Entrepreneurship development and Industrial Consultancy

Module 4. Overview of dairy industry

Lesson 18
EXPORT AND IMPORT POLICIES RELEVANT TO DAIRY SECTOR

18.1 Introduction

Consumers all over the world prefer high quality food products. In order to ensure quality of food products exported from India, Indian government has established Export Inspection Council of India (EIC) as an official certification agency with statutory status in 1964. It is mandatory to have pre shipment export certification for dairy products. For dairy products, the certification system involves approval of milk processing units, followed by periodic surveillance by export inspection agencies.

18.2 Export Certification System

Dairy products fall under the category of compulsory quality control, inspection and monitoring notification which lays down the standards for exports including the sanitary, hygiene and other food safety requirements. The notification also specifies the type of quality control and inspection as per export of milk products (Quality control, inspection and monitoring) rules 2000, applicable to milk products prior to export. Responsibility of ensuring health requirements of importing country rests with the processing plants. Thus plants develop their own system of in process control, maintain it and keep the data base of records for future reference. The export inspection agencies have authority to approve compliance of processing plants with notification requirements.

18.3 Requirements of Processing Plants

In order to get certified as a plant suitable for export production, it is necessary that dairy plants fulfils following requirements.

1. Statutory restrictions imposed by state and central government for protecting environment.

2. Only milk of healthy animals be procured from milk producers by dairy plants. If the animal is treated by antibiotics or any other veterinary drugs, then milk of animal should not be collected unless it is inspected for its residues by concerned dairy plants.

3. The milk products manufactured by such plants should contain only the permissible food additives, processing inputs and ingredients that are fit for human consumption.

4. Milk products should be prepared in approved plants under hygienic conditions.

5. Product packing should be carried out under strict observation wherein

a) Wrapping and packaging should be done under satisfactory hygienic conditions in specified packaging rooms only.

b) Bottling should be done in automatic machines only

c) Normal wrapping and packaging should not be reused

d) Specific reusable containers when used should be thoroughly cleaned and disinfected before use.

6. The product should be stored at designated storage temperatures. The product should be brought to required storage temperature as quickly as possible and storage temperature be recorded for future.

7. The outward package should indicate storage temperature and period for which product is safe for human consumption.

8. All the details of processing and storage temperature are preserved in the form of imported records for the period of 2 years.

9. Milk should be free from all types of hazardous residues.

18.4 Approval System

Export Inspection Council of India gives the approval. A dairy plant submits the application to export inspection council for registration as export unit. A panel of inter department persons consisting of representative from APEDA, NDDB, ministry of food processing industry & export inspection agency assess the unit and decide about providing the approval as export production unit. On assessment and if unit is found appropriate, approval is granted to the dairy plant. Granting of approval is followed by three phase of surveillance.

18.5 Surveillance Phase

18.5.1 This phase consists of visits of the plant and audit of the same

a) Monitoring visits: Monitoring visits are performed by officials of expert inspection agency to verify microbiological and hygienic standards, check the records. Whatever deficiencies are observed are reported and notified to management of dairy plant to take corrective action.

b) Supervisory visit: These visits are carried out once in every three months. The aim of such visits is to maintain compliance with the standards.

c) Corporate audit: This involves verification of records maintained by export inspection agency to check compliance with executive instructions. Audit team visits some of the approved units to check the effectiveness of the system and build accountability.

18.5.2 Dispute settlement mechanism

If any complaint is there from any importing company, then it is settled through established dispute settlement mechanisms. On receiving complaint, the concerned dairy plant from which the milk products have been exported is put ‘on alert’. The increased monitoring inspection is carried out on that plant before exports. On increased monitoring, if the concerned dairy plant is found to be satisfactory then the condition of ‘On alert’ is removed and if the plant is not found appropriate, then the approval of export will be withdrawn.