Prohibited Food Additives

Stevia as artificial sweetener and Sucralose in sugar marketed as Low Calorie Sugar are not permitted under PFARules, 1955, it has been notified to all States and Union Territories by FSSAI.

NEW FOOD ACT

Food Industry has been waiting for quite some time for the notification of new Food Regulations to enable the repealing of multiple food laws prevailing in India. The Food Safety and Standard Regulations have been notified and the same is effective on or after 5th August, 2011. With this the food industry feels a sigh of relief as the end of multiple of food laws to be followed. Hopefully the new Act will bring cheers to the industry as also to the consumers.

Food Business Operators

In an earlier post, it was mentioned that the Food Safety and Standards Authority of India will be fully operational. Government is in the process of issuing a notification by which all the Food Business Operator will have to obtain an appropriate licence from FSSAI w.e.f. 6th August, 2011. The Act has provision of severe fine and punishments.
FBOs now will have great sighs of relief in so much so that the some of the multi-faceted food laws currently prevailing, will be repealed simultaneously and there will only be one and only one FSS Act.

Biggest FDI Deal

Cabinet Committee on Economic Affairs (CCEA) cleared the historical biggest India's FDI BP-Reliance deal.
The Stage is set for allowing overseas retailers such as Wal-Mart, Tesco and Carrefour to open stores in the country through majority-owned joint ventures.
BP-Reliance $ 7.2 Bn deal was given clearance on 22nd July, 2011 and is just to see the clerance by the Union Cabinet before the rules are notified.

FDI in Retail

It is presumed that the proposal for allowing Foreign Direct Investment in Retail will be cleared by Cabinet in a month's time. The proposal has got momentum with the active support of the Prime Minister and the Finance Minister of India. The proposal will allow global retail chains to venture in India. It seems that the proposal which has now been debated for years, shall soon be seeing the light of the day.

CARREFOUR

The world's second largest retailer CARREFOUR, the French retailer is all set to open its second store in Jaipur. The first cash and carry store was opened in Delhi in December, 2010 in a sprawling 56,000 sq. ft. in a Metro Mall in East Delhi.

FOOD SAFETY AND STANDARDS AUTHORITY OF INDIA [FSSAI]

FSSAI is expected to fully operationalize by early August 2011 by when the FSSAI Regulations are expected to be finally notified paving way for repealment of various complex food laws earlier prevailing in India. And the food business operators willl have to start following FSSAI licensing regulations effective that date.

Reserve Bank of India

Deputy Governor of RBI Ms. Shyamala Gopinath retired after putting in 39 years of unstinted services at the central bank. She asserted her plan to be active in financial sector but nothing on the cards as of now.

Any Time Money

Visa Debit Card holder now have additional cash withdrawal facility at Barista points of sale. Cash of Rs. 1000 a day can be withdrawn free of any charges and without any obligation of purchasings at any Barista Lavazza outlets. Currently, this facility is available in Mumbai and Delhi [NCR] and will shortly be available across the country.

Excise Policy

The new excise policy in Delhi, expected to be notified on 6th June, 2011 envisages a hike in liquor prices, opportunity to expand the range of fine wine and license fee hike for restaurants and five star hotels.

High Value M&As

With effect from 1st June, 2011, all big ticket buyouts meeting the criteria of high value mergers and acquisitions stipulated under the Competition Law, shall be mandatorily required to obtain Competition Commission's approval.

PRICE HIKE

Fuel prices have undergone a steep price hike very recently. Various political parties put up resistances in various ways without any visible impact on the Indian Government. After petrol, steep price hike is inevitable for Diesel and LPG.

Diesel price hike will have highest impact on the the price rise of each and every items of essential needs for a consumer. A common consumer in India is already facing music of high prices of essential commodities and further increase may leave the bitter most taste in their mouth.

Look out for a decision on this issue of price rise by the Finance Minister chaired ministerial panel on fuels when it meets on 9th June, 2011.

GAGAN VANASPATI put on the block

The promoters of Amrit Banaspati Company (ABC), better known for its vanaspati and edible oil brands like Gagan, Ginni and Marigold, are said to be exploring various options, which range from selling its brands to offloading a substantial stake in the company.

ABC, whose Gagan brand is among the top three vanaspati brands in the country, has sent feelers to a number of Indian and multinational players in the edible oil industry, which include Ruchi Soya, Cargill India, Bunge India and Adani Wilmar.

[TOI]