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___
Asia-Pacific Trade Facilitation Forum 2011
4
th
-5
th
October, 2011
Seoul, Korea
______________
Indian initiatives in Traceability
approaching towards
Single window Certification
Sudhanshu
Deputy General Manager, APEDA,
Ministry of Commerce & Industry
&
Vice President, GS1 India
Ministry of Commerce & Industry
___
Asia-Pacific Trade Facilitation Forum 2011
4
th
-5
th
October, 2011
Seoul, Korea
______________
Indian initiatives in Traceability
approaching towards
Single window Certification
Sudhanshu
Deputy General Manager, APEDA,
Ministry of Commerce & Industry
&
Vice President, GS1 India
Ministry of Commerce & Industry
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What is
What is
Traceability
Traceability
in General ?
in General ?
Ability to trace the history, use or location
of an entity by means of recorded
information
Ability to follow the movement of food
through specified stages of production,
processing and distribution
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Traceability as per Codex
Ability follow the movement of food
through specified stages of production,
processing and distribution.
Codex Alimentarius Commission
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Why
Why
Traceability
Traceability
is required ?
is required ?
Food safety and traceability is becoming
concern of importing countries
Due to increasing consumer awareness
about food safety aspects, such tools are
required
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Traceability Drivers- Stringent
Regulatory/buyer requirements
Demanding regulations:
US FDAs speed related traceability requirement 4 hrs. one up /
one back reqmts.
EU Food Law (178/2002 General Principles and reqmts of
European Food Law)
U.S. Bioterrorism Act (2002)
ISO 22005: 2007
HACCP (ISO 22000:205)
BRC (British Retail Consortium), IFS (Intl Food Std
German/French distribution cos)
SQF (US Food Marketing Institute)
Can-Trace (Canadian Food Law)
Food Sanitation Law (Japan)
HR 2749 The Food Safety Enhancement Act of 2009
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Traceability Drivers- Consumer
concerns and needs
Was this grown
organically?
Do they test
their products
on animals?
Is this healthy?
Does it contain
peanuts or other
allergens?
Is the
packaging
recyclable?
Are the employees
treated well and
paid fairly?
Does this
company act
responsibly
toward
shareholders?
Is the farming and harvesting done
in a sustainable fashion?
Could I get this
less expensively?
They ask themselves
many questions
before making a purchase.
Today's consumers are informed
and aware.
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What approach is required ?
What approach is required ?
Firstly, evolve national procedures & policies for Quality
& Product Standardization, co-opting all stakeholders in
the supply chain from Public and Private sector, for each
product
Secondly, put in place the Standards & Agencies
Thirdly, build centralized, national level, internet based,
traceability system, with low cost of ownership for Indias
large number of farmers & entrepreneurs
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Recent outbreak of E.
Recent outbreak of E.
Coli
Coli
in Germany
in Germany
The issue began in the second week of May .
More than 10,000 samples were taken and analyzed and
E.Coli could not be detected and confirmed
On 5
th
July , the case was closed after identification of
the food and the source of infection
The learning from the investigation was that the only way
out is to intensify the investigation on tracing back
and tracing forward
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Final outcome
Final outcome
-
-
Traceability
Traceability
Provides a tool for the establishment of product
authenticity, reliability, identification of the problem
areas for the purposes of tracking and product
recall
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Traceability Drivers
Lack of traceability exposes food companies to huge risks
Lack of traceability exposes food companies to huge risks
E.Coli contaminated spinach recall...
Then it spread to lettuce
...became a criminal investigation
China Milk Recall
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Traceability Drivers
Recall of 9.5 million
toys in US and 11
million in others
countries.
Europe Belgium- Coca Cola
Recall
5 months to recover the sales
249 cases of illnesses in
Belgium
Recall of 15 million cans and
bottles
Crisis cost $200 million in
expenses and lost profit
U.S. Toys Recall
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67% of Food Companies with
$5 B or More in Sales had
Recalls that Cost $20 M
or More in 2007
Source: AMR Research
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Source: AMR Research
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Connection between
Traceability and recalls
Traceability system provides:
Visibility to location of food products/consignments in Supply Chain
Unique identification of each player in Supply Chain (raw matls supplier to
finished products mfgr to intermediate distribution chain partners to retailer)
Unique identification of products/consignments and qty held in Supply Chain
and by whom
Accurate, timely and fast recalls can only be effected if traceability systems
which provide accurate product identification, partner identification and location
of products/ consignments at all times are in place
Recall is a use case of traceability
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Command and Control national Recall situation
Map
60 minutes after Recall Released show GLN locations who have
opened Recall Notification and have submitted questions (Orange).
NOTE ISSUE WITH GA
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Command and Control global recall situation Map
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Traceability -
Indian initiatives
Traceability -
Indian initiatives
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APEDA
APEDA

s
s
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A
A
traceability
traceability
System for Fresh
System for Fresh
Grapes Exported from India to EU
Grapes Exported from India to EU
a pilot for promoting exports in
a pilot for promoting exports in
Indian Agriculture Sector
Indian Agriculture Sector
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Grapes Scenario in India
Grapes Scenario in India
Grapes is among the Top Ten Fruits of India, in terms of
production
1.6 million metric tons produced, majority in
Maharashtra, Andhra Pradesh & Karnataka
40000 plus farmers
100 plus exporters
India is the 12
th
largest producer in the world, but among
the highest in terms of productivity per hectare
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Maharashtra
Andhra Pradesh
Karnataka
Grape Growing States
Grape Growing States
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Registration, record keeping & monitoring of farms Registration, record keeping & monitoring of farms
Product standardization & inspection strengthened Product standardization & inspection strengthened
Implementation of Good Agricultural Practices Implementation of Good Agricultural Practices
Exports only from recognized pack Exports only from recognized pack- -houses houses
Pesticide Residue analysis by ISO Pesticide Residue analysis by ISO- -17025 17025
NABL compliance labs. NABL compliance labs.
Setting up of NRL for periodic checks and alerts Setting up of NRL for periodic checks and alerts
Regular training programs for all concerned Regular training programs for all concerned
What was done before
What was done before
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GrapeNet
?
?
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STAGE I: a Government of India regulation - Regulation of
Export of Fresh Grapes from India through monitoring of pesticide
residues.
Standards to meet international market demands
Agencies to test compliance with these standards
And no export of fresh grapes can happen to European Union
without adhering to this system.
STAGE II: IT enable the regulation, compliance and monitoring
integrating all the stakeholders in the supply chain of Grapes
export from India, with a centralized database.
APEDA
APEDA

s
s
Implementation
Implementation
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No



Yes



Fail




Pass




Forwarded to Lab





Print label By Exporter





Deposited amount




With Cheque/DD





State Govt. Agency
Laboratory
Register Farm
Sample Collection
Recommendation
(after 45 days)
You cannot export
from this farm
Sample Receive at Lab
Payment for Testing
Exporter
Lot Creation
Create/Print Pallet Label
Add Packing
Details
Forward
To lab
Lot Creation
Generate Agmark
Inspection id
Agmark Inspection
report entry
Payment
For CAG
(optional )
Payment
for CAG
Issue CAG
Certificate
Payment for PSC
Issue PSC
Certificate
Create Consignment
Agmark
Lot Forward by
Exporter
CAG ID
Payment by Lab
PSC Payment for PSC
Issue PSC
Certificate
Apply for PSC
Residue Analysis
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Functions
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I
I
n
n
t
t
r
r
o
o
d
d
u
u
c
c
t
t
i
i
o
o
An internet based An internet based traceability traceability software system software system
Monitors fresh grapes exported to the European Union Monitors fresh grapes exported to the European Union upto upto the farm the farm
level. level.
An end An end- -to to- -end system for end system for
monitoring pesticide residue, monitoring pesticide residue,
achieve product standardization and achieve product standardization and
facilitate tracing back from retail shelves to the farm of the I facilitate tracing back from retail shelves to the farm of the Indian ndian
grower, grower,
through the various stages of sampling, testing, certification a through the various stages of sampling, testing, certification and nd
packing packing. .
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features
features
Direct stakeholders of APEDA Direct stakeholders of APEDA
are Exporters, Pack houses / are Exporters, Pack houses /
processing plants, processing plants,
Laboratories & State Laboratories & State
Government Departments Government Departments
Farmers are indirect stake Farmers are indirect stake
holders, through State holders, through State
Agriculture / Horticulture Agriculture / Horticulture
departments departments
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at www.
at www.
apeda
apeda
.
.
gov
gov
.in
.in
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Phytosanitary
Certificate (PSC)
number
S(MAH)2/GR/0000
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S(MAH)2/GR/0000
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Agmark Certificate
Number
GEO/GR/09/0000
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GEO/GR/09/0000
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Agmark
Inspection
Report ID
200922066513
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200922066513
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Residure
Analysis Report
2/01335/02/0900
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2/01335/02/0900
MH06091148102
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Residue Analysis
Report
MH06091148102
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MH06091148102
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Authorised
Packer
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Exporter
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Traceability
Traceability
at display
at display
Traceability through labels
pasted on Pallets/Cartons
Pasted in barcode as well as
Human readable format
Leads to the Plots from where
Grapes have been sourced
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Major Gains
Major Gains
Self confidence among farmers
Culture for food quality and safety
Farmers earned 40% more value
Benefits went to 40,000 farmers and 115 exporters
FOB realization rose from 8 Euro to 11.5 Euro per
carton of 3 kg.
Value addition through improved packaging
EU labs accepted that Indian labs are better
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Accolades - GrapeNet
National Award for E- Governance (Year 2008)
E Asia Award (Year 2009)
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Further Developments
Success in grapes sector encouraged to
replicate and set up traceability system for :
o Pomegranates (AnarNet)
o Organic products (TraceNet)
o Peanuts (Peanut.Net)
o All fruits & Vegetables
(HortiNet Under development)
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Tracenet Coverage
Farmers : 4.7 lakhs
Individual operators : 1101
Certification bodies : 20
Scope certificates : 4064
Transaction certificates : 11469
Stakeholders : Farmers, Exporters, Certification bodies,
Laboratories
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First Traceability system for export of organic products from India implemented at National
Level
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Tracenet Certificates
Tracenet Certificates
Scope Certificates Scope Certificates Scope Certificates Tracenet Certificates
Tracenet Certificates
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Tracenet Certificates
Tracenet Certificates
Transaction Certificates Transaction Certificates Transaction Certificates
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Certificates of Export Certificates of Export Certificates of Export
Peanut.Net Certificates
Peanut.Net Certificates
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Stuffing Certificate Stuffing Certificate Stuffing Certificate
Peanut.Net Certificates
Peanut.Net Certificates
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Certificate of Analysis Certificate of Analysis Certificate of Analysis
Peanut.Net Certificates
Peanut.Net Certificates
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Overall achievement
Overall achievement
All mandatory certificates generated before customs
which leads to single window certificate ( to the
possible extent)
Setting up of National MIS for the product
Organising the supply chain
Assurance to buyers
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Future vision
Integeration with customs to make a single
window certification system with traceability
Cover other products in the ambit of
traceability
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