Apr 16, 2012

Angry F&B industry protests FSS Regulations 2011, meets Ghulam Nabi Azad

Groups of food merchants and food business operators (FBOs) that have been protesting against certain provisions of the Food Safety and Standards Regulations (FSSR), 2011, which they claim to be “glaring loopholes,” are currently in talks with Ghulam Nabi Azad, health minister; Pranab Mukherjee, finance minister, and Sushma Swaraj, Bharatiya Janata Party leader and member of Parliament, Lok Sabha; seeking a solution to the burning issue.

Not only the top echelons, the agitation seems to have shaken up the entire food & beverage sector and allied segments in the country. That is because, protests against the FSSR, earlier, noticed in small pockets, are rapidly gaining momentum nationwide, especially in states such as Madhya Pradesh, Maharashtra and Tamil Nadu. Rajasthan and Gujarat in the western region and Kerala and Andhra Pradesh in the south are also slowly witnessing a movement.

Madhya Pradesh
Indore became a hotbed of activity against the Act in the central state a few weeks ago, when a group of traders' associations based in the city decided to stage an indefinite dharna. It was spearheaded by the Madhya Pradesh Food Products and Producers' Association.

Such groups as the MP Dal Mill Association (Indore); the Association of Pulses Industries; the Mithai Association; the Namkeen Association; the MP Spice Manufacturers and Traders' Association and the Wholesale Retail Traders' Association participated in the dharna.

The traders opposed the Act on the following grounds: the need to obtain a fitness certificate from a doctor before carrying on their businesses, and the clause that a science graduate had to be appointed as technical advisor to monitor the quality of food being manufactured.

Babulal Rathi, president, Ratlam Vyapari Mahasangh, said, “We spoke to Shivraj Singh Chouhan, chief minister, Madhya Pradesh, who said we have to wait for the Centre to revert. We are not totally satisified, because a large number of livelihoods are at stake.”

Tejkulpal Singh Pali, partner, Hotel Ranjeet, Bhopal, and the president of the Hotel and Restaurant Association in the Madhya Pradesh capital, said they also had a dialogue with the state government on the drafting of the Act.

“They admitted that inadequate infrastructure is a major hindrance and assured us that they will look into the matter,” he said, adding, “We (hoteliers across the state) have called off the bandh.”

Maharashtra
Tejinder Singh Renu, honorary secretary, Vidarbha Taxpayers' Association (VTA) and Nagpur Residential Hotels Association (NRHA), has filed a public interest litigation (PIL) before the Nagpur bench of the Bombay High Court. The ministry of health and family welfare; the Food Safety and Standards Authority of India (FSSAI); the ministry of law and justice, and the Food and Drug Administration, Maharashtra, have been named respondents.

The PIL “seeks to challenge the legality of food safety and standards (licensing and registration of food businesses) regulations, 2011, and challenge the constitutional validity of the Food Safety and Standards Act (FSSA), 2006.” It is a public interest litigation under Rule 3(e) of the Bombay High Court Public Interest Rules, 2010, and a writ petition under Article 226 of the Constitution of India.

Although the Nagpur Bench of the Bombay High Court had urged VTA and NRHA to withdraw its PIL against the country's apex food regulator, Renu planned to go ahead with it. “Of course, we want our case to become stronger, and for that, I am gathering more data and trying to bring more traders' groups on board, so that we can have solid grounds to prove our allegations,” he said.

Tamil Nadu
N Jegatheesan, president, Tamil Nadu Chamber of Commerce and Industry, was not in the country, but the Chennai-based organisation sent its objections to the Act via e-mail. Attempts to contact S Rethinavelu, its senior president, also proved futile.

The Food Safety and Standards Rules, 2011, has stipulated that all those engaged in food-related trade and industry with annual turnover of above Rs 12 lakh (including grocery dealers and hotels and restaurants) should obtain state or Central government licences.

“Those who don't comply with this requirement are liable to be sentenced to a prison term of upto six months and a fine upto Rs 5 lakh. We are as shocked by this harsh punishment as is every food business operator across the country,” they wrote.

The e-mail did raise another pertinent question: “In which other Act in this country are such ridiculous punishments meted out if one is found carrying out business without obtaining the requisite license?”

A delegation from the Chamber recently visited New Delhi and met the health minister. They spoke about the need to nip the Licence Raj in the bud at the earliest; but as far as the existing registration procedure is concerned, they advocate its continuance.

Many complaints against food safety officers have been brought to the Chamber's notice, and taking cognisance of the same, the Chamber appealed to the Centre and the FSSAI to take appropriate remedial action.

“During the post-Budget discussions, the finance minister assured the delegation that no food safety officer would harass any food business operator on the pretext of 'doing their duty',” read a statement in the e-mail.

Errant food safety officers have been warned to refrain from such “high-handed practices.” Designated food safety officers have been appointed at the district level to inculcate the purpose of the Act among their subordinates.

The FSSAI has declared August 4, 2012, as the last date for obtaining licences for the year 2012-2013, and the Chamber hopes their demand will be considered by then and that the outcome will be positive.

“We would appreciate if the ministers and the FSSAI chairman defer the initiation of actions against trade and industry under the new Act for three years, which is sufficient time to create complete awareness among FBO and food safety officers,” the e-mail said.

S V S S Velshankar, honorary secretary, Tamil Nadu Food Grains Merchants' Association, said they have been unable to get an audience with the chief minister of the state, but once they do, they will put forth the reasons for their opposition to the Act.

“Different trade associations across Tamil Nadu have joined forces, and this united body will take up the case of those who don't have a voice with the government. We have spoken to the FSSAI authorities, but aren't convinced with their response,” he said.

“The problem is not as simple as 'register/get a licence or don't continue running your business'; but we do not have enough time in hand to train the small FBO,” Velshankar said, adding that they were confident the state government would be fair.

R Kaleeswaran, honorary secretary, Karaikudi Bakery Owners' Association (KBOA), sent a set of suggested modifications to the Act, and hoped the FSSAI would revert. He also expressed his desire to apprise the chief minister of the situation.

The FSSAI, on its part, had only this to say, “The new Act, which replaced the Prevention of Food Adulteration Act, 1954, becomes effective from the first stage of processing. Its intention, therefore, is to improve the hygiene of food materials.”

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