Nov 2, 2013

Dispute over labelling norms: Imported chocolates rotting in warehouses across India this Diwali

Over 200 tonnes of imported gourmet chocolates from around the world, including brands such as Godiva, Guylian, Lindt and Mars, are rotting in dusty warehouses across Indian ports and airports. 
Over 200 tonnes of imported gourmet chocolates from around the world, including brands such as Godiva, Guylian, Lindt and Mars, are rotting in dusty warehouses across Indian ports and airports.MUMBAI/NEW DELHI: Over 200 tonnes of imported gourmet chocolates from around the world, including brands such as Godiva, Guylian, Lindt and Mars, are rotting in dusty warehouses across Indian ports and airports.
The reason? A seemingly arcane dispute between an arm of India's health ministry and food importers on whether it is sufficient to affix a sticker on imported food consignments to comply with Indiaspecific labelling products — such as brown and green dots to separate vegetarian and non-vegetarian items as well as nutritional information, source and product origin.
The Food Safety and Standards Authority (FSSAI) — the regulatory agency under the health ministry that supervises import of food items to ensure quality — has blocked several consignments of packaged food, citing tougher labelling requirements arising from a new law, the Food Safety and Standards Act of 2006 that came into force in 2011. The nub of the problem is FSSAI's insistence that pasting of stickers is not allowed. Instead, it wants details printed on the product pack before they are shipped to India.
Till now, "stickering" was the prevalent trade practice, resulting in the stand-off. Chocolates are not the only items failing to make it past Indian Customs. Shipments of artisinal cheese from France, crisps from the US, spicy Thai condiments and Italian pasta sauces have also been held up. While FSSAI argues its zerotolerance policy is based on law of the land, manufacturers and importers call these actions arbitrary and illegal.
Officials Refute Charges
They are challenging the authority's interpretation of the law. The EU mission in Delhi as well as the embassies of Belgium and Switzerland have been approached by some of the affected companies.
"It's not about one or two categories, FSSAI's interpretation of the regulations is hampering all kinds of food imports. These are perishable goods and many are even getting reexported. This has crippled trade. Close to 30 food importers are shutting shop. More will follow or switch to other items," said Amit Lohani, convenor, Forum of Indian Food Importers, an industry body. Lohani's colleagues add that till date government officials have blocked over 1,100 containers.
Most are lying abandoned or are likely to be shipped back to their country of origin. The new norms have also ensured that packaged food and beverage imports into India have come down by half in recent months, unable to comply with FSSAI's diktat.
Says a leading importer of chocolates from South Asia and Europe, who requested anonymity given the sensitivity of the matter, "The move (by FSSAI) is economically unviable. There was no grace period given to importers to implement the new labelling norms. This has just happened a few weeks before Diwali and is a matter of huge concern for industry."

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