Draft labelling regulations for packaged food and beverages divide industry

Firms say organised players will bear the brunt; face activists' flak for delay in implementation

The draft labelling regulations for packaged food and beverages (F&B), released by the Food Safety and Standards Authority of India (FSSAI) last month, have come in for sharp criticism from companies, which could delay implementation. 

Food majors and activists Business Standard spoke to stand at opposite sides of the spectrum on the matter, which prescribes a red-colour code for food products rich in sugar, salt, and fat. Yellow and green labels will be used in case of lower levels of some or all of these ingredients and a cross symbol will be used for products unfit for human consumption. 

“Salt, sugar, and fat are taste factors. The manufacturer does not add these ingredients of his own choice,” says Subodh Jindal, president, All India Food Processors’ Association, an apex body of food companies in the country. “What works and doesn’t work in terms of these ingredients depends on age, lifestyle, physical disposition, medical prognosis, region, climate etc. How can the regulator prefix a level for these ingredients?” he asks. 

Siraj Chaudhry, the former chairman of Cargill India, says colour codes are good to have, but should not be overused. "The concept of colour codes is good, but given the stage of India's processing food industry and the need to promote it, this step may be somewhat overzealous as far as implementation goes. Too many foods with red dots on their pack could create fear in the minds of consumers. The worry is that organised food players will have to bear the brunt of this, since they will follow rules and regulations, while unorganised players may not come in the net,” he says.Chandra Bhushan, deputy director general of the Centre for Science and Environment, says food companies are unnecessarily delaying implementation. “Indian food makers have used the red and green dot labelling for vegetarian and non-vegetarian food for years now. So my question to them is: why create a problem now? The draft labelling norms put out by the food regulator are simply asking for more specifications from manufacturers. Norms like these will make it clear to consumers not only what to eat or drink but also to what extent a product can be consumed. This is a question of transparency,” he says.

In addition, the draft norms say information on calories (energy), saturated fats, trans-fats, added sugar, and sodium per serve should be mentioned on the front of the pack (FoP) and that the labels should declare per-serve percentage contribution to the recommended dietary allowance.

In an emailed statement, FSSAI said several issues would be considered when finalising the regulation. “Key points raised by the industry associations, particularly with FoP labelling, would be looked at during the finalisation,” the regulator said. 

Companies such as Nestlé, Coca-Cola, and PepsiCo have been working towards reducing the content of sugar, salt, and fat in their products for years now. Nestlé has pledged to cut down added sugar by 6 per cent, salt by 10 per cent, and fat by 2.5 per cent by 2020, from the 2017 levels. Hindustan Unilever is reducing the use of sodium salts in 75 per cent of its offerings to the level of 5 grams per day.

A Nestlé India spokesperson says: “We voluntarily provide information through our food labels, which gives guidance on daily energy intake and key defined nutrients on FoP to enable consumers to evaluate a product’s composition in their daily diet.”

Some global companies have said the draft norms should also ensure that lower levels of unhealthy ingredients are prominently declared on the pack. 

What draft regulations say
 

•  Prescribe a red-colour code for food products rich in sugar, salt, and fat
• Yellow and green labels will be used in case of lower levels of some or all of these ingredients
• A cross symbol will be used for products unfit for human consumption
• Information on calories (energy), saturated fats, trans-fats, added sugar, and sodium per serve will be mentioned on the pack
• The labels will declare per-serve percentage contribution to the recommended dietary allowance