As members are aware, the Biscuit industry particularly manufacturers in the Small & Medium Sector, have been experiencing acute hardships and erosion in profitability due to various reasons including:
- Rising prices of almost all raw materials/inputes, i.e. wheat flour, vegetable oil, sug.fr, milk, etc.
- Steep increase in the cost of production of biscuit on account of hike in cost of packaging, fuel,transportation, wages etc.
- Adverse impact on production and marketing of biscuits due to levy of value added tax (vat) at the highest rate of 12.50% (in place of sales tax @ 8%) as compared to vat 4% on similar food products which ha ve resul ted in many such products substituting biscuit amongst consumers especially in the lo income segment.
- Stagnation in prices of biscuit on account of stiff competition and thin m4 rgin of profit in biscuit which is high volume based- low margin prdocuct.
- Exports of biscuits, which have better potential, ha ve also been languishing a t a mea ger 10% to 12% for the last five years.
- Per capita cumsumption of biscuit in india is only 1.8 kg, as compared to 2.5 kg to 5.5 kg in south east asian countries, 6.5% in china and european col7vtries and 10 kg in usa.
- Inadequate adoption of modern technology, equipment, packaging and also achieve higher quality of biscuits of various categories/tastes in the context of increasing consumer wareness/aspirations are also an important area ad versel va ffecting production of biscuit.
- Consequently the benefit arising out of relief in central excise duty given in the union budget for 2007-08 has been neutralised and product.on of biscuits have registered increased marginall v (12% in the three quar ters of 2007- 084 gainst estima ted gro will of 18% to 20%.
IBMA as the apex forum of biscuit industry has been highlighting the hardships faced by our members mainly due to imposition of value added tax(va t) with various state government and also with the chairman’, of the empowered committee on vat. our association also inter act with the ministry of health & family welfare, govt of india, in respect of problems faced by biscuit manufacturers on account recent amendments in pfa rules, 1955, such as label printing of details of nutritional/energy value, ingredients etc and also with the ministry of consumer affairs, govt of india, regarding amendments on compulsory printing of details of consumer care cell(address, phone no/email , name of officials etc) under the standards of weights & measures( packaged commodities) rules, 1977.
However, ibma is of the considered view that there is imperative need to embark upon a national campaign to popularize biscuit, with the objective to achieve higher growth in production and sales of biscuit of high quality for all segments of consumers throughout the country and to boost exports of biscuits.
A brief blue print of the national campaign to popularize biscuit is enclosed for your kind perusal and comments/suggestions and mode of implementation of the campaign which is proposed to be bunched in the first week of march, 2008, coinciding with aahara internat [on food exhibition 2008 organized by the ministry of food processing indus-tries. govt of india, at pragati maidan, new delhi, during 10-14 march 2008.
Needless to say that the Campaign entirely depends on the active cooperation and support of all members and your feedback by way of views and suggestions, which may please be sent to the office IBMA latest by 31” January 2008.
NATIONAL CAMPAIGN TO POPULARIZE BISCUITIBMA, as the apex organization of the Biscuit Industry in the country has decided to embark on NATIONAL CAMPAIGN TO POPULARIZE BISCUIT.
100% Increase in production of biscuits in the next four years (2008-09 to 2012-13) @ annual growth of 25%
100% Increase in domestic sales and exports of biscuits in four years (2008-09 to 2012-13)
Ensure high quality biscuits of various varietiesand tastes, at ompetiiive prices, to all segments of consumers throughou the country.
In order to achieve the objective of doubling the production, sales and xports of biscuits @ 25% perannum during the next four years it is proposed to undertake.
NATIONAL CAMPAIGN TO POPULARIZE BISCUITBY CELEBRATING NATIONAL BISCUIT WEEK (5th to 10th March 2008) ANDNATIONAL BISCUIT DAY (11t MARCH 2008)
(coinciding with aahar international exhibition — 10 to 14 march 2oo8 at pragati maidan, new delhi (organized by the ministry of food processing industries, govt of india)
11th march 2008 will be celebrated as national biscuit bay and the preceding week (5th to 10t11 march 2008) will be observed as national biscuit week all over the country, with a view to popularizing biscuit as a most nutritious, hygienic packaged food product available at very competitive prices in different varieties and tastes for the entire family and all segments of consumers.
The national biscuit week and bay, which will become an annual event, will be celebrated throughout the country by way of coverage in national and regional print, electronic media, including interviews, panel discussions, articles, write ups etc and also organizing work3hops, interactive sessions with consumers, governmental agencies, ngos etc.
NATIONAL BISCUIT DAY WILL BE CELEBRATED ON 11TH MARCH 2008
BY ORGANIZING NATIONAL CQNFERENCE ON BISCUIT AT PRAGATI MAIDAN, NEW DELHI
PARTICIAPATION IN AAHARA BY IBMA
MEMBERS (THROUGH MOFPI/APEDA)
NATIONAL BISCUIT WEEK DURING 5TH TO 10TH MARCH
2008 will be celebrated by way of:
Media campaign through banners, hoardings etc depicting GOODNESS OF BISCUITS and other slogans shall be displayed throughout major cities, towns and rural areas to create consumer awareness of the Goodness of Biscuit.
Publication of various recipes of snack and other food items made from Biscuits.
Quiz competitions for consumers will be organized. Other packages like prize coupons, discounts etc will be offered to consumers
Brainstorming sessions, seminars, etc will be organized in different parts of the country with the objective of improving production, marketing, distribution, storage as well as better quality of inputs, ingredients of Biscuits on the basis of consumer feed back survey-s.
Other steps like fortification and production of health biscuits and other innovations in technology, packaging, etc will be introduced across the country. Special focus will be on manufacturing and marketing Biscuits of high quality standards at affordable prices.
Organize comprehensive Survey of Indian Biscuit Gujarat Industry, up-dation of IBMA Data Bank/Status Paper of Biscuit Industry, identification of latest production technology, equipment/machinery, packaging, better quality of major raw materials, ingredients, packaging etc, i.e. wheat flour, sugar, vegetable oil, milk, favour/colour, additives etc. Interaction with manufactures/ suppliers of raw materials/ ingredient / packaging etc.
Action on these areas would be initiated, with IBMA as the Nodal Point b- organizing Seminars/Workshops. Training Programmes in the different Regions/States on topics such as:
Supply Chain Management including inventory control, purchases/dispatches/movement of raw materials/end products. Human Resources Development, Productivity, and other topics relevant to biscuit manufacturers on food laws (GMP/GHP/HACCP/ISO etc).
Participation in national and international Trade Fairs/Exhibitions, interactive sessions with visiting Trade Delegations from other countries including one-to-one Business meetings for IBMA Members, Mounting of IBMA Delegations to countries in Europe, South Asia, China, USA etc as a part of IBMA’s objective to achieve enhancement of Exports of Biscuits and adoption of latest technology.
The IBMA National Campaign to Popularize Biscuit will be implemented in coordination and with support from Members of IBMA including local Associations of Biscuit manufacturers. Manufacturers/suppliers of equipment, ingredients etc, national organizations of Industry. States and Central Governmental agencies concerned would be approached for financial as well as organizational support.
With a view to operationalizing the National Campaign to Popularize Biscuit, an Action Plan with the following components need to be discussed and decided:
1. Constitution of a Central Organizing Committee and regional’s/State sub committees (including Associations) to organize the National Campaign, Celebration of National Biscuit Week in different part of the country, National Biscuit Day on 11th March 2008 at New Delhi(coinciding with AAHAR 2008) including National Biscuit Conference at Pragati Maidan, New Delhi.
2 Creation of *Corpus Fund to finance the National Campaign and Budget estimated! Income & Expenditure Account by way of:
a) Contributions from Members
b) Advertisement income from the Commemorative Souvenir to be published on the occasion of National Biscuit Day
c) Financial Assistance from the Ministry of Food Processing Industries, Ministry of Health & Family Welfare, Ministry of Consumer Affairs, Ministry of Industry & Commerce, Ministry of Govt of India, other Agencies! i.e. APEDA, WHO etc.
The quantum of the corpus fund may be discussed and decided by the IBMA Managing Committee.