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Here’s what the Maggi fiasco did to the Indian food processing industry

Here’s what the Maggi fiasco did to the Indian food processing industry
Strategy2 min read
The recent fiasco on Nestle’s Maggi that made headlines for all the wrong reasons is now showing up its positive side. After the reports of our much awaited noodle making a comeback cheered us up, the affirmative side of the entire episode has also started making its way.

As a result of the entire event, food processing companies have now started branding their products as 'adulterant free' and 'toxic metal free'. Leave branding, these companies are now also working closely with farmers to ensure quality raw material.

In a similar move, LT Foods, which sells Dawat brand of rice, is likely to launch its flour brand as toxic metal free. Vivek Chandra, CEO for global branded business at LT Foods, told The Economic Times, "We will be launching our atta under the Devaaya brand. It will be branded as lead free and will resonate our company's philosophy of selling safe produce.” Chandra also revealed that during this Rabi season, the company is working closely with farmers in Madhya Pradesh to ensure quality products.

Apart from LT Foods, brands like Shakti Bhog Foods, Mother Dairy, Cargill India and ITC have also joined the bandwagon after sensing the increasing consumer awareness. Siraj Chaudhary, chairman at Cargill India, told the business daily, "Companies who are just entering the sector or a product category might highlight food safety as product differentiator while marketing. It wasn't used till a year ago but now it is used."

Talking about bringing global standards to India, KK Kumar, MD at Shakti Bhog Foods, said that "There is a focus to sell quality produce and consumers are now demanding it strongly."

Kumar also added that the moisture level in Shakti Bhog flour is only 10.5%, which is much lower than the 14% limit prescribed by the government. Earlier, Tata group had branded its i-Shakti Dals as much more nutritious and tasty because of their unpolished pulses, which actually are made without artificial stone powder, colour and oil.

Mother Dairy, in a similar manner, markets its pulses brand as being unpolished.

"Most of the people may be aware that colours, chemicals and metals are part of the food and fruit we eat. What needs to be highlighted now is that the shining white ginger sold in the Delhi market may have got an acid wash or the brinjal must have got a colour wash," a marketing official of this leading national retail chain told ET.

Rajnikant Rai, COO for agribusiness division at ITC, informed the business daily, “Food companies said governments, farmers and companies need to work together to ensure quality of food. The challenge in the country is much larger than what few companies can do for their brand and sourcing. The government needs to address the larger challenge like mapping of soil or water quality in this country."

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