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JUN2017 FOOD FOCUS THAILAND
SURF
THE AEC
Last year, FSSAI had tried to be more engaging
and at least shown more enthusiasm. It had made
several changes in theboardof rules and regulations
makers.MOFPI hadalso replaced its secretary twice,
inaccordancewith thechangesofpresidentandboard
ofexecutivesofFSSAI.Thepositionshiftingencouraged
events thatcreatedpositiveenvironment.Notonly that,
the Ministry of Agriculture and FarmersWelfare was
also very active in many events, as well as the
government’s independent entity, National Centre for
Cold Chain Development (NCCD). There is the
necessity to study the result of two new events; Food
Park,andColdChain,which tookplacebecauseof the
contribution of various organizations. It is worthwhile
toanalyze thecostsandprofits from these twoevents.
Nestlé India facedabigproblem last yearwhen its
instantnoodle “Maggi”wasdisqualified inmonosodium
glutamate test by Gorakhpur Laboratory. The test
emphasized the importance of food quality among
leaders of food processing industry. Nestlé reported
that it lostmore than77millionUSDollar in theMaggi
scandal. 
In the past year, BabaRamdev stepped into food
processing industry.Apparently,he involves inall types
of foodproductsandhasbeenverysuccessful both in
terms of sales and profits while, in contrast, other
businesses were struggling. Baba Ramdev also
challenged large enterprises in the industry by trying
topromote thepurity of his products and claimed that
others’ contain contaminations or being lower than
standards. Such advertisement caused damages to
India’s food processing SMEs. However, several
reports weremade that not all of his businesses had
gonewell.Ramdev’sbrandPatanjaliwas reportedand
fined for 1.1 million rupee for not clarifying the
production location on its contracted products.
Moreover, the brand was also reported to be of less
quality as it had claimed.
AfterMaggiwas forciblywithdrawn from themarket,
Patanjali’s instant noodle “Atta” – who claimed to
providebetter nutrition–and ITC stepped in to fill the
void. In the past year, a lot of competition and
opportunity in the industry canbe seen from commercials andpromotions.
In 2016, we also see the start of Goods and Services Tax (GST). This is part of the
commonmarket scheme in which the central government is trying to collect similar tax
rate across states and eliminate other taxes such as Central Excise Tax (CET), Value
Added Tax (VAT), Central Sales Tax (CST), and Octroi tax. The industrial sector hopes
that the launchofGSTwould result inaone-stop service for tax collectionandenterprise
registration for every business in India. However, what happenedwas a chaos.
Nowadays, the registration forservice tax isopenedunderonlyonechannel,Permanent
Account Number (PAN) – a set of numbers given by the Indian government to a person
or a corporate whose income is generated in India. GST is collected in 3 levels, CGST
(Central Government’s GST), SGST (State Government’s GST), and IGST (Integrated
GST collectedwhen the goods and servicesmove from one state to another).
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