Why India’s metal packaging future lies in food security

The global metal packaging industry is navigating a confluence of internal technological mandates and external geopolitical shocks, forcing a rapid re-evaluation of its strategic path. While the sector manages the shift towards Chromium-Free Passivation Alternatives (CFPA), escalating conflicts in the Middle East have delivered immediate and costly economic consequences across the supply chain.

The volatility around the Strait of Hormuz, a critical maritime chokepoint, is creating a difficult operating phase for businesses, according to Sanjay Bhatia, president of MCMA. Major carriers are re-routing vessels to avoid high-risk zones, leading to delays of two to three weeks. The prolonged routes and war risk surcharges have pushed freight rates up by 10% or more, while marine insurers have increased war risk premiums by over 50%, with many withdrawing war-related claims coverage entirely. Furthermore, instability is driving up fuel prices and causing production slowdowns in energy-intensive sectors like aluminium and steel due to high energy costs and raw material scarcity.

For organisations to survive this period, the imperative is clear: they must prioritise agility, move away from 'just-in-time' inventory models to maintaining higher safety stock, and diversify sourcing.

However, amidst these global challenges, Sanjay Bhatia, believes the crisis presents a strategic opportunity for the Indian sector to pivot. "However, amidst these global challenges, the Indian metal packaging sector has an opportunity to pivot and focus on a national strategy that drives internal resilience and growth, turning crisis into an opportunity," he added.

This national strategy involves addressing a fundamental domestic issue: India's food security and storage problems. Sreenatha S, Easy Openends India, suggests the industry look beyond the destruction wrought by global geopolitical decisions and instead focus on technology and opportunities wars can generate. With its vast, government-managed food godowns, India currently struggles with significant loss, waste, pilferage, and theft in its storage of raw food grains.

The metal packaging industry is now championing a transformative solution: lobbying the Indian government to store canned, semi-cooked, and ready-to-eat staple foods, such as pulses like arhar dal or chana dal, in place of relying entirely on raw grains.

Unlike rice and wheat, which demand fresh cooking, pre-cooked dal can be rapidly consumed, having been "assembled rather than cooked," and offers an extended shelf life of up to 36 months.

This shift offers immense benefits to the nation and the industry. Sreenatha S emphasised the stabilizing effect: "It ensures stability in the food storage sector and drastically reduces spoilage. It guarantees a confirmed market for farmers, avoiding price fluctuations and desperation in chasing the market." He also noted the consumer and industry gains, adding: "It saves fuel and time for consumers and provides a major boost to the metal packaging market, which is already a confirmed necessity in international food preservation models, generating employment."

Contrasting global and domestic focus, Sreenatha S concluded: "As long as the big boys think of stopping the war, their decisions risk destroying supply chains and stability. Conversely, our industry can focus on 'improvements'—leveraging metal packaging's unmatched preservation capabilities to secure India’s food future, stabilise its agricultural economy, and drive domestic market growth, demonstrating calm leadership and resolute focus."

Based on inputs from Sreenatha S, Easy Openends India and Sanjay Bhatia, MCMA and Hindustan Tin Works