree. (2009) Awareness and Status of Food Safety Certificates in India. National Conference on “Innovative Marketing Strategies: Current Trends”. Pg 391-398 19 Institute of Agri Business Management Bikaner Decembe r 2013 10
  • 11.
    Health Related Issues TableII: Top five pathogens contributing to domestically acquired food borne illnesses Pathogen Estimated number of illnesses Norovirus 54,61,731 Salmonella, nontyphoidal 10,27,561 Clostridium perfringens 9,65,958 Campylobacter spp. 8,45,024 Staphylococcus aureus 2,41,148 Source: http://www.cdc.gov/foodsafety/facts.html Institute of Agri Business Management Bikaner 19 Decembe r 2013 11
  • 12.
    Impact Institute of AgriBusiness Management Bikaner 19 Decembe r 2013 12
  • 13.
    Loss to Nationand Farmers  50% decline in Grape export which cost about ₹ 535.34 cr. (2010-11)  US rejected Okra of ₹51 cr. (2010-11)  Vietnam rejected ₹91.74 cr. corn (2011-12)  Shrimp of ₹ 177 cr. rejected by Japan (2011-12)  Every year 20% of Indian consignments get rejected which cost about ₹17221.36 cr. http://agriexchange.apeda.gov.in/indexp/18headgenReportmonth.aspx#content Institute of Agri Business Management Bikaner 19 Decembe r 2013 13
  • 14.
    Effect on TradeRelationship Graph I: India Export of Principle Commodities Value in ₹ Cr (2011KUWAIT 12) 2% Total: ₹86018.261Cr. BANGLADESH PR 3% MALAYSIA 4% INDONESIA 5% SAUDI ARAB 7% IRAN 4% NIGERIA 2% others 39% UAE 8% USA 18% VIETNAM SOC REP 8% Contd. http://agriexchange.apeda.gov.in/indexp/18headgenReportmonth.aspx#content Institute of Agri Business Management Bikaner 19 Decembe r 2013 14
  • 15.
    Graph II: Majorimporting countries of Grape and exported value in lakh ₹ 18000 16000 14000 12000 10000 8000 6000 4000 2000 0 14092.24 13989.1 12440.29 6448.44 5490.48 4092.24 3531.1 2009-10 2010-11 2011-12 http://agriexchange.apeda.gov.in/Market%20Profile/MOA/Product/GRAPES.pdf 19 Institute of Agri Business Management Bikaner Decembe r 2013 15
  • 16.
    Expenses on Illness  Estimatedcost of food borne illness in USA $152 billion annually  Indian scenario Total no. of labours in India 487 million Average sick leave 7-10 days 3409 million If we pay ₹ 100 only ₹340900 million http://www.njeha.org/pdf/Michelle%20Malavet%20-%20Foodborne%20Illness%20Prevention.pdf http://www.citehr.com/17068-leaves-per-law-company-policy.html 19 http://en.wikipedia.org/wiki/Labour_in_India Institute of Agri Business Management Bikaner Decembe r 2013 16
  • 17.
    Some Facts  With investmentof ₹ 17221.36 cr.  We can make  Fund  Mid for ICDS (₹17700 cr.) Day Meal Scheme (₹ 13215 cr.)  Rastriya Madyamik  Medical Education Institute of Agri Business Management Bikaner 19 Decembe r 2013 Siksha Abiyan (₹3983 cr.) and training (₹4727 cr.) 17
  • 18.
    Possible Solutions  Role ofAPEDA  Global GAP  Formulation of new standards  Post Harvest Technology Institute of Agri Business Management Bikaner 19 Decembe r 2013 18
  • 19.
    Conclusion  We need tocreate awareness among people about Food Safety Certification  Short term training program and up-dated literature may reduce losses due to ban  We need to control post harvest losses to secure better quality production Institute of Agri Business Management Bikaner 19 Decembe r 2013 19
  • 20.
    References  Sharma. Rajesh. SharmaMadhu. And Divashree. (2009) Awareness and Status of Food Safety Certificates in India. National Conference on “Innovative Marketing Strategies: Current Trends”. Pg 391-398  Magazine: Agribusiness and Food Industry  Production and Operation Management: Kanishka Bedi  http://www.citehr.com/17068-leaves-per-law-companypolicy.html  http://agriexchange.apeda.gov.in/indexp/18headgenReport month.aspx#content  http://www.cdc.gov/foodsafety/facts.html Institute of Agri Business Management Bikaner 19 Decembe r 2013 20
  • 21.
  • 22.
  • 23.
    “Quality is neveran accident, it is always the result of intelligent effort” Institute of Agri Business Management Bikaner 19 Decembe r 2013 23

Editor's Notes

  • #18 Delhi Metro Project(₹19131 cr.)http://www.delhimetrorail.com/projectsupdate/project_cost.aspx86105 km of Bituminous Roadhttp://nptel.iitm.ac.in/courses/IIT-MADRAS/Infrastructure_Planning_Management/pdf/Class%209%20-%20Road%20Infrastructure%20Development%20in%20India.pdf