FSSAI labeling issue hits packaged food imports hard

Sounak Mitra & Viveat Susan Pinto  |  New Delhi/ Mumbai  

November 5, 2013

Categories across the board from chocolate to cheese, olive oil to biscuits have been impacted as a result of stand off between importers, food safety regulator

It is not just your favourite imported chocolate that went missing from shop shelves this festive season. Crispies such as Pringles, gourmet cheese, olive oil, biscuits, noodles, pasta, jams, honey, oats, sauces... you name it... were hardly to be found this Diwali as the Food Safety and Standards Authority of India (FSSAI), the country's apex regulator, came down heavily on importers overlabeling issues.

Government sources indicate that packaged foods worth over Rs 750-1,000 crore were stuck at various ports and airports across the country as the food safety regulator insisted that importers desist from using stickers on food products to indicate crucial details such as the product type, price and nutritional value. 

What's worse? The stand-off, on for the last three months, shows no signs of abating, as FSSAI refuses to budge from its position. “FSSAI’s move is in line with the law, and all companies – be it Indian or foreign – should comply with it. Stickers are temporary measures. When our norms are clearly laid out, companies must print them on the packs that are to be shipped to India,” an FSSAI official when contacted said. He declined to be quoted given the sensitivity of the matter.

But importers, irked by the lacklustre Diwali sales, say that if the issue is not sorted out soon enough could impact business during Christmas and New Year too. Almost 50-55% of packaged food imports in India happen during the festive season, since it is utilised mainly for gifting purposes besides consumption.  

Amit Lohani, convenor, Forum of Indian Food Importers, a body of food importers in the country, says FIFI has already made numerous representations to FSSAI in a bid to resolve the issue. "On October 31, FSSAI came out with a notification agreeing to one of our demands, which is to allow the food safety logo on a sticker. This is with immediate effect," Lohani, who imports confectionary, snacks and coffee among other products, said. 

Lohani points to other issues worrying importers. "Such as 100% sampling of containers coming into the country," he says. "Earlier sampling was to the extent of 5-10% not more. This was to give an idea of what the consignment was made up of. With 100% sampling of each and every container now, this is obviously leading to a huge delay. Containers are hardly getting cleared," says Lohani.

Slower product approvals are another issue bogging importers for a while now. Lohani says there are almost 11,000 applications pending approval from the FSSAI, with the body clearing just about 8-10 applications a day. "At this rate, the regulator will take about two to three years to clear the backlog," he says.

However, there are voices that speak in favour of the food safety regulator's recent moves. Says Saloni Nangia, president, Technopak Advisors; "The FSSAI's move to enforce labeling standards is a step in the right direction. India for long has been a dumping ground for products that are well past their sell-by-date. At least now there will be some accountability. Product quality is compromised with the use of stickers. FSSAI is attempting to stop that."

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