Confectionery makers in a spot over new food law

Major confectionery makers such as ITC, Godrej Beverages & Foods (Nutrine) and Perfetti van Melle expect some amendments to the proposed Integrated Food Law, failing which they will have to increase their product package size which, in turn, will result in higher prices. The Law is scheduled to come into effect from August 20, 2007.

According to MN Rao, secretary, Indian Confectionery Manufacturer's Association (ICMA), it is practically impossible to implement some of the guidelines. "The requirement of mentioning a total of 12 declaration on packs larger than 10 cm sq including a complete list of ingredients, nutritional information, best before declaration and allergens among others is just not possible on the mono packs," he said. These are the single packs which retail at the 50 paise price point, which is the biggest volume driver in the segment.

In case the amendments are not made, manufacturers feel that changing the pack size would be the only option available. "Either the packs will have to be made smaller than the existing size or large enough to be able to incorporate these details," said one of the company heads, adding that consumption too was likely to take a hit. Grey market sales, however would see a sharp rise, he mentioned.

The rationale governing the new food law is to put the regulation in India at par with the US FDA or the Codex which is in effect in Europe. According to these laws, such disclosures need to be made on pack bigger than 12 inches square, and while we can make these disclosures on the larger packs or the bottles which go to the retailer, it isn't possible to do so on individual packs, said IMCA . Rao said that companies would require at least three months to be able to comply with the new guidelines and there was still no clarity no various aspects of the new law.

The ICMA is seeking a meeting with the new joint-secretary of the Ministry of Health and Family Affairs to discuss the problems with the implementation of certain guidelines. Another area of concern is the mandatory disclosure of proprietary recipes to the State Food Authority where it is manufactured. Also, food brands which contain less than a certain quantity of fruit pulp will not be allowed to use the word fruit or the

name of the fruit in their brand name.

"This would affect not only confectionery, but also biscuit makers as a large number of products use the name of the fruit flavour in their brands," said Rao.

Within confectionery, a number of brands like Centerfruit, Mango Bite and Natkhat Mango would be affected. "Most companies have invested crores in creating these brands, and the new proposed law would be a setback if it were to be implemented," said Rao.