US-based PureCircle first major player to enter India after nod on stevia use

US-based PureCircle, a global supplier of high-purity stevia ingredients for the international food and beverage industry, has become the first major player to explore investment opportunities in the country after India allowed use of stevia - the product is obtained from the leaves of stevia rebaudiana berton, a plant locally known as "Meethi Tulsi" and "Meethi Patti" - five months ago.

The company plans to invest $200 million to partner with thousands of Indian farmers to plant 5,000 hectares of stevia and build a stevia processing facility in India in the next five years.

"Our investment in India signals the huge potential we see in this market for stevia as a sweetener and as an agricultural commodity," said Jason Hecker, PureCircle's President of Group Sales and Marketing. "We believe this plant can not only help farmers in the region earn extra income, but also help to naturally reduce calories for Indian consumers while maintaining the sweet tastes they want."

Food Safety Standards Authority of India (FSSAI) cleared the use of Steviol Glycoside, a white to light yellow powder which is 200 - 300 per cent sweeter than sugar on 13th Novermber, 2015. A scientific committee that looked into the safety aspects of this food ingredient had recommended the clearance of the product some four years ago.

FSSAI has specified the amount of stevia that can be used in dairy based drinks, flavoured Dairy based desserts (ice-cream, frozen desserts, cream toppings), yoghurt , fruit nectars, non-carbonated water based beverages (non alcoholic), ice lollies or edible ice jams, jellies, marmalades, ready to eat cereals, soft drink concentrate, carbonated water and chewing gum.

"Across the globe, PureCircle's portfolio of innovative stevia sweeteners and flavors has enabled major brands to reformulate full sugar products with this natural, zero-calorie solution to address consumer demands. We feel confident that stevia's approval India will lead to new, lower calorie taste innovation for this market and help consumers significantly reduce their sweet calorie intake." Ajay Chandran, Senior Director for South Asia Region said.

Global soft drink majors like Coca Cola and Pepsi and local players such as Parle and Dabur are all known to have shown interest in introducing products that have stevia content.

While stevia is grown in India in a very small scale, the entry of companies like PureCircle is expected to boost its commercial value and hence production.

The company said that it would provide the farmers seeds, technology and a buy back assurance at a pre-determined price. "Indian farmers that grow PureCircle stevia on one hectare of land can expect to yield an income of about Rs 4 lakh a year, executives said.

PureCircle is already in touch with farmer groups in Punjab, Uttar Pradesh, Tamil Nadu, Jharkhand and Madhya Pradesh, where field trials to identify the appropriate stevia variety is underway.