May 6, 2013
After spurious drugs, its sub- standard turmeric powder in Srinagar
Srinagar: After spurious drugs, turmeric powder was also found
sub-standard in the Kashmir valley.
An official spokesman said today that the sample of turmeric powder collected from a trader Farooq Ahmad Tantray at Gadda Kocha, Bohri Kadal in the down town was found sub-standard.
The trader was fined of Rs. one lakh, he said.
He said to ensure availability of standard food items for the consumers, fine of R 15,000 were imposed for the sale of sub standard milk under FSS Act 2006.
He said during the inspection of premises of Shakti Sweets, Zainakote was found unhygienic.
The Shakti sweets was also selling expired and infected food items, he said adding the trader was fined Rs 5000.
An official spokesman said today that the sample of turmeric powder collected from a trader Farooq Ahmad Tantray at Gadda Kocha, Bohri Kadal in the down town was found sub-standard.
The trader was fined of Rs. one lakh, he said.
He said to ensure availability of standard food items for the consumers, fine of R 15,000 were imposed for the sale of sub standard milk under FSS Act 2006.
He said during the inspection of premises of Shakti Sweets, Zainakote was found unhygienic.
The Shakti sweets was also selling expired and infected food items, he said adding the trader was fined Rs 5000.
Beware of that succulent bite!
KOCHI: Though the mercury
rises every summer, one could always look forward to a box of ripe
succulent mangoes for solace. The luscious yellow-fruit in box would
beat the heat and spread cheer all around even as kids pestered parents
for one extra bite. This summer, as many as 20 local varieties are
competing with other varieties from Maharashtra, Tamil Nadu and Andhra Pradesh and all of them have a common feature - a bright golden yellow colour.
The tantalizing bite soon turns sour as your taste buds correct your optical illusion within seconds and you realize that the fruit has not ripened completely. And the villain is a hazardous chemical - calcium carbide - which is rampantly used to ripen mangoes artificially and keep them fresh for longer periods.
But authorities said that unlike previous years, they have not received any complaints this season. "We will launch a special drive against the use of chemicals when we receive complaints. And strict action would be taken against those who are found using the chemical to ripen mangoes," said district food safety officer K Ajith Kumar.
Industrial grade calcium carbide is widely used for ripening mangoes and it releases acetylene, arsenic and phosphorous, say experts. "The chemical is available for Rs 25 to Rs 30/kg and one kilo is sufficient enough to ripen 10 tonne of mangoes. Arsenic and phosphorous released as a result of the chemical reaction can cause kidney problem," said Sacred Heart College's associate professor of botany department Thevara Jacob Varghese, adding that the chemical does not ripen the fruit fully but gives it a prominent yellow colour. Varghese said that artificially ripened mangoes can be identified by its colour. "It will be more yellowish compared to normal mangoes. It is always better to buy raw mangoes and ripen them at home," he said. In 2012, the shadow police had booked four cases against persons for stocking chemically ripened mangoes in the city for distribution.
Meanwhile, wholesale fruit dealers in Ernakulam market said mangoes arriving from Andhra Pradesh are less contaminated compared to the ones from other states. While local varieties hit the market by January, mangoes from Tamil Nadu, Andhra Pradesh and Maharashtra arrived in mid-April.
The tantalizing bite soon turns sour as your taste buds correct your optical illusion within seconds and you realize that the fruit has not ripened completely. And the villain is a hazardous chemical - calcium carbide - which is rampantly used to ripen mangoes artificially and keep them fresh for longer periods.
But authorities said that unlike previous years, they have not received any complaints this season. "We will launch a special drive against the use of chemicals when we receive complaints. And strict action would be taken against those who are found using the chemical to ripen mangoes," said district food safety officer K Ajith Kumar.
Industrial grade calcium carbide is widely used for ripening mangoes and it releases acetylene, arsenic and phosphorous, say experts. "The chemical is available for Rs 25 to Rs 30/kg and one kilo is sufficient enough to ripen 10 tonne of mangoes. Arsenic and phosphorous released as a result of the chemical reaction can cause kidney problem," said Sacred Heart College's associate professor of botany department Thevara Jacob Varghese, adding that the chemical does not ripen the fruit fully but gives it a prominent yellow colour. Varghese said that artificially ripened mangoes can be identified by its colour. "It will be more yellowish compared to normal mangoes. It is always better to buy raw mangoes and ripen them at home," he said. In 2012, the shadow police had booked four cases against persons for stocking chemically ripened mangoes in the city for distribution.
Meanwhile, wholesale fruit dealers in Ernakulam market said mangoes arriving from Andhra Pradesh are less contaminated compared to the ones from other states. While local varieties hit the market by January, mangoes from Tamil Nadu, Andhra Pradesh and Maharashtra arrived in mid-April.
Water tankers end strike after collector's assurance
KOCHI: City residents,
especially those who live in apartments, can heave a sigh of relief as
tankers supplying water have agreed to resume supply following a meeting
with district collector P I Sheik Pareeth on Sunday. A crisis-like situation was created
earlier in the day with over 400 water tankers going for an unannounced
indefinite strike from Saturday midnight.
The strike was in protest against closure of two water sources in Eloor recently. The tanker strike began at a time when Kerala Water Authority (KWA) announced a disruption in the water supply owing to maintenance work.
At the meeting, attended by KWA officials and representatives of water tankers, it was decided to provide additional quantity of water from KWA sources. As per the decision, water for 250 tankers will be supplied from the Aluva pump house and around 100 from the Choondi water treatment plant every day. At present, KWA is supplying water for 160 tankers from Aluva and 60 from Choondi.
"In order to ensure regular water supply, the district administration recently brought 10 tankers from Palakkad. If any crisis happens, these tankers will be pressed into service," said Pareeth.
Meanwhile, food safety officials said that two water sources were closed last month since the water was not fit for consumption and tankers have now called a strike against the decision. "We decided to stop services as there was not enough quantity to supply. We will resume our service as the district collector has agreed to provide additional water from KWA sources," said president of Ernakulam District Drinking Water Transporters Welfare Association V A Sakkir Hussain. At the meeting, the association raised the issue of food safety officials collecting samples from water meant for non-drinking purposes and taking action based on the result.
"Steps would be taken to differentiate tankers that supply water for non-drinking purpose. And a decision will be taken at the next meeting of the regional transport authority," said Pareeth.
Water supply disruption: Water supply will come to a halt on Monday in all areas except west Kochi. This is to facilitate the pipe laying works from Karanakkodam to Elamkulam. The supply will be restored on Tuesday.
The strike was in protest against closure of two water sources in Eloor recently. The tanker strike began at a time when Kerala Water Authority (KWA) announced a disruption in the water supply owing to maintenance work.
At the meeting, attended by KWA officials and representatives of water tankers, it was decided to provide additional quantity of water from KWA sources. As per the decision, water for 250 tankers will be supplied from the Aluva pump house and around 100 from the Choondi water treatment plant every day. At present, KWA is supplying water for 160 tankers from Aluva and 60 from Choondi.
"In order to ensure regular water supply, the district administration recently brought 10 tankers from Palakkad. If any crisis happens, these tankers will be pressed into service," said Pareeth.
Meanwhile, food safety officials said that two water sources were closed last month since the water was not fit for consumption and tankers have now called a strike against the decision. "We decided to stop services as there was not enough quantity to supply. We will resume our service as the district collector has agreed to provide additional water from KWA sources," said president of Ernakulam District Drinking Water Transporters Welfare Association V A Sakkir Hussain. At the meeting, the association raised the issue of food safety officials collecting samples from water meant for non-drinking purposes and taking action based on the result.
"Steps would be taken to differentiate tankers that supply water for non-drinking purpose. And a decision will be taken at the next meeting of the regional transport authority," said Pareeth.
Water supply disruption: Water supply will come to a halt on Monday in all areas except west Kochi. This is to facilitate the pipe laying works from Karanakkodam to Elamkulam. The supply will be restored on Tuesday.
FSSAI trains FBOs from Gujarat in preparing, serving food hygienically
A coordination committee appointed by the Food Safety and Standards Authority of India (FSSAI) – the country's apex food regulator – visited nine food markets in Ahmedabad recently, selected about 100 food joint owners and their employees and trained them at the Ahmedabad Municipal Corporation's (AMC) new West Zone office over a period of four days to prepare and serve food to their customers in a hygienic manner.
H G Koshia, commissioner, Food and Drug Control Administration (FDCA) Gujarat, was a member of the team that imparted the training, as were Mahesh Soni, deputy secretary, investigation, FDCA Gujarat, and Atul Soni, public analyst, AMC. The trainees were vendors at the Vastrapur, Kankaria, Akhbarnagar, Khokhra, Manek Chowk and Law Garden markets, and non-vegetarian ones such as Jamalpur, Teen Darwaja and Juhapura.
“Our teams visited the markets, observed the way the vendors work and took their photographs before selecting the vendors for training. We chalked out a training programme and the trainees were given complementary kits comprising gloves, aprons and caps, which they were asked to wear while cooking food and serving it to the customers.
They were also asked to undergo regular health check-ups,” Koshia said.
He added that the vendors were given a period of two weeks to improve the manner in which they work, and strict action would be taken against them if they did not adhere to any of the instructions given to them during the training programme. Incidentally, some of the selected vendors operate from roadside stalls, where the safety of the food remains a cause for concern.
Koshia said the FSSAI officials were impressed by the efforts put in by the trainers for the last one year, adding that K Chandramouli, chairperson of the country's apex food regulator, visited Ahmedabad and urged other states to follow the Gujarat model. So far, study teams from Bihar and Haryana have visited the state and replicated the training programme in those states, and eight other states will follow suit shortly.
H G Koshia, commissioner, Food and Drug Control Administration (FDCA) Gujarat, was a member of the team that imparted the training, as were Mahesh Soni, deputy secretary, investigation, FDCA Gujarat, and Atul Soni, public analyst, AMC. The trainees were vendors at the Vastrapur, Kankaria, Akhbarnagar, Khokhra, Manek Chowk and Law Garden markets, and non-vegetarian ones such as Jamalpur, Teen Darwaja and Juhapura.
“Our teams visited the markets, observed the way the vendors work and took their photographs before selecting the vendors for training. We chalked out a training programme and the trainees were given complementary kits comprising gloves, aprons and caps, which they were asked to wear while cooking food and serving it to the customers.
They were also asked to undergo regular health check-ups,” Koshia said.
He added that the vendors were given a period of two weeks to improve the manner in which they work, and strict action would be taken against them if they did not adhere to any of the instructions given to them during the training programme. Incidentally, some of the selected vendors operate from roadside stalls, where the safety of the food remains a cause for concern.
Koshia said the FSSAI officials were impressed by the efforts put in by the trainers for the last one year, adding that K Chandramouli, chairperson of the country's apex food regulator, visited Ahmedabad and urged other states to follow the Gujarat model. So far, study teams from Bihar and Haryana have visited the state and replicated the training programme in those states, and eight other states will follow suit shortly.
Sale of artificially ripened mangoes still on
TRICHY: The sale of artificial ripened mangoes continues unabated at retail shops in and around Trichy, despite claims by officials that action has been taken against traders indulging in the harmful practice. Meanwhile, the food safety wing in its effort to check chemical-induced artificial ripening is planning to introduce new harmless methods to ripen the mangoes.
As mango season commences by May, consumers try out different varieties available in the market. Though, most traders in Trichy use banned carbide stones to ripen mangoes, many customers are unaware of the fact that they taste the wrong ones ripened through artificial methods. A recent raid at two godowns in Gandhi Market area exposed the extent of artificial ripening. On April 25, the food safety wing, acting on complaints, seized 2.6 tonnes of artificially ripened, mangoes sand several packets of carbide powders from two 'mandis' there. The seized mangoes and the carbide powder were later destroyed.
Eating artificially ripened mangoes could cause health complications like diarrhoea, indigestion and nervous problems, said Dr A Ramakrishnan, designated officer of the state food safety and drug administration department (food safety wing). "We are conducting regular raids at godowns and shops. After seizing the mangoes from two godowns, the practice has come down," said Dr Ramakrishnan.
But in reality, traders resort to the pernicious practice as no stringent action is taken against offenders. So, consumers have to be cautious while picking up their favourite summer fruit. The right mango could be spotted by its colour, taste and aroma. The colour of chemical-laden mangoes would be dark yellow and usual aroma will be missing. If one eats them, one could feel inflammation in the throat. Meanwhile, the food safety wing recently called for a meeting with godown owners in Trichy district to advise them not to use carbide stones. "We are deciding to introduce alternative harmless methods to ripen the mango. We will be consulting with the horticulture department officials to check the possibilities for introducing new methods," said Dr Ramakrishnan.
Commenting on this new initiative, a senior officer in the horticulture department in Trichy said "Ethrel (a growth regulator that promotes ripening) could be used to ripen mangoes at cold storages as well as in any room. But nothing has been decided on our part to provide instructions to the traders to use this method."
Most mangoes arriving in Trichy market are supplied from farms in Srirangam, Lalgudi, Thogaimalai, Manapparai, Vaiyampatti, Thottiyam and Musiri. Though, Imam Pasand is the unique variety of Trichy, Panganapalli, Malguava, Jangiri, Alphonso, Mayavaram Paathiri and Kaalapadi are also common. A few varieties come from Madurai, Salem and Dindigul districts.
As mango season commences by May, consumers try out different varieties available in the market. Though, most traders in Trichy use banned carbide stones to ripen mangoes, many customers are unaware of the fact that they taste the wrong ones ripened through artificial methods. A recent raid at two godowns in Gandhi Market area exposed the extent of artificial ripening. On April 25, the food safety wing, acting on complaints, seized 2.6 tonnes of artificially ripened, mangoes sand several packets of carbide powders from two 'mandis' there. The seized mangoes and the carbide powder were later destroyed.
Eating artificially ripened mangoes could cause health complications like diarrhoea, indigestion and nervous problems, said Dr A Ramakrishnan, designated officer of the state food safety and drug administration department (food safety wing). "We are conducting regular raids at godowns and shops. After seizing the mangoes from two godowns, the practice has come down," said Dr Ramakrishnan.
But in reality, traders resort to the pernicious practice as no stringent action is taken against offenders. So, consumers have to be cautious while picking up their favourite summer fruit. The right mango could be spotted by its colour, taste and aroma. The colour of chemical-laden mangoes would be dark yellow and usual aroma will be missing. If one eats them, one could feel inflammation in the throat. Meanwhile, the food safety wing recently called for a meeting with godown owners in Trichy district to advise them not to use carbide stones. "We are deciding to introduce alternative harmless methods to ripen the mango. We will be consulting with the horticulture department officials to check the possibilities for introducing new methods," said Dr Ramakrishnan.
Commenting on this new initiative, a senior officer in the horticulture department in Trichy said "Ethrel (a growth regulator that promotes ripening) could be used to ripen mangoes at cold storages as well as in any room. But nothing has been decided on our part to provide instructions to the traders to use this method."
Most mangoes arriving in Trichy market are supplied from farms in Srirangam, Lalgudi, Thogaimalai, Manapparai, Vaiyampatti, Thottiyam and Musiri. Though, Imam Pasand is the unique variety of Trichy, Panganapalli, Malguava, Jangiri, Alphonso, Mayavaram Paathiri and Kaalapadi are also common. A few varieties come from Madurai, Salem and Dindigul districts.
After holding Kochiites to ransom, tankers are back
People have been asked to source water only from tankers painted sky
blue with ‘drinking water’ displayed prominently on the body.
Water tanker lorry owners end daylong strike
Water tanker lorry owners have called off daylong strike
but the residents associations are seething at the operators’ tactic of
holding consumers to ransom to stop enforcement officials from hounding
them.
The strike was called off after the government
agreed to allow them to source water from treatment plants and other
sources. It is learnt that samples might not be collected from tankers
supplying water to construction sites. The decision was taken following
talks convened here on Sunday by District Collector Sheikh Pareeth.
There are allegations that a couple of treatment plants are sourcing
highly polluted water from the Periyar and supplying it to tanker
operators.
The
apex body of residents associations in the district, EDRAAC, has
denounced the “pressure tactics” adopted by operators whenever water
safety and health officials are hot on their heels.
The apex body is working on ways to cut down dependence on private suppliers.
Its
president Rangadasa Prabhu said the council was chalking out plans to
encourage members of around 1,000 residents associations to install
rainwater harvesting plants in households.
“This is
to cut down on water supplied in tankers. People are often being ripped
off by passing unfit water as drinking water,” he said.
He
urged the district administration and health officials to stand up to
the lorry operators, and assured them of the council’s support.
There
is also a growing demand to set up desalination and treatment plants in
areas facing water shortage since they will be less expensive than
laying pipelines.
R. S. Satheeshkumar, Chief Food
Safety Officer of Mobile Vigilance Squad in Ernakulam said the tankers
were allowed to source water from various private treatment plants in
the suburbs. But food safety officials would ensure that only quality
water was supplied to houses and establishments, he said.
“We
will continue to collect samples and test them. If a sample is found to
be of inferior quality, the treatment plant will be shut. It will be
allowed to open only after a transparent, joint inspection by a
committee comprising our representatives, those from the District
Medical Office and district administration,” he said.
Officials
of the Motor Vehicles Department too are hacked off at the frequent
threats of strike by lorry operators. “Even representatives of local
bodies in whose areas tanker water is supplied pressure us to go slow
against lorry owners,” said Ernakulam RTO B.J. Antony.
Consumer Protection Council has not met forages, says former member of forum
‘Consumer welfare a neglected area’
The concept of consumer protection by means of enacting
laws through organisations designed to ensure the rights of consumers as
well as fair trade competition and the free flow of truthful
information in the marketplace is conspicuously missing in Krishna
district. “Consumer protection laws are a form of government regulation
aimed at protecting the rights of consumers. It mainly deals with areas
where safety or public health is an issue, such as food,” former member
of the District Consumer Forum, Vijayawada, P.V.V. Satyanarayana Murthy
said.
Citing example of the new food safety law that
has replaced the Food Adulteration Act, he said earlier the Vijayawada
Municipal Corporation’s food inspectors used to collect over 400 samples
which is not the case now. “An official appointed to coordinate for the
entire Krishna district has apparently failed miserably in his job,” he
said.
Pointing to the mushrooming push carts loaded
with junk food along the main roads, he said the fact that most of these
vendors park their push carts along open drains where the food stuff is
exposed to unhygienic surroundings.“Consumer welfare has always been a
neglected area. The District Supply Officer, who is also the nodal
officer for consumer protection, is evidently disinterested in consumer
protection,” said Mr. Murthy.
Citing a series of
issues where the hapless consumer has been at the receiving end of the
‘official apathy’, he said supply of contaminated water by the
Vijayawada Municipal Corporation (VMC) was a perennial problem. Since it
directly affects public welfare, authorities at the helm of affairs in
the Consumer Forum must do the needful, he said.
The
other ‘menaces’ listed out by him that need immediate attention include
unregistered chit business in every nook and cranny of the city, the
real estate business where many a time, the unsuspecting consumer walks
into the trap laid by the developer or builder, unscrupulous jewellery
merchants who do not issue proper bills and resort to other unfair means
to make profits, hospital managements ‘looting’ people and insurance
firms by producing inflated figures to the insurance companies.
“The
Consumer Protection Council which is supposed to meet twice a year, has
not met for ages,” he said, urging the district Collector, who is the
chairman of the council, to look into the above mentioned issues.
China to punish stars promoting unsafe food
Beijing, May 5 (IANS) Celebrities in China will be
punished for advertising unsafe food products in accordance with laws, a
judicial official has said.
The move appears aimed at combating increasing number of food scandals in the country.
The Supreme People's Court (SPC) spokesperson has stated the celebrities will also be prosecuted for criminal liability for producing and spreading deceptive advertising with the identity of advertising managers or releasers, reported China Daily.
The SPC and the Supreme People's Procuratorate recently issued interpretations that specify crimes related to food safety and set standards for the punishment for these crimes.
The move appears aimed at combating increasing number of food scandals in the country.
The Supreme People's Court (SPC) spokesperson has stated the celebrities will also be prosecuted for criminal liability for producing and spreading deceptive advertising with the identity of advertising managers or releasers, reported China Daily.
The SPC and the Supreme People's Procuratorate recently issued interpretations that specify crimes related to food safety and set standards for the punishment for these crimes.
Risk on a platter
A recent research on the safety of GM (genetically
modified) foods has exposed the folly of limiting earlier researches to
just 90 days as it found that many of the serious health problems appear
after 90 days. This research was conducted by a team led by Gilles-Eric
Seralini, Professor of Microbiology at the University of Caen in
France.
Before this, most research on rats regarding
safety of GM foods had been conducted for only 90 days. The need for
longer-duration research was widely felt. The significance of Seralini’s
research was that it was conducted over a period of two years. The
results of this research, published in the journal Food and Chemical Toxicology,
have shown that among the rats fed on GM food (maize), female rats died
two to three times more compared to female rats not fed GM food
(controls). Similarly health problems relating to liver, kidney and
tumours were much more severe in female rats fed on GM crop compared to
controls. Male rats fed on GM food also had much higher incidence of
tumours.
It is believed that the short duration of observation was due to pressure of corporate interests.
Erik
Millstone, Professor of Science Policy at the University of Sussex, has
commented, “The fundamental problem of the way in which GM foods have
been approved is that they haven’t really been tested properly at all.
All that has happened is something which I would characterise as an
exercise in wishful thinking.”
Despite the efforts by
big GM corporations to direct research along lines convenient to them,
warnings relating to serious health hazards of GM crops and GMOs
(genetically modified organisms) have the support of some of the world’s
most eminent and well-qualified independent scientists and experts in
the field.
The Independent Science Panel, which
consists of eminent scientists from many countries covering a wide range
of relevant disciplines, reviewed the evidence on the hazards of GMOs.
This review concluded that many GM crops contain gene products known to
be harmful. For example, the Bt proteins that kill pests include potent
immunogens and allergens. Food crops are increasingly being engineered
to produce pharmaceuticals, drugs and vaccines in the open environment,
exposing people to the danger of inappropriate medication and their
harmful side effects.
Herbicides tolerant GM crops
are tied to the broad-spectrum herbicide glyphosate and glufosinate
ammonium. These have been linked to spontaneous abortions, birth defects
and other serious health problems for human beings, animals and
soil-organisms. GM varieties are unstable, with the potential to create
new viruses and bacteria that cause diseases, and to disrupt gene
function in animal and human cells.
More recently, 17
distinguished scientists from Europe, the U.S., Canada and New Zealand
wrote in a letter to the Prime Minister of India: “GM transformation can
produce novel biochemical processes that are unpredictable and for
which there is no natural history to assume are safe.
Of
greatest concern is that studies show negative health effects with GM
crops that have already been approved and which have been grown
commercially for 10-13 years. This highlights the inadequacy of the
original criteria and set of data on the basis of which marketing
approval was and is still being granted.”
In the more
specific context of Bt brinjal, this letter said, “Bt toxin is a proven
potent immunogen raising justifiable concerns that it can give rise to
allergic reactions. Animals fed diets containing Bt corn have shown
signs of direct toxicity. Independent re-evaluation of Monsanto’s own
research on their Bt corn crops shows negative health effects even in
short-term (90-day) animal feeding studies.”
The
Mahyco-Monsanto dossier of the raw experimental data of animal feeding
studies with Bt brinjal shows highly statistically significant negative
signs of toxicity on the functioning of multiple organ systems such as
liver, kidney, blood and pancreas in all animals tested (especially
rats, rabbits and goats). It is very important to note that these
adverse effects were observed after only at most, a 90-day feeding time,
which raises serious concerns about the safety of consuming this
product over an entire lifetime. Long-term (at least two-year) animal
feeding studies were not done and are stated as not required by the apex
regulator, contrary to the science, which requires these studies to
detect chronic slow-onset toxicity and cancer.
Rampant demands for bribes puts brakes on India's retail growth
Hong-Kong
entrepreneur Ramesh Tainwala spent 18 months operating branded clothing
retail stores in India before deciding it was impossible to succeed
without paying bribes.
Tainwala, a 55-year-old expatriate Indian, owns Planet Retail, which held the India franchise rights for US fashion labels Guess and Nautica as well as UK retailers Next and Debenhams. He sold the brands last September to various Indian businesses.
"Right now, it's not possible to do business in India without greasing palms, without paying bribes," said Tainwala, who is also luggage maker Samsonite's president for Asia Pacific and West Asia. Tainwala said he himself refused to pay bribes to licensing officials, though that could not be independently confirmed.
India is the next great frontier for global retailers, a $500 billion market growing at 20% a year. For now, small shops dominate the sector. Giants from Wal-Mart Stores Inc to IKEA AB have struggled merely for the right to enter, which they finally won last year.
But a daunting array of permits - more than 40 are required for a typical supermarket selling a range of products - force retailers to pay so-called "speed money" through middlemen or local partners to set up shop.
In interviews with middlemen and several retailers, it was found that the official cost for key licenses is typically accompanied by significant expenses in the form of bribes. The added cost erodes profitability in an industry where margins tend to be razor-thin. It also creates a risk for companies by making them complicit in activity that, while commonplace in India and other emerging markets, is nonetheless illegal.
That creates a handicap for foreign operators such as US-based Wal-Mart, the world's biggest retailer, and Britain's Tesco Plc and Marks and Spencer Plc, which must comply with anti-bribery laws in their home countries even while operating abroad.
A Wal-Mart spokesperson said the company is strengthening its compliance programs, part of a global compliance review that has cost more than $35 million over the last 18 months. IKEA, which is awaiting final approval to enter India, has started assessing the market, a spokeswoman said, adding the group has "zero tolerance" for corruption in any form.
"Harassed for money"
Retail is especially prone to bribery because stores sell multiple types of merchandise, which in India increases the number of licenses and permits needed - a legacy of the so-called "Licence Raj" that was largely dismantled during the country's early 1990s economic reforms.
The World Bank's Ease of Doing Business survey ranks India 173rd out of 185 countries when it comes to starting a business, behind Malawi, Niger, Sudan and Guatemala. Transparency International in 2012 ranked it 94th out of 174 countries on its corruption table - a fall from 72nd five years earlier.
"Even for a simple thing like putting up signage in front of your store you are harassed for money," said Tainwala. "There are many bodies regulating that and the permits needed to set up one shop are baffling."
The License Raj, he said, substantially increases costs in a market where sluggish consumer demand, high rentals and a depreciating currency for over a year have made it hard for retailers like him to operate profitably. He plans to return when there is more order in the way business is done.
Ais Kumar, head of the western region for the Food Safety & Standards Authority of India (FSSA), acknowledged that graft exists across government ranks and departments. Many government departments also have staff shortages that cause delays.
"These licenses are required for compliance and safety and not because the government wants to delay or complicate things for anyone. It's the law of the land and it must be followed," he said, adding the government is striving to put licensing systems online to streamline the process and make it more transparent. Checks with three retailers, however, showed the online forms still need to be physically delivered to the respective licensing departments.
Under the table
Permits needed to open a store range from the mundane, such as a trade license, to the petty: lighted shelves require a separate permit, and even a shop window needs a license.
Want to play music in the store? That requires a license. So does selling cosmetics or providing valet parking.
A convenience store that sells basics such as milk, vegetables, cereal, bread, eggs, meat and baby food will require a minimum of 29 licenses from nearly 20 different authorities, according to a list of licenses compiled by the Retailers Association of India and obtained by Reuters.
Those include a food license; a license for sale, storage and distribution; a food-handler's certificate; a license for milk products and another for frozen non-vegetarian food. All those licenses comes from the state-level FSSA, but require separate applications.
But the FSSA does not give permission for operating freezers and chillers. That requires a separate license from a municipal body. Selling baby food requires a permit from a state Controller of Food and Supply. The state Agriculture Produce Marketing Committee must give permission to sell vegetables; the central Directorate of Marketing and Inspection gives permission to grade and sort those vegetables; the Controller of Rationing grants licenses for selling essential commodities like rice.
All those licenses need to be renewed, sometimes annually.
The Directorate of Marketing and Inspection declined comment, while the other departments were not available.
Most of the licenses required can either be done away with completely or combined into one, said Lalit Agarwal, chairman of V-Mart Retail. "Every day, you have new licenses added to the list, but nothing ever gets deleted."
It's not just the red tape of getting those licenses, it's also the under-the-table money that retailers typically have to pay on top of the official fees.
In Bandra, a high-end suburb of Mumbai, a state-issued trade license for a 10,000-square-foot (930 square-meter) store - very large by Indian standards - officially costs Rs. 100,000. But there is an "additional charge" of Rs. 1.25 million, according to documents obtained by Reuters from the Employee State Insurance, Provident Fund and Industrial Law Practitioners Association of India (EPILPA), which assist retailers in obtaining permits.
EPILPA said their members, who are consultants, collect the "speed money" from retailers and pass it on to the government officials. They act as middlemen who do not take a cut and hence should not be held responsible for the bribes being paid.
"In India, you don't need to ask retailers if you need to pay bribes," said Punit Agarwal, CEO of Promart, a mid-sized multi-brand clothing retailer. "It's known. Here you have a price tag for everything."
He said his company hires middlemen and pays their fees because he knows bribes have to be paid, but does not want his company to get directly involved.
Speed merchantsMiddlemen sell speed. They provide access to government officers who can sign off on permits as soon as they are paid. The middleman negotiates the bribes, thus keeping company officials from being directly involved.
Take the case of British footwear retailer Clarks. It entered India through a partnership with Future Group, which runs the country's largest listed retail entity, Future Retail. Clarks has hired consultants and, according to one of them, is negotiating with municipal officials for a 365-day license that would allow it to open three of its five stores in Mumbai every day of the year.
For each of the three stores, the company was asked to pay Rs. 60,000 per officer for the eight officers involved in its case - a total of Rs. 500,000 per store, said Oovesh Sarabhai, of Atlas AVA Consultants, who is working with Clarks to secure the licenses. The official fee is about Rs. 6,000 per store, he said.
The government officials involved in issuing the license declined to comment when contacted by Reuters. Future and Clarks declined to comment.
A senior Clarks official, who declined to be identified, confirmed the company had applied for a 365-day license for the three Mumbai stores in January 2012 and received notifications from the government related to this, but has so far failed to receive the licenses. "It's stuck because of the bureaucracy," the official said.
No high-level official dealing with licenses ever accepts a bribe directly, said Raichand Jiwani, owner of Emkay Consultancy Services, who is a member of EPILPA and helps several top Indian retailers to procure licenses. Officials use subordinates to collect the money and only from trusted people. The payment is then shared by junior and senior officers and up the bureaucratic chain.
"The nexus runs far deeper than just a few corrupt officials at the local level," said Jiwani, noting that if a retailer approaches an official directly he will not be told about the bribe, but his papers will take months to be approved.
Is India worth it?
While India holds vast promise for retailers, with its growing spending power and rising middle class, most local supermarket chains lose money due to low prices, poor supply chains and high rents. Wal-Mart has said it aims to turn a profit in 10 years, something it hasn't managed in China after 12 years.
Tainwala thinks India offers miniscule retail returns for the massive investment of time and energy that is needed. Fast expansion requires paying speed money, he said.
Tainwala recalls he was asked to pay either a Rs. 22,000 monthly fee to have signage outside his store in Mumbai's plush Atria mall, or a Rs. 2,000 bribe every month to circumvent it. He said he chose to pack up rather than bribe the municipal officials needed to get his signs approved.
"My people said we have to close the stores, and we decided to do that," he said. "You get excited about the Indian middle class but then you wonder - is it really worth it?"
Tainwala, a 55-year-old expatriate Indian, owns Planet Retail, which held the India franchise rights for US fashion labels Guess and Nautica as well as UK retailers Next and Debenhams. He sold the brands last September to various Indian businesses.
"Right now, it's not possible to do business in India without greasing palms, without paying bribes," said Tainwala, who is also luggage maker Samsonite's president for Asia Pacific and West Asia. Tainwala said he himself refused to pay bribes to licensing officials, though that could not be independently confirmed.
India is the next great frontier for global retailers, a $500 billion market growing at 20% a year. For now, small shops dominate the sector. Giants from Wal-Mart Stores Inc to IKEA AB have struggled merely for the right to enter, which they finally won last year.
But a daunting array of permits - more than 40 are required for a typical supermarket selling a range of products - force retailers to pay so-called "speed money" through middlemen or local partners to set up shop.
In interviews with middlemen and several retailers, it was found that the official cost for key licenses is typically accompanied by significant expenses in the form of bribes. The added cost erodes profitability in an industry where margins tend to be razor-thin. It also creates a risk for companies by making them complicit in activity that, while commonplace in India and other emerging markets, is nonetheless illegal.
That creates a handicap for foreign operators such as US-based Wal-Mart, the world's biggest retailer, and Britain's Tesco Plc and Marks and Spencer Plc, which must comply with anti-bribery laws in their home countries even while operating abroad.
A Wal-Mart spokesperson said the company is strengthening its compliance programs, part of a global compliance review that has cost more than $35 million over the last 18 months. IKEA, which is awaiting final approval to enter India, has started assessing the market, a spokeswoman said, adding the group has "zero tolerance" for corruption in any form.
The graph shows how vacancy rates in the country are set to rise. Reuters
"Harassed for money"
Retail is especially prone to bribery because stores sell multiple types of merchandise, which in India increases the number of licenses and permits needed - a legacy of the so-called "Licence Raj" that was largely dismantled during the country's early 1990s economic reforms.
The World Bank's Ease of Doing Business survey ranks India 173rd out of 185 countries when it comes to starting a business, behind Malawi, Niger, Sudan and Guatemala. Transparency International in 2012 ranked it 94th out of 174 countries on its corruption table - a fall from 72nd five years earlier.
"Even for a simple thing like putting up signage in front of your store you are harassed for money," said Tainwala. "There are many bodies regulating that and the permits needed to set up one shop are baffling."
The License Raj, he said, substantially increases costs in a market where sluggish consumer demand, high rentals and a depreciating currency for over a year have made it hard for retailers like him to operate profitably. He plans to return when there is more order in the way business is done.
The growth of India's retail industry is stifled by the amount one has to pay for licenses while setting up store. Reuters
Ais Kumar, head of the western region for the Food Safety & Standards Authority of India (FSSA), acknowledged that graft exists across government ranks and departments. Many government departments also have staff shortages that cause delays.
"These licenses are required for compliance and safety and not because the government wants to delay or complicate things for anyone. It's the law of the land and it must be followed," he said, adding the government is striving to put licensing systems online to streamline the process and make it more transparent. Checks with three retailers, however, showed the online forms still need to be physically delivered to the respective licensing departments.
Under the table
Permits needed to open a store range from the mundane, such as a trade license, to the petty: lighted shelves require a separate permit, and even a shop window needs a license.
Want to play music in the store? That requires a license. So does selling cosmetics or providing valet parking.
A convenience store that sells basics such as milk, vegetables, cereal, bread, eggs, meat and baby food will require a minimum of 29 licenses from nearly 20 different authorities, according to a list of licenses compiled by the Retailers Association of India and obtained by Reuters.
The pie charts show how the India's retail sector is divided. Reuters
Those include a food license; a license for sale, storage and distribution; a food-handler's certificate; a license for milk products and another for frozen non-vegetarian food. All those licenses comes from the state-level FSSA, but require separate applications.
But the FSSA does not give permission for operating freezers and chillers. That requires a separate license from a municipal body. Selling baby food requires a permit from a state Controller of Food and Supply. The state Agriculture Produce Marketing Committee must give permission to sell vegetables; the central Directorate of Marketing and Inspection gives permission to grade and sort those vegetables; the Controller of Rationing grants licenses for selling essential commodities like rice.
All those licenses need to be renewed, sometimes annually.
The Directorate of Marketing and Inspection declined comment, while the other departments were not available.
Most of the licenses required can either be done away with completely or combined into one, said Lalit Agarwal, chairman of V-Mart Retail. "Every day, you have new licenses added to the list, but nothing ever gets deleted."
It's not just the red tape of getting those licenses, it's also the under-the-table money that retailers typically have to pay on top of the official fees.
In Bandra, a high-end suburb of Mumbai, a state-issued trade license for a 10,000-square-foot (930 square-meter) store - very large by Indian standards - officially costs Rs. 100,000. But there is an "additional charge" of Rs. 1.25 million, according to documents obtained by Reuters from the Employee State Insurance, Provident Fund and Industrial Law Practitioners Association of India (EPILPA), which assist retailers in obtaining permits.
EPILPA said their members, who are consultants, collect the "speed money" from retailers and pass it on to the government officials. They act as middlemen who do not take a cut and hence should not be held responsible for the bribes being paid.
How does India compare to other couthries as a target for retailers? Reuters
"In India, you don't need to ask retailers if you need to pay bribes," said Punit Agarwal, CEO of Promart, a mid-sized multi-brand clothing retailer. "It's known. Here you have a price tag for everything."
He said his company hires middlemen and pays their fees because he knows bribes have to be paid, but does not want his company to get directly involved.
Speed merchantsMiddlemen sell speed. They provide access to government officers who can sign off on permits as soon as they are paid. The middleman negotiates the bribes, thus keeping company officials from being directly involved.
Take the case of British footwear retailer Clarks. It entered India through a partnership with Future Group, which runs the country's largest listed retail entity, Future Retail. Clarks has hired consultants and, according to one of them, is negotiating with municipal officials for a 365-day license that would allow it to open three of its five stores in Mumbai every day of the year.
For each of the three stores, the company was asked to pay Rs. 60,000 per officer for the eight officers involved in its case - a total of Rs. 500,000 per store, said Oovesh Sarabhai, of Atlas AVA Consultants, who is working with Clarks to secure the licenses. The official fee is about Rs. 6,000 per store, he said.
The government officials involved in issuing the license declined to comment when contacted by Reuters. Future and Clarks declined to comment.
A senior Clarks official, who declined to be identified, confirmed the company had applied for a 365-day license for the three Mumbai stores in January 2012 and received notifications from the government related to this, but has so far failed to receive the licenses. "It's stuck because of the bureaucracy," the official said.
No high-level official dealing with licenses ever accepts a bribe directly, said Raichand Jiwani, owner of Emkay Consultancy Services, who is a member of EPILPA and helps several top Indian retailers to procure licenses. Officials use subordinates to collect the money and only from trusted people. The payment is then shared by junior and senior officers and up the bureaucratic chain.
"The nexus runs far deeper than just a few corrupt officials at the local level," said Jiwani, noting that if a retailer approaches an official directly he will not be told about the bribe, but his papers will take months to be approved.
Is India worth it?
While India holds vast promise for retailers, with its growing spending power and rising middle class, most local supermarket chains lose money due to low prices, poor supply chains and high rents. Wal-Mart has said it aims to turn a profit in 10 years, something it hasn't managed in China after 12 years.
Tainwala thinks India offers miniscule retail returns for the massive investment of time and energy that is needed. Fast expansion requires paying speed money, he said.
Tainwala recalls he was asked to pay either a Rs. 22,000 monthly fee to have signage outside his store in Mumbai's plush Atria mall, or a Rs. 2,000 bribe every month to circumvent it. He said he chose to pack up rather than bribe the municipal officials needed to get his signs approved.
"My people said we have to close the stores, and we decided to do that," he said. "You get excited about the Indian middle class but then you wonder - is it really worth it?"
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