India’s animal husbandry and dairying sectors have evolved by leaps and bounds. India’s livestock and dairying industry expanded at a Compound Annual Growth Rate (CAGR) of about 8% from 2014 to 2022 and will continue to feed about 200 million Indians. Since the beginning of civilization, agriculture and animal husbandry have continued to be fundamental aspects of human life. These efforts have contributed to the food basket and draught animal power and the preservation of ecological equilibrium.

According to the 20th Livestock Census, there are around 303.76 million bovines (cattle, buffalo, Mithun, and yak), 74.26 million sheep, 148.88 million goats, 9.06 million pigs, and approximately 851.81 million poultry in the nation. In India, livestock constitute an essential component of agriculture and contribute in many ways to the expansion and improvement of the industry. Livestock improves food and nutritional security by providing nutrient-rich food products, generates income and employment, acts as a buffer against crop failure, provides draught power and manure inputs to the crop subsector, and contributes to foreign exchange through exports. India has one of the world’s most extensive livestock populations. Proactive government measures and an increasing emphasis on ease of doing business have gradually cleared the ground for greater innovation and private-sector investment.

As per Livestock Census in 2019, the total Bovine population (Cattle, Buffalo, Mithun and Yak) is 303.76 million which shows an increase of 1.3% over the previous census. The total number of Cattle in the country is 193.46 million in 2019 showing an increase of 1.3 % over previous Census. India has a total of 191 million cows and bulls, and 109 million water buffaloes. These are together roughly 25 per cent of India’s human population.  World Organisation for Animal Health (OIE), Paris, France has declared India as “Negligible BSE Risk Country Status”.

India’s Total Export for Animal by- Products have reached US$ 396 Million during 2022-23. The major products being exported from India are Animal substance for therapeutic uses, Empty Veterinary Capsure, Dog or Cat Food put up for retail sale, Crushed Bones, Bone Grist, bone / Horn Button Blanks, plates, articles thereof, etc. The major markets for Animal by-Products are: Germany, Belgium, USA, Netherland, Spain, Italy, China, Canada, Korea RP and UK are the existing and potential markets for exports. 90% owners and 99% workers in the animal by-products industry are Dalits, Muslims or belong to the weakest sections of the Society.

The products, Pet food (H S Code 23091000) and Compound Animal Feed (HS Code 23099090) falls under the purview of CAPEXIL.  The domestic market for Pet Food is fast growing specially post covid period.  Dogs and Cats have been shown to reduce loneliness and combat stress.  That is why more people adopted pets during the pandemic.  Major factors driving the demand for pet food in India includes increasing pet ownership, rising per capita disposable income and increasing nuclear families.  Owning pets is no longer just a metropolitan phenomenon but a phenomenon across the country.

The Pet food market basically consists of two classifications i.e. Dog Food and Dog Treats.  Dog Food is a balanced diet for the Dog and can be given as meals as it’s a complete nutrition.  On the other hand Dog Treats are rewards for the Dog and do not consist of a balanced nutrition and have to be given sparingly to the Pet. India exports Dog Treats products to developed countries like USA and Europe and meet their requirements/regulations.  The majority Treats that are exported from India are the Natural Treats made from Buffalo/Bovine sources namely Tripe, Ear, Lungs and others like Gullets, Pizzels, etc. The Indian domestic market has a larger share of the Dog Food product which is majorly catered to by import and by a few Indian manufacturers.

The domestic Industry for Pet food products is highly unorganized and not having any dedicated full-fledged Industry Association for the Trade.  The domestic Pet food industry is estimated at up to INR 4,500 crore annually.   Exports of Dog or Cat Food from India has reached to US$ 61.76 million during 2022-23 and showing CAGR growth of 11.19% over the last 5 years.  The major markets for Indian Dog or Cat food are Germany, USA, UK, Netherland, Belgium, Switzerland, Canada and Ireland.  Exports of Concentrated for Compound Animal feed has reached to US$ 32.04 million during 2022-23 and showing a declining trend over the last 5 years.  Exports are mainly directed to Bangladesh, Philippines, Vietnam, Nepal and Mexico.

Value in US$ Million

Imports of Dog or Cat Food into India has reached to US$ 129.49 million during 2022-23 and showing CAGR growth of 28.73% over the last 5 years.  Imports are mainly coming from Thailand, South Africa, Italy, France, Indonesia, Canada and China.  Imports of Concentrated for Compound Animal feed into India has reached to US$ 39.60 million during 2022-23 and showing a declining trend over the last 5 years.  Imports are mainly coming from Sri Lanka, China, USA, Taiwan and UK.

Import Duty on Pet Food products in India is 20% and Concentrates for Compound Animal Feed is 15%.

Wish List from Domestic Industry 

The existing import duty on Pet Food products and Concentrates for Compound Animal Feed should not be reduced as it creates anomaly in the domestic industry.  There is a need to organize the domestic pet food market in India to produce quality products. Sourcing of raw material from the approved slaughterhouses to producers also to be regulated.  There is a shortage of pizzles because of the very high mortality of male buffalo calves. If male buffalo calves are reared up to the age of slaughter it will enhance meat production and raw material for pet food as well.  An abundance quantity of Cattle Population is available in India and hence there is no shortage of raw material.  India have potential to become world class manufacturer of Dog or Cat Food and Concentrates for Compounded Animal Feed products.  To upgrade the Indian Domestic manufacturing of Dog Food items and for import substitution, Government of India is requested to consider providing Technical support and financial assistance.  This will help the Indian manufacturers to export the Pet Food Products also in line with the Pet Treat items where India is exporting well.  Import substitution will help in saving Foreign Exchange for the country considerably.

Suggestions/Measures Proposed for achieving a minimum 30% growth in exports

Hardships experienced by members exporters of Products of Animal Origin – due to Opening for re-examination of factory stuffed Customs / self-sealed containers by the customs authority at the ports.

Due to Opening for re-examination of Factory stuffed Customs / self-sealed containers of Products of Animal Origin at the ports by Customs results in delay in shipment, additional cost, procedural bottlenecks, etc.  This can also lead the product to microbial infestation, loss of fumigation, damage to the packaging, spillage of the product, etc. due to exposure to moisture and other elements which may affect the safety of the product and likely rejection at the destination port.  The exporters of these products have to necessarily stuff the containers in the Factory because of the nature of the product.  Most of the Products of Animal Origin have a typical Smell.  Labour at the Ports refuses to handle these products. We understand that the system is automatically selecting the based on the inputs from their Risk Management System.

Kindly look into the above on priority  and arrange to  take appropriate action/ suitably modify Risk Management System (RMS) to obviate the need for re-examination of Factory stuffed Customs / self-sealed containers of Products of Animal Origin in case of  regular exporters  approved by the  plant approval committee constituted by Capexil, eliminate  the said  bottlenecks, arrest additional cost , facilitate  smooth and timely execution  of export orders and truly  demonstrate   achievement of objective of our Prime Minister  of  EASE OF DOING BUSINESS IN INDIA.  We request that the containers should not be opened by Customs at ICDs / Ports causing unwanted hardships to the exporters.

Demand of NOC from Wildlife by Customs Authorities

Prior to 2002, Customs used to demand NOC from Wildlife for all products of Animal Origin.  Being Competent Authority and aware of the fact that all these products are sourced from Buffalo Meat Industry, CAPEXIL took up the matter with the Commissioner of Customs, Tughlakabad, New Delhi.  The Commissioner of Customs, ICD, TKD, and New Delhi waived the condition of requirement of NOC from Wildlife of Bones, Horns, etc. where the Shipment was accompanied with a “Shipment Clearance Certificate” issued by CAPEXIL the Competent Authority).

After Single Window Project came into force, Wildlife Crime Control Bureau, Ministry of Environment & Forest, Govt. Of India in a communication addressed to the Deputy Commissioner (SW), Single Window Project, Central Board of Excise and Customs, Ministry of Finance vide File No. 3-10/WCCB/2015-Vol-II/3060 dated 23 rd  December 2016 communicated revision of Customs Tariff Head (CTH) mapped to WCCB due to changes made in Finance Act, 2016. In the above communication, the CTH which are covered under CAPEXIL as Competent Authority are also mentioned.

All Plants of all exporters of these products exporting to European Union are approved by CAPEXIL.  They are issued a Plant Approval Number and their Plants are regularly monitored by Plant Approval Committee of CAPEXIL.  The Plant Approval Committee ensures that all these products are produced from by-products of Slaughterhouses where healthy Buffalos are slaughtered for human consumption.

Certificate (Shipment Clearance Certificate) is issued by CAPEXIL in view of EXIM Policy is produced by Exporter in respect of each shipment. However, Customs authorities at the Ports have again started asking for NOC from Wild life department.  We request you to kindly waive the requirement of NOC from Wildlife for the Shipment which are accompanied by “Shipment Clearance Certificate” issued by CAPEXIL, the Competent Authority.

Ossein and Gelatin Industry

Gelatine is one of the most versatile biological products with a wide range of physical and chemical properties. It is a natural animal protein composed of various essential amino acids required for human nutrition.  Gelatine is obtained by selectively breaking down and extracting the protein collagen, which is primarily present in the connective tissues of animals.  It is natural, nearly transparent, faintly yellow, odourless, and almost tasteless glutinous substance.  Gelatine is a pure nutritional protein. It is natural and healthy food and has excellent gelling strength.  It is used for human consumption as well as in various industries. It is made from animal raw materials containing collagen.  Gelatine has a shelf life of at least 5 years when stored properly.

A superior Quality Protein for Humans

Protein is indispensable for human life. All humans need protein daily for remaining fit and healthy. Gelatine is a pure, unmatched, highly nutritional protein providing following 18 essential amino acids which are the building blocks of proteins.

Composition of Gelatine

Protein is indispensable for human life. All humans need protein daily for remaining fit and healthy. Gelatine is a pure, unmatched, highly nutritional protein providing following 18 essential amino acids which are the building blocks of proteins.

• 84-90% protein
• 1-2% mineral salts
• The rest is water

Gelatine is free of preservatives or other additives, cholesterol and purines (= uric acid compounds). The quality of Gelatine is determined by its Bloom value, which is generally between 50 and 300. Bloom value is an indicator for determining the firmness and jelly strength of Gelatine.  The higher the Bloom value, the higher is the jelly strength of the Gelatine.  Gelatine is a high-quality source of protein and is also free of cholesterol and sugar. It contains practically no fat. Gelatine is easy to digest, is completely broken down by the human organism and has more or less no potential for causing allergies.

Health & Nutrition Benefits of Gelatine

The amino acids Glycine and Proline perform an important function for building up fibrous tissues in the human body. An insufficient supply of these amino acids results into various forms of joint pains as well as brittle fingernails and hair.  The natural protein Gelatine plays a major role in supplying the body with Glycine and Proline. It differs from other proteins because it contains the two amino acids in a concentration that is around 10 to 20 times higher than others.  International studies confirm that Gelatine has a preventive and regenerative effect on the skeleton and locomotion system – especially bones, cartilage, tendons and ligaments.  For the relief of joint pains in patients suffering from Arthritis and Osteoporosis, dieticians and doctors recommend a dose of 10g of Gelatine a day in the diet to be extremely beneficial.

BSE has never occurred and recorded in India.

Raw materials: Only raw materials fit for human consumption are used in the manufacture of gelatine.  Gelatine manufacturing plants have been inspected from time to time by external agencies such as the US FDA, EDQM etc. and have been found to be complying with their requirements.  The Gelatine manufactured in India finds markets in all the continents of the world.

Food industry

Edible Gelatine is the most common form of Gelatine. Due to its functional properties Gelatine is extensively used in food production. The main reason for this is its unique ability for Gel-Sol transformation. Gelatine melts at 37 degrees Celsius and regains firmness when it cools down. Its melt in the mouth properties make it indispensable for the food industry.  Gelatine is a source of high-quality protein. It is low in calories, free of cholesterol, sugar and fat. It is easy to digest and has hardly any potential for causing allergies.  Gelatine is extensively used in Confectionaries e.g. chewy toffees, marshmallows, liquorices, gummy bears, wine gums, jelly babies, Milk products and deserts e.g. yogurts, curd, cheese, baked goods, Meat, Fish and sausages and drinks e.g. Wines, juices, cider and beer. Edible Gelatine is a natural foodstuff and is therefore subject to stringent quality control regulations.

Gelatine is indispensable in calorie-conscious diets

Gelatine is used in food production to enrich protein, reduce carbohydrates and as a carrier for vitamins.  Many meat and sausage products, as well as ready meals, have very high concentrations of salt. Thanks to the use of Gelatine hydrolysate, the proportion of table salt can be greatly reduced without making any compromises in flavour.  Gelatine can also play an important role in weight loss. Due to its ability to gel it can partially replace the high fat content in many products. The development of many of the low-fat products, such as half-fat margarine, fat-reduced cheese and yogurt varieties, which can be found on the shelves labelled light products, would not be possible without Gelatine.  Delicious reduced calorie dishes can also be prepared at home with gelatine. They are low in fat, but still have the full flavour.

Pharmaceutical Industry

In the pharmaceutical industry, Gelatine is used for the manufacture of capsules, tablets and dragees. The film forming property, digestibility and capability to mask the taste of the medicines make Gelatine the ideal product for Hard and Soft Capsule production. Owing to its good compatibility with human tissue, Gelatine in sponge form is used to treat wounds and as a replacement for blood plasma in solutions.

Capsules: Hard and Soft shell capsules are made of Gelatine.  Both Hard and Soft shell Gelatine capsules shield the drugs against harmful effects i.e. light and oxygen. Whereas soft shell capsules are mainly used to encapsulate vitamins and food supplements in oil and paste forms, hard shell capsules are mainly used for powder and granulated medicines and dietary supplements. The Gelatine shells help to preserve the active pharmaceutical ingredients for extended periods of time.  Gelatine-coated tablets (caplets) are a new technological development. The external coating with Gelatine facilitates easier swallowing of caplets.

Gelatine Sponges: Gelatine sponges play an important role in dentistry and surgery. The blood-stanching sponges are completely absorbed by the body’s own tissue while the wound is healing.

Plasma Expanders: As an emergency medicine, plasma expanders (blood volume replacements) based on Gelatine are often used in cases of blood loss in order to balance the patient’s blood volume again quickly.

Photographic Industry

Silver salt photographic materials consist of up to 15 layers containing Gelatine that are coated onto film or paper. Here Gelatine acts as a binding agent for light-sensitive silver halides. Due to their swelling properties, the developing agents can penetrate the layers and be removed again by watering. Gelatine is an important component for this complex layer technique. It has the ability to form a solution during heating that sets to a gel again on cooling down and can be kept after water removal. Gelatine’s properties are needed to produce photographic materials such as amateur films, colour paper, graphic art films and X-ray films.  Gelatine is also indispensable for digital photography. The ink-jet printer paper coated with Gelatine guarantees brilliant colours and clear shapes. This results in prints of the highest quality.

Gelatine develops its healthy and stabilizing effect not just in the food, pharmaceuticals and photographic industries. Many industry sectors benefit from the positive properties of this natural product. The examples cited are a selection from the broad spectrum of Gelatine applications.

Other Applications

Collagen hydrolysates and collagen surfactants based on Gelatine are kind to the skin and fully biodegradable as active agents in detergents. As an additive in washing detergents they develop their good compatibility with the skin and protect it against the aggressive surfactants. In their capacity as fiber-protecting proteins they have a tangible effect in special detergents for wool, silk and other delicate textiles.

• Specially selected gelatines and gelatine hydrolysates are widely used as foliar fertilisers. Thanks to the slow depletion of amino acids, the nitrogen is precisely dosed. Gelatine thus has a positive influence on the metabolism of plants.
• In the manufacture of matches, the binding properties of Gelatine are indispensable for the match heads.
• Gelatine is also used in the paper industry. Here, it improves resistance to moisture and the stiffness of the paper. Books can also be restored with Gelatine.

Zinc and cadmium can be cleaned with the addition of Gelatine in electrolytic baths. Gelatine enables the sedimentation of dirt and thus creates the basis for the production of metals of high purity.

Collagen

Collagen, the primary organic element found in animal bones, serves as the fundamental raw material for Gelatine production in India, where bovine bones are traditionally used. The process of transforming collagen into water-soluble Gelatine involves both hydration and hydrolysis. Each Gelatine molecule consists of different-sized units that are essentially fragments of the collagen chain. Gelatine is not a single chemical entity. It is a mixture of fractions different principally in molecular sizes. These fractions are composed entirely of amino acid radicals joined together by peptide linkages.  Gelatine is composed of carbon, hydrogen, nitrogen, and oxygen, containing all the necessary amino acids for mammalian nutrition except tryptophane. It plays a crucial role in various industries including pharmaceuticals, food, photography, and other technical fields.

Ossein & Gelatin Industry in India

There are only 8 to 10 Gelatin manufacturers in India and they are concentrated mostly in Gujarat and Maharashtra.

Exports of Ossein and Gelatin from India

India’s export of Ossein and Gelatine products have reached US$ 79 Million during 2022-23.  There is no dearth of Orders and there is significant potential for export of Ossein & Gelatine subject to availability of Raw material i.e. Crushed Bones.  World Organisation for Animal Health (OIE), Paris, France has declared India as “Negligible BSE Risk Country Status”.   Shortage of raw material – This is resulting in less capacity utilization by the Ossein & Gelatine Industry.  USA, Indonesia, Japan, Korea Rep, Canada, Malaysia and Romania are the leading markets for Gelatine.  For Ossein the main markets are Japan, Germany, France, USA, Korea and Netherland.

The global exporters for Gelatine Products are Brazil, Germany, France, Belgium, USA, Netherlands, China, Italy, Canada, Argentina and India.  With regards to Ossein Products, the global exporters are Belgium, India, Pakistan, Thailand and South Africa. Ossein and gelatine are already being exported. Collagen and Collagen Peptide are new and value added products of Gelatine which have a good potential for exports.

Suggestions/Measures Proposed for achieving a minimum 20% growth in exports

1. Export of Ossein and gelatine requires import of bovine bones whenever there is a short supply in the country. This requires permission from DGFT, Ministry of Agriculture (Dept. of Animal Husbandry) AQCS and FSSAI. This results in substantial delay these can all be clubbed as a single window clearance.
2. Removal of import duty on Gelatine on imports into Japan:  India has been one of the largest suppliers of Gelatine to Japan.  Japan is levying import duty of 17% on all Gelatine imported by them.  This steep import duty has resulted in steep fall in exports of Gelatine from India to Japan.  Government of India may take up this matter with Japan for removing/reducing the import duty on Indian exports of Gelatine.
3. Turkey and South Africa have banned import of gelatine from India, due to the Bovine spongiform encephalopathy (BSE) issue, commonly known as mad cow disease.  India has been accorded NEGLIGIBLE BSE STATUS (first category) by OIE (World Organization for Animal Health) in May 2010.  Imports from India are being made by most of the countries except Turkey and South Africa, China citing BSE issues. This is only to avoid competition from India.  Even countries like USA, EU and Japan allow gelatine imports from India.