Date: October 3, 2017

To: CEO of MDH Chilli powder

From: Sakshi Singh, MDH employee
Subject: Report on Rules and Regulations in different Countries
Action Required: Changing Dye, inspection and Advertisement
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INTRODUCTION
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Chillies are a very good source of Vitamin A and Vitamin C which helps maintain good eyesight Formatted: Space After: 8 pt
and strengthens the immune system. Our Chilli powder not only provides our customer with
the desired color but is also spicier as compared to our rival company Everest. As a food
company we have two major responsibilities making sure the product is tasty and that the
product is safe for use. As we provide this in different markets, Indian and European, we need
to make sure we meet their standard safety measures. Lately we had some issue related to the
guidelines of the European Market. We need to be very particular about manufacturing.

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SUMMARY
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There is a dye traced in the Indian chilli powder which is banned now. It not only affects
our sales in the International market but has also increased concern in the Indian market or
among the Indian customers. It was first reported to the leading Italian Food Manufacturer that
a batch of Worcester Sauce exported by us contained the dye. The European Union is
responsible for it. European Unions guidelines came a year after the consignment left India. By
that time, it had been used in 350 odd foods sold across Europe and UK. It resulted in the
biggest ever food recall in Europe and 14 other countries with 15 million pounds worth of food
recalled in the UK itself.

Even though its the European Unions was their fault, as an ethical company we take
the responsibility of the issue. To avoid such issues I have a few suggestions; the dye should be
banned, research should be done for its alternative and pPre Shipment Sampling should be
made compulsory by the Spices Board of India (the central regulatory body of Indian Spices).
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DISCUSSION
PROBLEM 1 HARMFUL DYE TRACED IN THE POWDER
There is a dye traced in the Indian chilli powder which is banned now. It not only affects our
sales in the International market but has also increased concern in the Indian market or among
the Indian customers. It was first reported to the leading Italian Food Manufacturer that a batch
of Worcester Sauce exported by us contained the dye. The European Union is responsible for it.
The dye is called Sudan 1 and its used for coloring solvents, oil, waxes, petrol and shoe and
floor polishes. Its banned in the European market because it contains carcinogens that have
caused cancer in animals. European Unions guidelines came a year after the consignment left
India. By that time, it had been used in 350 odd foods sold across Europe and UK. It resulted in
the biggest ever food recall in Europe and 14 other countries with 15 million pounds worth of
food recalled in the UK itself. Formatted: Font: Bold

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Only 6.4 percent of the total spices exported from India went to the EU and 3 percent to
the UK whereas 73 percent was exported to US, Sri Lanka, Bangladesh and Malaysia and they
didnt have any problem with the product. This means we are still safe. It didnt harm us much
but as a company we should still be mindful with the concerns some of our customers have
because if there their concerns our right, it might affect the rest of the customers in the future
too.

We have had similar experience years ago, when in 2004 our company came under flak
from the UKs food standards agency because we had higher afla (naturally occurring toxin)
toxin levels than mandated. We were not aware that some countries had changed the
acceptable level of afla toxin. We didnt pay attention to this rule and therefore a warning was
issued. I dont want this to happen again. Therefore, we need to be extra cautious.
PROBLEM 2 SALE OF LOOSE PACKETS

Another issue that needs our attention is the purchase of loose packets of spices. Indias
prevention of Food Adulterations Act mandates that all spices (like other food items) should be
sold with packaging that manufacture and expiry date and an Agmark to certify quality but the
loose packets dont have such details. It can be harmful for us as the customers dont receive
the necessary information. Even if they dont care about the information, if something happens
in future they have an easy way to just say that we didnt provide it to them so we need to
make sure that loose packets are not sold in the market.

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CONCLUSION
HARMFUL DYE TRACED IN THE POWDER
PROBLEM 1

The dye is banned in the European market and we should avoid using it for the Indian market
too. The dye is called Sudan 1 and its used for coloring solvents, oil, waxes, petrol and shoe and
floor polishes. Its banned in the European market because it contains carcinogens that have
caused cancer in animals. Even though Dr.Alex Hildebrand (food safety expert at WHO in Delhi)
said that there is no data that its effects of long term exposure on human beings can produce
risks, we should still ban it and try to come up with an alternative. I am suggesting this because
almost of the Indian food contains spices and its a part of their daily food diet, therefore its
long term use might be harmful for them which in turn is not good for our company. It not only
will affect the sale of the chilli powder we produce but might also affect the sale of other
spices.

SALE OF LOOSE PACKETS

PROBLEM 2 Formatted: Font: Bold

FDA of Maharashtra (one of the states in India) is the only one to ban the sale of Unpackaged
and unbranded sale till now. We need to fight to make sure this law is passed in all the states so
that our consumers have faith in our product. There is still a high chance that even if this law is
passed people, especially in the rural areas, might continue to sell unpackaged spices.

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RECOMMENDATION
HARMFUL DYE TRACED IN THE POWDER
PROBLEM 1 Formatted: Font: Bold

We should come up with a plan to research for a different dye that can be used as a substitute.
We will have to make a budget to carry out the plan.

SALE OF LOOSE PACKETS

PROBLEM 2

To stop this we can set up teams or request the government to have some teams that
would conduct surprise inspections to see if the vendors are following the rule or not. The
vendors who dont follow the rule shouldnt be allowed to sell the powder. Even if all the states
dont ban the sale of unpackaged item we can still try to take legal action against the people
who do it because Food Adulterations Act requires them to have the packaged material.

Through social media or TV advertisement we should let our customers know that we
dont encourage the sales of unpackaged items (we can put it in the disclaimer of the
advertisement) and if they see loose items in retail shops they should avoid buying it from
them. This way our customers will know that we are trust worthy and the sales might stop too.
If people dont buy it in the first place, shopkeepers will be forced to keep packaged material.
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REFRENCES
1) India Today

Shefalee Vasudev

http://indiatoday.intoday.in/story/banned-dye-in-indian-red-chilli-powder-worry-domestic-
consumers/1/194112.html

2) Youtube Video (health benefits of eating chilli )

https://www.youtube.com/watch?v=PsG8LHlJweo