The bitter-sweet truth about these alphonso mangoes

Beware! Many street vendors are selling alphonso mangoes, which are 'fake' and artificially ripened using chemicals, under the pretext of selling Ratnagiri or Devgad alphonso

When boxes of Alphonso started appearing on Pune streets for sale early this week from coastal Konkan, people were pleasantly surprised at the early onset of the mango season.

However, the ‘king of fruits’ could not be savoured by many as State Food and Drug Administration (FDA) officials had swooped on the vendors following complaints that the mangoes were harmful to health as calcium carbide (CC) had been used to ripen them artificially. What is more stunning is neither are these alphonsos from Konkan region, nor they alphonsos. This look-alike variety of mangoes is from Chennai and Mangalore whereas the original alphonso mango belongs to the Konkan region of Maharashtra.

Scores of boxes containing dozens of mangoes smeared with CC powder have been seized and destroyed in warehouses since the FDA inspectors in coordination with their Pune Municipal Corporation (PMC) counterparts, launched a concerted drive a couple of days back.

Interestingly, street vendors are selling these so-called ‘alphonsos’ for Rs300 per dozen whereas the ongoing rate of 'original' alphonso from the Konkan region is between Rs1,100 to Rs1,300 per dozen.

Mangoes worth over Rs70,000 have so far been destroyed in the drive against the vendors involved in the malpractice and the FDA operation is being extended to the entire Pune division comprising Kolhapur, Sangli, Satara, Solapur and Ahmednagar, Sanjay Patil, joint commissioner, FDA Pune, told PTI.

"We had come across isolated cases of artificial ripening of mangoes put on sale last summer. But this time the hazardous practice by unscrupulous elements seems to have assumed a greater magnitude as our combing operations to detect such fruit stocks are continuing," said Mr Patil.

The use of CC, available in the form of a white powder, is banned under the FDA Act as an agent for artificial ripening of fruit as it entails health hazards affecting nerves, eyes, skin and lungs.

At one of the storages used to pile up the mangoes, the FDA inspectors on 17th March stumbled upon a packet containing about 2.5kg CC powder, a sample of which has been sent for chemical analysis in FDA labs.

"A lab report is awaited to confirm chemical analysis of CC. Once that is confirmed, we can initiate legal action by filing a criminal offence against those involved," he added.

So far, the FDA-PMC squad of food inspectors numbering around 25 have seized mangoes thus ripened, mainly from Guruwar Peth and Shukrawar Peth areas of the city but they believe that the dubious activity is rampant in many other parts.

Interestingly, FDA officials acknowledged that they got the clue about the large-scale hazardous artificial ripening of mangoes using CC powder through a written complaint filed by Dilip Bhairat, a Maharashtra Navnirman Sena (MNS) activist who has also approached PMC on the issue.

An MNS activist said most of the vendors who were involved in the malpractice came to Pune from Mumbai and sold the artificially-ripened mango stocks, originally purchased from Mangalore.

The Mangalore fruit variety resembles the popular ‘Ratnagiri hapus’ (alphonso), that comes from the Konkan region.

"This is a big racket run by anti-social and unscrupulous elements to the detriment of local traders in mangoes as these fake alphonsos are sold in large quantities at a cheaper price cheating the customers. Many vendors hawk their stocks going around residential societies," he claimed.

Meanwhile, FDA officials have appealed to people to bring to their notice sales of mango suspected of artificial ripening.



Ramesh Sopan

7 years ago

I pity the consumers; they still think ratnagiri/devgadh alphonso are not CC treated!
The retailers use them profusely as long as consumer pays more for off-season.
How about papaya, orange, sweet lime, bananas all are treated CC.
By the way, Grapes can not be Treated CC but they are chemical treated for color and artificial hormones for elongation.

Down to sideways action

We expect the market to trade lower on Monday, but as of yet, there is no sign of significant reversal

The market was trading flat throughout last week. Although it came out of the narrow range of 17,000-17,200 on Tuesday by riding 209 points from the previous day’s close, absence of fresh triggers left the market subdued for the week.

The firm gain on Tuesday and Wednesday can be attributed to the encouraging advance tax figures for the 4th quarter of FY 2009-10. Several companies have paid a higher tax this quarter, according to preliminary data, indicating better fourth quarter results.

Reliance Industries has paid Rs770 crore as advance tax for the March quarter compared with Rs365 crore a year ago. Infosys's tax outgo has doubled to Rs250 crore from Rs125 crore. Tata Consultancy Services paid Rs178 crore, compared from Rs53 crore earlier.

Last week net inflows from Foreign Institutional Investors (FIIs) were as much as Rs2,622 crore, and the net outflows by domestic financial institutions were Rs525 crore. We expect the market to trade lower on Monday but as of yet, there is no sign of significant reversal.

The global ratings agency Standard &Poor’s has revised its outlook on India form ‘negative’ to ‘stable’ on Thursday on the possibility of a reduction of fiscal deficit. S&P also expects India’s GDP to grow 8% in the year ending 31 March 2011, higher than its forecast earlier. Inflation continued to rage.

While there has been some relief in food prices and the food price index has come down, the fuel price index was on the rise. Data released on Thursday showed the food price index rose 16.30% in the year to 6 March 2010, lower than an annual rise of 17.81% in the previous week. The fuel price index rose 12.68% in the year to 6 March 2010, up from an annual rise of 11.38% in the previous week.

On Thursday, the Reserve Bank of India’s (RBI) deputy governor, Dr KC Chakraborty, suggested that the central bank may take action against to tackle inflation even before its April credit policy meeting. This is contrary to its earlier decision of not taking any inter-policy steps. Indeed, on Friday evening, the RBI has increased repo rates to 5% from the existing 4.75%. It also raised the reverse repo rate to 3.5% from 3.25%.

On the international front, concern over Greek’s debt situation persists as the country plans to take help from International Monetary Fund (IMF), stating that the interest rate offered by the European Union is too high. The US jobless claim data was in line with estimates, which is a good sign.

The Economic Cycle Research Institute (ECRI) said that its weekly leading indicator of US economic growth rose for the seventh straight week. ECRI managing director Lakshman Achuthan said while US economic growth will soon begin to throttle back, fears of a double-dip recession remain unfounded.

In a surprising piece of negative data, China's official purchasing managers' index for non-manufacturing sectors plunged to a one-year low at 46.4 in February from 55.1 in January, according to the China Federation of Logistics and Purchasing (CFLP). It is the first time since February 2009 that the index has gone below 50, which shows contraction. This is in contrast to HSBC's China services sector PMI, which was 56.7 for February. China's non-manufacturing survey includes construction, postal, software, aviation, railway, retailing and catering sectors. The official manufacturing PMI, compiled by CFLP for the National Bureau of Statistics, was 52 in February, down from 55.8 in January.



Regulator acts like an industry association; IRDA promotes ULIPs!

The insurance regulator has launched an unprecedented advertising campaign, hard-selling ULIPs. Not only is this a bizarre action for a regulator, but the ad is also misleading as it fails to provide any concrete evidence of ULIPs’ superior performance

Can you imagine the Reserve Bank of India (RBI) hard-selling recurring deposit schemes of banks or the Securities and Exchange Board of India (SEBI) bombarding investors with ads asking them to buy infrastructure funds? That is exactly what the Insurance Regulatory and Development Authority (IRDA) is doing.

IRDA recently launched an advertising campaign promoting unit-linked insurance plans (ULIPs) for pensions. The ads seek to educate investors of the benefits of ULIPs in providing for regular income or pension during retired life. However, in its attempt to hard-sell ULIPs, IRDA has brought out an ambiguous and misleading ad.

A ULIP is a life insurance policy, which provides a combination of risk cover and investment. It is the most common ‘insurance’ plan sold by life insurers and is quite popular among investors, thanks to massive promotions and incentives. The ad basically tries to impress upon the reader that a ULIP is a sound investment option if one is looking out for regular income during retired life. However, there are several issues with the claims made in the ad.

First, it has failed to substantiate this argument with any comparative indicators as to the returns that the product is likely to generate over a period of time. The ad provides no factual basis for making claims that ULIPs are the right product to ensure that you are well-provided for in your retirement. There is no comparative data of the returns of other long-term investment products, to underline ULIPs’ superiority.

The fact is that IRDA or anybody cannot provide this comparative information. This is simply because ULIPs have no track record. Who can say how ULIPs would do over, say, 30 years? Even products with established records do not perform as per their promise. What if ULIPs turn out to be the worst option between bank recurring deposit schemes, balanced funds, New Pension Scheme and even diversified equity funds? There is no guarantee that a ULIP will provide the holder with a safe kitty once he reaches retirement. If so, is the regulator pushing the investors into a wrong product?

Second, what is the rationale behind the insurance regulator recommending an investment product? The main purpose of insurance is to provide protection to the policy-holder and is not meant for generating investment returns.

Third, the ad also appears vague in advising the reader on the tenure of investment. It says, “If the term is too short, the policy accumulation would be insufficient for a pension corpus. If you stretch the term too long, you may end up being required to pay premium when you would actually like to receive pension payouts.” The obvious question that arises here is what term or period is ideal for a ULIP? The ad leaves this bit of information hanging in thin air.

Fourth, as we mentioned in the beginning, it is bizarre that IRDA as a regulatory authority should be expounding the benefits of a single product type. The fact that it is touting the benefits of ULIPs while ignoring other products is surprising. If instead it were to launch a public awareness campaign highlighting the benefits of insurance, it would make more sense.

Interestingly, IRDA’s advertising blitz comes at a time when it is waging a war with SEBI over the regulatory purview of ULIPs. Moneylife tried contacting some industry experts on their views on this matter, but no one appeared to be willing to speak on this strange ad. 



sanjay singh

6 years ago

ULIP is probably the best thing to have happened to the insurance industry in a long time. Majority of the people who comment against ULIPs are those who have little or warped knowledge of this product. I am not saying that there is no misselling of ULIPs at all. But don't blame the product for the misdeeds of the few. Sell / Buy ULIP as a long term insurance plan with a high insurance cover. And you will never lose


7 years ago

It's a shame that instead of regulating the ULIPs, especially expenses and the mis-selling parts, IRDA is promoting ULIPs. In my opinion, the minimum period of investment of ULIPs should be raised to a minimum of ten years to prevent so much mis-selling by the agents who just states that the insured needs to remit money for just three years. They are even advising investors withdraw the money after three years and re- invest to generate exorbitant commissions. At least the collection of some charges by the companies by the cancellation of the units should not be allowed in any case. If the IRDA allows such daylight robbery, may I ask why they are still called a regulator.


7 years ago

What is the issue:-
Govt marketing
or wrong marketing
If issue is Govt marketing point taken but then govt does market many products, ULIP is just another... maybe there was a better way to do it
Wrong marketing- if pvt company does its all ok, ig govt does any advt... we rape is thread bare! Actually we r double standarded


7 years ago

There are many instances now that Highest NAV Gauranteed products are sold by distributing pamphalets that guarantee high figures sometimes even bearing Company logos.
IRDA does nothing.
And why buy a product that has such a high cost?
SIMPLE-Your AGENT & his company wants to become rich by taking money from your pocket.

Anadi Shankar Biswas

7 years ago

A timely & good article. These days ULIPs are being blatantly mis-sold & the LIC of India has also joined the band-wagon since 2007 (Money Plus days). The IRDA should take steps to stop mis-selling. Like in Mutual Funds some statutory warning should be boldly printed in the ads & application forms like "Investment in ULIPs are subject to market risks & the buyer should satisfy himself of the monetary returns before buying the L I policy"


7 years ago

ULIP is probably the best thing to have happened to the insurance industry in a long time. Majority of the people who comment against ULIPs are those who have little or warped knowledge of this product. I am not saying that there is no misselling of ULIPs at all. But don't blame the product for the misdeeds of the few. Sell / Buy ULIP as a long term insurance plan with a high insurance cover. And you will never lose


7 years ago

Each ULIP scheme should clearly mention how much expenditure is incurred on the investment and the track record clearly.
IRDA is like what was SEBI intially.

Hemant Beniwal

7 years ago

Insurance in India is an institutional Fraud.

dillip swain

7 years ago

First chairman of irda who was chaired without life cover. In orissa there is a saying 'BANJHA KI JANE PRASABA BEDANA'.So X-chairman forming rules without buying life insurance.Now New chairman campaining ads in favour of ulip,why not TERM INSURANCE.It is millibhagat work between L.I. companies & irda.govt should form a separate to watch role of irda .

R Balakrishnan

7 years ago

It is a wake up call for a dodo organisation called AMFI. This has provided the right opportunity to respond with aggressive advertising, stripping the ULIP bare.
Alas, AMFI will NEVER wake up. The old team did NOTHING and the new avatar it is taking is becoming a division of SEBI.
SEBI, of course, promoters insurance, by hitting at mutual fund industry.

Mehul Mehta

7 years ago

Unsure of what it's supposed to do to be in the limelight or to make its presence felt, IRDA seems to have been misguided by marketing geniuses. Shall we say IRDA now means I'd Rather Do Ads...


7 years ago

IRDA has lot of DEAD WOOD of aged persons -may be retired from LIC/GIC who have not been trained to learn difference between Protection ( Insurance ) and Investment.

IRDA and its officials ARE NOT AT FAULT. GOD only can save indian policy holders and investers.

I fail to understand how IRDA will protect policyholder's interest???


7 years ago

Thanks for being bold!

priya Kapoor

7 years ago

Yeah..I also came across this advertisement by IRDA and was wondering how can a regulator promote a particular product without any comparitive analysis with other products. Though ULIP is beneficial in the long term, it doesn't imply that it would work the same for every individuals as socio-economic condition, risk appetite and responsibilities of each is different. Also, he may achieve the same goal by investing in other products..Such a hard selling ad by the regulator is certainly worrisome...I endorse that a general ad about significance of insurance would have hold it in high esteem rather than trying to hard sell a particular product.

R Murugan

7 years ago

I had some time back sent photocopy of a pamphlet circulated by an agent of SBI Life promising very high returns on some SBI life schemes to IRDA and SBI Life.
IRDA replied that the mail had been forwarded to SBI Life. SBI life said the agent had been informed not to mislead the public. IRDA did the job of a post office and naturally SBI Life did not bother to take any punitive action against the agent.This is the sorry state affairs.

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