Govt bans food imports from Japan for 3 months

NEW DELHI: The Indian government on Tuesday suspended food imports from Japan over fears these may be contaminated by radiation from tsunami-hit reactors. Speciality restaurants that serve sushi and tofu assured these won't go off the menus immediately but predicted a price hike. 

So far, three samples of frozen rice and soft drink that arrived in India last Saturday have been sent for testing. 

The ban decision for three months or until such time as credible information is available that the radiation hazard has subsided to acceptable limits came at a meeting on Monday. The Food Safety and Standards Authority of India (FSSAI) will undertake a weekly review, the Union health ministry said in an advisory. 

Though import of food products from Japan is estimated at a little over $1 million during April-September 2010, the demand for fish and packed food products has picked up in recent years. Since October, the list of products that has entered the country from Japan included soybean curd, dried noodles, boiled mushrooms, radish paste, cooking sauces, roasted seaweed, flavouring extracts, tea bags, wheat flour, food additives and tofu. Now, these products would be off the shopping list. 

After discussions, it was concluded that since radiation was spreading horizontally to other parts of Japan, it could result in further contamination of food exports from Japan. The ban therefore should be extended, officials added. 

The ban puts India in a group of countries that include the US, China, Singapore, and Hong Kong, though not all food imports have been banned by these countries. 

Restaurant owners in Mumbai and New Delhi assured the ban will not take sushi off the table immediately. Restaurants don't always depend on Japanese seafood and salmon, for instance, comes from Scotland in many cases and for other ingredients (sauces, seaweed) there are substitutes available from Thailand, Vietnam or China. 

"I think the government should be pragmatic and rather than impose a blanket ban, it should consider checking every consignment for contamination. If it is found free of radiation the import should be allowed," said Farokh Khambata, owner of south Mumbai's Joss restaurant, who assured he had enough stock to last three months. 

One of India's largest importers of Japanese food is based in Pune. Suku Shah's firm Olive Tree Trading supplies to leading hotels and restaurants across the country. "I am unaware of the ban but I am sure the government has weighed the issue of safety thoroughly before enacting it," said Shah. "I guess a ban is a natural reaction to the given situation, and if a role reversal were to occur, Japan might do so too." 

"We were never importing vegetarian supplies anyway. As for salmon and other seafood, we can get them from Sweden for instance. For the rest, there are substitutes," said Saurabh Khanijo, managing director, New Delhi's Kylin. "We are not taking any dish off the menu," he added. 

However, he does admit that suppliers are raising prices. 

Sushil Kumar Chadha of Tamura in the capital is more worried. "We have stocks to last three months but if the ban continues beyond that, were in trouble," he said. The rising price of raw material is also his main concern. "Rates have gone up by 25-30% and might go higher. At present were absorbing it but I don't think we can for long. Our rates are already quite competitive," he said.

Source: http://timesofindia.indiatimes.com/india/Govt-bans-food-imports-from-Japan-for-3-months/articleshow/7879998.cms

Govt may allow FDI in multi-brand retailing

NEW DELHI: The government is looking at allowing foreign direct investment (FDI) in multi-brand retailing as part of a slew of measures to make India more attractive to overseas investors. 

Senior government officials told TOI that the thinking was that a gradual opening up would be a better strategy with global chains first allowed to open stores in metros, while wholesale cash-and-carry being limited to smaller towns and cities, at least for the moment. 

The move being piloted by the Department of Industrial Policy and Promotion is at the stage of discussion with political clearance yet to be accorded to the proposal. Once there is consensus on the issue within UPA, which is unlikely until elections in five states are over, states will need to be taken on board, a senior government official said. 

The Economic Survey, which was tabled in Parliament last month, had also suggested gradual opening up of the retail sector with the initial go-ahead limited to a few cities. 

At present, the government allows 51% FDI in wholesale cash-and-carry where global players such as Wal-Mart and Carrefour are only allowed to sell to bulk customers such as hotels, canteens and even local retailers. 

Officials said the move to open multi-brand retailing is part of the plan to "send the right signals to foreign investors", some of whom have chosen to stay on the sidelines since a string of scandals hit the headlines last year. 

By allowing greater FDI in some key sectors, the government will also be able to deal with the widening current account deficit. In fact, stepping up FDI was a key issue on the table of financial sector regulators — RBI, Sebi, Insurance Regulatory & Development Authority and the Pension Fund Regulatory & Development Authority — and finance ministry officials last week. The issue was discussed at the first meeting of the sub-committee of the Financial Stability and Development Council. 

Sources said by piloting the insurance and pension bills, the government would signal that it was still serious about reforms. 

There is also a move to amend the Factories Act and raise the FDI ceiling for defence production to 74% from 26%. 

While the Department of Industrial Policy and Promotion had floated consultation papers for allowing FDI in multi-brand retail and raising the cap for defence production, the government is yet to thrash out a consensus. 

The government's appetite for reforms is being driven by dwindling FDI flows. According to latest data, inflows declined 23% to $16 billion during April-December 2010, compared to nearly $21 billion in the same year ago period. 

The government's assessment is that some of the current account deficit would be trimmed once funds to set up the Posco steel plant in Orissa, an investment of $13 billion, starts flowing in. BP's proposal to acquire stake in Reliance's oil and gas blocks and the joint venture with the Mukesh Ambani-controlled company are also going to help FDI flows with around $14 billion.

Source: http://timesofindia.indiatimes.com/business/india-business/Govt-may-allow-FDI-in-multi-brand-retailing/articleshow/7667370.cms

2G scam: DMK remains silent over Raja's arrest

The DMK has gone into silent mode. The arrest of disgraced telecom minister A. Raja has been a bitter pill for the party to swallow. That it comes barely a day after DMK patriarch M. Karunanidhi's return from the Capital, ensuring the alliance with the Congress, has surprised the party rank and file. A gloom has descended on the DMK. None from the party has reacted to the development.

Even Karunanidhi, who had been parotting that action would be taken against Raja if he was found guilty, has chosen to maintain a studied silence.

Though some senior DMK leaders maintain that it is better to face the music now rather during the polls in May, the party had hoped that the arrest would be postponed till the election was over.

What worries the DMK most is how to face the opposition onslaught during the poll campaign, in which the 2G spectrum scam would be a main plank.

The arrest has provided fresh ammunition to the opposition, and especially to AIADMK czarina Jayalalithaa. In private, party functionaries confide that the taint of corruption would certainly affect the party's prospects.

Karunanidhi's visit to the Capital was reportedly to persuade the Congress high command to delay the action against Raja.

But, his hopes were dashed as sources said home minister P. Chidambaram had briefed him about the impending arrest at Tamil Nadu Bhavan on Monday night.

What's more, while his photoop with Prime Minister Manmohan Singh was widely publicised, the one with Congress president Sonia Gandhi was conspicuously not. The octogenarian was kept waiting for more than six hours for an audience with Sonia.

The DMK chief and Congress troubleshooters discussed the legal and political fallout of Raja's arrest on the upcoming polls.

Both Congress and DMK leaders maintained that the arrest would not impact their proposed electoral tie-up.

AICC general secretary Janardan Dwivedi said the development would not have any bearing on the relations between the Congress and the DMK.

"It is absolutely no reflection on the alliance. It is continuation of a legal process," AICC spokesperson Abhishek Singhvi said, adding that no one should mix up legal process and politics.

Already the spectrum scam has created fissures within Karunanidhi's family as everyone is against his daughter, Kanimozhi's, faction. But for her father, she has no one to bank on. Jayalalithaa could not have hoped for much more to take on the DMK as well as the Congress.

Her gameplan is to reinforce the notion that the DMK is corrupt to the core and with the Karunanidhi family holding sway over the party, it serves to build up public opinion. After all, the first time Karunanidhi was dismissed from power was on corruption charges. The patriarch appears rattled by this and also by her charisma to pull huge crowds. If anything, his recent utterances point to his apprehensions of losing power - so much so that he had asked his partymen to remain united or face being thrown out of power.

Source:-http://indiatoday.intoday.in/site/Story/128516/top-stories/2g-scam-dmk-remains-silent-over-arrest-of-raja.html