They are possibly the largest manufacturers of frozen Indian food in the world, supplying ever-open mouths in the UK, the US and Europe, as well as India. They make some 50,000 parathas and plan to turn out 10,000 samosas a day, and 3 million rotis a month, besides frozen matka chicken biryani. The manufacturers, though, are not Indian, or even based in India. Kawan Foods is Malaysian, and is promoted by a Chinese. If the Indian food business in the UK has been taken over by Bangladeshis, frozen food manufacture is rapidly becoming the domain of non-Indians. The fault, clarify Indian processed food manufacturers, does not lie so much with local enterprise as with policy. ‘‘Instead of focusing on excise and custom taxes, the government needs to identify certain products that can be promoted in select markets, and help the units that are willing to invest money in these segments,’’ says K P Sarin, executive secretary of the All India Food Processors’ Association. The local market, too, is changing, but huge costs prevent food manufacturers from capitalising on the development. ‘‘Frozen food is a sector on the upswing all over the world. But it is not viable here simply because of the high costs,’’ says Yogesh Bellani, additional general manager (new products), Satnam Overseas, one of the largest companies in the Indian food sector. ‘‘Heavy import duties, especially on technology not available locally, create huge hassles. Add the excise, sales and other taxes, and the end product becomes far too expensive for the Indian consumer.’’ Though Satnam has made a certain impact on the domestic market with its Kohinoor range of heat-and-eat foods, their market continues to be largely export-oriented. ‘‘The domestic market needs nurture, but there is absolutely no incentive,’’ says Bellani. The apathy explains the abysmal presence of Indian companies in the foreign Indian foods markets as well, ‘‘even though,’’ as Bellani points out, ‘‘we have an inherent advantage in the international food market, where the country of origin carries major weight’’. Adds Sarin, ‘‘The government keeps saying that the food processing industry is a positive sector and urges investors to put their money in it. But there are far too many constraints.’’ However, Sarin, for one, refuses to believe all is lost. ‘‘It’s a question of being pro-active, and of not being guided by the bureaucracy,’’ he says. He believes the best way to motivate the industry into investing is ‘‘through some sort of direct support’’. Sarin adds, ‘‘A comprehensive single food law should protect the industry from interference with a comprehensive single food law. Also, there should be a single ministry dealing with the industry. That’s the only way it will grow.’’ Joint secretary, Ministry of Food Processing, A N P Sinha, says he is aware of these issues. ‘‘We are working towards a modern food law, as also a fairer tax regime,’’ he says. ‘‘There are so many conflicting demands from different sections of the industry that it is taking us time to decide on a particular rate.’’ Unless the tangle is unravelled, warns Bellani, the worst case scenario could be upon the country: the Indian consumer unpacking a ready-to-eat paratha made in Malaysia.
