CAIT organises national traders' meet; FSSA, FDI in retail discussed

Saturday, May 12, 2012 08:00 IST 
Akshay Kalbag, Mumbai


The two-day national convention of trade leaders, organised by the Confederation of All India Traders (CAIT), commenced on May 10, 2012 in New Delhi.


 According to Praveen Khandelwal, secretary general, CAIT, “A nationwide campaign was launched to address issues pertaining to the Food Safety and Standards Act (FSSA), 2006; foreign direct investment (FDI) in retail; single-point goods and service tax (GST) in India and delivery-based trading in forward exchanges.” An eleven-member national committee was formed to conduct the campaign.
Those who attended the conference also agreed to start a signature campaign to tackle the aforementioned issues. Once a sizeable number of signatures are collected from all over the country, the same will be submitted to the prime minister. Memorandums will also be submitted to members of local self-governments; Members of Parliament (MPs), Members of the Legislative Assembly (MLAs) and chief ministers (CMs) at the state level and the senior leaders of every political party.

“We demanded that retail trade in India should become a topic of priority for the Centre and the state governments. Over 5 crore trading establishments are conducting their business activities in the retail industry, and more than 22 crore people earn their livelihood from it,” Khandelwal told FnB News via e-mail, adding the trade leaders expressed their unhappiness about the neglect of the retail sector by the governments.

CAIT challenged the merits of the FSSA and its rules and were dismayed about the provisions stipulating that such entities as places of worship (such as temples and gurudwaras); transporters; warehouse-keepers; landlords and people delivering food and other items by distribution vehicles must also obtain licences. 

“We have sought necessary clarifications from the Food Safety and Standards Authority of India (FSSAI) in this regard, and drew the government's attention towards the turnover limit of Rs 12 lakh for the cottage and small industries, which contravenes the definition of cottage and small industries under the Small-scale Industries (SSI) Act,” stated Khandelwal, adding that a number of provisions of the Rules and Regulations supersede those of the Act, which is a legal infirmity. CAIT stressed on the need for a careful study and reconsideration of these. 

Industry attacks Indian regulators over food safety rules

By Ankush Chibber, 07-May-2012

India’s new food safety authority is coming under a broad-based attack from local traders who have termed the Food Safety and Standards Act of 2006 ‘draconian’ and ‘biased.’

India

The 2006 act had replaced the erstwhile Prevention of Food Adulteration Act of of 1954 and it went into force in August last year, after which the Food Safety Standards Authority of India (FSSAI) gained regulatory powers.

Now, the Confederation of All India Traders (CAIT) is leading the charge on the act and the authority, starting with organising a national conference of trade leaders in New Delhi on May 10 and 11.

Terming the act unreasonable and impractical, CAIT secretary general BC Bhartia said that the act has aped western norms and disregards the conditions under which domestic small and medium food enterprises work.

“The act wants local food companies to prepare an audit report, obtain clearance from state pollution control board, get a no-objection certificate from the municipal corporation, medical certificates of workers, and hire a graduate technologist,” Bhartia told FoodNavigator-Asia.

.....read more

Jail plus fine: FSO threatens Thiruvallur shopkeeper in illegal notice

Monday, May 07, 2012 08:00 IST 
Akshay Kalbag, Mumbai

Despite obtaining injunctions against the Food Safety and Standards Act (FSSA), 2006, food business operators (FBOs) across Tamil Nadu continue to be harassed by food safety officers (FSOs). 

Determined to make a quick buck at the hapless traders' expense, the inspectors have turned a deaf ear to the fact that August 5, 2012, is the last date for obtaining the registrations and licences.

The latest incident involves the FSO of Thiruvallur District, Ellapuram Block. Although P Subash Chandra Bose, vice-president, Tamil Nadu Foodgrains Merchants' Association (TNFMA), informed FnB News of the same, he did not name the officer in question or his victim.

“The FSO visited several shops in the area under his jurisdiction and demanded that their owners obtain licences immediately, although they have about three months in hand to do so,” he said.

“They were obviously upset and refused to pay any heed to his demand, which angered him. He issued an illegal statutory notice to the owner of a shop on Tamaraipakkam Junction Road, Ammanapakkam, Thiruvallur District,” said Bose.

“The FSO threatened to book the trader under six Sections of the Act: Sections 55; 56; 59; 61; 62 and 63. Each of these pertain to penalties. In fact, he told him that he would have him imprisoned for twice the time and levy five times the fine stipulated in Section 62,” Bose said.

“Let me remind you that Section 55 carries a penalty of Rs 2 lakh for failing to comply with the FSO's directions; under Section 62, an FBO is liable to be imprisoned for six months and pay a penalty of Rs 5 lakh for obstructing or impersonating an FSO,” Bose said.

He added, “Under Section 56, if food is manufactured or processed in unhygienic or unsanitary conditions, it attracts a penalty of Rs 1 lakh; if he prepares unsafe food, he would be liable to pay Rs 10 lakh under Section 59.”

“Under Section 61, furnishing false information carries a term of three months in prison and a penalty of Rs 2 lakh; and under Section 63, a person found carrying out a business with a licence is liable to spend six months in prison and pay a fine of Rs 5 lakh,” Bose said.

“Wouldn't it be impossible to revert to the FSO – who called this his final notice – within the stipulated 15-day deadline,” asked Bose. Incidentally, the time he granted the trader elapsed a couple of days ago.

SOURCE