Indian regulator is preparing new alcohol and labelling regulations

India’s food watchdog is planning an assault on various segments of the food and beverage industry in the coming weeks in a bid to soothe consumer confidence in the wake of the recent Maggi noodles episode.

The Food Safety and Standards Authority of India (FSSAI) is expected to set new standards for alcoholic drinks including beer spirits over the next few weeks, according to Press Trust of India, which quoted an unnamed source. India’s food industry is currently largely unregulated.

The source said: ”Work is going on to prepare standards for alcohol and alcoholic beverages, broadly under two different heads, one for drinks with less alcohol like beer and other for drinks having major alcohol content like whisky​.”

Meanwhile, there is speculation that Indian food processors may soon have to be more forward with details on their products’ shelf lives.

Economic Times​ has reported that the FSSAI is in the process of considering implementing mandatory expiry dates on packs. 

As part of a stricter regime on food safety in the wake of the June ban of Maggi noodles, after state regulators claimed to have found elevated levels of monosodium glutamate in the snacks causing a rush for wider testing, companies will no longer be allowed to publish just best before dates.

The same FSSAI source also called on the food industry and lobby groups to adopt a self-regulatory framework to govern it.

This comes after the regulator drew the wrath of the food processing minister, Harsimrat Kaur Badal, who accused a zealous FSSAI of acting like an "inspector raj”. 

She claimed the regulator had been causing fear within the industry for its inflexible approach to regulations and inspections, resulting in “stalling innovation and investment”.

Currently, new product approvals are on hold, though this is expected to change once new expiry laws are introduced.

A committee will assemble to clear the resulting backlog, ET’s source claimed, adding that most rejected approvals had been prompted by the absence of scientific data provided by manufacturers. 

"When a company is filing an application for product approval, one assumes that they are duly assisted by food experts and the product has gone through a scientific process of testing. However, many companies fail to give the shelf-life stability data sheet, which is mandatory​," he said. 

Industry says labelling provisions are missing from law​

Elsewhere, the All India Food Processors' Association (Aifpa) has questioned what it calls a lack of provisions for the approvals process, saying that approvals have not yet been legally defined. 

"Product approval as such is not defined under the ​Food Safety​ and Standards Act 2006, nor is there any provision or procedure prescribed under the Act, rules or regulations​," said Amit Dhanuka, president of Aifpa.

Instead, explained Dhanuka, India should instead to adopt procedures similar to those followed in the US and UK, where products made of already approved ingredients were exempt from approvals.

The industry group, which counts Mondelēz and Bikaner among its members, claimed it was not enough for the regulator just to “post an advisory on its website and without making any rules or regulations under the Act”.

Its comments were acknowledged by B Sesikeran, chairman of the FSSAI’s scientific panel on labelling, who said: "A complicated food approval process hampers the process of innovation of new products in the market​." 

Though he added that in the eyes of the regulator, manufacturers could still modify the quantity of internationally approved ingredients, even if doing so might render a product unsafe for consumption.

India might take a two-tier approach to trade duty reductions​

India is planning to take a two-tiered approach in slashing tariffs on traded goods under the proposed Regional Comprehensive Economic Partnership (RCEP).

Backers hope the move will offer greater tariff lines for India’s existing free trade agreement partners. 

During an inter-ministerial session on RCEP in Kuala Lumpur, India offered to cut duty on 75-80 tariff lines among existing FTAs with countries such as Singapore, Malaysia, Japan and Korea. 

Other countries, including China, Australia and New Zealand, could potentially see duty cuts on 40-50 tariff lines. 

While doing so, India’s commerce and industry minister, Nirmala Sitharaman, said India had a “continued commitment to work with other countries to conclude a mutually acceptable RCEP agreement​”.