DAMMAM: A high-level delegation of tourism and culture ministers, government officials, bureaucrats, airline operators and tourism experts from different states of India is currently visiting the Kingdom to familiarize Saudis with all that “Incredible India” has to offer.

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Trade with India is not a new phenomenon
On the heels of Australia, New Zealand and Canada, India has captured a large share of Halal meat market globally. Though India is exporting Halal meat of all categories from poultry to red meat, it is buffalo meat that has earned India a lucrative market and burgeoning revenue. On an estimate between 1999-2009 India’s buffalo meat export has risen from 160,000 tonne to 650,000 tonnes. India’s exporting partners could be many, but China and Africa rank among the top two. The reason behind India’s success story is its livestock health status, the certainty of Halal compliance and of course competitive pricing. What made Pakistan languish for years in the corridors of this vital sector, achieving so far only one per cent share in the $650 billion market? “Nothing, but lack of political will and the vision to grow beyond self interest, “says CEO Punjab Agriculture and Meat Company, Mr Hamid Jalil. “Trade with India would not be a new phenomenon; we are already engaged with Indian market through SAFTA and on many occasions, indirectly as well. By providing MFN status to India, the informal trade would become formalised to a certain extent, adding into the tax pile”.

MFN can give us breathing space
Though, I do not see any exponential benefit out of this new arrangement to Halal meat market, there is some invisible support that could come handy. Being a nascent market, Pakistan has yet to build and streamline the infrastructural support of livestock. The supply line needs unravelling and a thorough overhauling. There is a huge demand and supply gap. Our farming practises are also antiquating. This scenario provides one opportunity wherein, we could benefit from the export of Indian buffalo meat to Pakistan. With MFN anchoring the trade, this export could be used for the time as leverage, filling the demand gap, unless we get away with our supply side issues. We can fill in our orders abroad while formalising things at home. Pakistani importers are already practicing this deal: let’s do it formally. Presently we are pressing upon our farmer to let the buffalo male calf survive till the age of six months and beyond so that a substantial quantity of meat can be taken from each animal. We are aiming at a behaviour shift, to create awareness about the difference between dairy and beef breed animals. For this, we have to make the farmer understand that beef quality could only be ensured if cows and buffalos are raised specifically for flesh purposes. We have to make them realise that a dual purpose approach, that is milking and slaughtering the cow once the carrier period is over, leads to diminishing market response and thus, uncompetitive pricing. Attaining this change would obviously take time; meanwhile, Indian export could be used to retain orders. Another best option would be, if we could import live cows from India, which I doubt the Indian law would permit. Though, World Trade Organisation too does not allow trade of live animals between countries within a region having foot and mouth disease endemic, however, by following quarantine rules at the port, this issue can be resolved and permission can be sought. But we should keep this in mind that other than cows, any easy flow of live animals to Pakistan would badly affect local livestock market.

India’s vegetable and fruit market
The paranoia that MFN has bought Pakistani agriculturist is due to the fact that we have regressed at all economic fronts, whereas, the world has gone ahead into new and advanced ventures. As rightly said by Dr Hamid, “We need to get federal at every level, even at the fiscal level; let district define their economic fate, by that I mean, every district should have a hand on its economic pulse. It should provide for its needs through indigenous resources. If you come to think of it, India by a wide margin, is a vegetarian country, in this respect, Pakistani vegetable and fruit market has a lot of trading potential with India. If we can make our land fertile to an extent that every cultivable land of this country is given to production, the trading prospects could do wonders.” Supporting Dr Hamid’s argument the Chief Executive Officer Khan Trading Company, Khalid Khan said that, “India could become a large market for Pakistani Kinow (oranges). According to an estimate, Pakistan can export 400,000 tonnes of Kinow to India, annually. This export would fetch $1.2 billion in the next two years.”

Pakistan could tap on Halal food market
Even though our cost of production is terrible, we have to understand that development is a dependent variable; it cannot take place independently. South Asia is the world’s largest populated area of the world today, with a high density of youth as well as Muslim population. The growing concept of Halal food is stretching itself to cover all that could be made Muslim in its texture, contour and chemistry. In Halal meat, the entire line of action through which an animal is brought up is supposed to be Islamic in nature. Exploiting this key point, Pakistan can make its niche as the only pure and real Halal meat producer, since we are by all means feeding our animals on organic food, unlike India that has adulterated feeding combination. Once we are in alliance perhaps, the perceptual disharmony would cease to make collaboration difficult and let each other grow in our areas of specialisations.

India’s high-tech farming
We cannot deny the fact that an Indian farmer is far more educated than a Pakistani farmer; his decisions are usually timely and effective. The major reason for this success goes to the IT industry that has placed India high on the pedestal of international business community. Free trade and frequent interactions could result in making our farming high-tech too with lesser cost, due to proximity of the two countries. Information on agro processing industries, aqua culture units, animal husbandry, floriculture, etc could give farmers the diversity that they need in making intelligent decisions and influencing policy making. Certainly, the cost of production in Pakistan has shot up exorbitantly, and the government of Pakistan needs to look at it seriously, especially when trade within such a close proximity is in view. However, if we shift the focus, try seeing India not an enemy, and most importantly become a friend to our own selves. MFN and the ensuing complaints would begin looking more like opportunities.

Durdana Najam is a freelance feature writer, currently doing MS in Governance and Public Policy from FC College, Lahore. She can be reached at durdananajam456@hotmail.com

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Halal India management is working with an Indian legal team to initiate a campaign with Indian Muslims association, leaders, and political parties to file a case to IATA office in India.

The following was a letter produced by Mr Jinna to IATA in India:

RE: Appeal to change the air catering food labelling name from “MOML” (Muslim Meal) to HALAL MEAL”  “HLML “(Permitted Meal).

May the peace be with you, Good day.

This is with reference to our on-board carting services under the auspicious of IATA standard for all the on-flight food & beverages services being provided to the passengers. We recollect that as per the existing categories of food services being practised by different faiths and religious affinities of the travelling passengers are dully recognized in India & worldwide.

We take this opportunity to most sincerely bring to your kind attention that as for as serving the food and beverages as per Muslim Faith and need , it is currently widely accepted and practised worldwide to serve and consume food & beverages under the label “MOML” (Muslim Meal). We most humbly put forward our sincere request to redefine this label “MOML”and to change it to “Halal” Meal. For Kosher meals, KSML meal is used (not ‘Jewish’ Meal) but when it comes to Muslims they code it to MOML (Moslem Meal). This is an open discrimination. It restricts in some way the popularity of Halal Meal among non-Muslims however it is fit for human consumption.

Your esteemed organization can also re-emphasize the same to IATA which will ultimately strengthen our community as whole.

Halal (Arabic: means lawful or legal) is a term designating any object or an action which is permissible to use or engage in, according to Islamic law. It is the opposite of haraam. The term is used to designate food seen as permissible according to Islamic law (Sharia).

This will have more specific reach to the set classified passenger travelling world wide.

This is only the first stage to give a more customer friendly understanding of the on-flight catering services available worldwide, and our first step is to address the need of on-flight catering services being provided to the people of Islamic Faith. Today many airline food catering service providers claim & label meals as “MOML” without proper halal certification processes being followed, and they self claim that the food is suitable for Muslim travellers. Authorised Halal Certification should be obtained if they claim the food is suitable for Muslim travellers.

We will forever be grateful to you and your organization if you would consider our aforesaid request and proposal. Expecting your positive reply and advice as soon as possible.

Thanking You,

Yours Truly,

Mohamed Jinna

CEO, Halal India

IN +91-9884399988 SG + 65-97638009

www.halalindia.org

“Eat Permitted Food – Live Healthy”

“O you people! Eat of what is on earth, lawful and clean…”(Quran 2:168)

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Halal Nepal is first and only certification body in Nepal which has rolled out its services few months back and has got tremendous response in the region. The MoU signing ceremony was held in India on 21^st October 2011. Mr Jauwad Ansari, secretary, Halal Nepal visited Halal India office with his team members which included representative from the sharia board of Halal Nepal.

On this occasion Mr Jinna, CEO, Halal India, stated that this MoU will help with bringing these two countries together in many ways. Lots of products are being exported from India to Nepal and now Halal India certified products will reach to Nepal to cater to the significant Muslim population of Nepal. And due to the increasing global appeal of Halal Certified products, non-muslims will also prefer Halal Certified products. He also brought to the attention of Nepal’s Tourism industry, which can be a next perfect place of Halal Friendly tourism in future.

Mr Jauwad Ansari, secretary, Halal Nepal stated that Halal India has huge experience in Halal Certification and other related services and Halal Nepal is very keen and enthusiastic to learn from Halal India.

About Halal India

Halal India is a leading certification body in India. Halal India is a member of IHIA (International Halal Integrity Alliance, Malaysia) which is a partner of the Islamic Chamber of Commerce and Industry (Kingdom of Saudi Arabia). Halal India is also partner with CrescentRating, a Singapore based Hospitality rating company.

Halal India has certified hundreds of companies in India as halal.It has provided Halal Business solution to Carrefour, the French Retail giant, which has already rolled out its presence in India through Wholesale Cash and Carry (WC & C), Nirma Salt, Haldiram Namkeens and Sweets, Goldwinner oil, Vadilal Foods, Vadilal ice creams, Bacfo Pharmaceuticals, Alchemist Limited, Ambuja Group, Daawat Basmati Rice, Palita Nasi Kandar Intl (P) Ltd (Malaysian chain of Restaurants), Hotel Vestin Park, Ruan Thai, Wangs Kitchen among many others.

About Halal Nepal

The first Halal certification authority in Nepal, which is registered under Nepal corporate law and it’s been accredited by most of the halal certification authorities around the world. Halal Nepal is an Independent NGO body, which incorporated with the government of Nepal, deals in Permitted (Halal) Food, Research Work, Issuing of Halal Compliance Certification, Independent auditing and monitoring product compositions and services as per Shariah law. Promote healthy& hygiene food preparation, handling and serving processes, promoting halal friendly tourism, halal friendly medical treatments, Facilitate Hajj & Umrah services , halal products supply chain processes & logistics. Promote and certify Islamic finance, bonds, insurance, stocks etc.  Thereby, we ensure that the Halal consumers and the Service providers derive benefits from that which is lawful and good as per shariah Law.

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Ever heard of Fulla, the gorgeous little girl who wears a hijab (Islamic headscarf), is draped in an abaya (Arabic cloak) and promotes good values among girls of her age? Well, she is the prototypical Barbie doll of the Arab world, produced by Syria’s NewBoy Design Studio for a parent company that is based out of Dubai. And that’s not all: Fulla comes with her own little pink prayer rug.

Fulla was introduced in 2003 in West Asia with an eye to offering a toy in sync with the cultural sensitivities of the Arab world where parents are uncomfortable having their daughters play with the very American icon, Barbie. The creators of the doll say it has been a huge success since it was introduced because it relates to the Islamic values as practised in these countries. Fulla is fashionable but still believes in traditional values — and she represents the increasing commercialisation of Islam.

The Islamic world is rapidly going through a paradigm shift as far as brands and consumerism are concerned. Paul Temporal’s book might well serve as a gospel for many multinational corporations that have hitherto believed in formulating a marketing strategy based on a SWOT (strength, weakness, opportunities and threats) analysis or by identifying their target customers.

As more and more transnational companies look at expanding their footprints in the global Islamic market, which accounts for around 23 per cent of the world’s population and is projected to grow to about 35 per cent in the next 20 years, brand managers and marketing heads need to study and analyse the religion that dictates so much of public life and its associated values.

In the book, Temporal, who directs a research project on Islamic branding and marketing at Oxford University, has also underscored the need to study the broad ethos of Islam that stands on some of basic principles. The book provides a detailed approach as to how companies should market their products in countries that have a significant Muslim population, even as he argues why a particular religion needs to be understood before penetrating the market.

The book offers numerous case studies based on thorough research conducted both on Islamic brands and non-Islamic labels. Interestingly, branding efforts are not limited to products or services only; Temporal also highlights how more and more Islamic countries such as Qatar, Oman, Malaysia and Brunei, among others, are now spending huge sums of money to promote their own brands so as to create a positive image of their countries.

A case in point is Qatar’s bid to host the 2022 football World Cup. Although Qatar is not a leading footballing nation, its success in winning the bid for one of the world’s biggest sporting events has not only given the place instant recognition among many as an open country, but it also seeks to attract investments and jobs. Similarly, Malaysia and Brunei have been able to assert their positions as an Islamic financial base and halal food hub respectively. Besides, several brands from Islamic countries, like Malaysia’s Petronas, have gained a reputation among a vast Muslim population for fulfilling their aspirations. Petronas, for instance, entered the world of Formula One motor racing in 1995 in an effort to assert its brand as a global name. Today, it has bagged a five-year agreement with auto giant Mercedes.

Interestingly, Temporal sketches many others Islamic brands that, like Fulla, offer US ideas in traditional garb. There is, for instance, “Beurger King Muslim” (BKM). Modelled on the lines of the famous US food-chain, BKM was launched in Paris six years back and offers beef and chicken burgers but all halal meat. It also offers “Koull” Double Cheeseburger . “Beur” means Arab and “Koull” which can be pronounced “cool”, means “to eat” in Arabic.

The book also draws attention to the basic tenets of Islam and how such societies are governed, explaining key values and ethics in a lucid way. It has highlighted the basic tenet of the Quran that states that any creation, even a product that is meant to be consumed, is a gift of Allah and it must be used efficiently for the benefit of all. Then there are certain businesses that are prohibited under Islam such as gambling, pornography, alcoholic beverages and pork products. The most important thing to remember while venturing into an Islamic market is that the poor must be protected by the rich.

Companies that fail to understand these few but essential tenets are unlikely to taste success in markets. For instance, sports goods major Nike had to recall a whole range of sports shoes for carrying a logo that offended Islamic sentiments. While apologising to the Islamic world, the company also had to donate $50,000 for a playground for an Islamic elementary school in the US. Examples such as this make this book an essential read for all die-hard fans of globalisation who believe in one world and one market but different virtues.

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“It is good news for us as we have been pursuing for such an approval authority in Bangladesh,” said Syed Moazzam Hossain, president of Bangladesh-Malaysia Chamber of Commerce and Industry.

He told Reuters that Malaysia’s Department of Islamic Development had also included it in the list of halal certification bodies worldwide, meaning Bangladesh could take a slice of the $661 billion global market for halal food, which is prepared following Islamic dietary laws and regulations.

World Halal Forum data shows the halal food market has grown fast over the past decade and is now worth an estimated $661.6 billion a year, representing almost 17 percent of the global food industry.

Jalal Ahmed, vice chairman of the state-run Bangladesh Export Promotion Bureau , said Bangladesh could earn a huge amount of foreign currency from halal food exports.

The largest contributors to the halal food market in Asia are Indonesia, China, India, Malaysia, and the Gulf Cooperation Council members including the United Arab Emirates, Bahrain, Saudi Arabia, Oman, Qatar, and Kuwait.

Jalal said that five Bangladeshi companies who had already received orders from abroad to supply halal food so far had not been able to export due to the lack of certification.

Moazzam said some companies had already signed contracts with Malaysian importers to supply halal food. (Reporting by Serajul Islam Quadir) (Created by Serajul Quadir)

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Photo: Tim Tim Rose

WHILE THERE an emerging market worldwide, specifically developed in cosmopolitan societies of Europe and Southeast Asian countries to provide niche services and products in compliance with the Shariah’s dietary and other related norms that are strictly followed by most of Muslim population. The word Halal originally comes from the Arabic language and is used for every lawful object and action in the view of Islamic laws. In its literally broad meaning, it applies to all spheres of life activities including food, cloth, finance, personal care, etc. But in common terminology, its meanings are narrowed down for food and meat products. Products that are free from pork and alcohol, and meat products made according to Muslim law are called Halal. Halal markets have grown from Halal food to new areas like Halal cosmetics, Halal logistics, Halal fashion and Muslim-friendly tour and travel services. Islamic finance, relatively a mature interest-free market that caters to the Muslim consumer, has estimated the total assets of Shariah-compliant products across the world around $951 billion at the end of 2008, up 25 per cent from $758 billion in 2007. It was merely about $150 billion in the mid 1990s.

India is home to more than 175 million Muslims and has the third-largest community of Muslim consumers in the world after Indonesia and Pakistan. But its market in regard to the choices of Halal-endorsed products among mainstream brands is still highly untapped. According to estimates by the Pew Research group, Muslim population in India is projected to increase from 177.3 million in 2010 to 236.2 million in 2030. And the share of Muslims in India’s population is expected to increase from 14.6% in 2010 to 15.9% in 2030.

More than one in ten of the world’s Muslims, 10.8%, will live in India in 2030, about the same as in 2010. Most Muslim households have middle-level expenditure abilities. Compared to rural Muslims, counterparts in urban areas have better economic conditions. But the masses live in rural areas. The percentage-wise distribution of urban Muslims annual per capita expenditure is 25 per cent for below Rs 5,280, 47 per cent between Rs 5,281 and Rs 10,320, 22 per cent between Rs 10,321 and Rs 19,560 and 6 per cent above Rs 19,561 in 2004-05. For the same period, the annual per capita expenditure for rural Muslims was below Rs 4,110 for 23 per cent, Rs 4,111 to Rs 5,790 for 32 per cent, Rs 5,791 to Rs 9,480 for 36 per cent and above Rs 9,481 for 9 per cent.

The majority of Muslims prefer to buy only Halal-certified products. Further, an increased awareness in recent years among Muslim consumers about what they see as religious obligations has expanded the demand for Halal items. Indian Muslims have 15 per cent share in the consumer market, going by their population. But keeping the constraints of their economic conditions, it is assumed that Muslim consumers have only 10 per cent share of the overall private consumption expenditure of India. Based on the share of Muslims, the estimated consumption is shown in the accompanying table.

BESIDES THE domestic market, India is a major hub for export of meat and processed products to Muslim countries. Malaysia, Egypt, Saudi Arabia, Kuwait, UAE, Jordan and Oman are among the top ten importers of Indian meat while the UAE was a major destination for processed food from India in the year 2009-10. Halal-tagged products would attract Muslim consumers in overseas markets especially the Middle East and Arab regions, which are major trade partners with India.

Muslims are permitted to use products with vegetarian logos from India by default since these do not contain Haram, the opposite of Halal, elements. To certify that products are authentic Halal, it is necessary to regard the processed and contaminated products where the ambiguity of Haram ingredients is high due to change in shape. It is pertinent to note that introduction of the Halal tag with conventional products is not an identity campaign for Muslims but only intends to include Muslim consumers who might have been left out due to religious limitations.

Despite all this, there are no serious investors and promoters for Halal-endorsed products in India. Al Kabeer, Allanasons, Alhind and Vinkeys are major players in Halal meat processing in India with a variety of products under their respective brands. Now, Intertek, a global leader in quality and safety solutions serving a wide range of industries, is extending its food certification expertise to include Halal certification in India. It is the first initiative by a multinational company to introduce Halal business in India.

Apart from the Halal food market, Islamic finance is another highly discussed sector in India for Halal financial services. Indian Muslims are reluctant to participate in banking and financial activities due to prohibition of interest-based transactions in Islam. The Bombay Stock Exchange has launched a first of its kind index for Shariah- compliant companies with the intention to increase investments from Indian Muslims. After the non-banking financial company Al Baraka Financial Services Ltd., by the Kerala government, this is the second sincere effort by a government department to introduce the Shariah compliance option among mainstream financial institutions. However, several private broker companies are also offering Shariah-compliant investment portfolios in India.

Shafeeq Rahman is a professional researcher on India-centric socioeconomic and political databases.
rahman.shafeeq@gmail.com

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Intertek India Pvt Ltd, the fully owned subsidiary of Intertek Inc, already has certification and testing capabilities in India for various sectors including the food sector, according to Madhumita Guha, country marketing head for Intertek India.

“The market share of Halal products in India is nominal at present, but it is going to grow very fast because of its strict norms of hygiene and safety aspects that will be attractive to more informed Indians,” she said.

Globally, food manufacturers like Nestle and even retailers like McDonald’s, KFC and Pizza Hut are responding to what is already a US$500 bin-a-year Halal industry, said Guha, and they are bound to turn their attention to the Indian Muslim populace.

According to Guha, Intertek is the first food services provider accepted by the International Halal Integrity Alliance, a global Halal authority, as a company authorised to offer Halal certification services.

“Since Halal certification is a combination of Shariah law and food safety, Intertek will be the technical partner and take care of all the food safety standards, while the religious requirements will be audited by our partners Halal India as per Shariah laws,” she added.

Accordingly, the Halal certificate will not be issued by Intertek but the Halal certification body, said Guha.

Guha pointed out that Intertek already has the required certification and testing capabilities in India to be able to easily accommodate this new offering.

“The Food Lab at Gurgaon is capable of testing the food products as per Halal standards except the meat species identification test which will be incorporated into the lab capabilities by the end of next year,” she said.

According to Guha, the market for Halal certification will extend beyond Indian shores, given that Halal foods are preferred by the Muslim communities across Asia in countries like Indonesia, Malaysia, Thailand and almost all of the Middle East.

“These countries have a high demand for Halal certificated food products and India is a preferred trading partner for these countries when it comes to food products, thereby expanding the scope of our service,” said Guha.

“In addition, because of its stricter hygienic standards, Halal food products are now being embraced by people from other faiths in the region,” she added.

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Despite having the third largest Muslim population in world, India does not have an well organised halal food market. Spearheaded by the West, the halal trade is now gaining immense momentum globally with non- Muslim countries accounting to than 80 percent of the halal trade. Industry estimates put the size of the global halal market somewhere between $1.2 trillion to $2 trillion per annum.

As the trade gains momentum in the domestic market, Intertek is poised to lend its expertise to ensure that the products featuring the Halal Certification match the standards in accordance with Shariah (Islamic) Board Guidelines and other quality standards.

Halal products are prepared in accordance with Islamic teachings and, contrary to general belief, extend beyond food into products like beverages, confectionery, pharmaceuticals, cosmetics and skincare products.

Intertek is the approved food service provider for all large global food producers and the first to be accepted by Global Halal to certify its standards.

-ImagesFood Bureau

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As such, the manufacturer and marketer of halal frozen ready-to-eat meals expected its local revenue to grow to RM6 million in the next financial year ending June 31, 2012 from RM4 million this year, said Chief Executive Officer Liow Ren Jan.

“Our customers want to try something new. They want variety and diversity in the food that is made available for them at the resorts, theme parks and retail outlets.

“Also, in the next financial year, we would add 48 more new outlets across Malaysia to help achieve the (revenue) target,” he told reporters after signing a memorandum of understanding (MOU) with Zion Alliance Sdn Bhd.

The MOU allows Zion Alliance and its business partner, VGP Group of Companies, to distribute AYS’s Sri Kulai microwaveable halal frozen ready-to-eat malaysian meals throughout their network in India.

“This is the first time our Sri Kulai brand be made available outside Malaysia since its inception in July 2008. This will most definitely bring positive attention to Malaysian culture and food in India,” Liow said.

“We expect our sales in India would reach more than RM500,000 by the end of this year,” he said, adding that the company also had plans to penetrate the south China market within this year.

– BERNAMA

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