GUTKA CONSUMERS NOW TURN TO ‘DESI PAAN’ TO GET THEIR DAILY FIX

DEMAND AND SUPPLY:Paan shop owners believethat the prices of betel leaves, nuts and other ingredients are likely to go up in the lightof gutka ban.— FILE PHOTO: AFP

Even as those ubiquitous festoons of gutka sachets hanging at roadside shops have begun disappearing after they were banned by the State government last week, many consumers of smokeless tobacco in the city appear to have switched to what their grandparents used to chew.

The demand for “desi paan”, a simple combination of betel nut smeared with white lime, areca and, crucially, a smidgeon of tobacco, has spiked, many paan shop owners say.

Doctors caution that consumption of tobacco in any form is harmful. Smokeless tobacco consumption is more injurious to health than smoking as chewing of tobacco directly affects the oral cavity and enters into the system.

Hansraj Singh, a paan shop owner on Infantry Road, said that he would not risk stocking gutka now. He added that he would stop selling all smokeless tobacco products in the wake of the ban. However, he said that many addicts had migrated to “desi paan” and other traditional paan because gutka is either not available or is being sold in black.

While many shop owners claim that they have exhausted their stock, some shops were indeed still found selling gutka, but with only a few brands with no fresh stocks coming in.

More time

M. Madan Gopal, Principal Secretary (Health and Family Welfare), said that it would take a couple of days for the department to enforce the gutka ban effectively.

“We have issued guidelines on enforcement and today, our officials have started raids. They have seized stocks from different parts of the State. It is just a beginning and we will soon crack down on the sale of gutka in all forms,” he said.

In some areas, the police have warned paan shop owners not to stock or sell gutka, shop owners told The Hindu .

Not that this has cured addicts of their cravings. “It is difficult now to procure gutka since most shops have run out of the stock. I need a particular brand, which is not available in the market, so I have shifted to another,” said Ram Gogio, who works on M.G. Road.

“Many people whom I know have shifted to ‘desi paan’,” he added.

This was confirmed by Kamal Singh who said that he had stopped buying gutka as it has become very expensive after the ban. “I have shifted to ‘desi paan’, which is cheaper.”

The ban has come as a relief for gutka consumers like Shabeer Ahmed, a pet shop owner in Shivajinagar, who has decided to quit altogether. “The government’s decision to ban gutka encouraged me to stop consuming it. I am sure many may have quit like me,” he said.

Price hike likely?

Meanwhile, paan shop owners believe that the prices of betel leaves, nuts and other ingredients are likely to go up in the light of gutka ban, following which many have started consuming “desi paan” and other regular paan. “Many paan shop owners are likely to increase the price of paan to offset their loss after the gutka ban. We are seeing an increase in the number of consumers of ‘desi paan’,” said Subash, a paan shop owner in Shivajinagar

HRAWI NOT HAPPY WITH CHANGES IN PROPERTY TAX STRUCTURE FOR STARRED HOTELS

The Hotel and Restaurant Association (Western India) (HRAWI) has termed the recent changes in the property tax system and the basis on which the capital value of starred hotels is calculated, a blow to the organised sector of the hotel industry. This was stated by the association in a letter it sent to Sitaram Kunte, municipal commissioner, Municipal Corporation of Greater Mumbai (MCGM); recently.

Starred hotels have to pay much higher taxes – amounting to 2.2 times for one- to four-star hotels and 2.5 times for five-star properties. HRAWI said, “This obviously means that all budget hotels, namely four-star hotels and below, would prefer to remain unstarred. This would be a big setback for the tourism industry and would retard the growth of tourist arrivals in Mumbai in the long-run.”

The association stated that starred hotels in the budget category earned less than 50 per cent of revenue per room in comparison to five-star hotels or properties with more stars, and therefore the burden would be unbearable. It added, “The taxation structure is so high that five-star hotels pay five times more tax than the amount paid by residential properties.”

The letter, signed by D S Advani, president, HRAWI, and vice-president, Federation of Hotel and Restaurant Associations of India (FHRAI), further stated, “Any hotel built after 2013 has to pay 50 per cent more tax than a property built in or before 2010. This makes newly-constructed hotels unviable to operate due to the phenomenal tax fees that have to be paid.” 

Flavoured milk consumption will be double than white milk, says Tetra Pak

New research from Tetra Pak, the leading food processing and packaging company, forecasts that flavoured milk consumption will grow at more than double the rate of white milk globally between 2012 and 2015.

Consumers are increasingly turning to tasty, nutritious and conveniently packaged flavoured milk as an alternative to other beverages, creating opportunities for dairies to improve profitability, states the report.

Flavoured milk, the second most widely consumed Liquid Dairy Product (LDP) after white milk, is forecast to increase by a Compounded Annual Growth Rate (CAGR) of 4.1% between 2012 and 2015, rising from 17.0 billion litre to 19.2 billion litre.

Developing countries will drive demand amidst a growing number of new flavours and products focussed on health. White milk is forecast to grow by 1.7% (CAGR) during the same period - from 208.5 billion litre in 2012 to 219.5 billion litre in 2015. Total LDP demand is set to grow by 2.4% from 280.3 billion litre to 301.3 billion litre during this period, according to the research.

“With white milk increasingly commoditised, flavoured milk offers dairies the opportunity to provide value not only to consumers but to their bottom line,” said Dennis Jönsson, president and CEO, Tetra Pak Group. “With the right flavours, portion sizing and formulation, flavoured milk can meet a huge range of health, nutritional and lifestyle needs.”

Flavoured milk consumption is set to rise 5.1% (CAGR) between 2012 and 2015 in the South Asian countries of India, Bangladesh and Sri Lanka. Kandarp Singh, MD, Tetra Pak South Asia Markets, said, “The increase in flavoured milk consumption will be spurred by economic growth, urbanisation and rising prosperity. On-the-go lifestyles in India’s thriving cities have triggered increased consumption of ready-to-drink ambient milk, including flavoured milk. Children and teenagers consume the majority of packed flavoured milk in India, at home or in school, with parents opting to buy flavoured milk because they value its nutritional benefits and its taste appeal to young consumers. While consumption of white milk is prevalent in almost 100% of the households across India, consumption of flavoured milk still has plenty of room to grow.”

Tetra Pak has identified four drivers fuelling the rise in flavoured milk consumption:  First, the desire for nutritious and healthy food, which is prompting consumers, particularly in developing countries, to turn to nutrient-rich milk products. Second, urbanisation, rising prosperity and the pace of modern life, which has increased “on-the-go” consumption of ready-to-drink (RTD) flavoured milk in convenient portion packs. Third, consumers’ eagerness to try new food and drinks, with flavoured milk well-poised to meet that need. And fourth, consumers seeking “indulgent” eating and drinking experiences as a way of escaping the daily grind during times of economic uncertainty. “People don’t mind spending a bit more for small indulgences when times are tough and they are making bigger sacrifices,” said Libby Costin, global portfolio marketing director.

Though flavoured milk consumption is still low compared to other beverages, such as carbonated soft drinks, positive consumer perceptions about the health benefits of milk are creating opportunities to significantly increase flavoured milk consumption, according to Tetra Pak.

The growth rate for flavoured milk consumption is expected to be more than triple that of carbonated soft drinks in 2012-2015. During that period carbonated soft drinks are forecast to grow by 1.3% (CAGR) compared with an estimated of 4.1% (CAGR) for flavoured milk. Traditionally consumed by kids who enjoy its taste, Tetra Pak sees scope for growth beyond kids to teens and adults, and beyond taste to reach the “sweet spot” where taste and health meet. “For consumers unwilling to compromise on taste, health or convenience, flavoured milk is proving an increasingly popular alternative to other beverages,” said Jönsson.

While demand for flavoured milk is forecast to rise globally, demand in developing countries, particularly across Asia and Latin America, is set to outpace that of developed countries in North America and Europe, highlighting emerging economies as the growth engines of the dairy industry.

In fact, seven of the world’s top 10 flavoured milk markets are developing countries, according to the research. China is the world’s largest, followed by the United States and India. Increased demand for flavoured milk from 2009 to 2012 was mainly driven by four emerging countries: Brazil, China, India and Indonesia.

The trend is set to continue from 2012 to 2015. While developing countries accounted for 66% of flavoured milk consumption in 2012, this is forecast to rise to 69% by 2015. China, South Asia and Southeast Asia drink more than half the world’s flavoured milk. In fact, just six Asian countries – China, India, Indonesia, Malaysia, the Philippines and Thailand – consume 47% of the world’s flavoured milk, according to the research.

Cartons have become the established packaging format for flavoured milk. They accounted for 62% of RTD flavoured milk packaging in 2012, up from 57% in 2009, and are expected to rise to above 64% in 2015, with portion packs expected to reach 81% of RTD flavoured milk consumption.