Food Safety in India: Challenges and Opportunities

Md. Wasim Aktar*				spice exports totaled US$399 million. India, however,
Pesticide Residue Laboratory, Department of				has encountered a number of food safety problems
Agricultural Chemicals, Bidhan Chandra Krishi				in its spice exports including high pesticide residues,
Viswavidyalaya, Mohanpur-741252, Nadia, West				aflatoxin contamination and the use of prohibited
Bengal, India				food colorants. In the mid-nineties, Indian dry chili
1. Introduction				exports faced several rejections including rejections in
Rising incomes and urbanization, an expanding				Spain due to pesticide residue in excess of
domestic consumer base concerned about food				permissible MRLs, and in the United States because
quality and safety, and rapidly growing agricultural				residues of quinalphos, a pesticide not registered in
exports have been important drivers for the				the United States (Jaffee, 2005). Between 1998 and
increased attention to food safety in India. But the				2000, Indian dry chili exports also faced rejection in
development of effective food safety systems is				Germany, Italy, Spain and the U.K. due to the
hampered by a number of factors, including:				presence of aflatoxin.8 More recently, exports of chili
restrictive government marketing regulations, weak				and curry powder faced problems due to the use of
policy and regulatory framework for food safety,				the prohibited red dye Sudan 1 (Jaffee, 2005). In
inadequate enforcement of existing standards, a				February 2005, a massive recall of some 600 food
multiplicity of government agencies involved, weak				products took place in the UK because of the
market infrastructure and agricultural support				detection of Sudan 1 in Worcester sauce. This was
services. The small farm structure further limits				the largest ever food recall in the U.K. and it affected
farmer capacity to meet increasing domestic and				all major retailers as well as large numbers of food
export food safety and SPS requirements.				manufacturers and food service companies, as the
Addressing food safety concerns in India will require				Worcester Sauces had been used in the preparation
adoption of appropriate legislation, strengthening				of a large number of different products. It is
capacity to enforce rules, promoting adoption of				estimated that this recall, and associated expenses,
good agricultural, manufacturing and hygiene				cost the U.K. and other European food manufacturers
practices, greater collective action, and some				some 200 million Euros (Jaffee, 2005). The source of
targeted investments. Implementing these actions will				the Sudan 1 dye in the Worcester sauce was traced
require joint efforts by the government and the				to chili powder imported from India in 2002.
private sector.				Fish and Fish Product Exports. Fish and fish products
Developing countries are paying increased attention				are one of India's largestagricultural export earners,
to food safety, because of growing recognition of its				totaling US$1.3 billion in 2004/05. Over the years, India
potential impact on public health, food security, and				hasencountered several food safety problems with
trade competitiveness. Increasing scientific				its fish and fish product exports. Most prominent, in
understanding of the public health consequences of				1997, the European Commission found the industry to
unsafe food, amplified by the rapid global transmission				be non-compliant in maintaining hygiene standards in
of information regarding the public health threats				fish processing plants. In May 1997 the European
associated with food-borne and zoonotic diseases				Commission banned Indian exports of fresh
(e.g. E. coli and salmonella, bovine-spongiform				crustaceans and cephalopods and imposed border
encephalopathy (BSE), severe acute respiratory				testing for Salmonella and Vibrio spp. for frozen
syndrome (SARs) and H5N1 avian flu) through various				products (Henson, Saqib and Rajasena, 2005).
forms of media and the internet has heightened				Because of continued detection of salmonella, all
consumer awareness about food safety risks to new				exports of fish and fishery products to the EU from
levels globally (Lindsay 1997, Unnevehr 2003, Buzby				India were banned in 1997. While India has for the
and Unnevehr 2003, Kafersteing 2003, Ewen et al.				most part been able to address the hygiene-related
2006, Bramhmbatt 2005). Increased understanding of				problems plaguing its export of fishery products in
the impact of mycotoxins, which can contaminate				the late nineties, Indian exports are now under
dietary staples such wheat, maize, barley and				scrutiny because of problems related to antibiotic
peanuts, has further raised food security and public				residues and bacterial inhibitors (antibiotics,
health concerns in many developing countries				preservatives and chlorine) (Henson, Saqib and
(Dohlman 2003, Bhat and Vasanthi 2003, Unnevehr				Rajasena, 2005). It is widely acknowledged that in
2003).				the future, heavy metals and other contaminants
As developing countries seek to expand agricultural				could be an emerging issue particularly because of
exports especially to OECDcountries, many are				the increased attention to heavy metals in the EU.
receiving a wake-up call on the challenges of meeting				Surveillance of fisheries products for heavy metals
both government and private sanitary and				has already begun in the U.K.
phyto-sanitary (SPS) standards in export markets				Although India has been able to broadly comply with
(Otsuki et al. 2001, Henson 2003, Unnevehr 2003,				food safety requirements for each of the export
World Bank 2005a). Private standards or supplier				commodities mentioned above, it continues to face
protocols have grown in prominence over the past				problems across a range of agro-food exports.
decade as a means to further ensure compliance				Evidence of continuing trouble is clearly apparent
with official regulations, to fill perceived gaps in such				from Import Refusal Reports issued each month by
regulations, and/or to facilitate the differentiation of				the USFDA for food and drug imports into the United
company or industry products from those of				States. Most recently, in both April and May 2006,
competitors. Trends in private standards increasingly				India had one of the highest rejections among all
tend to blend food safety and quality management				countries exporting to the USA; India faced 176
concerns (i.e. the recent creation of ISO 22000), or				rejections in May, 2006 and 211 rejections in April,
to have protocols which combine food safety,				2006.9 While a significant number of the 176
environmental, and social (child labor, labor conditions,				rejections were issued for drugs and cosmetics, the
animal welfare) parameters (Willems et al. 2005,				grounds for rejection among the various food items
World Bank 2005). At the same time, increasing				included salmonella and/or filth in raw peeled shrimp,
globalization of trade introduces greater risks of				prepared Indian breads (paratha, roti), basmati rice,
cross-border transfer offood-borne illnesses. Recent				sesame seeds, pepper, coriander and chili powder;
cases of disease episodes in the United States				pesticide residues in lentils; failure to declare the color
resulting fromimported food produce, such as				additive FD & C Yellow No. 5 in banana chips; and
cyclospora from raspberries, hepatitis A from				unsafe coloring in cream biscuits. The number of
strawberries and salmonella from cantaloupe (Calvin				rejections and the range of problems reveal
2003), illustrate to developing countries the potential				extensive safety problems in Indian food products. It
food safety challenges that can arise in a more				is also reasonable to assume that the extent of the
globalized market.				problems faced by domestic consumers is far more
Weaknesses in food safety systems can have a high				serious as there many more micro, small and medium
cost to society and the global economy. The World				enterprises that cater to domestic consumers and
Health Organization (WHO) estimates that 2.2 million				generally pay less attention to food safety issues. By
people worldwide die from diarrheal diseases caused				contrast, exporters are likely to be more
by a host of bacterial, viral and parasitic organisms,				well-established and larger firms with better
which are spread by contaminated water (WHO				technology and relatively more cognizant about food
2006a). In India, it is estimated that 20% of deaths				safety concerns.
among children under five are caused by diarrheal				7. Challenges to Improve Food Safety in India
disease (WHO 2006b). The SARs outbreak in 2003 in				Improving food safety in India, whether for the
East Asia is estimated to have caused an immediate				domestic market or for export trade, is hampered by
economic loss of about 2% of the Region's GDP in				a number of structural, policy, institutional, technical
the second quarter of that year, even though only				and cultural barriers.
800 people died from the disease (Brahmbatt 2005).1				Policy and Regulatory Environment. A number of
The Lowy Institute for International Policy (2006)				policies and regulations governing agricultural
estimates that a mild global outbreak of the avian flu				marketing and food processing complicate the
can cost the world 1.4 million lives and close to 0.8%				implementation of food safety measures by the
of GDP (US$330 billion) in lost economic output. At				government and by the private sector. Two critical
the same time, country reactions to protect its				marketing regulations are the State level Agricultural
citizens from food safety risks can also have large				Produce Marketing (Development and Regulation)
consequences for exporting countries. Otsuki et al				Acts and the Small Scale Industry Reservation Policy.
(2001) examined the projected impact of the EU's				Almost all states in India have an Agricultural Produce
new harmonized aflatoxin standard on the value of				Marketing (APM) Act, which gives state governments
trade flows to 15 European countries from 9 African				the sole authority to establish and manage wholesale
countries and found that it could decrease African				markets.10 The Act, adopted by most states in the
exports by 64% (US$670 million).				1960s and 1970s, prescribes the setting up of a
Food safety concerns are getting widespread				network of state controlled "regulated markets" or
attention in India. The country's rural development				mandis and the establishment of Market Committees
strategy, for which a key element is the promotion				to operate each. All "notified" agricultural commodities
of increased agricultural exports as a means to foster				grown in areas surrounding the market are required
rural growth and poverty reduction, is coming up				by law to be sold only through these markets, with
against tightening food safety and SPS standards in				the number of notified commodities varying by state
prospective markets (World Bank 2006a, 2006b).				and market. Implementation of the Act and its
From a domestic perspective, the large national				enforcement vary considerably by state. In 2005,
market of 1.2 billion people is undergoing rapid change.				there were nearly 8,000 regulated markets in the
Increasing incomes, a growing middle class, increased				whole country.11 The requirement that all agricultural
urbanization and literacy, and a population highly tuned				commodities be channeled through the regulated
to international trends fueled by the information				markets not only increases transactions costs, but is
technology boom are creating a large consumer base				also a major obstacle to preserving produce quality
giving increasing value to food quality and safety.				and traceability. In 2003, the GOI formulated a model
Improving food safety systems, to meet domestic				Agricultural Produce Market Act for state
and export requirements, however, face a number				governments to adopt, which removes the
of policy, regulatory, infrastructural and institutional				restrictions on farmer direct sales and permits entities
obstacles.				outside of government to establish and operate
2. OBJECTIVES				wholesale markets. To date only 10 of the 28 states
(i) To review the main drivers for the increased				and Union Territories have adopted the model Act.12
priority to addressing food safety risks in India in				The Small Scale Industry (SSI) Reservation restricts
both the export and domestic markets, (ii)To				the processing of certain commodities to the small
examine the nature and effectiveness of				scale sector. Although the list of commodities subject
government and private responses to the food				to this restriction has been reduced significantly during
safety challenges, with special focus on high value				the last decade, several processed agricultural
agriculture; (iii)To identify the constraints to more				products are still subject to SSI reservation, such as
effective responses; (iv) To examine the implications				rapeseed, mustard and ground nut oil,13 bread,
for policy; v) To review food safety with special				pastry, pickles and chutneys, and hard boiled sugar
relation to Pesticides; and vi) To discuss briefly about				candy (Department of Small Scale Industries 2006).
the food safety from consumer point of view.				The SSI reservation imposes constraints on
3. Types of Food Safety Risks				enterprises' ability to undertake the necessary
Food safety risks, as they relate to human health,				investments (e.g. HACCP) and certifications required
arise from of a number of factors. These include: (i)				to meet the domestic and international food safety
microbial pathogens (bacteria, viruses, parasites, fungi				and SPS requirements.14
and their toxins); (ii) pesticide residues, food additives,				There is a complex web of laws governing the
livestock drugs and growth hormones; (iii)				processed food sector which complicate
environmental toxins such as heavy metals (e.g. lead				implementation of food safety measures. These laws
and mercury); (iv) persistent organic pollutants (e.g.				are enforced by 8 different ministries. Some of the
dioxins); and (v) zoonotic diseases (e.g.Avian flu,				most critical are: Prevention of Food Adulteration Act
Japanese encephalitis, tuberculosis) (Buzby and				1954 implemented by the Ministry of Health and
Unnevehr 2003, Ewen et al. 2004).2 The health risks				Family Welfare; Milk and Milk Products Order 1992 and
associated with these agents impact the whole food				Agricultural Produce Grading and Marking Act 1937
supply chain, starting from input supply to the farm				implemented by the Ministry of Agriculture; the
to the consumer table (Figure 1).				Essential Commodities Act 1955, Standards of
Figure 1 Food Supply Chain: Potential Sources of Food				Weights and Measures Act 1976, Consumer
Safety Hazards				Protection Act 1986, and Bureau of Indian Standards
Common use of pesticides in modern farming				Act 1986 implemented by the Ministry of Food,
inevitably leaves some residues on food crops.				Consumer Affairs and Public Distribution; the Fruit
Potential food safety hazards at HOME can be				Products Order 1955 implemented by the Ministry of
divided into three categories:				Food Processing Industries; import and export
1. Biological				regulations implemented by the Ministry of
2. Chemical				Commerce; Trade in Endangered Species Act
3. Physical				implemented by the Ministry of Forest and
While all the above type of hazards are important				Environment; Atomic Energy Act 1962/Control of
from viewpoint of prevention, the focus here will be				Irradiation of Food Rule 1991 implemented by the
on the microbiological hazards and in that on				Ministry of Science and Technology; and Infant Milk
foodborne bacteria, which can lead to illness if the				Substitutes, Feed Bottles and Infant Foods
food is mishandled, particularly for those more at risk				(Regulation of Production, Supply and Distribution) Act
-- the very young, the elderly and the				1992 implemented by the Ministry of Human
immuno-compromised.				Resource Development (Patnaik 2005).
Certain processes or handling practices by consumers				These laws also authorize several agencies to lay
in the home have been identified as being essential or				down standards for food products: (i) Bureau of
critical in preventing foodborne illness. These				Indian Standards (BIS) of the Ministry of Food,
practices, which prevent or control the "meals"				Consumer Affairs and Public distribution under the BIS
microbial contamination associated with foodborne				Act, (ii) Ministry of Food Processing Industry under
illness, are under the direct control of the consumer,				the Fruit Products Order, (iii) Ministry of Agriculture
from food acquisition through disposal.				under "Ag Mark" and the FPO, (iv) Ministry of Health
They are purchasing, storing, pre-preparation,				and Family Welfare (MOHFW) under the PFA Act; (v)
cooking, serving, and handling leftovers. Failure to				Export Inspection Council under the Export-Import
take appropriate action at these critical points could				Policy, and (vi) the Defense Ministry for their own
result in foodborne illness.				purchases.
4. Pesticides and Food Safety				These laws and associated regulations in some cases
Fruits, vegetables and cereal crops treated with				prescribe contradictory or differing standards. For
pesticides are perceived by some as a health risk,				example, while the Fruit Products Order (FPO) allows
and this belief along with affordability, and time				the use of artificial sweeteners in fruit products, the
pressures may all play a role in limiting consumption of				Prevention of Food Adulteration (PFA) Act bans it.
plant foods, such as cereal grains, fruit and vegetable				Mandatory declaration labels required by the PFA
consumption of consumers in Asia. The World Health				differ from those of the Packaged Commodity
Organisation (WHO), the World Cancer Research				Regulation Rules (1977) under the Standard Weights
Fund (WCRF) and many other national and				and Measures Act. The emulsifier and stabilizers
inter-governmental agencies recommend that adults				permitted for use in jams and chutneys under the
consume at least 400g of fruit and vegetables per				PFA differ from those allowed under the FPO.
day and 25-30 grammes of dietary fibre per day, but				In 1998, the GOI began the process of rationalizing
analysis of current dietary patterns around the world				the legal and regulatory framework for food and
indicate that many consumer are not achieving these				food processing. The Prime Minister's Council on
dietary goals, particularly those who are less affluent.				Trade and Industry established a Task Force on
AFIC's Short Briefing on Pesticides, Food Safety and				Food and Agro-Industries Management Policy to
Health is intended to provide a science-based factual				recommend options for rationalizing the various
overview of the issue, to enable consumers to make				policies and regulations. The outcome was a new
better informed choice about their diet, in particular				Food Safety and Standards Bill, which was submitted
fruit, vegetables and grains consumption, and allay				to Parliament in August 2005 and is awaiting approval.
unwarranted anxieties and concerns.				The Bill aims to consolidate the laws relating to food.
Definition of Pesticide: The Food and Agriculture				The key provisions of Bill include: (i) the repeal of a
Organisation (FAO) defines a pesticide as 'any				number of Acts and Orders;15 (ii) the establishment
substance or mixture of substances intended for				of a Food Safety and Standards Authority of India;
preventing, destroying, attracting, repelling, or				(iii) definition of the standards for food additives,
controlling any pest including unwanted species of				contaminants, genetically modified and organic foods,
plants or animals during the production, storage,				packaging and labeling, and food imports; (iii)
transport, distribution, and processing of food,				accreditation of laboratories, research institutions and
agricultural commodities, or animal feeds or which				food safety auditors; (iv) licensing and registration of
may be administered to animals for the control of				food business and setting penalties for offenses; and
ectoparasites'				(v) establishment of a Food Safety Adjudication
Natural Toxins: Substances that are capable of				Tribunal (Ministry of Food Processing Industries 2005).
causing cancer are virtually everywhere, even in				Approval of the Bill will be an important milestone in
natural compounds. The FDA estimates that the				strengthening food safety systems in India.
intake of carcinogens from man-made pesticide				There are a large number of government agencies
residues is extremely small compared to carcinogenic				involved in agricultural marketing activities, more
residues that plants produce naturally.				broadly or with respect to specific commodities,
According to Bruce Ames, a professor of molecular				which complicates effective implementation of a
biology and biochemistry at the University of				coherent food safety strategy for the country. As in
California, more than 99.99 percent of the pesticides				the case of the soft drink contamination, the multiple
Americans ingest are "nature's pesticides" or "natural				laws and agencies added to the confusion. The BIS
toxins" (Hotchkiss, 1992; Moore, 1989).				was charged with setting the standards for
Natural toxins are present in all plants and such food				pesticides in soft drinks, while the MOHFW is charged
products as beans, lettuce, apple juice, wine, black				with setting the pesticide standards for bottled
pepper, spinach, peanut butter and many others. Of				water.
the known natural toxins, which concentrate in parts				Smallholder Agriculture. The current structure of the
per thousand versus parts per billion in synthetic				farm sector in India constrains farmer capacity to
pesticides, none has been shown to cause cancer				meet domestic and international food safety
(Hotchkiss, 1992; Moore, 1989).				standards. Farming in India is dominated by small
Reasons of pesticide residues in food				farmers - the average farm size in 1990/00 was 1.8
Pesticide residues may be present in food because of				ha (NABARD 2002). Most farmers face credit
the following reasons:				constraints (World Bank 2004), and literacy rates are
1) Direct use of pesticides on food crops;				low.16 These constraints impose limits on the number
2) Animal feeding on pesticide treated feed;				of farmers capable to adopt more sophisticated farm
3) Environmental contamination				practices and undertake the necessary investments
Pesticide Use on the Farm: Many of today's food				(e.g. land improvements, obtaining necessary
producers are taking an Integrated Pest Management				certifications, cold storage) to meet more stringent
(IPM) approach to preventing, reducing or eliminating				food quality and safety requirements. They increase
pest problems. Growers and processors must make				the cost of transacting business and monitoring
complicated decisions prior to planting, during the				compliance with food safety standards. Stringent land
growing season, and during postharvest handling.				policies, e.g. land ceilings and restrictions on land rental,
Scientific IPM strategies give the grower economic				limit possibilities for greater land amalgamation (World
incentives for sustaining long-term crop protection				Bank 2006c). International experience indicates,
with minimal disruption to the environment. The				however, that farm size constraints may be
agricultural community typically will use pesticides				overcome through innovative interventions such as
judiciously as part of the IPM strategy whenever				organizing farmers into producer groups, establishing
proven alternatives are not available for pest control.				collection centers (by supermarkets and exporters),
Growers are hiring professional crop consultants with				using contract farming arrangements, and by creating
increasing frequency for advice on maintaining or				public-private partnerships to assist farmers in a
increasing production through the utilization of IPM				variety of ways, including help in obtaining the capital
programs structured toward their specific agronomic				required to make on-farm improvements and other
situations.				investments (e.g. grading or cooling facilities),
Integrated pest management: It is an ecological				developing and improving farming skills through joint
approach to pest management in which all available				extension provision, and assistance in acquiring the
control techniques are consolidated into a unified				required national and international certifications
program so that pest populations can be managed in				(BerdeguÃ© et al. 2003, Boselie et al. 2003, Dries
such a manner that economic damage is avoided and				et al 2004, Reardon and Swinnen 2004, Reardon and
adverse side effects are minimized. Practices used as				Timmer 2005a, 2005b).
a part of this management philosophy include the				In order to address various food safety concerns in
following: 1) destruction of crop debris, 2) having				both the spices and fresh and processed fruit and
pests feed and concentrate on trap crops, 3) crop				vegetable sectors, some exporters initiated contract
rotation, 4) selectivity of planting and harvest dates,				farming operations or "vendor screening" programs.
5) soil test analysis for crop nutrient needs, 6)				One industry that has been especially successful in
planting crop species adapted for local conditions, 7)				establishing contract farming arrangements and
using genetically improved crop varieties with				meeting stringent food safety and quality standards
resistance to specific pests, 8) using biological control,				is the pickled gherkin industry. The industry, consisting
9) predicting pest outbreaks with computers, 10)				of some 42 companies and nearly 50,000 smallholder
pheromones for trapping pests, 11) scouting and				outgrowers, is concentrated in Karnataka, Andhra
monitoring for pests, 12) economic thresholds as				Pradesh, and Tamil Nadu. The leading gherkin
guides to pest control, 13) better timing and				exporting companies each have several thousand
application of pesticides, 14) use of biological				farmers under contract. The companies provide
insecticides, 15) improved pesticide application				intensive oversight and maintain extensive records of
efficiency, 16) adapting promising technology, including				farmer practices, especially related to pesticide use.
the use of infrared scanners, satellite photos,				At least one company began the process of getting
gene-splicing biotechnology, and new pesticide				outgrowers certified under EurepGAP (World Bank
delivery systems that incorporate farm-specific				2006b). Contract farming has worked relatively well in
information on tractor mounted computers.				the case of gherkins as almost the entire production
Pesticide Limits and Regulation: Approval for use of				from India is exported and there is no local market.
any pesticide in a country is subject to its safety				Hence contract enforcement has not been a major
evaluation. Safety levels for any pesticide are				challenge as in the case of other commodities where
calculated over a number of formal assessments. The				the export intensity is much lower and the majority
Codex Alimentarius Commission is an international				of production is consumed domestically.
body which sets international guidelines on many				Until recently, contract farming was illegal in India as
elements of food safety, including pesticides residues				per the provisions of the APM Act. The only way
on food. These guidelines are not mandatory, but				entrepreneurs can legally enter into contract farming
many countries in Asia use these guidelines,				with farmers is to obtain a special waiver from the
sometimes with additional scientific data determined				APM Act from the State Government. The new
by their national regulatory agencies to establish limits				model APM Act provides the legal framework and
on use and also acceptable residue levels at point of				guidelines for contract farming. The provisions in the
sale.				model Act allow contract buyers to directly purchase
Acceptable Daily Intake: One of the most important				commodities from farmers under individual contracts
tools in the safety evaluation of pesticide use on				or from farmers' markets. It also allows the direct
food crops is the calculation of what is an Acceptable				sale of farm produce at the farmers' fields without
Daily Intake (ADI). The ADI for any given pesticide is				having them routed through regulated markets.
a measure of the quantity of a particular chemical in				Adoption of the model Act by state governments
food that can be consumed daily over a lifetime				will therefore facilitate not only more efficient
without any known risk to health. It is expressed in				marketing, but also improved food safety and the
relation to bodyweight.				adoption of improved agricultural practices.
ADI is derived by first conducting diet trials on				Weak Extension Systems. The public agricultural
laboratory animals and observing the maximum level				extension systems at the state level are very weak
of pesticide that can be consumed by the animal with				and have not effectively caught up to the changing
no observable adverse effect on health. This level				needs of farmers and the market (World Bank
expressed as percentage of body weight is known				2005b). In view of the GOI's earlier concentration on
as the No Observable Adverse Effect Level (NOAEL				food self-sufficiency, the state-level Department of
or NOEL), The investigations include checks for birth				Agriculture (DoA) extension systems generally
defects, cancer, reproductive changes, damage to				focused on cereals, particularly rice and wheat, with
the nervous system, harm to organs such as the				an emphasis on the transfer of improved varieties
kidney or liver, and many other measurable health				and management practices. The weak coordination
indicators.				between the state DoAs and the other line
A safe level for human consumption is estimated by				departments (e.g. Departments of Irrigation,
dividing the NOAEL on humans by an uncertainty				Horticulture, Livestock, Marketing, etc) and the limited
factor (usually 100) to allow for the possibility that				staff capacity beyond the Department of Agriculture
humans may more sensitive than the animals used				also often translated to limited extension activities
for testing and also to account for possible variation				beyond cereals, limiting its impact on agricultural and
in sensitivity to the pesticide between human				market diversification trends. The weak coordination
individuals, for example adults and children. These				with research at the central level further increased
results in an ADI for humans which is 100 times lower				the difficulty of ensuring effective
than the NOAEL consumption rate established from				research-extension-farmer linkages at the state level.
trials on laboratory animals.				In many states, tight fiscal constraints contributed to
Acute Reference Dose: Safety evaluation of all				the breakdown of the state extension machinery
pesticides also requires an estimate of the acute				(Hanumantha Rao 2003). Private extension provision
refrence dose (ARfD). The ARfD is an estimate of				(fee for service) is emerging. There are an increasing
the amount of a substance in food or drinking water				number of input suppliers, traders, contract buyers,
expressed as percentage of body weight, that can				supermarkets, and exporters which provide extension
be consumed over a short period of time, usually one				services to farmers as an integral part of their
meal or one day, without any known effect on				trading arrangements (World Bank 2005b). However
health. This figure is also expressed as a percentage				in the national context, private extension remains
of body weight.				limited.
Maximum Residue Levels: A maximum reside levels				The findings of a World Bank agricultural marketing
(MRL) is the maximum permissible quantity of				survey, covering 1,579 farmers producing high value
pesticide that may still be present on the crop at				crops (tomatoes, potatoes, mangoes, maize and
point of sale. It is derived from an assessment of the				tumeric) in four states in India (Orissa, Tamil Nadu,
residues found when the crop is treated according to				Uttar Pradesh, and Maharashtra) conducted during
good agricultural practices. The MRL is the maximum				February to May 2005, confirm the limited
concentration of a pesticide residue that is legally				effectiveness of the national extension system.
permitted in, or on, a food commodity, and is set by				Farmers primarily depended on personal observation
national governments if the approval is given for the				or on other farmers for information about crop
use of the pesticide on specified crops. MRLs are set				prices, post harvest practices, irrigation, fertilizer and
to determine legal trading limit, and are not an				pesticide use (Table 2).
indicator of risk to health. MRLs are set at levels				Although food safety concerns have not been a
which would result in consumption of any residue at a				major focus in the extension program, it is partly
level substantially lower than the ADI or the ARfD				addressed through the increased Ministry of
for the pesticide, and any pesticide whose MRL could				Agriculture (MoA) priority to integrated pest
result in dietary intake which might exceed the ADI				management (IPM). MoA established the National
or ARfD would not receive approval.				Center for Integrated Pest Management in1988 to
Pesticide Residue Monitoring: Under FFDCA, the Food				develop and promote IPM technologies. Notably there
and Drug Administration (FDA) and USDA share				has been a decline in total pesticide consumption in
responsibility for monitoring levels of pesticide				India from 75,000 mt in 1990/91 to 48,400 mt in
residues on foods. FDA enforces pesticide tolerances				2003/03 (Directorate of Plant Protection and
for all domestically produced food shipped in				Quarantine 2006).
interstate commerce and in imported foods, except				Poor Infrastructure and Services in the Marketing
for meat, poultry and some egg products, which are				System. Reducing food safety risks from the farm
monitored by USDA. Many agriculturally-intensive				to domestic and export markets is constrained by
states such as California and Florida also conduct				inadequate infrastructure and facilities, particularly at
extensive pesticide residue monitoring programs. FDA				the wholesale markets. The World Bank Agricultural
uses three approaches for pesticide residue				Marketing Survey also collected information on the
monitoring: 1) incidence/level monitoring, 2) regulatory				operations of 78 wholesale markets in the four
monitoring, and 3) Total Diet Study (FDA, 1994).				states. The survey found that the infrastructure and
Total Diet Studies: To assess potential health				facilities in these markets are limited and rudimentary.
problems from contaminants, both natural and				Overall, Maharashtra and UP had slightly better
man-made in the food supply, the WHO recommends				infrastructure than the other two states. About 83%
total diet studies (TDS) as the one of the most				of markets had covered shops, but only 18% had
cost-effective means for assuring that people are				paved roads within the market and 51% had public
not exposed to unsafe levels of toxic chemicals				toilets. Access to warehouses is limited, except in
through food. TDS provides an additional tool to				Maharashtra (85%). Less than 40% of markets had a
assess whether or not any pesticides may be				drying area and no markets in Orissa or Uttar
present in the diet at levels which might pose a risk				Pradesh had cold storage facilities (compared to 5%
to health. A TDS is conducted by purchasing through				in Tamil Nadu and 20% in Maharashtra).
standard retail outlets a typical selection of foods				Table 2: Farmer Sources of Information.
commonly consumed in the country or region. The				Waste management and pest control in the markets
'basket' of foods is processed and prepared as if for				are very weak. Officials working in the wholesale
normal consumption and then analysed in the				markets were asked how the spoiled produce and
laboratory to measure total levels of the substances				waste products were disposed off. Fifty-four percent
of interest, for example pesticides. Drinking water				responded that market employees or contracted
and water used in cooking are also included in the				firms handled garbage disposal and waste
assessments. The TDS provides a measure of the				management; 29% reported that they were just left
average amount of the pesticide consumed by				to rot in the market, while 13% reported that they
different age/sex groups living in a country. See box				were left for the animals to eat. Market officials
for an example of an actual TDS and results for				were also asked about the pest control measures
estimate of pesticide consumption.				they undertake. Fifty-nine percent indicated that no
Risk Calculation: Risk = exposure x toxicity. Risk of				particular control measure for rats and insects are
harm from a chemical depends on both the level of				implemented in their market, 32% indicated it was up
exposure to the chemical and on the toxicity of the				to the individual shop owners to take care of their
chemical (Chaisson et al., 1991). Therefore, to				rat problems. Only 8% reported the market
quantify potential risks from consuming minute				management or association or a subcontracted firm
quantities of a particular chemical residue in food,				took care of rat problems. Reducing food safety
scientists consider the toxicity of the chemical, the				risks will require significant public and private
residue content of foods and the amounts of these				investments to upgrade the market infrastructure
foods eaten by population subgroups. Population				and services. For regulated markets, this will also
subgroups such as infants, children, women, women				require improving the operational and fiduciary
of child-bearing age and ethnic subgroups may be				management to ensure that more resources are
considered in risk assessments in addition to the total				re-invested back into the markets.
population. The groups considered depend on the				Cultural Issues. Religious beliefs further constrain the
toxicologic characteristics of a particular chemical. Risk				kinds of food safety measures that could be
assessments that consider regional and seasonal				adopted in India. The sacred value attached to cattle
variations also are performed.				imposes limits on disease control measures to
Exposure = residue concentration in food x amount				address food safety and public health (BSE, foot and
of food consumed. Potential exposure to a chemical				mouth disease), such as culling to limit disease spread
in a specific food is assessed by multiplying the				or to create disease free zones.
residue concentrations in food times the amount of				Inadequate grades and standards for the domestic
food consumed by each person in the population.				market and poor enforcement. The Directorate of
This exposure is expressed as milligrams of residue				Marketing & Inspection under the Department of
per kilogram of body weight per day (mg/kg BW				Agriculture and Cooperation is responsible for
day). Potential dietary exposure to a chemical is				enforcing and implementing the Agricultural Produce
assessed by adding together residue intakes from all				(Grading and Marking) Act. Its mandate includes
foods. Different assumptions regarding residue				promoting standardization and grading of agricultural
concentrations in food may be used to assess				products. Grades and standards have been prescribed
exposure. A worst-case exposure scenario may be				for 164 commodities under the APM Act for
calculated using tolerance levels for pesticides in food.				domestic trade, for export trade and for grading at
This exposure assessment is the theoretical				the producer's level. The AGMARK grades are
maximum residue contribution. Exposure may also be				primarily voluntary grades covering aspects such as
calculated using anticipated residue levels (Chaisson et				size, variety, weight, color, and moisture levels. For
al., 1991; California Agriculture,1994).				certain items they also cover parameters such
5. Food Safety and the Indian Domestic Market				acceptable levels of organic and inorganic foreign
Increasing incomes, urbanization, and literacy,				matter (in pulses, for example) and other chemical
improved infrastructure and closer ties to global				properties such as specific gravity for essential oils.
trends, especially during the last decade, are driving				Different grades and standards are laid out under
changes in consumer demand and preferences in				AGMARK for domestic consumption versus exports.
India. Sustained economic growth (6.0% per year in				The Directorate provides third party certification
real terms from 1990/91 to 2003/04) resulted in GDP				under the AGMARK quality certification scheme. The
per capita increasing by about 70%, from about				'AGMARK' seal is supposed to ensure quality and
US$315 in 1990 to US$538 in 2004 (constant 2000				safety. Any consumer, trader or manufacturer can
dollars). National poverty rates (headcount) declined				have products tested at one of the 23 regional
from 38.9% (Central Statistical Organization 2002) in				AGMARK laboratories for designated commodities.
1987/88 to 28.5% in 1999/00 (Deaton and Dreze				Typically, testing is only carried out for adulteration
2002).3 The middle class, which now accounts for				prone commodities such as oils, ghee, whole and
about 15% of the 1.2 billion people in India, is the				ground spices, honey, and whole and milled food
fastest growing income group and is a major force				grains. Blended edible vegetable oils and fat spreads
shaping the diet revolution that is occurring (Landes				are compulsorily required to be certified under
and Gulati 2003).				AGMARK. The Prevention of Food Adulteration Act
Figure 2: Diversification on Food Consumption				also sets standards for food products including
Expenditures				aspects such as permissible food colorings,
These structural changes are reshaping consumer				preservatives, pesticide residues, packaging and
demand. The Indian food consumption basket is				labeling. As illustrated by the bottled water and soft
diversifying away from cereals towards higher value				drink pesticide residue incidents, inadequate standards
and more perishable products, such as fruits and				and weak enforcement remain a problem.
vegetables, dairy, meat and fish (Figure 2). Increasing				The grades specified under AGMARK and standards
female participation in the work force and higher				as laid out in the PFA are designed to facilitate trade
disposable incomes to spend on non-home cooked				as well as ensure food safety. The food safety
foods are driving growth in demand for prepared and				standards under the PFA in general need to be
semi-prepared foods, and thus the growth of the				aligned with international standards. However there
processed food industries (Pingali and Khwaja 2004).				are many commodities that are not grown or
These trends bring increased attention to safety				consumed outside of India. For these commodities it
concerns in the handling, processing and marketing of				may not be possible to align domestic standards with
foods.				international standards because there are no
In addition, growing consumer preference for				established international standards. In these instances
shopping convenience, increased exposure to the				it is important for research to be conducted in India
media (TV, cable and the internet) and ownership of				to set appropriate standards for the domestic
durables such as refrigerators and cars are fostering				market.
the growth of modern retailing (i.e. supermarkets and				Lack of pro-activity in addressing food-safety issues.
hypermarkets), which in turn demand greater				Domestic food safety scares and the more notable
efficiency and food quality and safety standards in				food-safety problems faced by Indian agro-exports,
the supply chain Mukherjee and Patel 2005,				reveal the overall absence of any pro-activity in
Chenggapa, et al 2005).				addressing food safety concerns in India. Several
Increased vigilance by NGOs, consumer groups, and				factors contribute to this. In the case of exports,
local research institutes is also raising awareness and				many if not most of the emerging SPS and
spurring action among consumers and policy makers				international standards are widely viewed as not
to address food safety risks. Findings of high levels				scientifically based and as representing unfair "barriers
of pesticides in bottled water and soft drinks in 2003				to trade" (World Bank, 2006b). These measures are
by the Centre for Science and Environment (CSE), an				viewed as efforts to protect foreign farmers or
NGO, shook the country and forced the Government				processors from competition, or are being fueled by
of India (GOI) to take swift action (Mathur et al				unreasonable consumer fears in high income countries
2003, CSE 2004). The CSE tested 30 bottled water				and improved technologies for detecting hazards.
brands from the major cities of Delhi and Mumbai in				Consequently, the approach of the government and
Maharashtra and found that all except one contained				private sector has been to try to negotiate away
pesticide residues.				the problems with trading partners and, failing that,
Figure 3: Pesticide Residues in Soft Drinks in India,				addressing the various measures in international
2003				standard-setting or dispute flora. As a consequence,
The Delhi brands on average contained pesticide				insufficient attention is devoted to monitoring the
residues 36.4 times the maximum pesticide residues				requirements of official and private standards,
stipulated by the European Union standards for				interpreting their implications for Indian agriculture and
bottled water (CSE 2004). Shortly thereafter, Mathur				using current and anticipated requirements as
et al. (2003) tested 12 brands of soft drinks sold in				catalysts to upgrade existing operations and
Delhi for 16 organochlorine and 12 organophosphorus				strengthen supply chain management (World Bank
pesticides and 4 synthetic pyrethroids commonly				2006b).
used in agricultural fields and homes in India. Their				This absence of pro-activity has meant that India has
analysis found that all brands exceeded the EU				either had to adopt a "defensive" strategy avoiding
maximum pesticide residue limit of 0.0005 ppm (Figure				markets with more stringent food safety and
3).				agricultural health standards or launch into a
To deal with the back-to-back crises, the GOI				fire-fighting mode when it faces potential disruption
established a special Joint Parliamentary Committee				or loss of trade due to noncompliance with
on "Pesticide Residues in and Safety Standards for				standards.17 The absence of pro-activity is well
Soft Drinks, Fruit Juice and Other Beverages" in				illustrated through examples of problems faced with
August 2003 to investigate the allegations. Two GOI				exports of fishery products in the late nineties and
Laboratories were instructed to conduct tests on the				the more recent troubles with grape exports to
12 brands (but using different samples) and their				Europe. In both cases, although there were signs of
findings showed that 9 of the 12 samples exceeded				potential problems for a considerable period of time,
the EU limits (Hindu Business Line 2003).				the food safety problems were not given serious
Weak regulations and inadequate standards were				attention until India was faced with a crisis.
major causes of these high profile food safety crises.				In the case of exports of fish and fishery products,
In the case of bottled water, while the existing norm				necessary monitoring and enforcement measures for
set out by the Bureau of Indian Standard (BIS)				ensuring that exports complied with food safety
required that "no pesticides should be detectable,"				concerns were not put in place until the loss of EU
the prescribed methodology could only detect				markets in 1997 (Henson, Saqib and Rajasena, 2005).
pesticides at extremely high levels. Consequently,				This was despite the fact that India had continually
GOI issued a notification revising the standards for				faced rejections because of failure to meet hygiene
pesticide residues on bottled water, adopting the EU				standards and other food safety requirements since
single residue limit of 0.0001 ppm and multiple residue				the 80s, and in spite of regulatory reforms to
limit of 0.0005 ppm (CSE 2004). In the case of soft				provide safety assurance for fish and fishery
drinks, the BIS only had voluntary standards, not				products undertaken in 1995 (Henson, Saqib and
mandatory standards for pesticide residues. To				Rajasena, 2005).
address the problem, BIS constituted a 39 member				Similarly, in the case of grape exports to the EU,
committee, consisting of representatives from the				pesticide residue problems hadsurfaced since the late
soft drinks industry, government scientists, NGOs and				nineties. During this period, some limited testing was
consumer groups to formulate the new BIS				done for pesticide residues in export-oriented grapes.
standards. The outcome was the Indian Ready to				Testing was made mandatory in 2000, but most of
Serve Non-Alcoholic Beverages Specifications, which				the available testing equipment was not up to date,
established the limits for 16 pesticides in the finished				could not test to the same level of detection as was
product (0.0001 mg/l for individual pesticides and total				common in Europe and was unable to detect certain
pesticide residue limit of 0.0005 mg/l) (CSE 2004).				heat-sensitive chemicals such as acephate and
Even the government-sponsored Mid-day Meals				methomyl (World Bank, 2006b).18 Only after EU
program encountered serious food safety incidents.				Rapid Alerts were issued in 2003 did the Government
The National Program for Nutritional Support to				and industry step into action to address the problem.
Primary Education (NPNSPE), more popularly known				In general India has not viewed complying with food
as the Mid-Day Meals Scheme, aims to improve child				safety and agricultural health standards as a means
enrollment in primary school and encourage regular				to both improve its competitive position and to
attendance by providing supplementary feeding, while				enhance the effectiveness of its negotiations on
improving their nutritional status. It covers children				particular technical and commercial matters, which is in
enrolled in classes I to IV in government and				stark contrast to the approach of leading agro-food
government-aided schools in the whole country (Jha				exporting countries (World Bank, 2006b).
and Umali-Deininger 2003). In June 2006, 85 students				A consequence of the lack of pro-activity and the
from a Chennai primary school were admitted to the				crisis management mode of operation has been the
hospital because of food poisoning after consuming				adoption of very rigorous and strict controls for
food prepared under mid-day meal scheme.4 In				commodities threatened with the loss or disruption of
February 2004, 281 children attending municipal				trade. This has led to extremely high costs of
schools in Delhi fell ill and were admitted to the				compliance in some cases (e.g. grapes) (World Bank,
hospital after consuming their mid-day meal.5 There				2006b) or rather onerous requirements (e.g.
have been many other cases, despite quality norms				requirements for processing facilities exporting fishery
being established for the mid-day meal program.				products) (Henson, Saqib and Rajasena, 2005). In the
While issues related to pesticides in bottle water and				case of grapes, the Government of India (GOI)
carbonated drinks, and out-breaks of food-borne				Agricultural and Processed Food Products Export
illnesses received wide media attention, there are				Development Authority (APEDA), formulated an
other serious domestic food safety concerns that				integrated system of intensive grape supply chain
have been identified including heavy metal				oversight that included
contamination in foods. Marshall, et al. (2003), tested				â€¢ A requirement that all farms growing
fresh cauliflower, okra, and spinach - common				grapes for export to Europe have to register with
vegetables in the Indian diet - in 5 production sites				the Department of Agriculture. About 6200 growers
around the Delhi region and in Delhi's Azadpur				registered for the 03/04 season;
wholesale market from May 2001 to June 2003. They				â€¢ Three field inspections (for registered
found that 72% of the 222 spinach samples				exporters) during the crop cycle by a newly
exceeded the Indian MRLs for lead of 2.5 mg/kg, and				constituted cadre of horticultural field inspectors.
100% exceeded the Codex MRL of 0.3 mg/kg. They				Some 244 such officers were initially appointed and
attributed the high lead content to a number of				trained. There are now 291 such officers;
possible causes, including contamination of the				â€¢ The inspection and registration of all grape
irrigation water by sewage and industrial effluent and				export packinghouses by APEDA.
industrial pollution.6 Contamination was exacerbated				â€¢ Mandatory pesticide residue testing from
by their locations-the production sites and market				each registered field of export grapes. Testingwould
were in peri-urban and urban areas. When tested for				be done prior to harvest and only if the tests were
zinc, 21% of samples exceeded both the Indian and				passed would authorization be given for harvesting
international standards. Currently, however, no regular				for export. Grapes from fields with failed results
testing for heavy metals in vegetables is undertaken				would need to be sold in other markets or re-tested.
by government agencies in India. Tests undertaken				â€¢ Every consignment would be checked by
by the Indian Council for Agricultural Research found				AGMARK to ensure conformity with EU quality
pesticide residues above the MRL in 5.3% of 666				specifications for grapes. AGMARK would issue
samples of vegetables in 2003 and 15% of 468				certificates.
samples of milk tested in 2001 (Directorate of Plant				â€¢ Obtaining a phytosanitary certificate issued
Protection and Quarantine 2006).				by Plant Protection, Quarantine and Storage for
The long term use of pesticides in agriculture and for				every consignment; and
disease control (e.g. DDT for malaria control) is				â€¢ Later, in 2005, another procedure was
manifesting itself in the blood, human milk and fatty				added whereby National Research Center for Grapes
tissue in the population in many states. Table 1				would take a 5% sample of ex-packhouse grape
presents the results of micro-research studies in				consignments to re-test for pesticide residues.
selected states in India from 1980 to 2005.				The extensive system of checks and controls
Table 1: Level of DDT and HCH Content in Human				primarily focused on end-of-the-pipeline solutions. In
Blood Samples in Selected States in India.				addition to the protocols that potential exporters to
Location Year Number of Samples Total DDT				the EU have to follow, the government also invested
(ppm) Total HCH				heavily in upgrading laboratory testing equipment,
(ppm)				training field inspectors, subsidizing packhouse
Lucknow, Uttar Pradesh 1980				upgrades, and strengthening the National Research
25				Centre for Grapes. Overall, it is estimated that the
0.020 00.022				cost of this control system for pesticide residues (to
Delhi 1982 340 0.710 0.049				government and the private sector) is about US$1.2
Lucknow, Uttar Pradesh 1983 48				million, equivalent to 7.9% of the FOB value of India's
0.028 0.075				grape trade to Europe in 2005 (Table 3). If all other
Delhi 1985 50 0.301 -				costs associated with the oversight of the grape
Ahmedabad, Gujarat (rural) 1992 31				supply chain are added to the costs of pesticide
0.048 0.148				residue testing, SPS compliance costs are estimated
Ahmedabad, Gujarat (urban) 1997				to account for 13% of this FOB value.
14				Table 3: Estimated Annual Cost of Meeting EU SPS
0.032 0.039				Standards-2005 US $
Punjab (rural) 2005 20 0.0652 0.057				While it is arguable that there are many spillovers and
Note: HCH - Hexachlorocyclohexane				important lessons that have been learned from the
Source: ICMR 2001, Mathur et al. 2005.				handling of the pesticide residue problem with grape
6. Food Safety Concerns in Indian Exports				exports, and that these measures have been
Increased globalization and liberalization of markets,				"successful" in that they have not resulted in further
facilitated by the World Trade Organization (WTO),				alerts or rejections, the heavy handed approach with
are opening new export markets for Indian				which the problems were addressed, and the costs
agricultural products, both fresh and processed. Indian				involved, clearly suggest that it is not a strategy that
agricultural exports grew at an average annual rate				should be replicated. Although India has not faced
of 7.2% from 1990/91 to 2003/04. In response to				further rejections of exports to the EU, routine
these new opportunities, India's agriculture exports				laboratory testing still reveals violative residues,
diversified from traditional exports of tea, spices, and				indicative of the continuing need to focus on
coffee to include horticultural, fish and livestock				improving overall agricultural practices to assure food
products. Between the triennium ending (TE) 1991/92				safety.
and TE 2003/04, the value of fresh and processed				Lack of good agricultural, manufacturing and hygiene
fruit and vegetable exports rose from US$84 million				practices. In addition to constraints that arise due to
to US$394 million in real terms (1993/94 dollars) while				small farm sizes, the lack of good agricultural,
marine product exports rose from US$516 million to				manufacturing and hygiene practices remain a major
US$1.5 billion during the same period (Figure 4).				challenge for improving food safety both for the
As Indian agricultural exports diversified, and the				domestic and export market. It is only recently that
value of exports to high income countries increased,				efforts are being made to promote good practices.
India has had to confront new food safety				For example, Marine Products Export Development
challenges. Concerns over numerous rejections of				Authority (MPEDA) promoted codes of good
Indian agro-food exports on food safety grounds				practice, particularly with regards to addressing
have spilled overdomestically, generating greater				antibiotic use. To this extent the organization was
domestic attention to pervasive food safety				involved in monitoring antibiotic usage levels, providing
problems in the supply chain including high levels of				training and disseminating information (Henson, Saqib
pesticide residues, presence of heavy metals in food,				and Rajasena, 2005). In the spices sector, the Spices
and micro-biological contamination. The following				Board (SB) undertook measures to address problems
section describes recent food safety challenges in				with regards to pesticide residues and aflatoxin. The
Indian horticultural, spice and fisheries exports.				SB, in conjunction with State Departments of
Figure 4: Trend in Agricultural Exports, Triennium				Agriculture and various NGOs, supported measures to
Ending (TE) 1990/91 to TE 2003/04				promote integrated pest management (IPM) and the
Horticultural Exports. In 2004, India exported US$575				production of organic spices (Jaffee, 2005). They
million of fresh and processed fruits, vegetables and				helped address the aflatoxin concern by promoting
flowers. Traditionally India's fresh fruit and vegetables				better drying practices. The Ministry of Food
exports were targeted to markets in neighboring				Processing Industries and APEDA have both been
South Asian countries, to the Middle East and to East				promoting adoption of HACCP and ISO certification
Asia. Since the early 1990s India achieved some				among processed food manufacturers through a
success in exporting fresh horticultural produce to				range of training initiatives and private sector
Western Europe. India has been quite proud of its				investment grant for upgrading processing plants to
penetration into the U.K, Netherlands and German				obtain HACCP/ISO certification.
fresh grape markets. Grapes are a highly seasonal				However, the adoption of good practices remains
crop and Indian exporters have been targeting a				limited. Much remains to be done in improving
crucial March to April window in the European market,				practices with regards to the manufacture and use
which falls at the end of the main southern				of pesticides and improving post harvest techniques.
hemisphere production season (in South Africa and				Although there have been some limited spillovers
Chile) and before Egypt and Turkey enter the				from the export sector into the domestic market, in
market. Virtually all of India's grape exports are of				terms of improving production practices, for most
the Thompson Seedless variety.				commodities, including spices and fresh fruit and
The Indian grape export crisis in May 2003 was a				vegetables, farmers do not necessarily see any
pivotal wake-up call to Indian exporters concerning				advantages or necessity for altering their production
the costs of failing to meet food safety standards. In				practices since the vast majority of production is
the midst of a commercial dispute with an Indian				consumed in the domestic market. Until domestic
grape exporter, a Dutch importer had samples of the				consumer awareness and willingness to pay for
Indian grapes tested by a private laboratory. On				improved food safety becomes more widespread, it
finding that the grapes contained residues of the				is unlikely that addressing food safety concerns will
insecticide methomyl in excess of the EU maximum				become standard practice nationally. Similarly,
residue limit (0.05 microgram/kg.), the importer placed				significant measures are needed to improve the
an advertisement in the local paper warning that				safety of processed foods. In the food processing
grapes from this Indian supplier contained "poison"				sector there are a growing number of firms with
(World Bank, 2006b). Dutch authorities, who were				modern factories and good quality assurance
alerted about the finding, tested samples from the				systems, but this segment co-exists with large
28 containers of Indian grapes then in Rotterdam				numbers of small and older firms that would need to
port and found that about 75% of the samples				make significant upgrades to implement HACCP and
exceed the MRLs for methomyl and/or acephate.7				other quality assurance systems.19
The problem was reported on the EU Rapid Alert				In the short term, developments in the food retail
system, causing not only significant short term				sector in India are likely to bring about improvements
economic losses, but also considerable longer term				in food safety. International experience shows that
reputation damage. The price of Indian grapes				modernization of the food retail sector is an
dropped sharply, and the Indian grape shippers				important driver for change not only in the structure
incurred losses, either in Dutch sales or by diverting				of production and wholesale marketing of produce,
the shipments to other markets.				but also in fostering adoption of improved grades and
Spice Exports. India is the world's largest consumer				food safety standards (BerdeguÃ© et al 2003,
and producer of spices and is also a significant				Reardon and Timmer 2005a, 2005b).
exporter of spices (Jaffee, 2005). In 2004/05, India's

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Food Safety in India: Challenges and Opportunities